KIP Sustainability 2015 FINAL Oct 2015

Sustainability Report 2015For the period 2012 – 2014

Walk the talkOur responsibility & performance

Optimise Use of Resources

Sustainable Building Design

About Us

Carbon Management

About Us Stakeholder Engagement

Sustainable Product Stewardship

2015 / 2016 Targets

Carbon Management

2012 / 2013 / 2014 Update

Optimised Use of Resources GRI Content Index


Walk the talk / Our responsibility and performance

Contents

Introduction 6Executive Summary 10Kingspan Group Overview 14

About Us 16Our Approach To Sustainability 16

Management Systems and Governance 19

Management of Key Environmental Issues 20

Recent Awards 21

Sustainable Product Stewardship 24Life Cycle Analysis 26

Environmental Protection 30

Product Innovation 32

Service Innovation 36

Climate Resilience 37

Carbon Management 38Introduction 40

Climate Change Risks 42

Climate Change Opportunities 43

Africa 44

Australia 45

Belgium 46

France 47

Ireland 48

The Netherlands 49

New Zealand 50

South East Asia 51

United Kingdom 52

United Arab Emirates 53

Summary 54

Opus Business Park Case Study 55

Optimised Use of Resources 56Pollution, Water & Waste 58

Sustainable Building Design 60Introduction 62

Route to Net-Zero Energy Buildings 64

Environmental Assessment Methods 66

AECOM United Kingdom 74

Cundall Australia and New Zealand 76

THERMALsafe Door Research 78

Thermal Bridging Research 79

Kingspan Store of the Future 80

Stakeholder Engagement 82Stakeholder’s Overview 84

Stakeholder’s Update and Development 85

Customer Support 86

Employee Engagement 90

Ethical Procurement and Supply Chain 92

Community Investment and Engagement 94

2015 / 2016 Targets 102

2012 / 2013 / 2014 Update 103

GRI Content Index 104

2 Walk the talk / Our responsibility and performance

Our responsibility and performance \ Walk the talk 3

The aim of this report is to tell you about our division’s economic, social and environmental progress since our 2011 report as well as providing detailed performance data for the period January 2012 to December 2014.


GRI

The material topics included in this report are the basis of how this report is organised. They are sustainable product

stewardship, carbon management, optimised use of resources, sustainable building design and stakeholder engagement.

These topics are prioritised in a market-orientated fashion via feedback from our sales, commercial and public affairs teams

and independent research carried out by third party consultants. This approach is governed by our management team which is

actively seeking feedback from various markets and making sure our resources and capabilities are aligned to meet and exceed

sustainability requirements. The report does not feature any restatements from previous reports and we will continue to build on

its success by reporting on further aspects of sustainability and incrementally expanding the application of the GRI Reporting

Framework over time. It is expected that this report will be widely used by those within the construction industry including

architects, designers, building owners, developers, end users and customers (contractors). We also expect our employees,

suppliers and various government bodies to make use of it. We will continue reporting in accordance with the GRI framework

once every two years. The reason for the delay with this report is primarily due to acquisitions made during the reporting period.


The Global Reporting Initiative (GRI) has pioneered the development of the world’s most widely used sustainability reporting framework from its conception in 1997. This framework sets out the principles and indicators that organisations can use to measure and report their economic, environmental and social performance. There are three levels of reporting within the GRI Sustainability Reporting Framework; they are titled C, B, and A (A being the highest). The criteria found in each level reflect an increasing application or coverage of the GRI Reporting Framework. For this report a level B+ was achieved and this has been checked by GRI to ensure it complies with the GRI Reporting Framework.


Report Application Level

OU

TP

UT

Profile Disclosures

OU

TP

UT

Disclosures on Management Approach

OU

TP

UT

Performance Indicators & Sector Supplement

Performance Indicators

C C+ B A A+

* Sector supplement in final version** Performance Indicators may be selected from any finalized Sector Supplement, but 7 of the 10 must be from the original GRI Guidelines*** Performance Indicators may be selected from any finalized Sector Supplement, but 14 of the 20 must be from the original GRI Guidelines

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Report on:1.1 2.1–2.10 3.1–3.8, 3.10–3.12 4.1–4.4, 4.14–4.15

Report on all criteria listed for Level C plus:1.2 9.9, 3.13 4.5–4.13, 4.16–4.17

Same as requirement for Level B

Not Required Management Approach Disclosures for each Indicator Category

Management Approach Disclosures for each Indicator Category

Report on a minimum of 10 Performance Indicators, including at least one from each of: Economic, Social and Environmental**

Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human rights, Labour, Society, Product Responsibility***

Report on core G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the indicator or b) explaining the reason for its omission

Man

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Self Declared

Third Party Checked

GRI Checked

C C+ B A A+

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An Introduction from Kingspan Insulated Panels Divisional Managing Director

This is the sixth sustainability report from Kingspan Insulated Panels and discloses our economic, social and environmental performance in relation to our activities in Africa, Australia, Belgium, France, Ireland, The Netherlands, New Zealand, South East Asia, the United Kingdom and the United Arab Emirates. The 2015 report achieves a GRI Level B+, checked by the Global Reporting Initiative for compliance with its reporting framework.


Providing sustainable products and solutions while operating within a sustainable business continues to be at the heart of our core objectives. Regulatory change continues to drive the development of low energy, low carbon buildings in most markets, while increasing gas and electricity costs continue to improve the business case for energy efficient buildings. Sustainability awareness among property owners and end clients is leading to a surge in the amount of buildings that are now certified to environmental assessment methods such as BREEAM, LEED, Estidama and Green Star, with carbon emissions reduction now becoming financially attractive as many countries begin to implement ‘carbon taxes’.

Sustainable building design is paramount within the construction industry. By integrating our products and solutions, clients can benefit from low energy, low carbon buildings during their entire life cycle. However, an area that presents significant opportunity is the refurbishment of the existing building stock. Across Europe for example, buildings account for approximately 40% of the total primary energy consumption. However, 90% of existing buildings will be still standing in 2050. A huge commitment to refurbish inefficient buildings must be embarked upon to achieve targets, but also to embrace a more sustainable future. Regardless of whether new build or refurbishment, our three step Route to Net-Zero is the most cost-effective way to achieve low energy, low carbon buildings.

At Kingspan we have committed to becoming a Net-Zero Energy business by 2020. This initiative began in 2011 and has progressed well during the reporting period. During 2014, 34% of the energy used by the division came from renewable sources. This was achieved partly by our products and solutions. In addition to energy reduction, we boast substantial amounts of waste reduction. In particular, our facilities in the UK and Ireland are zero waste to landfill, while other sites strive to continuously develop and implement our ‘Reduce, Reuse, Recycle’, philosophy. Our envelope and Zero Energy Lighting

solutions, along with our Kingspan Energy Rooftop Solar PV solutions have played a critical role in our own Net-Zero Energy initiative. Whilst showcasing the benefits associated with our products, we can take advantage of reduced energy bills, all of which contributes to Kingspan Insulated Panels’ thought-leadership status. With the help of our Net-Zero Energy initiative, our UK operations received the prestigious Carbon Trust Standard in 2014. This demonstrated that we reduced the amount of carbon emissions associated with our activities from 2012 to 2014.

During the reporting period we have developed a number of products, concepts and technologies. In particular, our new hybrid insulation core; IPN-QuadCore, is a quantum leap in insulation panel technology that delivers industry-leading thermal performance, a 40 year thermal and structural guarantee, superior fire protection and enhanced environmental credentials.

In addition to energy and carbon saving, we seek to engage with all stakeholders. Employees throughout the division engage with local communities. Other stakeholders benefit from various service offerings such as continuous professional development (CPD) presentations, field service support and technical design advice. Financial feasibility studies are carried out and relevant literature and installation guides are produced and distributed – all helping to improve our sustainability credentials.

The aim of this report is to illustrate some of our division’s successes and also where we intend to improve. We would greatly value your comments relating to any aspect of the report and our approach to sustainability. Should you wish to provide feedback or receive the GRI Content Index please email us; [email protected]

Gilbert McCarthyDivisional Managing Director

Climate Change Opportunities

Climate Change Risk



136,400 million kWh per year...TOTAL ENERGY SAVED BY KINGSPAN GROUP’S INSULATION SYSTEMS

EQUIVALENT TO...

saving

E5.6bnin energy costs

saving

27mtonnes CO2 per year

the annual output of

47power stations

taking

14mcars off the road


136,400 million kWh per year...

Core ValuesFor 50 years, Kingspan has pushed the boundaries of the building envelope, creating the world’s most advanced, high performance insulation cores that offer superior thermal performance across the Earth’s climate zones.

taking

14mcars off the road

over

80mbarrels of oil

up to

3 timesthe annual electricity consumption

of Greater London


Climate Change OpportunitiesExecutive

Summary

Overview Operating a sustainable business with sustainable products and solutions, drives innovation and success in Kingspan Insulated Panels. Our products benefit our stakeholders. They have clear environmental and financial benefits and are assessed and certified by third party consultants. Importantly, our products are also manufactured in an organisation that continuously seeks excellence and minimises environmental impact. Our stakeholders also benefit from our commitment to local communities, our ability to provide excellent customer service and technical support and our investment in research and development, which helps us to remain world leaders. This year marks 50 years in business for the Kingspan Group, during which time the company has grown and prospered to become a global success, an achievement not possible without the dedication and commitment of our employees.




We continue to abide by our Sustainability Policy and continuously strive to improve our environmental, economic and social impacts in every market in which we operate. The Kingspan Group has committed to becoming a Net-Zero Energy company by 2020. Net-Zero Energy, as defined for our own purposes, means that our facilities are energy neutral on an aggregated basis across the Kingspan estate over the period of a year. This energy neutrality will be achieved by a combination of on-site renewable energy generation (including export to the supply grids), off-site renewable energy generation (related directly to Kingspan) and the use of energy from renewable sources.

We have made great progress since our Net-Zero Energy initiative began in 2011. Aligning with the Group’s

strategic objectives we have a clear and robust management and governance system. We have also won

various awards, received various prestigious accreditations and positively engaged with all stakeholders.


� Our products that are manufactured in the UK and Australia have gone through life cycle assessments (LCA’s) to demonstrate sustainability performance.

� Product innovation has been plentiful, including the development of IPN-QuadCore and the launch of both Zero Energy Lighting (ZEL) and BENCHMARK Kreate.

� The thermal and structural guarantee for insulated panels consisting of our unique ECOsafe PIR core remains at 25 years. In addition to this and due to the development of our new IPN-QuadCore, we can now offer a 40 year thermal and structural guarantee.

� Advancements in product waste re-use and end of life processes have been established and communicated to the market.

� Our UK operations continue to offer on-site recycling services.

UP TO

20%THERMAL PERFORMANCE

ENHANCEMENT

THE ROUTE TO NET

ZEROENERGY BUILDINGS

40YEARTHERMAL & STRUCTURAL

GUARANTEE

SUPERIOR

FIRE PROTECTION


Executive Summary

Carbon Management

� Carbon Management across the division is aligned with other initiatives, such as the Kingspan Group’s goal to be Net-Zero Energy by 2020, which has progressed well since 2011.

� Energy and carbon monitoring is widespread across the division, with reduction schemes in place.

� Relevant risks and opportunities associated to climate change are identified for each geographical location on an annual basis.

Optimised Use of Resources

� The product manufacturing process presents us with the greatest opportunity to reduce resources which can have a negative impact. With this in mind, we minimise, and where possible eliminate, waste, water usage and harmful emissions.

� Carbon emissions have reduced in line with our Net-Zero Energy performance. In fact, annual carbon emissions across the division have reduced by over 40% since 2011, despite an increase in production.

Divisional CO2 Emissions

� Total waste production and water consumption have increased during the reporting period as expected. This is in line with increased production, associated with existing operations and acquisitions made in 2012. However, every effort has been made to continue our ethos of minimising both waste and water usage.

tonnes of CO2 20

,0000

12,00

0

18,00

0

10,00

0

16,00

08,0

004,0

00

14,00

06,0

002,0

00

2011

2012

2013

2014

Carbon Management

across the division is aligned with

initiatives such as the Kingspan Group’s goal to be Net-Zero

Energy by 2020



� We have invested heavily into the research of ‘Cost Optimal Energy Saving Buildings’. The intention is to be able to advise the market on ways to achieve the most cost effective buildings that consume the minimum amount of energy during a building’s lifetime, by following their own ‘Route to Net-Zero Energy’ concept.

� During the reporting period we have also worked with a number of Green Building Councils and other organisations to continuously support efforts to improve the energy performance of existing and new buildings.

� Our products and services contribute to a wide variety of credits in various environmental assessment methods. This is communicated to the market, along with initiatives that include THERMALsafe door research, thermal bridging research and our ‘Store of the Future’ concept.

Stakeholder Engagement

� We have engaged directly with various stakeholders including building owners, developers, end users, architects, designers, customers, employees, communities, governments, industry bodies and suppliers.

� Updates are regularly communicated through a number of channels including email, newsletters and blogs.

� We offer specialist services to design teams.

� Various incentives are available for employees, which all contribute to an enjoyable and healthy lifestyle.

� Good supplier relationships are nurtured and innovation is welcomed throughout the supply chain.

� A number of communities benefit from our voluntary work and our generous contributions to different causes.

Our products and services

contribute to a wide variety of credits in

various environmental assessment

methods

Kingspan Group Overview

“ Together we have the opportunity to make our built environments more energy-efficient, attractive, adaptable, environmentally responsible and productive. The way we build can be more effective and reach higher standards than ever before. We can make our buildings really work for us; consuming and generating energy smartly to become real investments in our future”

Gene M. Murtagh, Chief Executive Officer, Kingspan Group PLC.

These are Kingspan’s aspirations and they shape every aspect of how the Group works.

We go beyond the simple manufacture and supply of high performance products, to provide stakeholders with solutions that take into account every aspect of the challenges they face. This bespoke, holistic approach has driven our success, and has made Kingspan the market-leading brand it is today. The ‘Kingspan Way’ is grounded in a number of core principles: exceptional service and support, unrivalled technical expertise, a strong commitment to environmental and social responsibility, continued investment in research and development and practical long-term guarantees backing all products.

Our market-leading businesses epitomise the Group’s philosophy of customer-led, value-added solutions.

Kingspan Group is a Public Limited Company (PLC) and the global leader in high performance insulation, building fabric and solar integrated building envelopes (for more see www.kingspan.com). Founded in the 1960s, the Group has grown steadily to become a prominent brand within the construction industry.

Global Presence

Headquartered in Kingscourt, Ireland the Group has manufacturing plants around the globe, sells in more than 85 countries and employs more than 8,000 people worldwide.



• Kingspan Locations

Total Energy Use Total Renewable Energy NZE Year GWh GWh %2011A 325 16 52012A 317 27 92013A 327 60 182014A 312 88 282015P 403 127 322016P 413 236 57A = Actual, P = PlannedKingspan Group PLC NZE figures

The Kingspan Group comprises of four primary divisions; Insulated Panels, Insulation, Environmental and Access Floors. In 2011, the Kingspan Group embarked on its own Net-Zero Energy initiative, committing to ensure that all its facilities, worldwide, are Net-Zero Energy by the year 2020, with an interim target of achieving 50% by 2016.

Net-Zero Energy (NZE), as defined by the Kingspan Group, means that all facilities, are energy neutral on an aggregated basis across Kingspan’s estate over the period of a year. This has substantial environmental impact, as well as reducing one of our largest overhead costs, therefore enabling the company to be more profitable.

Our energy efficiency measures progressed well from 2012 to 2013, but as a result of increased volume and the acquisition of ThyssenKrupp Construction Group and Rigidal Industries LLC at the end of 2012, our total primary energy consumption increased by 10GWh. However, during the period 2013 to 2014, the Kingspan Group saved 15GWh thanks to energy efficiency measures. This resulted in an additional circa E1m contribution to net profit.

2011 2012 2013 2014Turnover (Em) 1,546.9 1,628.7 1,776.8 1,891.2Operating Profit (Em) 90.9 104.7 115.5 141.5Net Profit (Em) 62.8 74.7 89.1 106.5Retained Earnings -balance (Em) 806 865 942 1,009Employees Wages & Salaries (Em) 212 227.1 254.5 270.3Net Debt at End of Year (Em) 170.1 165.5 106.7 125.5Weighted average number of ordinary shares for the calculation 166,631 167,698 173,027 174,749 of diluted EPS (’000) Diluted Earnings Per Share (Ecent) 36.4 42.9 50.7 61.3Dividends Paid (Em) 17.3 19.2 21.6 25.3Dividends Per Share (Ecent) 11.00 12.25 14.00 16.25Operating Costs, excluding intangible amortisation (Em)

326.7 338.3 337.2 367.6

Interest Paid (Em) 11.3 17.3 13.9 14.5Tax Paid (Em) 9.7 13.9 15.4 14.8

Kingspan Group PLC financial figures

[GRI EC1]Direct economic value generated and

distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

[GRI EN5]

Energy saved due to conservation and efficiency improvements.

[GRI EN26]Initiatives to mitigate environmental impacts

of products and services and extent of impact mitigation.


