NGPR Integrated Annual Report 2011

Wastewater reception and environmental treatment solutions for the shipping and oil industries

Integrated Report 2011 for the year ended 31st December 2011

Nature Group plc

Our Mission.Nature’s mission is to be the world’s leading maritime and offshore waste oil service provider.We have a proud tradition of collecting and treating maritime and offshore waste in a safe, environmentally sound and socially responsible manner, and we aim to keep building on that tradition, offering sustainable, innovative treatment methods and solutions to our customers worldwide.We aim to lead the market not only in terms of our revolutionary technologies, customer-focused products and global services, but also through our key corporate principles of People, Planet and Performance. As the world’s population continues to expand, waste will remain an important part of the overall value and supply chain – but at the same time, today’s focus on climate change is driving an ever-increasing demand for renewable, sustainable and environmentally friendly working methods and industry standards. At Nature, we put safety, sustainability and environmental protection at the core of our business strategy. Our mission is to maintain the clean, pollution-free seas required not only for regulatory compliance, but also for the overall health of our natural environment.

Clean seas. Your choice. Our mission.

Nature’s 2011 annual report, titled ‘Nature Group’, is available for iPad download

Nature Group Corporate Strategy

Sustainability

Re

sponsibility

Accountability

Customer Intim

acy

Mar

ket Leadership

Operational Excellence

Waste Streams

Industries

Locations

Integrated Report 2011

ContentsAbout this report 5

Chairman’s statement 7

CEO’s Report 11

Acquisition of new seagoing vessel for international waste logistics 14

Finance Director’s Report Report 16

Consolidated statement of comprehensive income 18

Consolidated balance sheet 18

Consolidated cash flow statement 20

Alliances 22

Responsibilty 26

Waves 28

Sustainability 30

Our policy. 34

Our strategy. 36

Our principles. 38

The incident 42

Accountability 46

Organisational profile 48

- Divisions 50

- Product and services 52

- Stakeholders 54

- Reporting Indicators 2011 56

Projects 60


About this reportReport scopeThis first integrated annual report represents all our business activities where Nature is the majority operator. It covers all subsidiaries and legal entities that had been operational for more than one (1) full month in 2011. The report presents our performance in all operational aspects and activities that have the potential to affect quality, health, safety, the environment and society at large, either positi-vely or negatively. The intentions in these five (5) areas are:

Quality: Encouraging effective, adequate processes and a drive to achieve continual improvement and customer satisfaction.

Health: Promoting the improvement of the physical and mental condition of Nature’s employees and contracted staff and ensuring a healthy working environment.

Safety: Ensuring safety at work without any compromises, providing a work environment where people are able to carry out their job without being injured or getting sick.

Environment: Promoting the prevention or reduction and of pollution and the efficient use of (natural) resources.

Society:Promoting ethical practices and understanding, together with a commitment towards fundamental human rights.

It’s for youWe care about our people, our environment, your safety and our community as much as you do. By producing this report we want to let to know how much Nature cares too. When this report was under development we gave much consideration to you, our stakeholders - including employees, investors, policy makers, regulators, board members, community charities and governmental and non governmental organizations.

One minute of your timeAlthough our team has done their utmost to produce a report that covers all of your concerns and areas of interest, in an attractive and easy to read format, we are still keen to receive your views and opinions on this report. Please contact our Chief Support Officer, Arjan Donatz, with any suggestions by sending an email to [email protected] and he will be more than happy to respond to any questions and remarks you may have, and also take into consideration your opinions in order to improve on the report for next year.


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When I came on board as Deputy Chairman at the beginning of 2011, I initiated the drafting of a complete new policy and strategy for Nature. I am proud to present to you our first integrated report as the current Chairman of Nature Group PLC. You can read my full chairman’s statement in our report for the year 2011 in our printed annual accounts and on our website.

Last year we implemented sustainability not only as part of our strategy but embedded completely within our overall mission where we strive for clean seas. Corporate social responsibilty is at the core of our business and when I invited all our employees to our Nature Event in November last year I was very pleased to see that everyone had absorbed Nature ‘s DNA into the company’s culture, an important factor for longevity, the ultimate proof of sustainability.

Our key impacts on sustainability have led to a 6 pillar strategy, whereby Nature identifies and uses her influence on relevant stakeholders, reduces her ecological footprint and increases her social impact. These six pillars can be described as follows:

1. Waves by Nature - meant to influence society at large to disseminate our message

2. Alliances by Nature - partnerships for education and research related to our mission

3. Principles by Nature - our own corporate principles and social values

4. Responsibilty by Nature - to ensure safety, quality, health and environmental standards

5. Sustainability by Nature - the traditional people, planet, profit model

6. Accountability by Nature - verification of our message by independent bodies

We are honest about this report, it is not perfect and complete, some of our pillars are still being erected to ensure a foundation on which to build our future growth but as with birth it starts with little steps and we’ll accelerate as we grow. It also comes with change, which doesn’t’ normally happen overnight. We see 2011 as a transition year where we started this change and are already looking forward to our next full integrated report, where I cannot use this as an excuse anymore.

In an ever changing world one faces challenges and risks every day, some are manageable, some are faits accompli. Last year we made big steps in identifying our risks, not only applying lessons learned, such as from the tragic incident in Gibraltar, but with a more pro active and transparent approach and converted them into an overall action plan.

At present communicating on overall performance is a major challenge, one should expect it has become easier with modern technology, but fragmentation and speed of information does not give a company a simple manifest on how to reach its stakeholders, has and these have enlarged over the years. Information must be comprehensive, factual, easy and fast to read, but some also need extensive and in depth information on the same subject.

You will read more on our operational and financial performance under the sections of our CEO’s and Finance Director’s report.

Chairman’s statementIntegrated Report 2011

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The Future and our Markets

Our performance in the operations covering port reception facilities is linked to international shipping movements and primarily tankers, which we can see was impacted last year from a definite slow down in this industry, although recently we have been pleased to see that there are indications of a slight recovery in this market. For us this has had a knock on effect where the demand for recycled oil in Europe has not been met by our ability to supply due to the handling of lower volumes.

We see a number of changes happening with our shipping clients as they work to comply with both existing and forthcoming emission regulations with some owners moving to partial use of liquefied nitrogen gas as an auxiliary fuel. In addition to servicing the waste needs of ship owners we also anticipate that cargo related waste will continue to be a major source of waste. The trends we see underpin our strategy to offer our services in a network of key locations combined with excellent logistics intercepting all the major shipping routes. We continue to fully endorse the enforcement of regulations to prevent the pollution of our oceans that arises from reckless discharging of waste materials.

The Oil and Gas division is looking at very promising growth expectations in the offshore oil and gas industry. The global markets are supporting us here, as more and more Governments, as well as operators, are focusing on “zero discharge” policies which will mean that more sophisticated treatment methods are needed, which Nature has demonstrated it can provide. We do not see any let up in the growth of offshore drilling and oil extraction especially in areas classified as deep sea, confirming that the market will remain strong for us.

It is good to see that our strategy is being executed by motivated staff and employees disseminating the Nature message. This has recently led to the formation of a joint venture in Panama: in addition we have entered into a number of memoranda of understanding, which will hopefully lead to further developments of that type. Next to this our sales strategy has been reinforced with some key new appointments already leading to successes and a robust sales pipeline.

The engineering division will continue as a smaller operation within Nature, but as we grow into new markets we can develop and can capitalise on the knowledge we recently gained in Oman. We anticipate that our EcoScrub technology for emission control solutions will gain more market success through 2012.

Risk Management

Every aspect of the value chain within our Industry for the collection and treatment of hazardous waste is ruled by legislation, therefore compliance is at the core of all our processes. We have begun implementing new quality and safety systems used by other international class leaders in related industries.


