Head Office 10 Caisteal Road Castlecary, Cumbernauld G68 0FS Tel: 01324 841398 Fax: 01324 841282 Email: [email protected] Fife Depot Unit 3, Hayfield Business Park Hayfield Industrial Estate Kirkcaldy, Fife KY2 5DJ Tel: 01324 841398 Email: [email protected] Satellite Office Units 2–4, Pinewood Business Park Wilden Road Pattinson South Industrial Estate Washington, Tyne and Wear NE38 8QB Tel: 01324 841398 Email: [email protected]

cmswindows.com

2015 Sustainability Report cmswindows.com CMS Window Systems is a trading name of CMS Enviro Systems Ltd

CMS Window Systems

Sustainability Report 2015/2016

Committed to the delivery of quality products and services through the development of our people. Introduction 1 Our vision for a sustainable business and our journey so far 2 Bringing our vision and values to life in everything we do 4 Introducing our sustainability strategy 7

Our environmental focus Reducing waste across our operations Minimising the impact of our manufacturing process Recycling extracted waste into by-products

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Our sustainability focus Our sustainability pillars Our 2020 Focus

8 8 8

Our operational focus Life cycle of products Raw materials and supply chain Designing efficiency Manufacturing efficiencies Transporting products to customers Product use by our customers Product end of life The Innovation Hub

14 16 18 20 22 23 24 26 28

Our people focus The people in our business Health, safety and wellbeing Ethical conduct and diversity Investing in our people at all levels A Living Wage employer Employee training and development Youth employment

38 40 41 42 44 45 46 47

Our community focus Community engagement Promoting employee volunteering on local charitable projects Committed to supporting local charities

48 50

32 34 36

52 53

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CMS Window Systems

2,000 PVCu and aluminium frames produced weekly

Our vision for building a sustainable business and our journey so far.

When CMS Window Systems launched in 2006 we knew we could do things differently and better, in a way that would benefit all stakeholders – our customers, our employees and the local communities in which we operate, whilst having minimal negative impact on the environment. At CMS we know we make an enormous difference to the quality of this country’s homes and buildings. We’ve made this positive contribution by investing time and effort in creating a portfolio of outstanding products and systems with components supplied from some of the world’s most innovative companies.

Thousands of square metres of aluminium curtain walling manufactured

That’s why we have in place one of the manufacturing industry’s most comprehensive strategies for people development. For example, in the past 12 months alone we have achieved Investors in People Gold and Investors in Young People, introduced the Living Wage, and boosted our apprentice numbers further. We have now passed the 100 Modern Apprenticeships mark for our business.

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Over 245 employees across three key UK locations

We actively support the local communities in which we operate. From donating to charities directly to encouraging our employees’ active participation in community initiatives, it is an integral part of our company ethos.

100th modern apprenticeship achieved

We know this holistic sustainability strategy makes us more efficient and profitable. The evidence is clear to see in our strong sales and profit growth. This report details our sustainability strategy, demonstrating the great progress we are making.

over the past two years

But the difference we make goes way beyond products in-use. From our inception a clear business strategy considered the environmental and energy impact of every aspect of how our business runs. We were recognised for our commitment to continually reviewing and enhancing our environmental performance throughout every aspect of our business by winning the Management SME award category in the VIBES Awards 2015. Environmental sustainability must go hand in hand with social and economic sustainability. For us that means focusing heavily on people – the people who work at CMS, our clients and their customers and those living and working around us.

Sustainability Report 2015/2016

Andrew Kerr, Managing Director CMS Window Systems

97% customer satisfaction score across the business

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CMS Window Systems

Sustainability Report 2015/2016

Bringing our vision and values to life in everything we do. Our vision and values are driven by a set of clear objectives by which the whole team lives and breathes. We call this our Vision Statement. CMS Vision Statement – To be the market leader through endorsements of our innovative products and services. – To be the preferred employer of choice through continual investment in our people to secure employment for future generations in the communities which we live and work. – To be the solutions-focused partner of choice, delivering quality products and professional trustworthy services on time, every time. – To transform communities through our responsible environmental practices and ethical commitments.

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CMS Window Systems

Sustainability. It’s in our DNA.

Sustainability Report 2015/2016

Introducing our sustainability strategy.

Environmental sustainability is vital to operating a successful, ethical business today, but equally so is economic and social sustainability – and this is where CMS sets itself apart. Businesses are an integral part of the communities in which they operate. We must have a positive impact on the people we employ, our customers and their customers, our local community and our physical surroundings. Our long term success is only possible with the support of all these stakeholders, which is why we work hard to ensure we not only comply with but exceed expectations. Our sustainability strategy is aligned with that of our customers, which is important given our role in delivering many public buildings, schools, hospitals and homes. And we also select our suppliers on their sustainability performance, which ensures integrity right along the supply chain. It is far-reaching too, affecting every part of our business and is continuously reviewed so we can become more sustainable year after year. There is always something that can be done better as processes, skills, technologies and policies change – we aim to always keep one step ahead.

