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Calor’sSustainabilityReview 2016

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2016SUCCESSFUL HIGHLIGHTS AND PERFORMANCE

1,852tonnes of metalrecycled

14%increase in the numberof video conferences

15sites installed LED floodlights, saving 130 tCO₂ annually

110,295generated by PV panels, equivalent to 45tCO₂ saved

£37,630raised for the Alzheimer’s Society

1,263

450

4.5/5

325%

6%employees attended training courses

new trees planted at Stoney Wood

increase in flexible workingapplications

reduction in Calor’s carbon footprint

222employees volunteered as part of Start from the Heart

Customer SatisfactionScore

kWh

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STEPHEN’S FOREWORD

Our vision is still to be the Sustainable Energy Company of Choice for Rural Britain

Another year has passed and it’s been another year where Calor continues to strive to improve its sustainability credentials.

When it comes to our carbon footprint, we’re well aware that our largest contribution comes from moving LPG around the country. This is an integral part of the business and unavoidable. However, that doesn’t mean we can’t do it more efficiently and we’ve initiated a number of projects this year to look into what we can do. This includes looking at the aerodynamics of the vehicles and converting a number of our fleet to use dual fuel - LPG and diesel - as well as a new system for filling and transporting our cylinders that will also result in more efficient trucks and fewer journeys, which is a double carbon saving for the business.

In 2016, it’s become apparent that our cities’ air quality is suffering from diesel engine emissions. Our delivery fleet runs on diesel - which is more carbon efficient but emits nitrogen oxides (NOx) and particulate matter. Calor has been selling Autogas for many years, which is LPG for transport. When combusted, Autogas burns cleanly, emitting no particulate matter and very low NOx emissions in comparison to diesel. We have been promoting the benefits of Autogas this year to the public, government and industry. It’s not just talk, we’re converting two of our cylinder delivery vehicles to run with dual fuel engines, using LPG and diesel, for use in cities. Furthermore, when our first delivery of bioLPG arrives in 2017, this will be significantly lower in carbon as well as burning cleanly and our bioLPG delivery trucks will also be using bioLPG in their tanks. Liquefied Natural Gas (LNG) is another fuel that is

Stephen Rennie, Managing Director

cleaner and more carbon efficient than diesel. Calor is expanding its LNG business and supporting the development of three new LNG refuelling stations for HGVs.

For Calor, our responsibility as a sustainable business extends to our customers, employees and the communities in which we operate. There are many examples in this review but I’d like to highlight the development of Stoney Wood, where many Calor employees have volunteered over the course of the year. It has been transformed from an area overgrown with bindweed and brambles to one filled with over 2000 saplings, a pond, bug hotels and areas for locals and school groups to enjoy the nature around them. We have also been working with the Association for the Conservation of Energy and a social enterprise called Hubbub to improve energy efficiency in rural areas.

2017 will be the final year of our current sustainability targets that were set in 2015. We’ll be working hard this year developing a new sustainability strategy, complete with new targets that can improve the business in 2018 and thereafter. This is in addition to the tough 25% carbon reduction target set by our parent company, SHV Energy. We’re looking forward to the challenge!

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WELCOME TO CALOR’S 2016SUSTAINABILITY REVIEW

CONTENTS

Page 2

Page 3

Page 4

Page 5

Page 6

Page 17

Page 19

Page 22

Page 26

Page 27

Page 9

Successful Highlightsand Performance

Welcome To Calor’s 2016 Sustainability Review

Sustainability Principles

Progress Against Targets2016

Environment

Innovation

Community

Workplace

Marketplace

Memberships

- Carbon- Resource Management- Efficient Transport and Logistics- Sustainable Transport- Environmental Incidents- Biodiversity

- Energy Efficiency and Renewable Technology- New Markets and Products

- Community Investment- Charity Partnerships- Employee Volunteering

- Safety And Well-being- Employee Engagement- Training And Development- DNA Leadership- Calor Graduate Programme- Myton School: Helping Students Prepare For Their Future- Training of Applications, Processes and Systems (TAPS)- Equality, Diversity and Inclusion

- Sustainable Procurement- Customer Safety and Customer Service- Rant and Rave- Sustainable Use Of Our Products

Stephen’s Foreword

This report contains information on progress against our sustainability targets running from 2015 to 2017, as well as many other developments and activities undertaken by the business in 2016.

For Calor, sustainability is not only the continued success of the company, but also our impact on the environment, the communities around our sites and the people within our business. Calor is part of a global group of LPG companies owned by the Dutch company, SHV Energy. For SHV Energy, it is their stated desire to pass the company onto the next generation in a better shape than they inherited it.The 2016 sustainability review explores the main issues that affect our five key sustainability areas: Environment, Innovation, Community, Workplace and Marketplace. There are also updates on our corporate social responsibility projects and other sustainability related initiatives.

This report covers the reporting period of January to December 2016 and includes information from all our operations, including our 50 Calor Centres, eight main operational sites and two LPG import terminals.

