Modern Slavery Statement

MODERN SLAVERY STATEMENT OF HANSON UK
FOR THE YEAR ENDING 31 DECEMBER 2016


Introduction

This is the modern slavery and human trafficking statement of Hanson UK, being Hanson Quarry Products Europe Limited and all its subsidiaries and UK group companies (the "Hanson UK Group"). This statement is made pursuant to s.54(1) of the UK Modern Slavery Act 2015 (the “Act”) and adopted by companies in the Hanson UK Group as their respective slavery and human trafficking statement for the financial year ending 31 December 2016. A full list of such companies is held at Hanson UK’s registered office in accordance with the Act.

The Modern Slavery Act 2015 creates offences in respect of slavery, servitude, forced or compulsory labour and human trafficking. Hanson UK is committed to combatting all such forms of modern slavery.

In accordance with the Act, this Statement is published on Hanson UK’s websites (www.hanson.co.uk and others).  The formal requirement is to publish this statement within six months after the end of the financial year 31 December 2016 (therefore before 1 July 2017). In accordance with the requirements of the Act, this statement will be reviewed, updated and published annually and the statement will therefore be reviewed and updated at the end of each financial year.

Hanson UK

Hanson UK produces aggregates (crushed rock, sand and gravel), ready-mixed concrete, asphalt, cement, cement related materials and certain contracting services. Hanson UK is a part of the global HeidelbergCement Group of companies, which has leading positions in aggregates, cement and concrete. Further information on our company structure can be found here .

The vast majority of Hanson UK's suppliers (and supply chain) are UK based. As such, products and materials are largely sourced only from the UK. Hanson UK's supply chain also draws on certain supplies to the wider HeidelbergCement group. Owing to these global suppliers, Hanson UK recognises that some countries in its supply chain may present an increased risk of modern slavery.

As a result of any risks faced by supplies sourced from the UK, as well as in the context of the risks arising from other countries, Hanson UK has in place various policies, procedures and processes to address modern slavery risks in its supply chain. These are described in this Statement.

Policies and procedures in respect of modern slavery

Hanson UK companies operate under a HeidelbergCement group compliance framework which commits the companies to the core labour standards of the International Labour Association (the "ILO"), the OECD guidelines for multinational enterprises and the UN's Universal Declaration of Human Rights. These principles have also been incorporated into Heidelberg leadership principles.

Hanson UK follows a Code of Business Conduct which can be found here. This commits Hanson UK to conducting business strictly in accordance with all applicable laws and regulations. Hanson UK is committed to fair employment practices and to following all applicable labour and employment laws.

Hanson UK's standard contractual terms of purchase require suppliers, and relevant third parties, to comply with a specific Supplier Code of Conduct, a copy of which can be found here. This Supplier Code of Conduct seeks compliance with international social accountability standard SA 8000 and the principles of the International Labour Organisation.

Key expectations from the Supplier Code of Conduct in respect of modern slavery are as follows:

  • Suppliers must not use child labour in any stage of manufacturing. Suppliers are requested to operate in accordance with the ILO convention recommendation of minimum age for admission to employment.
  • Compensation and benefits must comply with fundamental principles relating to minimum wages, overtime hours and legally mandated benefits.
  • Any form of forced or compulsory labour must not be used, and employees shall be free to leave employment after reasonable notice.
  • Suppliers are expected to adhere to the right of employees to freedom of association and recognition of employees’ rights to collective bargaining, in accordance with local law.
  • Workers must have safe and healthy working conditions that meet or exceed applicable standards for occupational health and safety.
  • Suppliers must require their own direct suppliers to adhere to the principles of the Supplier Code of Conduct and exercise diligence in verifying that these principles are being adhered to in their supply chains.

Hanson UK production sites are certified to the BES 6001 standard in respect of Responsible Sourcing of Construction Products. Responsible Sourcing of Construction Products encompasses social, economic and environmental dimensions. It addresses aspects such as stakeholder engagement, labour practices and the management of supply chains.

The production of cement at our Ketton Works, Padeswood Works and Ribblesdale Works sites have been given an 'Excellent' rating in respect of Responsible Sourcing of cement. Other Responsible Sourcing accreditations have also been awarded.

Assessing and managing risk

The HeidelbergCement group has been running a risk assessment survey in respect of child labour and human rights violations since 2013.

Hanson UK suppliers are assessed against wide ranging criteria during tender / appraisal processes. This includes assessment against the Code of Conduct and the Supplier Code of Conduct. Specific diligence is required by the standard appraisal procedure in respect of health and safety and corporate social responsibility, including diligence in respect of working conditions, employee pay, employee age restrictions and independent employee grievance procedures. The procedure dictates that each supplier has to be approved by the Purchasing Director according to such criteria.

Hanson UK and the HeidelbergCement group also have in place a compliance hotline (MySafeWorkplace) for reporting any incidents of non-compliance with the Supplier Code of Conduct. Since 2013, this has also included criteria for violations of various human rights and of core labour standards such as discrimination and child labour. It enables both internal and external whistle-blowers to provide information about possible human rights violations and infringements of labour standards, as well as in relation to infringements of other laws. Every report is investigated. For example, in 2016, 46 reports were submitted – no instances of child labour or forced labour were reported or alleged.

Hanson UK also implemented specific anti-slavery e-learning as a further enhancement to its protocols.

The procedures of Hanson UK are regularly assessed against best practice. Part of this assessment is a review of the extent to which modern slavery can be identified and eliminated from its business and supply chain. Hanson UK is also planning a new specialist due diligence review procedure / platform incorporating appropriate investigative and tailored questions and confirmations relating to anti-slavery.

Ed Gretton
Director of Hanson Quarry Products Europe Limited

22 February 2017