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Sustainability Report

Build for the world we live in

Contents2

Contents 3

Contents5 Preface6 Company profile

From family business to corporate familyGrowing and developingThe four Knauf valuesMoving beyond sustainability standardsImproving energy efficiencyIncreasing skilled labourCommitted to being best-in-class for sustainabilitySustainabability objectives for Knauf

22 Sustainable productsGypsum productsKnauf is a research and development pioneerCase studyContinuous improvement through quality managementClear documentation aids safety and sustainabilityCase study

42 Environmental and climate protectionResource and energy efficiencyEnergy efficiency measures at KnaufEmitting fewer greenhouse gasesReducing waste in our factoriesResource efficiencyProtecting biodiversity

54 True partnershipCollaboration for mutual successCustomer focus is an absolute priority

64 Reponsibility for employeesExcellent prospects from the outsetEnabling and empowering our people

74 Commitment to societyReaching far beyond the factory gates

80 GRI indicators

Preface4

Preface 5

Dear Reader,

Knauf has operated in the UK and Ireland for justover 25 years, and is part of the global Knauf familybusiness, based in Germany. This report is the firstfrom our UK operations and demonstrates ourcommitment to our social responsibility while clearlydocumenting the areas and the projects throughwhich we practise sustainability every day. We seean indissoluble link between ecology, economy andsocial commitment.

The reporting period for this report is January to December 2013, and we demonstrate ourprogression throughout the report, looking forwardinto 2014.

Thinking and Acting ResponsiblyKnauf is a family business, so sustainability is firmlyrooted in our corporate values. And commitment tothese values entails taking responsibility – for ourcustomers, for protecting the environment and for our employees.

Difficult economic times have demonstrated thatcompanies who succeed in the long term operatesustainably and responsibly. Sustained successcannot be achieved without using natural resourcesresponsibly. This has always been and will alwaysremain one of the most important corporateobjectives for Knauf. We will continue to preserveboth our environment and security of employment forfuture generations. Conserving and preserving nature– despite our manufacturing operations – has beenour priority ever since our company RheinischeGipsindustrie und Bergwerksunternehmen wasfounded in 1932.

I am KnaufWe believe that our success also relies upon usstrengthening social cohesion in the way in which we interact with our partners and society. So we are proud that we have remained a classic familybusiness which, despite the current size of thecompany, can innovate and invest quickly anddecisively. But Knauf is more than a company.

As a whole it is 25,700 personalities working inharmony together and striving to achieve both thesmall and large objectives as one. To accomplishthis, we rely on the expertise and dedication of every single employee. They are guided by ourKnauf values: Menschlichkeit, Partnership,Commitment and Entrepreneurship.

Each and every one of our employees put theirindividual stamp on Knauf and its corporate cultureevery day and everywhere. This has been the key toprogress over the past 80 years and will continue tobe essential to our success in the future.

Together with our partners, we want to makesustainability the guiding principle for our actions. As a result, we encourage close dialogue and opendiscussion with all those who value our company. So our first sustainability report for the UK is animportant milestone.

Alexander Knauf, Manfred GrundkeManaging Partners

Baldwin Knauf and Nikolaus Knauf at the official opening on the new UK visitor experience, training and administrative centre called The Cube, Sittingbourne, UK

Company profile6

Company

profileKnauf is a family business that combines tradition,sustainability and a forward-looking approach. The company is guided by four corporate principles:Menschlichkeit, Partnership, Commitment andEntrepreneurship. These act as an inner compass for employees and provide the foundation of thecompany’s success.

Knauf is well prepared to meet the challenges of the future, thanks to our innovative products, strong focus on the customer and our efficient use of naturalresources in manufacturing.

Company profile 7

Knauf is a leading international manufacturer ofbuilding materials, with its head office in Iphofen,Bavaria, Germany. The family-owned businessoperates many companies at more than 150locations in over 60 countries.

Knauf plants produce modern drywall systems,plasters and accessories, thermal insulation systems,paints, levelling screeds and floor systems, machinesand tools for applying these products as well asinsulation materials.

Headquarters of the Knauf Group in Iphofen

The Knauf Group generated approx. EUR 6.3 billion in 2013 with a workforce of some 25,700employees. In 2013, it invested ten per cent of its turnover globally in new facilities to meet ever-increasing demand.

The Knauf Group is run by Managing PartnersManfred Grundke (since 2008) and AlexanderKnauf (since 2013). Nikolaus Knauf and BaldwinKnauf joined the Shareholders' Committee in 2008and act as Chairman and Vice Chairman on anannually rotating basis.

Complete systems used worldwideKnauf manufactures and distributes gypsum andgypsum-based building and insulation materialsthroughout the world. The Group's operating rangeextends from Europe to the USA, South America,Asia through to Africa and Australia.

Innovative thinking and openness to technologicalinnovations are the cornerstones of the corporatestrategy. Knauf is constantly working to improve the quality and efficiency of construction andmodernisation. The result is that Knauf producescomplete co-ordinated building systems that areeconomical and energy efficient. Knauf systemsoptimise fire safety, thermal performance and noiseprevention and offer great versatility, creating thewidest choice when creating usable living space.

Company profile8

From family business to corporate family

OPERAT ING I N O V E R

60AT MORE THAN 150 LOCATIONS

COUN T R I E SWORLDWIDE

Company profile 9

Knauf UKThe company employs 350 people in the UK and Ireland, at itsheadquarters and manufacturing facility in Sittingbourne, Kent and its factory in Immingham, Lincolnshire. It also operates a sales and distribution operation in Dublin, Ireland.

In the UK, Knauf manufactures a range of plasterboards andgypsum-based plasters. The plasterboard range includes high-performance boards for greater fire, moisture, vapour, sound andimpact results suitable for all drylining applications. Knauf supportsthis with a complementary range of jointing compounds, fixings,plasterboard adhesives and metal systems. The Sittingbourne plantalso produces a range of gypsum-based plasters and a range ofinsulating laminate products that improve the thermal efficiency of walls and roofs.

In addition to manufacturing these products, Knauf in the UK alsosupplies a number of gypsum- or cement-based products. The GIFAand Brio range of flooring products are engineered from thehighest quality gypsum fibreboard to create strong monolithicstructures that are suitable for both underfloor heating and forachieving high acoustic performance. The Aquapanel cement-based board comes as either Knauf Aquapanel Interior or Exterior.

Aquapanel Interior is a tile backing board for areas of highhumidity and Aquapanel Exterior is a carrier board for externalrender that provides a weatherproof covering to protect the siteuntil the render is applied. Finishing products available includeKnauf Cleaneo Akustik, a decorative acoustic panel system, andVinova, a gypsum fibreboard for walls laminated in a variety ofarchitectural finishes.

Knauf Facades use SFS (Structural Framing Systems) technology tooffer exceptional levels of thermal insulation without any sacrificeof usable space by incorporating insulation within the frame of thebuilding itself.

Sittingbourne

Immingham

Dublin

Growing and developing

First gypsum plant in Perl an der Mosel

Milestones in the company's historyThe Knauf family business has its roots in Saarland,Germany and in neighbouring Luxembourg. Dr Alfons Knauf and Karl Knauf were not justbrothers but were also mining engineers who sawthe potential of the natural raw material, gypsum, in terms of faster and more efficient construction.They began to put their ideas into practice in whatwas then the middle of the Great Depression andfounded the company Rheinische Gipsindustrie undBergwerksunternehmen in 1932. They acquiredexploitation rights in their home region for a gypsummine in Schengen in Luxembourg and opened thefirst gypsum plaster plant in Perl an der Mosel.

New beginning in IphofenIn 1949, the Federal Republic of Germany came into being, starting a new phase of dynamic growthfor the company. The company began producinggypsum plaster in Iphofen in Northern Bavaria, still the site for headquarters of the Knauf Group, and manufactured the first gypsum boards there from 1958. What was then a small business grew rapidly during what has been dubbed theeconomic miracle in Germany, transforming it into a corporate family business with companiesoperating around the globe.

Knauf remains a classic family business to this day. Its success is due to three main factors: thecourage to invest and innovate; swift decision-making; and the hard work and imagination of all Knauf employees.

Company profile10

1932

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Company profile 11

1988

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Barbara-Feier 1933: seated in front Dr. Alfons Knauf (4th from left),Mathias Knauf (5th from left) and Karl Knauf (6th from left)

MenschlichkeitWe see our colleagues, our business partnersand our stakeholders as part of a big familywhere traditional principles of integrity andhumanity still count. By treating each other fairlyand by embracing diversity, we act together with social responsibility. We take care of eachother, of society and of the environment.

Company profile12

The four Knauf values

Our values: the foundation for sustainabilityKnauf believes that only a company founded on values can ensurethe sustained growth and innovative solutions needed to meet thechallenges of the future. The company was founded uponthese principles and our staff still applies them to this day.

Inner compass points the wayIn 2012, these values were updated and presented as an innercompass that guides the entire Knauf Group. These values, whichspring from the company’s vision and mission, were developed incooperation with the Knauf family.

Internal communication reaches all employeesThese values were communicated to all staff through differentmedia. Regional project managers were trained as ambassadors of company values in a broadly based campaign that reinforcedindividual letters to employees with team workshops, a film and a website.

Knauf regards these values not simply as a means of preserving its traditions but also as a means of developing the company itself.Through commitment to these values the company can extend itsmarket position, develop new business models, increase itsfinancial power and continue to attract skilled workers andmanagers.

Company profile 13

PartnershipWe work to create an environment of mutualtrust, where we are encouraged to takeresponsibility and make decisions, because we trust each other’s judgement.

EntrepreneurshipThrough an entrepreneurial style and awillingness to take risk, we have successfullygrown from a small family company into afamily-owned globally active organisation. Our continued success is driven by a spirit ofpioneering, innovation and change combinedwith a pragmatic and results-oriented approach.

CommitmentWe are committed to our work, our colleaguesand our community. Taking pride and pleasurein what we do always comes naturally to us.We always go the extra mile, achievesustainable results and provide our customerswith high quality solutions. Knauf offers realopportunities for personal growth anddevelopment, which helps to create a highlysuccessful team.

Company profile14

Moving beyond sustainability standards

Climate change requires urgent actionChanging energy policies and climate protectionobjectives frame the challenge and the opportunityfor Knauf. The combination of increasing global CO2 emissions, high energy costs and diminishingresources have stepped up the pressure to improveenergy efficiency and use renewable energy sourcesmore widely. The 2008 Climate Change Actestablished the world’s first legally binding climatechange target, aiming to reduce the UK’s greenhousegas emissions by at least 80% (from the 1990baseline) by 2050.

The explicit aim is to move to a more energy-efficient, low-carbon economy and so help the UKbecome less reliant on imported fossil fuels and lessexposed to higher energy prices in the future. Knaufhas set long-term sustainability objectives relating tokey areas such as energy and water consumption,waste generation and efficient use of naturalresources to guard the business against the potentialeffects of climate change.

Knauf faces a variety of challenges in its social and economic environment andcontinually works to develop innovative, beyond-standard solutions in response.

Energy-efficient construction is thepriorityThe construction sector is one area of economicactivity that offers the greatest potential for meetingthis target. Energy from fossil fuels consumed in theconstruction and operation of buildings accounts forapproximately half of the UK’s emissions of carbondioxide (source: ‘Construction and SustainableDevelopment’ Plain English, Constructing Excellence,2008).

One of the four key aims of Construction 2025, apartnership between the construction industry and theUK Government, is a 50% reduction in greenhousegas emissions from the built environment using 1990as the baseline. From 2019, all non-domestic newbuilds will be required to have zero net carbonemissions, with earlier dates for schools (2016) andpublic sector buildings (2018).

80%REDUC T I ON

I N U K G R E E N H O U S E G A SE M I S S I O N S B Y 2 0 5 0

2008 CLIMATE CHANGE ACT

Knauf Brio Dry Floor Screed, Dartington C.E. Primary and Nursery School

Company profile 15

The UK’s housing stock is also under scrutiny, withever more stringent new standards being introduced.Part L of the Building Regulations has been updated,and from April 2014 all new homes have to includeenergy saving features to deliver a 6% reduction incarbon emissions. The UK’s existing housing stock isalso in need of energy efficient refurbishment as it isthe oldest and least energy efficient in Europe andresponsible for nearly a quarter of the UK’s annualcarbon emissions. The Decent Homes Standard setsout the standards that social housing must meet,which include energy efficiency.

Sustainability standards prevailThese stringent standards present major challenges for private and public property owners as well asbuilders, planners and architects. When constructingnew properties or modernising existing ones, caremust be taken to choose the construction methods that comply with the requirements and conditionsfor funding. The building materials industry has aparticular responsibility here to offer convincingsolutions. It has to ensure greater energy efficiency but at the same time comply with strict requirementsfor living comfort, accessibility, flexibility and costoptimisation.

These criteria are being expressed in the form of certified standards for sustainable construction,which are gradually starting to prevail ininternational real estate markets.

In the UK this is primarily BREEAM, the BuildingResearch Establishment Environmental AssessmentMethod for buildings and large scale developments.

It sets the standard for best practice in sustainabledesign and has become the de facto measure used to describe environmental performance of buildingsand communities.

It is complemented by the SKA Rating, anenvironmental assessment tool for sustainable fit-outs operated by RICS. This movement towardcertification increases the need for manufacturers to provide information quickly and transparently onthe sustainability impact of their building products.