About Us Our Approach to Sustainability

Our brand is one of the most highly recognised in the global construction industry. Striving for sustainability throughout all products and operations is our corporate responsibility and this is reflected in our commitment to engage all stakeholders in achieving this goal.

We adopt and apply best practice sustainability principles, by ensuring environmental, social and economic parameters are considered in an integrated way in the delivery of our products and services.

To this end, as outlined in our Sustainability Policy, we will:

1 Incorporate the ethos of sustainability into the vision and values of the organisation;

2 Continually improve operational performance through the setting of long term objectives and targets related to sustainability and review progress regularly;

3 Comply with and aim to exceed applicable legal and policy requirements related to the environmental and social aspects of the organisation;

4 Optimise energy and raw material usage and prevent or minimise pollution and environmental damage;

5 Continually monitor sustainability performance and actively communicate progress, in the form of a regular published Sustainability Report, using the Global Reporting Initiative (GRI) guidelines;

6 Communicate and actively promote awareness and acceptance of our sustainability policy to everyone working for or on behalf of the organisation (including employees, shareholders, suppliers/sub-contractors and customers);

7 Ensure employees are given adequate training in sustainability issues and are fully involved in helping deliver the Sustainability Vision and Policy;

8 Implement a Code of Conduct and supporting Sustainability Guidelines for key suppliers and contractors and other interested parties to ensure they comply with the Kingspan Insulated Panels’ Sustainability Policy.

We are committed to delivering innovative solutions to help achieve the highest performing buildings in the world, as well as the development of market-leading, on-site energy generation solutions. We understand the significance of climate change to global society and the central importance of addressing the built environment as part of efforts to mitigate greenhouse gas emissions.

These efforts will not only be reliant on solutions for new buildings, but also on the ability to renovate existing buildings. We continue to provide solutions in both sectors, for the market place and also for our own facilities. As well as being a substantial business opportunity, we know that climate change represents a significant threat to our operations and because of this we are putting procedures in place for future adaptation strategies.

The climate change agenda is at the heart of the Kingspan Group’s vision and activities and this priority filters down to each division.

We also recognise that these same measures will pay dividends for our customer base, in terms of cost savings and energy security, thereby underpinning our current business strategy.

Our sustainability vision;

“To be global leader in sustainable business and

establish a leading position in providing sustainable,

renewable and affordable best practise solutions

for the construction sector”

Our responsibility and performance \ Walk the talk 17Kingspan HQ, Kingscourt, Ireland

Our approach to sustainability,

in brief, is to continually improve the environmental,

economic and social impacts on every

market in which we operate

All our facilities,

worldwide, will be Net-Zero Energy

by the year 2020

During the period 2013 to

2014 the Kingspan Group saved 15GWh

as a result of energy efficiency

measures

Total Energy Total Renewable Renewable Energy Year GWh GWh %2012A 43.4 4.27 9.82013A 55.7 17.1 312014A 59.2 20.1 342015P 60.5 24.3 402016P 63.4 40.8 64

We continue to play a key role in the success of the Group’s Net-Zero Energy initiative. An indication of the energy consumption is shown below, demonstrating continuous improvement against a background of increased production and activity.

A = Actual, P = PlannedKingspan Insulated Panels’ NZE figures

Kingspan Insulated Panels, the biggest division of the four divisions that make up the Kingspan Group contributed 59% of the Group’s E1.89 billion turnover in 2014. The division prides itself as a global leader in the design, development and delivery of advanced building envelope products and solutions. It is widely recognised in the industry for the high quality and performance of products, as well as its commitment to excellent customer service and technical support. The Insulated Panels division is split into three geographic divisions; North America, Central Europe, Mediterranean & India and Western Europe with UAE and Australasia. Unless otherwise stated, this report will focus on Western Europe with UAE and Australasia from this point forward which includes; Africa, Australia, Belgium, France, Ireland, The Netherlands, New Zealand, South East Asia, the United Kingdom and the United Arab Emirates. The report will follow the same format as previous reports.

Our wide range of products allows developers, architects and contractors to meet and exceed today’s construction challenges and create functional buildings that are aesthetically outstanding, energy-efficient, safe, cost effective and sustainable.

During the reporting period, we have not formed any joint ventures. Also, we do not outsource or lease out operations. Our business units and principle product ranges consist of: Insulated Roof & Wall Panels; Kingspan Energy; Standing Seam Systems; Fabrications, Safety & Lighting Solutions; Controlled Environments; Cleanroom Systems; Structural Products & Systems; Metal Roof & Wall Systems; Steel Building Solutions; Insulated Door Components; and, BENCHMARK high-end Façade & Roof Systems. Our primary brands are:


About Us Our Approach to Sustainability

[GRI EN28]Monetary value of significant fines and total

number of non-monetary sanctions for non-compliance with environmental laws

and regulations.

In keeping with our guiding principles, we aim to protect and care for the environment. As outlined in our Environmental Policy, we will;

1 Comply with all environmental legislation;

2 Commit to the continual improvement and minimisation of environmental impact in all areas of our activities in line with best practice principles;

3 Commit to conduct our business in a manner that will prevent pollution and demonstrate respect for the environment;

4 Fully cooperate with any government agencies in finding solutions to environmental problems, resulting from our activities;

5 Manage an effective environmental documentation system to comply with the requirements of ISO 14001;

6 Provide environmental training for all employees, promote individual and collective respect and responsibility for the environment;

7 Maintain company and departmental monitoring programmes to ensure compliance with our policy, objectives and targets programme in line with our ‘Reduce, Reuse, Recycle’ ethos.

Over the reporting period we were not fined or did not incur any non-monetary sanctions for non-compliance with environmental laws and regulations.


Each year the Kingspan Group participates in the Carbon Disclosure Project (CDP), thereby publicly disclosing sustainability information. The CDP is the world’s leading sustainability reporting platform and requires Kingspan to disclose information relating to all facilities worldwide. The Kingspan Group was ranked in the top five Irish companies by disclosure score and performance score for their performance in 2013.

However, performance in 2014 has led to the Kingspan Group being listed on the global climate performance leader Index A list, which focuses on companies that achieve performance scores in the highest ‘A’ band. The Kingspan Group was one of 113 companies worldwide that made it to the CDP’s Climate A List and was the only Irish company. This reveals that the Kingspan Group are one of the most proactive companies around the world that is doing the most to combat climate change and are also leading the corporate response to climate change.

Kingspan Group’s CEO commented “As a leading building products manufacturer with facilities across the world, the climate change agenda is at the heart of the Kingspan Group’s vision and activities. We recognize the significance of climate change to global society and the central importance of addressing the built environment - both existing and new build - as part of efforts to mitigate greenhouse gas emissions”.

Our management team consists of seven executive directors. They are responsible to report to the Kingspan Group board of directors which consists of eleven directors, six including the chairman are non executive. The Chairman is responsible for the efficient and effective working of the unitary board, including timely communication with shareholders. Shareholders get the opportunity to provide recommendations or direction to the highest governance body during the Group’s Annual General Meeting that occurs in May. For more information about the Kingspan Group Board and corporate governance, please refer to the Kingspan Group PLC Annual Report and Financial Statements. (See www.kingspan.com).

Our divisional Managing Director for Insulated Panels, Gilbert McCarthy, oversees his division’s sustainability performance and compliance with internal and internationally agreed standards, codes of conduct and principles.

Our processes and risks in terms of Quality, Energy, Environment and Health & Safety are managed by formal management systems.

All our manufacturing sites have implemented ISO 9001 for Quality Management Systems. ISO 14001 for Environmental Management Systems and OHSAS 18001 for Health and Safety are either implemented or currently being implemented in all sites. Our facility at Holywell, UK, achieved ISO 50001 for Energy Management Systems in February 2014, allowing us to be the first in our sector to be accredited to this prestigious standard. Also in 2014, our site in Dubai achieved ISO 14001.

During the reporting period we did not incur any fines or sanctions for non-compliance with laws and regulations.

In April 2014, our Steel Building Solutions division achieved the Contractors Health & Safety (CHAS) Accreditation which clearly demonstrates compliance around nationally agreed standards of Health & Safety that are set in relation to the ‘Contractors Health & Safety Assessment Scheme’.

About Us Management Systems and Governance

[GRI SO8]Monetary value of significant fines and total

number of non-monetary sanctions for non-compliance with laws and regulations.

ISO 14001 ISO 9001 OHSAS 18001 ISO 50001Kingscourt, Ireland � � � �

Holywell, UK � � � �

Sherburn, UK � � � �

Walsall, UK � � � �

Leuze, Belgium � � � �

Bavikove, Belgium � � � �

St Marys, Australia � � � �

Rigidal, Dubai � � � �

Dunkerque, France � � � �

Perpignan, France � � � �

The Kingspan

Group are one of the most proactive

companies around the world that is doing

the most to combat climate

change

About Us Management of Key Environmental IssuesAbout Us Management of Key Environmental Issues

Our governance of environmental and social issues is well established, particularly with regard to research and development, market analysis and strategic intentions.

We have also developed a clear reporting structure for environmental issues. These are identified by teams at each manufacturing site. The information is then reported to the Divisional Operations Director and Divisional Building Technology Director who report to the board of directors. This initiative is managed by our Managing Director.

We are committed to training and updating all employees on sustainability initiatives across the division. Employees are regularly trained and departmental managers encourage their peers to continuously improve their impact at work, as well as at home. Additionally, managers report any initiatives or suggested improvements that employees may want to see implemented, essentially using ‘bottom-up’ and ‘top-down’ approaches. Both approaches can lead to various benefits when aligned with each other as they provide employees greater scope to think ‘outside the box’ about new, innovative sustainable ideas.



About Us Recent Awards

We continue to receive highly valuable certifications and win prestigious awards for our commitment to sustainability.

In 2013, our UK business was shortlisted for the governance category of the Sustain’ Magazine Awards 2013, organised by Sustain’ Magazine in association with Marshalls. The Sustain’ Magazine Awards celebrate standout achievements and successes in the field of Sustainability.

Our Australian business received the ‘Innovation Alley People's Choice Award’ in 2013 at the popular industry event DesignBUILD 2013 that took place in Sydney. The award is widely recognised as a showcase of the best new product developments within the building industry. The Innovation Alley Award singled out our concept (which integrates an insulated roof panel with a photovoltaic module) from a selection of 24 shortlisted products.

Launched in Australia in March 2014, our BENCHMARK Kreate product, the first fully integrated metallic cassette façade system using insulated panel technology, was shortlisted as one of the final five candidates for The Green Cities Weapons of Mass Creation. This is a competitive celebration of the industry’s creativity and innovation in the field of sustainable ideas, techniques, technologies and design.

� In May 2014, our UK operations were awarded the Carbon Trust Standard. The Carbon Trust Standard is a mark of excellence identifying organisations that have measured, managed and reduced their carbon emissions. To achieve the Carbon Trust Standard, organisations must be able to display annual carbon reductions over a period of three

years and prove that they have the necessary management procedures, plans and targets in place

to continue achieving year-on-year carbon reductions in the future.

In 2014, our UK operations were awarded the

Carbon Trust Standard demonstrating carbon

reduction over three consecutive

years

We applied for the Royal Society for the Prevention of Accidents (RoSPA) award in 2012, 2013 and 2014. There are three levels: bronze, silver and gold and our Holywell site was awarded gold in each year. In fact, the 2015 award will mark the 8th consecutive year that we will have received the RoSPA award.


In October 2014, our Kingspan Energy business unit, with the refurbishment of our sister insulation site in Selby, became the winner of the Commercial Solar Installation of the Year category at Solar Power Portal Awards Ceremony, NEC Metropole, Birmingham. The awards recognise the most impressive, efficient and yield-conscious commercial rooftop PV deployment project in the sector. Unlike many other installations where PV systems are retrofitted onto existing roofs, the Selby project included a full refurbishment of the roof, with the addition of a fall protection system, a Kingspan Zero Energy Lighting solution and a Kingspan Energy Solar PV solution. These were all delivered by ourselves, and accompanied by a range of services. The judges said that the project served as an exemplar to others, and were particularly impressed by the array’s integration with an energy performance certificate (EPC) rating F to A.

Kingspan Energy team at the Solar Power Portal Awards Event

PV array at the Kingspan Insulation Selby site

About Us Recent Awards


During 2012, 2013 and 2014 our employees participated in the Big Dee Day in North Wales. The Big Dee Day is an annual two-day clean up that encourages local organisations and the community to volunteer to clean up the foreshore along the Dee Estuary. Supported by the Welsh Government’s Tidy Towns initiative, it is a partnership event with many local business, community groups, public sector and voluntary organisations getting involved.

As a result of our contribution between 2007 and 2013 we were awarded the inaugural Big Dee Day Business Award.

As a result of our contribution

between 2007 and 2013 we were awarded

the inaugural Big Dee Day Business

Award

Sustainable Product Stewardship Product

Innovation

Life Cycle Analysis



Product Innovation

Climate Resilience


Sustainable Product Stewardship Life Cycle Analysis

As a leader in sustainable business, we are committed to providing sustainable solutions to the property market. This is enforced as a top priority by senior managers and directors throughout the products’ life cycle, from cradle-to-grave, in all countries.

In 2014, we used the Building Research Establishment’s (BRE’s) Environmental Profiles Assessment Methodology to re-assess our products manufactured in the UK, as their previous environmental profiles where due to expire. The methodology used is ISO 14020 and ISO 14040 compliant, and covers 12 environmental impacts over a 60 year cradle-to-grave period.

As a result of the assessment carried out by the BRE, our Architectural Wall Panel range and Trapezoidal wall products have achieved an A+ rating and KingZip IP and Trapezoidal roof panels have achieved either an A+ or A rating depending on the building’s intended end use. Our products’ environmental profiles help achieve the maximum amount of credits within the materials category of BREEAM.

Additionally, we have begun a Life Cycle Analysis (LCA) to assess our products against EN 15804: 2012 for Environmental Product Declarations. Similar to the BRE’s methodology, it calculates the environmental footprint at each stage of the supply chain, manufacturing processes, product use and end of life.

All the significant environmental impacts associated with the product, including the impact on water, air, land and climate change are reported and quantified.

Again, this also contributes to environmental assessment methods such as BREEAM, LEED, Green Star and Estidama assessments.

Product All Building TypesKS600/900/1000 AWP A+KS1000 RW A+

Ecopoint: 0.460 KS600/900/1000 AWP*

Ecopoint: 0.527 KS1000 RW**

Ecopoints

External Wall Construction

All building types

0 0.25 0.5 0.75 1.0 1.25 1.5 1.5 2.0 2.25 2.5

A+ CA DB E

* KS600/900/1000 AWP Panel with ECOsafe polyisocyanurate (PIR) insulation core manufactured at Holywell horizontally laid. Supported on cold rolled steel rails and structured steel frame. Steel facing; generic organic coatings. Insulation 70mm core thickness.

** KS1000 RW Panel with ECOsafe polyisocyanurate (PIR) insulation core manufactured at Holywell horizontally laid. Supported on cold rolled steel rails. Steel facings; generic organic coatings. Insulation 70mm core thickness.

High performing specifications

Low performing specifications


Product Office Healthcare Retail Industrial EducationKS500/1000 KingZip A+ A A A+ A+ (Aluminium external) KS500/1000 KingZip A+ A A A+ A+KS1000 RW A+ A A A+ A+

Ecopoints

0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0

A+ CA DB E

A+ CA DB E

A+ CA DB E

Domestic

Office, Education & Industrial

Healthcare & Retail

Roof Construction

Ecopoint: 0.460 KS1000/2000 RW***

Ecopoint: 0.464 KS500/1000 KingZip IP** (Aluminium ext facing)

Ecopoint: 0.493 KS500/1000 KingZip IP*

* KS500/1000 KingZip IP panel with ECOsafe polyisocyanurate (PIR) insulation core manufactured at Holywell. Supported cold rolled steel purlins and structural steel sections. Steel facings; generic organic coatings. Insulation 120mm core thickness.

** KS500/1000 KingZip IP panel with ECOsafe polyisocyanurate (PIR) insulation core manufactured at Holywell. Supported cold rolled steel purlins and structural steel sections. Outer aluminium facing, inner steel facing; generic organic coatings. Insulation 120mm core thickness.

*** KS1000/2000 RW Panel with ECOsafe polyisocyanurate (PIR) Insulation core manufactured at Holywell. Supported on cold rolled steel purlins and structural steel sections. Steel facings; generic organic coatings. Insulation 120mm core thickness.

High performing specifications

Low performing specifications

In 2013, Edge Environmental in Australia carried out robust Life Cycle Analysis (LCA) on our products in Australia and New Zealand (compliant with ISO 14040, ISO 14044 and the Building Products Life Cycle Inventory - BP LCI Methodology). The process considered 12 midpoint environmental impact categories, which resulted in a single eco point for both roof and wall products, showcasing the sustainable attributes of our panels.

Our insulated panels manufactured in Australia have achieved a Global GreenTagCERT TM Gold Plus certification with a GreenRate® Level A. We were the first insulated panel manufacturer to receive this ‘globally respected’, third party certification which allows specifiers to easily earn points with both the Green Building Councils of Australia and New Zealand under the Green Star programs.

In 2014, LCA’s were updated to renew Global GreenTagCERT TM certification and update Environmental Product Declarations to the more prestigious Type 3 certification.

