Annual Report and Accounts 2014

 

Sustainability Report

Statement from the Chief Executive

For DCC, sustainability is seen as being integral to our overall strategy to build a long term, profitable business. It is not a standalone topic and we continue to integrate objectives and metrics in respect of material sustainability issues into internal reporting and planning processes.

The UK Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 introduced mandatory reporting of gender ratios and carbon emissions for large quoted companies incorporated in the UK. Although these are not legal requirements for DCC, being incorporated in Ireland, they are addressed in this Report.

DCC is a high performing and dynamic international business. Our devolved management structure and diverse businesses require a high level of ambition, flexibility, entrepreneurial spirit and skill; we are very fortunate to have these qualities in our employees. Their continued commitment and performance will be fundamental to the future success of our businesses.

Health and safety continues to be a key management focus at all levels of the organisation. Investing in effective training, safety controls and a strong safety culture is an ethical, legal and fiduciary responsibility which we take very seriously. We are pleased to report that both lost time injury1 (LTI) metrics (frequency rate and severity rate) have continued to decrease: by 12% and 14% respectively against the prior year. While the trend is positive we remain committed to our ultimate objective of zero LTIs, as stated in the DCC Group Health & Safety Policy which is available on our website.

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The implementation of a Group wide energy and carbon reporting IT platform and the use of engine monitoring systems in HGVs has increased our ability to track and manage energy usage more effectively and to identify opportunities to achieve further energy savings. At a Group level, over the past three years carbon intensity has reduced by 28% on a per revenue basis and by 14% on a per employee basis while increasing by 2% on a per profit basis.

The G42 guidelines for sustainability reporting were issued in May 2013, updating the previous G3 guidelines which may continue to be used for reports published before 31 December 2015. The Sustainability Committee has formally discussed the changes arising from the G4 guidelines to identify the steps necessary for DCC to meet the new requirements. The strong emphasis on materiality within the new guidelines is a positive step. We will consult more widely with investors and other stakeholders to assess their expectations and the value of reporting to this new standard.

Profile, Boundary and Scope of Sustainability Reporting+-

This Sustainability Report follows the same reporting cycle and fiscal year as the Annual Report, to 31 March 2014, and includes all Group subsidiaries. Joint ventures are not included in the carbon emissions or LTI data. There are no significant changes from previous reporting periods in the scope, boundary or measurement methods applied in this Report and there is no restatement of data from the 2013 Sustainability Report.

Within this Sustainability Report and in the wider Annual Report we address the issues that are material to the sustainability of our business. These include our people, health and safety, business ethics, environment and economic contributions. Given the diversity of the Group’s business activities, at a subsidiary level some issues are more material, for example raw material supply chains in the health and beauty businesses and process safety within the energy businesses. The Operating Reviews at this page include commentary on the issues that are material to ongoing business sustainability – including stakeholder relationships and key risks.

This Report meets the requirements of the level C+ standard, as identified in the content table at this page. Summary criteria for the recording and reporting of lost time injuries and carbon emissions are available on the DCC website3. Feedback on this Report is welcome and should be addressed to John Barcroft, Head of Group Sustainability or David Byrne, Deputy Chairman and Senior Independent Director.

Governance, Structures and Processes+-

The Sustainability Committee, chaired by the Chief Executive, met four times during the year. The Committee includes divisional and subsidiary managing directors and senior Group executives and is tasked with identifying how the concepts of corporate sustainability can be used to augment and strengthen our businesses.

During the year we benchmarked our sustainability report against a group of over 100 companies within the FTSE350. Adherence to a reporting standard and external assurance placed us high on transparency. However there are improvement opportunities in relation to materiality assessment and engagement. The results from this benchmarking study will inform the development of our sustainability reporting in the current period, within the context of a devolved organisational structure and the trend towards more integrated reporting.

Specific issues that have been identified as material to the long term sustainability of the Group’s businesses are reported on and reviewed at regular subsidiary and divisional board meetings.