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CMS Window Systems

Sustainability Report 2015/2016

Our sustainability pillars. Buildings and infrastructure clearly make positive contributions to many areas of our lives including employment, education, health and wellbeing. But being a successful sustainable business means having an awareness of the impacts that our business activities have on the environment and the people within it, and acting to ensure any negative aspects of this impact are minimal. Our 2020 Focus on Sustainability covers four key pillars: Operational

Environment and climate change

People

Communities

Our factories will operate in the safest and most energy efficient way possible. This ethos will feed into all areas of our business, including our installation teams who will strive for zero accidents and smooth integration with customer work schedules to avoid site delays.

Our operations will be managed in a way that continuously reduces our environmental impact, with an ever improving product and services portfolio which enables our customers to excel too. It’s an essential part of everything we do, with our Innovation Hub at the heart of training, learning and future debate.

Our people will have every opportunity to develop and flourish, with easy access to training and development at every stage of their career. We will also continue to provide the safest, most secure working environment with the business managed in a sustainable way for optimum job security.

Our business will support initiatives that deliver social benefit in our local neighbourhoods through our charitable donations and volunteering commitments. We will also continue to work closely with schools and colleges to provide secure employment and education for young people.

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CMS Window Systems

Sustainability Report 2015/2016

Businesses are an integral part of the communities in which they operate. We must have a positive impact on the people we employ, our customers and their customers, our local community and our physical surroundings.

Long term profitable sustainable growth and the investment in new energy efficient products

Investment in our people and the communities in which we work

Our rapid growth over a relatively short period could only have been achieved with a sustainable growth strategy. Central to this has been our commitment to investing profit into new energy efficient products that our markets will need both today and in the immediate future.

We simply could not function without great people and the support of the communities in which we work. We are one of the biggest investors in employee development and apprenticeships. We also support a wide variety of charities, which reflects our place at the heart of our local communities.

Innovative, low carbon glazing solutions for our clients Carbon reduction is one of the world’s most pressing challenges – and buildings are such a significant carbon contributor that we have a key role to play. We go the extra mile to ensure we have a product portfolio that allows our customers to deliver buildings and homes with a minimal carbon footprint.

Driving environmental innovation across our entire business Carbon-reducing products represent only part of our environmental innovation strategy. Since our inception, we have led the market in terms of how we run our factories with processes optimised to minimise resource consumption and virtually eliminate landfill waste. No stone is left unturned as we strive for improvements every day.

Developing long-lasting, meaningful partnerships with our supply chain Our suppliers are integral to our success and maintaining a stable supply chain ensures we can offer customers the best range of products on the market. We have worked with many of our main suppliers since day one – organisations that have proved they too conform to an ethically and environmentally sustainable ethos.

Customers Our customer base is varied and includes local authorities, social housing providers, housebuilders, main building contractors, developers and building owners, trade buyers and approved retail partners. Whilst their requirements may be very diverse, they all ultimately seek the same thing – superior products, sustainably designed, manufactured and installed to the highest standard.

How we engage with our customers

How we engage with the wider community

Customer service excellence is an ethos which underpins our business – that means exceeding expectations from the initial enquiry right through to installation and aftercare. We are always listening to our customers and actively seeking new ways to enable them to do things better – and we help keep them abreast of the latest solutions through our regular technical training seminars.

We build strong links with schools and colleges to ensure youngsters are aware of the career opportunities available at CMS. For those interested, we also provide work experience placements and Modern Apprenticeships, providing a robust career path. Beyond the educational sector, we support numerous local charities and our local councils in initiatives designed to boost the regional economy.

Employees

Policymakers

We employ more than 245 people across the business, with a wide variety of roles demanding all kinds of technical expertise and experience levels. Our employment strategy is founded on equality, safety, fairness and opportunity – regardless of age, gender, ability and race.

We actively engage with policymakers for two key reasons – to ensure the industry’s views are heard and to educate those responsible for sustainable business and development about new solutions and working practices.

How we engage with our employees

We align our business with leading industry bodies such as Scottish Enterprise, the Chartered Institute of Housing (CIH) and Scottish Federation of Housing Associations (SFHA). We do this by supporting their events and conference and also provide them with free use of the Innovation Hub as a modern venue in which to host events. Politically we believe it is vitally important for government ministers, MSPs, MPs and councillors to see the work we do – that’s we regularly host visits to our sites and in the past this has included visits by the Scottish Energy Minister and the Scottish Minister for Housing and Welfare.