Responsible sourcing: BES 6001Another important standard is the ResponsibleSourcing Standard BES 6001, developed by theBuilding Research Establishment (BRE) to provideindependent, third-party verification that constructionproducts have been sourced responsibly. It checksthe products against a framework that sets out theorganisational governance, supply chainmanagement and environmental and social aspectsthe manufacturer must consider to ensure thatconstruction products are sourced responsibly.

Knauf’s laminated and non-laminated plasterboardsand gypsum plasters are certified to BES 6001, with the company achieving aperformance rating of ‘Very Good’. This applies to products from both of the company’s UK factories at Immingham and Sittingbourne and so providesdesigners with a wide selection of premiumplasterboards and jointing, bonding and texturedcompounds that are verified as responsibly sourced.

This certification is important to those customersseeking credits against BREEAM and the Code forSustainable Homes because it contributes to pointsand credits under both schemes. A ‘Very Good’rating results in products being classified as Tier 1 in Mat 2 of the Code for Sustainable Homes, andTier 3 according to Mat 03 in BREEAM 2011.

Company profile16

Improving energy efficiency

The drive to improve energy efficiency is notconfined to the building sector but affects energyintensive manufacturing companies like Knauf. This is not simply about climate change but also involvespolitics and economics, because energy prices areconstantly rising and the environment has become an important political issue. So it is important forcompanies with high energy consumption tointroduce certified energy management systems to demonstrate that they are acting responsibly.

Changes to UK legislation due to climate change areone of our major drivers in improving the efficiencyof manufacturing operations.

Knauf is already required to report its greenhousegas emissions for the EU Emissions Trading Systemand has Climate Change Agreements in place. Bothof these schemes allocate a cost to carbon fromagreed baseline figures, which will become morecostly during the next five years.

As a result, Knauf has targeted energy reductionfrom its UK manufacturing operations to mitigate thecosts associated with these schemes. We monitorchanges in legislation to ensure that we haveconsidered any future risks and/or opportunitiesavailable to us.

Conserving resources by recyclingThe imperative to use resources efficiently alsoapplies more broadly so that all companies thatprocess natural raw materials must conserveresources and use raw materials efficiently.Companies cannot justify exploiting natural resourcesrigorously because it limits the options available tofuture generations: it is not sustainable. This need toconserve resources in turn requires innovativeprocedures that use by-products from other industriesas raw materials and re-cycle existing materials soefficiently as to form a closed material loop.

Legislation is also a factor in conservation, as landfilltax in particular, is increasing annually, which willhave an impact on business costs in terms of wastegenerated. Knauf is looking internally at ways inwhich we can reduce the level of waste throughoutour manufacturing process.

Our manufacturing plants are regulated under anEnvironmental Permit, which is issued by theEnvironment Agency. It is in our best interests toensure that we have suitable control measures inplace to prevent incidents and environmentalreleases, which may incur enforcements orprosecutions, resulting in fines.

Taking all these measures into consideration, Knaufbelieves its exposure to potential regulatory, physicaland other risks related to climate change to be low, at least over the next decade. Our compliance withexisting and anticipated government policies,legislation, regulations and energy standards aimedat improving energy efficiency and limiting andreducing greenhouse gas (GHG) emissions will poseminimal regulatory risk, in large part due to ourproactive approach in this area. In the near-term, we anticipate minimal physical risk to our businessassociated with global warming, resultant climatechange, sea-level rise, changes in weather patternsand precipitation.

Manufacturing plant in Sittingbourne, Kent, UK

Company profile 17

Increasing skilled labour

Drylining and applying ready mixed plaster byspray, for instance, are both swifter to learn as atrade than traditional plastering. We have extendedthis approach to other areas such as flooring, withproducts such as GIFAfloor and Brio, which haveoverlapping edges that are easy to glue and fix.Knauf lightweight systems of construction have alsoreplaced blockwork for lift shafts and firewalls.

For the company itself, there is intense competition for well-trained and high-performing employeeswhich we have addressed by introducing strongerprofiling as an employer in the area of HRdevelopment and recruitment. Our HR policiespromote further education and training programmes,attractive career opportunities, effective health caremanagement and flexible working hours to create a better work/life balance.

A major change in UK society is the demographicshift resulting in a decreasing proportion of youngpeople, which will set another challenge for Knaufand our customers. Research for Construction 2025by Oxford Economic Forecasts found that there was a “substantial fall in apprenticeship completions inconstruction-related sectors relative to other sectors”and “low training among self-employed and skills

shortages among trade and professional occupationsinhibiting technology deployment and innovation.”

The UK Employer Skills Survey (2011) noted that“despite high redundancy and low vacancy rates,the industry continues to face significant skillsshortages with almost one fifth of vacancies classifiedas hard to fill”. Knauf is addressing this issue for theconstruction industry by devising lightweightconstruction systems that are simpler to build andrequire less training.

...the industry continues to face significant skills shortages with almost one fifth of vacancies classified as hard to fill.UK Employer Skills Survey (2011) ”“

Company profile18

Committed to being best-in-class for sustainabilityInterview with Ian Stokes, Knauf UK Managing Director

Sustainable action is increasingly important in all areas of life. What special responsibility does Knauf have?”Across the Knauf Group globally we recognise a clear link between a successful business and taking responsibility for the environment

and wider society. So sustainability pays and we are respondingaccordingly, not only in the way that we operate but also in the way ourproducts are used in the market. In our manufacturing, for instance, we areconstantly monitoring the way in which we use precious resources so that wecan reduce the amount of energy, water and raw materials that we consume. We have a responsibility to find and use the most sustainable materials in our production process, so the bulk of the material that we use inmanufacturing is recycled. An example of this is our plasterboard, which ismanufactured from 100% recycled paper and from flue gas desulphurisedgypsum (FGD), a by-product of the cleaning of power station emissions. Butwe also have a responsibility to reduce the energy and materials ourcustomers use in the construction process, and to ensure that our products areemployed in a sustainable manner. So, for example, we are promotingschemes to reduce waste and increase recycling, and Knauf has remained aclassic family business to this day. Its success can be attributed primarily toshort decision-making paths, courage to innovate and invest, and theindustriousness and imagination of all Knauf employees.”

““ The UK is not alone in moving towards increasingly sustainableconstruction, a trend we see clearly across Europe. The pressure

is in part regulatory and in part voluntary: clients and customers demand and expect greater levels of sustainability. So this is a significant marketopportunity that is completely in line with our own values. In 2012 weachieved accreditation from Achilles for BuildingConfidence, a supplier pre-qualification and accreditation service especially developed for the UK construction industry, and this accreditation was reconfirmed during a 2013 audit. The focus on sustainable building goes beyond energyefficiency to include room climate, noise reduction, fire safety and generalcomfort. Our lightweight construction systems offer simple and efficientanswers to these challenges. We’ve also developed and patented uniqueproducts such as Knauf Comfortboard that provides an innovative way to conserve energy – it’s a plasterboard impregnated with phase changematerial to absorb heat when the room is warm and then release that heat when the room cools down.”

“What do your customers and partners think? Do they demand greater sustainability from products and systems?”“

Company profile 19

It’s hard to generalise because each company has its own culture, butone major difference with a family business such as Knauf is that we

have a naturally long-term view. Our culture is one where we’re flexible,make decisions quickly, have a flat hierarchy and trust our colleagues to takeresponsibility at an early stage in their careers. The company has taken a lotof care to focus on its values and to foster a corporate culture that emulatesan extended family. So, as Knauf has grown it has evolved from being afamily business into a corporate family with many international businessesand markets. Here in the UK we’re very much part of that culture and youcan see the Knauf values at work, guiding what we do and how we act.”

“Do you feel sustainability is achieved differently in a family business than in a company group structure?”“

We will target year-on-year improvements in terms of sustainability.Our aim in the UK is to be the leading manufacturer and supplier of

lightweight building products and systems, and we can’t achieve that withoutdemonstrating that we’re the best in class in terms of sustainability. We wantto collaborate closely with our customers so we can make the most of theopportunities offered by sustainable products and services. Our commitmentto this is evident in our investment in research and development, creatinginnovative products and systems. In line with the rest of the Knauf Group, we continue to reduce emissions and save energy. But sustainability alsoencompasses our conduct as employers and we want to increase staffsatisfaction, improve education and training and promote fitness and health.This first report is the latest step on our journey to being recognised leadersin our approach and commitment to sustainability.”

“This is the first Sustainability Report for the UK, setting goodperformance standards. What objectives will Knauf set itself for the future?”“

Our staff set the benchmark in many ways for how they expect thecompany to behave. We have a shared goal to set the standards for

the industry and to be recognised for taking our responsibilities seriously.And you see that here at Knauf in the UK all the time. Our staff are pivotal toour drive towards ever-improving sustainability and we encourage everyoneto become involved as much as possible. Conserving energy and resources is something we can all contribute to and we encourage this commitmentthrough training and development. Sustainability also extends to the day-to-day lives of our employees and we recognise and support the importance ofhealthy nutrition, physical exercise and environmentally-friendly transport toand from work.”

“What role do employees play in relation to sustainability?”“

Company profile20

Sustainability objectives for Knauf

Knauf has set itself binding targets forsustainability in both economic and social terms and will benchmark itself by the extent to which it achieves these.

Innovations and knowledge networkInnovations are essential to the future of ourcompany. We promote ideas and innovationsthrough the setting up and enhanced development of a Knauf Knowledge Management System and bysecuring and improving knowledge transfer in theKnauf Group.

Energy efficiencyMany of our production processes are energyintensive and have a noticeable impact on ourmanufacturing costs, so improving energy efficiency is always a priority. We are close toachieving optimal control of energy usage in ourproduction plants through our investment in energymeasurement technology. We are in the process of choosing a documented energy managementsystem (ISO 50001 or equivalent) to include energy management performance targets and toevaluate the use of renewable energy sources. The Immingham plant’s energy management systemgathers data from 18 smart gas meters (which allcompensate for temperature and pressure variations)and from 46 3-phase electricity meters. The systemcan also read data from our plant SCADA systemand create Energy KPIs (or EnKPIs) by which we can measure our performance product by product.

economic

Company profile 21

RecyclingKnauf is working intensively in the Eurogypsum GTOG(Gypsum-to-Gypsum) project. This project aims todevelop a strategy at European level as well ascorresponding standards for increasing the use ofrecycled gypsum. The eventual aim is closed looprecycling management to conserve natural resources in the future.

Environmental product declarationsEnvironmental Product Declarations (EPDs) were createdin recent years at association level for the most importantproducts. We will generate similar declarations to coverother products and systems to ensure that theirenvironmental performance is clearly communicated.

BiodiversityWe want to play an ever-increasing role in ensuringprotection and furthering of the biodiversity of species inthe areas surrounding our two production plants.

CommunicationEnsuring our customers can access environmentalinformation is key. We provide information relating toour use of resources, generation of waste, use of waterand the transporting of our finished products to ourcustomers via our website, as well as communicationthrough various other media, including customerpresentations, case studies and working in collaborationwith the wider building industry.

Deepening the skilled labour poolWe want to increase the number of trainees in orderto counter demographic changes and the associatedshortage of skilled labour. We want to give youngpeople a good, practical education through workplacements and apprenticeships. To increase theproportion of women employed we will extend theopportunities for part-time and flexible working sowomen can easily return to work and reconcile thedemands of family life and work.

Further education and trainingEmployees and their skills are our greatest assets so we will promote further education and training for ouremployees. We will achieve this through individualadvancement based on employee appraisals and theKnauf People Performance Development Framework.

Customer relationshipsWe want to improve communication and cooperationwith our customers so that we can respond accurately to their needs and wishes. We share best practice byholding regular meetings with our customers, providingcurrent information on our products and services on ourwebsite, and contributing to industry groups such asConstructing Excellence. We have expanded the existingpartner/dealer concept to achieve this, while the KnaufTraining Centre, which runs training programmes andseminars for our customers, is planning improvementsand additions to what it can offer.

ecological social

Sustainable products22

Sustainable

productsWe are committed to creating products of the highestquality: Knauf’s corporate values provide the structurethat guarantees that commitment. And we fulfil thiscommitment through our leading role in research anddevelopment and our robust quality managementsystem. Our products are comprehensively labelled infull detail and are individually identified so they can betraced back through every stage of manufacture anddelivery. This clarity of information shows that Knaufmeets the strictest standards in terms of environmentalcompatibility, sustainable building usage and safety.

Knauf Partitions, Nugent Shopping Park, Kent

Sustainable products 23


Gypsum products work well in terms of sustainability. This is partly because they are suited to resource-friendly manufacturing processes but also because they are ideally suited for recycling. Gypsum itself has unique features that significantly increase the sustainability of buildings in economic, environmental and social terms.

Natural raw materialGypsum is a versatile raw material that has been used for thousands of years. It is a widely available,naturally occurring substance that is relatively simpleto extract and process. During manufacture it can befired at comparatively low temperatures, which alsomakes it economical and relatively efficient in termsof energy consumption. All the signs are that gypsumwill become more attractive as a building componentas the demand for sustainability in construction gainsground.

The white natural rock was created during a numberof geological ages between 100 and 200 millionyears ago. Its chemical name is calcium sulphatedihydrate with the formula CaSO4 x 2H2O. Gypsumis one of the salts dissolved in seawater and, in thecourse of the earth's history, it was deposited throughsedimentation on the beds of flat and partially

isolated sea basins as the sea water evaporated.Researchers in South Australia have shown thatit is essentially a renewable mineral and that it isgrowing at the rate of a few centimetres per year.

