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

Scope of our work
The environmental targets selected for our assurance engagement were:

Air quality: During 2007, Southampton will focus on working towards achieving the objectives of the air quality strategy 2006-2011.

Energy: To develop an energy strategy during 2007 to include the identification of potential future energy savings.

Energy: Reduce BAA’s direct impact on CO2 emissions by a further 2% against the business as usual forecast between January 07 and December 07.

Noise: In conjunction with the Technical Working Group (a sub-committee of the Southampton Airport Consultative Committee), BAA Southampton will work towards concluding the 2005/06 noise preferred routing trials and publish the results.

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

Surface Transport: BAA Southampton will continue to focus on implementing the surface transport strategy to achieve 18.5% of passengers using public transport to access the airport by 2011.

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 gather sufficient evidence 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 work at corporate and site level and gather further evidence to support our assurance opinion.

The reliability of the reported information and data 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 environmental 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 Southampton Airport’s management is responsible for preparing the CR 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 Southampton Airport.

During 2007 we have worked with Southampton Airport 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 the airport to interview the relevant environmental 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
  
• Reviewed the presentation of information relevant to the scope of our work in the CR 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:

Noise: In addition to concluding the Noise Preferred Routing Trials and publishing the outcome of the trials, Southampton Airport has also prepared and published a community brochure which gives information on how the airport manages noise issues.

Energy: The retrofitting of LED lighting throughout the terminal building has earned the award of ‘Most Transferable Idea’ among all airports in the BAA group. This initiative, along with investment in the building management system (BMS) has helped Southampton to exceed its energy target by 9%.
 
Areas for Southampton Airport to consider for future improvements:

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

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 four 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.