Taken from the Annual Report 2007

Vitec has always maintained a considered approach to the environmental and social issues surrounding its business activities worldwide. Although the Group's environmental impacts are relatively limited, we continuously look for ways to be more responsible and sustainable across all our operations.

Vitec first began reporting on Corporate Responsibility in 2002. Since then the Group has continued to assess its responsibilities at local, national and global levels. We recognise that as we continue to push ahead with our strategy to consolidate, leverage and grow, Corporate Responsibility will become even more central to sustainable growth, particularly as investors and customers increasingly consider these nonfinancial issues in decision making. We want to be in the best position possible to minimise risks and identify and capitalise on the opportunities presented.

Towards the end of 2007 we asked a specialist third party to review the Group's Corporate Responsibility related policies and issues. An analysis of the risks faced by the Group in the following areas was undertaken: the environment, business ethics and human rights, health & safety and employment and community giving. The result of this analysis is shown below in the form of a table and we intend to use it as the focus of our approach to Corporate Responsibility reporting in the future.

Specific responsibility for these matters has been delegated to senior employees within each of the Group's divisions. Reviews by local management take place at each location and reports are made of the major risks in these areas. These reports identify risks, the current measures being taken to control them and the steps being taken to eradicate or minimise their effect in the future. The compilation of statistics commenced in 2002 and were improved in 2004 and these are being used to monitor changes and trends.

We will continue to report on our electricity, gas and water consumption and accident statistics as we have done for a number of years and we have, from this year onwards, started reporting on oil consumption. See section on Key Performance Indicators.

It is important to us that we receive feedback from all of our stakeholders and we will use their comments and views to shape our future Corporate Responsibility policies and practices. Please get in touch with us at info@vitecgroup.com if you have any comments.

  Policies and actions
Climate change
  • The Group's energy usage is closely monitored and reduced wherever possible. At our operations in Italy, the Group's largest user of energy, we have now switched over to using electricity from renewable sources. This approach is also being implemented in other parts of the Group.
  • Crisis management plans are in place at all operations and more detailed business continuity plans are being put in place at all important locations to ensure, so far as possible, that the effect on our operations is minimised in the event of a major occurrence caused by external events including climate change.
Environmental impacts of product use and disposal
  • New product introductions are developed to ensure they are energy efficient both in their production and, so far as they are able, in their use.
  • We strongly encourage recycling of waste products, materials, paper and all other items that can be recycled.
  • Anton/Bauer, the Group's battery business, has been a member of the battery recycling corporation (RBRC) for a number of years. More information on this is set out on CSR Report (p2).
  • We encourage our businesses to reduce the quantities and thickness of cardboard and use alternative packaging wherever possible.
Environmental impacts of the supply chain
  • Vitec has a Code of Business Conduct that includes supply chain requirements, which can be found on our website. It was recently revised and expanded and is being rolled out across the Group with the aim of covering the majority of suppliers. Suppliers are required to comply with the Group's ethical standards assessment and are regularly monitored to confirm compliance.
Pollution events or hazards
  • Vitec has crisis management plans in place to deal with the majority of events that might affect the various parts of the Group and its operations. More detailed business continuity plans are now being put in place.
  • During the last year or so the Group has been identifying all substances used at each of its locations and has taken steps to find and use suitable non-hazardous alternatives. This will continue into the future.
Business ethics and human rights
  • The Vitec Code of Business Conduct covers the way in which we deal with employees, suppliers, customers, shareholders and our responsibility to society. All new employees are given a copy of the Code when they join the Group and it was distributed to all employees in early 2008. It is being translated into the languages of the countries in which we operate. All employees will be required to comply with it and confirm each year that they have complied. Any violations of the Code are required to be reported to local management or the Group Company Secretary, as appropriate. Employees wishing to report breaches anonymously may do so to the Group Company Secretary, without fear of any adverse consequences.
  • Vitec's Code includes supply chain requirements. It was recently revised and expanded and is being rolled out across the Group with the aim of covering all suppliers. Suppliers are regularly monitored to confirm compliance with Vitec's required standards.
  • The Code includes a prohibition on bribery or giving any kind of inducements.
Health & safety and employment
  • Health & safety is of paramount importance and courses are run regularly for employees.
  • Accident statistics are reviewed at each meeting of the Executive Board usually held seven times a year and are reported to the main Board directors as part of their monthly management pack. Training is regularly carried out to educate employees in health & safety matters and safe systems of work. For 2007 we targeted a 10% reduction for the year in accidents. However, accidents during the year increased from 835* to 936* - see Note 3 on Key Performance Indicators. There were no fatal accidents during 2007.
  • Recruitment and retention of a skilled and diverse workforce. Vitec has very low staff turnover and levels of sickness are minimal across the Group.
  • Vitec has an equal opportunities culture with no discrimination of any kind.
Community giving
  • Vitec has for many years contributed to national and local communities in the countries in which we operate through donations, sponsorship and financial support for local charities. In addition, we encourage local employees to give their time to local causes and this is coupled with a matching element from the employer.
  • We strive to be a good neighbour, minimising any negative impacts from our operation

* rate per 100,000 employees.

Major developments during 2007

There were many and varied developments throughout the Group in 2007. However, the main ones were as follows:

During the year ISO 14001 environmental certification was received in respect of the Group's Imaging and Staging operations in Italy. This was in addition to the ISO 9001 certification already received. These operations account for almost 43% of the Group's turnover and 54% of its operating profit and are therefore a significant part of the Group.

The Camera Dynamics business and manufacturing plant in Bury St Edmunds is now also operating to ISO 14001. In 2007 that operating unit initiated a programme for raw materials and product recycling through the original suppliers in line with the WEEE directive. In 2007 some eight tons of raw materials and products were recycled in this way.