Over time, the gypsum was covered by other earth layers and subjected to high pressure andtemperatures at a great depth. This process removedthe H20, turning it into anhydrite (CaSO4). When the anhydrite came close to the surface againthrough movements of the earth's crust and erosion, it gradually changed back into gypsum rock byabsorbing rainwater or groundwater.

Gypsum and anhydrite are often found ininterconnected deposits and are extracted by miningand quarrying. Knauf operates more than 60 stonequarries worldwide to cover its needs.

Gypsum productsfunctional, resource-friendly, reliable

Gypsum crystals below the earth's surface

Recyclability edgeOne of gypsum’s unique characteristics is itsexcellent recyclability – gypsum products that are no longer required can be recycled after the buildingin which they were used has been demolished orremodelled. No other mineral building material offersthis advantage. The result is a great reduction in thevolume of waste that is generated and means thatgypsum has an almost fully closed material cycle.

In the UK we use this ‘post-consumer’ gypsum,receiving it directly from waste managementcontractors who have already processed the gypsum so it is suitable. We are currently usingapproximately 5% of our total gypsum requirements


from this source, and our aim is to increase this to10% during 2014. We are currently undertakingtrials using this product to identify how much ourprocess can take without affecting the quality of theend product.

The Gypsum Products Development Association, of which we are members, compiles data on therecycled content of plasterboards, as well as otherareas relating to sustainability. Relevant data can be viewed at www.gpda.com/sustainability and theannual Plasterboard Sustainability Action Plan reportcan be accessed from www.wrap.org.uk/content/plasterboard-sustainability-action-plan.

Flue gas

Absorber tower

Filtrate

FGD gypsum

Absorber tank

Limestone

Processwater

Air

The flue gas desulfurisation process: SO2 + CaCO3 + ½H2O CaSO3 x ½H2O + CO2

Dewatering

2CaSO3 x ½H2O + O2 + 3H2

2CaSO4 x 2H2O7 MILL IONTONNES


Knauf was quick to recognise the potential of flue gas desulphurisation (FGD)gypsum and developed the technological procedures in co-operation with thepower plant operators. Both the desulphurisation know-how and the expertisein using FGD gypsum as a secondary raw material are based to a large extenton the company's research and development activities. These technologieshave since taken hold worldwide with the result that practically all large coal-fired power plants today are equipped with wet desulphurisation.

Knauf is a research and development pioneer

FGD GYPSUM PRODUCED ANNUALLYIN GERMANY – KNAUF USES MORETHAN HALF AS RAW MATERIAL


The alternative: FGD gypsumPlasterboards manufactured by Knauf in the UKcontain no virgin gypsum. Instead we use anotherway to recover gypsum that has been used for twodecades: FGD gypsum. This is as environmentallysound as it gets because FGD gypsum is generatedas a by-product from coal-fired power stations.

Coal-fired power stations emit combustion gases aspart of their energy production. To prevent emissionsto the atmosphere and to meet regional air qualitystandards, power stations run their flue gases througha suspension of finely ground limestone (CaCO3) inwater to strip out the sulphur dioxide and othercombustion gases.

The sulphur dioxide reacts with the limestone to creategypsum: calcium sulphate dihydrate. It is washed inthe power plant and then dewatered down to 10%residual moisture. FGD gypsum develops as a resultof the same processes as natural gypsum, only in amatter of hours rather than millennia, and so isequally suitable for industrial processing.

We believe it is intrinsically important to protect our natural resources, and we work to reduce ourreliance on virgin materials where possible. During2012, a review was undertaken of the ResourceEfficiency Action Plan (REAP) for Plasterboard, and as members and contributors to the PlasterboardSustainability Partnership (PSP), we have providedinput into the update of this document.

The main raw materials used for production of ourrange of plasterboards are gypsum and paper, and we use timber products for our bearers andpallets. In 2013, the percentage of recycled contentin our products – whether recycled paper orrecovered gypsum – was 89%.

Knauf decided in many instances to establish andoperate gypsum plants near coal-fired power stationsso that FGD gypsum takes the shortest route possibleto processing. When the FGD gypsum is sourcedfrom more remote power plants it is transported byships carrying large loads. Knauf uses FGD gypsumfrom more than 50 hard and brown coal powerplants in a total of 28 gypsum plants. Almost sevenmillion tonnes of FGD gypsum is used worldwide inthe plants every year. This makes the company theglobal market leader in this area.

In the UK, Knauf has sited its two plants especially toreceive FGD gypsum either from local power stationsor from foreign sources, when it will be transportedby ship. Immingham for instance, is supplied from anumber of local power stations. Sittingbourne has itsown dock and receives bulk shipments.

In the UK we do not use virgin gypsum in ourplasterboards, and only use small quantities of mined gypsum for our plasters range. Our technicalteams in Sittingbourne are currently working on using FGD gypsum for our plasters, which are due to be released in 2014. Following this, we will notrequire any naturally mined gypsum for use in themanufacture of our products.

Manufacturing plant in Sittingbourne, Kent, UK

IN OUR PRODUCTS (2013)CALCULATED IN ACCORDANCE WITH ISO 14021

89%R E C Y C L E DC O N T E N T


Drywall products work well with timber-framedbuildings, because one of the main issues with timberframe is fire, so fire performance boards will deliverthe required fire ratings, but the boards can alsocontribute to achieving the moisture, impact andacoustic requirements too.

Energy efficiency and climateprotection are improvingExternal thermal insulation is the most effectiveapproach to saving energy and reducing emissions,because some 30% of heat energy escapes unusedthrough non-insulated exterior walls. Thermalinsulation composite systems ensure a significantreduction in heat loss through the facade and also the basement, ceilings and roofs.

If the facade is listed or there is some other restrictionon altering the appearance or shape of the building’senvelope then the internal insulation needs to bemore considered. Knauf designs internal insulationsystems where the individual components worktogether and complement one another, from theindividual insulation board to the finishing coat.

Gypsum products from Knauf are also suited tomodern heating systems, such as panel heatingsystems for walls, floors, and ceilings. But the products only achieve the optimum effectwhen used in conjunction with thermally conductive Knauf components, such as levelling screed.

The drywall construction systems developed by Knaufalso offer a swift, easily installed and cost-effectiveoption for constructing low-energy homes and thoseworking to the Passivhaus standard, where most ofthe heat demand is satisfied using passive sources.These buildings normally feature timber frameconstruction because timber is a sustainable buildingmaterial and is usually used to deliver low-carbonbuildings and achieve Passivhaus standards.

E S C A P E S T H R O U G H UNINSULATED WAL LS

30%O F H E A TE N E R G Y

Knauf Cleaneo Akustik, Bluewater Shopping centre, Kent

Sound insulation and absorptionimprove acoustics and quality of lifeNoise pollution can seriously damage the quality of life and health too. Intelligent construction canprovide effective protection – and Knauf producesthe products and designs the systems for everysound-proofing requirement. We provide solutionsthat go well beyond what is required by standards,whether in housing construction, schools, industry,business or healthcare.

Different approaches are required according to thesituation. If the noise source and the listener are indifferent rooms, for example, then sound insulationis required. But if the noise and the listener are in the same space then sound absorption is required to filter out the irritating noises and to enable peopleto hear one another clearly.

This is especially important in large spaces such asshopping centres or stations, not simply for comfortbut for safety – public information needs to be heard.

For example, the Bluewater Shopping Centre in Kentemploys panels from the Cleaneo Akustik range ofperforated plasterboards to reduce noise whileenhancing the environment both visually and in termsof the atmosphere. These plasterboards cut theamount of pollutants and odours while delivering amarket-leading acoustic performance.

Available in twenty different perforation patterns tooffer complete creative freedom, these engineeredplasterboards need no special maintenance and can be coated with a suitable paint without their anti-pollutant performance being affected.


Effective fire safetyGypsum building materials are especially suitable for fire protection because they are not flammable.Gypsum releases water at high temperatures so firecan only penetrate gypsum layers on componentsvery slowly. Every tonne of gypsum contains roughly200 litres of chemically combined water, which isreleased in the event of a fire as ‘extinguishingwater’ at precisely the right time.

Knauf offers extensive expertise and a broad range of fire-rated components. For example, KnaufShaftwall constructions protect sensitive buildingcontrol systems while Knauf Fireboard is a speciallydeveloped board that features a non-flammable,anhydrite-coated, non-woven glass mat on its surfaces and longitudinal edges. It is designed forhigh-performance lining and encasement, such as the encasement of structural steelwork, and providesup to two hours of fire protection.

Lead-free radiation protection inhealthcareLead is expensive as a raw material and, because it is so heavy, very expensive to install. But everyhealthcare establishment with an X-ray machineneeded lead shielding until Knauf developedSafeboard. This uses barium sulphate to prevent X-ray leakage. The boards are light and easy toinstall and so much more cost-effective than thetraditional lead solution to radiation protection.

THANKS TO INNOVATIVEKNAUF SAFEBOARD

100%LEAD - F R E ER A D I A T I O N PROTECTION


Strict hygiene requirements achieved Hygiene is at a premium in healthcare, as well as inother area such as washrooms and shower rooms, but must be delivered at a reasonable cost. Knaufprovides construction products that are moisture-resistant and that effectively deter dust, dirt or germsfrom sticking to their surface. For applications wherehygiene is especially important Knauf offers productswith very smooth and stable surfaces, such as hardgypsum plasterboards with smooth finishing withoutdust or dirt edges. For operating theatres andlaboratories Knauf provides ceilings that also haveanti-microbial and anti-fungal coatings.

Innovative products use resourcesmore efficientlyKnauf invests heavily in research and development to create innovative products that contribute to thesustainability of construction. For example, spray-applied and airless readymix plasters and dry screedflooring all reduce water usage during construction.

Brio and GIFAfloor are dry floor screeds that requireno water and are far lighter than comparable wetfloor screeds, often by nearly 80%, which canreduce the structural load on a multi-storey buildingby hundreds of tonnes. The result is slimmer structuralcolumns, lower material costs, shallower footings andmore usable space, while using far fewer resources.

Knauf readymix spray applied plasters do not needany direct water on site because they have beenmixed in the factory to the correct consistency forspray application, which also means that the finish is consistent from one batch to the next. Unliketraditional plaster, very little material is wasted on site – less than 1%.

Applied using an airless high-pressure piston pumpmachine, the airless readymix plaster has addedbenefits compared with the spray-applied plasters:less is needed, and it is white so fewer coats of paintare needed. Again, the result is a significantreduction in the materials needed and the time spenton site.

KNAUF READYMIX SPRAY PLASTERS

WASTED ON-SITE

L E S ST H A N 1%

Flexibility ensures optimum utilisationof spaceIf a building is to be environmentally sustainable thenit must be flexible, able to adapt to different needsover its lifetime. Demolition not only requires a lot ofenergy but also destroys a great deal of embeddedvalue. The idea of re-configuring buildings toalternative uses is now gaining currency in the lightof demographic and technological changes. The riseof Wi-Fi and Bluetooth devices, for example, hasmeant that a lot of cabling that was necessary only a decade ago is redundant. The demand now is forworkplaces and buildings that are future-proof,accessible and generation-appropriate.

This in turn has created a demand for innovativeconstruction methods that can change how rooms aredivided, make the most of the space that is availableand still fulfil the physical requirements in terms ofstructural solidity.

Knauf products and systems are ideally placed toanswer these needs, as innovative room-in-roomsystems enable unused spaces to be given newfunctions and narrow profile wall structures indrywall construction allow new room layouts. Risingproperty prices and rents are creating a requirementfor extra space. This can be fulfilled using existingbuildings because Knauf lightweight constructionsystems make it both feasible and cost-effective toadd another floor onto the existing structure.


Breathability improves room climate Gypsum building materials contribute significantly toliving comfort by ensuring a balanced room climateand countering humidity. Gypsum building materialshave large open pores and so can store plenty ofindoor humidity without any capillary depression as a result. But, if the room dries out, the gypsumautomatically releases this moisture.

Knauf has enhanced this property through thedevelopment of Knauf Comfortboard, whichincorporates the Micronal phase change material(PCM) developed by the chemical company BASF toexploit the principle of latent heat to stabilisetemperatures and cut energy consumption. Thistechnology enables Knauf to provide the benefits ofthermal mass at a fraction of the weight ofconventional methods – two layers of Comfortboardachieve the same thermal capacity as a 100mmconcrete wall.

Consisting of microscopic glass balls filled with wax,Micronal absorbs heat energy as the temperaturerises. The wax changes from a solid to a liquid withinthe glass balls, so the room will cool down and stayat a constant, comfortable temperature. When theroom cools down at night the wax turns back into asolid, releasing heat back into the building to keepthe temperature constant. As a result, KnaufComfortboard continues this cycle of cooling andwarming the building – maintenance free –throughout its lifetime and so reduces the need forboth heating and air conditioning.

Knauf Partitions, Hollingworth Business and Enterprise College, Rochdale

CasestudyOne of London’s most iconicbuildings was refurbished usingKnauf GIFAfloor in a programme that brought the 1980s building rightup to 21st century standards with a BREEAM ‘Outstanding’ rating.

Product Knauf GIFAfloor

Location No. 1 Embankment Place, London

Specifier TFA Interior Projects


As a replacement for wet screed, the product alsospeeds up the construction programme says TimHudson, director for TFA Interior Projects. “The boardis solid and easy to handle, so it requires a minimumof effort to fit upon the pedestals that hold it in placeand, because it’s engineered, interlocks into place toform a firm, safe surface that other trades can use asa platform,” he said.

