Corporate Responsibility

• Introduction
• The PZ Cussons Plc CSR Committee
• ‘Doing Good Business’
• The Environment
• Health and Safety
• Product testing and consumer safety
• Business conduct and ethics
• Our employees
• Local community and charity

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The Environment

We are committed to protecting the environment for the benefit of our employees and the public at large.

• In all decisions we take due account of the potential environmental impact of our operations and we take responsibility for the potential environmental impact of our actions - we recognise the obligations which business has to the environment and we share the growing concerns of our consumers and other stakeholders in this respect. Across the Group, we continue to minimise the consumption of energy and water, as well as minimising the production of trade waste and waste to landfill, through efficient practices in our offices, factories and warehouses. We are committed to communicating our environmental policy to our shareholders, employees, contractors and interested parties in order to establish an environmentally responsible attitude within our organisation.
• Wherever reasonably practicable, we will use raw materials from sustainable and environmentally friendly sources - in 2010 the Group applied to become a member of the Roundtable on Sustainable Palm Oil (RSPO). A number of the Group's products contain palm oil or its derivatives and the CSR Committee and the Board recognise the growing concerns over the sourcing of palm oil and the potential for damage to the environment. The RSPO is a not-for-profit association which unites stakeholders from seven sectors of the palm oil industry: oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation Non-Governmental Organisations (NGOs) and social or developmental NGOs. Its mission is to advance the production, procurement and use of sustainable palm oil products through the development, implementation and verification of credible global standards and the engagement of stakeholders throughout the supply chain. As a member of the RSPO, PZ Cussons will make a time bound commitment to 100% Certified Sustainable Palm Oil via RSPO approved supply chain mechanisms and to promote and communicate sustainable palm oil production, procurement and consumption to customers, suppliers, sub-contractors and to wider value chains as appropriate.
• We are committed to reporting and reducing the Group's carbon footprint, minimisation of waste, efficient use of energy, water and other natural resources in the office, factory and warehouse environments and the prevention of pollution - All PZ Cussons manufacturing facilities have ongoing energy reduction initiatives to reduce carbon dioxide output. Examples of initiatives during the year include:



• the successful completion in Nigeria of Project Unity, a £39 million investment in manufacturing and supply chain, involving significant investment in plant and machinery specifically designed to be more energy efficient, to minimise atmospheric emissions (to EU standards) and to significantly reduce other wastes. We continue to generate our own power for our sites via gas generators resulting in an overall lower environmental impact than if we were to take power from the Nigerian grid. Going forward, we have employed external consultants to conduct a major energy survey of the entire Nigerian operation to identify further reductions in emissions and savings;
• changes in soap processing and reduction in steam generation and electricity usage by our business in Kenya resulting in significant savings in operating costs, a substantial reduction in the carbon footprint of the business and, for the fourth year running, recognition by the Kenya Association of Manufacturers for optimisation of energy use within its manufacturing processes;
• in the UK, a move to a new third party logistics supplier reducing lorry miles associated with the movement of our products to distribution centres by 130,000 over the period November 2009 to May 2010; and
• in Poland, manufacturing, warehousing and distribution projects which have reduced fuel consumption and greenhouse gas emissions throughout the supply chain.

The carbon footprint of each operation is now routinely monitored and reported using internationally recognised protocols. The Group also continues to participate in the Carbon Disclosure Project (the CDP is an independent not-for-profit organisation which holds one of the largest databases of corporate climate change information in the world and is considered the gold standard for carbon disclosure methodology and process).

• We challenge our colleagues and the business to pursue innovative approaches to reducing the environmental impact from our products and processes - We believe that the identification, effective control and reduction of the environmental impact of business activities are integral elements of well-managed operations and we are committed to continuous measurement and improvement of environmental performance, through appropriate product design, the minimisation of waste, efficient use of resources, the prevention of pollution and the protection of the environment. Examples of initiatives during the year include:



• the elimination or reduction of packaging in a number of products in the UK including Original Source, Charles Worthington, Foamburst and Morning Fresh and a transition to more widely recyclable packaging for Imperial Leather shower and bath products;
• the reformulation of personal wash and home care products by PZ Cussons UK to significantly reduce surfactants going into waste from UK homes;
• initiatives at Agecroft in the UK, the Group's Personal Wash Centre of Excellence and our flagship in respect of environmentally sensitive manufacturing processes,resulting in a 16% reduction in trade effluent, a 22% reduction in material to landfill, a 13% reduction in energy usage, a 36% reduction in total waste and a 10% reduction in carbon; and
• in Australia, the involvement of all employees in environmental improvement projects resulting in an environmental strategy and action plan, focused on reductions in trade waste, the emission of clean storm water and clean air and on reductions in its use of water and energy.

The Group Risk Committee, a standing committee of the Board, ensures that any environmental risks which the Group may face are properly identified, assessed and prioritised and that appropriate arrangements are in place to manage and mitigate those risks effectively.