Our goal is to provide the very best place of work where individuals want to stay and develop, with no shortage of opportunities open to those who want to excel. We do this through a comprehensive programme, which starts from day one with the most thorough induction process and continues right through our employees’ careers with annual reviews and the provision of as much training as required.

The wider community including educational organisations

How we engage with policymakers

Our business doesn’t run in isolation from our neighbouring communities, and we have a clear understanding of how important local people and organisations are to our continued success. This applies to the areas in which our factories are located, as well as the sites of our customers throughout the duration of contracts.

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CMS Window Systems

Sustainability Report 2015/2016

We anticipate these measures will help us achieve a 30% increase in turnover. Our sustainable targets: Energy use and waste minimisation

Carbon intelligence

– Save £400,000 by value engineering.

– Produce 2015 carbon report to satisfy ESOS.

– 2% manufacturing wastage.

– Commission another life analysis.

– 5% energy reduction.

– Train all drivers in fuel efficiency.

– Yearly 0.1% recycling increase.

– Have a solar solution by December 2016.

– Yearly introduction of a renewable technology.

Green buildings Sustainable products – Work with suppliers to increase recycled content. – To champion life cycle thinking. – Approach suppliers for CSR deliverables.

Environment champion – Enhance environmental training already covered with every employee during induction. – Have a Government body deliver an energy efficiency seminar in the Innovation Hub, annually. – Actively engage with local schools, colleges and universities, producing a minimum of one case study per year about accomplishments.

– Have one fuel poverty conference, each year in the Innovation Hub. – Offer our Innovation Hub free to organisations championing energy saving and the eradication of fuel poverty. – Pilot project for solar panels.

Our people and global CSR – Minimum 12 staff communications each year. – Create 10 new jobs. – Create 10 new apprenticeships. – Provide 20 work experience placements. – Measure and report charitable contributions.

– Win an award for environmental performance. 12

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CMS Window Systems

Sustainability Report 2015/2016

Our operational focus.

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CMS Window Systems

Sustainability Report 2015/2016

Life cycle of products.

All CMS products are assessed against life cycle analysis (LCA) criteria to ensure our customers gain the maximum service life from products, whilst at the same time seeing the full picture on the long term environmental impact of these products.

Our systems and components are UK-made wherever possible.

We recycle more than 900 extracted window frames every week.

With our comprehensive recycling capabilities, we are in a unique position to ‘close the loop’ and offer assurance that our products live up to their promise. We work closely with BM TRADA in order to provide robust data and technical information to give customers full transparency about the products they are specifying. Our PVCu windows illustrate this perfectly. A replacement window contract starts with the removal of the old windows – these are collected, separated and any PVCu frames are shredded, granulated and micronized. This post-use raw materials go back into the extrusion of new PVCu profile and PVCu reinforcement which is then used in the making of new windows. Once we’ve installed these windows we complete the loop. Scientific analysis demonstrates that our windows can be recycled four times – this gives them a life cycle of 140 years.

Our driver training initiatives have saved more than 17 tonnes of CO2 emissions.

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We have invested £75,000 to be BIM-ready.

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CMS Window Systems

Sustainability Report 2015/2016

We source ethically with environmental sustainability, a prerequisite for our supply chain partners. Evidence of how products and constituent parts are made is scrutinised before any partnerships are made.

Raw materials and supply chain.

PVCu

Glass

Our PVCu systems are UK manufactured by Sheerframe which was the first profile maker to introduce lead free stabilisers across its PVCu extruded product range. This has enabled CMS to offer a ‘lead free, organically stabilised’ window portfolio since its inception and makes PVCu processing safer and recycling easier. This profile system also contains 10% recycled PVCu.

Working with GLASSOLUTIONS Saint-Gobain, we ensure our customers have access to majority UK-manufactured and processed glass which contains up to 35% recycled content. Every stage of their supply chain is analysed against sustainability criteria and, in 2013, the company became the first glass manufacturer to provide life cycle analysis (LCA) data for its core range of products.

Sheerframe profile is manufactured in resource efficient factories in the UK, which minimises transportation and means shorter lead times versus overseas manufactured systems. The reinforcement we use in all our PVCu windows is manufactured by Sheerframe too – Thermlock FP is 100% recycled PVCu which reduces reliance on metal reinforcement.