The GIFAfloor system is a partial-access raised floorsystem providing the ability to run services under thefloor with ease. It is manufactured from naturalgypsum-based calcium sulphate and is ideal forraised floor areas requiring continuous finishes, suchas sheet vinyl, or hard finishes such as stone andlarge format porcelain.

The 1200 x 600mm panels are installed on aconventional 600mm grid access floor understructure. Due to the tongue and groove design theGIFAfloor system is flat and smooth once installed,with the further advantage that joints will not trackthrough the applied finish.

As a result, finishes can be applied directly withouthaving to screw fix panels to the pedestals and thenfixing plywood – a necessity with traditional raisedaccess flooring installations. Access to the floor voidcan be incorporated using conventional access floorpanels or access frames.


No 1 Embankment Place - the nine-storey post-modern office designed by Sir Terry Farrell spanningthe railway tracks of Charing Cross station - is theheadquarters for PwC. PwC is updating andretrofitting its estate in line with its sustainabilitytargets, having achieved a BREEAM ‘Outstanding’rating for its More London office near Tower Bridge –the first building in London to do so.

Knauf GIFAfloor was installed to replace part of theexisting raised access flooring by TFA Interior Projectsas part of a complete overhaul of the building’sinternal infrastructure, including refurbishment and fit-out of the offices, decommissioning of existing plantand installation of new central plant and engineeringinfrastructure, along with a new entrance area.

Non-combustible, with an A1 fire rating, KnaufGIFAfloor’s high thermal conductivity makes thepanels ideal in underfloor heating systems andoptimises the benefit of air and ground source heatpumps over timber or cement base floors, reducingCO2 emissions as a result.

There is no waiting around for the screed to cure and then, when everyone else has finished, we can apply the final finish.Tim Hudson, Director, TFA Interior Projects ”“

GIFAfloor helps London icon hitsustainability target


Continuous improvement through quality management

Knauf is committed to continuous improvement and the bestmeans to achieve this is to have a robust quality managementsystem that meets or exceeds the highest standards.

As a company our aim is to supply products andservices that meet the requirements and expectationsof customers and business partners. This goal alsomeans that our products and services must complywith statutory requirements, the guidelines of tradeand industry associations and the relevant qualitystandards.

To achieve these targets, our policy is to supplyoptimum quality for the specific purpose and tooperate an active quality assurance system. Thisrequires continuous improvement and, in turn, thismeans we need a strong quality management system.

We have introduced a quality management systemthat exceeds the requirements set out in ISO 9001:2008 and has been certified accordingly. We monitor and verify the effectiveness andapplication of the quality management system in anumber of ways so that we can continuously refineand improve it. Actions include measuring the levelof customer satisfaction, analysing and evaluatingthe processes for implementing products andconducting internal and external audits.

Through commissioning an independently managedresearch programme called ‘Insights for Action’ we measure our customer satisfaction levels and gain insights into how we are viewed against ourcompetitors. This research involves telephone surveysof our customers and non-customers (to give a morerealistic market position), with a quantitative andqualitative element.

Knauf Laboratory, Manufacturing plant in Sittingbourne, Kent, UK


Ten key performance indicators have been chosen acrossthe Knauf Business Units, consisting of the following:

HARD

SOFT

DeliveryFlexibilityBeing flexible aboutdelivery options,when necessary offering quickerdelivery

Delivery ReliabilityCan be reliedupon to deliverwhat is required

Stock Availability,Certainty of SupplyHaving the stock youneed, when you need it

PriceOffering a competitive pricing structure that fits with your businessrequirementsProduct Quality

and PerformanceOffering a high performance product that meets quality expectations

CommunicationProactivityKeeping you informed,especially when things go wrong

Knowledge and ExperienceKnowing what they aretalking about, backed up by experience

RelationshipsFostering dependablerelationships that add value to your commercial dealings

Technical Support and AdviceAble to provide good technical supportand advice relating to Knauf products

Responsiveness on IssuesGetting back to you quickly when you raise queries or issues

This research shows what our customers see as Knauf’s strengths and weaknessesenabling us to eliminate our weaknesses and build upon our strengths. Using thisframework we then set our business objectives and targets.

Net Promoter Score

0 5 10 15 20 25 30 35 40 45 50

2010

2011

2012

2013


telephone interviews carried out by our independentresearch partners with a wide range of our customers.The findings from the research will enable us tostreamline our sustainability strategy and ensure thatour long-and short-term targets provide real benefits to our customers as well as the built environment.

An interim progress report identified a number of keycustomer requirements that share in common theprinciple that sustainability must be an integral part of the product or system, rather than a bolt-on feature.All of the factors of sustainability must integrate witheach other to ensure the product meets allrequirements including: cost and practicality for use;legislative requirements; and performance throughoutits use and lifecycle.

A summary outcome from the research is our NetPromoter Score, which allows us to easily compareour performance year on year, as well as to compareagainst our direct competitors, and to view ourselvesacross the supply chain.

As part of our work towards sustainability wealso commissioned Sustainability Insights, anindependently managed research programme, to get first-hand research from customers. This wascarried out during the last quarter of 2013 and willinform our overall approach to sustainability overthe next few years.

The Sustainability Insights research programmeconsists of a variety of in-depth face-to-face and

+21

+31

+34

n/a

Continuous improvement through quality management


The lifecycle of our products was identified as a key consideration, though many customers found that it is difficult to balance the cost and practicalityof a product against environmental issues such aslifecycle, wastage and energy consumption. Ourcustomers believe that, in the future, there will be ahigher emphasis on the end of life of product, itsreuse and deconstruction.

When considering purchasing our products andservices, the top criteria for considering sustainabilityhave been identified as:

• Responsible/ethical sourcing

• Energy consumed in manufacture

• Reduced building energy demand

• Performance of the product

• Lifespan

• Recycled content

• Cost

Looking forward five years, the research highlightedtwo areas of opportunity for sustainable productsand services: innovative products and systemsdevelopment.

Innovative productsOur innovative products now include productswith phase change capability – Comfortboard –and products that meet the requirements ofBuilding Information Modelling (BIM). Systemsdevelopment will take account of the increasingtrend away from on-site to off-site construction,which will increase the market for materials andproducts that lend themselves to assembly lineproduction methods.

The research noted a number of challenges tothe introduction of sustainable products,ranging from regulations to industry attitudes.The construction industry is faced withconstantly changing legislation that increasesthe obligation for sustainability criteria but alsoimposes multiple sustainability standards, eachwith different requirements. Understandably, the industry finds it hard to change becausethere is a lack of clarity in the standards thatare demanded. One clear message, though,was that the end-client wants buildings that usefar less energy.

In summary, the research has identified anumber of areas for us to concentrate on, andto think about how we supply our customerswith the relevant information. All of the finaloutcomes will be collated and our objectivesand targets updated to take this into account.


Clear documentation aids safety and sustainability

Knauf takes a lot of care in producing clearinformation on the ecological compatibility of itsproducts. The aim is make it simpler for builders and other users to improve the sustainability ofbuildings as well as comply with certifiedsustainability standards.

EPDs (environmental product declarations) based on the ISO 14025 standard primarily provide clear information on the eco-friendlyproperties of a product. These declarations includeverified eco-performance records for a product andhighlight different environmental characteristics indetail, such as the pollutant emissions and theresources consumed.

Knauf currently has EPDs for the following products:reinforcement plaster, calcium sulphate screeds,gypsum products, and standard plaster. We aredeveloping EPDs for other products and systems. We also supplement the EPDs with self-declaredenvironmental claims in accordance with ISO14021. These give information on details such as production facilities, raw material sources and the proportion of recycled materials and so areimportant sources of information for buildingscertified under the LEED (Leadership in Energy andEnvironmental Design); BREAAM (Building ResearchEstablishment Environmental Assessment Method for buildings and large scale developments) and theRICS-operated SKA scheme for non-domestic fit-out.

Knauf Aquapanel Exterior, Kensington Palace Cinema renovation, South Yorkshire


Products covered by a harmonised Europeanstandard (hEN) or European Technical Assessment(ETA) must have a Declaration of Performance (DoP),which details the product’s performance in relation tothe essential characteristics defined within the relevantspecification. A CE mark certificate will be availablewith the DoP for each relevant product. The productor packaging must be CE marked to demonstratecompliance to the standard.

There may be some non CE-marked stock in themarket. These products are not inferior – either the markis not required for them or they were manufacturedprior to July 1st 2013, but will still have beenmanufactured to an appropriate standard. New stockwill bear the designated CE symbol, where required.

CE marked products will be identified in our TradePrice Lists, with the corresponding DoPs available todownload from the Knauf website.

In 2012 we also achieved accreditation fromAchilles for BuildingConfidence, a supplier pre-qualification and accreditation service especiallydeveloped for the UK construction industry. We wereaudited again during 2013 for BuildingConfidence,and received favourable comments from the auditor.The scheme demonstrates our company compliancein areas including health and safety, environment,quality and sustainability. Gaining this accreditationdemonstrates our commitment to achievingexcellence and demonstrates our corporate socialresponsibility ethos.

July 1st 2013 saw the UK implementation of theConstruction Products Regulation (CPR). The CPR is aEuropean initiative that standardises informationstated about product characteristics, andincorporates formal CE marking.

The CE mark is for products which are covered by aharmonised European standard (hEN) or EuropeanTechnical Assessment (ETA); and Knauf has nowcompleted all branding and packaging changesnecessary to meet the CPR.

Detailed informationimproves planningKnauf provides the most important environment-related product information on the company'sown communication platforms. Users who wantto plan and construct buildings in accordancewith the BREEAM or LEED standards also havedirect access to Knauf product informationthrough the Knauf website.

This online facility provides detailed informationon products and systems, such as gypsumboards, metal stud walls or slab ceilings.Presenting information in this way simplifiesresearch and documentation for designers,architects and builders, enabling them to plansustainable buildings from the drawing boardwith greater certainty.


CasestudyOutstanding acoustic performancecombined with ease of installationmade Knauf Brio, the dry floor screed from Knauf, the first choicefor St Mark’s Residences, a BREEAM‘Excellent’-rated development for Leeds University that houses 529 post-graduate students.

Product Knauf Brio 18WF

Location St. Mark’s Residences, Leeds University

Specifier GB Building Solutions


Knauf Brio 18WF, 18mm gypsum fibreboard with a 10mm laminated wood fibre layer, will provide50dB sound insulation – a full 5dB above thestandard BREEAM rating. The interlocking boardsare cost-effective, easy to install between floors and,despite being precision engineered, able to acceptminor variations.

“The product helped to accommodate constructiontolerances, where minor irregularities occur such asthe abutment of timber floor cassettes. The sub basehelped to eliminate this.”

The dry screed flooring is also flexible in terms of theworking around other trades: if there is a delay in onearea then the Brio boards can be left mid-installation.

GB Building Solutions, which constructed thedevelopment on a design and build basis, selectedBrio having used the product so successfully atanother student housing project, The Green atBradford, which achieved a BREEAM rating of‘Outstanding’.

“When we discussed the university’s aspirations forthe new residences they wanted students to enjoyquiet accommodation so they could study but theyalso had a high criteria for sustainability,” said BenGaunt, senior design manager. “We knew from ourexperience at Bradford that the product would meetboth specifications and that it was easy to work with.”

Brio is suitable for low-carbon buildings and reducingthe carbon footprint in refurbishment projectsbecause it consists largely of recovered gypsum andfibre and the manufacturing process is clean.

“Sustainability and quality are always at the forefrontof our design approach and by understanding andworking closely with the client we deliver the bestsolution,” explained Mr Gaunt.

They wanted students to enjoy quiet accommodation so they could study but they also had a high criteria for sustainability.Ben Gaunt, Senior Design Manager, GB Building Solutions ”“

Brio provides peace and quiet for post-graduate study

A wet screed system would not allow that becauseonce the process has started it has to continue untilthe floor is complete. Other trades then have to avoid that area until the screed has cured.

Providing a strong, durable and flat surface, KnaufBrio Dry Floor Screed can be specified either as anacoustic solution variant or as a dry screed withexcellent thermal transparency for use overunderfloor heating and cooling systems. Brio’slapped edges are engineered so the boards can beinstalled precisely and easily. Once glued andscrewed to form a solid floor, it can take light trafficimmediately and is ready for the floor finish as soonas the glue has dried in just four hours.

Environmental and climate protection42

Environmentaland climate protection

Knauf makes sure that the environmental impact of itsdecisions match its values. The company has animportant responsibility as a manufacturer – and onethat depends on processing natural raw materials – touse natural resources as sparingly as possible and tolimit any harmful effects on nature itself. We are anenergy intensive business, and increased productioninevitably leads to an increase in energy and resourceconsumption. Our aim is to continue to reduce ouremissions and consumption per unit of output over time.In order to demonstrate such improvements, we havereported our progress using unit outputs or turnover.

Environmental and climate protection 43

Energy management system The company intends to achieve certificationaccording to ISO 50001 and so bring the two UK plants into line with their German counterparts.The requirements are being fulfilled gradually:measurement systems are being extended; energyconsumption values recorded and evaluated; energy savings potential systematically sought; and a roadmap devised and followed.

At our Immingham and Sittingbourne plants severalmeasures have contributed to improved energyefficiency, including reducing the water used in therecipes for certain products and recycling wasteduring the calcination process.

