GKN Driveline

Energy Reduction Initiative

The GKN Way

GKN Driveline

Our Product

Steel is the starting material

Forgings are made through warm and cold forming

Forgings are machined and assembled into CV joints

GKN has more than 40% of the global market for CV joints

GKN Driveline

HR-EHS-014 / January 2, 2001 / Rev. Date: 5/5/04

EHS Policy

At GKN Driveline, we are committed to maintaining a high standard of environmental, health, and safety (EHS) performance by the establishment and review of objectives

and targets by corporate management. We also are committed to creating and promoting a safe and healthy working environment by implementing accident

prevention programs, encouraging safe work practices, and by systematic and active management of risk in all areas of our business.

We strive to comply with all applicable EHS regulations, GKN policies, and other requirements to which we subscribe. We will ensure prompt correction of non-

compliant issues.

We are dedicated to the prevention of pollution, reduced emissions to air, land, water, and to the conservation of natural resources. We encourage the development of waste reduction partnerships with employees, suppliers, and customers. We will

continually improve actions that reduce risks, accidents, and minimize negative EHS impact.

GKN Driveline

ENERGY CONSUMPTION

OUR SIGNIFICANT ENVIRONMENTALASPECTS & IMPACTS

WATER CONSUMPTION

ISO14000 ENVIRONMENTAL MANAGEMENT SYSTEM

WASTE GENERATION

GKN Driveline

THE GKN Energy Policy - Background

GKN Executive Committe has authorised the issue of the GKN Energy Policy

released on 14th September 2005

The GKN group annually spends £79m on energy,

which is equivalent to 36% of profit Each location must formulate its own strategy.

•The name of 1 person responsible for coordinating the project must be reported by Friday 17th March 2006.

•Review the Energy Action Plan as produced by GKN plc.

•Formulate and report Actions relevant to the location by Friday 24th March 2006.

GKN Driveline

GKN GROUP- Energy PolicyAs part of our stated principles for delivering outstanding products and services

to our customers, for maintaining the well being of our employees and for delivering superior returns to our shareholders, GKN is committed to long-term sustainability. Optimising the Group’s consumption of energy is an essential element of this. Our policy is:

1. to improve progressively energy efficiency at all levels in the Group;

2. to have clearly defined energy management roles, responsibilities and plans within an environmental management systems (EMS) framework based on the ISO 14001 standard;

3. to set achievable targets for reducing energy consumption per unit of production in all our operations;

4. to purchase energy at the most competitive rates, to leverage energy purchases across the Group to obtain maximum commitment from suppliers and to develop supply side hedging strategies to minimise exposure to market fluctuations;

5. to ensure that energy consumption is taken into account when specifying new plant and equipment and that significant consumers of energy have energy meters with an output compatible with modern energy management systems;

(continued)

GKN Driveline

GKN GROUP- Energy Policy (cont.)

6. to ensure that energy efficiency receives adequate resources and investment in order to meet the Policy objectives and targets;

7. to include energy awareness and management in employee training programmes;

8. to minimise the environmental impact of our energy consumption by exploring ways of using low carbon technologies, by maximising the use of renewable energy sources where economically feasible, by seeking to reduce progressively emissions of carbon dioxide relative to production and by abiding by international agreements and protocols;

9. to communicate the achievements with external bodies and stakeholders; and

10. to influence our supply chain to pursue improvements in energy efficiency and to adopt low carbon technology.

As a broad strategy for achieving these Policy objectives, we will continually monitor and review our performance in energy management and target achievements throughout all our operations.

GKN Driveline

GKN Energy Action Plan

GKN Energy Action Plan

GKN Energy Action Plan

GKN Energy Action Plan

GKN Energy Action Plan

(See attached file)Key areas for Review outlined include:

•Energy management & awareness•Heating

•Use of fast acting doors•Lighting & management of office equipment

1. Get commitment

2. Understand Energy Use

3. Form a Site specific Action Plan

4. Implement the Plan

5. Monitor Progress and Update the Plan

Summary of key Steps outlined:

GKN Driveline

GKN Driveline Driveshafts ENERGY TARGET

Topic Measure Why Target

Energy kWh Energy (kWh) immediately illustrates the quantity of raw materials used to generate the energy OR it can be translated into the environmental KPI of CO2 emissions

5% reduction

per annum

To achieve the target reduction the key areas for review include: Energy management and awareness (for all operations and activities) as well as the areas of heating, use of fast-acting doors, lighting & management of office equipment.