Timber aluminium composite

Aluminium We work in partnership with three aluminium systems manufacturers – Kawneer, Metal Technology and Senior Architectural Systems. Each has strong sustainability credentials which ensures we can make a positive contribution to projects including those working to the highest BREEAM ratings. The variety of systems we use all contain a high level of recycled content and the manufacturing processes here in the UK are designed to minimise embodied energy.

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Our timber aluminium composite window systems are made in the UK by Senior Hybrid Systems. Like our PVCu systems, this offers the benefit of short lead times and minimal haulage distances. Senior Hybrid Systems is our chosen supplier for this innovative product on the basis that it shares our sustainability ethos. Its aluminium is manufactured from recycled aluminium and the timber used is sourced from sustainable forests in mainland Europe with full PEFC accreditation. Senior Hybrid Systems ensure that, for every tree felled, four are planted to ensure no negative impact on the environment.

External wall insulation Our EWI manufacturer is global insulation leader Rockwool. As with our other key systems, its stone wool products are manufactured in the UK using efficient manufacturing processes. Its corporate social responsibility (CSR) strategy goes back to the 1950s, decades before the phrase was coined, and it has been awarded the ‘Smart Company’ accolade by the Carbon Trust.

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CMS Window Systems

Sustainability Report 2015/2016

Designing efficiency.

As an environmentally aware manufacturer, we take a proactive stance when designing for sustainability. The materials and components we use in the creation of new buildings and in the refurbishment of existing ones are coming under the spotlight more than ever before as we strive towards a highly sustainable society.

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Our commitment to sustainability is further underlined by our collaborative work with our window profile supplier to introduce the UK’s first Zero Carbon fully reinforced (0.8 U value) window.

The battle against climate change is constant, and buildings are a major contributor to CO2 emissions. To ensure our buildings are energy efficient in the long term and created using materials that have not cost the earth to produce, product selection and specification must take into account the whole life cycle and consider post-use disposal. PVCu performs extremely well in terms of sustainability. PVCu is extremely resource-efficient in its manufacture and, in the case of CMS, creates windows that offer excellent thermal performance over a long lifetime. In addition, when PVCu frames need replacing, they can be easily collected and recycled compared with other materials. We use software to design out waste on aluminium projects at their conception. We analyse the waste implications of design decisions from an early stage in the project to increase its overall sustainability credentials.

Our capabilities have shifted expectations and helped to drive up standards across the industry. We have been instrumental in changing the specification for local authority window contract tenders in Scotland by being able to offer recycling of extracted products. We would like to see this as the norm, and are encouraged that our most recent four large window contract tenders have included recycling as a prerequisite. We have also invested up to £75,000 to become one of the first building envelope contractors of our kind to be BIMready. This means we can play a key role in the delivery of buildings using a technology-based process which is more efficient and collaborative. To ensure we can evaluate the efficiencies and benefits of the products we manufacture and install, we have worked with Caledonian University to undertake life cycle analysis. This project has enabled us to measure the environmental impact of our products.

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CMS Window Systems

Sustainability Report 2015/2016

Manufacturing efficiencies.

We operate more than 3,500 sq m of manufacturing floor space and this is equipped with plant and equipment designed for optimum efficiency. Our lean manufacturing model has resulted in a further reduction in the amount of material wasted and the amount of energy used, as well as the manpower required during the manufacturing process.

Transporting our products to customers.

On-site installation For our aluminium projects we are moving towards off-site built where possible, so whole units are delivered to site in as large a size as possible and lifted or craned into position. Sustainability gains relate to product performance, waste reduction and the reduced impact of construction activities on-site such as noise, ground disturbance, and vehicle movements.

Efficiency across the plant We have also worked closely with the Carbon Trust to analyse our premises, procedures, and workforce. We’ve acted on their many recommendations in a bid to reduce energy usage and our carbon footprint – this includes: – Installation of software to power off computers after virus scan has completed.

We continuously review manufacturing processes to identify where we can do things better. Our recent developments include:

Smart PVCu fabrication We have invested in significant improvements to our PVCu fabrication lines which means we can work more efficiently, cutting resource use and increasing capacity. With windows for every project digitally barcoded, our computerised system works intelligently to optimise the sections required for individual windows so as little as possible is wasted from the 6m PVCu extrusions that we work from.

– Installation of timers on factory workstations to automatically power off machines. – Installation of variable drive motors to reduce electrical usage and improve power factor. – Introduction of collaboration software to encourage a less paper centric office.

We have invested in a delivery fleet which includes vehicles with highly fuel efficient engines. All vehicles are tracked using a GPS system that monitors fuel consumption, allowing us to constantly improve the efficiency of our logistics operation. We also look at the driving attributes of our drivers and encourage them to review their driving style to reduce fuel consumption and engine emissions. We encourage staff to optimise the way they drive by giving prizes to the ‘greenest’ drivers.

