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In our Environmental Report published in
March 2002 we set a series of objectives for
the next phase of our environmental strategy.
During this year we have made good progress
against these objectives.

We set out to:

Measure performance – Across the Group we have
implemented a standardised procedure for collecting
UK environmental data. As a consequence, all depots
and large stations in the UK now collect and report
data which will be used to benchmark as we seek to
set quantified reduction targets. Environmental data
collected includes:
● greenhouse gas emissions – use of fuel and

   energy by our fleet and sites together with
   refrigerant usage;
● water consumption;

● waste generation and disposal;

● incidents and prosecutions; and

● complaints.

Review the benefits of adopting a formalised
environmental management system – During the
year we successfully achieved certification to ISO
14001 at two Maintrain depots: Neville Hill in
Leeds and Soho in Birmingham. We are continuing
to evaluate the benefits of adopting an established
environmental management system as we do not
consider existing frameworks are suitable for all
our businesses.

Assess and provide the necessary training to
facilitate, encourage and empower managers
to implement the strategy – A series of training
courses were undertaken for staff responsible
for environmental matters at all levels in the
organisation. These included briefings to senior
managers in subsidiary companies and two-day
“train the trainer” courses on environmental
management for site managers.

Review objectives and targets for improvements in
our environmental performance – An Environmental
Steering Committee was formed during the
year. This committee has reviewed our Group
environmental policy and approved the objectives
and targets for 2003.

                               National Express Group PLC 15
Statistics from the Department for Transport (2001) reveal that people with     We already run a number of LPG buses and CNG buses. Currently we believe
company cars, and free fuel, travel 6,000 miles more a year than private        that Euro III engines fitted with CRTs are the most environmentally friendly
motorists who own their own cars and pay for their fuel. The average business   engines for buses and coaches. We will continue to keep track of technological
miles for someone with a company car are 10,600 a year. To demonstrate the      developments, especially fuel cells. Working alongside vehicle engine
benefits of public transport we have made the following calculations.           manufacturers, we will monitor the development of biofuels and other fuel

If 850,000 company car drivers did not receive free fuel
and therefore did not travel 6,000 miles a year then CO2
comparable to the total emissions of the city of Newcastle
would be saved each year.

If one million company car drivers used the train for 50% of
their business mileage instead of a single occupancy car
then CO2 comparable to half the annual total from a power
station would be saved.

                                                                                Alternative fuels

Set up internal communications process for the                                  Nuisance – Covering noise, vibration and light
transfer of best practice – A forum and channels                                arising from the running of our vehicles and the
for communication with environmental managers                                   operation of our sites.
has been established.
                                                                                Storage and handling of fuel and chemicals – Failure
Communicate on these matters to key stakeholders                                to store and handle fuel and chemicals properly
We have engaged with a number of key stakeholders                               can result in contamination of land, groundwater,
during the year and feedback has been drawn upon                                controlled water and the sewage system.
in producing this report.
                                                                                Greenhouse gas emissions
Environmental considerations                                                    Overall, there is a proven net benefit in using public
The main environmental issues that arise from                                   transport when compared with the emissions that
our operations are:                                                             would be generated if a passenger had opted to use
                                                                                a car or plane for the same journey.
Atmospheric emissions of carbon dioxide and
pollutants (eg carbon monoxide, hydrocarbons,                                   Carbon dioxide (CO2) is the main greenhouse gas
nitrogen oxides and particulates) – Sources from                                responsible for climate change. The transport sector
which these emissions are generated include                                     accounts for approximately 25% of UK emissions of
exhaust emissions from vehicles, refrigerant loss                               CO2 and it is predicted that transport emissions are
from air-conditioning units and consumption of                                  set to increase by more than 25% between 2000
electric power by sites and some trains.                                        and 2020. Other pollutants emitted by the transport
                                                                                sector, such as hydrofluorocarbons and nitrous
Aqueous discharges – These include trade effluent                               oxide, are also powerful greenhouse gas emissions.
discharges from our depots to sewer and controlled                              These are predicted to increase.
                                                                                We have undertaken an assessment of the greenhouse
Resource consumption – This includes the use                                    gas emissions within our UK operations. We have
of energy, water, fuel and chemicals to run and                                 data for two years relating to the operation of all our
maintain our fleet of vehicles.                                                 vehicles. We have also collected 2002 information on
                                                                                the greenhouse gas emissions relating to all our site
Waste generation – The disposal of waste arising                                operations (including tenants on stations), refrigerant
from both our maintenance operations and that of                                loss and waste disposal. The assessment was
our passengers. This includes the discharge of toilet                           undertaken by the Edinburgh Centre for Carbon
waste from old trains onto the track.                                           Management by using principles and guidelines
                                                                                developed by the World Business Council for
                                                                                Sustainable Development Greenhouse Gas Protocol.