Stakeholder Engagement+-

Stakeholder input is important to our work on sustainability and we welcome all opportunities to engage in that regard.

We continue to respond to SRI questionnaires on environmental, social and governance issues4. To date, direct investor interest and feedback has been limited. We anticipate and welcome increased engagement arising from our listing in the FTSE250 and the likelihood of more integrated reporting in the future.

Subsidiary management are also key stakeholders and our relatively flat organisational structure supports close engagement with subsidiary, divisional and Group management.

Material Aspects+-

Material aspects were initially determined by the Corporate Sustainability Working Group (the forerunner to the Sustainability Committee), following consultations with senior executives around the Group. A materiality matrix, with levels of importance to stakeholders and to DCC forming the two axes, was used to rate a wide spectrum of sustainability issues, allowing those that ranked highly on both axes to be prioritised for reporting. Over time these have remained consistent with people, health and safety, business compliance and ethics, environment and economic contribution considered to be material issues at a Group level. As in previous years, qualitative and quantitative data relating to these issues is provided in this Report as detailed in the GRI content table on this page. Policies on these aspects and on related areas are available on our website.

Individual divisions and subsidiaries have additional aspects that are of particular relevance to them depending on their business sector – for example customer engagement, supply chains, waste reduction, water conservation and resource scarcity.

Our People +-

DCC continues to grow its employment numbers and develop its international employment reach. During the year ended 31 March 2014 we increased our employment numbers by 399 to 10,202 people, approximately 90% of whom are in permanent employment. This overall increase is due to continued acquisition activity and ongoing organic growth.

An analysis of DCC employment by division and by geographic area is as follows:

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Division

Employee numbers

31 March 2014

%

 

 

 

DCC Energy

4,685

46

 

DCC Technology

1,841

18

 

DCC Healthcare

1,765

17

 

DCC Environmental

999

10

 

DCC Food & Beverage

854

8

 

DCC Corporate

58

1

 

Total

10,202

100

 

 

 

 

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Geography

Employee numbers

31 March 2014

%

 

 

 

UK

7,606

75

 

Ireland

1,755

17

 

Continental Europe

814

8

 

Other

27

<1

 

Total

10,202

100

 

 

 

 

Diversity and Equal Opportunities +-

This continues to be an area of focus for DCC in recognition of the value we place on the variety of characteristics which make individuals unique and embrace the benefits of a workforce with diverse skills, qualities and experience.

In 2013, we published and distributed the DCC Group policy statement on diversity and equal opportunities to all Group companies and since then we have been focusing on actions to improve the diversity of our workforce. We acknowledge that the business sectors in which the Group operates have not supported the achievement of the gender balance we aspire to, either at employee or at senior management level. All our businesses are focussed to address this and, to gain momentum, one of the actions we took in 2013 was becoming a member of the Employers Network for Equality and Inclusion (ENEI). ENEI is the UK’s leading employer network, covering all aspects of equality and inclusion issues in the workplace, and also operates in the other countries where we have a presence. Membership gives all DCC companies access to a range of practical support services, including:

  • Access to learning and development
    – master classes, workshops and training courses
  • Access to advice and guidance on equality and inclusion issues
  • Opportunities to benchmark and share good practice
  • An advice and guidance helpline
  • Developing and promoting thought leadership

Following the introduction of reporting of gender ratios by the UK Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 we include an analysis of DCC’s gender ratios as follows:

 

Employment Numbers

Gender Ratio Male:Female

 

All employees

10,202

67:33

Senior managers5

177

85:15

Board members

11

73:27

 

 

 

Talent Development +-

The talent, innovation and entrepreneurial flair of our employees have been essential to our strong growth to date.

In light of our ambitious growth plans we are revising our approach to the development of talent in the year ahead in order to identify and develop people with the skills and capability to drive and support the achievement of these plans, particularly as we expand our geographic reach. 

The DCC Graduate Programme is another element on our talent development strategy. This programme commenced four years ago with the objective of creating a pipeline of high potential emerging talent to complement the development of future business leaders for DCC.