All this is backed by driver training programmes. So far 22 drivers have been through this training with some positive results: Our 8 occasional drivers:

Annual fuel saving of 23.3% on fuel Fuel cost saving of £2,230 CO2 saving of 9.2 tonnes Our 14 frequent drivers:

Annual fuel saving of 18.6% on fuel Fuel cost saving of £8,886 CO2 saving of 7.9 tonnes

Working towards even greener deliveries As vehicle technology continuously improves, we are always exploring how we can capitalise to make our delivery fleet even more sustainable. Working in conjunction with one of our major customers, we are currently evaluating the potential for electric and hybrid vehicles to replace our diesel engine fleet. As our current vehicles reach the end of their service life, we are committed to renewing with the most sustainable solutions.

– Investment in a barcode tracking system that resulted in a massive reduction in paper used in the manufacturing process. – Introduction of 3 biomass boilers to replace an inherited heavy oil heating system, saving over 230 tonnes of CO2 yearly.

Once sections are cut, these go through our state of the art corner cleaning and welding machinery. This enables eight corners to be welded in one operation, reducing fabrication time and optimising production capacity.

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Sustainability Report 2015/2016

Product use by our customers.

CMS products are designed for a lifespan in-use of up to 35 years. Once installed, they deliver multiple energy saving benefits to a consistently high standard for end-users whose lives are ultimately enhanced – whether as building users or householders. We provide guidance for end-users to operate their windows and doors properly, which includes using ventilation features in order to keep homes and workplaces healthy. Beyond this maintenance is minimal, ensuring the carbon footprint of our installed products does not increase through poor longevity. Once our products reach the end of their service life, we can complete the life cycle by removing and fully recycling old windows and doors. This ensures customers can meet their own sustainability objectives in terms of procurement and recycling.

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CMS Window Systems

Product end of life.

The materials and components we use to create our new buildings and refurbish existing ones are coming under the spotlight more than ever before as we strive towards a highly sustainable society.

Sustainability Report 2015/2016

Unlike other materials used in window frames our PVCu windows are 100% lead, barium and cadmium free and perform extremely well in terms of sustainability.

The battle against climate change is constant and buildings are a major CO2e contributor. To ensure our buildings are energy efficient in the long term, and created using materials that have not cost the earth to produce, product selection and specification must take into account the whole life cycle and consider post-use disposal. PVCu is extremely resource-efficient in its manufacture and, in the case of CMS, creates windows that offer excellent thermal performance over a lifetime of 35 years. In addition, when PVCu windows are eventually replaced, they can be easily collected and 100% recycled. We demonstrate our commitment to ‘closing of the loop’ through our recycling facilities in Cumbernauld and Fife. Both handle the recycling of all extracted timber, PVCu and metal windows and doors from domestic properties and commercial contracts – they have the capacity to process entire window frames at the rate of approximately 900 per week. These strategic sites service installation contracts across the UK. Working in partnership with our supply chain partners we also segregate and recycle all broken / surplus glass, metal, cardboard, paper, polythene, PVCu and timber as a separate added value service.

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Sustainability Report 2015/2016

The Innovation Hub.

CMS Window Systems is proud to have built Scotland’s first commercial innovation centre for energy efficient building design, products and services. The CMS Innovation Hub is a showcase for the latest energy saving products produced by leading construction and supply firms, for use in the building of homes and commercial buildings.

The Innovation Hub is used for regular seminars with internal and external stakeholders covering topics such as fuel poverty, sustainability and recycling. We offer the use of the Innovation Hub facility, free of charge, to organisations wishing to promote or learn about energy efficiency. We organise regular “masterclasses” in the Innovation Hub in conjunction with our supply chain partners, primarily around the theme of tackling fuel poverty. The aim of these seminars is to offer practical steps to our customers for reducing fuel poverty amongst the residents of their housing stock and to reiterate our commitment to sustainability.

The 10,000 sq ft facility situated in the grounds of our Lanarkshire HQ is itself a model of energy efficiency. Until recently it was a disused warehouse with the lowest energy efficiency – G-rating – and facing demolition. After being retrofitted with external “stone wool” insulation blocks, highly thermal efficient windows and an air source heat pump with a VRV Intelligent Heat Recovery System, which extracts latent heat from the outside air and also recovers heat from one area of the building and transfers it to another, it now has an A-rating for energy efficiency. Our Innovation Hub costs only £3.50 per day to run in electricity. We invested £1m in the renovation of this property to create our energy saving centre of excellence, and this was officially opened by Fergus Ewing MSP on Friday 16th May 2014.

