In 2007 we adopted a Group-wide environmental policy, which will help us to embed environmental efficiency into our operations. Our main environmental impacts are in the area of energy consumption, water usage, and waste production. We are working on ways to minimise all three of these impacts.

One of our major accomplishments in 2007 has been the collection for the first time of consistent data on energy usage, water usage and waste production at our main production sites. Gathering the data has helped to raise awareness of our resource use and promote action. Our sites have increased recycling or moved towards incineration as opposed to putting waste to landfill. 2007 also saw two of our Jordanian facilities working towards ISO 14001 certification.

Our manufacturing and operations are energy intensive, and we will continue to investigate ways to reduce our energy use. At several sites we are looking at solar energy generation to reduce our reliance on carbon dioxide producing fossil fuels. We are also starting to implement energy efficiency projects, including energy saving lighting, more efficient variable frequency drive air compressors, increased insulation, and more efficient office equipment.

Many of our sites are located in arid countries where water scarcity is a pressing concern. Supported by our monitoring and measurement process, we have programmes in place across our sites to minimise water usage and to decrease water waste. In some instances, these programmes may require the installation of new equipment that is more water efficient. We also clean waste water where possible before returning it to external treatment plants.

Another priority is waste reduction. We manage our waste responsibly and continually look for further opportunities to reduce resource inputs as well as to reduce waste. Although hazardous waste and other production waste had always been measured and appropriately disposed of, our focus on gathering data has led to a greater level of awareness, which has in turn led to increased waste reduction and recycling of non-hazardous waste. In addition we continue our multi-site commitment to steel, aluminium, cardboard, plastic, paper and glass recycling.

Initiatives launched in 2007:

• Jordan: Installed photocell mixers and purchased new energy efficient variable frequency air compressor.
• US: Replaced fast coaters and drying ovens with more energy efficient models.
• Algeria: Reduced the amount of cardboard and plastics that go to landfill by 80%.
• Portugal: Purchased energy efficient equipment and increased water recycling.

Targets for 2008:

• Achieve ISO 14001 certification at two facilities in Jordan.
• Investigate solar energy use at facilities in Jordan, Portugal and Algeria.
• Investigate purchasing renewable energy in the US.
• Centralise the system for recycling of plastics, carton and paper at facilities in Portugal, Jordan and Algeria.