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SUSTAINABILITY PRINCIPLESCalor is committing to, and investing in, a sustainable future across five areas of our business, promoting a balanced consideration of economic, social and environmental factors in all business activities. To manage sustainability across our business, we have adopted the five impact areas advocated by Business in the Community (BITC):

ENVIRONMENT INNOVATION COMMUNITY WORKPLACE MARKETPLACECalor is an environment conscious organisation, working to minimise our impact on the environment through proactive energy, transport, biodiversity, waste and water management.

Calor is leading the LPG field in new thinking, investing in cutting-edge products andservices that incorporate renewable and new-generation technologies designed to bringenvironmental and economic benefits to our customers today and tomorrow.

Calor is in touch with the communities in which we operate, promoting andsupporting initiatives which contribute positively to the safety and sustainability ofboth local neighbourhoods and society as a whole.

Calor employees deliver unrivalled expertise within the rural energy industry. This isachieved by investing in our people through schemes such as Continued Professional Development, health and well-being initiatives, apprenticeships, and defined and transparent career structures, as well as sustained commitment to improving Health and Safety – Calor’s number one priority – bothwithin our workplace and the wider marketplace.

Calor is committed to providing our customers with service second to none. Excellentcustomer service at Calor means added value comes as a standard – it is in our nature to go the extra mile.

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PROGRESS AGAINST TARGETS 2016

ahead of schedule on schedule behind schedule

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PROGRESS AGAINST TARGETS 2016 CONTINUED

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PROGRESS AGAINST TARGETS 2016 CONTINUED

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CARBONAs an energy supplier, we take our environmental responsibilities very seriously and take proactive steps to minimise the environmental impact of our activities and carbon footprint.

Carbon Trust Standard

Calor has been working towards Carbon Trust standards since 2011. The Carbon Trust Standard is a voluntary certification and mark of excellence that enables all organisations to demonstrate their ability in cutting their carbon footprint. It shows our employees, shareholders, customers and suppliers that we are committed to making future reductions. The Carbon Trust Standard provides a framework for organisations to enhance their operational sustainability, improve energy efficiency and at the same time cut costs, by following best practice to measure and manage greenhouse emissions.

Calor’s Carbon Footprint

Calor measures its Scope 1 and 2 emissions as well as some Scope 3 emissions. Scope 1 encompasses our carbon emissions based on

all directly consumed LPG, Natural Gas or other fuels at our sites. Scope 2 includes all of our purchased electricity and Scope 3 covers all business travel. Together, they encompass as much of our carbon footprint as possible.

Calor’s overall carbon footprint is primarily made up of emissions from delivery vehicles. As the largest contributor to our carbon footprint, we are always looking at how to make our delivery vehicles more efficient, as well as reducing the number of vehicles on the road and the distance they travel. We run a continuous vehicle replacement programme, which ensures that we are operating modern vehicles, with good standards of fuel efficiency.

ENVIRONMENT

5,840

35,919

5,523

32,679

5,836

31,715

6,132 5,650

35,440 33,327

115,000 110,295

41,759 38,202 37,551 41,572 38,977

2012 2013 2014 2015 2016

Total CO2 emissions (tCO2)

Total Green Electricity Credits (tCO2)

Grand total

On-site PV generated electricity (kWh)

Calor has installed solar PV arrays at 5 of our sites in Exeter, Immingham, Saxham, Stoney Stanton and Warwick. These produced over 110,295kWh throughout the year. This is enough to power 28 homes and offset 45tCO₂ of carbon.

110,295 kWh

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In 2016, Scope 1 emissions decreased by 5.9%. This was mainly due to a reduction in the quantities of Autogas (LPG used for vehicles) and natural gas consumed over the year. Scope 1 also showed that our transport emissions had reduced by 6% due to the steps Calor has taken to make our fleet more efficient.

The quantity of electricity purchased decreased during 2016, leading to an 8.5% reduction in Scope 2 emissions. This is in part due to ongoing works on boilers and equipment at our Canvey Island LPG Terminal, which has meant less power has been required. Our Canvey terminal’s operations are heavily influenced by the weather; if the weather is cold, more gas is imported to meet demand and if the weather is warm, more electricity is required to keep the LPG compressed and cool. As the weather changes were less extreme this year, Canvey’s power demand was decreased. Scope 3 emissions also decreased by 3.4% due to a reduction in air travel.

Accurate Reporting

We are constantly evaluating our data sources to ensure we can report our

carbon footprint in the most accurate way possible.

The carbon intensity of our operations has reduced in 2016. Even though volumes of LPG sold increased by 1%, our total carbon footprint still decreased by 6%. This was due to increased energy efficiency in our operations.

For the period of 2015 to 2017, we have set a carbon target relating specifically to our Scope 3 emissions, business travel. Our target for 2016 was to reduce employee business related travel by 3% through increased use of video conferencing. By the end of our three-year target (at the end of 2017) we aim to achieve a 5% reduction. Each year, we find the data increases in accuracy due to adaptations in collection methods.

Scope 1 - Directly consumed fuels, e.g. gas, diesel, LPG

Scope 2 - Purchased electricity

Scope 3 - Business Travel

2015-2016Emissions

-5.9%

-8.5%

-3.4%

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RESOURCEMANAGEMENT

IN 2016 CALORGENERATED

As a distribution business, we generate a relatively small amount of waste and consume little water during the course of our day-to-day operations. However, we are still committed to reducing the amount of waste created by our operations and finding ways in which it can be reused or recycled.