This two year programme offers our graduates an exceptional opportunity to participate in three placements across three different industry sectors and usually in at least two different geographies. The programme is differentiated by the content and pace of the placements which ensure that graduates work on complex, critical and demanding projects. These, along with the diverse industry nature of the placements and regular learning modules, provide significantly accelerated development.

Employee Engagement+-

Employee engagement has also been a critical element of our growth to date. Our larger businesses have been monitoring employee engagement over the last few years and developing actions plans as a result. Certas Energy has used the results of their engagement survey to improve internal communication and support the company rebranding exercise.

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Certas Energy – 2014 Winner of Best Internal Communication of a Rebrand Awarded by Transform Award Europe

An internal survey showed GB Oils that, having built its business through acquisitions, there was an opportunity to improve internal communications and to create a single brand identity among its employees. The company’s 2013 rebrand as Certas Energy was the culmination of a project which built upon the learnings from the survey and sought to introduce a new business strategy, way of working and corporate identity.

Certas created a set of brand values and adopted “Doing it right, together, keeps our customer happy” as an employee mantra. The new brand identity was first introduced to 250 senior managers at a conference with the board of directors. The rebrand was then launched to the rest of Certas’ employees through a UK-wide roadshow that consisted of 90 separate events. An e-learning course and video were also made available to any employee who could not attend an event. Other methods included a company intranet, email and news bulletins, branded merchandise distributed amongst employees and redecoration of the head office and some depots in a style designed to reflect the core values of the rebrand.

A Transform judge says “The success is in the results; the employees were engaged, management was happy and the new brand was integrated”.

Established by Communicate magazine, the Transform Awards Europe have recognised excellence in brand development since 2010. The programme is the industry benchmark for brand evolution, brand development and brand transformations.

Compliance and Business Ethics+-

DCC seeks to achieve the highest standards of business ethics and legal compliance in all our activities. The Group Compliance function supports leadership teams in ensuring that our activities are carried out in a legal and ethical manner.

The key message of our Compliance Programme is that managers and employees across the Group should be Doing the Right Thing at all times. This means not merely following the laws and policies that apply to their work: it also means exercising good judgement to ensure that their actions are seen as fair and reasonable.

Our Group Business Conduct Guidelines, which are available on our website, set out the standards that are expected of employees across the Group in a range of areas, including conflicts of interest, bribery and corruption, and dealings with customers and suppliers. More specific policies and guidelines are provided where needed.

During the year, over 80% of employees in management, commercial, sales, finance and related roles across the Group completed detailed online training on our Business Conduct Guidelines. Other employees were provided with briefings tailored to their roles. In addition, employees in certain positions received further training and guidance on competition law, data protection, anti-bribery & corruption and other compliance risks.

Every business assessed its exposure to bribery and corruption risks during the year as part of the risk assessment process undertaken by all Group subsidiaries. In addition, more detailed risk assessments were carried out in relevant business units which deal with organisations in recognised high risk jurisdictions or areas of industry.

The Group did not pay any significant fines or incur any non-monetary sanctions in respect of non-compliance with applicable laws or regulations or relating to the use of products or services during the year.

Employees across the Group are encouraged to raise a concern if any of our activities is being undertaken in a manner that may not be legal or ethical. Concerns can be raised to a member of management in the business where the employee works or to our Head Office using a dedicated confidential whistleblowing line. Our internal policies make clear that retaliation against any employee who raises a concern is prohibited.

We have recently revised our Business Conduct Guidelines to reflect changes in the Group and in our operating environment. These Guidelines will be rolled-out across the Group in 2014 and will restate our commitment to Doing the Right Thing. In addition, we will be enhancing our existing whistleblowing facility, providing the option to employees of the Group to raise their concerns with an independent party if they wish to do so.

