Protecting the environment is an important part of our normal business activities. During the past year, Rinker adopted a Safety, Health and Environment (SHE) policy, guiding principles and management directives that became effective, globally, across the entire group. We also implemented a formal SHE Management System incorporating processes to identify and correct the root causes of environmental incidents, and to establish defined performance standards – all within a framework of continuous measurement and improvement. The environment component of the SHE Management System emphasises accountability with respect to licence compliance and due diligence activities. It also emphasises future stewardship. Our goal is ‘zero’ environment incidents. A major aspect of the environmental management system is the systematic auditing of operating sites for compliance with governmental requirements and Rinker standards. Environment audits were carried out last year on more than 40 sites by external experts; hundreds more were performed internally. No environmental issues were identified that would materially affect Rinker. ENVIRONMENTAL AWARDS Rinker received a number of awards for its proactive environmental efforts. In the US, Rinker Materials received the prestigious Environmental Eagle Awards for its 474 sand mine and Krome quarry in Florida. In Australia, Readymix received industry environmental awards at its Lidcombe, Brookvale and Gloucester concrete plants. ENVIRONMENTAL PERFORMANCE TARGETS In Australia, Readymix measures key environmental performance indicators with the aim of progressively reducing waste generation, water and energy consumption and carbon dioxide emissions. A similar program is underway in the US. GREENHOUSE GASES As a responsible corporate citizen, we understand the growing interest in controlling and reducing greenhouse gas emissions. We are actively working with the Portland Cement Association to voluntarily reduce CO2 emission intensity within the cement-manufacturing sector. We have enrolled our two US cement mills in this effort as well as recently modernising our Miami cement facility to a state-of-the-art fuel-efficient operation – similar in nature to our facility in Brooksville, Florida. We are an industry leader in the use of substitute fuels at both cement facilities and the use of substitute cementitious products in our cement, concrete and pipe manufacturing facilities throughout the Unites States, further reducing the generation of CO2 per unit of production. We are committed to continuously improving on these achievements. ENVIRONMENTAL INCIDENTS Rinker reports environmental incidents based on five levels of severity: (1) minor, (2) significant, (3) serious, (4) severe and (5) extreme. There were 131 incidents last year, 51 more than the prior year. The increased incidents were all Level 1 and 2 and were due, in large part, to an increased focus on accurate reporting which is a trend expected to continue throughout the next year. There were three Level 3 incidents, down from four in the prior year. None of the Level 3 incidents resulted in significant harm to offsite environments; all were self-reported and no penalties were assessed. SUPPORTING OUR COMMUNITIES Cement EBITDA was US$117 million, up 9%. Volume was up 16% on strong demand. Prices were flat during the year due to new capacity in Florida. Freight and energy costs have been rising. Rinker is committed to acting responsibly and to ensuring that our people deal effectively and appropriately with the communities in which we operate. The Rinker group donated almost A$800,000 (US$552,000) to community projects, educational activities and charitable institutions last year. In addition, Rinker group businesses made contributions to local communities and charitable organisations by supplying heavy building materials, and our people contributed their time and labour. In the US, the Rinker Foundation contributed an additional US$470,000 (A$680,000) to universities and community groups. In Australia, Readymix continues to support the Beacon Foundation, which develops innovative approaches to resolve the problem of youth unemployment, and to Technical Aid to the Disabled (TAD), which aims to improve the quality of life of people with disabilities. In Washington state in the US, Rinker Materials people worked with fishery consultants and wetland ecology experts to restore the Little Bear Creek for salmon habitat. At the Gator and the Lake Wales sand mines in Florida, USA, Rinker Materials designated over 120 acres (49 hectares) to be enhanced for wildlife habitat, and is working with local organisations to create around three miles (five kilometres) of public nature trails within these preserved areas. At the 474 sand mine we operate an outdoor environmental classroom where we partner with a number of schools to foster environmental education activities, for children of all grade levels. In Australia, the Readymix Sunshine Coast quarries in Queensland formed an alliance with the Mooloolah Riverwatch and the Land Care, Inc. groups to provide land and nursery facilities for these organisations, to propagate seedlings for the future re-vegetation of the Mooloolah River watershed. Rinker made donations to Australian political parties totalling A$90,000 (US$62,000).