Renold plc is committed to providing and maintaining a safe and healthy workplace for all its employees and all others who visit its premises. As part of this commitment, Renold seeks to pursue a health, safety and environmental policy which ensures that managers at all levels rank the management of health and safety and protection of the environment at least equal in importance to other management responsibilities.

Renold's Board takes a keen interest in the Group's health & safety processes, systems and action plans and is regularly briefed in relation to health and safety performance and any actions being taken to address areas where focus is needed.

Renold seeks to meet all legal obligations with regard to health, safety and the environment to ensure that both its employees and persons who may be affected by its activities are protected.

1. Health and safety policy

The Board of Renold has overall responsibility for health and safety, with the day-to-day aspects of health and safety being managed by each of Renold's businesses, which operate within delegated levels of authority, and which report to the Executive.

In line with this policy, Business Heads are responsible for making sure that health and safety regulations and procedures are implemented and observed and ensuring all employees are properly instructed and supervised on matters of health and safety. They are also responsible for ensuring that the appropriate systems and organisations necessary for the fulfilment of this Health, Safety and Environmental Policy are implemented, maintained and monitored at the sites for which they are responsible.

The management of each Business Unit is required to prepare and issue a local health and safety statement which complies with Group policy and details the health and safety organisation and systems for that particular Business Unit. In preparing this statement and monitoring compliance, the following principles should be adhered to:

• Processes should be are operated in full compliance with relevant statutory provisions for the health and safety of employees at work and should also take into consideration third parties who may be affected (e.g. visitors, contractors and the general public)
• All sites should employ rules regulating the safe use, handling, storage and transport of articles and substances.
• All sites should provide a safe place of work with safe means of access and egress.
• All sites should develop and operate appropriate management systems for matters of health and safety.
• Appropriate training and instruction on health and safety matters should be provided at all levels of employment.
• Co-operation of employees in promoting health and safety at all sites should be encouraged, and a culture of continuous improvement should be engendered.
• Awareness and appreciation of health and safety should be promoted throughout all Business Units and to third parties.

Health and safety is regularly considered by the Renold Board and is a standing agenda item at Executive meetings and Business Unit review meetings. Business Heads will report, in writing, quarterly to the Risk Monitoring Committee, which will in turn report to the Board in accordance with Risk Monitoring Committee's terms of reference.

Unit Heads are responsible for reporting to the Company Secretary of Renold plc and to those responsible for insurances for their Business Unit, as soon as possible, all fatal or serious injuries, accidents or dangerous occurrences and for reporting any incident likely to result in an insurance claim or potential claim to Aon (the Group's insurance brokers) locally for Aon then to report to insurers accordingly.

All sites should review their compliance with this Health and Safety Policy at least every 12 months and, should there be any failings, prompt corrective action should be taken.

2. Individual's responsibilities in relation to health and safety

Health and safety is a concern for all, and all employees therefore have a responsibility:

• to take reasonable care for the health and safety of themselves and all other employees and third parties they encounter;
• not to misuse or interfere with anything that is provided in the interests of health and safety;
• to report any accidents as soon as possible so that Renold is able to pro-actively manage its health and safety risks;
• to co-operate in any investigations of accidents or incidents; and to co-operate with Renold's management and health and safety team to ensure that legal obligations are met and any health and safety risks are minimised.

All employees must use equipment in accordance with operating instructions, instructions given by managers and any relevant training. Any fault with, damage to or concern about any equipment or its use must immediately be reported to the employees' manager.

Employees must ensure that health and safety equipment is not interfered with and that any damage is immediately reported.

No employee should attempt to repair equipment unless trained and designated to do so.

Failure by any employee to take responsibility for their own health and safety or compromise another employee's or third party's health and safety will be treated seriously and disciplinary action may be taken.

3. Accidents and First Aid

Any accident at work involving personal injury should be reported to a first aider at the site where the accident occurred. Details of first aid facilities and trained first aiders are available from Unit Heads.