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Conclusion

The management team and their staff are working hard to take Nature forward to win new opportunities, which encourage our partners and customers to share their environmental management strategies with ours. Having highlighted the hard work that the staff in Nature do I would like to take this opportunity to thank them for their commitment to the goals we have set for Nature. It is our ambition to become a world-class waste treatment company where we contribute to a better environment by saying; Clean Seas, Your Choice, Our Mission.

Bernard Muller

Chairman

21th June 2012

Today more than ever, global economic prosperity and quality of life depends on a clean and healthy environment. Ensuring a healthy marine life and keeping our seas clean is an imperative.It is an honour to lead Nature Group into a future that builds upon a tradition of collecting and treating maritime and offshore waste in a safe, environmentally sound and socially responsible manner. In this year’s Report, our intention is to give a glimpse of how Nature employees do so every day.

2011 Operations

Nature Port Reception Facilities (Maritime Division)

Last year we collected and treated nearly 180,000 cubic metres of maritime and offshore waste. As we previously reported the global economic slowdown has inevitably meant a decrease in overall shipping movements with a knock on effect for volumes at both our major port locations. Volumes were also affected by the industrial incident in Gibraltar although we were able to resume waste collection services for treatment by a third party.

Margins per collected ton of waste in our maritime division were slightly higher compared to 2010, but volumes were down 25%, in line with the general shipping market and port volumes. We see a downward trend on margins, starting at the end of 2011, due to more competition and a mis-match between supply and demand in the recycled oil market.

The recovered oil from our treatment processes is recycled for use in other industries, ensuring our promise to customers that it never shows up in their original supply chain again. In our own or sub-contracted treatment facilities the contaminated waters have oil and other contaminants removed by Nature’s biological processes.

The synergies we anticipated for the enlarged Nature Group, at the time of the acquisition of Interna-tional Slop Disposal (ISD), have been realised. ISD has shipped cargoes of waste oil from the Nether-lands to Gibraltar plus the international contracts for waste collection that ISD has negotiated with ship owners have now been extended to Gibraltar, resulting in additional collections.

In 2011 Nature International Slop Disposal acquired one collection barge, the Hydrovac 6,with a capacity of 1,200 tonnes for the Rotterdam operations. Additionally, as announced at the end of 2011, ISD also acquired the MV Crystalwater a seagoing double-hull stainless steel chemical tanker with a capacity of 2,500 tonnes. Both additions were made to maintain and improve our logistics, which are of vital importance to our services. We are in the process of identifying additional barges to purchase, as and when appropriate, to further enhance our expansion plans.

These and other improvements enabled us to divert cargoes for third party treatment mitigating the financial and commercial impacts of the incident in Gibraltar, and maintaining our position as a major maritime waste solutions provider, a matter upon which we comment below.The successes of 2011 have been significantly overshadowed by the incident in Gibraltar on May 31st 2011 when, as shareholders will be aware, an explosion occurred within our storage tanks in an area of the port shared with the cruise liners.

CEO’s ReportIntegrated Report 2011

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The tank explosion has of course had an effect on our employees, the local community and sadly for the family of the sub contractor’s employee who lost his life. Since the incident occurred the management of NPRF Gibraltar, together with Group staff, have been working tirelessly in conjunction with the Gibraltar Government to provide the reassurance that a similar event happening again is extremely unlikely.

Nature Oil & Gas

Traditionally it has been common practice for offshore oil and gas installations to send their waste to shore despite this requiring expensive and time consuming transhipment by oil support vessels. Nature’s CTUs can treat the waste offshore and, if required, at an onshore location, although treating waste at source is the environmentally sound way forward.

The Oil Industry acceptance of offshore treatment gained traction in 2011. With several on-going projects in Norway and more recently in Brazil, demand is increasing and the pipeline of potential projects is growing. As a result, the Board decided in 2011 to build two additional CTUs to meet the increased market potential and we expect to have the units delivered to our base in Stavanger by July 1st 2012. Servicing our CTUs will be centered on our new base in Stavanger which includes offices and a full workshop facility. Our CTU technology has led to potential clients identifying an alternative treatment solution involving cargoes of contaminated waste oils from FPSO’s (Floating Production, Storage and Offloading vessel. These may previously have been shipped to Rotterdam for treatment but customers now see the opportunity to position a CTU on their installations. This has the benefit of being a sustainable and cost effective solution, and has already resulted in a rental of one of our CTUs to a major oil client in Brazil.Nature Oil and Gas will lead a clearly segregated division within our structure to focus on the op-portunities in the oil and gas industry. As part of this move we have strengthened the management team with the appointment of a Managing Director for Norway who was formerly the CEO of a related business , and is experienced and well connected within the Norwegian Oil and Gas Industry.

Nature Engineering

Nature Environmental Solutions Ltd (NESL)

During 2011 we have built and fulfilled our contract for delivery of a waste treatment facility in the Port of Duqm in Oman, located on the Indian Ocean. Despite a number of challenges the margin on this contract has remained positive. We are pleased to report that during the first quarter of 2012 the plant was commissioned and handed over to our client in mid April, with the contract officially coming to an end after the agreed training period at the end of June this year. This contract has demonstrated that Nature are able, as subcontractors, to supply and build a fully specified treatment plant on a greenfield site that will be an important facility at the new port.

Ecoscrub Solutions (Emission and odour control technology)

In 2011 we had several small orders for our compact and portable scrubber unit. We have partnered with a local company to sell and market our technology to further grow this business.


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We see an increased demand for environmental solutions like this to cope with emission and odour problems in urban areas. We have reached the status of BAT (best available technology) by the Dutch Environmental Agency, which means that other facilities will have to use Ecoscrub or be forced to adopt equivalent technology by legislators. Recently we received very promising test results at two major facilities in the port of Rotterdam both meeting the stringent emission criteria of recently adopted environmental legislation. We are in talks with several industrial customers to rent or sell our units and we expect this business to further develop into 2012 and 2013.

Integration of Group operations

Following the acquisition of ISD we have been engaged in the integration of the businesses, part of which is the development of a common culture across the Group. As part of this process we adopted a new corporate strategy last year, which in addition to our growth plans included a commitment to working with our customers to establish the best ethical standards in environmental management. As a further step, to highlight our openness and transparency towards the work we are undertaking for corporate and social responsibility, details will be available as an addendum to this report and as a downloadable iPad app.

Business development and executing our strategy

Since the adoption of our new strategy, much effort has been put into setting up a dedicated and focused business development plan that has already led to a number of exciting leads internationally. Building an international company and developing opportunities on this scale takes time. However, we are committed to this process and emphasise that our growth plans for Nature are a long term project, as it is indeed for any modern waste management company, providing the resources and know-how that are required of our clients and ourselves in environmental compliance.

Andreas DrenthenCEO

21th June 2012

The international collection and transportation of large-scale maritime waste cargo has been a persistent and costly problem for the maritime sector. To solve this, Nature Group has acquired a dedicated seagoing tanker for international maritime waste transportation, which will be operative as of 2012.

The new vessel, Crystalwater, is a 2,500 DWT stainless-steel double-hull chemical tanker, capable of transporting large quantities of maritime waste across the open sea swiftly, safely and sustainably. Registered under the Malta flag and fully classed by Lloyd’s Register of Shipping, the Crystalwater was purchased in the Netherlands in November 2011 from previous owners the Clearwater Group. With this acquisition, Nature Group becomes the first company dedicated to international freight transportation of waste cargos in accordance with EU Directive 1013/2006.An impressive addition to our existing fleet of dedicated waste collection vessels, the Crystalwater is expected to be based at our Gibraltar facility. Her services will be managed by our Gibraltar subsidiary NPRF, which is fully certified as an International Safety Management Operator and approved by both the Gibraltar and Maltese Maritime Authorities.

The Crystalwater’s capability for international collection, storage and transportation of large waste cargos creates many new opportunities. In the past, it has often been difficult to find a vessel that is both available and appropriate for large-scale international waste transportation – especially since any such vessel must also be fully compliant with all international legislation on hazardous waste, and registered as a transportation vessel on one of our many European trans-shipment licenses. The cost of charter, moreover, is prohibitive, leading as it does to uneconomic freight costs. With the Crystalwater in our fleet, however, these difficulties will no longer serve as an obstacle to the expansion of our international business.

