Statement of Environmental Policy

Leyland Trucks has had an environmental policy statement since 1995. This policy has led to the company recognising the actual and potential environmental impacts of its operations, and has helped the company to positively reduce these impacts.

Principles of Leyland Trucks Environmental Policy (The 3 C’s)
1. Leyland Trucks will control its activities in such a way that environmental impacts are appropriately managed and reduced to a practical minimum.
2. Leyland Trucks is committed to continual improvement of its environmental performance and intends to achieve this by improvements resulting from its continuous improvement programmes, in particular through the achievements of six-sigma projects and by setting and achieving annual environmental objectives and targets.
3. Leyland Trucks will comply with the law.
In order to achieve these aims, Leyland Trucks will maintain an environmental management system which meets the requirements of ISO 14001:2004.

Leyland Trucks Environmental Policy

• Ensure that this policy is understood and implemented at all levels in the Company by providing briefing and training as necessary;
• Comply, in relation to processes and products, with applicable legal requirements and any other requirements to which the Company subscribes which relate to our environmental aspects.
• Maintain close liaison with regulatory authorities and environmental organisations in order to seek their views and advice on activities affecting the environment;
• Manage its activities, so that any identified significant impacts that do not have adequate operational control, where possible, are reduced through the setting and monitoring of objectives and targets by the Senior Management Team.
• Promote energy and water conservation measures and the reduction of pollution.
• Minimise and recycle waste and, where this is not possible, ensure its proper management and disposal.
• Communicate this policy to all persons working for or on behalf of the Company.
• On request provide public access to this environmental policy and respond to communications from interested parties on environmental matters.
• Propagate the environmental policy and the environmental activities of the company in order to support other PACCAR group companies’ brand images and their products and services.
• Review this environmental policy annually.

Waste and Recycling Policy

Leyland Trucks has been actively involved in recycling and reuse since 1996 and are constantly identifying and implementing improved techniques with the aim of reducing our impact on the environment.

The ‘three R’s’
In line with Leyland Trucks’ desire for continuous improvement, the three R’s methodology is a key tool for identifying and reducing our waste.
Reduce: identify and eliminate waste at the earliest point possible in the product development and realisation processes.
Reuse: identifying waste which can be reused for a similar or new purpose.
Recycle: ensuring all recyclable waste materials are recycled.
By adhering to these core principles, Leyland Trucks has been able to increase the recycling of its waste year upon year. Some key successes already achieved include;

• The installation of a robotic paint plant in 2005 has significantly reduced the amount of paint per vehicle.
• The utilisation of a returnable pallet system with many of our suppliers has reduced the amount of waste wood.
• Waste segregation through the use of various waste streams has led to increased recycling of plastic and cardboard packaging, with further projects aimed at eliminating this packaging completely.
• Minimising on-site chemical storage in view of both safety and soil protection concerns.
• Use of office waste segregation techniques which allow the separate recycling of paper, cardboard, cans, bottles and plastics.

Zero Waste to Landfill
Year over year Leyland Trucks has managed to increase the percentage of total waste recycled and as a result has been able to decrease the levels of waste disposed of in landfill sites. This initiative has been so successful that Leyland Trucks will become a zero waste to landfill operation during 2007.

Energy Conservation

In order to ensure continued energy conservation at Leyland Trucks an Energy Management Team was set up in 1994. The main objectives of this team are to ensure energy is used efficiently, energy waste is minimised and that the best energy conservation practices are used. These objectives have the ultimate aim of protecting the environment by ensuring the minimum amount of energy is supplied to the site.
Through detailed measurement of each utility (electricity, gas, compressed air and water) on a weekly basis, the Energy Management Team gains a detailed picture of Leyland Trucks’ energy needs. From this, the team is able to identify a plan of technical improvements that can then be applied to reduce the site’s energy usage. Specific examples of energy saving measures already implemented by the team include:

• Energy saving light bulbs used throughout the plant.
• Intelligent lighting used in the production facilities that control the amount of lighting needed at different times of the working day and ensuring lighting is not left on at inappropriate times.
• All washroom facilities on site use automatic taps and reduced flush toilets to control the amount of water used by these processes.
• All loading bay doors are fully automated to reduce heat loss from the plant.
• Energy efficiency is an important factor in the selection of new equipment for use within the company.
• HVAC control system upgraded to operate systems and control zones only when needed.

Leyland Trucks is also actively investigating the opportunities for sourcing alternative energies such as wind and solar power, biomass and energy from waste.

Water Quality

Leyland Trucks has systems in place to reduce the amount of water used in its production processes and also to carefully control the quality of its wastewater discharge.

Rain water drains and foul sewer drains are separate and are meticulously monitored and controlled to ensure that no harmful substances are incorrectly released.

All washroom facilities on site use automatic taps and reduced flush toilets to control the amount of water used by these processes.

The robotic chassis spray facility installed in 2005 uses a water based abatement system to collect the paint overspray which is then removed and treated before the water is reused; this process allows the water to be used several times before it is treated a final time and then discharged into the foul sewer system. A similar process is used at the vehicle run up and testing rigs where the cooling water is reused several times over before it is cleaned and safely discharged in compliance with the appropriate legislation.

Air Quality
Factory Emissions
Leyland Trucks has implemented various measures in its state of the art production facilities to reduce its emission levels. These include:

• Eliminating toxic chemicals from our production processes wherever possible such as in the chassis painting process.
• The introduction of a robotic chassis paint plant in 2005, which has dramatically reduced the amount of paint overspray and emissions from this process.
• Using exhaust filter boxes on all vehicles when being moved about within the assembly plant.
• Promoting car sharing initiatives and providing showers and bike storage facilities to reduce traffic emissions from employees commuting to and from work.
• The use of external consultants to help us identify further areas for improvement.

Product Development

Obviously one of the greatest impacts Leyland Trucks can have on improving our environment is in the development of our products to reduce their emissions. Since the introduction of the stringent Euro 1 emissions regulations in 1993, and up to the introduction of Euro 4 vehicles in 2006, NOx pollutant emission levels have been reduced by over 50%.  Introduction of Euro 5 compliant vehicles, which we will achieve well in advance of the planned legislation, to allow our customers to take advantage of even greener vehicles, will bring a further 20% reduction.  Over the same time period particulate emission levels have been reduced by a staggering 97%.

We also use lighter materials wherever possible to reduce the weight of our products to further improve the fuel consumption of our vehicles.

We have also developed a hybrid LF vehicle that utilises both diesel and electric power.  This vehicle generates electrical energy under deceleration, storing this energy in batteries on the vehicle and then using this electric power to assist the vehicle under acceleration.  This technology will offer the operator up to a 20% reduction in fuel consumption with a corresponding reduction in CO2 emissions.