Net Zero Strategy

Our commitment to carbon reduction and the climate change agenda

2021 - 2030

NET ZERO STRATEGY

1

Contents

3 4 5 6 7 8 8 9

Foreword from Adam Green

Introduction

Why Carbon Reduction Matters to Us Growing our Business for a Net Zero Future

How we will Achieve our Goals

Assurance

GHG Emissions from FM Conway Activities 2018/19

Targets

10

Our Key Areas of Focus

11

How we will Support our Net Zero Strategy

12 14 18

Energy Management

Plant and Transport - Road Vehicles Plant and Transport - Plant and Tools

20 22 24 26 28

Natural Capital Investment

Waste Management

Material Resource Efficiency

Supporting Disciplines - Communication and Collaboration

Supporting Disciplines - Knowledge and Training

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Definitions

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Foreword from Adam Green

As CEO of this proud family business, I am delighted to introduce our Net Zero Strategy which documents our journey through to 2030.

At FM Conway, we understand that the protection of the Earth and its resources is everybody’s business; we are all responsible. There is no question that the actions we take today will have a profound impact on the planet of tomorrow. For over 30 years, FM Conway has pioneered sustainable construction activities that have ultimately led to a reduction in carbon. Our business has invested in sustainable infrastructure and is leading the way in the use of low carbon recycled asphalt materials. We are privileged to have a workforce that is fully committed to understanding its role, developing its knowledge, and stepping up to the challenge for the benefit of our clients, our business and the next generation.

However, we know that we must never stop moving forward.

As we have always done, FM Conway will lead the way for change and a better tomorrow by setting an example, not just for the construction industry, but for ourselves, for our family and friends, and, most importantly of all, for planet Earth.

Adam Green

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Introduction Climate change is one of the greatest challenges of our times. The next decade will be crucial in the worldwide attempts to stop global temperatures rising above the 1.5 o C threshold set by the United Nations to halt the potentially catastrophic change in our climate. To take action, the UK government has set a deadline to become net zero by 2050 and achieve a 68% reduction in CO 2 e from the levels of 1990 by the year 2030. Through FM Conway’s track record of forward-thinking investment in sustainable solutions and a commitment to continuous improvement, we have developed a Net Zero Strategy to address our part in this worldwide issue. The Net Zero Strategy, alongside the Sustainability Strategy, is underpinned by our research and committed leadership. Our strategies facilitate and expedite FM Conway’s sustainable approach whilst offering a credible plan to give our stakeholders confidence in our ability to deliver. In this strategy, we will outline the key areas in which we aim to tackle carbon and achieve net zero across FM Conway by 2030, as well as highlighting and monitoring the actions we must take that will transcend our business. FM Conway’s current performance has much to do with its distinctive self-delivery model. By investing in the ownership of business premises, fleet, plant, and manufacturing and recycling facilities, we are able to adapt to customer needs and respond independently to changes in the marketplace. Technology, carbon and self-delivery are the three symbiotic pillars of our 10-Year Business Strategy. It is our investment in infrastructure technology, combined with the ability to self-deliver our services, that will ultimately help to drive down our carbon consumption. To ensure that our strategy remains on-track towards achieving our carbon goals, this Net Zero Strategy is subject to annual review, as a minimum, and will continually evolve alongside a Carbon Action Plan (CAP) that will serve as an action tracker for our objectives.

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Why Carbon Reduction Matters to Us

Our Vision

Our Net Zero Strategy sets out our vision of being a net zero business by 2045. We are uniquely placed to bring innovation quickly to our customers through our self-delivery model which is underpinned with a structured Carbon Action Plan. Our short, medium and long-term actions and history of collaboration will take our clients’ carbon objectives and embed them into our low carbon construction era. Our supply chain are a valued part of our capability and we aim to use their skills and expertise to showcase additional technological advancements. Through these, we will promote a circular, sustainable and clean future that safeguards our world for future generations.

Our Purpose

The purpose of our strategy is to provide a structured mechanism for change, review and innovation, leading to carbon savings within our business. Underpinned by Board support, it aims to empower our colleagues to put forward carbon savings which are monitored, recorded and ultimately delivered to achieve FM Conway’s carbon ambitions.

