Hill & Smith PLC - Our Approach

Our Approach to Sustainability

Following our purpose of creating sustainable infrastructure and safe transport through innovation, we are committed to ensuring that our Environment Social & Governance (‛ESG’) strategy provides the foundation for the successful delivery of our Group strategy and business model.

DETERMINING our Approach

Our sustainability priorities were identified following a comprehensive materiality assessment carried out in 2021, which also included comparing the results to the relevant Sustainability Accounting Standards Board (‛SASB’) materiality maps, see page 33 for more details. We have maintained the same sustainability priorities for 2022, however we will continue to review and adapt as our sustainability strategy evolves.

Our Executive Chair, Alan Giddins, has Board responsibility for ESG and is also a member of the ESG Committee. The ESG Committee works with our operating companies to create common sense, actionable plans with measurable near and medium term targets. We were delighted that Lucinda Farrington Parker joined as Group Head of Sustainability in February 2022. Lucinda is a key member of the ESG Committee and is leading on the Group’s carbon reduction plans including establishing a baseline for the Group’s Scope 3 emissions. The ESG Committee also includes the Group CFO and the Group Company Secretary, alongside a number of other Group employees who are passionate about our ESG focus areas. The Committee reports directly to the Board on a six-monthly basis, providing updates on progress made against targets.

Dimension	Category	SASB matrix		H&S materiality study	ESG Focus
		Engineering & Construction	Road Transport
Environment	Ecological Impacts	.
	Waste and hazardous materials management
	Waste and wastewater management
	Air quality			.
	Energy Management		.		.
	GHG Emissions		.	.	.
Social Capital	Selling practices and product labelling
	Customer welfare
	Product quality and safety	.
	Access and affordability
	Data security
	Customer privacy
	Human rights and community relations
Human Capital	Employee engagement, diversity and inclusion			.	.
	Talent development/employment practices			.	.
	Employee health and safety	.	.	.	.
	Labour practices
Business model and innovation	Physical impacts on climate change				.
	Sustainable products				.
	Materials sourcing and efficiency
	Supply chain management
	Business model resilience
	Product design and lifecycle management	.
Leadership and governance	Systemic risk management
	Critical incident risk management		.
	Management of the legal and regulatory environment
	Competitive behaviour
	Business ethics	.		.	.