Health & Safety+-

The safety of our employees, contractors, customers and others who may be affected by our operations is of paramount importance. The DCC Group Health and Safety Policy sets out the Board’s commitment to continually improving H&S management systems and safety cultures – viewed as positive drivers of business performance.

Each business maintains appropriate health, safety and environmental management systems and, in some instances, these are accredited to international standards such as ISO140016 and/or OHSAS180017 where there is a strong business case to do so. Risk control measures – engineering, procedural and behavioural – are implemented and monitored to confirm their effectiveness and to identify improvement opportunities.

An IT platform is being rolled out to increase the reach of existing HSE forums and facilitate greater communication of best practice and collaboration on HSE standards across the Group. The extensive depth and range of HSE experience and expertise is a significant strength and benefits both individual subsidiaries and the Group as a whole.

Health and Safety Performance

Both lost time injury metrics have continued to decrease against the prior period as shown in the chart on this page. Key themes for maintaining our objective of further reductions in LTIs include active encouragement of near miss reporting, safety awareness programmes and demonstrable leadership by line managers.

In the Energy and Environmental divisions, which have higher HSE risk profile, specific metrics and targets (for example in relation to driving performance, spills, near miss reporting, process safety indicators) are in place and reviewed on a monthly basis.

Dedicated board level HSE committees are established to provide additional oversight of HSE.

Certas Energy’s Safety F1rst initiative continues to strengthen safety culture. High levels of awareness are maintained through specific themed interventions and prominence in communication channels.

The Safety F1rst brand and approach has now been adopted and localised by all businesses within the Energy division.

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Environment+-

Carbon Emissions

From 1 October 2013, carbon reporting has become mandatory for large quoted companies incorporated in the UK. DCC have been publicly reporting carbon emissions since 2011 and are well positioned to meet this new standard.

The DCC Energy and Carbon Reporting Guidelines, based on the Greenhouse Gas Protocol, set out in detail the scope and sources included in the DCC Group carbon footprint.8

As part of our Climate Change Strategy, we have committed to reducing carbon intensity by 15% in 2015 against a baseline of FY2011. At a Group level, carbon intensity has reduced by 28% since FY2011 on a tonnes CO2e per revenue basis. This has been achieved by operational efficiencies minimising the increase in absolute carbon emissions (9% since FY2011) against a background of significant revenue growth. Group wide carbon intensity metrics can also be expressed in terms of per employee (reduction of 14%) and on operating profit basis (increase of 2%). However, given the diversity of our business activities, Group level carbon intensity metrics are of limited value. Instead our focus is on subsidiary specific carbon intensity metrics that can be more clearly aligned with operating efficiencies, for example emissions per unit of product delivered or manufactured. Subsidiaries continue to identify opportunities to reduce energy usage through greater efficiency in vehicle routing and engine monitoring, installation of energy efficient technologies and careful analysis of energy consumption patterns. The case study opposite highlights the initiatives undertaken by EuroCaps.

In the prior year a new energy and carbon reporting IT platform was successfully rolled out across the Group. The web based system increases the efficiency of data collection, supports mandatory and voluntary carbon reporting requirements and provides a tool to analyse energy consumption patterns with a view to identifying cost savings.

Details of our carbon emissions are set out in the charts. Total emissions increased by 2% from the prior year. New acquisitions and organic growth have increased emissions, offset by increasing operational efficiencies and management focus on reducing energy consumption. Over the past four years transport fuels (principally from the energy and environmental divisions) have consistently been the biggest single contributor at 72% of total emissions. Electricity use is highest in the processing and manufacturing operations within the environmental and healthcare divisions.