This year, Calor has been increasing its focus on waste management. The 2015 integrated and centralised waste management strategy has been carefully monitored and built upon. For the first time, data on waste generation and its disposal routes were available for the vast majority of Calor’s sites and waste streams. This has enabled the business to scrutinise its performance and understand why some sites are able to recycle a lot more than others.

As part of Calor’s target to divert 55% of waste away from landfill annually, monitoring waste production has been essential. A league table that tracks recycling percentages at all sites is now produced on a monthly basis and is available for all employees to view. By raising awareness of waste recycling and management, we hope that employees will think about how much waste is produced and minimise the quantity produced in the first place.

313 TONNES 150 TONNES 1852 TONNESTOTAL 463 TONNESof general

wasteof mixedrecycling

of metal recycled

That is the equivalent to 463 small cars or 64

Asian Elephants.

Our corporate recycling target is set at 55%, which means that 55% of our non-hazardous and non-metal waste is recycled. In 2016, Calor recycled 32%, a total of 150 tonnes. Of the remaining 68% of waste that was not recycled, 44% was sent to an energy from waste facility. Calor’s ambition remains to increase our overall percentage of waste which is recycled and reduce the amount of waste that is sent to energy from waste or landfill.

WASTE HIERARCHY

1

2

3

4

5

6

PREVENTION

MINIMISATION

REUSE

RECYCLING

DISPOSALLEAST

FAVOUREDOPTION

FAVOUREDOPTION

ENERGYRECOVERY

The Waste Hierarchy, illustrating how to reduce the environmental impact of waste.

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An integral part of our business is the refurbishment of our customer returned cylinders to avoid the creation of large volumes of metal waste. Hazardous waste legally has to go through a specific disposal procedure, defined in law. Similarly, as scrap metal has a market value, it will always be recovered.

When comparing data from 2016 with 2015, there are several trends to note. The first is the increase in Scrap Metal Recycling to 1,852 tonnes; the improved accuracy of data received has been a key factor in the increase. A small reduction in the quantity of General Waste can be seen; whilst Dry Mixed Recycling has stayed relatively stable. Calor produces Hazardous Waste such as cabinet heaters, paint waste and batteries. However, the increase of hazardous waste was due to a leak at our Saxham plant, which resulted in rainwater becoming part of our hazardous waste stream until it was fixed. This had no external effect, but resulted in an increased frequency of collections to accommodate the additional water.

For 2017, we have developed a new waste management action plan in conjunction with our main waste contractor, Biffa. The action plan includes a number of targets such as waste education by e-modules, waste audits and a roadshow to sites. Working with Biffa, we’re also ensuring that sites are managing their waste correctly, for example having appropriately sized bins and collection schedules, all of which lead to improved data and lower costs for the business. Finally, a network of site-based waste contacts has been created to improve the implementation of the strategy, all of which should ensure that we manage to achieve our 55% target by the end of the year.

Type of Waste Produced

Total waste generated

General waste

Mixed recycling

Metal recycled

Hazardous

Quantity (Tonnes)

3,420

313

150

1,852

1,105

*The increase in hazardous waste was due to a leak at our Saxham plant. This had no external impact, but resulted in increased collections due to the additional water.

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EFFICIENT TRANSPORTAND LOGISTICSAs an energy distributor, our vehicles are always on the move, making sure that LPG and LNG are available to homes and businesses across England, Scotland and Wales. Our aim is to minimise the environmental impact of our deliveries, by continuously looking to optimise our transport logistics.

Carbon Savings

As transport accounts for almost 65% of our carbon emissions it is an important focus area. We have concentrated on making both our journeys and vehicles as efficient as possible. In order to reduce the number of unnecessary journeys, Calor install telemetry on tank installations, this enables Calor to know when a tank needs to be refilled. In 2016, Calor installed over 10,000 telemetry units, taking the total number to 83,163.

In 2016, Calor investigated and implemented a number of different projects that helped reduce our emissions.

Palletisation: modernising our gas cylinder filling and distribution

We implemented phase one of the palletisation project, which involved the automation of our Coryton cylinder filling plant. Palletisation is modernising our method of filling and distributing gas cylinders, which has several advantages in particular with reference to carbon. Firstly, we can reduce the trailer fleet by 90%. Palletisation allows for larger trailers to be purchased, which results in an initial carbon reduction of approximately 5% per vehicle. As a result of the larger trailers holding additional loads, there is a 10% reduction in kilometres travelled as well as a reduction in the number of hours spent on the road. This represents a further carbon saving. An additional advantage is the reduction in manual handling, which means there is a reduced risk of injury.

The palletisation plant at Coryton went live in November 2016 and Port Clarence is scheduled to go live for autumn 2017.

