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Protecting the environment

Protecting the environment

Our environmental management systems continue to help us manage our activities in a manner that protects and, where appropriate, improves the environment. During the past year, our US distribution companies achieved certification to the ISO 14001 environmental management system, bringing the percentage of employees across the Group working to certified ISO 14001 systems to over 80%.

In March 2004, we were once again placed in the ‘Premier League’ of companies in Business in the Environment’s Index of Corporate Environmental Engagement, scoring over 99%.

Significant environmental incidents arising directly from the Group’s activities increased from 32 in 2002/03 to 46 in 2003/04. Incidents resulting from third party activities, such as damage to gas pipes, also increased from 12 to 26. We believe most of the increase is due to improved categorisation and reporting by UK Gas Distribution.

None of these incidents has led to environmental damage that resulted in prosecution by enforcement bodies. However, in the US, we received fines totalling $7,850 for inadequate labelling of waste containers in Rhode Island and a breach of hazardous waste manifest regulations in New York state. These were procedural breaches and in neither case was the environment damaged.

As with safety, we investigate all environmental incidents and lessons learnt are communicated throughout the Group, where appropriate.




Contaminated land

We continue to manage our portfolio of potentially contaminated land. This contamination has mainly arisen from the previous manufacture of gas from coal and oil and from older electrical substations where there is a risk that the ground may have been contaminated with oil in the past through accidental spillage or leakage from equipment. Sites can sometimes have a complex mix of contamination dating back to the 19th century.

In the US, we have responsibility for 167 contaminated sites. Risk assessments have been carried out at all these sites and we have completed remediation projects at 34 during 2003/04. In the UK, we operate one of the country’s largest clean up programmes. SecondSite Property, the Group business that manages, cleans up and disposes of surplus, non-operational properties, manages 497 potentially contaminated sites and has completed remediation work at 33 locations.

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Climate change

We support international efforts to reduce climate change and continue to make progress in reducing our emissions of greenhouse gases.

Sources of greenhouse gas emissions 2003/04 graph
Text version

During 2003/04, our total greenhouse gas emissions amounted to some 10.6 million tonnes CO2 equivalent. Our largest source of greenhouse gas emissions continues to be methane leakage and venting from the UK and US gas networks, accounting for approximately 49.5% of our total emissions. In the UK, most of this leakage is associated with the joints on older cast iron pipes. We have a long-term programme to replace this type of pipe. Last year alone, approximately 1,600 miles of iron pipe were decommissioned.

An analysis of our greenhouse gas emissions, including those associated with sulphur hexafluoride, compressors on our gas network, energy use and transport, is available on our website, www.ngtgroup.com/responsibility.

In the US, our energy efficiency programmes have continued to deliver savings to our customers and have also contributed to reducing greenhouse gas emissions. Over the last year, our customers have saved nearly 2.25 billion kilowatt hours of electricity, equating to over 1.4 million tonnes of carbon dioxide.

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Electric and magnetic fields

Electric and magnetic fields (EMFs) are generated from a wide variety of sources, including our power lines and telecommunications infrastructure. The balance of scientific evidence is against EMFs resulting in adverse health effects and, in our view, the benefits vastly outweigh any potential risk. However, the perception that EMFs may do so is evident in parts of society, and we take this very seriously.

We look to government and regulators to identify any precautionary measures that may be necessary, as they can evaluate the science and weigh costs and benefits on behalf of society as a whole.

We continue to facilitate constructive dialogue between parties that have an interest in EMFs. We also support high quality research and development in this area and seek to ensure the results are published wherever possible.


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We employ a range of techniques to remediate contaminated land. For example:
Top In-situ removal of coal tar from a former manufactured gas plant in the US. The introduction of new technology, such as thermal desorption, enables us to clean up sites with limited disruption to local communities.
Bottom On site soil washing at a former gas works in the UK. This technique is suitable for extracting contaminants from some former gas work sites and helps to maximise the re-use of materials on site as well as minimise the amount of materials that have to be consigned to landfill.
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