Furthermore, our strategic position in Gibraltar, with access to both the Mediterranean Sea and the Atlantic Ocean, will give the seagoing Crystalwater access to a great number of ports within a sailing range of several days. The Crystalwater thereby allows Nature Group to venture into new territories, extending our services as far as the East Mediterranean, Africa, the Caribbean and the US Gulf. The acquisition therefore not only helps us to extend our logistical expertise to international duties, it also opens up exciting new opportunities in the global world of maritime waste collection, storage and transportation.

Acquisition of new seagoing vessel for international waste logistics

Darren Laguea, Managing Director


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Finance Director’s ReportIn line with our trading update on January 31st 2012, the 2011 profit before tax is £1.52million and, after tax £0.40million, Nature is reporting a net profit of the year of £1.12million. Revenues for the year were £15.05million compared to 2010 of £6.83million, which included 22 days from the acquisition of ISD. As stated in our operational commentary a decline in our maritime volumes and the Gibraltar incident have had a significant effect on revenues and profits.

Despite an increase in operating profit of £2.91million, our pre-tax profit showed only a marginal increase as a result of a rise in administration expenses from £0.94million to £3.65million. This was largely due to a combination of exceptional costs in respect of the incident and business integration, as well as the enlarged Group, which were not included in 2010.

From 2012 we will be reporting in line with our divisional structure, separately highlighting the results for maritime, oil and gas and engineering activities. As a lead into that process we can report that in 2011 maritime had a turnover of £11.70million, oil and gas £2.10million, and engineering £1.40million. Since ISD was only integrated fully in 2011 we cannot compare these numbers with our 2010 outcomes.

Cash balances at the close of 2011 were £2.91million compared to £5.74million at the end 2010. As reported earlier, to improve our logistics we acquired the MV Crystalwater, Hydrovac 6 and invested in new CTUs out of cash resources. The Gibraltar incident has, of course, required unforeseen expenditure on necessary repairs and clean-up work to the plant pending full damage repair, the costs of which have been absorbed into our results for 2011. A further £0.20million of expenditure has been written off relating to legal and professional advice arising from the incident.

Group overhead costs have increased following the implementation of our new growth strategy, and a number of one off costs were incurred in the integration of ISD relating to marketing and business development costs which were valued at £0.20million. We can anticipate some limited one off costs continuing into 2012.

Foreign exchange gains on trading were £85,000 for 2011; however the recent strengthening of sterling will have an effect if it continues in the translation in our euro dominated revenues into sterling on consolidation. This impact should lessen in the future as we would expect US dollar income to grow as intended new projects come on stream.

After the accident we submitted our claim to our material damage insurers who subsequently declined cover at the end of January 2012, stating they were not prepared to pay our claims for loss of business and property damage. We believe this move by insurers was totally unjustified and we are continuing to vigorously pursue what we believe is a legitimate claim. This view was taken following legal advice supported by new evidence to rebut their action. However we cannot, at this stage, offer any certainty as to the possible outcome of any forthcoming court proceedings, should we go down that route. Any third party liability claims we received have been passed on to our liability insurers in the normal way. Prudently, any expenses we have incurred as a consequence of the incident have been written off by the year end.


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The denial of our material damage claim has had a severe impact on our revenues, estimated at £2.4million, with consequently an adverse effect on our 2011 profits. Combined with a provision taken for the repairs of our facility in Gibraltar and other related costs we have calculated the total impact on our results to be circa £3.5million and for which we have filed a revised claim with the insurers of £3.1million.

The Board feels at this stage it would be premature to set a date for the resumption of treatment operations in Gibraltar. However, we are cautiously optimistic that ongoing discussions with the Gibraltar Government have been constructive and all outcomes are being reviewed to come to an cceptable long term presence to fulfill the Government’s requirement. Although our waste management permit had been temporarily withdrawn we are pleased to report our other licences, covering the collection and export of waste from Gibraltar, have not been revoked. We do however feel it important to note that the carrying value of our assets in Gibraltar valued at £2.4million have been raised by our auditors as an “emphasis of matter” should for any reason there be no resumption of operations.

Kieron Becerra

Finance Director

21th June 2012


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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Audited AuditedYear ended 31 December 2011 year to year to 31/12/11 31/12/10 £ £ Revenue Continuing operations 15,051,934 6,830,223 Cost of sales Continuing operations (8,961,101) (3,650,881) Operating profit 6,090,833 3,179,342 Other income 49,451 16,439Share based payments (26,840) (151,303)Administrative costs (3,645,146) (938,028)Depreciation and goodwill amortisation (1,031,986) (556,369)Finance costs (81,271) (17,284)Costs to acquire group companies 0 (106,937)Share of profits of associates 160,792 78,482 Profit before taxation 1,515,833 1,504,342Income tax expense (394,521) 24,037 Profit after tax 1,121,312 1,528,379 Earnings per share (pence) Basic 1.423 3.711Diluted 1.400 3.546 Profit after tax, before share based payments andGroup acquisition costs 1,148,152 1,786,619 Earnings per Share (pence) excluding share based payments and Group acquisition costs 1.457 4.338

Our full, comprehensive financial report, named Nature Group plc Report and accounts 2011 is available as downloadable document at our website www.ngrp.com or at www.ngrp.com/annual-report-2011

CONSOLIDATED BALANCE SHEET Audited AuditedAt 31 December 2011 As at As at 31/12/11 31/12/10 £ £ Assets Non-current assets Plant, vessels and equipment 9,269,481 7,060,992Goodwill 13,224,120 13,224,120Other intangible assets 113,671 129,289Investment in associated company 420,608 269,469Deferred tax assets 108,455 89,827Total non-current assets 23,136,335 20,773,697 Current assetsInsurance Recoveries on 3rd Party Claims 3,900,000 0Corporate taxes 39,300 0 Stocks and work in progress 119,588 98,059Trade and other receivables 3,958,683 4,096,871Cash and cash equivalents 2,912,406 5,741,644Total current assets 10,929,977 9,936,574 Total assets 34,066,312 30,710,271 Liabilities Current liabilities Trade and other payables (1,963,925) (2,716,534)Bank loans and overdrafts (139,712) (191,582)Corporate taxes 0 (8,743)Provision for 3rd Party Claims (3,900,000) 0Total current liabilities (6,003,637) (2,916,859) Non current liabilities Term loans (1,387,867) (1,555,110) Net assets 26,674,808 26,238,302 Equity Called up share capital 157,561 155,120Share premium account 21,917,117 21,683,488Share option reserve 114,021 151,303Capital reserve 2,925,520 2,925,520Foreign currency translation reserve (115,868) 0Profit and loss account 1,676,457 1,322,871 Total equity attributable to equity shareholders 26,674,808 26,238,302


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CONSOLIDATED CASH FLOW STATEMENT Audited AuditedYear ended 31 December 2011 year to year to 31/12/11 31/12/10Reconciliation of profit before taxation to net cash flow from operating activities: £ £ Profit for the year before taxation 1,515,833 1,504,342 Adjustments for: Depreciation of fixed assets 1,031,986 556,369(Increase)/decrease in stock (21,529) 6,825Decrease/(increase) in debtors excl. insurance recoveries on 3rd party claims 250,809 (1,304,479)

(Decrease)/increase in creditors excl. provision for 3rd party claims (1,545,535) 672,641

Foreign exchange differences (115,868) 0Share based payments 26,840 151,303 Net cash from operating activities 1,142,536 1,587,001 Investing activities: (Increase)/decrease in investments (151,139) 5,850Acquisition of tangible fixed assets (3,171,375) (607,661)Acquisition of intangible fixed assets (53,482) 0Acquisition of subsidiaries net of cash acquired 0 (7,026,347) Financing activities: Cash consideration from issuance of shares net of issuance costs 236,071 10,431,839Dividends paid (831,848) (235,861) Increase in cash balances (2,829,238) 4,154,821 Analysis of cash and cash equivalents during the year: Balance at start of period 5,741,644 1,586,823Increase in cash and cash equivalents (2,829,238) 4,154,821 Balance at end of period 2,912,406 5,741,644


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AlliancesEuroshoreEuroshore is an International Trade Association of port reception facility providers in Europe and beyond. Euroshore was founded in 1998 and now has members in Belgium, France, Germany, Gibraltar, Greece, Italy, the Netherlands, Spain, Portugal, Romania, Turkey and the United Kingdom. The main objective of the Association is to promote and further the interests of companies that are active in the area of ships waste management. The objectives are:

- To promote the use of its members port reception facilities- To promote the efficient and environmentally sound disposal of ships waste- To promote relevant international policy, procedures and standards of competence for the collection and processing of ships waste- To promote healthy and fair competition. Past activity has seen the Association closely in volved in the development and implementation of the European Directive (2000/59/EC) on Port receptions facilities for ship-generated waste and cargo-residues.