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Our environmental focus. We have championed environmental performance since our inception in 2006, and key to this has been our dedication to waste reduction.

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CMS Window Systems

Every year we divert around 95% of waste away from landfill:

Reducing waste across our operations.

2015: 1886 tonnes treated 95.3% diverted from landfill

Waste Hierarchy Model Prevention

Recovery

Preventing and reducing waste generation.

Recover other value from the waste e.g. energy.

Reuse and preparation for reuse

Disposal

Giving products a second life before they become waste.

Dispose of waste e.g. landfill, incineration etc. and other finalist solutions.

Recycle Any recovery operation by which waste materials are reprocessed into products, materials or substances whether for the original use or other purposes.

The processes we adopt are in line with our ISO14001 certification. This applies to every aspect of our operation.

2014: 1620 tonnes treated 96.5% diverted from landfill 2013: 1298 tonnes treated 96.3% diverted from landfill 2012: 1229 tonnes treated 94.6% diverted from landfill 2011: 1201 tonnes treated 96.1% diverted from landfill

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Sustainability Report 2015/2016

Minimising the impact of our manufacturing process.

We are installing windows and doors featuring sealed units which contains up to 35% recycled glass from extracted windows.

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Biomass boilers

Recycling glass

We recently installed a new biomass heating system to heat our factory and office complex, replacing a heavy oil system. This makes a huge reduction in our carbon footprint, with a projected saving of 230,400kg of CO2 every year. Any surplus energy is fed back into the grid which provides us with an income for further re-investment into our sustainability programme. Over 20 years, the financial savings of using biomass versus heavy oil combined with our agreed RHI are expected to generate £1.2 million.

We have pioneered the process of implementing a closed loop for the glass that we use for all our windows and doors. Any clean plate glass extracted from our window replacement projects is collected and fed back to our glass manufacturer, Saint-Gobain Glass. This raw material is used to make new window glass in Saint-Gobain’s state of the art float glass plant in Yorkshire.

Recycling off-cuts Any excess materials from our manufacturing process are collected and sent to the appropriately approved recycler. Excess PVCu manufacturing off-cuts are recycled and turned into Thermlock reinforcement, which is re-introduced into the manufacture of our new PVCu windows. Aluminium offcuts are placed in the appropriate non-ferrous metal skip.

The result is that we are installing windows and doors featuring sealed units which contain up to 35% recycled glass from extracted windows – in the past recycling technology would have limited all recycled glass content to other products like bottles. It’s a practical example of how we can reduce the amount of waste that our manufacturing and supply chain generates – in the first 3 months we have sent 70 tonnes of glass back to create new windows.

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CMS Window Systems

Sustainability Report 2015/2016

Recycling extracted waste into by-products. 414 tonnes of timber recycled from extracted waste in 2015. Recycling capability has set CMS apart from the rest of the building envelope market, with processes established from day one to make sure we minimise the amount of waste going to landfill. To do this we segregate all extracted waste on-site in our recycling facilities into: – PVCu – Timber – Glass – Metal – Packaging – Paper and dry mixed recycling – Cardboard – Cellular foam These products are fed into waste streams to be handled, transported and treated safely and effectively by our approved recyclers.

Through the course of delivering client contracts, we routinely remove windows and doors with frames manufactured from timber, PVCu and metal. These materials are collected and sent back to our recycling plants daily in Castlecary and Fife, along with the glass and any hardware components.

The payback period for carbon on our 0.8 U value window can be as little as 9.4 months.

We are currently collecting and recycling around 150 tonnes per month – and we are the only company of our kind in the UK doing this.

How it figures In 2015, from extracted waste: – 414 tonnes of timber recycled – 456 tonnes of glass recycled – 88 tonnes of metal recycled – 480 tonnes of PVCu recycled – 448 tonnes of mixed waste

Recycled content of our products We work closely with our supply chain to ensure all new windows, doors and curtain walling contains a proportion of recycled content – either from CMS or elsewhere in the market: – Glass: 35% recycled material – PVCu profile: 10% recycled material – Window reinforcement (Thermlock FP): 100% recycled

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456 tonnes of glass recycled from extracted waste in 2015.

88 tonnes of metal recycled from extracted waste in 2015.

480 tonnes of PVCu recycled from extracted waste in 2015.

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CMS Window Systems

Sustainability Report 2015/2016

Our people focus.

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Sustainability Report 2015/2016

The people in our business.