If an employee suffers an accident at work, they (or someone on their behalf) must report that fact to the individual's manager or a first aider at that site or as soon as possible and the accident must be reported in the accident book. All accidents should be reported, however trivial. Unit Heads are responsible for ensuring that details of first aiders are available at each site.

4. Environmental policy

Renold is committed to minimising the impacts of its business operations on the environment. It is the policy of Renold to adhere, so far as practicable, to the principles set out below and co-operate with industry, government bodies, suppliers and customers to develop and achieve improved standards of environmental protection.

All Business Units are therefore required to:

• strive to continuously improve environmental performance;
• reduce consumption of resources and improve efficiency in the use of these resources;
• manage waste generated from business operations according to the principles of reduction, reuse and recycling;
• manage business operations to prevent pollution so far as practicable; and
• comply with all relevant environmental legislation

As with the Health and Safety Policy, the Board of Renold has overall responsibility for the Environmental Policy, with the day-to-day aspects being managed by each of Renold's Business Units, which operate within delegated levels of authority and which report to the Executive. In line with this policy, Business Heads are responsible for making sure that procedures are implemented and observed to manage environmental risk and to promote protection of the environment.

To this end, the management of each business is required to prepare and issue a local environmental statement which complies with Group policy and details the appropriate arrangements for that Business Unit.

In preparing this statement and monitoring compliance, the principles set out above should be adhered to.

Environmental issues are considered by the Renold Board and are a standing agenda item at Executive meetings and Business Unit review meetings. Business Heads will report, in writing, quarterly to the Risk Monitoring Committee, which will in turn report to the Board in accordance with Risk Monitoring Committee's terms of reference.

Unit Heads are responsible for reporting to the Company Secretary of Renold plc and to those responsible for insurances for their Business Unit, as soon as possible, any environmental incidents or any incidents which could result in negative publicity against Renold or environmental liabilities for Renold.

All sites should review their compliance with this Environmental Policy at least every 12 months and, should there be any failings, prompt corrective action should be taken.

ROLE OF THE RISK MONITORING COMMITTEE ("RMC")

The RMC is a committee of the Board, comprised of the Executive Directors, established to ensure that appropriate policies are implemented in the Group to identify and evaluate risks, and to design, operate and monitor a suitable system of internal control that will constitute compliance with the provisions of the Combined Code of Corporate Governance.

The RMC has the following responsibilities in respect of environmental and health and safety matters :-

• To arrange for assistance and advice for business units to address environmental and health and safety issues.
• To monitor progress at business units on environmental and health and safety matters.
• To review the Group Environmental and Health & Safety Policies annually.
• To report to the Group Board on environmental and health and safety matters.

EMPLOYEES

We respect and value our employees and recognise that they will have different skills, experiences, backgrounds and abilities. We do not condone or engage in discrimination in recruitment, compensation, access to training and promotion, based on arbitrary criteria such as race, caste, national origin, religion, age, disability, gender, marital status, sexual orientation, or political affiliation.

We take appropriate steps to ensure that our employees have a safe and healthy working environment and try to avoid and eliminate potential health and safety hazards. We do not condone or engage in the use of child labour. We actively promote apprenticeship programmes, employing both internal and external facilitators to develop the skills of recruits from schools and colleges and to help them achieve formal skills qualifications.

We do not condone or engage in the use of any form of compulsory or forced labour directly or indirectly such as by requiring personnel to lodge "deposits" or identity papers upon commencing employment with the Company. The vast majority of our employees' working hours do fall within the 48 hours limit averaged over 17 weeks, as required by European Working Time Directive, but to meet the needs of our customers, some of our employees do opt- out of the 48 hour rule. Again, to meet our customers needs and because of the nature of our manufacturing processes, in some of our facilities overtime is contractual. We respect the right of all employees to discuss with their managers their terms and conditions of employment either individually or through collective representatives.

We are committed to being a responsible employer, respecting the human rights of our employees, providing good and safe conditions of working and good and competitive terms and conditions of service. We recognise that our success depends on the full commitment of all employees.