AchillesIn 2011 our subsidiary based in Norway, Nature Oil Gas AS, was a registered supplier in the Achilles database, which demonstrate the effective implementation of policies and procedures which create business opportunities and reduce risks in the supply chain were in. Achilles works to identify, qualify, evaluate, and monitor suppliers on behalf of major organisations worldwide. They build and support buyer-supplier communities in many industry sectors, creating unique and powerful global networks. Their services for sustainable procurement help create opportunities for business and reduce risk in the supply chain. Achilles Joint Qualification System (JQS) is a unique collaboration between Norwegian and Danish oil and gas operators and management contractors. The participating organisations use the system to provide information and to select suppliers and contractors when buying goods and services. Those buyers not subject to the EC procurement di-rectives are actively using the system as a joint vendor database.

MVOMVO Nederland (CSR Netherlands) is the national knowledge centre and the national network organisation for corporate social responsibility (CSR) in one: the place to start for any entrepreneurs wishing to make their commercial operations sustainable. With CSR a business takes responsibility for the impact of its business activities on people and the environment. In ‘people and planet’ issues the company can see opportunities for new products, services or processes that benefit both society and the business. Companies that have embedded CSR carefully in their commercial operations tend to outperform their competitors. Outcomes include:

- A better market position through cost reduction, increased turnover and innovation

- New sales and partnership opportunities

- A strong reputation through greater distinctiveness and trust amongst clients, in the labour market and in the community

- A strong business culture: employees are more motivated, more productive and healthier if they can make a positive contribution to society through their work.22


EBISEBIS, the European Barge Inspection Scheme, commenced operations on 1st July 1998. The Scheme has been developed by oil and chemical companies as part of their commitment to improving the safety of tanker barging operations. The main aim of EBIS is to exchange objective safety and quality data on tank barges, of which an EBIS Member company may consider the use or the reception at its terminal [source: www.ebis.nl]Six (6) of the eleven (11) barges of International Slop Disposal (ISD) have been inspected and meet the requirements laid down by EBIS. This is the result of periodical internal pre-inspections, along with confirmed and documented annual inspections, executed by independent EBIS inspectors

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ResponsibilityBusiness AssuranceNature’s management system is under review however it has been established, implemented and maintained in order to ensure continuous and consistent Business Assurance for all processes, at all our locations. The system is defined by strong legal compliance, risk management, and group policies and guidelines, this includes our commitment to corporate sustainability.In 2011 Nature appointed a full time Chief Support Officer in order to meet the demands of both our organisation and our stakeholders. His arrival ensures the highest standards of risk management, legal compliance, corporate sustainability and customer focus. He brings more than 10 years of international experience in the field of business assurance, risk management and management systems, and assures us of continued growth and development within our business model and management systems, while meeting the requirements expected of us, both now and in the future.

Management SystemsTwo of Nature’s largest operating entities have been certified for many years in line with ISO 9001:2008 and ISO 14001:2004. The already present certification of International Slop Disposal (ISD) and Nature Port Reception Facilities (NPRF) encouraged Nature’s executive team to certify Nature Group PLC as a whole. In 2011 Nature started rebuilding the existing management system into a Group management system, and the first renewed policies, guidelines and procedures have already been established, published and implemented. The Group Management System takes into account the requirements laid down in the internally recognised standards (eg. ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 and ISO 26001)

Competences & TrainingNature only employs qualified and well-trained employees. When an employee has the ambition to follow an external training/course or workshop he/she can communicate this to his/her line manager and/or Chief Support Officer. One of the most important vehicles for Competences & Training are the operational meetings. During internal meetings cases are discussed and knowledge and experience are exchanged, both locally and internationally. Furthermore several safety and environmental exercises are conducted periodically.

Governances, Commitments and EngagementsNature has appointed a team of directors (executives) who secure the monitoring and continuation of our daily operations, business assurance and financial stability. In 2011 the following directors took their positions and led by example:

- Andreas Drenthen, Sales Director and CEO- Darren Laguea, Group Managing Director and COO- Kieron Becarra, Finance Director- Arjan Donatz, Chief Support Officer / Compliance Director

In order to achieve leadership and apply the governance rules related to a public company, the executives are led by Bernard Muller, executive chairman, who is the interactive link between the non executives and executive members of the board of directors.The Board recognises its obligation to strive towards the long-term success of the company through entrepreneurial leadership, the setting of strategic aims, and will ensure that this is


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achieved through prudent and effective controls combined with the resources to meet its objectives. The corporate governance review carried out in 2011 highlighted the need to consider the expected growth and the number and membership of the Board Committees. As a result the Company has now established a nominations committee, a remuneration committee and a risk and audit committee, whose members consist of the non executive board members.

Business Code of conductThe code clarifies the expectations and responsibilities that Nature Group and we, as employees, have to each other, our partners, stakeholders and to our communities. It supports our understanding of the responsibilities we share, and will help us to anticipate and protect against all kinds of issues that may occur. Although we are a multi-national corporation we apply integrated standards and policies across the Group, complying with local legislation and the established in-house policies at each location (e.g. drug and smoking policy, social media policy, internal communication policy, lease car policy etc.)


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Waves

Earth DayOn the 26th of March 2011 Nature Group showed its continued commitment to the environment by teaming up with the WWF to promote Earth Hour in the port of Rotterdam. The entire inland navigation fleet together with our landlord’s tank storage facility “Service Terminal Rotterdam” and Nature’s offices switched off their non-essential lighting. The initiative to reduce the impact of global warming is in full accordance with Nature’s policy in respect to of corporate social responsibility (CSR), and health and safety. It also created a greater awareness in Nature’s stakeholders, which consequently resulted in to even more participants in this event.

HTGYO“Practice what you preach” is our motto! Implementing a profound CSR policy is a start. Acting in accordance with this policy is something different. It is important to Nature and her fellow company in The Netherlands, Burando Maritime Services, to create more awareness and emphasize the importance of the CSR policy among their employees and stakeholders. Therefore the group’s management has distributed the book “How To Green Your Office”. This green guide is full of eco-friendly tips to conserve energy and reduce waste in the office.

Clean SeasOn this ‘Ocean Planet’, where seawaters cover more than 70% of our earth’s surface, the health and cleanliness of our oceans is of paramount importance. For centuries, our oceans have been polluted by all kinds of waste, and we at Nature recognise the severity of this problem. We care deeply about our planet and we truly practise what we preach. For twenty-five years, Nature has contributed to cleaner seas by collecting wastewaters, processing them with biological treatment methods, and returning over 90% of the cleaned wastewater to the sea in accordance with strict environmental regulations. Recovered oil, meanwhile, is recycled for use in a range of different industries, delivering on our promise: ‘Waste into Energy’.