MINIBULK HYBRID DRIVE: DEVELOPING THE WORLD’S FIRST HYBRID LPG TANKERCalor secured funding from the Department for Transport and Innovate UK to develop the world’s first hybrid LPG tanker. This project is being run in collaboration with Magnomatics Ltd. The project consists of hybrid drive technology coupled to a Kinetic Energy Recovery System (KERS). The KERS harvests electrical energy while braking and stores it in a battery set. This energy is then used to drive an electric motor when accelerating from a stationary position. Returning the electrical energy while accelerating then reduces the amount of fuel required from the vehicle fuel system. The total project is estimated at £1.92 million, of which the UK Government is providing £1.26m. Calor will convert two of its 18t LPG tankers as part of this project in 2017.

Old loose trailer that will be replaced by the palletisation

project

New palletisation ready trailers

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CALOR PUSHINGINNOVATION IN TRANSPORT

Air quality: using cleaner fuels for delivery vehicles

Air quality is a topic that is very important to Calor, as we are part of the problem and the solution. Diesel engines have been shown to emit dangerous levels of NOx and particulate matter (PM) and the majority of our delivery vehicles are diesel. However, LPG is a cleaner, alternative fuel for most vehicles. Calor has already converted a number of its fleet to use LPG-diesel technology, including 25 Euro V 44-tonne trucks, which have been in use for a number of years. The conversion of a Euro VI 44-tonne truck is still in the development phase. The cost has already been outweighed by significant fuel savings and a reduction in carbon and NOx emissions. In comparison to our planned fleet replacement programme, in 2016, we did not replace as many vehicles as expected. Calor bought 17 tractor units,

as opposed to the proposed 20, 15 cylinder trucks instead of the proposed 34 and 21 of the 24 bulk tankers in the original plan. All of the new vehicles, however, were replaced by the most efficient units, the Euro VI model, which meets the highest EU standards for vehicle emissions. LPG/Diesel Conversions

During 2016, Calor committed to converting two cylinder delivery trucks to run on LPG/Diesel technology. This is the first time Calor has converted this type of vehicle. As a result of the conversion, the vehicles will be cleaner and will produce less NOx and PM as well as delivering a carbon saving. The first lorry to be converted was one of our 15t cylinder rigid vehicles. The second vehicle will be completed in the first half of 2017.

Aerodynamics

Calor has been investigating how its tractor units can become more aerodynamic, and therefore more fuel efficient and more cost efficient. It is estimated that this change could save approximately 48tCO2 annually, 450 litres of fuel per annum per tractor unit and £26,000 annually. These savings can be achieved through the adaptation of tractor unit design and standardising the fleet. Whilst there are already methods of increasing aerodynamics on tractor units, the aim of the project is to commission a specific design and develop a bespoke management kit for Calor’s vehicles.

Electric Pump

Research has been done into the potential of a battery powered LPG pump. Calor’s bulk delivery vehicles all have a pump on board, which is used to transfer the LPG to the customer’s tank. Currently Calor vehicles use a 220hp, diesel engine to drive the much smaller 8hp pump. A correctly sized battery-powered pump would provide an energy efficient, cleaner and quieter alternative, as the engine will not need to be running during delivery. This is being developed in Italy. Once the system is fully designed and fitted to our vehicle, it will return to the UK to get the necessary approvals before field testing can begin.

E4 E5 E6 Totals

Tractors 27 65 31 123

148

23

226

19

0

21

96

23

128

33

0

77

Bulkers 18te

Bulkers 26te

Rigids 7.5te-18te

Fleet Composition

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SUSTAINABLE TRANSPORTEmployee travel is a core part of doing business and is often the best way to build relationships with clients and colleagues. However, recognising that changing our travel habits can both reduce our environmental impact and realise financial benefits for the business, employee travel and commuting has become an area of focus.

In 2016, Calor ran the Cycle2Work scheme for a second year. The aim is to encourage employees to get a bike and by cycling to work, get healthier, fitter and reduce their own environmental impact. In 2016, 23 employees registered to take part in the scheme. We will continue to run the Cycle2Work scheme in 2017.

SKYPE FOR BUSINESSCalor has continued to promote the use of alternatives to business travel such as video conferencing and web meetings, via Lync – now Skype for Business (SFB). SFB is an online meeting and webinar tool. By using SFB to call into meetings, business travel can be greatly reduced, reducing carbon emissions, and saving money and time for employees. Between 2015 and 2016, the total number of video conferences rose from 729 in 2015 to 829 in 2016, an increase of 14%. Employee business related journeys fell by 3% in 2016; the increased use of SFB for conferences shows the increasing popularity of online meetings, indicating we should see a further reduction of business travel in the future.

2015 449 743 729 29,5981,372

Year Difference

2016 484 899 829 49,6721,537

+35 +156 +100 +20,074+165

% increase 7.7% 21% 14% 68%12%

TotalConferences

TotalParticipants

Total Peer to Peer Video Conferences

TotalSessions

TotalConferenceMessages

Cycle2Work scheme

encouraging employees to cycle and get healthier, fitter and reduce their environmental impact

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As a responsible business, we are committed to reducing our environmental impacts and continually improving our environmental performance as an integral part of both our business strategy and licence to operate.

Calor had eight environmental incidents in 2016; all were of a minor nature, dealt with quickly and had no long lasting effects to the environment.

