Wolseley plc

Annual Report and Accounts 2007

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Corporate Social Responsibility report

Waste Management Wolseley recognises its responsibility to measure and minimise the waste generated by its business activities. Waste is divided into hazardous and non-hazardous, with hazardous waste containing properties which may render it harmful to human health or the environment and non-hazardous waste comprising general office waste such as paper, card, wood, plastics and metals. All of the Group’s businesses comply with their applicable waste management regulations.

Hazardous waste

Non-hazardous waste

The tables above comprise waste data captured from businesses representing 63.0 per cent of Group turnover for the year ended 31 July 2007.

Wolseley UK is continuing to implement initiatives to reduce, reuse and recycle its waste through waste segregation facilities such as skips, wheelie bins and rear-end loader bins. A project to recycle waste from branches back to the Regional Distribution Centres (‘RDCs’) began in February 2007 and the company has set a target of decreasing waste to landfill by 5 per cent and increasing recycling by 5 per cent across the RDC network year on year. All RDCs are now recycling cardboard and plastic and this is being monitored on a monthly basis. As part of the objectives for 2007/08, Wolseley UK is working with a number of its largest suppliers to reduce the quantity and improve the environmental quality of packaging used in its supply chain with the aim of minimising the environmental impact of waste for its business and customers.

As required by respective domestic legislation, Wolseley UK and Brossette both comply with the European Waste Electrical and Electronic Equipment Directive (the WEEE Directive) regarding electrical material waste. Brossette has also installed containers at each of its branches for the collection of plastic, paper, wood and metal for recycling. ÖAG is a licensed member of the Abfallrecycling Austria AG (‘ARA’) and complies with all Austrian legislation with respect to waste collection and disposal and is subject to regular ARA audits.

In Ireland, Heatmerchants backhauls all of its waste paper, cardboard, wood pallets and plastic from its branches back to its distribution centre for recycling. During the year, over 2,800 tonnes of such material was recycled, resulting in cost savings of €500,000. Beijer in Sweden, a part of DT Group (‘DT’), has this year recycled 4,000 tonnes of waste, saving it from landfill, which resulted in cost savings of approximately £200,000.

Stock Building Supply (‘Stock’) employs a process at its operational locations to identify recycling opportunities and waste stream reduction, focused on removing solid wastes and recyclable material in amounts which maximise the tonnage per haul, thereby minimising environmental impact, expense and the number of hauls needed to service its operations.

Water Use Wolseley recognises that, irrespective of geography, water can be a scarce resource. Steps have been taken during the year to measure water consumption throughout the Group to enable the appropriate goals to be set for greater water efficiency.

Supplied water use – Indirect impact

The table above comprises water consumption data captured from businesses representing 64.5 per cent of Group turnover for the year ended 31 July 2007.

Energy Efficiency In the year ended 31 July 2007, Ferguson installed high efficiency heating, ventilation and air conditioning equipment and controls, and energy efficient fluorescent lights in its warehouses which offer up to 50 per cent greater energy efficiency than standard lamps. The Wolseley UK standard fit-out specification for its warehouses and distribution centres incorporates energy saving measures including low energy lighting, high frequency lamps and lighting controls. This area of energy efficiency is constantly being reviewed to ensure the specification reflects current developments and best practice in this area.

Environmental Opportunities Wolseley UK’s Sustainable Building Centre (‘SBC’), a 6,800 square foot interactive showcase for renewable and sustainable building materials, is presently under construction and is scheduled to be fully operational by April 2008. The building features the best available sustainable construction products selected from a bespoke range provided through Wolseley UK trading brands. The range, which has been established since the beginning of 2007, is already proving attractive to many Wolseley customers in a diverse range of business segments. Wolseley UK intends that the SBC will become the leading UK industry resource for sustainable building products and supporting information, promoting sustainable building best practices.

The SBC project has firmly established Wolseley UK as a leader within the sustainable building sector in the UK. Customer demand for sustainable materials will be supported as regulatory standards such as the UK Code for Sustainable Homes, the European Performance of Buildings Directive and the Merton Rule, the planning policy which requires the use of renewable energy onsite to reduce annual carbon dioxide emissions in the built environment, are implemented. Wolseley UK will continue to monitor product advances and process changes in order to maintain excellence in the growing sustainable construction sector.