Water evaporation in the board drying processconsumes most energy in the plasterboardmanufacturing process. In the course of our regular recipe reviews, we found that a group of our products were running with a higherproportion of water in the mixture than other relatedproducts. This was an area in which we couldimprove energy efficiency. After running a series oftrials, the recipes for these products were adjusted toreduce the amount of water and replace it withincreased levels of chemical liquefier. Based on2013 production volumes and by using energyefficiency figures measured before and after thewater reductions, this initiative has saved 2.77million kWh of gas per annum at Immingham and 10million kWh of gas per annum at Sittingbourne.


Resource and energy efficiency

Our guiding principle is resourcesefficiencyWe have identified our key areas of action as:making efficient use of energy and raw materials in production; cutting CO2 emissions that might have harmful effects on climate; and observing a sustainable recycling concept.

Saving energy, reducing emissionsKnauf has adopted a variety of measures to reduceenergy consumption and costs that complement itscommitment to reducing CO2 output through the use of efficient technologies. Having recognised the needfor action, we developed a target system that isbinding for all group companies.

The UK is no exception and follows these fiveguiding principles:

02Products and production

processes must be consideredin terms of their energy

efficiency. Working in closecollaboration with customers and

suppliers, Knauf will adoptenergy-saving production within

the limits of technical and economic

viability.

01Knauf aims to reduce

energy consumption in thelong term and increase

energy efficiency as part of a continuousimprovement

process.

03All employees are

committed to achievingthe company's objectivesand co-operate actively in

implementing theseobjectives.

04Energy-saving

measures will beemployed to cut costs and lower

emissions.

05Legislative

requirements areimplementedaccordingly.


Converting raw gypsum into stucco is an energyintensive process but we re-use much of the wasteheat to reduce the overall primary energy required.During 2014 we will be further improving thecapability of re-using waste heat as combustion air in the main calcining process. By pre-heating thecombustion air from ambient we will save significantquantities of gas at our factories.

Over the course of 2014 two more initiatives willfurther cut energy consumption: the introduction ofintelligent compressor controllers and the installation ofa high-efficiency transformer with voltage regulation.

We have fitted new control modules in everycompressor at one of our factories, which will save 10% of the electricity required for compressed air. By fitting variable speed drives to our compressorswe will improve control of site pressure and thereforereduce wasted energy.

We have purchased an ultra-high-efficiencytransformer to replace the highest use transformer of the six on the Immingham site. This transformer is also fitted with voltage-reduction equipment thatwill regulate and reduce the output voltage of thetransformer. Based on 2012 consumption, thisinstallation is expected to save 1.1 million kWh of electricity per annum.

All these energy-saving initiatives are underpinned bya robust energy management system at both plantsthat gathers data from smart gas meters (which allcompensate for temperature and pressure variations)and from 3-phase electricity meters. This system canalso read data from our plant SCADA system andcreating Energy KPIs (or EnKPIs) so we can measureour performance product by product.

AT OUR IMMINGHAM ANDS I T T INGBOURNE P LANTS

IMPROVEMENTS INDRYING PROCESSREDUCED GAS USE BY

R E - U S I N G W A S T E H E A TREDUCED GAS USE BY

kWh PER ANNUM12.77m


kWh PER ANNUM10.80m

NEW EQUIPMENTREDUCED ELECTRICITYC O N S U M E D B Y


kWh PER ANNUM

460,000


Energy efficiency measures at Knauf

The Knauf Cube incorporates sustainable technology

The Cube, a new training and visitor centre locatedat our UK headquarters in Kent, is a tangibledemonstration to our commitment to sustainability.

The site itself is located adjacent to a NationalNature Reserve and a Site of Special ScientificInterest (SSSI). Adjacent areas are also covered bythe Ramsar Convention which covers wetlands ofinternational importance, an international treatysigned in the city of Ramsar in Iran. With the sitelying on the path of migratory birds, the height of the building was restricted – as were the timeswhen certain construction activities could take place. The design ensures that staff can now enjoyan uninterrupted view of the SSSI and the RiverSwale that runs through it.

The building itself showcases Knauf products andincorporates sustainable technology. The buildinghas two roofs; one is a green sedum roof whichcontributes to local biodiversity, while another roofhas photovoltaic panels to gather solar energy andconvert in to electricity used for powering thebuilding.

Both these roof coverings are part of the building’ssustainability strategy. The original intention hadbeen to achieve a BREEAM ‘Excellent’ rating, but thispossibility was limited by a lack of public transport:there are no trains or bus routes anywhere nearwalking distance of this building, and the buildingwas a new build. It achieved BREEAM ‘Very Good’.

The whole building is clad in Knauf ThermaFrame to produce a highly insulated and airtight buildingenvelope. A complete through-wall system,ThermaFrame lives up to its name with slotted steelstuds which inhibit the conduction of heat and twolayers of insulation, between the studs and on theinner face. The outside of the building is finished with Aquapanel boards with Knauf Marmorit, aspray-applied render, completing the outer skin.

The strategies employed in the Knauf Cube alsoinclude energy-efficient lighting, low-flush toilets,sustainable drainage design and reducing waste tolandfill during the construction phase – a key goal in all Knauf’s manufacturing activities.

2010 2011 2012 2013


Emitting fewer greenhouse gases

As a manufacturer, it is our responsibility to ensurethe products we develop and produce consume as little carbon as possible, not only duringmanufacturing but also when transportedto our customers and in use.

Our business is subject to the ClimateChange Levy and is part of the EUEmissions Trading System, whichforms part of government-ledinitiatives to reduce the energyand carbon intensity of large-scale manufacturing.

We began to compile ourcarbon footprint in 2011, and itis our aim to achieve the CarbonTrust standard, which specifies three keyrequirements: carbon footprint measurement, carbonmanagement and carbon reduction performance.We are currently in the process of measuring andreporting on our Scope 1 and Scope 2 carbonemissions in accordance with the World ResourcesInstitute (WRI) Greenhouse Gas (GHG) Protocol.

• Scope 1 (Direct Emissions) – activities owned or controlled by Knauf that release emissions straight into the atmosphere.

• Scope 2 (Energy Indirect) – emissions being released into the atmosphere associated with consumption of purchased electricity, heat, steam or cooling. These emissions that result Knauf’s activities but which occur at sources not owned or controlled by Knauf.

Our sustainability objectives for 2014 and beyondaddress the issue of energy performance, andprovide a framework for delivery. We will reviewopportunities for using renewable energy sources,

and our aim for 2014 is to ensure we haveconsidered and reviewed all availableoptions for their applicability to our processes.

The following graphs detail trends in ourdirect and indirect greenhouse gas emissions,measured in tonnes of CO2e (carbon dioxideequivalent) – a standard unit for measuring

carbon footprints. Gases other than carbondioxide also contribute to global warming, such

as methane and nitrous oxides. Standard ratios areused to convert these other gases into equivalentamounts of carbon dioxide, which allows a carbonfootprint consisting of many gases to be expressed asa single number for easier comparison.

The indirect emissions relate to our Scope 2 and 3carbon footprint measurement, which includeselectricity, waste to landfill, water consumption andbusiness travel. During 2013 our output increased tomeet market demand, and we produced a largerproportion of heavier, higher performance boards.However, trends demonstrate a significant improvementin the direct emissions per £1m of our turnover. Wewill again implement a number of measures during2014 to continue improvement. These measuresinclude reviewing opportunities to install renewableenergy systems at our factories and installing a heatexchanger at the Sittingbourne plant.

Indirect greenhouse gas emissionsTonnes CO2e per £1million/turnover

215

210

205

200

195

190

2010 2011 2012 2013

Direct greenhouse gas emissionsTonnes CO2e per £1million/turnover

880

860

840

820

800

780

760


Emitting fewer greenhouse gases

If we relate our energy performance to turnover, our performance during 2012 and 2013 remainedbroadly static, although with marked improvementfrom 2010 and 2011. Actual figures are:

• 2010: 120,540 tCO2e• 2011: 127,722 tCO2e• 2012: 122,827 tCO2e• 2013: 126,048 tCO2e

As part of our Environmental Permit requirements, we monitor the emissions to air resulting from ourworks. In order to comply with our EnvironmentalPermit, we must ensure that our emissions stay within

the prescribed limits, which we do by setting thealarm level of our monitoring system at values belowthe prescribed limits, so that if there is a failure weare aware before we exceed our emissions limits.

The following chart details our emissions SOX andNOX (reported as SO2 and NO2). Our SOX emissionshave declined significantly over the last four years but our NOX emissions have fluctuated,with a peak in 2011. We have addressed this peak in NOX emissions by refurbishing our driers,which are our primary emission source; however,emissions are dependent on the products we aremanufacturing. We will continue to monitor ouremissions and put in place appropriate measures to mitigate these where possible.

Greenhouse gas emissionsTonnes CO2e per £1million/turnover

1100

1075

1050

1025

1000

975

950

2010 2011 2012 2013

We monitor emissions to air resulting from our works

SOX (as SO2) Total

NOX (as NO2) Total

Total SOX and NOX emissionsTonnes

250,000

200,000

150,000

100,000

50,000

02010 2011 2012 2013

Our intention is to ensure that the waste we produce as part of manufacturing process ismanaged responsibly, which means that we consider the waste hierarchy, looking at avoidingwaste in the first instance.

Where waste generation is inevitable, we ensure it is managed in accordance with all relevantlegislation, including Environmental Permitting(England and Wales) Regulations 2010 for therelevant waste management facility and inaccordance with duty of care regulations. We carryout regular audits of our waste management partnersto ensure the continued compliance and best level ofwaste management available.

01 Avoid

02 Reuse

03 Recycle

04 Waste to energy

05 Disposal of waste


Reducing waste in our factories

One of our objectives is to reduce the amount offactory waste generated, and we offer incentives to key staff to contribute to achieving this aim.We work together and share best practice wastereduction initiatives with staff from both our factories, through various joint meetings, trainingsessions and attending industry events.

The above graph shows the breakdown of how ourwaste is managed.

The highest proportion of our waste is gypsum, which is sent to reprocessing facilities. Here anypaper is removed, and it is re-processed into gypsum

The waste hierarchy

Maximum conservation of resources

Reusing materials

Recycling and reprocessing materials

Energy recovery priorto disposal

Zero conservationof resources

which is suitable for use in making new plasterboard. We re-use or recycle over 99% of production waste, with only a very small proportion of it beingsent to landfill.

Our aim is to send zero waste to landfill. However,we are dependent on the general recycling anddisposal routes of our waste managementcompanies, who inevitably will send a proportion of the waste in their facility to landfill. We areworking closely with these facilities to identify thetrue waste management route of Knauf specificwaste, aiming for zero waste to landfill.

Breakdown of factory-produced wasteTonnes

25,000

20,000

15,000

10,000

5,000

02010 2011 2012 2013

Reused, recycled or recovered waste

Waste to landfillGypsum wastereprocessed back to plasterboard

Knauf is committed to recycling plasterboard wasteand now, as well as plasterboard scrap fromproduction, we are using recycled gypsumplasterboard waste, or ‘post-consumer gypsum’. This is gypsum that comes from new construction,demolition, or refurbishment of buildings and has tobe reused or recycled in an environmentally friendlymanner. In the UK it is estimated that almost onemillion tonnes of plasterboard waste is producedeach year which, once reprocessed, can be used tomake new plasterboard.

In the UK, recycling waste also deals with ourcustomers’ concerns – feedback identifiesplasterboard waste as being a major concern onsite. So we are working with customers to reducetheir waste where possible by providing on-siteauditing of waste. We also engage with our supplychain to deliver training sessions on materialmanagement and waste reduction. We attendindustry events to share best practice and promotebehavioural change in the industry, for examplecontributing to the Supply Chain School. We arecurrently working to have all relevant sustainabilityinformation for our products available through BIMwhich, once fully integrated, will enable ourcustomers to identify where significant plasterboardwaste will be generated within a building.

Waste gypsum building materials are easilyreprocessed in approved waste managementfacilities, producing a raw gypsum product that we

can re-use in our manufacturing processes. Typicalconstruction wastes that can be recycled into gypsum-based products include plasterboard wastes fromnew construction sites and dismantled boards fromretrofit or pre-demolition works.

In 2007, Knauf signed up to the AshdownAgreement, an arrangement between thegovernment's Waste and Resources ActionProgramme (WRAP) and the Gypsum ProductsDevelopment Association (GPDA) comprising themain UK manufacturers of gypsum products. The aimof the agreement is to promote the reduction ofplasterboard waste and increase recycling of post-consumer waste. A target of recovering andrecycling 50% of waste generated by 2015 hasbeen set.

This initiative is supported by PAS 109: Specificationfor the Production of Recycled Gypsum from WastePlasterboard, which was produced by the BritishStandards Institution (BSI) after being commissioned


Resource efficiency

Improved resourceefficiency through recyclingKnauf carries out a broad range of recyclingactivities which contribute significantly toenergy efficiency and climate protection. Ouruse of FGD gypsum in manufacturing not onlyrecycles an industrial by-product, but also cutsthe emissions generated by transporting thematerial, because we use resource-efficientforms of transport: rail and sea.

For example, we converted the largestproduction location in Iphofen, Germany fromnatural gypsum to FGD gypsum and built a newrail connection and FGD gypsum unloadingstation to enable eco-friendly production. Thisenables use of a highly efficient logistics systemin cooperation with the power plant operatorsand Deutsche Bahn AG.

