ENVIRONMENTAL POLICY

Renold plc is committed to managing its activities so as to provide proper levels of care and safety for the environment, and for its customers and employees. It recognises environmental management to be at least equal in importance to other management responsibilities.

It is the Policy of Renold plc to:-

• seek continuously to develop and manufacture products so as to minimise their environmental impact as far as it is practicable
• co-operate with Industry, Government Bodies, Suppliers and Customers to develop and achieve improved standards of environmental care
• conduct its operations in compliance with relevant statutory provisions concerning environmental matters

In order to implement this Policy all Renold businesses are required to:-

• promote the environmental awareness of all employees and provide appropriate training

• continuously seek to improve the environmental aspect of their operations

Responsibilities and Organisation

The Board of Renold plc has overall responsibility for the Environmental Policy. The policy of Renold is for businesses to operate within levels of delegated authority, reporting to Divisional Managing Directors

In line with this policy, Business Unit Managing Directors are responsible for ensuring that the appropriate systems and organisations necessary for the fulfilment of this Environmental Policy are implemented, maintained and monitored in the areas for which they are responsible.

The management of each business will prepare and issue a local Environment statement which complies with group policy and details the appropriate arrangements for that business.

Environmental matters will be a standing agenda item at business unit review meetings, and at Divisional Board Meetings. Divisional Managing Directors will report, in writing, quarterly to the Risk Monitoring Committee ("RMC"), which will in turn report to the Board.

All businesses must report to the Company Secretary of Renold plc as soon as practicable any major environmental incident.

HEALTH & SAFETY POLICY

Renold plc is committed to provide, maintain and improve a safe and healthy workplace for employees and all others on its premises and to pursue a policy which as far as reasonably practicable ensures that:-

• A safe and healthy working environment is maintained at all sites and locations and that plant and machinery is designed, constructed, maintained and operated safely.
• All new processes are operated in line with this policy.
• Its processes are operated in full compliance with relevant statutory provisions for the health and safety of employees at work and non- employees who may be affected, i.e. visitors, contractors and the general public.
• All locations employ safe use, handling, storage and transport of articles and substances.
• Managers at all levels recognise that the management of health and safety ranks at least equal in importance to other management responsibilities.
• All locations provide a safe place of work with safe means of access and egress.
• All locations develop and operate appropriate management systems for matters of health and safety.
• The appropriate standards of training and instruction on health and safety matters are provided at all levels of employment.
• The co-operation of employees in promoting health and safety at all locations is encouraged, and a culture of continuous improvement is engendered.
• Awareness and appreciation of health and safety is promoted throughout all businesses.

Responsibilities and Organisation

The Board of Renold plc has overall responsibility for the Health & Safety Policy. The policy of Renold is for businesses to operate within levels of delegated authority, reporting to Divisional Managing Directors.

In line with this policy, Business Unit Managing Directors are responsible for ensuring that the appropriate systems and organisations necessary for the fulfilment of this Health & Safety Policy are implemented, maintained and monitored in the areas for which they are responsible.

The management of each business will prepare and issue a local Health & Safety statement which complies with group policy and details the organisation and arrangements for that particular business.

Health & Safety will be a standing agenda item at business unit review meetings, and at Divisional Board Meetings. Divisional Managing Directors will report, in writing, quarterly to the Risk Monitoring Committee, which will in turn report to the Board.

Business Unit Managing Directors are responsible for the health and safety of employees under their control, 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.

It is the responsibility of site management to ensure that appropriate corporate and local Health & Safety policies are provided to, and complied with by, all employees, contractors or anybody else having occasion to be on the site.

All businesses must also report to the Company Secretary of Renold plc as soon as practicable all fatal or major injury accidents, dangerous occurrences or occupational diseases which are required to be reported immediately to the local Regulatory Authorities.

Health & Safety is a concern for all, and all employees have a responsibility:

• To take reasonable care for the health and safety of themselves and all other employees.
• Not to misuse or interfere with anything that is provided in the interests of health and safety.
• To report accidents and co-operate in any investigations of accidents or incidents.
• To co-operate to enable legal obligations to be met.

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.