Responsibility

Environment

Health and safety

We understand our responsibilities to protect the health and safety of our employees and the environment in which we operate. We conduct regular risk assessments, audits and training, and we fully comply with the requirements of local legislation, such as the Health and Safety at Work Act, 1974. Biocompatibles, Inc. have an NRC Radiation Licence, and employees involved in the receipt, processing and distribution of radioactive sealed sources have access to the Biocompatibles, Inc. Radiation Safety Manual and receive annual radiation safety training.

Environment, Health and Safety (EHS) Committees meet regularly at each of our manufacturing sites, and we regularly remind employees of their obligation to report any incidents to ensure that measures can be taken for improvement. We maintain strong local relationships with Government Health and Safety bodies.

We publish the annual Health and Safety incidence rates for our manufacturing sites and the Group has an excellent safety record with only four reportable incidents recorded during the last year.

Sustainability

We aim to operate our business sustainably to help manage finite resources. We recycle paper, cardboard, plastic and metal at each of our sites and encourage the use of local materials, suppliers and contractors wherever possible and cost effective.

Our London office received a Gold Award last year in the 2010 Clean City Awards Scheme, improving on the merit received the year before. This Award recognises businesses with responsible waste management practices in the City of London.

Our manufacturing site in Wales aims to adopt additional environmental management systems such as ISO 14001 over the longer term. We also have an Integrated Pollution and Prevention Control (IPPC) permit in Wales from the Environment Agency and we plan to complete installation of a new waste water treatment plant during the next financial year. In Australia where water is a particularly valuable resource, we collect rain water in storage tanks, and we regularly review if there is a need to increase our water storage facilities.

Energy efficiency

We regularly assess the environmental impact of our business to ensure that we are taking advantage of all opportunities to improve our performance and efficiency. We operate an international supply chain for the manufacture of our acute care products which involves international transportation over long distances. We aim to transport in bulk where possible and use the most efficient transportation to save money for the Company and reduce our carbon emissions. We have a number of initiatives underway to evaluate whether there are any manufacturing cost savings or other efficiencies to be made.

We monitor electricity and gas consumption at manufacturing sites and offices which employ more than 20 people, and we try to reduce carbon emissions and increase energy efficiency wherever possible. Our office space is rented so we liaise with local landlords and managing agents to ask about the deployment of energy efficient systems. We are not currently collecting emissions data on transport/logistics but we are reviewing this for potential inclusion during the next financial year.

Our Annual Report and Accounts 2012 includes a summary of all our 2011-12 activities, together with our latest data to help us understand and manage our various community and environmental impacts.

Targets for 2012-13

• Build a global environmental management system.
• Apply an appropriate intensity metric to our energy consumption figures for 2012/13.
• Evaluate and set quantative environmental targets for 2012/13.