Here in the UK, both our sites are next to docksso they can accept FGD generated from othercountries and the Immingham site is alsosupplied by rail from nearby power stations.


by WRAP in collaboration with the industry sectorswhich reprocess waste plasterboard and usegypsum. It provides a specification for producinggrades of reprocessed gypsum of consistent andverifiable quality from waste plasterboard.

Our factory at Sittingbourne can reprocess wasteproduced as part of the manufacturing process so we can re-use the waste on site directly. At Immingham we work closely with local gypsumreprocessors to maximise opportunities to use post-consumer gypsum from construction and civicamenity waste sites in our processes. It is ourobjective for 2014 to reduce the waste generated in our factories by 10% and we will put in placemeasures to contribute to achieving this aim.

Increasing the content of post-consumer waste toachieve the targets set in the Ashdown Agreement is our key priority for 2014. In the past we haveencountered issues in using this material, which canvary in quality and have a high moisture content. We have invested in improvements to our plant andequipment to allow us to be able to handle higherproportions of recycled material. We are takingmeasures to maximise the amount of post-consumerwaste we use and remove these obstacles.

For example, we are installing additional sieves toremove paper remnants from the gypsum, which willincrease the purity of the material, and reduce theassociated environmental impacts of drying thematerial. We are also running trials using differentpercentages of recycled gypsum materials throughour processing plant to find out what effect this hason the process. In the longer term these trials willenable us to achieve a more consistent use.

Knauf Plasterboard RecyclingIn response to market demand and to encouragepost-consumer re-use, recycling and recovery ofgypsum products, we have set up our own dedicatedclosed-loop recycling service, Knauf PlasterboardRecycling (KPR). This service enables us to usereprocessed gypsum waste (from plasterboard andplaster products) back into our boards and reducewaste for our customers.

KPR is a waste collection and recycling service thatwe offer across England, Scotland and Wales, usinga network of local Environment Agency-approvedcontractors. This scheme allows our clients to be surethat their plasterboard waste is taken from site andreprocessed at an Environment Agency-approved siteto a ‘Quality Protocol for Recycled Plasterboard’accepted end use. This includes being recycled intonew plasterboard, used in the cement industry or asa soil improver, alleviating the acidity of soil becauseit is alkaline.

Where site logistics and location allow, we ensurethat the maximum amount of reprocessed gypsum istaken back to our factories to make new plasterboard,creating a ‘closed-loop-recycling’ process.

This service gives our customers peace of mind thattheir waste plasterboard is being managed inaccordance with all relevant legislation, in a cost-effective manner that maximises the use ofreprocessed gypsum into our manufacturing process.

We are collating data on all waste collected fromsites to enable us to improve our service wherenecessary, and to develop our understanding ofplasterboard waste in the supply chain.

In order to fully meet our customers’ expectations, we are working together with our supply chain andwaste contractors to address the logistical challengesof recycling gypsum.

Environmental stewardshipWe take the sourcing of our materials very seriously,and ensure that we are fully aware of where ourmaterials originate. As part of our BES 6001accreditation audit process, our key materialssuppliers are reviewed and assessed to ensure ourmaterials are responsibly sourced.

Our procurement procedures also take into accountthe ethical sourcing of materials, with an emphasison local sourcing where possible.

GTOG – Recycling project at theEuropean levelThe UK initiative is in line with Knauf’s work inEurope in promoting gypsum recycling. Knauf is part of a project that aims to increase the content of recycled gypsum in plasterboards to 30 percent.

As part of the Association of European Manufacturersof Gypsum Products (Eurogypsum), Knauf is workingwith 15 leading demolition and recycling companiesas well as manufacturers in the GTOG project (‘FromGypsum to Gypsum – From Production to Recycling’).

The objective of this EU-funded project is to developthe European gypsum waste market into a gypsumrecycling market in order to achieve higher recyclinglevels and ensure resource-friendly recyclingmanagement for gypsum.

In order to achieve this the demolition companiesmust change their approach so that they selectivelydismantle buildings to make the best possible use ofthe recycling potential of the gypsum buildingmaterials.

The manufacturers involved in the project hope toprocess up to 30% recycled gypsum in their boards.


Protecting biodiversity

We are aware of our emissions and do not exceed prescribed levels

Knauf is committed to ensuring that our sites do notharm local flora and fauna. Before we built theseplants almost 25 years ago, we considered thelocation carefully to ensure our impact on the localbiodiversity was as low as possible.

We commissioned a number of wildlife andbiodiversity surveys at both our factory sites, toensure all species were taken into account prior toundertaking any works. Our manufacturing plantsare subject to regulation by the Environment Agency,which imposes controls on our emissions andeffluents to protect the surrounding environment. Oursophisticated monitoring systems ensure that we areaware of our emissions and do not exceedprescribed levels.

Our plant at Sittingbourne is next to the Swale, an SSSI, Ramsar site and Special Protection Area(SPA) because it has large expanses of fresh watergrazing marshes. The estuary is important foroverwintering and migratory birds, because themudflats contain a large invertebrate population forbirds to feed upon. We have carried out specificsurveys on the surrounding wildlife, including watervoles, wintering wildfowl and waders and bats.These surveys have informed the site managementprocedures that we employ to ensure that our impactis reduced as low as possible.

At Sittingbourne, typical issues that can impact onthe surrounding environment include: airbornegypsum-based dusts; fuel and chemical spillages;gypsum leaching into the surrounding environmentthrough our jetty on the Swale or via on-site ditches;and damage to the local land by poor drainagemanagement. It is our responsibility to ensure that,not only do we protect the land adjacent to our sitesfrom our activities, but also that we contribute toenhancement works in association with the localauthority and nature bodies.

Water voles are now commonly seen at our Immingham site

Water usage m3 per £1million/turnover

2600 2700 2800 2900 3000

2010

2011

2012

2013


• Our fleet uses the latest fuel-efficient trucks;

• We supply in full loads to maximise efficiency;

• Our trucks are used to deliver other goods from the area of drop to ensure the maximum number of journeys are full, reducing wasted, empty journeys;

• We are trialling alternative transport methods such as barges.

We are compiling data on our haulage operations,including the carbon emissions associated withdelivery of finished product. The distance ourmaterials have to travel to our customers hasincreased slightly over the last 3 years, though thecarbon emissions associated with each mile hasdeclined every year. This is primarily due to ourcustomer care teams working with our hauliers for instance to, improve the truck fleet – by moving tomore efficient vehicles – and ensuring we deliver full loads where possible. Once we have fullyreviewed measures to improve the fuel efficiency of our fleet, we will work with our hauliers during2014 and 2015 to implement the most effectivemeasures, and to set a fuel reduction target.

for the installation of a water management systemwhich will allow us to re-use water from our roadsweepers and Klargesters without it being taken from site.

At both factories we are further exploringopportunities for reducing the water needed duringcalcination and on the boardline. Reducing the wateradded at these stages, subsequently reduces theenergy required to dry the product, ensuringincreased manufacturing efficiencies.

Transport and logisticsOur aim is to reduce the impact of transportation as far as possible, including delivery of our rawmaterials to our factories, and of our finishedproducts to our customers.

A proportion of our materials are shipped to ourfactories from across Europe. Indeed, this was amajor factor when deciding upon the location of ourplants. Our aim is to maximise the efficiency of ourtransportation network, including road and sea links.

We have put in place appropriate measures tomitigate these effects. For example, dust monitoringensures that dust is not affecting off-site receptors andclearing the ditches every year stops clogging. Weundertake a regime of clearing out the drainageditches to encourage local wildlife.

Our responsible approach to our activities meansthat there is no negative impact on the biodiversityvalue of our site, or that of the surrounding area. The Environment Agency monitors the SSSI, Ramsarand Special Protection Areas around the site and has not found them to have been harmed by theproximity of our operations.

The site of our plant at Immingham is less sensitive than Sittingbourne because the surrounding land ismore industrial. But we have put in place similarcontrols to those at Sittingbourne, and ensure wecomply with the conditions of our EnvironmentalPermit such as maintenance of on-site drainageditches. Our site at Immingham now has water volesin the ditches, which is indicative of good waterquality.

Reducing water consumptionWater usage is a subject that we are investigating at both our factories, and we have identified keyareas of our processes where we can implementprocedures that can reduce our overall consumption.During 2014 we will be reviewing the opportunitiesfor the installation of a rainwater harvesting system. Such rainwater can be used in our factory processesas well as for site cleanliness (road cleansing forexample) which will significantly reduce the volumesof water required.

At Sittingbourne, all water is abstracted from aborehole. We are currently investigating opportunities

Haulage tCO2e per £1million/turnover

66 70 74 78 82

2010

2011

2012

2013

True partnership54

True

partnershipAt Knauf we understand that our sustainability objectivescan only be achieved through collaborative partnerships,which are integral to the company, and also by beingvalue-focused, as this requires us to be a reliable andloyal partner. So it follows that we place a very strongemphasis on our customers when we develop ourproducts and services; and one of our top priorities is toshare our specialist knowledge with them. We do this ina variety of ways, including activities at association level.

We are in constant communication with our customers

True partnership 55

True partnership56

Knauf works with its partners and analyses expectations over several different arenas,

engaging in dialogue and sharing knowledge.

Our partners are customers in the market and within our company, as well as being

spread broadly among the areas of politics, science, society and the media.Staff

Knauf can only be as good as the sum of all of itsemployees. We rely on their ability and creativity. Staff

who feel successful and satisfied are an essentialcomponent of our success. Our facilities feature state-of- the-art production technologies but they are not simply economic

and efficient – they are also employee-friendly. We recruitour management from our own ranks, which reflects the

importance we attach to providing our staff withcontinuous, bespoke training and education.

Employeerepresentation

Close co-operation with our staff is an important element of our success and

we encourage this through our StaffCouncil. This draws from every rank

within the company to provide acomprehensive means of providing

feedback on staff issues.Potentialapplicants/employeesKnauf is both a strong brand and a solid familybusiness. We know that our staff are critical to

our success and so we make it a priority to attractdiverse, capable talent to our corporate family.

We do this through offering further education and training possibilities as well as a

wide range of development and advancement opportunities.

Collaborationfor mutual success

True partnership 57

AssociationsWe are actively involved in various trade

associations, including the Gypsum ProductsDevelopment Association (GPDA) which represents the

four major gypsum board and plaster manufacturers in theUK and Ireland. We are also members of the Plasterboard

Sustainability Partnership, a group comprising representativesfrom across the supply chain.

Knauf is a member of Constructing Excellence, and we contribute to this group at both national and regional levels.

We are also members of the British Safety Council.

As part of the GPDA, Knauf is also a member ofEurogypsum, the European federation of nationalassociations of producers of gypsum products,

whose prime aim is to promote both theproducts and interests of these producers.

ScienceAs part of our development we

engage independent research. As acompany, we participate regularly in publicly

funded research projects at national andEuropean level. We are a member of the ResearchAssociation of the German Gypsum Industry as wellas the German Federation of Industrial Cooperative

Research Associations (AiF). Our company alsocooperates closely with universities and maintains

several endowed professorships in Germany.Knauf also offers young people the opportunity

to gain academic qualifications up to MBAlevel within the framework of the

company.

CustomersThe key to our success is our focus on

our customers. Our priority is to understandtheir needs and issues and then provide the

appropriate building products and systems. We arein constant communication with our customers through

all the media available. We also provide practicalassistance in the form of training at our new facility, The Cube. For instance, apprentices from Carillion,

one of our many clients, are being trained in dryliningtechniques by our technical staff on an ongoing basis.

This includes hosting industry events, sharingknowledge through the delivery of RIBA-approved CPD sessions, and meeting with our customers to discuss specific

projects and showcase ourproducts and services.

MediaWe believe that it is important to

communicate well both to our owntrade press but also with the local

press in the areas where we operate. So we work on cultivating good

relationships with both.

AssociatesKnauf is future-proofed as a family

business by Alexander Knauf joiningthe Group’s Management Board,

so that shares in the company remain wholly in family ownership.

True partnership58

True partnership 59

Customer focus is an absolute priority

Knauf is constantly aiming to create a special partnership with customers. Our closeness to the customerand their loyalty to the company are bound up with our excellent technical advice and support.

Together these three elements are the foundation forquality relationships which, in turn, form the basis forsustainable action.

The skilled dryliners who use Knauf products andsystems in their everyday work play an importantrole in this context, so we are always seeking waysto improve our collaboration with the strongestperformers in the sector and so we can develop themarket together. At the same time, we are committedto providing even more intensive support for thedrylining sector.

TrainingKnauf has purpose-built, fully-equipped trainingcentres based in Sittingbourne and Immingham. Fromthese centres a variety of courses provide practicaltraining on the design and construction ofplasterboard systems. These include partitions, walllinings, suspended ceilings, fire protection andshaftwall. Training is also provided on taping andjointing and plastering (both hand-and machine-applied in both cases).

The training centres are staffed by experiencedinstructors, all of whom have a wealth of experiencein the construction industry and specialise in eitherplastering or drywall work.

The premises are set up in accordance with CITBrequirements for the provision of both short durationand NVQ courses in the construction of plasterboardsystems. All tools and equipment are supplied totrainees during their time on the course.

Knauf is a member of the RIBA CPDProviders Network. We offer a rangeof CPD essential seminars andapproved literature designed to

enhance and increase the knowledgeand skills of the professional architect.