Nature EventBetween the 23rd and 25th November 2011, Nature Group held its first official ‘kick-off’ meeting. Our CEO; Andreas Drenthen, and our Chairman, Bernard Muller, presented Nature’s corporate strategy for 2012 and beyond. The meeting, held in the beautiful scenery of the Portuguese Algarve, was also the perfect opportunity to bring colleagues from Gibraltar, Padstow, Rotterdam and Stavanger together, in one place, for the first time. During this event, named “Create”, the revealed strategy was combined with coaching sessions and leisure activities in order to strengthen the sense of team spirit within the Group and its multiple offices.


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Your choice. Our mission.

Sustainability“Sowing the seeds for sustainable seas”Nature’s ambition is to be one of the most attractive and sustainable companies in its industry. This can only be achieved by combining a sound management and fair trade structure with continuous attention to sustainable processes. Nature Group actively promotes and deploys its sustainability strategy and policy, “Green Thinking” as part of our daily work, and we will continue to promote our “Clean seas are possible” philosophy at every appropriate occasion.The great part of a CSR initiative is that if you choose the sectors that are close to your operations and/or services, they compliment perfectly your quality, environmental, and health and safety programmes, which ensures that everyone involved remains motivated and the processes surrounding it remain challenging. In 2011 Nature supported and executed many initiatives considered as sustainable (for further details see our sustainability timeline)

Arjan Donatz - CSO


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Mar. 1, 2011 Apr. 1, 2011 May. 1, 2011 June. 1 2011 July. 1, 2011 Aug. 1,2011

Business Development Manager RecruitedMarch 1, 2011

World water DayMarch 22, 2011

New Corporate IdentityApril 1, 2011

New Corporate IdentityApril 2011

World Health DayApril 7, 2011

Earth DayApril 22, 2011

New CSR Policy introducedApril 22, 2011

CSR Report 2010April 22, 2011

MSC 9001-14001 NPRFMarch 2011

Launch new websiteJune 5, 2011

World Environment DayJune 5, 2011

Sponsor Alpe D’HuzesJun. June 8, 2011

NGRP CSR Calender 2011Integrated Report 2011

Sep 1. 2011 Oct. 1, 2011 Nov. 1, 2011 Dec. 1, 2011 Jan. 1, 2012

Sponsor Sophia Child HospitalOctober 2011

Sponsor NSGkOctober 2011

KilimanjaroArt with a heartNovember10, 2011

Nature GroupTeam EventNovember 23-24, 2011

Compliance DirectorCSO recruitedDecember 1, 2011

Release of“How to green your office”December 13, 2011

EBIS inspectionISD FleetDecember 15, 2011

MembershipMVO NederlandDecember 31, 2011


Our policy.IntroductionSince the start of our operations, we have been making a valuable contribution to a more sustainable world with cleaner seas by collecting, treating and creating energy out of wastewater. Nevertheless, in our opinion, CSR is more. CSR is about having a positive impact on people, planet and performance; a positive impact for our stakeholders - our employees, clients, suppliers, communities and society at large. CSR affects all our activities, everything we do day after day. Our focus is on the people, planet and performance related aspects where we can and do make a difference.

Established in our principles is a commitment to:- Health and safety- Business (quality) assurance, customer relations and customer confidence- Compliance and transparency- Innovation and sustainable solutions- Communication of our performance to all stakeholders- Leadership, personal responsibility and development- Clean seas- Society and environment

Nature’s policies and commitmentsHealth and safety for all and environmental protection are top priorities in the guidelines of Nature Group. These guidelines are binding for all employees and, most importantly, entail a commitment from the senior management to quality, health, safety, and the environment. Nature is committed to providing healthy workplaces, thus reducing illness and absence of employees and striving for zero incidents and accidents. Nature also aims to reduce the use of natural resources and minimise environmental pollution in all its forms. Management programmes will be used to address and to follow-up issues identified by our stakeholders and by Nature itself, to make positive impacts in the widest sense (from people to society to environment to stakeholders and vice versa).

Legal and regulationsNature complies with both local and international law plus other applicable legal regulations, customer requirements and recognised (international) social guidelines, (e.g. with regard to child labour, equality of human rights as stated in the ILO Conventions etc.) Where possible we actively support and endorse better regulations and anticipate future regulations, locally and globally to improve our standards, procedures and performance. ent

Competences and experiencesHaving a long history in the transportation and handling of dangerous waste, we have always recognised our responsibility in matters of quality, health and safety and the environment. Nature’s training programme for hazardous goods is used for training the staff of several customers as well as our own. Taking into consideration our activities at port facilities we establish, implement and maintain tailor made policies and procedures for the prevention of (major accident) hazards.

Monitoring and reportingNature uses advanced information technologies to record, monitor and analyse incidents, maintenance activities, legal compliance and our performance in general. We will periodically publish our relevant quality, health and safety and environmental performances (e.g. carbon footprint) in-line with legal, CSR and financial parameters and/or guidelines and rules.


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Business accuranceNature Group has and will maintain the clear requirement of implementing the same environmental, health and safety and sustainability standards as those applied by our customers and/or our stakeholders. The strictest quality, health, safety, environmental and (major accident) hazard / emergency response standards are an integral part of world-class performance in Nature Group services. Therefore we will establish, implement and maintain a group-wide management system according to recognised standards.


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Our strategy.Our principles are at the core of everything we do at Nature Group.Since the start of our operations more than 25 years ago, we have contributed to cleaner seas and a more sustainable world by collecting, treating and creating energy out of wastewater. Our commitment to environmental protection and sustainability is passionate, but our vision of Corporate Social Responsibility doesn’t stop there. We believe in having a positive impact on everyone and everything our business touches: our employees, clients, suppliers, shareholders, communities, the environment and society at large.

This conviction has led to a six-pillar strategy:

1. Waves by Nature: initiatives to disseminate our CSR message and create a sustainability ‘wave’ that will ripple through our employees and stakeholders to society at large

2. Alliances by Nature: partnerships for education, research and sharing of best practices related to our mission

3. Principles by Nature: commitment to our own corporate principles and social values

4. Responsibility by Nature: maintenance of the highest standards for quality, safety, health and environmental protection

5. Sustainability by Nature: placing of sustainability at the heart of all our business activities, in line with the People, Planet, Performance model

6. Accountability by Nature: verification of our conduct, our policies and our message by external, independent bodies

Transparency

Continuity

Waste

Energy

Community

Health

and s

afety

Clea

n se

as

Compliance

Energy

CSR


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Compliance We work in accordance with relevant rules and legislation to ensure we comply with all health, safety, human rights and environmental standards.This is at the core of our business.

EnergyWe aim for energy efficiency and a minimized carbon footprint in our business processes.

WasteOur core business is waste. Therefore we reduce, reuse and recycle our own waste as much as possible.

ContinuityWe strive for continuous improvement. We apply the highest standards of maintenance and adopt new techniques wherever possible.

TransparencyWe communicate in an open and transparent manner with our stakeholders about how we do business.

Clean seasThis underpins the foundation of our business. We want to work with our customers to achieve our shared objectives for the benefits of the environment.

Health & safetyWe provide a safe and healthy environment to work in. In this way we support the well-being of our employees.

CommunityWe aim to be a good neighbour. We invest in community initiatives related to our business.

iCSRWe expect everyone within our organisation to contribute to CSR by behaving in a responsible and ethical manner.


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Principles“Principles communicate our core values and what we stand for as an organisation, and a route to achieve our goals.The principles ensure work is carried out in a safe way and that healthy working conditions are provided, for both ourselves and for others, ie. external contractors. These principles attempt to mitigate risks and incidents, but if they do occur, learn from them and be open and transparent about it. The principles encourage us to care for our environment and to apply social rules when communicating with each other, in a world that is constantly changing. They describe the way we want to be: a world-class, motivated operator which stands for Nature.The development of leadership and talent needs to evolve, but by embedding these principles in the company’s culture we will endure the test of time, as only strong cultures do. It is my vision that Nature Group will still exist in the year 2100, and be among the best in the world, a world which has inevitably become sustainable, with cleaner air and oceans. It is possible with Nature ....... Bernard Muller - Chairman


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Our principles.Leadership and accountabilityIt is Nature’s intention that Board Members, Directors, line managers, employees and (sub) contractor staff are aware of their own role, responsibilities and accountabilities. They will demonstrate leadership (where relevant) and commitment to Nature’s policies and corporate sustainability strategy, through an effective management system.