Two of the reported incidents occurred during the excavation of a brownfield site during the construction of a new building when contamination (from many years previously) was found. The contaminated ground was fully excavated and disposed of properly.

A further two incidents were uncovered during routine legionella testing, with localised bacterial infections in kitchens found. Both infections were removed with cleaning and necessary sterilisation.

One incident was due to an Environmental Health investigation of a complaint about excessive noise at a Calor site during the evening. As a result, the site has introduced reduced working outside of normal daytime hours.

ENVIRONMENTAL INCIDENTS

BIODIVERSITYWith many of our sites located on large plots of land, we often find ourselves sharing our working environments with a rich variety of wildlife, something that we seek to protect and encourage.

After the construction of the bulk tanker access road at Canvey Island in 2014, new habitats were created for the endangered Great Crested Newt found at our LPG import terminal. In 2016, these habitats were tested by a team of environmentalists who found Great Crested Newt DNA in the water, confirming that the new habitats were being used by the newts. Additionally, two new owl boxes were installed in the northern tree belt.

Canvey is also home to a number of swans. Seven cygnets hatched on site in 2016. Unfortunately, two were killed by foxes, two had to be sent to a wildlife sanctuary for treatment and were later released and the remaining three cygnets migrated from the site. The employees on site continue to observe and care for the biodiversity in the area, taking advice from local agencies on how to improve the site’s suitability for species.

Another incident was as a result of a hydraulic hose splitting on a Calor vehicle whilst on a Calor site. The hydraulic oil spill was relatively small and immediately cleared up using the readily available spill kits. The final two incidents were caused by third parties causing an environmental nuisance to Calor sites and staff. Both have been resolved at a local level.

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We will continue to support the development of the latest energy efficient technology to help the business and our customers save money and energy. We are always on the lookout for new low-carbon and renewable energy technologies that can be combined with Calor processes to provide greener solutions.

LED Lights

Between 2014 and 2016, 15 sites across the country had their external floodlights changed to LED, which will provide annual savings of approximately 130 tCO2. These sites included Calor centres and Operational sites in: Barnsley, Bedford, Boston, Coryton, Exeter, Grangemouth, Immingham, Inverness, Lincoln, Oxford, Plymouth, Reading, Saxham, South East London and Tachbrook Park. Over 300 lights were installed at the sites over the course of the three years.

ENERGY EFFICIENCY AND RENEWABLE TECHNOLOGY

INNOVATION

Canvey Terminal Heating Plant

As part of our sustained effort to reduce our carbon footprint, Calor has committed to replacing two boilers at our Canvey Island LPG Terminal. Calor’s Canvey Terminal is the largest single consumer of energy, both natural gas and electricity, within our business. In the second half of 2016, energy efficiency consultants have been working with Calor’s own engineering team to identify how energy and carbon savings can be achieved at Canvey. The heating and cooling plant at Canvey has been there since the terminal was opened in the 1960s, so the potential to improve efficiency is immense. The old boilers will be replaced by new steam boilers, using propane as the main fuel with natural gas as a backup. These boilers were originally running on diesel and natural gas, therefore the new boilers present a more

environmentally friendly alternative. This installation will be complemented by the inclusion of an alternative air source cooler for the re-liquefaction compressor condensers. Previously, the compressor coolers used water from the Thames, which impacted efficiency as the machinery was dependent on water temperature, as well as incurring extensive maintenance costs. The use of an alternative air source cooler provides energy savings as pumping river water is no longer necessary.In addition to these new pieces of equipment, Calor has purchased a monitoring package, allowing us to track the performance of the new plant. The entire project has an estimated cost of just under £1 million and with forecasted savings of around £146,000 per annum in energy, with a carbon saving of 670 tCO2 per annum. The work will commence in 2017 with completion scheduled before the end of the year.

130 tCO2saved every year due to LED lighting

Aerial view of Canvey Island LPG terminal

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We believe that sustainability and innovation go hand in hand. Innovation challenges business as usual and helps create new business models that embed sustainability and keep our business growing.

BioLPG

Over the course of 2016, a number of employees received training in preparation for the commencement of bioLPG sales in 2017. BioLPG is a new product for Calor and is far cleaner than fossil fuel alternatives often used in ‘off grid’ areas. It is made from completely renewable feedstocks and could provide greenhouse gas savings of up to 80%. The people trained included Cylinder and Bulk Sales Representatives (for both domestic and commercial sales), Telesales and Sales Support. The training included information on bioLPG production and distribution. Around 90 employees were trained in eight regional groups, with each training session lasting four hours.

The training will also be extended to Finance, Drivers and Calor Operational Centre employees later in 2017.

NEW MARKETSAND PRODUCTS

LNG

As well as being a cost effective alternative to traditional fuel sources, Liquefied Natural Gas (LNG) is much cleaner and produces fewer carbon emissions. LNG is also non-toxic and non-corrosive. These qualities make LNG a safer fuel system in comparison with oil-based systems that have a risk of water and ground pollution in the event of spillages.