The seminars include:

• Dry Screed Flooring solutions• Solutions using exterior cement boards• Waste management and recycling• Drylining solutions in the education environment• Drylining solutions in the healthcare environment• Drylining solutions in the residential environment • General drylining products and systems overview• Interior Solutions for Public Buildings – Vinova• Board Cladding – certainty from design

True partnership60

Enhanced satisfaction throughcustomer surveysWe employ independently managed researchers to undertake customer satisfaction surveys in aprogramme that we call ‘Insights for Action’.

This does not just measure the satisfaction levels of our customers regarding the products and services that we provide. The survey also provides us with insights as to how our customers and non-customers perceive us and measure us againstour competitors.

The research is conducted over the telephone, with researchers calling both customers and non-customers so as to provide an accurate reflection of how we are viewed by the market as a whole.

The questionnaire has both quantitative andqualitative elements, using 10 key performanceindicators. On the quantitative side, there arequestions about delivery, flexibility and reliability,stock availability, price and product quality andperformance. The qualitative questions – the softerelements – concern responsiveness, relationships,knowledge and experience, and the quality of thecommunication they receive from Knauf.

In this way we can measure ourselves, analyse any differences between how we perceive ourperformance and how our performance is perceived, and see where we need to improve.


Close cooperation with the buildingmaterials tradeKnauf keeps closely in touch with its partners andconstruction professionals by participating in a wide range of exhibitions throughout the UK. In spring 2014 the exhibition Architects@Workfeatured Vinova, the gypsum fibre panel, which waschosen as an innovative product by an independentpanel of architects and interior designers. TheSurface Design Show highlighted the CleaneoAkustik range of perforated plasterboards that cut the amount of pollutants and odours.

Throughout the year Knauf exhibits at specialist trade events such as: PHEX, the national plumbingand heating exhibition roadshow; Timber Expo,dedicated to the timber trade; the National Painting& Decorating Show, the decorating industry’sshowcase; and Ecobuild, the world's leading eventfor sustainable design, construction, energy and the built environment.

In this way Knauf is able to continue a dialogue withmembers of the various constituencies that it serveswithin the construction industry, from professionalssuch as architects and specifiers, right the waythrough to apprentice-trained tradesmen.

True partnership 61

Customer-focused websiteThe internet is an important element in communicatingwith customers and in promoting sustainability. Our UK website provides a valuable resource to ourcustomers, enabling them to download the relevanttechnical documents without the delay, inconvenienceand cost in resources that would be required to havethese printed centrally and sent out.

But this is just the start of what can be achievedonline, as the website can also enable the user toeasily compile what would otherwise be complexdocuments. We have pioneered the online Operatingand Maintenance (O&M) Manual compilation tool.

Unique in the lightweight building products andsystems sector, this tool enables customers to pulltogether all the essential, compulsory informationrequired on site – such as system overviews,installation instructions, product data sheets andadditional environmental, health and safety, qualityand responsible sourcing policy documents – all with a few clicks of the mouse.

The system then compiles all of these into apersonalised Operating and Maintenance Manualfor any given project. The finished O&M Manual isthen created in pdf format, and can be printed out or saved for future use; with the entire process takingonly a few minutes.

Insights for the trade pressKnauf counts the specialist media as the importantpartner in the building materials market, particularlybecause of its valuable role in disseminatingtechnical information to a variety of audiences.

We foster our relationships with editors andjournalists, alerting them to innovations and trendswithin the sector and promoting best practice. We regularly meet representatives of tradepublications and provide information and commentfor the features and news articles that they carry.

We work with those journalists writing for thedrylining and plastering market to give them theopportunity to work with our products, to see howthey perform in action and how they aremanufactured at our factories.

As a result the Knauf brand is strong, well-known and highly respected.

True partnership62

Training with KnaufKnauf is committed to creating best practice within the industry as a whole and to its established partners. We have heavilyinvested in training facilities so we can provide practical training,as can be seen our newly built state-of-the-art training centre inSittingbourne, The Cube.

In a recent pilot scheme Carillion and Knauf collaborated to taketen apprentices who each completed an 18-month training coursethat will lead to a Level 2 NVQ Diploma and Level 2 ConstructionDiploma from the CITB.

The apprentices are taught the practical elements of building wallsand ceilings, the current Building Regulations and how to meetthem, as well as the Construction Design and ManagementRegulations governing site safety.

After a 16-week programme, the apprentices work on site forCarillion sub-contractors so that, by the end of their training, theycan perform all elements of drylining as well as being able to readand extract information from drawings and specifications andconform to general workplace safety guidelines, security and waste management controls.

Knauf believes that developing this type of bespoke training is agood example of how we seek to add value and act as a partnerrather than simply a supplier.

We also provide training on taping and jointing and plastering (both hand-and machine-applied in both cases).


True partnership 63

Strong commitment at association levelKnauf is an active member in key business associations wherewe seek to work with other like-minded companies to represent the construction sector. In the UK we are members of the GypsumProducts Development Association (GPDA) which develops andencourages the understanding of gypsum-based building productsand systems and pioneers new applications for these products. The GPDA also advises on matters of environmental impact, energy conservation and health and safety, wherever gypsum-based products are used.

As part of the GPDA, Knauf is also a member of Eurogypsum, the European federation of national associations of producers of gypsum products, whose prime aim is to promote both theproducts and interests of these producers.

The GPDA undertakes joint research projects on relevant scientific, technical, economic and legal matters and by initiating informationand public relations programmes. It places particular emphasis ondialogue with European governmental institutions and has its ownEurogypsum representation office in Brussels.

Knauf is represented on the board of the Eurogypsum tradeassociation by Maurizio Casalini, Manager at Knauf in Italy, who was appointed President in 2012. Individual topics areprocessed by a steering committee as well as various otherspecialist committees, in which Knauf staff feature as members,often in a management role.

Responsibility for employees64

Responsibility for

employeesKnauf employees obviously make a major and crucialcontribution to the company's success. Their dedication,skill and motivation are based on achieving Knauf'svalues of Menschlichkeit, Partnership, Commitment andEntrepreneurship in daily working practice.

At Knauf we encourage staff through clear guidance that motivates them to excel

Responsibility for employees 65

culture

recruits

opportunities

personal

Sittingbourne

Immingham

community

developmentworkforce

gender

male

family

family

training

talent

talent

health and safety

satisfaction

motivation

balance

driving

working

life stages

health

health

assessment

OHSAS 18001customer service

people

Knauf

employee

trust

female

manufacturing

commercial

admin

reviews

initiatives

local

local success

partnership

commitment

dedication

skill

skill

responsibility

Menschlichkeitfamily friendliness

flexibility

flexibility

culture

recruits

opportunity

personal

community

familytraining

talent

healthand

safety

driving

working

lifelife

Knauf

trust

skill



Excellent prospects from the outset

Our workforce – employment typeEmployees 0 50 100 150 200 250

Manufacturing

Commercial andAdministration

Knauf values its employees greatly, and this is demonstrated throughencouraging a corporate culture that is characterised by trust and byoffering attractive terms, conditions and benefits. We believe this bothattracts well-qualified recruits and retains existing employees; as dothe well-structured opportunities we offer for personal development.

Our UK workforce is varied, and the following graphs show itbroken down in terms of employment type, employment contract,region and gender. We review this regularly to identify anyshortcomings or opportunities available.

All our senior managers are hired from the local communitiesaround our two manufacturing bases in Sittingbourne andImmingham. Vacancies are advertised in the local community, and we brief any recruitment agencies that we use on where we would ideally like candidates to be based so they can workeffectively within the business.

216

133


We must ensure that we have highly trainedspecialists because they are critical to our company'ssuccess. We operate within an economy where thepopulation is ageing, so recruiting and retainingdiverse talent, together with developing staff to theirfull potential, is a major priority. We take ourresponsibility seriously and demonstrate this throughour commitment to all forms of training, andvocational training in particular.

PPD (People Performance Development) meetingstake place every year with all employees, from themanaging director to operators. They act as themeans for employees to determine and discuss thelink between their personal ambitions and thecompany’s business aims. Once the employees havediscussed their continued development with theirmanager, a senior manager then reviews the resultsto facilitate and encourage progress. In 2014 wehave been working towards accreditation under theInvestors in People scheme, the UK's most successfulframework for business improvement through peoplemanagement.

As part of our development offering, we also enableemployees to undertake professional studies whileworking. There are a number of options, includingday release or home study time. Currently we haveemployees working towards financial, technical andcommercial qualifications.

Enabling and empowering our people

Our workforce – contract typeEmployees 0 50 100 150 200 250 300 350

Permanent

Fixed-term

Our workforce – regionEmployees 0 50 100 150 200 250 300 350

UK

Ireland

Our workforce – genderEmployees 0 50 100 150 200 250 300 350

Male

Female

340

9

290

59

345

4

Training hours per employee – employment typeHours 0 3 6 9 12 15 18 21 24 27 30

Manufacturing

Commercial andAdministration

Training hours per employeeHours 10 14 18 22 26 30 34 38

2011

2012

2013


In 2014 we have introduced Customer Serviceapprenticeships. Assessments are carried out during working hours, as they are evidenced based.There are also mechanical and engineeringapprenticeships in the Sittingbourne and Imminghamplants. The average number of hours spent ontraining per employee is approximately 25 hoursper annum.

The percentage of staff receiving regularperformance and career development reviews is100% and has been for the last three years. As canbe seen in the graphs opposite, we have increasedthe number of hours’ training per employeesignificantly over the last four years.

Looking in more detail at how training is brokendown by gender and employee category, it can beseen that there is negligible difference in the numberof training hours between genders. There is adifference in the number of hours between themanufacturing and commercial and administrativelevels; with those working in commercial andadministration averaging six hours less trainingduring 2013.

During 2012 we implemented SAP across thebusiness which contributed to delivering an extra6000 hours of training for our staff.

Training hours per employee – genderHours 0 3 6 9 12 15 18 21 24 27 30

Male

Female

28.5

21.7

26.05

25.32

35.7

27.8

25.9

Prioritising safe and healthy workingIt is a truism that staff can only perform at their best ifthey are safe and healthy. So we comply with thestrictest work safety standards and promote acompany healthcare system that includes a broadrange of offers and programmes.

We documented our principles of action in anoccupational health and safety policy in 2012 asfollows:

• Reduce risk and accidents through consistent training;

• Ensure complete compliance with statutory occupational health and safety regulations;

• Implement an effective health and safety management system in all areas of the company;

• Continually improve the health and safety management system in terms of healthcare, occupational safety, fire safety and operational safety;

• Identify occupational illnesses;

• Analyse and evaluate workplace accidents based on internal and external audits; and

• Enforce Knauf’s own internal safety standard.


These seminars focus on developing skills andknowledge in management and staff leadership.They fulfil two roles, because they not onlydisseminate knowledge to the participants, but also enable them to exchange views and shareexperiences with their counterparts in other Knaufbusinesses. Feedback from participants has shownthey find this informal, networking element of theseminars as useful and educational as the formalcontent.

Talent managementKnauf aims to give diverse and dedicatedprofessionals and executives the opportunity to takeon responsibility as early as possible in their career.This enables them to demonstrate their promise bycarrying out challenging projects.

By doing this, we are able to recognise andencourage talent, enabling us to source keymanagers and roles from within our own ranks. We started our International Talent ManagementProgramme based on this initiative in 2010 and nowmore than 200 diverse professionals and executivesfrom more than 30 countries – including the UK –have taken part in seminars conducted by the St.Galler Business School.


T H R O U G H O U R TA L E N TMANAGEMENT PROGRAMME

200+EMPLOYEES HAVE TAKENPART IN SEMINARS AT THEST GALLER BUSINESS SCHOOL


Knauf safety standard provides theframeworkThe Knauf Safety Standard referred to above is abinding statement of action that must be observed byall employees. This then anchors a comprehensivepolicy of occupational health and safety. In 2013,this standard was extended to all areas of thebusiness.

The main components of the safety standard are thedefinition of competencies and responsibilities. Theseresponsibilities are comprehensive and wide-rangingand include: requirements for risk assessments;measuring the effectiveness of occupational healthand safety measures; emergency planning; and thecontents of the training programmes for employees.These requirements are backed by our safetyguidelines, which state precisely how any givenmeasure is to be implemented.

The Knauf safety standard already fulfils the OHSAS18001 norm (Occupational Health and SafetyAssessment Series), which is established in more than80 countries as a recognized standard forexemplary occupational health and safety incompanies.

The Knauf safety standard has also been widelyrecognised by third parties. The German SocialAccident Insurance Institution for the Raw Materialsand Chemical Industry (BG RCI) awarded it thequality seal Sicher mit System (Systematic Safety).Looking forward, our safety standard will be appliedto all of the global company's locations.

DrivingKnauf has invested in Advanced driving and EcoDriver training courses for employees. The coursesare designed to capitalise on the strengths andnatural ability of the driver, and provide advice forfurther improvements, reducing crash risks anddriving economically to reduce fuel consumption.OHSAS

18001O C C U PAT I O N A LHEALTH AND SAFETYASSESSMENT SERIES

T H E S A F E T Y S TA N D A R DTHAT KNAUF ADHERES TO


tests with exclusive discounts are provided for allemployees. Knauf provides a Health AssuredEmployee Assistance Programme which offersconfidential support to employees and their familiesas well as access to online health assessments for all employees offering recommendations regardingpersonal health.