As a company, our mission is to be remembered for quality products and services, but with a huge focus on people development, and especially the development of our young people. Currently, we have 25 young people (16-24) employed, and this brings both fun and challenges! We have over 245 full time employees based between our sites in Castlecary and Fife and our satellite office in Washington, Tyne & Wear, with opportunities for apprenticeships throughout the organisation, including window fabrication, warehousing and installing through to business administration, marketing and HR. Typically, we resource our employees through a variety of providers; North Lanarkshire’s Job Portal, New College Lanarkshire’s Routes to Work, Forward Training, Prince’s Trust and more recently Street League. They start an 8 week work placement, usually in our recycling department, learning to take windows apart. During this time, they also learn about working as part of a team, the importance of courtesy and respect as well as time keeping and attendance. This 8 week period allows us to assess their attitude and capability; it also gives them a chance to see if this is the right kind of working environment for them. Following their placement, they move into the factory where they will quickly start their Modern Apprenticeship. This is integrated into how we work - everyone coming through will do an MA, which we look at as basic ‘on the job’ training.

Health, safety and wellbeing.

– Living Wage employer. – Investors in People Gold. – Investors in Young People. – Lanarkshire Business Awards Excellence in Youth Development 2014. – Lanarkshire Business Awards Best Business (>50) 2015. – Lanarkshire Business Awards Best Green Business 2015. – VIBES Awards 2015 Management SME award winner. – Scotland’s Modern Apprenticeship Awards 2015 SME Employer of the Year runner up.

The health and safety of our employees, subcontractors, clients and the people living in the communities in which we work are paramount to our business. Our clients and staff deserve a safe working environment, and we strive to minimise the risks that they and any of our subcontractors and people living in these communities are exposed to during their working day.

All our employees commit to working in a professional manner at all times, while respecting the needs of individuals located close to and on sites. As reflected in our Health and Safety Policy statement, we believe that our people are our most vital asset. To this end, we want to look after them and develop them into real professionals. Staff engagement is critical in ensuring that our processes and procedures are being implemented at the front line of our business. We therefore encourage all employees to actively get involved in health and safety issues and to do so as part of the team.

Health and safety is at the forefront of how we approach our business, which is demonstrated by our OHSAS 18001 Health & Safety certification and Considerate Constructor accreditation and CHAS. CMS is fully committed to providing a safe and healthy workplace environment for our employees, contractors and visitors alike. Our commitment is underpinned by the rigorous safety initiatives which have been introduced across all aspects of the business.

Earlier this year, we were fortunate to be awarded with not only the Investors in Young People award, but the Investors in People Gold award too. We were only the 7th company in Scotland to get the double award at the time, which is a testament to the dedication and patience of our supervisors and managers. 40

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Ethical conduct and diversity.

We maintain a high ethical standard in all our operations at all times. This means acting with integrity, fairness and transparency and having a zero tolerance policy towards corruption. By setting this in stone, we can manage any legal and ethical conduct risks and protect our reputation. Upholding high ethical standards applies to the way we work with suppliers, clients and our employees.

Our promise to our employees is: – To ensure the fair and consistent treatment of all employees and to maintain a positive working environment with equal opportunity – To encourage good working practices throughout the company – To ensure the Health and Safety of all employees

A diverse workforce is crucial to the long term success of CMS, which is why we have a cast-iron commitment to ensuring our people are here for the positive contribution they make – nothing else. Our policy is to treat all job applicants and employees fairly and equally, regardless of sex, pregnancy, transgender status, sexual orientation, religion or belief, marital status, civil partnership status, age or perceived age, race, colour, nationality, national or ethnic origins or disability. We ensure this achieved by monitoring the composition of the workforce to ensure that this policy is effective. We are acutely aware that some groups are underrepresented in our industry, which is why we are working towards a better balance. This is particularly the case in terms of the gender balance, so we are encouraging more female workers to develop long term careers with CMS. Through our diversity policy and procedures, and the training and development of managers and staff, we do all we can to promote good practice and eliminate discrimination and harassment.

– To comply with current employment legislation

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Investing in our people at all levels.

Sustainability Report 2015/2016

A Living Wage employer.

We have always been pioneers when it comes to providing secure employment which is fairly rewarded. In 2015 we became a Living Wage employer, well ahead of any legislative requirement. As the 150th company in Scotland to be accredited, we were visited by Roseanna Cunningham MSP, Cabinet Secretary for Fair Work, Skills and Training. As a champion for Investors in People and youth development, she described CMS as “a great example of a living wage employer”.