Global GreenTagCERT TM is recognised by the Green Building Council of Australia and New Zealand Green Building Council under the Green Star Third Party Certification scheme. Global GreenTagCERT TM is a Type 1 ecolabel in conformance with ISO 14024 and is underpinned by rigorous, independent, scientific assessment processes.

Sustainable Product Stewardship Life Cycle Analysis


Our insulated panels manufactured

in Australia have achieved a

GreenTagCERT TM Gold Plus certification

with a GreenRate® Level A


BP LCI Methodology: Illustration of the Ecopoint metric

Midpoint Impact Categories

Single Source

Ecopoints

Global Warming

Abiotic Resource Depletion (minerals and fossil fuel)

Land Transformation and Use

Water Depletion

Eutrophication

Acidification

Photochemical Smog

Eco-toxicity (freshwater, marine and terrestial)

Ozone Depletion

Ionizing Radiation

Human Toxicity

Respiratory Effects

N

O

R

M

A

L

I

S

A

T

I

O

N

W

E

I

G

H

T

I

N

G

Life Cycle Inventory

Data


End of Life ProcessesWe understand the significance of sustainability to global society and we are committed to providing clients with cost effective, sustainable ‘end of life’ solutions to mitigate the impact products may have on the environment. In summary, we understand the importance of taking positive action today, to create a better world for tomorrow.

Our objective is to ensure sustainability is considered in the design, manufacture, installation, use and end of life of our products. For this purpose we advise on best practice at every stage. With the evolution of Energy from Waste technology and recycling processes, we can now offer more advanced ‘end of life’ solutions.

We strongly recommend that our products are not sent to landfill at the end of their life. Re-use is always the best option and we have demonstrated cases where insulated panels have been re-used, particularly on buildings where aesthetics are not vitally important. Insulated panels have also been used at the end of their life for other applications, such as support for advertising on football fields and donations to local communities, in the case of the scout hut in Somerset in the UK.

RDF waste baler, Kingscourt site, Ireland

Panels recycling equipment, Kingscourt site, Ireland

Re-use of Kingspan insulated panels, scout hut, Somerset

Production Waste Re-useIn current production, waste insulation is recycled back into our manufacturing process at our Kingscourt site in Ireland. This process allows all production waste to be fully recycled and has opened the door to allow 100% of our insulated panels to be recycled at the end of their life.

We are currently reviewing this concept with the aim of introducing the same process into our other sites. Production of our trapezoidal roof panel in Kingscourt now contains up to 3% recycled content in the insulation.

In Holywell, insulated panels that are rejected for quality reasons are either sold as grade B panels or recycled through the baling process.

Low Global Warming Potential Our insulated panels manufactured since 2004 do not contain any Ozone-Depleting Substances (ODS). Insulation cores are free from CFCs (Chlorofluorocarbons) and HCFCs (Hydrochloro-fluorocarbons).

HFCs are often referred to as ‘super-greenhouse gases’ and can be thousands of times more powerful than CO2. Today they pose a growing threat to the climate and are often perceived to be associated with insulation. Although it cannot be said for all manufacturers, we are proud to offer products that are free from substances with a high global warming potential (GWP), such as HFCs.

All raw materials are responsibly sourced from suppliers, enhancing the environmental credentials of our insulated panels and therefore achieving outstanding performance in third party certification.

Sustainable Product Stewardship Environmental Protection



Closed Loop Process

Kingspan insulated panels manufactured with steel containing 20-25% recycled content and raw materials from suppliers who use energy from waste

40+ yearsKingspan insulated panels installed on site

Non recyclables baled and transported to EfW

Steel is recycled and sold to steel producers

Kingspan insulated panels at end of life

Transported to Material Reclamation Facility

Clean energy produced from EfW Power plants

Scrap steel purchased, molten and reused by steel providers. Other suppliers use

clean energy from waste in their operations




If insulated panels cannot be re-used, we suggest two options;

Insulated panels are transported to a reclamation facility. Here the panels are mixed with other waste streams whereby they are shredded, the steel is extracted and recycled, the waste core is baled (with other non-reusables) and is sent to an Energy from Waste (EfW) power production plant. Each bale weighs approximately 1.5 tonnes and has the ability to generate 850 kWh of energy. Some of our suppliers in Europe currently procure energy from waste from companies such as Dong, resulting in a ‘closed loop process’.

Insulated panels, which were made pre-2004 and contain Ozone-Depleting Substances, are transported to a refrigerator recycling plant where the steel is separated for recycling and the contaminates in the insulation are captured using an extraction system.


Stage Gate Innovation Process

Sustainable Product Stewardship Product Innovation

We aim to provide products and services that allow developers, architects and contractors to meet even the toughest construction challenges enabling them to create functional buildings that are aesthetically outstanding, energy-efficient, safe, cost-effective and sustainable for end users.

We are constantly improving the insulation technology that forms the core of every single insulated panel, as well as constantly developing our product offering.

CE labels are available for all insulated panels sold in Europe to demonstrate compliance with the essential requirements of the Construction Products Regulation (CPR).

During the reporting period, we did not incur any fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Stage Gate ProcessProduct innovation is an important part of our business. The innovation process requires strategic attention at an early stage when there is most potential to impact on design decisions. Every new product development follows a set routine, called the Stage Gate Process.

This integrates numerous performance-driving practices into an easy to understand step-by-step process. It engages users of all decision-levels and functions, enabling quality execution, timely Go/Kill decisions, alignment and speed. The result ensures superior products reaching markets faster and generating better profits.

[GRI PR3]Type of product and service information

required by procedures, and percentage of significant products and services subject to

such information requirements.

[GRI PR9]

Monetary value of significant fines for non-compliance with laws and regulations

concerning the provision and use of products and services.

Idea Generation

Gate 1 -Opportunity

Review 1Gate 2 -

Opportunity Review 2 Gate 3 -

Business Case Review

Gate 4 - Proceed to

TestingGate 5 -

Proceed to Launch

Final Review

Ideas

Products

Preliminary Investigation Feasibility Development Test &

ValidationProduction and Market Launch

1

2

34

5

We have pushed the boundaries

of building envelope technology for 50 years.

Our insulated panels feature the world’s most advanced, high performance insulation

cores, offering superior thermal performance

in any climate


IPN-QuadCore™ Technology

A recent example of product innovation is the development of IPN-QuadCore, our revolutionary new core material. The invention of IPN-QuadCore is a quantum leap on the journey to high performance buildings that are better for the environment and business. We plan to have all products available with IPN-QuadCore in 2016.

IPN-QuadCore delivers Kingspan’s biggest scientific breakthrough in over a decade, with the industry’s highest thermal performance, a unique 40 year thermal and structural guarantee that’s unrivalled among advanced building systems, superior fire protection and enhanced environmental credentials:

Thermal: An unbeaten thermal performance of 0.018 W/m.K resulting in a thermal performance improvement of up to 20% compared to a typical value of 0.023 W/m.K. This is the best in the industry. Together with optimised building design, this pushes the potential for reduced heat transfer to new levels. Better thermal performance in building envelopes reduces the load on heating and cooling, creating significant additional energy savings and making IPN-QuadCore a game-changer in terms of enhanced building performance.

Guarantee: An unprecedented thermal and structural guarantee of 40 years as standard. This means that its thermal performance will remain for 40 years and the product’s spanning characteristics will perform as outlined in our load-span tables for 40 years. This helps minimise lifetime energy bills and helps provide trouble-free ownership.

Fire: Superior levels of fire protection. It is the only closed-cell insulated panel material that, when tested as a system, is approved to FM 4882 for smoke sensitive occupancy. Systems containing IPN-QuadCore insulated panels are ‘insurer certified’ to FM and LPCB. Its superior characteristics in fire tests are allowing longer spans and the removal of stitching screws in some fire resisting applications. All this provides ease of build and safe places to live and work.

Environmental: Free from substances with a high global warming potential (GWP), such as HFCs. It is also zero waste to landfill at end of life. IPN-QuadCore systems create environmentally responsible buildings that benefit from enhanced green ratings when environmental assessments are required, such as BREEAM, LEED, Green Star and Estidama.

Microscopic view


By optimising the application and design of our Day-Lite polycarbonate rooflights, it is possible to improve building comfort levels and reduce energy demand by benefiting from natural light.

Research shows that more exposure to natural light enhances the productivity, safety and wellbeing of a building’s occupants. Yet many of today’s commercial and industrial buildings are still equipped with inefficient High Intensity Discharge (HID) lighting that provides a poor quality of light, which is often dull and yellowish.

With the introduction of Smart-Lite, our highly-efficient intelligent LED technology, a natural quality of light, replicating midday sunlight in terms of colour temperature and vibrancy can be achieved. Furthermore, lighting energy costs are minimised, typically offering a reduction of 50% when compared to traditional lighting sources.

Each of our Smart-Lite luminaires can include smart controls that react rapidly to changing environmental conditions. Automatic daylight dimming ensures the most efficient use of natural daylight, whilst occupancy sensors provide precise zonal control, so that areas are only lit when required. This intelligent technology can typically provide an additional energy saving of 40%.

With the addition of our Kingspan Energy rooftop solar PV solution, it is possible to eliminate the residual lighting energy demand, achieving or surpassing our ZEL objective.

Sustainable Product Stewardship Product Innovation

Kingspan ZerO Energy Lighting (ZEL)

We recently launched a ground breaking concept into our core markets called ZerO Energy Lighting (ZEL).

ZEL offers a unique blend: high quality daylight solutions; intelligent LED lighting; fully customised automatic controls; and our Kingspan Energy rooftop solar PV solution.

Our intelligent LED lighting offers a major improvement in energy efficiency, both as a light source and through improved levels of lighting control. The automatically-controlled lighting levels are imperceptible to occupants as they move around the building, surrounding them with a consistent level of quality light from a combination of daylight and artificial sources.

From a building management perspective, manual lighting control leads to lights being left on and energy being wasted. It is far better for the lighting to be controlled by the building management system, allowing the automatic controls to deliver optimised performance.

Our integrated technology is what makes ZerO Energy Lighting an attractive and solid business proposition. It goes beyond energy savings to create future-proofed, sustainable buildings with safe, comfortable and productive working environments.

Kingspan ZEL concept

The adoption of ZEL would result in a saving of £3.7bn in annual electricity

bills for UK businesses

A typical ZEL installation pays for itself in

under three years


BENCHMARK Kreate Integrated Façade System

In 2014, we launched BENCHMARK Kreate; a ground-breaking metallic cassette façade system that is fully integrated with an insulated panel and is the first and only system of its type on the market.

This unique, seamless, single component cassette façade system allows architects to combine colours, finishes and arrangements in an almost infinite variety of ways. Along with its design flexibility, BENCHMARK Kreate offers all the advantages of an insulated panel system; single-component with single-fix installation for ease and speed of build plus exceptional lifetime performance for durability, fire prevention, sustainability, thermal integrity and thermal insulation; all of which is backed up by our BENCHMARK Total Guarantee.

This revolutionary façade system is another example of our drive for innovation, putting an end to the age-old compromise between performance and aesthetics and satisfying both in equal measure.

Customer Focused

Market orientation is extremely important for our innovation process. We thrive on meeting and exceeding the requirements of our customers.

In addition to our high performance insulation core, we have value-engineered interlocking joints that minimise air-leakage. This reduces energy consumption and allows building users to save even more money on energy bills.

The process of installing our insulated panels is faster than traditional multi-part or built-up systems. Insulated panels are single component systems, installed through a single-fix installation process, resulting in approximately 50% faster site installation. This rapid speed of installation can help to reduce the risk of accidents, as less time is spent working at height. It also means that the building is weathertight earlier, achieving a significant reduction of overall build programme and cost and allowing customers to be more profitable and competitive.

KREATEWITHOUT COMPROMISE


Sustainable Product Stewardship Service Innovation

On-site Recycling

On-site Recycling ServiceIn line with our policy to ‘Reduce, Reuse, Recycle’, our UK operations offer several free of charge options to reduce waste on-site in a sustainable manner. We offer pallet return, plastic packaging recycling, a recycling service for panel off-cuts and spare panels through the provision of on-site balers for projects of a certain size and return service for the polystyrene blocks in packs of KingZip IP Standing Seam panels.

GuaranteeOur guarantees provide assurance for all the key performance areas of our product ranges, ensuring the systems perform as expected for long periods of time.

IPN-QuadCore insulated panels will carry a 40 year thermal and structural guarantee. Our insulated panels manufactured in the UK, with Insurer Approved ECOsafe PIR cores, are offered with a 25 year thermal and structural performance guarantee.

Guarantees on insulated panel coatings are subject to the location of buildings (inland or coastal); however they can extend up to 40 years.

Our Kingspan Energy business unit offers a 25 year system guarantee and if the PV system is funded by Kingspan Energy we can offer free lifetime monitoring and maintenance, covering both the roof and the PV system.




Sustainable Product Stewardship Climate Resilience

We understand that harmful greenhouse gasses released into the earth’s atmosphere have significantly changed our climate patterns. This is leading to extreme weather conditions and placing a burden on materials, resources, health and the operation of buildings.

The climate has changed and continues to do so despite efforts to reduce greenhouse gas emissions. This has led to weather conditions becoming more extreme, i.e. warm regions becoming hotter and cooler regions becoming colder. Over the past 40 years we have unfortunately witnessed a huge increase in the amount of floods and storms around the world. These extreme weather events have substantial secondary effects that need to be considered when designing new buildings and renovating the existing building stock.

As a global provider of building envelopes to the property market, we have a responsibility to ensure buildings are functional, comfortable, fit for purpose and safe for occupancy. To do this we aim to provide solutions that:

reduce the reliance on infrastructure over the life of buildings without the need for increased demands as buildings age;

are thermally comfortable for the occupants. Our solutions ensure the lifetime demands on a building envelope are considered at design stage and all building services are capable of continued performance through any future extreme weather.

remain comfortable during power failures, i.e. delivering a passive design which focuses on the building envelope to reduce the need for building services.

Carbon Management Climate Change Opportunities

Case Study



Climate Change Risk



Other activities to reduce our carbon footprint include:

widespread usage of video conferencing (VC). All locations have a VC facility which allows employees to be connected at any time, reducing the need for employees to travel to various geographies;

a car share scheme, which is being promoted and a prize draw is organised at the end of each year to encourage participation to the scheme in Holywell;

a cycle to work scheme which is currently in place for employees in Holywell. They can benefit from a minimum of 25% discount on purchasing a bicycle for the purpose of cycling to work.

During the reporting period, a number of energy efficient and renewable energy-based products were installed in sites across the division to reduce both primary energy consumption and the release of carbon dioxide emissions into the atmosphere.

In Kingscourt, Ireland, we have an Energy Performance Contract (EPC) in place to save an annual 700 MWh of energy, thereby reducing carbon dioxide emissions by 323 tCO2e. This is achieved by improved monitoring, installing our LED lighting, compressed air system improvements, installation of a Building Management System (BMS) and optimising the extraction system. Similar EPC’s have also commenced during the reporting period at our sites in Holywell, UK and Sherburn, UK. In Holywell the EPC saved 1,200 MWh and offset 101 tCO2e in 2013, and in Sherburn the EPC saved 2,800 MWh while reducing carbon dioxide by 1,165 tCO2e in 2013.

Carbon Management Introduction

In September 2014 the USA held a climate summit whereby serious actions were called for to combat global warming. Data relating to global climate change shows a direct link between economic activity and carbon emissions. Buildings all over the world continue to consume 40% of the energy produced. Interestingly, in Europe for example, approx E421bn is invested on importing energy into the EU’s economy annually. If 25% of the money invested in importing energy was actually spent on the deep renovation of the existing building stock, it would be possible to reduce the energy consumption across Europe by 80% by 2050. In doing so it would create jobs, enhance health, reduce Europe’s dependency on imported fuel and create a buffer against rising fuel costs. This is a sound investment, considering on average E1 invested in energy efficiency results in E5 returned to public finances.

As already mentioned, Kingspan Group has embarked upon a journey to become a Net-Zero Energy company by 2020 and is doing its part for the environment by continuing to reduce its energy consumption and carbon emissions.

Our energy consumption and carbon emissions from 2012 to 2014 are as follows:

[GRI EN3]Direct energy consumption by primary

energy source.

[GRI EN16]Total direct and indirect greenhouse gas

emissions by weight.

[GRI EN18]Initiatives to reduce greenhouse gas emissions and reductions achieved.

Carbon Emissions 2012 2013 2014Natural Gas (tCO2) 2,247 2,127 2,530Gasoil/Fuel Oil (tCO2) 4,781 4,901 4,791LPG (tCO2) 375 432 519Non-Renewable Electricity (tCO2) 9,026 3,395 1,894

Energy Consumption 2012 2013 2014Natural Gas (GJ) 43,644 41,316 49,203Gasoil/Fuel Oil (GJ) 46,185 51,385 51,870LPG (GJ) 6,733 7,757 9,495Non-Renewable Electricity (GJ) 62,245 37,628 8,087Renewable Electricity (GJ) 14,117 62,637 92,389

In October 2014, the European

Council decided on a 40% carbon emissions

reduction target for 2030 compared to 2005, while also setting a 27% energy saving target and a 27% renewable energy

contribution target

Energy Consumption 2012 2013 2014Natural Gas (kWh) 12,133,267 11,486,052 13,678,644Gasoil/Fuel Oil (Litres) 1,458,079 1,622,217 1,637,527LPG (Litres) 244,888 282,112 345,320Non-Renewable Electricity (kWh) 17,290,166 10,452,088 2,246,492Renewable Electricity (kWh) 3,921,295 17,399,138 25,663,582


[GRI EN6]Initiatives to provide energy-efficient

or renewable energy based products and services, and reductions in energy

requirements as a result of these initiatives.