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Absolute CO2e emissions
(‘000 tonnes) by source

Year ended 31 March 2011

Year ended 31 March 2012

Year ended 31 March 2013

Year ended 31 March 2014*

 

 

 

 

Scope 1

On site fuel use

9

8%

9

8%

10

8%

11

9%

Company transport

83

71%

85

73%

91

73%

92

72%

Scope 2

Electricity

24

21%

23

19%

23

19%

24

19%

 

Totals

116

 

117

 

124

 

127

 

 

 

 

 

 

 

 

 

Absolute CO2e emissions
(‘000 tonnes) by division

Year ended 31 March 2011

Year ended 31 March 2012

Year ended 31 March 2013

Year ended 31 March 2014*

 

 

 

 

 

DCC Energy

62

54%

63

53%

72

58%

74

58%

DCC Technology9

6

5%

6

5%

7

5%

6

5%

DCC Healthcare

11

10%

11

10%

12

10%

14

11%

DCC Environmental

23

19%

28

24%

27

22%

27

21%

DCC Food & Beverage

14

12%

9

8%

6

5%

6

5%

Totals

116

 

117

 

124

 

127

 

 

 

 

 

 

 

 

 

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EuroCaps is one of Europe’s leading softgel contract manufacturers. Manufacturing and supplying over two billion softgels annually to customers across the globe, the company specialises in providing total solutions for its customers through partnership, innovation and excellent customer service.

In 2010 Eurocaps, entered into a Climate Change Agreement (CCA) in partnership with the UK Food and Drink Federation which committed the company to reducing carbon emissions in return for an exemption from the climate change levy applied to utility bills. Since then, EuroCaps has taken a proactive approach to managing energy consumption and have met their CCA annual target for the third consecutive year.

Following an internal study involving localised monitoring and data logging equipment, a number of potential low cost, quick win initiatives were identified and successfully implemented. Software modifications of our building management system allowed managers to remotely shutdown HVAC systems for predetermined periods reducing energy use by 11%. In the warehouse, installing energy efficient light fittings and PIR’s reduced electricity consumption by 14%. Additional projects such as timed shutdown of compressed air equipment and the introduction of standard weekend shutdown operating procedures have resulted in an absolute decrease in carbon emissions from 2,975 to 2,562 (14%) tonnes CO2e since 2011. In relative terms, their carbon intensity metric (CO2e per unit produced) has reduced by 9% over the same period and they are confident of meeting the FY2015 target with new projects planned for the current year. Carbon reduction and cost savings – a win win for the environment and the company.

Transport and heating fuels from non-renewable sources make up the direct sources of primary energy purchased within the Group. In total they represented 1,259,458 Gigajoules (GJ) of energy with road diesel, natural gas, gas oil and other fuels accounting for 81%, 9%, 8% and 2% respectively. Indirect energy consumption amounted to 196,424 GJ from electricity purchased. Green tariff electricity accounts for less than 1% of indirect energy purchased.

Scope 3 emissions are indirect emissions outside of our immediate operational or financial control, for example air travel, extraction of raw materials, supplier emissions, consumption of products and waste disposal. While we have not systematically quantified Scope 3 emissions, the use of products sold within the Energy division is a significant source of carbon emissions. The use of oils, LPG and natural gas sold by DCC Energy subsidiaries accounted for approximately 26.0M tonnes of CO2e emissions, a slight increase from 25.6M tonnes in the prior year reflecting an overall increase in the total volume of products sold in the reported period. Upstream, indirect emissions of 5.3M tonnes are also generated from the extraction, refining and transport of these fuels to the point of combustion.

CDP (formally the Carbon Disclosure Project)

In November 2013, DCC was again included in the Irish Climate Disclosure Leaders index which is based on responses to the CDP investor questionnaire. The CDP is a global initiative, funded by the investment community, which encourages companies to publicly report their carbon emissions and the steps they are taking to address the challenge of climate change. From 2014 DCC will be included in the FTSE350 CDP Report.

Environmental Compliance and Spills

No fines for non-compliance with environmental laws and regulations (for example in relation to waste packaging, waste electronic and electrical equipment, pollution or environmental licencing) have been incurred in the reporting period and no environmental cases have been brought through dispute resolution mechanisms.