Planning, goals and targetsIt is Nature’s intention to achieve sustainable development as an integrated part of our planning & control cycle. The planning & control cycle is crucial for our goal and target setting process and in order to ensure continual improvement.

Legislation, requirements and commitmentLegal, regulatory and other requirements to which Nature Group subscribes are identified, available, understood, monitored and complied with. Document Control and Record Management - Documents are produced consistently and records are kept to demonstrate conformity to Nature’s policy and other (legal) requirements.

Risk management - management of changeHazards and risks are identified and assessed systematically in order to prioritise those which are significant and to manage and control these hazards and risks.

Business developmentManaging risks is integrated in all processes of Nature Group. From the beginning (design, acquisitions) during approval, procurement and construction, right through to the end (start-up, commissioning).

Awareness, competence and attitudeEmployees, (sub) contractors and suppliers are aware of all possible hazards and risks, are competent and have the right attitude to act appropriately, safely and in-line with Nature’s strategy, policies and stakeholder concerns. Communication and Participation Effectiveness, openness and transparency are the success factors of communication and interaction with employees, contractors and stakeholders. Nature encourages all involved parties to participate and contribute towards the common goal of a sustainable future with cleaner seas.

Operations maintenanceAll of Nature’s fleet and equipment relating to Nature’s activities (whether on site, remote and/or offshore) are operated, maintained and inspected in a sustainable way, in-line with legal requirements and Nature systems and procedures.


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Contract managementContracting of services (purchasing, hiring, leasing of vessels/ships, equipment, materials, employees) are carried out in a sustainable way to reduce and/or control their impact where possible.

Emergency, incident and improvementAll incidents, accidents and near misses are recorded, investigated and analysed. Non-conformity to the system, procedures, legal and other requirements are reported. Appropriate corrections and corrective actions are taken and the lessons learned are shared.

Monitoring, reporting and reviewingPerformance and systems are monitored, analysed, assessed and reviewed to ensure compliance, identify trends and progress and to achieve continual improvement.

The incidentOn the 31st May 2011 at approx 15.37hrs and whilst the cruise liner Independence of the Seas was berthed at No 2 West on the North Mole, Gibraltar, Tank No 1 caught fire as a result of unauthorised welding on the tank rail. This was followed by the explosion of the adjoining Tank No 2 sending the tank roof into air and landing on the eastside. The welder who at was on the tank roof at the time was severely burnt and rushed to a burns unit in Seville Spain; he later died as a result of his wounds. The fire raged for nearly 15hours after which it burnt itself out. During this period the emergency services trying to extinguish the fire and carry out cooling operations on the other tanks caused a boil over which aggravated the situation as burning product spread throughout the installation and overflowed over the bund wall, polluting the surrounding sea area.

What has been done?On the 2nd of July 2011, and after the Factories Inspector’s investigation was concluded, the installation was handed back to NPRF. A massive cleaning operation was conducted by NPRF installation crew which entailed the removal of waste oils and water from the bund area and jet cleaning tanks, pipelines and floor areas which were restored to nearly original condition considering the amount of damage that had been caused. The tanks have been painted and the undamaged tanks cleaned, all scrap metal has been removed from site together with all cabling and redundant materials.

Tanks cleaning operations commenced on the 8th March on both damaged tanks 1 and 2 which will enable works to be carried out in the near future. An extensive in depth HAZOP and ATEX study was carried out by DHV from Rotterdam which looked at identifying potential hazardous events in relation to our operation and the design of the facilities. At the same the Gibraltar Government and Nature jointly commissioned Parsons Brinckerhoff to conduct a Risk Assessment of Nature’s activity in relation to other activities in the area.This will determine under what conditions we will be allowed to operate in the future if we remain on this site.

What have we learned?The lessons learned from this incident, which can be considered all as areas of continous improvement are various. The lessons learned have been reviewed, discussed and communicated in line with our management system procedures, so we can and will take them into account in future business development and management of change projects.

What are we committed to?We are committed in making our place of work a safe environment for our work force and visitors alike. Improve and build our health and safety culture. Review our operating procedures and evaluate risks and potential incidents and implementing controls to mitigate these risks. Committed to use Best Available Techniques and to work under standards such as ISO 9001, 14001, IPPC and all relevant regulations that fall under our scope. Work closely with the licensing issuing authorities in order to comply with all their requirements and invite them to audit our operations for compliance.Have an up to date Management of Change document and have any changes approved by management. Protect the environment and strive for clean seas.


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AccountabilityMonitoring and measurementAs part of Nature’s management system - which relies on certification in accordance with the ISO 9001 and 14001 standards of our two largest operational units (NPRF and ISD) - procedures have been established, implemented and maintained in order to identify and monitor Nature’s perfor-mance, relevant risks and adherence or compliance with agreed standards, and both local and international legislation. Periodical reviews executed internally, and independent audits by external Certification Bodies (DNV Business Assurance in the Netherlands and SGS Certification in Gibraltar), secure an effective use of those procedures. Identified risks and layers of control need to be reported to the established board committees upon request, without undue delay.

TransparancyThe Nature Group 2011 Annual Report will provide a full insight and transparency into the Group’s performance for the year. In drafting the Annual Report 2011 - also as preparation on future annual reports - the following guidelines and standards have been considered. This has all been completed in accordance with the principles of transparency.- GRI Sustainable Reporting guidelines (references used: 1.1, 2.1-2.5, 2.8, 3.1-3.6, 3.8, 3.11 and 3.12, 4.13-4.14 and a selection of the Environmental, Labor Practices, Society and Economic Reporting Indicators); - ISO 14064 standard series / Greenhouse Gases Protocol;- 2011 Guidelines to Defra/DECC’s Greenhouse Gas Conversion Factors for Company reporting.

Accuracy and MaterialityAlthough we have systems in place to measure and monitor our operational performances in detail, we also used recognised, publically available conversion factors for presenting data calculations in those situations where we’re not able to measure them (yet). The following performance indicators are calculated by using conversion factors:- Electricity, water and paper consumption and the waste produced in our offices in Padstow, UK and Stavanger, Norway, due to the fact both offices are located in jointed business buildings.- Carbon footprint To gain fair presentation and avoid under estimation of our calculated data for our Padstow and Stavanger offices -even do they are considered as non material - we added, on this occasion 10% on to our calculated figures. With exception of the financial data, all measured and/or calculated non-financial data presented in this report are unaudited. Nature Group has the ambition to present verified / unaudited, with exception of the financial data which are audited annually.


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Organisational profileDivision structure of the reporting organisationThis Annual Report 2011 covers Nature’s worldwide in majority controlled facilities, operations and activities.

Nature Group PLC, Jersey, includes Nature Group Trading Ltd - Jersey*and the following operational entities per business line:

MaritimeNature International Slop Disposal BVNature Port Reception Facilities Ltd - GibraltarNature Shipping Agency Ltd - Gibraltar*Nature Environmental Technologies Ltd - UK Crystalwater Navigation Ltd - Malta

Oil & GasNature Oil and Gas AS - Norway

Engineering & IndustryNature Ecoscrub Solutions BV - NetherlandsNature Environmental Solutions Ltd - Jersey* * Trading entities, therefor only financial performances are reported.