[GRI EN18]

Initiatives to reduce greenhouse gas emissions and reductions achieved.

Also since being commissioned in 2011, our 0.4MWp Kingspan Energy rooftop solar PV system installed in Holywell has been performing as expected on an annual basis as indicated in the graph below. All electricity produced by the PV system is used on-site. The electricity produced by the system has offset 579 tCO2e from installation to December 2014.

An increase of PV installations is predicted to increase overall energy production for 2015/2016 can be seen. This is as a result of a 5MWp Kingspan Energy rooftop solar PV installation on our site in Sherburn, UK which is due to be commissioned in 2015. A summary of our net carbon emissions is shown below.

Divisional PV Electricity Production (kWh)

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

A = Actual, P = PlannedKingspan Group PLC NZE figures

2012 A 2013 A 2014 A 2015 P 2016 P

kWh

Divisional CO2 Emissions (tonnes)

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

02011 2012 2013 2014

tCO

2

Carbon Management Climate Change Risks

[GRI EC2]Financial implications and other risks and

opportunities for the organisation’s activities due to climate change.

RisksCarbon taxes have an impact on our overheads but are a very small proportion of the total costs of sales. It is estimated that carbon taxation could increase costs associated with energy by 10%, but this is unlikely to be uniform across our operations. Energy efficiency measures will reduce exposure, while wider increases in energy costs will also drive further demand for products, which could outweigh the risk. For example, the cost of the UK’s Carbon Reduction Commitment (CRC) for the Kingspan Group in the period April 2013 to March 2014 was approximately E500,000; however the cost for our operations in the UK equated to approximately E160,000.

The Montreal Protocol and United Nations Framework – Convention on Climate Change (UNFCCC) require companies to report on gases with a high global warming potential (GWP). We have made a number of blowing agent changes leaving little exposure to further development in the framework.

Planning restrictions for on-site renewables and reduced incentives for renewable energy could negatively impact our Net-Zero Energy initiative. Also our Kingspan Energy business unit could also be negatively impacted by reduced renewable energy incentives which weakens the business case for renewable energy technologies.


As part of our Net-Zero Energy initiative, we take responsibility to identify potential risks and opportunities associated with climate change that may impact our business in the future. Each year representatives are responsible for completing a questionnaire issued by the Kingspan Group in an attempt to measure risks and opportunities associated to climate change. Some of the risks and opportunities recorded are below.

Building regulations have the tendency to change quickly while lack of enforcement can also exist. Fast changing building regulations incur additional capital investment to manufacture products to suit but can also stimulate additional sales and improve competitive position. Lack of enforcement is a major financial concern as it discourages the sale of our products.

Changes in average mean temperatures globally could gradually impact the need for insulation in the cases of rising and falling temperatures. Extreme weather conditions such as storms or high winds, increased snow and ice or increased precipitation can reduce operational days on construction sites and therefore reduce the demand for products accordingly. This could also make planning and cash management extremely difficult for us.

One of our sites is located on a river estuary and is known to be at risk of flash flooding and vulnerable to a rise in sea level. However, occurrences have been limited to date. Interruption cost would be substantial, albeit covered by insurance and fortunately we have the ability to transfer production to our other sites.


Carbon Management Climate Change Opportunities

[GRI EC2]Financial implications and other risks and

opportunities for the organisation’s activities due to climate change.

OpportunitiesWe already have an excellent reputation as a thought-leader in the field of exploring ways to reduce the negative impact that a building can have on climate change. We can significantly enhance this work with increased awareness and focus. This is particularly relevant with regards renovating the existing building stock. Current trends toward low interest rates in various financial systems, in coordination with increased population, facilitate construction of new buildings that in turn stimulate the need for our products.

The implementation of any measure, such as carbon or fuel taxes which adds to the cost of energy, will support the need for our energy efficient solutions and on-site renewable energy technologies to reduce the primary energy demand of buildings. Capping carbon emissions in buildings, implementation of trade schemes and obligations to report carbon emissions will encourage greater focus on the amount and type of energy sourced, therefore putting pressure on reducing energy consumption.

Product efficiency legislation and product labelling regulations allow us to showcase our state-of-the-art technology by means of comparison. The increased focus at a consumer level is positive for us as it further drives awareness of the need to combat climate change; therefore increasing the demand for our products and services. Also, national governments’ commitments such as compulsory building energy labelling and planned deep building renovation strategies, facilitate the need for our products.

Changing temperatures can have two key impacts. The first is the requirement for better performing insulation in an increased number of climates. The second is the regulatory shift towards more stringent building codes which, again, drives the demand for insulation. Increased snow and ice as a result of climate change can negatively impact the construction industry in terms of lost days on-site. However, due to their prefabricated nature, installing insulated panels can reduce time on-site for roofing and cladding contractors by approximately 50%, therefore reducing the impact of lost days on-site. A shortage of skills amongst roofing and cladding contractors in some markets favours quick installation which provides an opportunity for the sale of insulated panels.

The limited availability of natural resources, based on a net energy assessment continues to promote a more frugal use of energy. Now and in the future renewable energy technologies and energy efficiency measures from Kingspan are key solutions to the problem.


Kingspan Insulated Panels (PTY) LtdPinetown

Kingspan Insulated Panels Ltd Nigeria (Agent), River State

Kingspan Insulated Panels Tanzania (Agent), Dar El Salam

Carbon Management Africa

Our operations have little negative impact in Africa and our products and solutions that reduce carbon emissions are available throughout the continent through our sales presence in South Africa, Tanzania and Nigeria. The current need to reduce energy consumption and carbon emissions in Africa is commonplace, inevitably increasing the need for our products.

For example, South Africa is one of the most promising and emerging economies of the 21st century; however, with approximately 433,173 kilotons of CO2 emitted annually (approximately 1.5% of the world’s total carbon emissions) it is the largest emitter of carbon dioxide compared to all other countries in Africa.

As a response to the problem, the South African National Standard (SANS) building regulations were launched in 2011 to combat poor performing buildings that consume large amounts of energy and emit large quantities of carbon dioxide. In addition to this, the Green Building Council South Africa (GBCSA) launched Green Star South Africa, an environmental assessment tool that provides measurement for green buildings in South Africa, which recognises and rewards environmental leadership in the property industry.

New Friedrich Boysen Exhaust Technology Factory, East London, South Africa


Kingspan Insulated Panels PTY St Marys - Sydney

Carbon Management Australia

Our manufacturing facility and offices in Australia are located in St Marys, New South Wales and accounted for 1,362 tCO2, 1,285 tCO2, and 1,518 tCO2 emissions during 2012, 2013 and 2014 respectively. The increase in carbon emissions is a result of a 32% increase in production from 2013 to 2014. Our products and solutions are available throughout Australia, helping to alleviate the growing concern about carbon emissions.

Australia has one of the highest per-capita greenhouse gas emission rates in the world. Electricity accounts for approximately 36% of the greenhouse gas emissions released into Australia’s atmosphere each year. The majority of this electricity is used in buildings and industry. Buildings rely on electricity specifically for cooling during the warm months of the summer period.

In 2012, Australia’s government enforced a carbon tax, whereby it charges AUD $23 for every tonne of CO2 released into the atmosphere. In July 2014, Australia voted to repeal the carbon tax as Prime Minister Tony Abbott described it as, “useless and destructive”.

Nevertheless, Australia has promised to reduce its emission levels by 5% by 2020, and a target of obtaining 20% of electricity from renewable sources by 2020 also remains in place.

IKEA Tempe store in New South Wales Australia’s largest single Rooftop Solar PV project, built by Kingspan Energy


Carbon Management Belgium

Our operations in Belgium include facilities in Grobbendonk, Bavikove and Leuze-en-Hainaut. Recorded CO2 emissions from our operations in Belgium were collectively 1,303 tCO2, 1,800 tCO2 and 894 tCO2 for 2012, 2013 and 2014 respectively.

Environmental Policies including carbon emission targets in Belgium are mainly a regional competence. In summer and autumn 2013 all three regions in Belgium adopted new climate plans.

Belgian authorities have pledged to reduce greenhouse gas emissions by 15% by 2020, compared to 2005 baseline. 75% of CO2 released from buildings in Belgium is from residential buildings, whereas 25% comes from the commercial and industrial sectors.

New Loda factory and office building, Beerse, Belgium.Building nominated for the Steel Construction Award (Concours Construction Acier Nov 2014)

Kingspan N.V.Grobbendonk

Isocab N.V.Bavikhove

Kingspan Door Components S.A.Leuze-en-Hainaut


Isocab France sas Grande Synthe

Kingspan sarl Roissy Charles de Gaulle

Isocab France sasPerpignan

Carbon Management France

We have three locations in France - a sales office in Paris and two manufacturing facilities with offices in Dunkirk and Perpignan. Operations in France accounted for 206 tCO2, 610 tCO2 and 301 tCO2 emissions during 2012, 2013 and 2014 respectively.

Nationwide, carbon emissions in France unexpectedly increased by 2 million tonnes (0.6%) in 2013, despite carbon emissions decreasing by 2.5% during the same year in Europe. France is the 8th biggest producer of energy in the world, but most of its production comes from nuclear.

Emissions from buildings currently account for almost 20% of French greenhouse gas emissions. Recently, France committed to the total renovation of the French real estate standards ‘low energy buildings’ by 2050.

Lycée Blériot, Cambrai, France


Kingspan Limited Kingscourt

Carbon Management Ireland

During 2012, 2013 and 2014 our facility in Kingscourt, Co Cavan was responsible for emitting 1,774 tCO2, 1,581 tCO2 and 699 tCO2 respectively. The significant reduction in carbon emissions from 2013 to 2014 was primarily due to energy efficiency measures and the procurement of renewable electricity.

In 2013, Ireland’s recorded carbon emissions were estimated to be 57.81 million tonnes. This was 0.7% lower than in 2012, indicating that Ireland is making an effort to reduce carbon emissions. Like all other EU countries, Ireland has a carbon emissions reduction target to meet in 2020 to coincide the EU’s overall target of a 20% reduction. According to the Environmental Protection Agency, under the ‘best case’ scenario, Ireland is projected to cumulatively meet its compliance obligations over the 2013 – 2020 periods and meet its 2020 carbon target.

Cork Institute of Technology (refurbishment consisting of an envelope solution from BENCHMARK by Kingspan)

Thermal imagery of Cork Institute of Technology highlighting the benefits of the partly refurbished building


Carbon Management The Netherlands

Our office in Tiel provides the Dutch market with our products and solutions. In 2012, the Netherlands greenhouse gas emissions were 8.8% lower than in 1990 which is impressive considering GDP increased by 50% in the same period. However, a lot more effort is required to achieve future targets.

In 2012, the Netherlands accounted for approximately 4.2% of all greenhouse gas emissions from EU member states. To coincide with EU targets, the Dutch government has set three objectives for 2020; a binding non-Emissions Trading System share of 16%, a binding 14% renewable energy contribution and 1.5% annual energy saving. However the Netherlands’ 2030 targets includes a 40% greenhouse gas emissions reduction.

Dok Vast distribution centre, Tilburg, The Netherlands(a BREEAM ‘Outstanding’ building)

Kingspan B.V., Tiel


Carbon Management New Zealand

Located in Christchurch, our commercial office provides New Zealand with products and solutions. We do not have manufacturing facilities in New Zealand therefore have minimal direct carbon emissions associated to our operations.

New Zealand is a signatory of the Kyoto Protocol’s first commitment and the United Nations’ Framework Convention on Climate Change (UNFCCC) and therefore has shown commitment to reduce greenhouse gas emissions. According to the Ministry for the Environment, in 2012 total greenhouse gas emissions were 60.9 MtCO2 in New Zealand. Moving forward, the New Zealand government has set three national targets for reducing the countries greenhouse gas emissions that cover medium and long term goals. Targets include an unconditional 5% reduction of greenhouse gas emissions by 2020 using the 1990 baseline, a conditional target range of 10% to 20% reduction if a comprehensive global agreement occurs, and a long term reduction of 50% greenhouse gas by 2050.

Orion Building, Christchurch Spark Datacentre, Auckland

Kingspan Ltd Christchurch


1

2

34

5

1 KingsKorea (Agent), Seoul

2 Kingspan Insulated Panels Pty Ltd, Bangkok

3 Kingspan Insulated Panels Pty Ltd, Kuala Lumpur

4 Kingspan Insulated Panels, Singapore

5 Kingspan Insulated Panels, Jakarta

Carbon Management South East Asia

We provide products and solutions throughout South East Asia (SEA) via our sales locations in Kuala Lumpur, Singapore, Bangkok, Jakarta and South Korea.

Much focus has been on SEA in recent years as the region has experienced extreme weather conditions and natural disasters caused by climate change. While greenhouse gas emissions in SEA are historically low, rapid urbanisation and industrialisation are pushing it toward a more carbon-intensive development path. The region has committed to reducing carbon emissions in recent years to achieve a sustainable future but, according to the International Energy Agency, only Thailand and Singapore have mandatory building codes to limit the impact of buildings on the environment, and all other countries in SEA have only voluntary codes or no current codes in place.

We anticipate that the SEA region requires additional carbon reduction measures are put in place as soon as possible and believe the built environment could certainly play a major role in the reduction of carbon emissions.

Ikea, South Korea

Carbon Management United Kingdom

Carbon dioxide emitted from our operations in Holywell, Sherburn and Walsall collectively for 2012, 2013 and 2014 was 11,147 tCO2, 12,883 tCO2 and 5,719 tCO2 respectively. Significant efforts have been made at our three UK sites to reduce carbon emissions as historically UK operations have been the most carbon intensive. Both Holywell and Sherburn have Energy Performance Contracts in place saving approximately 101 tCO2 and 1,165 tCO2 emissions respectively in 2013. These savings are dynamic as they are dependent on our energy procurement strategies.

The UK in general has committed to a low carbon economy, most notably implementing a strategy to tackle climate change as outlined by ‘The UK Low Carbon Transition Plan’. It has also committed to reducing carbon emissions by 34% by 2020 and by at least 80% by 2050, as stated in the 2008 Climate Change Act.

According to The Carbon Brief, UK carbon emissions rose in 2012 but fell by 2.3% and 9.2% for 2013 and 2014 respectively. In addition to this, the UK has introduced the Energy Savings Opportunity Scheme (ESOS) which will be implemented in 2015 in an attempt to reduce energy consumption. Our products and solutions continue to be very attractive to businesses who seek to reduce energy consumption and designers who want to gain or exceed compliance to Part L or Section 6 of the Building Regulations.

Blue Planet building near Newcastle-under-Lyme, North Staffordshire (Images courtesy of Gazeley)

Kingspan Ltd, Holywell

Kingspan Ltd, Malton, Sherburn

Kingspan Ltd, Walsall, Birmingham



Carbon Management United Arab Emirates

With a significant increase in production from 2013 to 2014 and future plans to reduce carbon emissions, our operations in Dubai accounted for 261 tCO2, 448 tCO2 and 603 tCO2 for 2012, 2013 and 2014 respectively.

The UAE building stock is subject to potential improvement primarily because of its reliance on fossil fuels to run cooling systems all year round. In recent years, the UAE has committed to reducing carbon emissions and has introduced a number of programmes to address the global megatrend of climate change. For example the Emirates Energy Star programme was introduced to help buildings reduce their impact on the environment and in 2013 the UAE introduced its Energy Efficient Lighting Standard. The Environmental Assessment procedure, Estidama, is widely used in the UAE while much emphasis is put on the Dubai Carbon Centre of Excellence (DCCE) to establish ways to reduce carbon emissions.

According to the UAE National Strategy 2021, the Ministry of Energy should lead the efforts to reduce carbon emissions by 15% by 2021. We are keen to make a big contribution to the efforts been made by the UAE to become more carbon efficient by providing products and solutions that reduce the carbon footprint of buildings in the region.

Emirates Engine Maintenance Centre, Dubai

Waiting for picture for Ikea South Korea - Andy Patel

Kingspan Insulated Panels LLC, Dubai


Carbon Management Summary

[GRI EN18]

Initiatives to reduce greenhouse gas emissions and reductions achieved.

It can be seen that in some cases substantial carbon savings have been made in our facilities but in other facilities, the savings are not as favourable. The reason for an increase in carbon emissions in some facilities is because of an increase in production and where energy efficiency improvements are still ongoing.

20122011 2013 2014

Carbon Emissions by Site (tonnes)

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2000

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6000

7000

Kingscourt Ireland

Tonn

es o

f CO

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Holywell UK

SherburnUK

WalsallUK

LeuzeBelgium

St. MarysAustralia

RigidalDubai

DunkerqueFrance

PerpignanFrance

BavikhoveBelgium


Carbon Management Opus Business Park Case Study

The key requirement for the project was that the building should be both eye-catching and modern, while still attaining excellent levels of energy efficiency.