Our Approach

Our Net Zero Strategy sets out why we have adopted particular approaches, and provides reasoning behind our targets. This underpins our Sustainability Strategy with an action plan that supports and tracks the deliverables. Utilising our knowledge, we will engage and optimise our sphere of influence by working with all stakeholders to deliver the change.

Carbon Action Plan

Our CAP provides a governance tool for the management and monitoring of our goals and actions, which will be reviewed quarterly.

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Growing our Business for a Net Zero Future Striving for carbon reductions for a net zero future should not constrain or act as a barrier to growth. FM Conway has expanded significantly in the last eight years and will continue to develop organically and strategically.

Our Business

FM Conway has two distinct arms to its business; aggregates and asphalt, which supplies and manufactures products, and contracting, which supplies services.

Aggregates and Asphalt

The measurement, which will be adjusted, is based on tonnes of CO 2 e per tonne of asphalt manufactured. Data and predictions in relation to growth of asphalt production will be taken from each financial business case or using historic published metrics of tCO 2 e/t asphalt.

Contracting

The measurement, which will be adjusted, is based on CO 2 e per £1m turnover.

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How we will Achieve our Goals

To be successful in reducing carbon across our business, we will look to deliver five essential steps that tackle carbon over key areas in our business.

We will ensure that we:

• Manage, Monitor and Report – An intrinsic part of the strategy will be demonstrating a method from which we can report and manage our emissions in a logical and easily accessible platform. GHG reporting will form part of a quarterly dashboard which will be reviewed against targets by the Carbon Action Group and the Board

• Eliminate – This involves removing the process, the deliverable, or the asset out of the business to completely eradicate the GHG associated

• Improve Efficiency – The business disciplines will work collaboratively to identify and action any improvements to operational efficiency in order to reduce GHG output

• Diversify – This involves the review of what can be altered in the process, the deliverable, or the asset. This may involve a new product or approach which currently exists in the marketplace

• Innovate – Usually actioned over a longer time frame, this involves a new product, technology, or delivery method being introduced into the marketplace

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Assurance To demonstrate consistent commitment and credible outputs, FM Conway will gain accreditation to PAS2080 by 2024. Additionally, our process will be reviewed to implement our Net Zero Strategy objectives into our overall delivery methods.

Our CAP will be the mechanism to deliver and track our carbon actions and measure success. We will annually report our actions against targets through an FM Conway Environmental Report.

GHG Emissions from FM Conway Activities 2018/19

The 2018/19 GHG emissions figure will serve as a baseline from which to track progress.

SOURCE

2018/19

%

Electricity

2,533

5

Gas

17,947

35

Gas Oil

9,610

19

Fuel Oil

3,645

7

Petrol

50

0

Diesel

17,465

34

F Gas

0

0

Total Tonnes CO 2 e

51,250

Turnover

£318m

Intensity Tonnes CO 2 e / £1m Turnover

161

Tonnes Asphalt

1,135,456

Intensity Tonnes CO 2 e / Tonnes Asphalt

0.045

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Targets Our targets set out the metrics that we feel are achievable in the short, medium and long-term. Our CAP will also demonstrate year-on-year progress against these milestones so that we can ensure we stay on track for a net zero future. All of our targets are centred on reducing our carbon emissions from our operations; offsetting will only be used when it is not viable or practical to remove the operation from our business.

50%

75%

25% reduction of our absolute 51,000tCO 2 e to 38,500tCO 2 e

25%

100%

2024 2030 2045

25%

0%

50%

75%

50% reduction from 51,000tCO 2 e to 25,500tCO 2 e

25%

100%

50%

0%

50%

75%

25%

Scope 1 & 2 net zero

100%

100%

0%

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Our Key Areas of Focus Following our steps to reduce carbon, we have identified the key areas across our business where we can deliver the biggest impact and we will aim to significantly improve our carbon levels across the following:

Energy Management Energy Management encompasses the gas, electricity and oil used for energy within our offices, static sites and asphalt production. By using smart Infratech sensors we will capture our energy data which will enable us to make quick and informed changes to our energy consumption. Plant and Transport FM Conway has a large and diverse fleet of vehicles, as well as an extensive range of plant and tools used across the business. With developing infrastructure within the UK, it will become easier to use electric to power small tools, welfare cabins and plant, as well as switching much of our fleet to EV or low emission alternatives. Natural Capital Investment We will consistently search for opportunities to avoid the use of natural capital. This includes quarries, bitumen, fossil fuels, materials and other virgin sources. Our business model will be to enhance our input into natural capital by using existing available materials or investing in enhancement of the UK’s natural capital and their function. Our efforts will go hand in hand with our material efficiency proposals as less raw materials used/wasted will directly correlate to natural capital enhancement. Waste Management FM Conway is committed to waste reduction in line with waste hierarchy. We aim to do this by improving the visibility of our own waste and improving our data gathering to inform our recycling and waste objectives. Material Resource Efficiency Increasing our RAP within our asphalt specifications will be a critical factor to reduce our clients’ carbon footprint and enhance our low carbon credentials for asphalt delivery. A certified methodology for calculating carbon within our asphalt means we will be able to offer our clients options based not just on cost, but carbon, thus helping to drive the carbon agenda through the promotion of low carbon options.

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How we will Support our Net Zero Strategy

Communication and Collaboration In order to nurture innovation, open discussions and collaboration are essential to expedite our ambitions. We will use action groups, client workshops, and supply events in order to provoke, challenge and galvanize teams to adopt, or try, new technologies, or to create the mechanism to ask for investment and support. Knowledge and Training We are in a position to roll out training to all of our people in order to reduce their carbon when driving, when utilising resources, when controlling waste, and when operating our plant and machinery. By enhancing levels of understanding and setting standards, our people can make savings and promote our carbon targets.

INNOVATE

DIVERSIFY

MANAGE MONITOR REPORT

IMPROVE EFFICIENCY

ELIMINATE

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Energy Management

MANAGE, MONITOR AND REPORT FM Conway has an energy carbon output of approximately 22,000tCO 2 e, not including fleet and plant fuel. Carbon monitoring has been established but will be continually improved upon by investing in smart metering, automatic sensor technology, and reporting technology. Real time and accurate information will be pivotal in understanding the tCO 2 e per tonne of asphalt for each type of mix at each plant location, as well as providing clients with the opportunity to choose the low carbon option.

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GOAL

ACTIONS 2024

• 100% of Scope 2 electricity generation from certified renewable resources

• Investigate heat recovery options and provide funding options at two locations each year

Eliminate

• Increase covered storage for aggregate

• Investigate the cost-benefit associated with renewable power generation on our sites

• All sites to have half hourly/smart meters for gas, electricity and water

• Invest and create an online platform which monitors energy usage in real time for all asphalt plants • All sites to conduct an efficiency audit annually. Actions considered significant will be escalated to Board members with completion required in two weeks • Hold quarterly meetings with the Energy Review Committee and Energy Broker to identify savings • Asphalt production will utilise natural gas from the grid as a priority over gas and fuel oil

Improve Efficiency

• All static diesel generators based in depots (providing energy) will be using low GHG alternative fuel • New designs and updating of asphalt plant infrastructure will be subject to an efficiency and clean energy review

Diversify

• Provide green energy proposals to Board where there is a payback within five years • A minimum of £20,000 per year will be available for carbon saving initiatives put forward by Divisions within the business

Innovate

Actions 2030

• Remove all gas oil from FM Conway sites

• Fuel oil will be removed from sites where a suitable replacement is available

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Plant and Transport - Road Vehicles

MANAGE, MONITOR AND REPORT In 2018/19 FM Conway’s diesel consumption accounted for 34% of the total GHG emissions, which increased to 35% in 2019/20. The opportunity for significant reduction exists in both the short and medium terms. By using the data from our diesel consumption, we can see that a reduction of 15% in diesel will contribute 5.5% to our 2024 target. Currently, the vehicles have fully integrated tracking mechanisms and platforms to improve monitoring and reporting. • 1.5 tonne panel vans represent 4% of the total diesel consumed • Large mobile vehicles, including 8-wheel tippers, gully tankers, grabs and mixers make up 35% of the carbon emissions from fuel per year • 3.5 tonne pick-up vehicles represent approximately 10% of the total diesel consumed Current monitoring has identified:

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GOAL

ACTIONS 2024

• 55% of <1.5t vehicles will be replaced with electric

• 80% of the company car fleet with be electric with 100% electric by 2025

Eliminate

• Replace vehicles with cargo bikes/standard bikes where practical

• Use technology to reduce staff and engineering travel to sites

• Driver behaviour will be analysed monthly and actions taken to improve efficiency, provide training and reward best practice

Improve Efficiency

• Increase electric charging capacity at all FM Conway-owned sites proportional to the number of electric vehicles which are based there • EV chargers to be fitted free of charge in homes of appropriate FM Conway Supervisors

Diversify

• Use HVO or biofuel in 20% of our HGVs (using depot refill bowsers)

• To invest in trial of HGV vehicles which do not use fossil fuels

Innovate

• Review battery technology

Actions 2030

• 100% of <1.5t vehicles will be electric

• 100% of vehicles <5t will be zero emissions

• Replace 50% of >5t vehicles with zero or low emission alternatives if viable technological advancement allows

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Plant and Transport - Plant and Tools MANAGE, MONITOR AND REPORT The growth of electric infrastructure within the UK, particularly London and the South East, means it will become easier to use electric to power small tools, welfare cabins and plant. Fuel card usage for small tool refills represents 3% of the annual greenhouse gas emission from fuel usage in 2018/19.

Main tools include:

• Disc cutters • Breakers • Tower lights • Drills • Wacker plates • Trench rammers

FM Conway mainly operates large plant, which are predominantly purchased as opposed to hired. The main items consist of 130 Excavators, 50 Dumpers, 51 Forklifts; some of these items are solely for operation at asphalt plants, whilst others are used on mobile sites. Gas oil consumption accounts for 16% of annual GHG emissions, with much of this consumption from depot fuel bowsers or to power mobile generators. Feedback from trials will be gathered using our innovation forums and workshops which are attended by a wide range of operational representatives. This will ensure we are making informed decisions about different tools and plant on the market.

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GOAL

ACTIONS 2024

• 25% of tools will be electric

• Provide a low carbon alternative on our main tool items to demonstrate the carbon difference, along with cost, for clients

Eliminate

• All welfare units will have solar panels and electrical connection options

• Improvements in monitoring information will allow us to review operator efficiency

Improve Efficiency

• Trial four different/new tools in the market every year and provide robust feedback on their application, usability, advantages and disadvantages

Diversify

• Alternative low carbon fuel as red diesel replacement in all plant

• HVO to be provided as an option to clients where fuel bowsers are required on site

• Invest and research new technology that utilises electricity or another low/zero carbon alternative for large plant • Trial low carbon options to be made available to clients, including detail of any uplift in rates and associated carbon savings

• Review the following options for large plant and tools:

• Electric HGVs

Innovate

• Hydrogen fuel for large fleet and plant

• Lithium-Sulphur batteries

• Sodium–Ion batteries

• CNG

• Ammonia

• Bio-ethanol

Actions 2030

• 100% of tools to be replaced with electric tools

• 50% of diesel plant will be replaced with low/zero carbon alternatives where the technology is readily available

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Natural Capital Investment

MANAGE, MONITOR AND REPORT We value natural capital through our unique approach to recycling and the Circular Economy of our construction activities. In addition to this, we utilise our land to improve biodiversity, sequester carbon, and improve local visual landscape. As a manufacturer, we have invested in research and development through our laboratory to search for opportunities to avoid the use of natural capital. This includes quarries, bitumen, fossil fuels, materials and other virgin sources. Our efforts will go hand in hand with our material efficiency proposals as less raw materials used/wasted will directly correlate to natural capital enhancement. Carbon offsetting is a term which allows for the quantity of GHGs resulting from a company’s activities to be removed by compensatory measures. Whilst it is recognised that this is not a long-term solution to address the climate emergency, this option remains viable for FM Conway where technology is not sufficiently advanced or available in a commercial setting to remove our GHGs. We will, therefore, use offsetting as a stepping-stone to allow the business to reduce its carbon emissions and demonstrate a commitment to a carbon neutral future.