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Nature Group plcNature Group plcOrdnance House 31 Pier Road St. Helier / Jersey JE4 8PW

ENGINEERING& INDuSTRY

MARITIME

OIL & GAS

FINANCERevenue of £ 15.051.934

LABOUR81 Employees

ENVIRONMENTEmission of 4.075 ton CO2e

Nature Group is the market leader in handling Marpol and offshore waste, with more than 25 years’ collection and treatment experience. Our ability to process waste at any location – even on remote offshore platforms – puts us at the forefront of a broad paradigm shift in the maritime, oil and gas industries. Based in Rotterdam, Stavanger and Gibraltar, we combine port reception facilities, offshore treatment services and waste treatment technologies in a continuously expanding global network. Each location delivers Nature’s unparalleled service, transparency and innovative treatment of maritime waste.

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Nature International Slop Disposal BV Torontostraat 20, 3197 KN Botlek Rotterdam The Netherlands

Nature International Slop Disposal (NISD) is the leading offshoreand maritime waste collector in the Port of Rotterdam,covering the ARA region (Amsterdam-Rotterdam-Antwerp).NISD holds all relevant maritime and environmental licenses required to collect maritime and offshore waste in the Netherlands and is an official Port Reception Facility. NISD demonstrates its market leadership with the recent delivery of two new double hull slop tankers “Hydrovac10” and “Hydrovac11”. These vessels are equipped with the latest technologies and are revolutionary in their approach to safety and protection of the environment.

Nature Port Reception Facilities Limited Gibraltar 1A, North Mole Road, Western Arm, PO Box 393, Gibraltar

Nature’s Port Reception Facilities Limited (NPRF), headquartered in Gibraltar, operates a treatment and storage facility for marpol waste. After treatment the cleaned water is returned to the sea following the strict standards required by current EU and IMO environmental legislation. The facility gives the marine industry the opportunity to deliver slops to an approved location that is capable of treating waste-water to levels approaching the zero discharge targets set for the Mediterranean and elsewhere.

Nature Shipping Agency Limited – Gibraltar unit 4/5, The Boardwalk, Tradewinds, PO Box 393, Gibraltar

Maritime DivisionWith more than 25 years’ collection and treatment experience, Nature is the market leader in handling wastewater according to Marpol Anexxess I-V. Our safe, environmentally friendly port reception facilities for the oil, marine and processing industries are located in the Netherlands, Norway and Gibraltar


LABOUR68 Employees



MARITIME

OIL & GAS


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Crystalwater Navigation Ltd Malta 10, Timber Wharf, MRS 1443 Marsa, Malta

The new vessel, Crystalwater, is a 2,500 DWT stainless-steel double-hull chemical tanker, capable of transporting large quantities of maritime waste across the open sea swiftly, safely and sustainably. Registered under the Malta flag and fully classed by Lloyd’s Register of Shipping, the Crystalwater was purchased in the Netherlands in November 2011 from previous owners the Clearwater Group.

Nature Environmental Technologies LtdSouth unit, Hawksfield A39St Breock Wadebridge Cornwall PL27 7LR

The principal activity of the company is that of the provision of engineering support services and non-management personnel to projects of the company’s ultimate parent, Nature Group Plc. The company was incorporated in the United Kingdom on 6 March 2010 and commenced trading in July 2010.


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Oil & Gas DivisionOil and gas exploration and production generate considerable volumes of waste, all of which need to be treated properly and in accordance with regulations. For many years, it’s been common practice on offshore installations to ship drilling and production waste ashore – a practice that’s not only risky and time-consuming, but that also comes with a high price-tag.

Nature, however, has a much better solution. Our Compact Treatment Units are able to treat drilling waste and produced water anywhere, whether on or offshore. This means we can treat your waste at the location where it was generated, keeping your platform in production, and reducing your costs and risk. In addition, our CTUs utilise a far more sophisticated method than current standard ‘on-board’ water solutions.


MARITIME

OIL & GAS


LABOUR10 Employees

ENVIRONMENTEmission of 89 ton CO2e

Nature Oil & Gas AS, Slettestrandveien 17, 4032 Stavanger, Norway

The Norwegian waste treatment terminal comprises anintegrated storage and treatment facility for wastewater at the NorSea base in Tananger, operating as SART (SAR TreatmentAS). Wastewater can be received by the SART facility by ship or road tanker.

The facility is located at the main bunkering quay (no. 5) at the NorSea base. From this berth, wastewater is transferred directly to the onshore SART tanks. Stations for bunkering and wet and dry bulk loading operations are also available.


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Engineering & Industry DivisionAs the market leader in collecting and treating maritime waste, it’s little wonder that Nature’s technical skills and expertise are in high demand. We are the foremost provider of technical services and advice on maritime waste logistics, collection and processing, with many grateful customers worldwide. We’re also the proud developers of EcoScrub, a swift, effective and mobile technology for the closed degassing of inland barges and seagoing vessels.

Ecoscrub Solutions BV Torontostraat 20, 3197 KN Botlek Rotterdam The Netherlands

Drawing on Nature’s unique experience and expertise as the market leader in maritime waste treatment, our engineers have also developed a cutting-edge solution for all your maritime odour and emission problems. EcoScrub is a revolutionary ‘closed degassing’ technology for the swift and environmental safe ventilation of inland barges and seagoing vessels. The results are incredible: EcoScrub promises an emission and odour reduction of over 90% on fuel oil.Fully supported by NATURE’s expert in-house logistic services, our Ecoscrub mobile applications can be transported and installed at any location, 24 hours a day, seven days a week.


MARITIME

OIL & GAS


LABOUR3 Employees


Nature Environmental Solutions Ltd.Ordnance House 31 Pier Road St. Helier / Jersey JE4 8PW

Nature Environmental Solutions (NESL) is the engineering power house within the Nature Group that designs, builds and maintains maritime and offshore waste reception and processing facilities.The NESL team consists of several process analysts, engineers, environmental compliance officers and project managers with a well developed background in the maritime and/or oil & gas industry. Nature Group has all experience, knowledge and technology for treating complex wastewaters, and with over 25 years of experience, we can proudly say “we are the leading company in this industry”


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Product and servicesWorldwide Nature Group operations involve a diversity of activities including the collection of maritime (Marpol I – V) and offshore wastes and the subsequent treatment of the waste and recovery of oil. The land-based port reception facilities receive waste either directly or via our fleet of collection vessels. Incoming waste is processed to a point where the water can be released back to the sea (meeting specific discharge licence standards) and recovered oil is treated, stored and then distributed. Additionally, Nature provides local services for the collection and treatment of commercial and domestic waste oils (typically by road). Nature offers offshore options for the treatment of drilling wastes. By means of compact treatment units (CTUs), deployed for location on drilling platforms, the risk and cost of collecting and transporting drilling wastes is no longer an issue.Nature also operates design and development offices. These centres are constantly working towards improved, sustainable solutions for the recovery and recycling of end of pipe products, providing solutions for odour and emission problems in the maritime industry, as well as designing, building and maintaining maritime and offshore waste reception and processing facilities.

Treatment of drilling wasteDrilling operations generate a considerable volume of waste that requires proper treatment. The process of collecting and shipping the waste for processing is risky, time consuming and carries a high price tag. Nature has a big green heart that aims for zero discharge of pollutants to the sea. Therefore Nature has the solution. We are the global pioneers in offering solutions that enable the industry to process the generated waste on the drilling platform itself, no matter where the location. Our technology reduces the oil discharge in our treated water to less than <5 ppm. Due to our local treatment solution we are able to reduce treatment costs by 40-70%, and also reduce the amount of hazardous waste that has to be transported to shore. We can also recover the maximum amount of oil on the platform itself while using green class, patented chemicals. These are just a few key advantages that Nature can provide to our partners. We have the perfect solution for all your drilling and offshore waste treatment needs. Clean Seas your choice our ambition!

Ecoscrub solutionsWe have the solution for all your maritime pollution and emission problems. Through a revolutionary technology, Ecoscrub manufactured permanent and mobile applications for closed degassing of inland barges and seagoing vessels. Our technology proves its effectiveness with an emission and odour reduction of over 90% on fuel oil. We can provide you with a practical on-site demonstration to show our expertise and reduction technology. Therefore we can say “Nature always finds a solution’’.