Our complete building envelope solutions included insulated wall and roof panels, façade systems, roof mounted PV modules and height safety systems, made this possible. The building is not only aesthetically pleasing, it also achieved a BREEAM ‘Excellent’ rating.

“The Kingspan roof and architectural wall panels not only deliver high levels of thermal performance, but also have low environmental impact and give the building a stand-out aesthetic which is completed with their flashings.” David Railton, Construction Director, Artisan.

Location: Peterborough, UK

Project Type: Office Building, New Build

BREEAM rating: ‘Excellent’

Products used:

Kingspan Lo-Pitch Roof Panel

Kingspan Architectural Wall Panels, Mini-Micro and Louvre

Kingspan Energy Roof Mounted PV System

BENCHMARK Karrier Engineered Façade System with ACM and Aluminium Recess-Fixed Cassettes

Kingspan Flashings

Kingspan Safetraxx Fall Protection System

Opus Business Park, Peterborough, UK

BREEAM 'Excellent' rating

“The Kingspan roof and architectural

wall panels not only deliver high levels of thermal

performance, but also have low environmental impact and give the building a stand-out aesthetic which is completed

with their flashings.”

David Railton, Construction Director, Artisan


Pollution

Water



Pollution

Waste


Optimised Use of Resources Pollution, Water & Waste

As global leader in the supply of solutions for high performance buildings, we acknowledge the impact our products and operations have on natural resources. It is therefore our responsibility to minimise any potential impacts and use materials responsibly.

Although our products and solutions may have resource implications throughout manufacturing, distribution, use and end-of-life, the greatest opportunity to minimise these implications is during manufacturing. Therefore, it is a recurring activity in all operations to continuously test and implement ways to minimise waste, water usage and harmful emissions.


WaterAs a proportion of inputs into our operations, water is small compared to other resources. However, it is a precious natural resource that we manage the same way we manage all our raw materials. Our primary water use results from general catering and sanitary purposes at our sites. The total amount of water used during the reporting period was 45,353m3. Rainwater harvesting accounted for 4% of all water use over the same period. This is expected to rise when intended rainwater harvesting systems are installed in the coming years.

PollutionAny spills over 20kg are considered significant. During the reporting period, significant spills were recorded. All but one spill occurred when pouring contents into an intermediate bulk container (IBC), the remaining when a fork lift truck hit and punctured an IBC. All spills were captured in the confined bunded areas and processes were put in place to avoid similar spillages happening again.

WasteWaste reduction is significantly beneficial as it reduces environmental impacts and cost implications. Waste is addressed by our ISO 14001 Environmental Management System as part of our continuous process to ‘reduce, reuse, recycle’. Thanks to significant efforts in this area we are delighted to be a ‘zero waste to landfill’ company across the UK and Ireland in Sherburn, Holywell, Walsall and Kingscourt. Other operations outside the UK are following similar lines of procedure to adhere to our strategy to eliminate all waste sent to landfill.

One of our key measures is the recycling of steel, paper, cardboard, wood and plastic. During the reporting period, a total of 32,147 tonnes of materials were recycled. In addition to this, we offer customers a full pallet return service to our UK sites and also recycle all our packaging from construction sites. The rise in waste sent to landfill outside of the UK is primarily attributable to two acquisitions at the end of 2012. In fact, 68% of waste sent to landfill in 2013 was generated by acquisitions in 2012. We will implement processes of waste reduction, reuse and recycling into the acquired companies over the coming years.

Spills 2012 2013 2014No. of Spills >20kg 1 3 2Total Volume Spills (kg) 800 2938 1,100

Total water by source (m3) 2012 2013 2014 Ground water* 964 975 974Rainwater** 0 798 984Municipal water supplies 9,319 14,761 16,578Total water consumption 10,283 16,534 18,536

* Water taken from Kingspan-owned well ** Rainwater harvested from Kingspan sites

Waste (Tonnes) 2012 2013 2014Weight of Waste - Landfill 563 1,400 1,096Weight of Waste - Incinerated without energy recovery 110 0 81

Weight of Waste - Recycled 10,796 10,856 10,495Total Weight of Waste 11,469 12,255 11,672 [GRI EN8]

Total water withdrawal by source.

[GRI EN22]

Total weight of waste by type and disposal method.

[GRI EN23]Total number and volume of significant

spills.

We are delighted to be a

‘zero waste to landfill’ company across the

UK and Ireland in Sherburn, Holywell,

Walsall and Kingscourt


Kingspan Store of the

Future

Route to Net-Zero Energy

Buildings




Kingspan Store of the

Future

Green Building Councils



Sustainable Building Design Introduction

Buildings are at the centre of our lives; this is where we spend approximately 90% of our time. The characteristics of a building; its design, comfort and its technical standards not only influence our productivity, our wellbeing, our moods and our interactions with others, they also define how much energy is consumed in and by a building and how much heating, ventilation and air conditioning is needed to create a pleasant environment.

The world’s buildings account for approximately 40% of total primary energy demand. These buildings will be in existence for many years to come therefore it is essential to the world’s population that they are designed with the intent to reduce embodied energy, lifetime energy consumption and energy associated with deconstruction, to ensure minimum environmental impact.

We believe that the predicted energy consumption of buildings must be reduced to a minimum for the benefit of stakeholders and the economy. As electricity and gas prices are set to rise and many economies are net importers of energy, it is essential that designers are encouraged to reduce to a minimum the amount of energy their buildings consume.

Interestingly, the Energy Performance of Buildings Directive (Directive 2010/31/EU) requires that member states shall ensure that by 31st December 2020 all new buildings are nearly zero energy and buildings owned by public authorities are nearly zero energy by 31st December 2018.

Buildings designed with Cost Optimal Energy Saving Building Solutions provide many compelling advantages to the different property stakeholders: they consume less energy, they emit less carbon dioxide, their value is enhanced and they are environmentally responsible over their lifetime. There is a perception however that these types of buildings carry substantial capital cost premiums.

Our approach can deliver minimum capital and lifetime operation costs for buildings.

Less Capital Cost

Higher Return on Investment

Higher Rental Income

Enhanced Green Building

Ratings

Reduced Heating and

Cooling Loads Lower Lifetime

Operating Costs

Building designs that reduce both whole building capital cost and life cycle operational cost.

Kingspan Cost Optimal Energy Saving Building Solutions



Step 1EnvelopeFirst & Optimised Services

Step 2Insulate & Generate

Kingspan’s Route to Net-Zero Energy BuildingsThree Step Process

Sustainable Building Design Route to Net-Zero Energy Buildings

We have now entered into an era of energy efficiency

and financial returns, where energy saving

buildings are designed, constructed, operated and maintained with

minimal cost

In order to achieve a cost optimal energy saving building design it is essential that annual energy consumption is minimised before incorporating low or zero carbon technologies. By applying our Route to Net-Zero Energy process it is possible to achieve a Cost Optimal Energy Saving Building Solution.

The Route to Net-Zero Energy comprises three steps:

STEP 1 - EnvelopeFirst & Optimised Building Services - optimises the insulation, airtightness, heat loss/gain and daylight design of the building envelope for its intended life, while also ensuring building services are geared to energy efficient operation.

STEP 2 - Insulate & Generate - Low or Zero Carbon Technologies - introduces additional enhancements to the building envelope and/or internal duct/pipework and adds low or zero carbon or renewable energy technologies to further reduce its overall energy footprint.

STEP 3 - Net-Zero Energy Buildings (NZEBs) - ensures that the overall annual performance of the building balances out. This usually involves enhancing the low or zero carbon or renewable energy technologies already incorporated in the building and may require investment in off-site energy saving

schemes called ‘allowable solutions’ in the UK.

Step 2Insulate & Generate

Step 3Net-Zero Energy Buildings

We promote holistic design throughout the design process.

Holistic building design concentrates on the design of the whole building rather than just focusing on a specific area, such as the design of the building envelope only. It is essential that various elements of a building are designed in parallel to minimise unnecessary energy consumption over the building’s life cycle.


Sustainable Building Design Environmental Assessment Methods

BREEAM New Construction UK 2014

A recent analysis has shown that our products and solutions

can positively impact and contribute up to 50% of a

BREEAM Assessment. Details are shown on the right.

With the ever-growing demand for sustainable

building designs, the uplift in Environmental Assessment Methods

(EAMs) during 2013 and 2014 has been

phenomenal. In general, EAMs help clients

measure and reduce the environmental impacts

of their buildings and in doing so create higher

value, lower risk assets.

Kingspan Insulated Panels Potential Contribution

Categories and available credits

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Ene 01: Reduction of energy use and carbon emissions

Ene 02: Energy monitoring

Ene 03: External lighting

Ene 04: Low carbon design

Ene 05: Energy efficient cold storage

Ene 06: Energy efficient transportation systems

Ene 07: Energy efficient laboratory systems

Ene 08: Energy efficient equipment

Ene 09: Drying space

Mat 01: Life cycle impacts

Mat 02: Hard landscaping and boundary protection

Mat 03: Responsible sourcing of materials

Mat 04: Insulation

Mat 05: Designing for durability and resilience

Mat 06: Material efficiency

Wst 01: Construction waste management

Wst 02: Recycled aggregates

Wst 03: Operational waste

Wst 04: Speculative floor and ceiling finishes

Wst 05: Adaptation to climate change

Wst 06: Functional adaptability

Hea 01: Visual comfort

Hea 02: Indoor air quality

Hea 03: Safe containment in laboratories

Hea 04: Thermal comfort

Hea 05: Acoustic performance

Hea 06: Safety and security

Man 01: Project brief and design

Man 02: Life cycle cost and service life planning

Man 03: Responsible construction practices

Man 04: Commissioning and handover

Man 05: Aftercare

Tra 01: Public transport accessibility

Tra 02: Proximity to amenities

Tra 03: Cyclist facilities

Tra 04: Maximum car parking capacity

Tra 05: Travel plan

We have paid particular

attention to the increased implementation of

Environmental Assessment Methods around the globe

and, for this purpose we have identified the areas to which

our products and solutions can

contribute




Categories and available credits continued

Wat 01: Water consumption

Wat 02: Water monitoring

Wat 03: Water leak detection

Wat 04: Water efficient equipment

LE 01: Site selection

LE 02: Ecological value of site and protection of ecological features

LE 03: Minimising impact on existing site ecology

LE 04: Enhancing site ecology

LE 05: Long term impact on biodiversity

Pol 01: Impact of refrigerants

Pol 02: NOx emissions

Pol 03: Surface water run off

Pol 04: Reduction of night time light pollution

Pol 05: Reduction of noise pollution

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LEED V4Our products and solutions

can also have a positive impact on LEED Version 4 -

helping achieve up to a total of 56 available points in the

assessment procedure. Details are shown on the right.

Categories and available pointsFundamental commissioning and verification

Optimise energy performance

Building-level energy metering

Fundamental refrigerant management

Enhanced commissioning

Advanced energy metering

Demand response

Renewable energy production

Enhanced refrigerant management

Green power and carbon offsets

Site development - protect or restore habitat

Open space

Rainwater management

Heat island effect

Light pollution reduction

Storage and collection of recyclables

Construction and demolition waste management planning

Building life-cycle impact reduction

Building product disclosure and optimisation - Environmental Product Declarations

Building product disclosure and optimisation - sourcing of raw materials

Building product disclosure and optimisation - material ingredients

Construction and demolition waste management

Minimum IAQ performance

Environmental tobacco smoke control

Enhanced IAQ strategies

Low-emitting materials

Construction IAQ management

IAQ assessment

Thermal comfort

Interior lighting

Daylight

Quality views

Acoustic performance

Outdoor water use reduction

Indoor water use reduction

Building-level water metering

Cooling tower water use

Water meter

Innovation

LEED accredited professional

Regional priority

Integrated process

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Innovation

Regional PriorityKingspan Insulated Panels

Potential Contribution


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Categories and available points


Green StarOur products and solutions can positively contribute up to 20% of the available points within a

Green Star assessment. Details are shown on the right.


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15-A.0: Greenhouse Gas Emissions - Conditional Requirement: Performance Pathway

15-A.1: - Performance Pathway: Comparison to a Reference Building

16.1-B: Peak Electricity Demand Reduction - Reference Building Pathway

19.A.1: Life Cycle Impacts - Comparative Life Cycle Assessment

19.A.2: - Additional Life Cycle Impact Reporting

20.1: Responsible Building Materials - Responsible Steel Maker and Fabricator

20.2: - Timber

20.3: - Cables, pipes, floors and blinds

21.1: Sustainable Products - Sustainable Products

Blue 22.1: Construction and Demolition Waste - Reduction of Construction and Demolition Waste

9.1: Quality of Indoor Air - Ventilation System Attributes

9.2: - Provision of Outside Air

9.3: - Exhaust or Elimination of Pollutants

10.1: Acoustic Comfort - Internal Noise Levels

10.2: - Reverberation

10.3: - Enclosed Spaces

11: Lighting Comfort - Minimum Lighting Comfort

11.1: - General Illuminance and Glare Reduction

11.2: - Localised control

11.3: - Surface Illuminance

12: Visual Comfort - Glare Reduction

12.1: - Daylight

12.2: - Views

13.1: Reduced Exposure to Pollutants - Paints, adhesives, sealants and carpets

13.2: - Engineered wood products

14.1: Thermal Comfort - Thermal Comfort

14.2: - Advanced Thermal Comfort

1.1: Green Star AP - Accredited Professional

2: Commissioning and Tuning - Environmental Modelled Targets

2.1: - Services and Maintainability Review

2.2: - Building Commissioning

2.3: - Building Systems Tuning

2.4: - Independent Commissioning Agent

3.1: Adaptation and Resilience - Implementation of a Climate Adaptation Plan

4.1: Building Information - Building Operations and Maintenance Information

4.2: - Building User Information

5.1: Commitment to Performance - Environmental Building Reporting

5.2: - End of Life Waste Management

6: Metering and Monitoring - Metering Strategy

6.1: - Monitoring Strategy

7: Construction Environmental Management - Environmental Management Plan

7.1: - Formalised Environmental Management System

8.1: Operational Waste - Waste in Operations


Categories and available points continued

17-A.1: Sustainable Transport - Modelled Pathway

18-A.1: Potable Water - Potable Water- Modelled Pathway

23: Ecological Value - Endangered, Threatened or Vulnerable Species

23.1: - Ecological Value

24: Sustainable Sites - Conditional Requirement

24.1: - Reuse of Land

24.2: - Best Practice Site Remediation

25.1: Heat Island Effect - Heat Island Effect Reduction

26.1: Stormwater - Peak Discharge To Sewer

26.2: - Pollution Targets

27: Light Pollution - Light Pollution to Neighbouring Properties

27.1: - Light Pollution to Night Sky

28.1: Microbial Control - Microbial Control

29.1: Refrigerant Impacts - Refrigerant Impacts

30.A: Innovative Technology or Process - Innovative Technology or Process

30.B: Market Transformation - Market Transformation

30.C: Improving on Green Star Benchmarks - Improving on Green Star Benchmarks

30.D: Innovation Challenge - Innovation Challenge

30.E: Global Sustainability - Global Sustainability

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EstidamaOur products and solutions

help contribute up to 32% of the total available credit points in Estidama. Details are shown

on the right.

