Corporate Social Responsibility
Spectris is committed to creating business growth through adding value for its customers whilst ensuring that its impact on the environment is minimised.

Spectris operates from 160 offices in 29 countries around the world. The company's products are used to monitor and control processes for enhancing productivity for customers in a wide range of industries.

Spectris continues to meet the criteria for membership of the FTSE4Good UK index, which measures and benchmarks the performance of companies that meet globally recognised corporate responsibility standards. The criteria are assessed on a regular basis by the independent research organisation EIRIS, with increasing emphasis on ethics and human rights.

The policies and information described below apply to all Spectris operations.

Policy setting and monitoring

Overall responsibility for developing corporate policies on environmental, social, ethical, and health and safety matters, and for reviewing their effectiveness, lies with the Spectris Board. The policies are communicated to all business units via the Spectris Group Manual. The individual operating companies are then responsible for ensuring that these policies are communicated and applied within their particular business, taking account of local legislation and regulation. All policies and procedures are reviewed periodically and any updates are communicated to the operating companies.

Reporting and compliance

Conformity with these policies is monitored by self-certification, on an annual basis, by the Managing Director and Finance Director of each operating company that their business has complied in full. Any instances of non-compliance must be reported.

Such certification forms an integral part of the company's risk management and corporate governance processes, and is regularly reviewed by the group's internal audit function and the company's external auditors. Compliance testing is a formal part of internal audit reviews. Through a structured review process, the internal audit function undertakes visits to group locations on a rotational basis. These visits involve an assessment of the business' key internal controls as well as compliance with the group's policies and procedures. The results of internal audits and any non-compliance events are reported to the Audit Committee.

Risk assessment

The key potential risks and uncertainties which could have a material impact on the group's long-term performance are described elsewhere in this Business Review. Potential social and environmental risks to the business may arise within product manufacture or operation of a product at the customer's site. Where a significant risk is identified, procedures for storage, normal operating conditions and emergency situations are documented and regularly monitored for compliance with the relevant regulations. A nominated individual is responsible for safety compliance and all employees are informed and trained in safety procedures, depending upon the extent of their involvement with the product presenting the risk. Documented processes are in place to reduce the likelihood of an occurrence. Material risk processes and procedures are regularly reviewed by the group internal audit function.

Potential social and environmental risk in Spectris' operations is limited. However, the PANalytical business, which supplies instrumentation for X-ray analysis, makes limited use of beryllium in detector windows and X-ray tubes, whilst certain NDC Infrared Engineering products utilise low-level sealed radioactive sources. In all cases, the legal requirements for the correct handling and labelling of such products are documented and regularly audited for compliance. Procedures also exist for the disposal of contaminated waste and for recovering used products from customers and disposing of them safely. The Servomex gas analysis business includes the storage of flammable and toxic gases at its testing facility. Operating procedures for the movement and use of cylinders containing such gases are in accordance with the appropriate legal requirements and are inspected annually by an independent authority. Chemical and hazardous waste is disposed of in accordance with written procedures.