BAA Limited (BAA) appointed Environmental Resources Management Limited (ERM) to provide independent assurance on selected information presented in the BAA Scotland 2007 Corporate Responsibility (CR) Report (the Report).

The environmental targets selected for our assurance engagement were:

Biodiversity (Edinburgh): Carry out a baseline survey of biodiversity throughout the airport campus and immediate surrounding area.

Energy (Glasgow): Reduce site CO2 emissions by 2% (and 3% stretch) against the business as usual forecast between Jan 07 and Dec 07, through improvements in energy efficiency.

Energy (Aberdeen & Edinburgh): Reduce site CO2 emissions by 2% against the business as usual forecast between Jan 07 and Dec 07, through improvements in energy efficiency.

Noise (Aberdeen, Edinburgh, & Glasgow): Prepare a draft noise action plan for the airport by 31 December 2007 and develop a plan for consultation with key stakeholders to ensure that the action plan is finalised by 30 Apr 2008.

Surface Access (Glasgow): Publish revised Airport Surface Access Strategy by end 2007.

Surface Access (Aberdeen): (A) Publish Airport Surface Access Strategy by May 2007; (B.) Publish the Staff Travel Plan by Dec 2007; and (C.) Seek to achieve a 10% public transport mode share by Dec 2007.

Waste (Aberdeen): Increase recycling for the general waste handled by the airport waste contract from 25% in 2006 to 30% by 31st December 2007.

Waste (Edinburgh): Increase recycling for the general waste handled by the airport waste contract from 24% in 2006 to 30% by 31 December 2007.

Water consumption (Aberdeen & Glasgow): Reduce water consumption by 2% against the business as usual forecast between Jan 07 and Dec 07, through improvements in water conservation.

Water quality (Glasgow):   Establish a comprehensive understanding of the future requirements of the Water Framework Directive through consultation with SEPA and an external consultant to produce a value based strategy by October 2007 on achieving necessary compliance by an agreed timescale.

Water quality (Edinburgh): Ensure 100% compliance with the BAA de-icer storage performance standard by December 2007.

Objectives, basis of our work and limitations
We planned and performed our work to obtain all the information and explanations that we believe were necessary to provide a basis for our assurance conclusions as to whether the reported information and data set out in the ‘Scope of our work’ was appropriately reported.

We undertook assurance work at airport level only for this scope of work. We did not assess the appropriateness of the selected targets or the airport’s wider management and reporting of the selected environmental issues. If the engagement had required us to do so, our conclusions may have been different.

If we had been asked to conclude on whether the reported information on the selected assurance topics is materially accurate, we would have needed to conduct more in-depth work and gather further evidence to support our assurance opinion.

The reliability of the reported information and data associated with the targets is subject to inherent uncertainties given the available methods for determining, calculating or estimating the underlying information. It is important to understand our assurance conclusions in this context.

Reporting criteria and assurance standards
BAA applies its own target assessment criteria. We performed our work in accordance with ERM’s assurance methodology which is based on the international assurance and audit standards: ISAE 3000, ISO 19011 and, where appropriate to our scope of work, AA1000AS.

Respective responsibilities and ERM’s independence
BAA and the Scotland Airport’s management are responsible for preparing the Report and for the collection and presentation of information within it. ERM’s responsibility is to express our assurance conclusions on the selected scope of work agreed with BAA and BAA Scotland.

During 2007, ERM has worked BAA Scotland and other BAA companies on other consulting engagements. ERM operates strict conflict checks and we have confirmed our independence to BAA for delivering this assurance engagement.

Our team and assurance activities
A multi-disciplinary team of environmental, corporate responsibility and assurance specialists performed the engagement. 

We conducted the following assurance activities:

• Reviewed self-assessment reports of progress against each target provided by each target owner;
  
• Visited Aberdeen, Edinburgh and Glasgow airports to interview the relevant target owners and review documentary evidence to support their self-assessed progress against each target and challenged the self-assessment on the basis of our findings;
  
• Reported our assurance findings to management as they arose to provide them with the opportunity to correct them prior to finalisation of our work; and
  
• Reviewed the presentation of information relevant to the scope of our work in the Report to ensure consistency with our findings.

Our conclusions
Based on our work undertaken as described above, we conclude that, in all material respects, progress against the selected 2007 environmental targets are appropriately reported.

Our key observations and recommendations
Based on the assurance activities set out above, and without affecting our assurance conclusions, we provide the following key observations and recommendations for future improvements:

Highlights observed in target achievement:

Overall Performance: BAA Scotland bettered 4 of the 15 targets assured by ERM, including for Energy Consumption at Glasgow and Aberdeen airports; Water Consumption at Glasgow; and Biodiversity at Edinburgh.

Noise: BAA Scotland achieved its noise target at each airport to prepare a draft noise action plan by 31st December 2007 and to develop a plan of consultation with key stakeholders to ensure that the action plans are finalised by 30th April 2008.

Areas for BAA Scotland to consider for future improvements:

Knowledge Sharing: Consider opportunities to further collaborate and share knowledge and experience across BAA Scotland to achieve further performance improvements, for example in relation to energy efficiency and water consumption.

Waste management:

• Continue to work with waste management contractors, retailers, airlines and their subcontractors to systematically increase the proportion of waste recycled;
  
• Continue to work with regulatory bodies to examine options regarding the re-classification of waste from aircraft to reduce waste quantities disposed of to landfill;
  
• Continue to liaise with waste contractors to improve the quality of waste management performance data and it use within the business to help evaluate the success of waste reduction programmes and initiatives.

Achieving targets: Continue to work towards delivering the 2007 targets where no or some progress was made; and

Setting performance targets: Ensure targets set are specific, measurable, achievable, realistic and time-based (SMART) so that performance can be effectively measured and monitored against them.

Environmental Resources Management Limited
London, UK
31 March 2009

ERM is an independent global provider of environmental, social and corporate responsibility consulting and assurance services.  Over the past 4 years we have worked with over half of the world’s 500 largest companies, in addition to numerous governments, international organisations and NGOs.

Our assurance statement provides no assurance on the maintenance and integrity of the website, including controls used to achieve this, and in particular whether any changes may have occurred to the information since first published. These matters are the responsibility of BAA but no control procedures can provide absolute assurance in this area.