16 National Express Group PLC
Environmental issues are very important for some our customers. Future Forests       Environment
have given our customers booking tickets through the Group’s on-line booking
services, www.nationalexpress.com and Qjump.co.uk, the opportunity to offset
the greenhouse gas emissions that arise from their journeys on public transport
by purchasing a tree for planting which reabsorbs carbon dioxide.

                                                                                     Greenhouse gas emissions from
                                                                                     all activities for 2002 (%)
                                                                                                                            Operating buses
                                                                                                                            Operating coaches
                                                                                                                            Operating trains
                                                                                                            16%             Site energy



                                                                                      Note: Emissions from waste disposal and
                                                                                      refrigeration loss account for less then 1%
                                                                                      of the total.

The greenhouse gas emissions produced from the
activities of our operations in 2002 are equivalent
to 933,366 tonnes of CO2. This represents 0.14%
of the latest reported total UK greenhouse gas
emissions for all sources.
                                                                                      Greenhouse gas emissions –
The emissions from the operation of our fleet was                                     transport emissions only (CO2 tonnes/year)
846,946 tonnes of CO2e, which represents 0.67% of                                                                           Coach
UK transport emissions. This shows an underlying                                                                            Train

decrease in emissions of 2% from 2001.                                            152,735              153,390

                                                                                  106,724              110,069

Just over 90% of our greenhouse gas emissions
arise from the fuel we use to power our fleet. We                                 606,120
regularly review fuel efficiency in all our operations.
It is difficult to set absolute targets for reducing
the emissions of greenhouse gases from our diesel


fleet for a range of reasons:
● Modern vehicles meet the latest standards and

    produce collectively lower emissions (of carbon
    monoxide, hydrocarbons, nitrogen oxides and
    particulates) but often at the expense of fuel
● Retro-fitting pollution abatement technology to

    older vehicles reduces the emission of pollutants
    but increases the consumption of fuel.
● The use of low-sulphur fuels improves the quality

    of exhaust emissions directly and also enables
    pollution-abatement technologies to operate
    effectively. Low-sulphur fuels are less efficient.
● New low-floor buses and coaches increase

    accessibility but are heavier than older vehicles,
    which again impacts on fuel efficiency.
● Modern climate control (better heating and

    air conditioning) also decrease fuel efficiency of
    our fleet.

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Fleet profile by engine type

Buses (%)
                                           Pre Directive
                                           Euro I
                                           Euro II
      15.0                                 Euro III

  47.6                      1.0
                                       Total: 1,850 vehicles

                                                               Air emissions
                                                               A range of pollutants including carbon monoxide,
                                                               hydrocarbons, nitrogen oxides and particulates are
                                                               emitted from vehicle exhausts.
Owned coach fleet (%)
                                           Pre Directive
                                           Euro I
                                                               The emissions arising from vehicle exhausts are
                  5     3
                                           Euro II             dependent on a number of factors; such as:
                                                               – type and age of the engine;
                                                               – type of fuel used;
                                                               – quality of maintenance on the vehicle;
                                                               – size and weight of the vehicle;
 56                                                            – degree of climate control available on board;
                                       Total: 324 vehicles     – passenger loading;
                                                               – type of journey; and
                                                               – local traffic conditions.

                                                               There is currently no industry-wide methodology for
                                                               determining or benchmarking energy efficiency and
                                                               the exhaust emissions from the public transport
Franchise coach fleet (%)                                      sector. However, we have become involved in the
                                           Pre Directive       European Commission funded project, the European
                                           Euro I
                                           Euro II
                                                               Commission project for Benchmarking of Energy
             11                            Euro III            and Emissions Performance in Urban Public
                             29                                Transport Operations (BESTRANS), which has been
                                                               set up to address this issue.