GKN Driveline

Corporate target: 10% reduction by 2005 from 1999 baseline

5% annual reduction, thereof

Corporate Target

GKN Driveline- Energy Usage versus TargetKWh of Energy per 1 Assembled Halfshaft

0.00

5.00

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35.00

2006

1999 YTD

Jan

Feb Mar

AprM

ayJu

ne July

Aug Sept

Oct

Nov Dec

Energy Usage Energy Target

23.52 DNA Target

23.04

25.24YTD25.04

26.27

GKN Driveline

Energy—CO2 RelationshipProduction Measure GKN Driveline Sanford - Precision Forming Facility

ValueProduction Measure 26,893Planned Production 2007 24,100

Energy Fuel Type Amount Used

Units of Consumption

Conversion factor

Energy Value Period kWhr

Conversion factor

kg(CO2)/kWh

Carbon Dioxide

Emission

Electricity 19,294,776 kWhr 1.00 19,294,776 0.576 11,114Renewable Electricity eg wind generated 0 kWhr 1.00 0 0.00 0Natural Gas 6,755,129 kWhr 1.00 6,755,129 0.18 1,244LPG (propane) 48,000 kg 13.15 630,984 0.22 136Gas Oil 0 litres 10.31 0 0.28 0Wood pellets 0 tonnes 4960.00 0 0.00 0Light Fuel Oil 0 litres 10.62 0 0.27 0Medium Fuel Oil 0 litres 10.91 0 0.26 0Heavy Fuel Oil 0 litres 10.74 0 0.22 0Hot water 0 kWhr 1.00 0 0.36 0Gasoline/Petrol 0 litres 9.23 0 0.28 0Diesel 0 litres 10.31 0 0.28 0

TOTAL 26,680,889 TOTAL 12,49428,150,963 2141491.147 2731587.855 5675.597442 2579399.711 3049108.6 2731588Carbon Dioxide Emissions Direct 1,380 Indirect 11,114

32017066.57Operational Indicator - Energy 992 kWh/unit of productionOperational Indicator - Carbon Dioxide 0.465 Tonnes/unit of production

What is your forecast for total energy in 2007? 23,946,807 kWh 23909918

Alternative UnitsTonnes shippedUnits

Tonnes shipped

If cell F21 is red then you have used more energy relative to production in 2006 than you did in 2005.

GKN Driveline

Transportation CO2

Freight Transport Raw materials and components to your site

Tonne km

kg(CO2)/ tonne

kmLoading Factor (tes/vehicle)

Vehicle kilometres

Fuel Consumption (litres/km)

Litres of Fuel

CO2

output tonnes

Road transport 40,809,706 25 1632388.24 0.4 652955.3 1,750Rail transport 0 0.06 0Sea Short 0 0.06 0Sea Long 24,030,000 0.02 481Air Freight (short haul) 0 1.58 0Air Freight (long haul) 0 0.57 0

TOTAL 2,231

Product and waste from your site

Tonne km

kg(CO2)/ tonne

km Loading FactorVehicle kilometres

Fuel Consumption (litres/km)

Litres of Fuel

CO2

output tonnes

Road transport 10,468,177 25 418727.0866 0.4 167490.83 449Rail transport 0 0.06 0Sea Short 0 0.06 0Sea Long 20,442,000 0.02 409Air Freight (short haul) 0 1.58 0Air Freight (long haul) 0 0.57 0

TOTAL 858

Total CO2 transport emissions 2006 3,088

Forecast CO2 transport emissions 2007 3,026 2767.503763

These cells will be completed automatically once you have entered the data into the tonne km sheets.

GKN Driveline

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2003 2004 2005 2006 Q1 Q1-Q2 Q1-Q3 Q1-Q4 TargetCO2 2007

Carbon Dioxide Emissions from Energy 2002 - 2007

The CO2 target has been derived from your energy target and is accurate provided the energy mix does not change from 2002