We have continually increased our turnover despite some challenging economic circumstances. We currently employ over 40 people aged between 16 and 24. We have created over 200 jobs since our inception in 2006. 3 out of 4 work placements have moved on to full time employment. We invest in young people because it gives us a competitive advantage. We have lower recruitment costs and young people come to us for work experience with the confidence of knowing that it can lead to a job at the end of it. The financial incentives for doing this mean we have a reduced financial risk. We enjoy the energy, enthusiasm and optimism young people bring to the business and the flexibility they have. We are able to shape and mould a young person into the “CMS way” by involving them in the business from a young age and instilling into them our core values. Having a low turnover of staff and high staff retention rate helps protect our future business.

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Sustainability Report 2015/2016

Employee training and development.

Skills training and competence is a priority to us. Currently, all our manufacturing operatives are trained to SVQ level and site operatives are trained to CSCS Card level. Site supervisors and site managers are trained to SVQ level 3 and level 4 and accredited to SMSTS. Administrative staff are also trained to NVQ, NC, HNC and HND level, whilst Fenestration Surveyors and Installers and are accredited to PAS2030 standards. We engage young people in work experience which leads to full time employment. We provide opportunities to young people who have been rejected by other companies and give them a job in our recycling centre. If, after a period of 12 weeks, they show the desire to settle and further their career with us, we are happy to provide a number of progression opportunities. A possible career journey in CMS is:

Recycling trainee > Apprentice fabricator > Skilled fabricator > Team leader > Supervisor > Manager

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Youth employment.

Since 2011 we have had:

113 work experience positions created

75 100

full time jobs created

apprenticeships undertaken

Our young people are the lifeblood of our organisation. Without them, CMS would not be the success it is today. Our turnover has risen exponentially from £1.4m in its first year of trading (2006) to £27m in 2014. Our target for financial year 2015/16 is £35m. A large percentage of our workforce is under 25, giving the organisation a modern, upbeat and dynamic feel. Age is no barrier to communication between all levels of seniority throughout the company and ideas are actively encouraged from everyone. Over the past two years, we have put over 100 people through a Modern Apprenticeship. We currently have nine people working towards a modern apprenticeship and have others about to start the process. As a business, we benefit from this – lower recruitment costs, retention, commitment, skilled workers for the future – all contributing towards greater business sustainability.

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Sustainability Report 2015/2016

Our community focus. With a sustainable growth strategy, CMS is superbly placed to deliver on its plans for secure employment and to support initiatives that help improve the lives of local people – many of whom will know of someone connected with the company.

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Sustainability Report 2015/2016

Community engagement.

A supportive, positive local community is vital in helping businesses prosper – and when they do, they are in an excellent position to give something back. This is why at CMS we have always reached out to the local communities in which we operate – together we can be powerful in delivering social and economic improvements.

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Promoting employee volunteering on local charitable projects. We believe everyone wins when it comes to volunteering, which is why we encourage our employees to get involved. Employee requests to commit time to volunteering are encouraged and we aim to give everyone the chance should they wish to devote part of their working week to helping others.

Sustainability Report 2015/2016

Committed to supporting local charities.

Being an active member of the local community means doing whatever we can to support good causes. We have an open mind to requests and always give them full consideration. And whilst we are not able to support every cause, we do prioritise initiatives which we believe will deliver benefit to those least able to help themselves. Here are some examples of the causes we support.

Lanarkshire Beatson radiotherapy treatment centre Staff at CMS raised more than £6,500 for the new Lanarkshire Beatson by generously giving up part of their wages every week over one month and donating the total to the Beatson Cancer Charity. The fundraising effort is part of a £500,000 appeal to help fund a wide range of patient and family support services at the new £22 million Lanarkshire Beatson radiotherapy treatment centre at Monklands General Hospital in Airdrie, which opened in November 2015. This will deliver treatments to 1,200 people from across the Lanarkshire region every year, the area in which most CMS employees and their families live.

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The Cottage Family Centre CMS has supported the charity for many years in its work to support families and individuals who are vulnerable to social exclusion as a result of factors such as poverty, unemployment, poor housing, relationship breakdown, drug and alcohol problems and health related issues. Joining volunteers from across Kirkcaldy, including its former MP Gordon Brown, a team from CMS gave up their time in December 2015 to help deliver crates of food, bags of new toys and children’s clothes to more than 500 families in Fife. CMS also provided a generous donation and helped to organise an extensive storage and logistics warehouse which became the hub of the operation.

BBC DIY SOS CMS helped Nick Knowles and the BBC DIY SOS team improve the lives of war veterans and residents in Manchester in their biggest ever challenge. The project was undertaken to help create an improved, more residentfriendly neighbourhood that everyone - veterans and their local community alike - can feel proud to live in. In BBC1’s two-part special, the DIY SOS team transformed 66 houses in Manchester’s New Street and Canada Street and CMS manufactured and installed free of charge all the super energy efficient PVCu windows.