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GOAL

ACTIONS 2024

• Promote and share information from use of RAP in roads at least four times per year

Eliminate

• Publicise carbon saving associated with our recycling capability

• Analyse current biodiversity on five of our own sites in accordance with The Department for Environment, Food and Rural Affairs (DEFRA) calculator • Set up a biodiversity action group with an educational body to advise on future strategies to enhance our biodiversity in our buildings, on our sites, and within designs

Improve Efficiency

• At the start of new design schemes, hold a review to identify biodiversity improvement opportunities

• Provide £36,000 of investment each year for 15 years, which provides a minimum of 8,000t of verified carbon credits • Provide £10,000 per annum to invest in UK carbon offsetting schemes associated with the Woodland Carbon Code

Diversify

Innovate

• Invest in trials which reduce our dependence on polymers and bitumen

Actions 2030

• Analyse current biodiversity on all sites over 1 hectare

• Document a robust strategy for incorporating biodiversity into our business and set an annual budget for maintenance and enhancements to biodiversity on our sites

• Identify a baseline of biodiversity for each site over 1 hectare

• Ensure carbon offsetting is in place to guarantee we are carbon neutral by 2045. Understand which areas need offsetting and set a target for when offsetting will not be required

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Waste Management

MANAGE, MONITOR AND REPORT Waste processing contributes 20mtCO 2 e to the UK emissions per year and construction contributes between 50-60% of that figure. Material arisings from construction can be split into two categories; internal movements, which consists of road/ construction material, and external skipped waste for packaging, general waste, timber and metal. Our road and construction material is reused back into our manufacturing process as part of our Circular Economy model. General skipped waste is removed by third parties, which falls within Scope 3 of carbon accounting. FM Conway is committed to waste reduction in line with waste hierarchy. To improve our visibility and scrutiny of our own waste and third party recycling rates, more information will be gathered through the use of the i-CON platform and quarterly reports shared throughout the business.

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GOAL

ACTIONS 2024

• Remove single-use plastics across our business

Eliminate

• Divert 99% of all third party waste removal from landfill

• Publish four design changes per year which reduce waste taken from site • Calculate GHG emission associated with our waste to identify a baseline for a Waste Management Plan for the whole business • Commission a waste report to be carried out to understand our biggest waste streams and estimated quantities associated to identify main waste and set reduction targets

Improve Efficiency

• Invest in Oracle and data analysis to be able to assess and update targets and objectives relating to waste from each sector of our business and each waste type

Diversify

• Hold two meetings per year with supply chain members to identify packaging savings, changes and reductions

Innovate

Actions 2030

• Reduce our skipped waste (tonnes) by 50% from 2022

• Send back all timber packaging to suppliers for reuse

• 40% reduction of GHG arising from waste from baseline

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Material Resource Efficiency

MANAGE, MONITOR AND REPORT

“ Increasing the percentage of RAP within our asphalt specifications will be a critical factor to reduce the embodied carbon within our product range, whilst also protecting the natural environment through our Circular Economy approach. The volumes of internal consumption of water, paper, timber, PPE, tools, etc. will be available to review within the appropriate business units. We will create regular enhanced reports and collaborate with our suppliers to give us more information about the carbon associated with the materials that are used. A certified methodology for calculating carbon within our asphalt means we will be able to offer our clients options based on quantities of GHGs in our products. The data presented will be essential for driving the low carbon agenda in order to promote low carbon options for better triple bottom line accounting.

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GOAL

ACTIONS 2024

• A reduction in the use of paper and timber products (all products to be FSC approved)

• Create 2022 baseline of £1m turnover/m 3 water consumption

Eliminate

• Provide a suite of options for our clients which sets out carbon emissions in the schedule of rates

• Create a carbon calculation at the start and the end of a project to assess cost and carbon emissions associated against predicted

• Calculate amounts and keep trackers on main material resources used, including water, PPE, aggregates purchased (virgin), paper, and timber

• Increase engagement with our supply chain on sustainability by updating pre-qualification questions to include carbon accounting

Improve Efficiency

• Hold four meetings per year with key supply chain members to identify material savings