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RE-R1: Minimum Energy Performance

RE-R2: Energy Monitoring & Reporting

RE-R3: Ozone Impacts of Refrigerants & Fire Suppression Systems

RE-1: Improved Energy Performance

RE-2: Cool Building Strategies

RE-3: Energy Efficient Appliances

RE-4: Vertical Transportation

RE-5: Peak Load Reduction

RE-6: Renewable Energy

RE-7: Global Warming Impacts of Refrigerants & Fire Suppression Systems

SM-R1: Hazardous Materials Elimination

SM-R2: Basic Construction Waste Management

SM-R3: Basic Operational Waste Management

SM-1: Non-Polluting Materials

SM-2: Design for Materials Reduction

SM-3: Design for Flexibility & Adaptability

SM-4: Design for Disassembly

SM-5: Modular Flooring Systems

SM-6: Design for Durability

SM-7: Building Reuse

SM-8: Material Reuse

SM-9: Regional Materials

SM-10: Recycled Materials

SM-11: Rapidly Renewable Materials

SM-12: Reused or Certified Timber

SM-13: Improved Construction Waste Management

SM-14: Improved Operational Waste Management

SM-15: Organic Waste Management

LBO-R1: Plan 2030

LBO-R2: Urban Systems Assessment

LBO-R3: Outdoor Thermal Comfort Strategy

LBO-1: Improved Outdoor Thermal Comfort

LBO-2: Pearl Rated Communities

LBO-3: Accessible Community Facilities

LBO-4: Active Urban Environments

LBO-5: Private Outdoor Space

LBO-6: Public Transport

LBO-7: Bicycle Facilities

LBO-8: Preferred Car Parking Spaces

LBO-9: Travel Plan

LBO-10: Light Pollution Reduction

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Categories and available credit points



LBi-R1: Healthy Ventilation Delivery

LBi-R2: Smoking Control

LBi-R3: Legionella Prevention

LBi-1: Ventilation Quality

LBi-2.1: Material Emissions : Adhesives & Sealants

LBi-2.2: Material Emissions : Paints & Coatings

LBi-2.3: Material Emissions: Carpet & Hard Flooring

LBi-2.4: Material Emissions : Ceiling Systems

LBi-2.5: Material Emissions : Formaldehyde Reduction

LBi-3: Construction Indoor Air Quality Management

LBi-4: Car Park Air Quality Management

LBi-5.1: Thermal Comfort & Controls : Thermal Zoning

LBi-5.2: Thermal Comfort & Controls : Occupant Control

LBi-5.3: Thermal Comfort & Controls : Thermal Comfort Modelling

LBi-6: High Frequency Lighting

LBi-7: Daylight & Glare

LBi-8: Views

LBi-9: Indoor Noise Pollution

LBi-10: Safe & Secure Environment

PW-R1: Minimum Interior Water Use Reduction

PW-R2: Exterior Water Monitoring

PW-1: Improved Interior Water Use Reduction

PW-2.1: Exterior Water Use Reduction: Landscaping

PW-2.2: Exterior Water Use Reduction: Heat Rejection

PW-2.3: Exterior Water Use Reduction: Water Features

PW-3: Water Monitoring & Leak Detection

PW-4: Stormwater

NS-R1: Natural Systems Assessment

NS-R2: Natural Systems Protection

NS-R3: Natural Systems Design & Management Strategy

NS-1: Reuse of Land

NS-2: Remediation of Contaminated Land

NS-3: Ecological Enhancement

NS-4: Habitat Creation & Restoration

IDP-R1: Integrated Devel opment Strategy

IDP-R2: Tenant Fit-Out Design & Construction Guide

IDP-R3: Basic Commissioning

IDP-1: Life Cycle Costing

IDP-2: Guest Worker Accommodation

IDP-3: Construction Environmental Management

IDP-4: Building Envelope Verification

IDP-5: Re-Commissioning

IDP-6: Sustainability Communication

IP-1: Innovative Cultural & Regional Practices

IP-2: Innovating Practice

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Sustainable Building Design AECOM United Kingdom

The calculations were based on four different building types: A retail warehouse, a speculative office, a large supermarket and a distribution warehouse in three locations: London, Manchester and Newcastle.

Each scenario was calculated using our three step process; EnvelopeFirst & Optimised Building Services, Insulate & Generate and Net-Zero Energy Buildings.

Having applied the envelope, a building specification was assigned based on cost-effectiveness (applying the most cost-effective changes first) to develop the capital cost model. Then a lifetime operational cost is calculated based on energy consumption and predicted fuel prices. This is repeated for a range of scenarios.

It is then possible to identify the financial benefits of various building specifications over others in terms of Net-Present Value (NPV), Return on Investment (ROI) and Internal Rate of Return (IRR).

The research proved that by using a multi-disciplinary, collaborative approach it is possible to design more accurately, more efficiently and at minimum cost. For example, enhancing building envelopes provides the opportunity to downsize internal building services. Often this reduces the capital cost for the whole building when costs associated with the reduced plant size outweigh the costs associated with the enhanced envelope.

The research proved that by using a multi-disciplinary

collaborative approach it is possible to design more accurately, more

efficiently and at minimum

cost

We have carried out extensive

research, in conjunction with AECOM, to identify the positive impact of

more thermally efficient building envelopes

for buildings in various parts of

the UK

Retail Warehouse

Distribution Warehouse

Supermarket

Holistic Building Design Methodology


Select building type, location and

orientation

Develop thermal model

Rank building improvements

in order of cost-effectiveness

Identify Cost Optimal Energy Saving Building

Solution

Develop capital cost

model

Develop whole life

cost model

Develop models for each of the 54 scenarios:

3 locations 6 carbon targets

3 envelope standards

Office

Download the document from: http://www.kingspanpanels.co.uk/why-kingspan/value-proposition/

Sustainable Building Design Cundall Australia and New Zealand

The objective of the analysis was to determine the outcomes of energy modelling which compares our high performance insulated panels with alternative wall and roof construction systems.

The comparison undertaken involves the energy consumption of the heating, ventilation and air conditioning (HVAC) system for three different building types (retail store, education and office) in eight locations (Sydney, Melbourne, Brisbane, Adelaide, Perth, Auckland, Christchurch and Wellington). Our high performance insulated panels have higher R-values compared to standard building envelopes of the same thickness; the R-value reduces heat flow and therefore has an impact on space temperatures and air conditioning loads. Our insulated panels also provide a lower infiltration rate, or air leakage. Preventing air leakage provides a higher degree of control to the space, allowing HVAC systems to be optimised.

Four building specifications were modelled for each location, these were as follows:

1. Building Code Compliant – conventional insulation methods, performing to NCC standard with a HVAC system comprising of standard efficiency.

2. Kingspan Base Case – our insulated panels to comply with NCC with a HVAC system comprising of standard efficiency.

3. Envelope First - our insulated panels to comply with NCC with an optimised HVAC system.

4. Insulate & Generate - our insulated panels to comply with NCC with an optimised HVAC system and a Kingspan Energy rooftop solar PV solution.

The analysis seeked to find benefits of our products and solutions by quantifying the reduction of HVAC size due to thermal performance and airtightness improvements, the operational cost saving over the lifespan of the building and the reduction of lifetime carbon emissions. The analysis also included our Kingspan Energy rooftop solar PV solution which reduces reliance on energy from the grid and risks associated with increased energy pricing.

Findings to date include: � Capital savings in HVAC � Lifetime operational energy and cost saving� Peak load reduction � Lifetime carbon emissions saving� PV capital cost & payback� Cost comparison on construction methods� Return on Investment� Net Present Value� Internal Rate of Return

For more information please contact our marketing department on: +61 (0) 2 8889 3000.

In 2013, we commenced work with

Cundall in Australia to carry out extensive

research to determine the advantages of enhanced building envelopes in the

Australian and New Zealand

markets




Sustainable Building Design THERMALsafe Door Research

In 2014, our door components business launched new sectional THERMALsafe doors with improved thermal performance and airtightness. The newly-developed technology achieves on average a 20% improvement in thermal efficiency (heat transfer) and a 300% air leakage improvement when compared to a standard sectional door. To outline the benefits of the new and innovative sectional doors we carried out research into the potential energy and carbon savings when our THERMALsafe doors are incorporated into a building design.

Thermal analysis was carried out by modelling an industrial building located in the south of France. Standard building services were used in the analysis while the following variables changed in order to calculate the energy and carbon savings;

In addition, an air leakage of 3 m3/hr/m2 at 50Pa (Class 4) was applied to the building with our THERMALsafe doors whereas 12 m3/hr/m2 at 50 Pa (Class 2) was applied to the standard building.

By comparing both models, it was evident that significant energy and carbon savings can be achieved as outlined below for this specific analysis;

Energy Saving: 23,236 kWh per year;

Carbon Saving: 4.798 tCO2 per year.

Door Standard Kingspan Number of Dimension Industrial THERMALsafe Doors (m) U-value (W/m2K) U-value (W/m2K)

7 3 x 3 1.14 0.84 1 5 x 3 1.04 0.77 1 5 x 4 0.97 0.76


Sustainable Building Design Thermal Bridging Research

HVAC systems are designed based upon the thermal efficiency of the building envelope. The thermal efficiency of a building envelope includes consideration for U-Values, Psi Values and solar gain from rooflights or windows.

It is understood that project specific Psi values are not always calculated at design stage. It was found that, most of the time, these values were left as worst case scenarios and therefore often resulting in oversized HVAC systems which leads to very capital-intensive systems.

In 2014, we carried out thermal modelling to identify the benefits of our robust construction details over default Psi values, within thermal modelling softwares currently used in the UK.

We acknowledge that construction details are a fundamental part of a sustainable design and that it is essential to limit heat transfer at design stage, to ensure energy consumption is minimised for the lifetime of the building.

In addition we have proven that by opting for our calculated Psi Values, the actual heat transfer through the whole building envelope is reduced, therefore downsizing the internal HVAC system. This, in turn, simply reduces the cost of the internal building services, by not needlessly oversizing the system and also reduces the predicted energy consumption over the lifetime of the building.

The study found that by using our calculated Psi Values it is possible to reduce annual regulated energy consumption associated to heating the four different building types as outlined below:

Warehouse Office School Retail Warehouse 17% 55% 36% 14%

Psi Values W/mK - Metal Cladding

Notional Kingspan Software Building Calculated Default AD-PL2A Psi Typical Psi Psi Values Values Values (W/m.K) (W/m.K) (W/m.K) Roof - wall 0.42 0.28 0.10 Wall - ground floor 1.73 1.00 0.33 Wall - wall 0.38 0.20 0.004 Wall - floor (not ground) 0.04 0.00 0.00 Lintel above window/door 1.91 1.00 0.48 Sill below window 1.91 0.95 0.06 Jamb at window/door 1.91 0.95 0.03


Sustainable Building Design Kingspan Store of the Future

Although Passivhaus design is usually associated with domestic dwellings in an attempt to limit the amount of energy consumption and carbon emissions from buildings, its principles can also be used for the design of non-domestic buildings.

Passivhaus is a performance-based ‘energy’ assessment. The following targets define the standard that needs to be met in order for certification to be achieved:

Specific Heating Demand ≤ 15kWh/m2.yr;

(or) Specific Heating Load ≤ 10W/m2;

Specific Cooling Demand ≤ 15kWh/m2.yr;

Specific Primary Energy Demand ≤ 120kWh/m2.yr.

In order to achieve the above parameters, specific guidelines are recommended, such as:

All opaque thermal construction elements (external walls, floors and roofs) should have U-values ≤ 0.15W/m²K;

All significant thermal bridges should be designed out: in Passivhaus, this is considered to be a Psi Value of ≤ 0.01W/m²K;

Also the airtightness must achieve a test result of ≤0.6ACH/hr at 50 Pa.

In 2014, we commenced the development of a retail supermarket design based upon Passivhaus principles. The supermarket has been developed to generically suit climate zones throughout the globe with different building specifications, with indicative capital costs and operating costs outlined.

The extremely energy-efficient design, based on a 35,000ft2 net floor area supermarket, allows clients to reduce a significant overhead in terms of energy costs. Traditionally supermarkets were extremely energy intensive buildings, with huge carbon footprints.

Our innovative three step holistic design process of EnvelopeFirst & Optimised Building Services, Insulate & Generate and Net-Zero Energy Buildings, underpinned by Passivhaus design principles, enable the design, the construction and the operation of highly efficient supermarket buildings. For more information on our store of the future concept please visit www.kingspanpanels.co.uk


Kingspan Store of the Future Design Sketches

Stakeholder’s Overview

Customer Support



Stakeholder’s Overview

Employee Engagement



Stakeholder Engagement Stakeholder’s Overview

We predominantly supply products and solutions directly to roofing and cladding contractors, who are responsible for installation on-site. We also consider property owners, developers, architects and end users, who own, design and occupy buildings, as key stakeholders, ensuring we are responsive to their needs.

As well as engaging directly with them, we are active within a variety of formal and informal networks, such as EPIC, EuroACE, EUASE and Green Building Councils through which we keep abreast of our stakeholder needs.

We are actively involved on the Green Building Councils of Australia, the Netherlands, New Zealand, Ireland and United Kingdom. We also continue to support efforts to improve the energy performance of existing and new buildings in host countries via evidence-based energy efficiency policies and measures.

[GRI SO5]Public policy positions and participation in

public policy development and lobbying.

1. EuroACE; European Alliance of Companies for Energy Efficiency in Buildings.2. EPIC; Engineered Panels in Construction3. HSE: Health and Safety Executive4. DCLG; Department of Communities and Local Government5. DECC; Department of Energy and Climate Change

Overview of our Stakeholders and how we engage with them

Building Owners & DevelopersRegularly updated and informed of our products and services through literature, presentations, eNewsletters, meetings, CPD seminars and focus groups.

Industry BodiesFounding members of the UK Green Building Council, EuroAce1 Board member, Chair of EPIC2 and member of trade associations as shown below.

Communities local to our sitesLocal education programmes, contributions to local press, participation in and financial contribution to locally-based charities.

Customers (i.e. Contractors)Bi-annual customer surveys, regular customer days, focus groups, technical training.

Architects & DesignersRegularly updated and informed of our products and services through literature, presentations, eNewsletters, regular meetings, CPD seminars, focus groups and customer days.

EmployeesEmployee training, annual staff appraisals, work councils.

Governments / RegulatorsDirect contacts with the HSE3, DCLG4 and DECC5, consultation responses.

SuppliersMonitoring of top 10 strategic suppliers, approved suppliers list, regular meetings.

End UsersInformed of our products and services through literature, presentations, regular meetings, focus groups.



Stakeholder Engagement Stakeholder’s Update and Development

Our sales team and our Envirocare Technical Services team run a number of Continuous Professional Development (CPD) sessions on a regular basis, ensuring architects and designers are kept up-to-date with our offering and industry changes that will affect their work.

As a thought-leader, we ensure that all internal and external topics relevant to our key stakeholders have been communicated promptly through the various channels of communication, such as literature, presentations, eNewsletters, social media, blogs and websites.

Digital and social media channels are used more and more to ensure accurate and timely communication and also to reduce our carbon footprint.

[GRI PR7]Total number of incidents of non-compliance

with regulations and voluntary codes concerning marketing communications,

including advertising, promotion, and sponsorship by type of outcomes.

Blog explaining the changes in BREEAM UK New Construction 2014

Mechanical handling Training day

During the reporting period there were no incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship.

We continue to work closely with our customers on important issues such as the better management of site waste. We also promote methods to more efficiently dispose of and recycle packaging along with our pallet return service.

We have worked closely with many of our key customers on mechanical handling solutions. The use of mechanical handling plant and equipment can reduce the time spent working at height and the need to manually handle panels, dramatically accelerating build times and reducing health and safety risks posed on-site.


Stakeholder Engagement Customer Support

“The building envelope is critical for reducing building energy loads.

It is the starting point for energy efficient buildings and the main determinant

of the amount of energy required to heat, cool and

ventilate.”

Federal R&D Agenda for Net-Zero Energy,

High-Performance Green Buildings

Report, October 2008.

[GRI SO2]Percentage and total number of business

units analysed for risks related to corruption.

Geographical location

Building orientation

Building envelope

Demands (zones)

Cooling system

Lighting design

Holistic Building Design Inputs Alongside our high quality products and solutions, we also provide extensive support to customers. This support is intended to ensure that our products are correctly specified, installed and buildings are energy efficient and safe.

On an annual basis, all our business unit directors analyse their business units for corruption.

Design SupportOur Envirocare Technical Services teams throughout the division offer advice and assistance to design teams. The aim is to help with designing the most optimised building envelope systems, which are fit for purpose, safe, environmentally responsible and help reduce energy consumption and carbon emissions to a minimum.

Our holistic building design approach takes into account economic and environmental factors, by helping designers identify scenarios that displace the most energy and carbon for the least cost.

To help with the design process, at the beginning of 2014, we released BIM (Building Information Modelling) files for our core wall and roof products, marking the first stage in a commitment to roll out BIM across our entire product range. To ensure that the majority of BIM users can benefit from using them, we made them available in Autodesk Revit, Nemetschek Vectorworks, Bentley AECOsim, Graphisoft ArchiCAD and IFC file formats. They are all easily accessible from BIMstore on our website.

Over time, our valuable service offerings have helped design teams to identify holistic building specifications that are optimised and are more energy efficient, which has proven to be extremely valuable to decision makers.

Not only are we concerned about supplying the market with quality products, we aim to provide our end clients with quality solutions that perform, as designed, for the lifetime of the building.

Alongside our high quality products,

we also provide extensive support to customers.

This support is intended to ensure that our products are correctly specified, installed

and buildings are energy efficient and

safe


Some of the services we offer are;

Building Energy Modelling and carbon emissions calculations;

Regulation compliance calculations and advice;

Building Information Modelling assistance and advice;

Project specific specifications;

Attendance at design meetings;

Generation of construction details that best reduce heat flow;

Provision of finite element analysis (FEA) for junctions to deter mine Psi and f min values;

Solar air heating calculations: (Sol-Air product);

Structural advice regarding panel spans based on calculated loadings;

Solar Photovoltaic PV calculations;

Auxillary(fans, pumps,

etc)

Heating system

Lighting design

Hot water system

Low / zero carbon

technologies

Lighting design and energy demand calculations;

Wind load, snow load and fastener calculations;

Condensation risk analysis;

Thermal performance analysis and U-Value calculations;

Acoustic performance calculations;

Roof drainage calculations;

Building physics advice;

Construction detail(s) approval service;

Kingspan Guarantee guidance;

Support on fire / insurance related issues; and

Full product technical information support.

Envirocare Technical Services UK


Stakeholder Engagement Customer Support

Topdek training, Holywell, UK

Field Service SupportWe have a team of field service engineers, whose main objective is to ensure correct installation of our products. Training is essential to reduce risk and maintain quality of construction. Correct installation improves air tightness and life expectancy.