Knauf has partnered with Cyclescheme Ltd to deliver the Government’s Cycle2Work initiative, in an easily accessible manner to ensure that Knaufemployees can make the best use of theGovernment’s tax concessions. Developed inresponse to the Department of Transport’s schemeto promote healthier journeys to work and to reduceenvironmental pollution, the scheme offers both taxand National Insurance savings to participatingKnauf employees through a salary sacrifice scheme,while promoting a healthier lifestyle. During 2013 a number of Knauf employees participated in a cycle ride between our factories, raising moneyfor charity, and becoming fitter in the process.

Family-friendliness is keyWe encourage employee satisfaction and motivationthrough acknowledging the work-life balancebetween family, personal interests and professionallife as much as possible. With this in mind, Knaufemployees have the option of flexible workingmodels and in certain circumstances can work fromhome. Job-sharing models also provide even moreflexibility when needed, while additional paternitypay is available for those with more than one year’sservice.

Knauf UK has introduced a childcare voucherscheme in partnership with Edenred. The schemeenables working parents to save money on childcareand the vouchers can be used to pay for the care ofchildren up to 15 years of age.

Health management tailored to lifestagesWe are also anticipating demographic changesrelating to the age of our employees. Already thelargest employee group is those aged over 40.Consequently, our health, safety and pastoralprogrammes will increasingly focus on the needs of the different life stages. This primarily involvesmaintaining the physical and mental fitness ofemployees within the framework of occupationalhealth management.

Local initiatives on health and safetyInitiatives on health and safety help to ensure ouremployees are fit and healthy. Knauf provides healthchecks to our company car drivers which includehearing, sight and blood pressure tests. Additionaltests are also provided to our factory employeesincluding audio assessments, lung function, skinreviews and night work assessments, and free eye


Commitment to society74

Commitmentto society

Our values mean that we take responsibility atcommunity level, supporting cultural and social projectsin a variety of ways; with a special emphasis on thecauses and initiatives proposed by staff.

Knauf charity bike challenge

Commitment to society 75


Reaching far beyond the factory gates

Responsibility for culture and social projectsKnauf is very keen to promote culture. The Knauf Museum inGermany is at the heart of this. Since it opened its doors in 1983,the Baroque building has been exhibiting a unique permanentcollection of reliefs from all the great cultural epochs.

Knauf Museum presents cultural treasures from around the worldThe idea for the Knauf Museum came from Dr Alfons Knauf, who has spent his life conducting research on gypsum. He beganassembling the collection in 1973 and it now extends to 200original casts of significant works of art from the most prestigiousmuseums in the world.

The exhibitions are extremely popular with experts and visitorsalike, while the museum has attracted more than a million peoplesince it opened nearly 30 years ago.


The Little Miracles ProjectWhenever we are involved in larger scale projectswe can work with our key clients, who may beprincipal contractors, sub-contractors includingdryliners and decorators or merchants, to offersupport to local initiatives and charities.

For instance, Knauf recently donated 200m² ofGIFAfloor to the Little Miracles Project. Little Miraclesis a parent-led centre, support group and charity forchildren with additional needs, disabilities and lifelimiting conditions. Little Miracles now helps 700families and has more than 2500 children registeredto use the facilities.

The company’s own flooring team laid out theflooring in just a day and a half in a project to builda new community centre in just 10 days. The Knaufteam worked closely with Nu-Heat, which installedthe underfloor heating system so that as each panelof pipework was completed the team would layGIFAfloor over the top.

Support social projectsAll our UK operations have undertaken localcommunity engagement initiatives, impactassessments and development programmes relevantto their regions. We recognise that, as a large-scalemanufacturing business, we have an opportunity toadd value to our local communities aroundour sites and key projects. During 2013 wedonated approximately £19,000 in materialsand the business contributed to and raisedover £10,000 in our fundraising andcharitable endeavours.

We have identified charitable concerns in theareas local to our factories, and each year wecontribute in different ways. This includes supportingchildren’s hospices, funding Ross Wilson, a localParalympic table tennis player who won a bronzemedal at the 2012 Olympics, and carrying out fund-raising events such as a bike ride between ourfactories in Immingham and Sittingbourne.

Designated charitiesFurthermore, each year the company chooses anadditional charity to support. We have supportedresearch into prostate cancer so, during October2011, we created ‘Beardtober’ – our alternative to‘Movember’ – to raise funds. A number of male staff

grew beards after being clean-shaven on the first of the month

and then not shaving until the31st. This raised more than£5,000. In 2012 ourdesignated charity was theLord’s Taverners. The Lord’sTaverners recognises that sport

and recreation are essential foryoung people and its mission is to

give a 'sporting chance' to those inneed. Knauf employees took part in a challengingcycle ride from Immingham, near Hull, toSittingbourne, Kent: a grand total of 237 miles overfour days.

£4000RAISED BY ONESTAFF MEMBER

T R A N S - A T L A N T I C CHAR I TY YACHT RACE

£5000RAISED BY MALESTAFF MEMBERS

B Y N O T S H A V I N G F O R O N E M O N T H

200m2

G I F A f l o o r

DONATED AND INSTAL LED F O R C O M M U N I T Y C E N T R E


Imagination LibraryKnauf is the first UK corporate participant in DollyParton’s Imagination Library; an initiative to improveliteracy in the under 5s through a charitable schemeof book distribution to registered children.

The music star launched the Imagination Library in1996 in her home county in East Tennessee. Dolly'svision is to foster a love of reading among pre-schoolchildren and their families by giving them a speciallyselected book each month. As the first corporateprogramme operator, Knauf is running a registrationprogramme for the children of its employees.

CRASH (Construction and PropertyIndustries’ Charity for the Homeless)Knauf UK has been a long-term supporter of CRASH,which works with charities and agencies to improveand refurbish accommodation/centres for thehomeless. The charity looks to promote the supply ofmaterials, manpower or professional expertise, eitherfree, at cost or at heavily discounted rates.

CRASH works solely with homeless charities oragencies in the UK. At any one time, it has around40 live projects across the UK. These include daycentres, direct access hostels, training centres andmove-on accommodation.

Sports sponsorship for young peopleKnauf sponsored Ross Wilson, the Paralympian table tennis player from the Isle of Sheppey, near the Sittingbourne plant. Ross claimed bronze in the Class 6-8 team event at the London 2012Olympics, after a semi-final defeat in the singles,aged just 17. Currently the world No 2, he is nowbased in Sheffield where he trains at the EnglishInstitute of Sport.

Knauf Sponsor Iwade Jubilee GardensDuring 2013 Knauf linked with Iwade Parish Council and contributed to their Jubilee Project.Six hornbeam trees were planted to provide a focal point in the village park, which was opened by the Mayor of Swale, Pat Sandler.

Reaching far beyond the factory gates


Local sourcing of materialsWe strive to procure as many of our materials aspossible from our local communities. This includesour raw materials through to the day-to-dayconsumables required in running our offices. Allmaterials are purchased in accordance with a strictethical code, and we ensure we uphold the laws andother rules in effect in the countries in which we dobusiness.

Plant tours giving insights to thecommunityWe offer tours of our factory to our stakeholders andother interested parties, showing our businessoperations to our local communities. During 2013we conducted approximately 50 tours of ourfactories, opening our doors to over 500 people.

For instance, a group of 15 Kent County Councilofficers, from disciplines ranging from Highways toSocial Services, were recently shown around thefactory to learn about the improvements made to oursafety culture over recent years.

Flavio Walker, from Kent County Council, whorequested the visit as part of their continuingprofessional development programme, commentedon the visit: “Although we have a wide range ofsafety issues to deal with, we don’t usually seemanufacturing activities. This was a great opportunityfor our team to see different aspects of riskmanagement”.

During November 2013 we hosted an 'open day'with Westfield School, a local Sittingbourne school.The purpose was to broaden the minds of youngstudents about the career opportunities available to them within the construction industry. The pupilswere shown our factory and attended our trainingschool during the day.

Managing complaintsMaking sure that we respond adequately tocomplaints from the communities local to our sites is one of our key concerns. We have thoroughinternal procedures that ensure we respond promptlyand thoroughly to any complaints that wereceive.We are pleased to report that during 2013we only received one community-based complaintrelating to our activities, which was fully reviewedand closed out to the satisfaction of all parties.

We also receive a number of complaints related toour products and services which are managed viaour sales and customer services teams. These are all recorded and managed to ensure the satisfactionof our customers. We monitor the number ofcomplaints and regularly review our performance as part of our Quality Management System.

GRI indicators80

GRI Content Index

This sustainability report is based on the guidelines of the Global ReportingInitiative (GRI), Application Level C.

The Global Reporting Initiative originated in 1997 with the aim of developingglobally recognized sustainability reporting guidelines and thereby enablingcomparability between companies from different sectors and of different sizes in relation to economic, ecological and social aspects.

Key

Full disclosure

Partial disclosure

GRI Disclosures Page Disclosure Comments

1. Strategy and Analysis

1.1 Statement from the most senior decision maker 5of the organisation about the relevance of sustainability to the organisation and its strategy.

2. Organisational Profile

2.1 Name of the organisation. 5, 7

2.2 Primary brands, products, and/or services. 7-9

2.3 Operational structure, including main divisions, 7-9operating companies, subsidiaries, and joint ventures.

2.4 Location of organisation's headquarters. 8

2.5 Number of countries where the organisation operates, 8and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

2.6 Nature of ownership and legal form. 8

2.7 Markets served (including geographic breakdown, 7-9sectors served, and types of customers/beneficiaries).

2.8 Scale of the reporting organisation. 9

2.9 Significant changes during the reporting period First Sustainability Reportregarding size, structure, or ownership.

2.10 Awards received in the reporting period. No awards receivedin 2013

GRI indicators 81

GRI Disclosures Page Status Comments

3. Report ParametersReport Profile

3.1 Reporting period for information provided in the report. 5

3.2 Date of publication of most recent report (if any). First Sustainability Report

3.3 Reporting cycle. Annual

3.4 Contact point for questions regarding the report or 83its contents.

Scope and Boundary of Report

3.5 Process for defining report content, including: 12-21,• Determining materiality 56-57• Prioritizing topics within the report, and• Identifying stakeholders the organisation expects

to use the report.

3.6 Boundary of the report UK Operations

3.7 Specific limitations on the scope or boundary of the report.

3.8 Basis for reporting on joint ventures, subsidiaries, leased First Sustainability Reportfacilities, outsourced operations, and other entities that can significantly affect comparability of the reporting periodsor data between organisations.

3.10 Effect of any re-statements of information provided in earlier First Sustainability Reportreports, and the reasons for such re-statement.

3.11 Significant changes from previous reporting periods in First Sustainability Reportthe scope, boundary, or measurement methods applied in the report.

3.12 GRI Content Index 80-82

GRI Disclosures Page Status Comments

4. Governance, Commitments and EngagementCorporate Governance

4.1 Governance structure of the organisation. 8

4.2 Indicate whether the Chair of the highest governance 8body is also an executive officer.

4.3 For organisations that have a unitary board structure: Not applicableState the number of members of the highest governance body that are independent and/or non-executive members.

4.4 Mechanisms for shareholders and employees to provide A company suggestionrecommendations or direction to the highest governance body. scheme has been in

place at Knauf since1975. Suggestions for improvement can be submitted from all areas of the company. These suggestions are examined by Knauf experts. Employees are rewarded if the suggestion is implemented. The level of the award is determined by the significance of the improvement and the savings thus made. Furthermore, it is possible to propose ideas, suggestions or other information in the forum of the employee reviews.

4.14 List of stakeholder groups engaged by the organisation. 56-57

4.15 Basis for identification and selection of stakeholders with 56-57whom to engage.

GRI indicators82

GRI Content Index

GRI Indicator Page Status Comments

Performance indicators

EC2 Financial implications and other risks and opportunities 14-16,for the organisation's activities due to climate change. 43-45

EC7 Procedures for local hiring and proportion of senior 67management hired from the local community at locations of significant operation.

EN2 Percentage of materials used that are recycled input 27materials.

EN12 Description of significant impacts of activities, products, 52and services on biodiversity.

EN13 Habitats protected or restored. 52

EN16 Total direct and indirect greenhouse gas emissions 47 Absolute carbonby weight. cootprint (CO2e)

2010: 120,5402011: 127,7222012: 122,8272013: 126,048

LA1 Total workforce by employment type, employment 68contract, and region.

LA8 Education, training, counseling, prevention and 69-73risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

GRI Indicator Page Status Comments

Performance indicators (continued)

LA9 Health and safety topics covered in formal agreements 71with trade unions.

LA10 Average hours of training per year per employee 69by employee category.

SO1 Nature, scope and effectiveness of any programs 76-79and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting the business activities in a community or region.

SO5 Public policy positions and participation in public 56-57policy development and lobbying.

PR3 Type of product and service information required 38-39by procedures, and percentage of significant products and services subject to such information requirements.

PR5 Practices related to customer satisfaction, including 35-36,60results of surveys measuring customer satisfaction.

Key

Full disclosure

Partial disclosure

GRI indicators 83

Contact for information about sustainability at Knauf:

Lorna StorkSustainability Manager

E-mail: [email protected]

Knauf is committed to the environment. This document is printed using processes that are:

waterless waste tolandfill

vegetableoil based

inks

recycledFSC stock

renewableenergy

carbonneutral

alcohol &substitute

free

100% 0%100%100%100%100%100%

KnaufKemsley Fields Business ParkSittingbourneKent ME9 8SR

Customer ServicesFreephone: 0800 521 050Freefax: 0800 521 205E-mail: [email protected]

Literature HotlineTel: 08700 613 700

Technical ServiceHelpline: 01795 416 259 E-mail: [email protected]

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