                                                               Buses and coaches
      59                               Total: 448 vehicles     A series of European Union directives have set
                                                               emission limit values for new heavy-duty diesel
                                                               engines. These directives, which apply only to
                                                               new vehicles, are commonly referred to as Euro I
                                                               to Euro V standards. The most recent standard,
                                                               Euro III, came into effect in 2000. The next Euro
                                                               standards, Euro IV and V, will apply in 2005/2008
                                                               respectively. Charts on page 18 illustrate the
                                                               representation of these requirements across our fleet.

18 National Express Group PLC
All our diesel bus and coaches now use ultra low-        Waste
sulphur diesel fuel. We also operate a large fleet       We commissioned an external consultancy, First
of liquified petroleum gas (LPG) buses and               Procurement, to undertake a comprehensive review
compressed natural gas (CNG) buses. Key facts on         of the waste generated across our UK operations.
our fleet include:                                       The baseline data looked at the type and quantity
● The average age of our owned fleet of vehicles         of waste being generated. This information was
   is 8.0 years. There is a government and industry      then used to start a tendering exercise for regional
   target to achieve an average age of 8 years or less   contracts for waste management. Due to the large
   by 2010.                                              number of incumbent waste contractors, the data
● 70% of the approved coaches in our franchise           presented here relates only to the quantity of
   coaching operation are Euro II or Euro III.           waste generated.
● 61% of our owned coach fleet is Euro II, Euro

   III or LPG.                                           Controlled waste – This includes waste paper,
● 63% of our bus fleet is Euro II, Euro III or CNG.      cardboard, plastic, wood, scrap metal and food
● In addition, we have 134 Euro III buses that           waste. We produce over 6.1 million kgs of controlled
   have been fitted with continuous regenerating         waste as illustrated in the graph on page 21.
   traps (CRTs) to reduce exhaust emissions further.
                                                         Special waste – This includes waste oil, waste
Trains                                                   chemicals, batteries, oil filters, interceptor sludge
64% of our fleet is electric with the remainder diesel   and oily rags. We estimate we produced 449,815
powered. At present there are no regulatory emission     litres of waste oil in the last year. Most of our special
standards covering trains. The average age of our        wastes are either recycled or reused as a fuel source.
rolling stock is 14.1 years compared to the industry
average of 20 years (Department for Transport).          Track waste – Waste from toilet facilities of trains
                                                         continues to be an industry issue. This can create
Water                                                    an unpleasant environment for customers and
Total water consumption of our UK operations             employees, particularly track-side workers. All new
during the year was estimated at 1,380,000 litres.       trains, which account for 41% of the fleet, are fitted
Large quantities of water are used for cleaning our      with controlled emissions toilets (CETs). Retro-
fleets and the quantity of water consumed during         fitting CETs to older vehicles is not always practical
vehicle washing depends on whether or not the            as there is insufficient room to fit suitably sized tanks.
wash is fully recycling, partially recycling or does     Moving forward, we will explore options available
not recycle any water. The responsibility for the        for managing this issue. When bidding for new
infrastructure at rail depots belongs to Network         franchises, we will provide options for the retro-
Rail. The majority of our bus and coach sites have       fitting of CETs to old vehicles where appropriate.
recycling wash facilities.

                                                                                           National Express Group PLC 19
Depot infrastructure                                     An appeal has been lodged and an outcome is
Fuel and chemical storage – All fuel stores in           expected in the first half of this year.
our bus and coach division are above ground with
the exception of Coventry bus depot. All stores          The future
comply with the Control of Pollution (Oil Storage)       There are a number of environmental challenges
(England) Regulations 2001. At railway depots,           facing the public transport sector. Many of these
the responsibility for upgrading facilities to ensure    challenges will require our industry partners to
that they meet the requirements of environmental         work closely with us. Some of the future issues that
legislation, including the Oil Storage Regulations,      may have an impact on our business include:
is that of Network Rail, who are currently               ● decreasing fuel efficiency as buses, coaches

developing a comprehensive pollution prevention             and trains use cleaner fuels and fit pollution
programme to address this.                                  abatement technology;
                                                         ● implications of the new EU directive on

