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					     BG Group

     BG Briefing                                                                             July 2003


 Key points
 •   Waste is an unwanted by-product of our activities
 •   BG Group recognises that responsible management of waste is key to protecting human health
     and the environment
 •   Waste represents an environmental burden, financial cost and potential reputation liability
 •   Conversely, waste minimisation provides opportunities to reduce costs and improve efficiencies
 •   To this end, we commit to reducing the volume and hazardous nature of wastes by adopting best
     available techniques, wherever it is practicable to do so
 •   BG strategy builds on existing practice and includes
     o    Minimising waste from the outset of the project
     o    Implementing asset waste management plans and procedures
     o    Maintaining proper waste segregation and storage
     o    Ensuring that waste is transferred to a responsible third party
     o    Taking a proactive approach to ensure that suitable methods of waste treatment and disposal
          are in place.

Introduction                                                Waste management hierarchy
Waste is defined as “any substance or object which          The waste management hierarchy underpins our
the holder discards or intends to discard”. A key           waste management strategy. It highlights that the
problem with waste is that it may be handled                key to minimising waste is (foremost) to reduce
carelessly because it no longer has inherent value          resource use, to seek to use waste as inputs into
to the holder (even though it may be useful to              other processes and to ensure that any unavoidable
others). BG Group’s definition of waste includes all        residue remaining is treated and disposed of
materials stored or taken offsite for disposal or           responsibly.
recycling. Materials range from inert site and
platform wastes, scrap metals, oils, sludge and             Best option
chemicals to excavated material, used fittings and                            Remove         ‘Design out’ waste

general site and office wastes.
                                                                                             Generate less waste by
                                                                              Reduce         more efficient practices
Waste poses an inherent threat to human health
and the environment. For example landfill generates                                          Reuse materials in
both methane emissions and leachates, which have                                             their original form
the potential to contaminate soil and water courses.                                         Reprocess wastes
Waste can also impact on amenity, and represents                              Recycle        into usable materials
wasted consumption of natural resource.
                                                                                             Extract materials
                                                                              Recover        or energy
These pressures are intensifying as demand for
material goods and energy outstrips both                          Least
                                                              preferred                      Responsible treatment
technology available and the earth’s limited capacity                         Residue        and disposal
to ‘absorb’ these wastes.
Remove: avoid waste by eliminating materials use         Waste management strategy
Reduce: generate less waste by inventory control         New developments: minimising waste requires
and management, material substitution and process        focus and commitment from the outset of the
improvements                                             project, where we are most able to eliminate waste
Reuse: materials reusable in their original form         from activity. Decisions must take into account local
become inputs into other processes                       circumstances, e.g. environmental thresholds,
                                                         waste disposal routes available and transportation
Recycle: by reprocessing materials back into similar
products or into secondary raw materials for the
production of new products                               Waste risks associated with new projects are
                                                         identified as part of the environmental impact
Recover: Extract usable materials or energy from
                                                         assessment process. These are addressed in the
waste (e.g. by incineration with energy recovery)
                                                         HSSE Management Plan, which must highlight any
Residue: if no other options are available, ensure       critical waste items (to be addressed in concept
the safe treatment and disposal of remaining waste       selection) and key waste issues (to be managed by
residues.                                                detailed design).
                                                         Operations: every asset, department and individual
BG Group Business Response                               has the ability to reduce waste. Waste will be
Waste is an important and visible indicator of how       managed within the local environmental
we manage our business. There are clear benefits         management system (certified to ISO14001
of managing waste effectively. These include:            standards or registered to EMAS). Key wastes will
•    More efficient use of resources / resource          be identified within the risk identification process,
     conservation                                        taking into account local legislative requirements
                                                         alongside BG policy. Every asset will have a
•    Lower costs associated with treatment and
                                                         comprehensive waste management plan and
                                                         procedures in place. These will be reviewed when
•    Reduction of environmental impacts
                                                         any major changes in process or activity occur.
•    Decreased environmental and financial liabilities
                                                         BG will prevent the escape of waste by ensuring
We commit to reducing the volume and hazardous           that all hazardous and non-hazardous wastes are
nature of wastes wherever it is practicable to do so.    segregated appropriately and stored securely on
Waste issues and the appropriate treatment of
waste may dependent on local conditions. We will         Reporting: we will continue to report total waste
deal with waste issues on a case-by-case basis           data externally to meet the expectations of
within the overall philosophy of using best available    benchmarking organisations and the socially
techniques that minimise the overall impact on the       responsible investment (SRI) community. The total
environment, and of engaging with stakeholders to        quantity of waste produced is dependent on the type
ensure that local concerns are addressed.                and scale of activity and it is likely to fluctuate in
                                                         relation to portfolio changes. This highlights why
We recognise that we may operate in areas with
                                                         ‘total waste’ is not a good indicator of performance.
inadequate disposal facilities. In these situations,
                                                         We are currently working to develop more
the Group will take a proactive approach to
                                                         appropriate indicators for internal and external use.
stimulate development of methods of waste
treatment and disposal. However, there is a
presumption against treating and disposing of third
party waste in BG-operated facilities.
We will take all actions that are reasonably
practicable to ensure that waste is transferred to a
third party who will reuse, recycle or dispose of the
waste in a responsible manner.

                                                          Other information available

    Published by BG Group                                      Martha Rowley, Environmental Advisor, BG Group

    Last revised: April 2004
                                                          Tel: +44 118 929 3012