Potential for significant environmental impact from loss of containment of products arises principally in our oil businesses, specifically from sea fed oil terminals. These terminals are regulated under the EU Seveso II Directive and are subject to regular inspection by the regulatory authorities. Containment controls include regular tank inspections, alarm systems and operating procedures. No significant spills from storage facilities were recorded in the reporting period.10 However, given the potential impact on the environment from even a relatively small quantity of oil, all spills are treated seriously and responded to appropriately in accordance with established emergency procedures.

Ozone depleting substances (ODS)

As ODS continue to be phased out in accordance with international agreements, fugitive emissions of ODS from DCC subsidiaries remain at immaterial levels. From 1 January 2015, the use of R22 (a widely used refrigerant gas) will not be permitted and the installation of new equipment is planned for the current year to ensure compliance with this requirement.

In the reporting period, a total of 36kgs of R22 was lost to the atmosphere as fugitive emissions from air conditioning systems in DCC subsidiaries. This is equivalent to 0.00198 tonnes of CFC-11 (0.00121 in prior year), the international metric for measuring ODS. Ammonia gas and other refrigerants used (e.g. R404A, R410A, R407C) in the businesses have an ozone depletion potential of zero.

Economic Contributions+-

A key measure of our sustainability is the economic value generated from our activities over the long term. Other sections of the Annual Report present detailed financial information, which is summarised in the graphic below to represent the principal value added to stakeholders.

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In the year ended 31 March 2014, £597 million of added value was created, taking account of the cost of inputs from suppliers of £10,684 million and revenue of £11,281 million. This value added is distributed in the form of remuneration to employees of £359 million, corporate taxes of £22 million, interest to lenders of £51 million and dividends11 to shareholders of £65 million. £100 million is retained in the business to fund further growth.

Krystian Fikert established MyMind with the goal of offering flexible, affordable and accessible mental health care for all. Using both web-based and in-person supports MyMind delivers early intervention and prevention, resulting in substantial improvements for the users of its service. In addition, MyMind implements an innovative pricing structure for its services, with those who can afford to pay higher rates subsidising clients who do not have the financial means to pay for the help they need.

MyMind currently works with over 80 fully qualified and accredited professionals, operating out of four centres in Ireland. Since it began its work MyMind has supported over 5,000 clients, running in excess of 800 sessions per month and has already made massive strides in reducing the stigma attached to mental illness.

Community Support

Across the DCC Group, subsidiaries are involved in activities to support local communities and charities. Employees are actively involved in fundraising and giving their time and effort to these campaigns, supported by direct financial contributions.

Last year we renewed our multi-year partnership with Social Entrepreneurs Ireland (SEI). SEI is an independent, non-profit organisation which identifies and supports social entrepreneurs in growing their ideas from concept to reality on a national scale. The 2013 Awards ceremony was addressed by the President of Ireland, Michael D Higgins with all the eight finalists demonstrating innovative solutions to address national social issues. Krystian Fikert, one of the finalists, is profiled above.

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Laleham Health and Beauty in the Community

Laleham Health and Beauty actively supports initiatives to attract young people to the fields of science and technology. Company employees have presented at local schools and participated in road shows organised by TeenTech, an organisation which encourages young students to consider a career in the world of science and technology. A team from Laleham set up a working production line at the TeenTech annual event at the Copperbox arena, Olympic Park, London attended by 500 school children and 30 national companies – such as Rolls Royce, JVC and Sony.

In addition, the Company is a longstanding supporter of Bath University, providing one year placement opportunities to both chemical and mechanical engineering students. Laleham also sponsors the Skillstree programme run by Basingstoke Consortium, a local charitable organisation, which is designed to raise the skills and aspirations of local school children and prepare them for working life. Laleham recently received the Skillstree award for Best Supporting Employer for work place involvement.

1. A Lost Time Injury is defined as any injury that results in at least one day off work following the day of the accident.

2. Issued by the Global Reporting Initiative (www.globalreporting.org), a not for profit organisation that has developed the leading sustainability reporting framework.