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StakeholdersStakeholders are those groups who affect and/or could be affected by an organisation’s activities, products or services and associated performance. This definition does not, therefore, include all those who may have knowledge of or views about the organization (AA1000 Stakeholder Management Engagement). Nature Group plc does have many (local and international) stakeholders, each with distinct types and levels of involvement, and often with diverse and sometimes conflicting interests and concerns To ensure communication with relevant partners, they must first be identified and logged by top management. Last December 2011 the first diagrams have been made to identify each (group of) stakeholders (next step is to identify their interest and to estimate their influences systematically). The identification of the stakeholders/partners was and will remain subject to periodic review and regular meetings.

Stakeholder Management

Employees

Evironmental Agency

Partners

Shareholders

Customers

LocalGovernment

Legislators

Suppliers

localSociety

Neighbors

Board

SocialMedia

LocalMedia

Societyat large

NGO’s

GlobalMedia

MarketPlayers

Competitors

FinancialInstitutions


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Note: Due to the fact that 2011 is Nature Group’s first full business year historical data is not available for comparison.

m3 32.153 27.377 4.776 n/aWater dischargedm3 13.538 13.528 0 n/aOil recycled

ton 183.549 178.255 5.294

Maritime Oil & Gas Engineering and Industry

Environmental

Energy consumption

litres 592.089 592.089 n/a n/aGas oil by vesselslitres 28.769 26.812 457 1500Gas oil for transportation vehicleskWh 257.872 209.102 36.179 12.591Electricitym3 4.672 4.557 n/a 115Gasm3 1.948 1.842 83 24Waterm3 217 217 n/a n/aGas oil (process)Kg 10.622 7.824 1.720 1.118Waste produced by own activities

Kg 1.047 668 312 68Paper consumption# 5 5 0 0Incidents/spills

# 4 4Fines and sanctions (e.g. suspensions, non-compliances)Mobility

# 335 260 31 45Business flightskm 351.982 298.906 19.571 33.506Travelled by carkm 5.500 250 500 250Public transportation

tonCO2e 4.075 2.925 89 1.063CO2 emissions

tonCO2e 2.539 2.519 13 9Process related emissions

tonCO2e 574 406 76 92Mobility (business flights & mainly commuter traffic)

tonCO2e 962 n/a n/a 962Projects

0 0

Labour Practices

To guarantee the well-being of our employees, Nature has implemented initiatives to further develop and improve the Human Resource policies. To date, the key activities of our HR representatives are generating one central health, safety and welfare service for the Group as whole. Other methods to monitor and improve employees’ health will be continuously explored.

# 81 68 10 3Number of employees# 18 15 3 0New staff% 7% 3% 10% 0%Turnover rate% 10% 9% 0% 24%Part timers% 10% 10% 0% 0%Female workers% 43% 32% 80% 0%Employees trained# 313 176 132 5Training hours

Employees covered by collective agreements% 47% 40% 100% 0%Pension% 47% 40%Medical insurance% 100% 100% 100% 100%Others (Business Travel etc)% 3,2% 3,5% 1,5% 3,9%Absence through illness# 7 7 0 0Safety incidents# 1 1 0 0Injured due to operations# 1 1 0 0Died due to operations

100% 0%

Society

Several of Nature Group employees are volunteering at sporting clubs and other public initiatives and/or organisations. Nature as a Group recognizes it is part of both the international and local communities in which it is operating as a consequence involvement in these communities forms a key aspect of Nature’s business. If opportune, cooperation and partnership with other organisations (e.g. knowledge centers, universities and NGO’s) will be instituted in order to create the most added value. Finally, Nature will continue its current donations and investments in the community.

# 4 3 1 0Memberships/partnership

# 6 4 2 0Initiatives / sponsoring

NATUREGROUP

PLC

DIVISIONS

n/aCollected/treated from seagoing and inlandvessels and rigs (total).

Reporting Indicators 2011Integrated Report 2011

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ProjectsOperations on the Ormen Lange FieldOrmen Lange is a natural gas field on the Norwegian continental shelf. It is situated 120 kilometres northwest of Kristiansund, where seabed depths vary between 800 and 1,100. The reservoir is approximately 40 kilometres long and 8 kilometers wide, and lies about 3,000 metres below sea level. Recoverable gas reserves are estimated to be 300 billion cubic meters. Extreme natural conditions at the site (subzero temperatures part of the year, stormy seas, strong underwater currents, uneven seabed) put great demands on the technology used in the project.

West Navigator Drillship, Seadrill AS

Operations on the Tyrihans FieldTyrihans is located on the Haltenbank in the Norwegian Sea, 35km southeast of the Kristin field. The discovery comprises two structures, Tyrihans North and Tyrihans South. Drilling in the Tyrihans field began in April 2008 and it was not until 8 July 2009 that the production had commenced. The production at the field is expected to last until 2029. Recoverable reserves are put at roughly 186 million barrels of oil and condensate, and 41.5 million cubic metres of rich gas. Statoil has a 58.84% interest. Its partners are Total E&P Norge with 23.18%, Eni Norge 6.23% and Mobil Development Norway 11.75%.

Transocean Arctic, Statoil AS

The treatment systems of both above mentioned projects consists of 7 steps:1. Inlet – Flow control.2. Mixer – Coagulation and Flocculation processes using patented Nature Chemical (Green Class)3. Treatment chambers – Dissolved air in water is introduced into the chambers for flotation of the flocculated particles. Sludge is skimmed of the top and discharged to sludge skip.4. Discharge balance tank – Level control by mechanical weir.5. Barrier 1 – A turbidity meter measures the purity of the water, this controls an automated valve if high turbidity occurs.6. Barrier 2 – Oil adsorbing filter elements clog up if oil enters into filters.7. Discharge – Discharge pump to sea.

Operations on the Karachaganak Oil FieldKarachaganak Field is a gas condensate field in Kazakhstan. It is located about 150 km east from the city of Oral in the northwest of Kazakhstan. It is estimated to contain 1.2 trillion cubic metres of gas and one billion tonnes of liquid condensate and crude oil. The exploration and production is done under a partnership company known as Karachaganak Petroleum Operating (KPO) where BG Group and ENI are joint operators. Chevron and Lukoil also owning a part in this venture.

Karachaganak Oil Field Kazachstan

The treatment system consists of 7 steps:1. Inlet – Flow control2. Mixer – Coagulation and Flocculation processes using patented Nature Chemical (Green Class)3. Treatment chambers – Dissolved air in water is introduced into the chambers for flotation of the flocculated particles. Sludge is skimmed of the top and discharged to sludge skip.4. Discharge balance tank – Level control by mechanical weir


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Operations on the Dry-dock in Duqm OmanThe project for the establishment of a port waste reception and processing facility for the Omani Government in one of the country’s most important infrastructural projects has been an intense challenge for The Nature Group. The harsh conditions in this remote area, five hours driving from the capital of Oman, pushed our team to put all its talent on the table.Therefore we are very satisfied that eventually the project will be delivered within the criteria set. The final training and hand-over is planned to be finished in the second quarter of 2012.

The project is a major milestone for The Nature Group: we proved to ourselves and the rest of the world that we are the market leader by doing this job beyond expectations. The exposure because of this project, especially in the Middle East region, has been very positive. The market recognizes our company as the one setting the standard, putting us in the forefront in new maritime infrastructural investments throughout The Middle East.

The Dry-Dock Project in Duqm, Oman

5. Barrier 1 – A turbidity meter measures the purity of the water, this controls a automated valve if high turbidity occurs.6. Barrier 2 – Oil adsorbing filter elements clog up if oil enters into filters.7. Discharge – Discharge pump to the reinjection system


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Nature Group plc (Head office) Ordnance House 31 Pier Road St. Helier / Jersey JE4 8PW E-mail: [email protected]

Clean seas. Your choice. Our mission.

ngrp

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Date post:	18-Feb-2016
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