LNG in Transport

In 2016, Calor agreed to set up three new refuelling sites in Lockerbie, Donnington Park and Grantham. We have committed significant resources to set up these sites and expand the network, using the latest generation refuelling kit to ensure we remain the number one LNG public refuelling provider. Further investment has been agreed for a rolling upgrade programme of the existing LNG refuelling stations.

NEW PRODUCTSIn 2016, Calor developed a number of new appliances. Some were formally launched and others have gone into user testing in order to determine how we bring them to market. The new applications include three models of dedicated LPG generators, two models of water pump and a sewerage pump. These gas driven applications are cleaner and remove the risk of land contamination by petrol and diesel from engines.

IMAGE

Station commissioned at Donnington Park

LNG FOR CUSTOMERSIn 2016, Calor commissioned three new plants using LNG for industrial applications including two new Aggregate Industries sites and Cochran boilers.

Cochran Boilers: New customer

Cochran switched from oil to LNG in 2016. This switch reduced its CO₂ output by 170 tonnes, reducing the site’s CO₂ emissions by 28% and saving around £11,000 in terms of annual running costs. LNG will be used to power their new research and development centre as well as providing space heating.

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COMMUNITYINVESTMENT

Local Stories Calor provides funding support the Association for the Conservation of Energy (ACE) and their 'Local Stories' programme. ACE represents the energy efficiency sector in the UK, and works to help improve energy efficiency whilst driving productivity. ACE is made up of campaigners, researchers and lobbyists. Their work

COMMUNITY

Calor wants to engage with our local communities to minimise the impact from our business operations, foster local relationships and to contribute to a better quality of life for all local residents.

is focused on influencing the development of a long-term, rational policy framework to support increased investment in energy efficiency across the UK. ACE has begun to translate the multiple benefits of energy efficiency into clear and engaging ‘local stories’. These combine facts and figures about the potential for energy efficiency in local buildings with stories from people who work to deliver energy efficiency and people who have felt the benefits themselves. The resulting reports engage national and local politicians, and the local press, and are helping to build support for more energy efficiency investment.

Fuelling Connections

Calor also sponsors Hubbub, an environmental charity that has devised the ‘fuelling connections’ programme. This uses social media such as Facebook to connect people living in communities with energy efficiency advice and fuel conservation tips as well as making them aware of all the local help available to them. One of the methods used is setting up Facebook ‘tips’ pages, with tips supplied by various community organisations, charities and local authorities. The advice includes how to improve insulation, which in winter months can have a drastic impact on health and well-being. Hubbub connects with those who are struggling to pay bills and manage their heating

needs, particularly those who prioritise other bills and expenses over heating. Research has shown that using social media is one of the most effective ways of reaching people who are fuel poor. With 70% of people surveyed planning on using their heating less, Hubbub helps to ensure communities are educated on how to do this safely.

By putting the two organisations together in MP constituencies, Calor is combining the crucial intelligence generated by ACE’s activity with the 'feet on the ground' that Hubbub create through their work. Supporting Hubbub and ACE is part of Calor’s Future of Rural Energy (FREE) initiative to help tackle rural fuel poverty, which we have been campaigning about for over 7 years.

www.hubbub.org.uk/fuelling-connectionswww.ukace.org/local-stories/

Truro and Falmouth MP Sarah Newton at

an energy efficiency roundtable event.

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We adopt a national corporate charity for which the majority of Calor’s corporate fundraising efforts are undertaken.

The Alzheimer’s Society has been Calor’s charity since 2014. Between 2014 and 2016 Calor raised over £100,000 for the Charity. In 2016, Calor raised £37,600 through a range of events including: monthly dress down days, cupcake days across numerous sites, a car park auction, crazy golf and Elf the Boss, in which employees paid to vote which member of the Board should dress as a Christmas elf for the day.

In November 2016, 17 very brave Calor employees completed a skydive to raise money for Alzheimer’s Society. Together they raised £11,000 from the jump.

CHARITYPARTNERSHIPS

SPANCalor has been supporting St Peter’s Aid for the Needy for over three years and 2016 proved to be the most successful year yet. During December, employees at Tachbrook donated toys, food, gifts and wrapping paper to local children from families in crisis. Amongst the huge number of gifts donated were some lovely crochet items made by the Calor Crochet Club. Sixteen Calor employees also helped wrap the donated gifts. Over 50 rolls of wrapping paper were used to wrap gifts for over 150 local children.

Gift of the Gas

Gift of the Gas is Calor’s ongoing fundraising activity, whereby £5 is donated for every cylinder returned rather than the customer claiming their deposit under their Cylinder Refill Authority Agreement. The proceeds are then donated to the Alzheimer's Society. In 2016, Gift of the Gas raised £20,395. The top three sites were Norwich Calor Centre, Stoney Stanton Direct and Saxham Direct – with all Calor sites collecting over 4,000 cylinders for the year.

“JACKO”In December 2015, Steve Jackson, an employee based at Stoney Stanton site, sadly passed away. As a result of Steve’s support for Guide Dogs, his colleagues at Stoney Stanton sponsored a guide dog named Eddie and an additional puppy Jacko (named after Steve). Staff at Stoney Stanton have also held further charity events such as a golf day and a raffle, which raised over £3,000 in continued support for the Guide Dogs.