3. http://www.dcc.ie/~/media/Files/D/DCC-Corp/pdfs/carbon-LTI-reporting-criteria-a.pdf

4. For example Sustainalytics, EIRIS, Manifest.

5. Senior managers are defined as subsidiary senior executives whose remuneration arrangements are reviewed and approved at Group level and the Group and divisional senior executives listed on this page of the Annual Report.

6. Exertis Supply Chain, Squadron Medical, TPS and all businesses within the Environmental division.

7. Exertis Supply Chain and all businesses within the Environmental division.

8. Carbon dioxide emissions make up over 99% of the Group’s greenhouse gas emissions. Other greenhouse gases emissions include fugitive refrigerant gases (185 tonnes CO2e) and fugitive landfill gas emissions from a closed landfill in Scotland where 80% of the methane is captured to generate renewable energy (801 tonnes CO2e). These are not included in the reported DCC Group carbon emissions.

9. Including DCC head office emissions (117 tonnes CO2e)

10. Significant is defined as a major environmental event which exceed EC reporting thresholds under Control of Major Accident Hazards (COMAH) regulations.

11. Paid and proposed for the year ended 31 March 2014

 

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Content table for GRI Level C

GRI Section No.

Standard Disclosure

Reported

Report Page

1.1

Statement from Chief Executive

Fully

65

2.1 – 2.10

Organisational Profile

Fully

4-5

3.1 – 3.8

Profile, Boundary and Scope

Fully

65

3.10 – 3.12

Restatement

Fully

65

4.1 – 4.4

Governance

Fully

80-84

4.14 – 4.15

Stakeholder Engagement

Fully

66

EC1

Direct Economic Value

Fully

70

EN3

Direct Energy Consumption

Fully

70

EN4

Indirect Energy Consumption

Fully

70

EN16

Greenhouse Gases

Fully

69

EN17

Other Indirect Sources

Fully

70

EN19

Ozone Depleting Substances

Fully

70

EN23

Spillage

Fully

70

EN28

Environmental Compliance

Fully

70

LA1

Workforce

Partially

66

LA7

Rates of Injury

Partially

65

SO2

Corruption

Fully

68

SO6

Political Contributions

Fully

114

SO8

General Compliance

Fully

68

PR9

Product Compliance

Fully

68

Independent Assurance Report to the Directors of
DCC plc

We have been engaged by the directors of DCC plc (DCC) to perform an independent assurance engagement in respect of selected aspects of DCC’s sustainability performance, disclosed in its Sustainability Report for the year ended 31 March 2014 (‘the Report’).

What we did and our conclusions+-

We planned and performed our work, summarised below, to obtain the evidence we considered necessary to reach our assurance conclusions on the Selected Sustainability Data.

What we are assuring (Selected Sustainability Information)+-

  • The selected sustainability data for the year ended 31 March 2014 marked with the symbol * presented in the Report (the Selected Sustainability Data).
  • DCC’s declared Global Reporting Initiative (GRI) application level of C+ of the GRI 'G3' Guidelines as stated on this page of the Report.

The scope of our work was restricted to the Selected Sustainability Information for the year ended 31 March 2014 and does not extend to information in respect of earlier periods or to any other information in the Report.

How the information is assessed (Reporting Criteria)+-

DCC’s Reporting Criteria at http://www.dcc.ie/~/media/Files/D/DCC-Group-Plc/pdfs/carbon-LTI-reporting-criteria-a.pdf and the GRI G3 Guidelines at https://www.globalreporting.org/reporting/guidelines-online/G3Online/Pages/default.aspx set out how the Selected Sustainability Data is measured, recorded and reported.

Assurance standard applied1+-

ISAE 3000 and ISAE3410.

Level of assurance2+-

Limited Assurance.

