Over time, some of the sites we’ve owned have become contaminated as a result of manufacturing processes. Our aim is to clean up all our historically contaminated sites and make them safe for future use.
To achieve this, we’ve set aside €228 million for potential clean-up work. And, over the last year, we’ve improved how we report our liabilities in this area.
Soil and groundwater remediation projects
Under environmental laws and regulations, we’re obliged to eliminate or limit the environmental effects of disposing or releasing certain wastes or substances. In some cases, we’re working with sites we’ve sold to other companies in the past, or derelict sites belonging to companies we’ve acquired in the past.
Charging clean-up costs against earnings
Our policy is to accrue and charge environmental clean-up costs against our earnings, when it’s likely that there’s a liability and an amount can be reasonably estimated. Estimates related to provisions for environmental matters are based on the nature and seriousness of the contamination, as well as on the technology required for clean-up.