Our brave skydive volunteers including our HR Director Geraldine Goddard

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EMPLOYEEVOLUNTEERING

Staff from Calor’s filling plant in Neath have volunteered at two local sites this year. Every year employees from Neath pick litter from the local canal. In 2016, the volunteers covered 15 miles and collected 21 bags of rubbish.Other staff volunteered at a local primary school, helping paint dark wood panelling in the assembly hall for a more neutral colour to lift the feeling of the room.

Other Start from the Heart days in 2016 included continued support for the Honeypot Children’s charity at our Fawley Customer Operations Centre (COC) and staff from Elland COC helping at a local school.

NEATH – START FROM THE HEART

We actively encourage all our permanent employees to give something back to local communities. Start from the Heart is our scheme, which gives employees one day’s paid leave each year to do something that can make a difference to the local community.

Stoney Wood

In 2014, Calor decided to turn some unused and unloved land at Stoney Stanton into a nature area, for locals and staff alike, called Stoney Wood. Over 2,000 trees have been planted over the course of two years. This site has become a regular location for Start from the Heart volunteers. In time the wood is intended to provide an excellent educational site for the local school as well as supporting local biodiversity.

In July, around 150 Calor employees from Stoney Stanton and Tachbrook Park volunteered to use their Start from the Heart day to help develop the area. Combined, the volunteers spent a week on the site digging a pond, erecting picnic tables, laying a new path, putting down over 40 tonnes of woodchip and planting over 400 new trees to fill any gaps in the wood.

Calor volunteers at Stoney Wood

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It is very important for us to promote and protect the well-being of our employees; they are the heart of the business. Our health and safety management system is based on ISO: 18001 and we conduct regular audits to ensure we are compliant with the latest regulatory and industry standards.

We want to create a great place to work, one where all our employees are fully engaged with our values and products.

COLIN, Calor’s intranet site, is used as a vital resource for company information, whether it’s for safety, HR or Finance, and is readily available for Calor employees across the country to access easily. In 2016 COLIN had over 730,000 visits from 1,511 users over the year and 400 articles published covering a range of topics. COLIN was also used to help promote events such as Tax Awareness, Sustainability and two Safety Weeks.

In 2016, the Instagram profile of the Calor Board was launched on COLIN to enable them to share pictures of their activities, such as site visits, meeting updates and charity events.

Calor sets challenging safety performance targets for itself and was disappointed with its safety performance in 2016. The number of Health and Safety reportable accidents was higher than 2015 with 43% being caused by the manual handling of cylinders and 39% as a result of slips, trip and falls. We are investing heavily in equipment to reduce the amount of manual handling and our targeted 2017 safety objectives will help reverse the accident trend.

SAFETY ANDWELL-BEING

OUR 2016 SAFETY AND WELL-BEING PERFORMANCE IN NUMBERS:

467Consumer incidents

and consumer near miss

Near miss anddangerous occurrence

Environmental incidents

Securityincidents

Workplaceincidents

136

8

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1,208Hazard spots

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WORKPLACE

EMPLOYEEENGAGEMENT

Employee Engagement Forums

In 2016, Calor organised two rounds of employee engagement forums across the country. The purpose of these forums is to update employees on business news and developments and encourage more engagement and direct interaction with senior managers from the business. The forums took place in May and October 2016.

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TRAINING ANDDEVELOPMENT

DNA LEADERSHIP We are keen to ensure that support is provided to all our employees, equipping them with the skills required to maintain our leading edge in LPG and LNG.

In 2016, we exceeded our target of £840,000 by investing £950,000 in staff training and development. Highlights include:

397 internal and external training courses provided1,263 employees attended training courses (an increase of 260% on the previous year)14,272 training hours for employees 457 employees attended Driver CPC training18 employees started or carried on with further education courses 10 managers and team leaders went through NEBOSH, a work based health and safety qualification29 managers started the new DNA Leadership Programme 5 new Vehicle Maintenance Apprentices employed3,476 visitors to our Training and Development Centre at Stoney Stanton

Calor launched our DNA leadership programme in 2016, which is part of a wider training and development strategy. The DNA programme aims to increase the strength of leadership capability across our front-line leader population. This development will be visible through behaviour and capability changes, and an increased number and quality of candidates for development opportunities. We will also expect to see this development reflected in a higher number of internal promotions, development moves and international secondments. Calor aims to send around 250 employees through this course over the coming years.

2016 TRAINING AND DEVELOPMENT HIGHLIGHTS:

260%

3,476

14,272

457

increase in employees attending training

courses

visitors to centre at Stoney Station

training hours for employees

attended Driver CPC training

Team building event for current DNA Leadership Team

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13,285e-learning lessons accessed in 2016

MYTON SCHOOL: HELPING STUDENTS PREPARE FOR THEIR FUTURE

TRAINING OF APPLICATIONS, PROCESSES AND SYSTEMS (TAPS)

2016 saw the creation of a ‘Career Journey’ partnership with Myton School in Warwick. Over a period of three months, the Development and Resourcing (D&R) team worked with students on their employability skills. This included: preparing for interviews, creating a CV and general confidence building. Our D&R team prepared all the materials, including guest speakers from across the business to share their experience of apprenticeships, the industry and business. Calor also trained the teachers to be able to deliver the programme in-house.