Our field service engineers provide contractors with necessary training in relation to the installation of products. Training is done through both theoretical and practical workshops, along with an on-going training scheme and the issuing of identification cards to certify training has been successfully completed.

Our Field Services Team also carries out site visits during construction to ensure quality installation and issue reports upon request.

Customer ServiceCustomers are at the heart of everything we do. It is our pursuit of continued excellence in Customer Service which drives performance and improvement.

Across our division we have teams of Customer Service representatives. Each department sees an order right through from start to finish, including dealing with transportation and after-sales care.

The various challenges found across the globe in terms of culture, pace and expectations are met with the same ‘Customer First’ approach, with confidentiality in mind. Best quality is always the benchmark and the focus is firmly on exceeding customer expectation.

Kingspan Day-Lite Vault training, Holywell, UKUK Quotations team

Quotations Every market we operate in is serviced by a Quotations Department. Our Quotations Departments issue specific quotations to customers. Each team member also provides efficient and timely advice and assistance in relation to product pricing, available colours, etc.

Number of customers trained on product use and installation 2012 2013 2014UK and Ireland 593 561 787Benelux 70 65 75Australasia 390 372 332Total (division) 1,053 998 1,194

Number of internal staff trained on product use/installation 2012 2013 2014Division 40 114 54

Number of site visits 2012 2013 2014Division 711 651 730

Customers are at the heart

of everything that we do. It is the pursuit

of continued excellence in Customer Service

which drives performance and

improvement


Customer Service Team

With best performance in mind, monthly customer surveys are conducted by telephone. Using a scoring system, the survey questionnaire covers many areas including delivery and quality, complaint handling, documentation quality and staff service. The target is to achieve 98% satisfaction. The results are presented and discussed at management team meetings.

[GRI PR5]Practices related to customer satisfaction,

including results of surveys measuring customer satisfaction.

Average Monthly Satisfaction Percentage

100

95

90

85

80

75

70

65

60

55

50

%

2013 20142011 2012


Stakeholder Engagement Employee Engagement

In general, our employees work in a high discretion environment which facilitates intrinsic rewards. Work is allocated to the various departments, but is not fragmented, encouraging employees’ involvement and participation.

During the reporting period there were no incidents of discrimination and therefore no need for corrective action. However, if such an incident was to take place, we have a set procedure to take corrective action as outlined in the employee handbook, which is available upon request and given to every new employee.

Furthermore, during the reporting period there were no incidents of violation involving rights of indigenous people and therefore no action was taken. Embedded within our culture is respect for people and any violation of indigenous people is processed immediately with corrective action.

We also encourage innovation from ‘bottom up’ as well as ‘top down’ which gives employees a sense of belonging that enhances commitment and loyalty. Some employees have worked with us for over 30 years, primarily as a result of our work system and culture.

Employees in Holywell are given the opportunity to suggest various initiatives and ideas via our Partnership Forum. The forum consists of employee representatives that represent all employees who present and discuss elements such as: financial performance and remuneration; employee security; parking; internal vacancies; new products; bicycle rack facilities; fire security; dress policy; car-pooling; and Cycle to Work schemes.

A Cycle to Work scheme is currently in place for employees at our Holywell site in the UK, whereby they can benefit from a minimum of 25% discount on purchasing a bicycle for the purpose of cycling to work. This coincides with the installation of new shower facilities in Holywell to encourage employees to leave their car at home and embark upon a healthier mode of transport to and from work while also ‘doing their bit’ for the environment.

[GRI HR4]

Total number of incidents of discrimination and corrective actions taken.

[GRI HR9]

Total number of incidents of violations involving rights of indigenous people and

actions taken.


Car-pooling is encouraged to reduce carbon emissions from employees’ transport. In Holywell prizes are rewarded to car-pooling entrants on an annual basis. Those entering the lottery must car pool. Another successful initiative to help stimulate employee morale and help build relationships within the workforce in the UK is our social club. This is an initiative that was set up to arrange social outings for employees.

Our employees undergo training as and when needed. Currently managers are responsible for the correct training for their department. All employees are given the opportunity to discuss their individual training needs during their annual appraisal. During the reporting period training was also conducted on email efficiency and etiquette and Microsoft Office, Outlook, Powerpoint, Excel, and Word. Other training included; fire marshal training, anti-corruption training, apprenticeships, software training, first aid, effective meetings, conflict resolution, difficult conversations, communication skills, bullying and harassment, appraisal workshop and revitalisation.

A recent initiative to allow employees to better communicate and be more productive is the roll-out of video conferencing. We have established both Polycom and Microsoft Skype to encourage online meetings and therefore reduce the need to travel. This in turn reduces the amount of carbon emissions associated with transport.

No fatalities occurred during the reporting period.

It is our priority to reduce the number of accidents and the number of days lost to accidents in the future. Since the acquisition of ThyssenKrupp Construction Group we have implemented OHSAS 18001 in both Dunkirk and Perpignan and it is pending in Bavikhove.

[GRI LA1]Total workforce by employment type,

employment contract, and region, partially broken down by gender.

[GRI LA12]

Percentage of employees receiving regular performance and career development

reviews, by gender.

[KPI LA7]

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by

gender.

Full-time Part-time Management Year Permanent Permanent Temporary Positions Turnover2012 1,050 18 32 320 11.09%2013 1,502* 26 46 382 12.54%2014 1,504 25 49 404 11.00%

Accidents 2012 2013 2014Accident Incident Rate / 1000 People Employed 69.7 63.9 73.7

Total Reportable Number of Accidents 2012 2013 2014Total Reportable Accidents > 3 days 12 25 34 Absenteeism 2012 2013 2014Absenteeism (% of total employees) 3.4 3.9 4.0* Increase in employees due to acquisitions

Our employees receiving their reward for car pooling


Stakeholder Engagement Ethical Procurement and Supply Chain

[GRI EN2]Percentage of materials used that are

recycled input materials.

We require our suppliers to achieve appropriate levels of quality, speed, dependability, flexibility and cost.

We strive to have all of our suppliers accredited to ISO 9001, ISO 14001 and OHSAS 18001, which cover quality, environmental and health and safety management systems. Although this is not currently compulsory for suppliers, we have many longstanding relationships with them and as such they are either working towards their accreditation, or have already achieved it.

Our Holywell site in the UK, consisting of four manufacturing lines, is strategically located within close proximity to one of our steel suppliers. This reduces the distance steel has to be transported and therefore reduces carbon emissions associated with logistics.

We order raw materials in bulk and store them on-site prior to manufacture. Deliveries of materials arrive in full load quantities, maximising value for transportation and further reducing road miles and carbon emissions.

The steel used to manufacture of our insulated panels contains between 20-25% recycled material, meaning that the recycled content of our insulated panels by weight is typically between 14.5% to 17.5%.

Research into the colour and parameters of steel coatings has identified benefits in terms of sustainable design. Highly reflective internal coatings have a significant knock-on effect in terms of the efficiency of the lighting design, often reducing the amount of light fittings and lighting electrical energy consumption over the building’s lifetime. Similarly highly reflective external coatings reflect the sun’s heat, particularly in warm climates, such as Australia, the UAE and African markets, therefore reducing unwanted heat gain entering buildings.

We aim to manage our

procurement process in the most sustainable

way. We heavily engage with our suppliers to bring positive changes, always

welcoming new and innovative

ideas


The reduction of heat gain from high external temperatures reduces cooling requirements and therefore energy consumption.

By looking at market demands, we look for innovation through the supply chain. By sourcing materials locally and employing local companies, such as on-site electrical contractors or IT contractors, the company also supports local small to medium sized enterprises (SME’s).

Our primary logistics company in the UK is located within only one mile of our Holywell plant. This not only reduces the need for logistics to travel long distances to pick up loads, but also creates local employment.

In addition to raw materials, all our literature ordered in the UK is printed on paper sourced from 80% post-consumer waste with the remaining 20% fibre Totally Chlorine Free (TCF). In recognition, the range has been awarded both the NAPM and Eugropa recycled marks, two of the most prestigious certificates available. The entire process strictly adheres to the Forest Stewardship Council’s (FSC) chain of custody and the printing process is free of Volatile Organic Compounds (VOCs). All inks used are vegetable based, allowing documents to be recycled.


In the UK, we have a long relationship with BITC (Business in the Community), a well-recognised, independent, corporate responsibility organisation and we support many activities organised through this network.

One of these is the Give & Gain Day, a annual nationwide event, in which we have been taking part for the last five years. As part of this event, after months of planning, a team of our employees spends a full day working on the grounds of a local school, making it a better place for its pupils and teachers.

Stakeholder Engagement Community Investment and Engagement

We are highly committed to making positive impacts in the communities we operate by engaging with them and supporting local projects and charities. This involvement can be seen across all geographies. We form close links with local schools and community groups, including site visits and educational talks. There is also a company policy to source goods and services locally wherever possible.

Kingspan Give & Gain Day 2014, Flintshire’s Ysgol Merllyn Primary School


Since 2010, thanks to the hard work of around 50 employees and donations from ourselves and some of our suppliers, St Mary’s Flint, St Winefrides Holywell, Greenfield Primary, Ysgol Glan Aber Boot End and Flintshire’s Ysgol Merllyn Primary schools have been transformed.

On the day, the work usually starts at 6.00 am with the general clearance and tidy up of the school grounds. Then we prune or remove trees, re-plant flower beds and new trees, install benches, decking areas, canopies and gazebos and also create new play and learn areas for the pupils. The children also enjoy the day with bouncy castles, activities such as balloon modelling, face painting, a bird box painting competition, disco, wicked wild show and more!

We form close links with local

schools and community groups, including site visits and educational talks. There is also a

company policy to source goods and services

locally wherever possible


Stakeholder Engagement Community Investment & Engagement

DangerPoint Interactive Visitors Centre, Talacre, North Wales

Based in Talacre in North Wales, DangerPoint is an award winning interactive visitor centre which offers young children the opportunity to learn about safety. During the reporting period we sponsored the ‘building site scenario’ at the centre and have also supported a number of local schools in visiting the centre to receive the invaluable messages that are delivered during a structured tour. Paul McGowan, who is our Health & Safety Manager said, “We’ve been delighted to sponsor the ‘building site scenario’ and support local schools to send children to DangerPoint”.

We were very proud to be silver sponsors of the 2013 Rural & Industrial Design & Building Association (RIDBA) Farm and Agricultural Buildings (FAB) Awards at the Hilton Hotel in Bath.

Commemorating RIDBA’s 56th anniversary of its formation as the Farm Buildings Association, they decided to celebrate in style by holding a competition to recognise excellence in farm buildings. The first competition of its kind, it aims to recognise and reward contractors and clients who have taken the time and effort to ensure their new farm building is sympathetic to, and even complements, the local landscape, whilst ensuring it is fit for purpose and has been designed with sustainability in mind.


Another example of community engagement in the UK is the rebuilding of the sports pavilion for the Sherburn Sports Club. Honouring a long-standing commitment to help, we were one of the key funders for the project, donating and erecting our steel framing system on the site, as well as a composite roof panel solution and associated ancillaries. The facility, which opened in 2014, is now the hub of the village, hosting a number of junior and senior sporting teams, as well as providing a club and function room for the local community.

Honouring a long-standing

commitment to help, we were one of the key funders for the project, donating and

erecting our steel framing system, as well as a

composite roof panel solution and associated

ancillaries



Kingspan President’s Cup, Co. Cavan, September 2014

In September 2014, we sponsored the first ever President’s Cup that took place at Kinsale Yacht Club in Co. Cork, Ireland. The President’s Cup is an initiative of Sailability Ireland in conjunction with the Irish Sailing Association, as part of its mission to encourage sailors from all over Ireland to compete in the classes sailed at Paralympic and International level.

The event has been named in honour of 10-time Paralympian and current President of the International Federation for Disabled Sailing, John Twomey from Ballinhassig, Co. Cork.

Kevin Downing, President of Sailability Ireland, said “We are grateful to Kingspan. Without this vital support, we wouldn’t be able to run events like these, which play such an important role in developing Irish sailing talent of all ages. The Kingspan-supplied hats were particularly well received by all on the day.”


Every year, a number of our employees at our Holywell site in the UK, contribute their time and effort to participate in the Big Dee Day, whereby approximately 600 people from local businesses, community groups, schools and local authorities support the clean-up of the Dee Estuary in North Wales.

In the Netherlands we took part in NL Doet which encourages volunteering in local communities. A team of our employees refurbished a local primary school. Work included installing new ground tiles, painting and cleaning.

In addition to this, we also provided food at Christmas to less fortunate families and sponsored a child who was impacted during the Haiti earthquake.

We also contribute to events such as Viva La Donna day (supporting women with cancer), Archikidz (introduces children to sustainable buildings), Pre-Ride-Twente (a bike ride raising finance for welfare charities) and ColSensation (a bike ride raising funds for the Dutch Cancer Foundation).

The Dee Estuary has been designated as a Ramsar site under the Ramsar Convention of Wetlands of International Importance and as a Special Protection Area (SPA) under the EC Birds Directive. The site is of ecological significance due to its populations of internationally important wintering waterfowl and tern species and its intertidal mud and sandflats, salt marsh and transitional habitats.

As a result of our contribution between 2007 and 2013 we were awarded the inaugural Big Dee Day Business Award.


Team Jolly


For the last three years, we have been sponsoring olympic gold medal sailors from New Zealand Jo Aleh and Polly Powrie, known as Team Jolly.

Following their success in London in 2012, they went on winning many international titles, including the world title at La Rochelle, France in August 2013 as well as the ISAF sailing World Cup in Mallorca in March 2014.

The New Zealand team recently commented on the support it received from the company, “We have been lucky to have support from some amazing sponsors this year. Kingspan has helped us in a big way by sponsoring our new boat. It has made a huge difference for us and we have thoroughly enjoyed sailing the boat to a few victories this year!”

We also sponsored the North Canterbury Swim Club in New Zealand, held at Dudley Pool, Rangiora. The pool is clad with our insulated panels.


In 2013 and 2014, we sponsored Sofia Fitzgerald and Ciara Rafferty in the Rose of Tralee.

The Rose of Tralee is an international competition which is celebrated among Irish communities all over the world. It is held annually in August in Tralee, Kerry, to choose a young woman to be crowned the Rose. The winner is selected based on her personality and should be a good role model for the festival and for Ireland during her travels around the world. Both Sofia and Ciara were delighted to have our sponsorship.

Our Australian employees were involved in various charity events either as individuals or teams; such as Kokoda Challenge, Coastrek, City to Surf and Triathlons.

All operations across our division implemented local community engagement during the reporting period.

Staff taking the Kokoda Challenge

Staff at the Coastrek event

[GRI SO1]Percentage of operations with implemented

local community engagement, impact assessments, and development programs.

2015 / 2016 Targets

Objectives 2015 / 2016 Targets

Sustainable Product Stewardship Increase the number of customers trained on product use / installation in line with production.

Launch IPN-QuadCore in 2015 and make it available in all markets in which our division operates.

Promote knowledge and advise on best possible way of recycling our products.

Complete Environmental Product Declarations to EN 15804 in 2016 for a minimum of one product group in the UK.

Achieve ISO 14001 for our sites in Dunkerque and Perpignan in 2015 and in St Marys, Leuze and Bavikove in 2016.

Achieve ISO 50001 for our sites in Kingscourt, Sherburn and St Marys in 2016.

Carbon Management Continue to invest in renewable energy for sites throughout our division particularly by installing a 5MW Kingspan Energy rooftop solar PV system on our plant in Sherburn, UK in 2015.

Review risks and opportunities associated with climate change on an annual basis.

Apply for the Carbon Trust Standard to demonstrate the reduction in carbon emissions across UK facilities in 2016.

Continue to track and monitor carbon emissions in line with Kingspan Group’s Carbon Disclosure Project (CDP).

Achieve a 50% Net Zero Energy target by 2016 across our division.

Optimise Use of Resources Seek to eliminate all spills. If they should occur, ensure that they do not contaminate land by having confinement areas in place. Report details in next Sustainabilty Report.

Encourage contractors to use the return of packaging from construction sites service that we offer.

Reduce waste sent to landfill by 10% across our division by primarily implementing our ‘zero waste to landfill’ policy in recently acquired companies.

Sustainable Building Design Promote the benefits of optimised building envelopes to design teams and the benefits associated to a holistic design process.

Publish guidance documents in relation to our Value Proposition for example ‘Data Centre Integrated Construction Solutions’ in 2015 and ‘The Store of the Future’ in 2016.

Publish a ‘Sustainable Building Design’ document based on a collaboration with Cundall in Australia and New Zealand in 2016.

Work with all design teams seeking to certify their buildings to an Environmental Assessment Method and outline how our products and solutions can contribute.

Develop internal capabilities in relation to Building Information Modelling (BIM) that exceeds market requirements.

Stakeholder Engagement Carry out market research in core markets to identify ways we can better meet customer requirements.

Develop relationships with key government bodies and trade associations to help promote a sustainable built environment.

Engage with design teams and provide assistance via knowledge transfer and training.

Continue engaging with local communitees at least once a year in our core markets.

Ensure employees training requirements are met and adequate training is provided upon request.

Achieve OHSAS 18001 for our site in Bavikove in 2016.