Drainage plans – In 2002 updated drainage plans             environmental noise;
were obtained for all the bus depots, with the           ● availability of new technologies such as fuel cells;

exception of West Bromwich bus depot which is            ● new legislation covering the emissions from

currently undergoing major refurbishment.                   diesel trains;
Drainage plans are available at all our owned coach      ● ensuring that there are incentives for energy

depots. At our rail depots, Network Rail is                 efficiency on electric trains and exploring the
undertaking detailed drainage plans as part of its          possibility of sourcing electricity for electric
pollution prevention programme.                             trains from renewable sources; and
                                                         ● track waste from trains at stations and on train

Contaminated land – None of our owned sites in              lines.
the bus and coach division have been classified as
contaminated under Part IIA of the Environmental         We are committed to working with other stake-
Protection Act 1990 and so no remediation notices        holders in the industry, including the Railway
have been served.                                        Forum, on its sustainable development strategy,
                                                         to address these and other issues.
Incidents and prosecutions
In 2002 Maintrain’s Neville Hill Depot received          Objectives and targets for 2003
a summons from Yorkshire Water for a breach of           During the year the Environmental Steering
the consent to discharge to sewer. The summons           Committee set a number of key environmental objects
referred to two incidents. The first, in December        and targets for 2003. These include:
2001, arose when a waste oil tank overflowed into
a bund, a container to capture escaping oil. The         Raising awareness of environmental management
discharge pipe leading from the bund had a defective     ● an environmental prize is to be awarded to staff
seal. The second, in May 2002, arose when the              with the best environmental initiatives; and
treatment plant was not operating optimally              ● an environmental section in the Company

resulting in poor separation of oil from the effluent      magazine express which is issued to all employees.
which caused a breach of the consent conditions.
                                                         Corporate environmental assurance programme
After the first incident, Maintrain set out to improve   ● develop a procedure and schedule of audits;

environmental management at the old site. The site       ● undertake audits in line with schedule; and

developed an environmental management system             ● deliver training on environmental auditing

that has successfully achieved certification               to environmental representatives.
to ISO 14001.
                                                         Support initiatives to monitor and report on
In June, Central Trains was served with an               emissions from public transport
Enforcement Notice by Dudley Metropolitan                ● participate in the BESTRANS project; and

Borough Council for alleged noise nuisance from          ● work with ATOC and the Railway Forum to

station public address at Stourbridge Junction.            address emission levels arising from trains.

20 National Express Group PLC

Develop an environmental programme for the                  Based on data collected last year from our
supply chain                                                operations, we have calculated the net CO2
● include environmental considerations in terms
                                                            savings which arise from the use of our
                                                            services instead of a car.
  and conditions; and
● undertake audits with suppliers of
                                                            By using our bus services 63,000 tonnes of
  environmentally critical goods and services;              CO2 was prevented from being emitted into the
Improve waste management
● establish regional contracts for management               By using our coach services 302,000 tonnes of
                                                            CO2 was prevented from being emitted into the
  of controlled waste in the Midlands, Wales and
  Wessex and the South East;
● improve quality of data on quantities of waste
                                                            By using our train services 1,600,000 tonnes of
  produced and the disposal route;                          CO2 was prevented from being emitted into the
● once a good baseline is in place, set quantified          atmosphere.
  targets to reduce the cost of waste and the
  quantity sent to landfill; and                            We have had to assume the average distance
                                                            travelled by a passenger. In addition we have
● investigate and trial options for dealing with
                                                            also used DfT figures for the CO2 emissions
  track waste.                                              arising from a medium-sized petrol car, the
                                                            average loading factor of a car and our own
Improve energy and water efficiency at depots               figures for the CO2 emissions arising from our
and stations                                                bus, coach and train operations.
● deliver specialist training courses to

  environmental representatives; and
● improve data collection and benchmarking

  so that sites can set quantified reduction targets.

Develop a corporate biodiversity strategy                   Controlled waste (kg)
● support a conservation project;                                                               Bus
● develop a corporate guidance document for                                                     Train
  developing a biodiversity management plan                                     1,577,420
  at site; and
● develop and deliver training courses on

  biodiversty to relevant staff.                                                    1,031,525

                                                                             National Express Group PLC 21