The TAPS team provide training for our systems such as COLIN, Calor’s intranet, and new equipment. TAPS also develop eLearning lessons to allow training for systems remotely and can be targeted to certain people in the business or business wide. E-Learning has been developed for a number of departments such as Finance, SHE and IT. In 2016, the TAPS team trained 607 people face to face/over the phone and 13,285 e-learning lessons were accessed over the year.

CALOR GRADUATE PROGRAMMEIn 2016, we revised the existing Graduate Programme to ensure focus is on developing a diverse set of commercial skills to ‘futureproof’ the business. The scheme now ensures that all candidates gain exposure to Sales & Marketing, Operations and Central Functions, which helps the graduates develop multidisciplinary and diverse skills. This new approach has seen great results so far; the graduates are building a strong network across all of our functions and gaining invaluable experience along the way. They are all successfully embedding into the company and, with structured placement and development plans, they are able to demonstrate value and immediate impact. This success will now feed into the recruitment of further graduates in 2017.

Chris Lazenby (Birmingham Calor Centre Manager) with the 2016 Graduates

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Mentoring StrategicRecruitment

FlexibleWorkingMaternity/

PaternityEntitlement

We want to attract the best talent and motivate, develop and offer equal opportunities to all our employees. We recognise the business benefits of an equal, diverse and inclusive workforce and we want to go beyond what is required by law.

In 2016, the Equality and Diversity (E&D) steering group became a council as it is now a permanent fixture within Calor. The council fulfilled their initial mandate to investigate a number of relevant issues for the company. These issues included: a mentoring project, strategic recruitment, maternity/paternity entitlement and flexible working. The result was a number of reports and recommendations, which were presented to the Calor Board for their review:

EQUALITY, DIVERSITY AND INCLUSION

The mentoring report is now being reviewed by our HR team, as part of an existing project to help personal development within Calor.The strategic recruitment review identified that we need to advertise more about the diversity of roles and people, so a recruitment video is currently being produced.

325%increase in the number of applicants for flexible

working hours

EQUALITY & DIVERSITY COUNCIL ESTABLISHED & INVESTIGATING:

A summary of the terms and conditions offered by Calor and other major employers in the sector as well as examples of best practice was presented to the Board in order to compare Calor’s current parental leave policies. Flexible working rights and how to apply for flexible working were communicated to the business, which resulted in the number of applicants for flexible working hours increasing by 325%.

The end of 2016 saw several new members join the council including a new chairperson. The E&D council will continue to work with the business in 2017 and focus on raising awareness of equality and diversity in the business.

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MARKETPLACE

SUSTAINABLEPROCUREMENTWe are dedicated to driving improvement in our supply chain in order to deliver ethical business practices. Our purchasing decisions are not solely based on price and quality criteria, but also based on positive environmental and social benefits.

Calor is in the process of reviewing its procurement policy and implementing the necessary changes to be compliant with the Modern Slavery Act. In 2016, members of our procurement team visited suppliers to conduct reviews of their supply chain and their behaviour in line with our ethics policy.

Tender documentation on our eProcurement portal now includes questions on environmental and ethical procedure within the supply chain and modern slavery. This has been in use since the beginning of 2016.

CUSTOMER SAFETY ANDCUSTOMER SERVICECalor has built an excellent reputation over many years as a trusted and reliable brand. We aim to go above and beyond what our customers expect of us, to deliver added value as a standard across our range of energy products.

SUSTAINABLE USE OF OUR PRODUCTSWe want to provide added value to our customers through sustainable energy solutions that help reduce their energy costs and consumption.

Calor has been working with the Energy Saving Trust (EST) since 2011 when our Domestic Bulk Sales team and key telemarketing personnel were trained to give energy saving advice to our domestic customers. Additional training by EST throughout 2016 has increased our number of EST endorsed advisors from 31% to 41% as well as refreshing existing advisors’ knowledge.

The EST endorsed advisors use a variety of marketing and customer facing campaigns to help and advise on how to use less energy and reduce energy wastage within homes.

RANT AND RAVEIn 2016, Calor launched Rant & Rave, a real time customer feedback tool, which allows customers to review our service via text messages. The system allows us to listen to customer feedback and establish actions to rectify any dissatisfaction. In 2016, customers submitted over 10,000 items of feedback at an average satisfaction score of 4.5/5

Score of4.5/5

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MEMBERSHIPS

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WE WOULD LOVE TO HEAR YOUR THOUGHTSWe want to make Calor a better and more sustainable business and we want to hear the views of our stakeholders. It is important for us that we integrate our stakeholders’ perspectives to inform and help us create Calor’s future sustainability strategy. Please send us your feedback on what we are doing for sustainability and how we can do it better. Email sustainability@calor.co.uk and help us become the sustainable energy company of choice for rural Britain.

Calor Gas LimitedRegistered Office: Athena House, Athena Drive,Tachbrook Park, Warwick CV34 6RLCompany Number: 303703Calor Gas Limited 2016calor.co.uk/sustainability

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