AcknowledgementWe wish to thank Caleb Management Services Limited, which is owned by parent company Anthesis, for providing external assurance.

Caleb Management Services Limited is an international multi-disciplinary consultancy based in Tormarton (near Bristol, UK) with staff in the UK, Germany and representation in the United States. Their teams are well integrated in the various policy and practice groups within their chosen business areas, and enjoy a close working relationship with industrial clients such as Kingspan.

Caleb specialises in chemicals risk assessment, including REACH and CLP (Classification, Labelling & Packaging), and provides sustainability and environmental services.

The Stables, Somerset House, Church Road, Tormarton,Badminton GL9 1HT, United Kingdom

Tel: +44 (0) 1454 269 330 www.calebgroup.net

2012 / 2013 / 2014 Update

Objectives 2012 / 2013 / 2014 Targets Achievements


To continue focus on training and to train a minimum of 400 contractors at the Holywell visitors centre, and conduct a minimum of 300 site visits.

This was achieved on an annual basis. In fact, in the UK and Ireland, over 700 contractors received training in 2014 whereas 561 received training in 2013.

Complete certified Environmental Profiles for panels manufactured at Sherburn. This was put on hold in anticipation for the launch of IPN-QuadCore. Products manufactured in Sherburn consisting of IPN-QuadCore will now undergo certification to EN 15804

Promote knowledge of the recycling options for Kingspan insulated panels for both current and historical production.

This is ongoing via our Envirocare Technical Services Department.

Carbon Management To invest in renewable energy for our manufacturing operations. Good progress has been made to procure renewable energy. For example, 92% of electricity consumed in the division was from renewable sources at the end of 2014.

Continue the process towards achieving Net-Zero Energy at all our sites. This is an ongoing process for the division however, good results have been achieved to date, most notably achieving a Net-Zero Energy percentage of 34% at the end of 2014.

Continue focus on reducing our divisional carbon footprint. Our carbon footprint slightly increased from 2012 to 2013 as a result of increased production and acquisitions at the end of 2012. However, from 2013 to 2014, our carbon footprint was reduced by almost 50%.


To reduce waste to landfill by 20% compared to 2010/11. Total landfill waste has increased during the reporting period primarily due to acquisitions that occurred at the end of 2012. Reducing waste to landfill is an ongoing process as outlined in new targets for 2015 / 2016.

To promote the return of packaging from construction sites. This is ongoing for our UK operations. There has been an increase in the amount of customers using this service.

To achieve ‘zero waste to landfill’ at least 1 site and make progress towards this objective at all sites.

Four manufacturing sites in the UK and Ireland were ‘zero waste to landfill’. In 2014 waste to land fill was reduced by 22%.


Publish a minimum of 2 new brochures / white papers on subjects associated with sustainable building design.

Various brochures were produced including Kingspan Cost Optimal Energy Saving Buildings which introduces four white papers produced by AECOM in conjunction with Kingspan.

Launch a minimum of one new product with the aim of enhancing the environmental sustainability of buildings.

We launched BENCHMARK Kreate during the reporting period. This is a truly unique system, combining aluminium cassette façade and insulated panel technology.

Ethical Procurement & Supply Chain Management

To further develop a specific Kingspan Insulated Panels responsible procurement policy to cover ethical and environmental issues in all procurement.

This is a continuous process. Similar to management systems at Kingspan, the procurement policy is regularly revised and updated to reflect changing times in the company.

Use environmental profile data to target suppliers to reduce overall environmental impact.

Meetings with suppliers took place during the reporting period to discuss environmental impact. Suppliers are continuously encouraged to reduce their impact on the environment. Steel procured from suppliers typically consists of 20-25% recycled content.

To engage with our suppliers to promote community investment / partnerships. Donations from suppliers have been made during the reporting period to help contribute to our Give and Gain Day. We also provided sponsorship for events such as the Rose of Tralee and the Rural & Industrial Design & Building Association (RIDBA).


Further develop a strategy for measurement of employee training across the division.

It has been agreed that employee’s internal training requirements are at the discretion of their line managers. Training needs are addressed subject to employee needs. A procedure is in place for an annual employee appraisal.

Develop our relationships with key stakeholders including trade associations and government bodies to help promote sustainable construction.

Key relationships have been developed with government bodies, particularly in Europe, where we are represented at Board level and the Kingspan Group’s CEO is a board member of EUASE.

Social Responsibility To achieve greater engagement with our local communities. Various initiatives took place during the reporting period that allowed us to engage with local communities.

To introduce community volunteering. A number of employees throughout the division volunteered with local communities.

To support Flintshire Countryside Services to manage the Dee estuary and its environs. We supported Flintshire Countryside Services by cleaning the banks of the Dee estuary and planting trees.


GRI Content Index

Profile Level of Disclosure Disclosure Reporting Page 1.1 Statement from the most senior decision-maker of the organisation. Fully 6 1.2 Description of key impacts, risks, and opportunities. Fully 40-41 2.1 Name of the organisation. Fully 2 2.2 Primary brands, products, and/or services. Fully 17 2.3 Operational structure of the organisation, including main divisions,

operating companies, subsidiaries, and joint ventures. Fully 17 2.4 Location of organisation’s headquarters. Fully 14 2.5 Number of countries where the organisation operates, and names

of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Fully 14, 54

2.6 Nature of ownership and legal form. Fully 14 2.7 Markets served (including geographic breakdown, sectors served,

and types of customers/beneficiaries). Fully 6, 84 2.8 Scale of the reporting organisation. 14, 15, 54 Proprietary Information: Net Sales and quantity of products are Partially confidential 2.9 Significant changes during the reporting period regarding size,

structure, or ownership. Fully 15 2.10 Awards received in the reporting period. Fully 21, 22, 23 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Fully 2 3.2 Date of most recent previous report (if any). Fully 2 3.3 Reporting cycle (annual, biennial, etc.) Fully 4 3.4 Contact point for questions regarding the report or its contents. Fully 6, 108 3.5 Process for defining report content. Fully 4 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries,

leased facilities, joint ventures, suppliers). Fully 6,17 3.7 State any specific limitations on the scope or boundary of the report. Fully 6 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities,

outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations. Fully 17

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. Fully 19, 20, 40

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement. Fully 4

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Fully 15

3.12 Table identifying the location of the Standard Disclosures in the report. Fully 107 3.13 Policy and current practice with regard to seeking external

assurance for the report. Fully 102 4.1 Governance structure of the organisation, including committees 19 under the highest governance body responsible for specific Does not exist: Gender tasks, such as setting strategy or organisational oversight. Partially breakdown is not available

Profile Level of Disclosure Disclosure Reporting Page4.2 Indicate whether the Chair of the highest governance body is also an executive officer. Fully 194.3 For organisations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. Fully 194.4 Mechanisms for shareholders and employees to provide

recommendations or direction to the highest governance body. Fully 19, 20, 90 4.5 Linkage between compensation for members of the highest Proprietary information:

governance body, senior managers, and executives (including Information relating to departure arrangements), and the organisation’s performance compensation for (including social and environmental performance). members of the highest

governance body, senior managers and executives Not is confidential 4.6 Processes in place for the highest governance body to ensure

conflicts of interest are avoided. Fully 20, 90 4.7 Process for determining the composition, qualifications, and expertise

of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. Fully 19

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Fully 6, 14, 92

4.9 Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Fully 19, 42

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. Fully 19, 20

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation. Fully 32, 42

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses. Fully 64, 65, 84

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. Fully 84

4.14 List of stakeholder groups engaged by the organisation. Fully 84, 85 4.15 Basis for identification and selection of stakeholders with whom to engage. Fully 84 4.16 Approaches to stakeholder engagement, including frequency of

engagement by type and by stakeholder group. Fully 84 4.17 Key topics and concerns that have been raised through stakeholder

engagement, and how the organisation has responded to those key topics and concerns, including through its reporting. Fully 35, 84, 85, 86, 87


The GRI Application Level Service organizational mark is the formal confirmation that the report of a particular organization has undergone and successfully

completed the GRI Application Level Service in a particular month and year.

Economic Performance Indicators Level of Indicator Disclosure Reporting Page EC1 Direct economic value generated and distributed, including revenues,

operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Partially 15

EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. Fully 42, 43

EC3 Coverage of the organization’s defined benefit plan obligations. NotEC4 Significant financial assistance received from government. Not EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. NotEC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. NotEC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Not

Environment Performance Indicators Level of Indicator Disclosure Reporting Page EN1 Materials used by weight or volume. NotEN2 Percentage of materials used that are recycled input materials. Fully 92EN3 Direct energy consumption by primary energy source. Fully 40EN4 Indirect energy consumption by primary source. NotEN5 Energy saved due to conservation and efficiency improvements. Fully 15EN6 Initiatives to provide energy-efficient or renewable energy based products

and services, and reductions in energy requirements as a result of these initiatives. Fully 41

EN8 Total water withdrawal by source. Fully 59EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. NotEN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. NotEN16 Total direct and indirect greenhouse gas emissions by weight. Fully 40EN17 Other relevant indirect greenhouse gas emissions by weight. Not

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Fully 40, 41, 54EN19 Emissions of ozone-depleting substances by weight. NotEN20 NOx, SOx, and other significant air emissions by type and weight. NotEN21 Total water discharge by quality and destination. NotEN22 Total weight of waste by type and disposal method. Fully 59EN23 Total number and volume of significant spills. Fully 59EN26 Initiatives to mitigate environmental impacts of products and services,

and extent of impact mitigation. Fully 15, 30, 31, 33EN27 Percentage of products sold and their packaging materials that are reclaimed by category. NotEN28 Monetary value of significant fines and total number of non-monetary

sanctions for non-compliance with environmental laws and regulations. Fully 18

Social (Labour Practices and Decent Work) Performance Indicators Level of Indicator Disclosure Reporting Page LA1 Total workforce by employment type, employment contract, and region,

broken down by gender. Partially 91LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. NotLA4 Percentage of employees covered by collective bargaining agreements. NotLA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. NotLA7 Rates of injury, occupational diseases, lost days, and absenteeism,

and number of work-related fatalities by region and by gender. Partially 91LA8 Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. NotLA10 Average hours of training per year per employee by gender, and by employee category. NotLA12 Percentage of employees receiving regular performance and career

development reviews, by gender. Fully 91LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity. NotLA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. NotLA15 Return to work and retention rates after parental leave, by gender. Not


GRI Content Index


Social (Human Rights) Performance Indicators Level of Indicator Disclosure Reporting Page HR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening. NotHR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken. NotHR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. NotHR4 Total number of incidents of discrimination and corrective actions taken. Fully 90HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights. NotHR6 Operations and significant suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour. NotHR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour. NotHR9 Total number of incidents of violations involving rights of indigenous

people and actions taken. Fully 90HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments. NotHR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms. Not

Social (Society) Performance Indicators Level of Indicator Disclosure Reporting Page SO1 Percentage of operations with implemented local community engagement,

impact assessments, and development programs. Partially 101SO2 Percentage and total number of business units analysed for risks related

to corruption. Fully 86SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. NotSO4 Actions taken in response to incidents of corruption. NotSO5 Public policy positions and participation in public policy development

and lobbying. Fully 84SO8 Monetary value of significant fines and total number of non-monetary

sanctions for non-compliance with laws and regulations. Fully 19SO9 Operations with significant potential or actual negative impacts on local communities. NotSO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. Not

Social (Product Responsibility) Performance Indicators Level of Indicator Disclosure Reporting Page PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. NotPR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Fully 32PR5 Practices related to customer satisfaction, including results of surveys

measuring customer satisfaction. Fully 89PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. NotPR7 Total number of incidents of non-compliance with regulations and voluntary

codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. Fully 85

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Fully 32


Level of DMA SO Disclosure on Management Approach Reporting Page Aspects Local communities Fully 94 Corruption Fully 86 Public policy Fully 84 Anti-competitive behaviour Fully 86 Compliance Fully 19, 85

Level of DMA PR Disclosure on Management Approach Reporting Page Aspects Customer health and safety Fully 88 Product and service labelling Fully 32 Marketing communications Fully 85 Customer privacy Fully 88 Compliance Fully 85

Level of DMA EC Disclosure on Management Approach Reporting Page Aspects Economic performance Fully 15, 19 Market presence Fully 6 Indirect economic impacts Fully 40

Level of DMA EN Disclosure on Management Approach Reporting Page Aspects Materials Fully 31 Energy Fully 15 Water Fully 59 Biodiversity Fully 59 Emissions, effluents and waste Fully 59 Products and services Fully 17 ,86, 87 Compliance Fully 19 Transport Fully 91 Overall Fully 19, 40 Level of DMA LA Disclosure on Management Approach Reporting Page Aspects Employment Fully 90 Labour/management relations Fully 90, 91 Occupational health and safety Fully 91 Training and education Fully 91 Diversity and equal opportunity Fully 91 Equal remuneration for women and men Fully 91

Level of DMA HR Disclosure on Management Approach Reporting Page Aspects Investment and procurement practices Fully 92 Non-discrimination Fully 90 Freedom of association and collective bargaining Partially 90 Child labour Not n/a Prevention of forced and compulsory labour Not n/a Security practices Fully 90 Indigenous rights Fully 90 Assessment Fully 91 Remediation Fully 90

11/2015

Kingspan Insulated Panels Pty Ltd38-52 Dunheved Circuit, St Marys, NSW 2760, Australiat: +61 (0) 2 8889 3000 f: +61 (0) 2 9673 5068 www.kingspanpanels.com.au

Isocab N.V.Treurnietstraat 10, 8531 Harelbeke, Bavikhove, Belgiumt: +32 (0) 56 73 43 11 f: +32 (0) 56 73 43 22 www.isocab.com

Kingspan N.V.Bouwelven 17, Industriepark Klein Gent, 2280 Grobbendonk, Belgiumt: +32 (0) 1423 25 35 f: +32 (0) 1423 25 39 www.kingspanpanels.be

Kingspan Door Components S.A.Zone Industrielle de l’Europe 1A, 7900 Leuze-en-Hainaut, Belgiumt: +32 (0) 69 86 82 22 f: +32 (0) 69 86 82 20 www.kingspandoor.com

Isocab France sasZ.I. de Grande Synthe, 3, Rue Charles Fourier, CS 30142, 59792 Grande Synthe Cedex, France t: +33 (0) 3 28 29 24 40 f: +33 (0) 3 28 29 24 50 www.isocab.fr

Espace Polygone, 142, rue Panhard et Levassor, 66000 Perpignan, Francet: +33 (0) 4 68 52 99 60 f: +33 (0) 4 68 52 99 61 www.isocab.fr

Kingspan sarlParc d’affaires Silic Paris Nord 2, Immeuble Rostand, 22 avenue des nations, BP81033 Villepinte, 95932 Roissy Charles de Gaulle Cedex, Francet:+33 (0) 1 58 03 59 11 f: +33 (0) 1 48 63 77 15 www.kingspanpanneaux.fr

Kingspan Limited Carrickmacross Road, Kingscourt, Co Cavan, Ireland t: +353 (0) 42 96 98500 f: +353 (0) 42 96 98572 www.kingspanpanels.ie

Kingspan B.V.Lingewei 8, 4004 LL Tiel, The Netherlandst: +31 (0) 344 675 250 f: +31 (0) 344 675 251 www.kingspanpanels.nl

Kingspan Ltd97 Montreal Street, Christchurch, New Zealand t: +64 (0) 3 260 5530 f: +64 (0) 3 260 5539 www.kingspanpanels.co.nz

Kingspan Insulated Panels PTY Ltd Unit 1, Romead Business Park, 23 Malone Road, Maxmead, Pinetown, 3610, South Africat: +27 31 701 3181/2 www.kingspanpanels.co.za

Kingspan Insulated Panels Manufacturing LLC.P.O. Box 60493, Dubai Investments Park, Jebel Ali, Dubai, United Arab Emiratest: +971 (0) 4 8854 232 f: +971 (0) 4 8854 223 www.kingspanpanels.ae

Kingspan Limited / Kingspan EnergyGreenfield Business Park No. 2, Greenfield, Holywell, Flintshire, North Wales CH8 7GJ, United Kingdom t: +44 (0) 1352 716100 f: +44 (0) 1352 710161 www.kingspanpanels.co.uk www.kingspanenergy.co.uk

Kingspan Structural Products & Systems / Kingspan LimitedSherburn, Malton, YO17 8PQ, United Kingdomt: +44 (0) 1944 712000 f: +44 (0) 1944 710555 www.kingspanstructural.com www.kingspanpanels.co.uk

Kingspan Steel Building SolutionsUnits 2 & 3 Progress Works, Heath Mill Lane (Access via Bromley Street), Digbeth, Birmingham,B9 4AL, United Kingdomt: +44 (0)121 753 7050 f: +44 (0) 121 753 5187 www.kingspansbs.com

Care has been taken to ensure that the contents of this publication are accurate, but Kingspan Limited and its subsidiary companies do not accept responsibility for errors or for information that is found to be misleading. Suggestions for, or description of, the end use or application of products or methods of working are for information only and Kingspan Limited and its subsidiaries accept no liability in respect thereof.

Documents

KIP Sustainability 2015 FINAL Oct 2015