Understanding DCC’s reporting and measurement methodology+-

There is not yet an established practice for evaluating and measuring sustainability performance information. The range of different, but acceptable, techniques used can result in materially different reporting outcomes which may affect comparability with other organisations. It is therefore important to read and understand the Reporting Criteria at http://www.dcc.ie/~/media/Files/D/DCC-Group-Plc/pdfs/carbon-LTI-reporting-criteria-a.pdf and the GRI G3 Guidelines at https://www.globalreporting.org/reporting/guidelines-online/G3Online/Pages/default.aspx that DCC has used to evaluate and measure the Selected Sustainability Data.

Limited assurance work performed on the Selected Sustainability Information +-

We performed the following activities:

  • Evaluated the design and implementation of key processes and controls over the Selected Sustainability Data;
  • Assessed the source data used to prepare the Selected Sustainability Data for 2013/2014, including re-performing a sample of calculations;
  • Carried out analytical procedures over the Selected Sustainability Data;
  • Examined on a sample basis the preparation and collation of the Selected Sustainability Data, as well as making inquiries of management and others;
  • Performed site visits to ten sites to review systems and processes in place for managing and reporting on sustainability activities, and examined source documentation on a sample basis;
  • With respect to the carbon figures disclosed on this page of the Report, we evaluated the methodology and basis of converting the original reported unit into carbon emission equivalent tonnes. We agreed a sample of emission factors back to the stated source (as detailed in the Reporting Criteria);
  • Reviewed the Selected Sustainability Data disclosures; and
  • Assessed the GRI Index on this page of the Report for compliance with the GRI application level requirements for C+. This consisted of examining supporting documentation, on a sample basis, where relevant.

Our conclusions+-

As a result of our procedures nothing has come to our attention that indicates:

  • The Selected Sustainability Data for the year ended 31 March 2014 is not prepared in all material respects with the Reporting Criteria; and
  • DCC’s declared GRI application level of C+ on this page of the Report is not fairly stated in all material respects.

DCC’s responsibilities+-

The directors of DCC are responsible for:

  • designing, implementing and maintaining internal controls over information relevant to the Selected Sustainability Data;
  • establishing objective assessment and Reporting Criteria for preparing the Selected Sustainability Data;
  • measuring DCC’s performance based on the Reporting Criteria; and
  • the content of the Annual Report.

Our responsibilities+-

We are responsible for:

  • forming independent conclusions, based on our limited assurance procedures;
  • reporting our conclusions to the directors of DCC; and
  • reading the other information included in the Report as well as the Chief Executive's Review, Who We Are, Strategy, Business Model, Corporate Governance Statement and Report of the Directors sections of the DCC plc Annual Report, and considering the consistency of that other information with the understanding gained from our work, and considering the implications for our report if we become aware of any material inconsistencies. Our responsibilities do not extend to any information other than the Selected Sustainability Data in the Report.

This report, including our conclusions, has been prepared solely for the directors of DCC as a body in accordance with the agreement between us, to assist the directors in reporting DCC’s sustainability performance and activities. We permit this report to be disclosed in the Annual Report for the year ended 31 March 2014, to enable the directors to show they have addressed their governance responsibilities by obtaining an independent assurance report in connection with the Selected Sustainability Data. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the directors as a body and DCC plc for our work or this report except where terms are expressly agreed between us in writing.

PricewaterhouseCoopers
Chartered Accountants
Dublin, Ireland
20 May 2014

Notes

1. International Standard on Assurance Engagements 3000 (Revised) – ‘Assurance Engagements other than Audits and Reviews of Historical Financial Information’ issued by the IAASB. International Standard on Assurance Engagements 3410 – ‘Assurance Engagements on Greenhouse Gas Statements’ issued by the IAASB.

2. Assurance, defined by the International Auditing and Assurance Standards Board (IAASB), gives the user confidence about the subject matter ('Sustainability Information') assessed against the Reporting Criteria. Reasonable assurance gives more confidence than limited assurance. The evidence gathered to support a reasonable assurance conclusion is greater than that gathered to support a limited assurance conclusion.

3. We comply with the applicable independence and competency requirements of the Chartered Accountancy Regulatory Board (CARB) Code of Ethics.