• Calculate PPE carbon footprint per capital, to set 2022 baseline

• Investigate benefits of membership to Supply Chain Sustainability School

Diversify

• Promote and deliver technical workshops to five clients per year to pilot the use of asphalt with increased RAP content

• Investigate opportunities for the expansion of our drainage treatment facilities across the UK • Invest in trials to re-use grey water within our gully trucks and on our drainage treatment plants

Innovate

Actions 2030

• Reduce water consumption by 25% from baseline

• Reduce PPE carbon footprint per capital by 30% from 2022 baseline

• Ensure that our Scope 3 carbon footprint is monitored and create a target of tCO 2 e per £1m project spend

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Supporting Disciplines - Communication and Collaboration

MANAGE, MONITOR AND REPORT In order to nurture innovation, open discussions and collaboration are essential to achieve our ambitions. Action groups, client workshops and supplier events will provoke, challenge and galvanise teams to adopt or try new technologies, and create the mechanism to ask for investment and support.

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ACTIONS 2024

• Create an annual FM Conway sustainability report that collates achievements throughout the year and identifies next steps to meet objectives • Create a mechanism for recording and tracking collaboration with industry bodies, universities and suppliers • Hold 10 low carbon workshops each year with stakeholders, recording the outcomes and reporting all findings to the relevant internal business sector • Prioritise clients who have carbon and sustainability highest on their agenda, creating a stakeholder engagement plan • Promotion of FM Conway’s innovation scheme, Big Idea, to achieve 50 sustainability submissions on an annual basis

• Quarterly blog of recent sustainability and carbon news within FM Conway

• Quarterly “column” asking guest speakers from the senior team or clients to contribute their own thoughts about carbon and sustainability

• Assemble a Carbon Stakeholder Team to drive initiatives around the business and promote innovation

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Supporting Disciplines - Knowledge and Training

MANAGE, MONITOR AND REPORT FM Conway has an established training schedule and a number of mandatory e-learning modules which all staff must complete within three months of being with FM Conway. All of our people have a training matrix by role and are required to attend a variety of training events. Our people should understand what they can do in their own jobs to reduce GHG emissions.

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ACTIONS 2024

• Review environmental training offered online

• Create a mandatory e-learning module to promote, enhance and understand how all departments can contribute to carbon savings • Review company induction slides on the environment and update where necessary; include carbon saving targets, objectives and responsibilities for all employees to support a sustainable company • Create mechanisms for recording attendance of employee forums, working groups, “Think Tanks”. Feedback must be captured and shared within the business

Actions 2030

• All employees to complete a carbon e-learning module

• All employees to sign up to a carbon code of commitment to reduce carbon directly under their control

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Definitions

ACRONYM/TERM DEFINITION

GHG

Greenhouse Gases as defined by gov.uk

CO₂e is the universal unit of measurement to indicate the Global Warming Potential (GWP) of GHGs, expressed in terms of the GWP of one unit of carbon dioxide. TCO₂e stands for tonnes of carbon dioxide equivalent

TCO 2 e

RAP

Reclaimed Asphalt Pavement

All Direct Emissions from the activities of an organisation or under their control. Including fuel combustion on site such as gas boilers, fleet vehicles and air-conditioning leaks

Scope 1

Indirect Emissions from electricity purchased and used by the organisation. Emissions are created during the production of the energy and eventually used by the organisation

Scope 2

All Other Indirect Emissions from activities of the organisation, occurring from sources that they do not own or control. These are usually the greatest share of the carbon footprint, covering emissions associated with business travel, procurement, waste and water

Scope 3

EV

Electric Vehicles

HVO

Hydrotreated Vegetable Oil

FSC

Forestry Stewardship Council

PPE

Personal Protective Equipment

NGO

Non-Governmental Organisation

The system of removing carbon not directly related to your business, by sequestration using trees and other carbon sinks or funding projects which reduce carbon being emitted

Offsetting

Natural Capital

The world’s stock of natural resources

CAP

Carbon Action Plan

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NET ZERO STRATEGY 2021 - 2030

EXCELLENCE Great people delivering great work, always

CARE As a family business we act with care and compassion

INNOVATION Our passion is to always find a better way

INTEGRITY A business committed to doing the right thing

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