Update from John

We pride ourselves on taking a long-term view and I’m delighted to share with you that this perspective means the Stevenson’s carefully built portfolio of businesses is carbon neutral.

We have always had a commitment to using our resources wisely. It’s something we think about every day and the result is an enviable position in today’s very environment-conscious society. The ability 
to offer this status as a committed, carbon-neutral partner in the construction and resources industries is truly unique.

In 2007 Stevenson asked URS, a world leading environmental and professional services company, to undertake a Greenhouse Gas Emissions Inventory of the Stevenson Group. This was updated in May 
2008.
It concluded that as a group of businesses, we are neutral,based on our Scope 1 and 2 emissions inventory. The inventory was very extensive and an enlightening process to undertake. However, 
while we are very pleased with the result, we are not resting on our laurels. We have made a commitment to reduce emissions by 10 per cent by 2010 and are working on plans to achieve this aim. It will be more 
easily achieved in some of our businesses than in others.
Regardless, it will be a central focus for us.

As a business with a very long-term perspective, we are constantly looking at future trends that will affect our operating environment and ability to succeed in it. The carbon issue is one such trend and 
our substantial investment in land holdings has been a deliberate strategy to position the Group positively in this new era.
It’s not a matter of believing in global warming or not. It is simply recognising the need to do the right thing for the long-term viability of our businesses and our customers’ businesses.

Measuring Greenhouse Gas Emissions is an evolving practice.  We are currently in the midst of an ongoing debate about an emissions trading scheme. Ultimately, this will clarify issues such
as where or who must take account of emissions from production.  Of particular concern for us is cement and whether the associated emissions from the manufacturing of cement will be
the responsibility of the cement companies (manufacturers) or also accounted for by the concrete companies – the end users of cement.  
It doesn’t make sense to account for cement emissions twice. In reaching its conclusion for Stevenson, URS has not accounted for associated cement production emissions (in the industry
lingo – only scope one and two emissions, not scope three).

We are pioneers in this area and accept that the rules will become clearer as time progresses. For now we are delighted with the result and committed to ongoing improvement.

John Rae
Managing Director, Stevenson Group

Stevenson Group is carbon neutral as per a Greenhouse Gas Emissions inventory undertaken by URS in May 2008.

We are committed to further reducing our emissions by 10% by 2010.

We will validate the emissions inventory annually using measurement practices that are current at the time.