Strategic report
Governance
Financial statements
61 OCU Group Annual report and financial statements 2026
Environment continued
Using materials responsibly
Priorities for the next financial year • continue developing sustainability plans and data-sharing initiatives with key suppliers; • collaborate with suppliers to identify, trial and promote more sustainable products and technologies; • increase the use of recycled, low‑embodied‑carbon and responsibly sourced materials across construction activities; and • continue to optimise digital street works compliance processes and use data insights to improve environmental performance and waste reduction outcomes.
Repurposing road furniture: Our road furniture recycling program continues to divert plastic materials from landfill and support circular economy outcomes. During FY26, 56.4 tonnes of traffic management road furniture was diverted from landfill, delivering an estimated carbon saving of 131.8 tCO 2 e while enabling recovered materials to be reprocessed into new products. This is more than double our previous year's achievement. Plastic recycling: OCU introduced an innovative recycling solution for high-density polyethylene (HDPE) waste generated during the installation of 27.5 km of trunk mains infrastructure. HDPE pipe offcuts and shavings produced during welding, cutting and installation activities cannot be reused on site and traditionally present significant disposal challenges. To address this, OCU partnered with specialist recycler D&C Recycling to recover and process all HDPE waste generated by the project. The material is shredded into plastic chips and reintroduced into the manufacturing process for new plastic pipe products, supporting circular material use and reducing waste sent for disposal. In FY25 and FY26 15.1 tonnes of pipe offcuts were recycled with approximately 65.4 kgCO 2 e of carbon saved. Supplier engagement and sustainability data: Improving supply chain transparency remains a key priority. During FY26, we continued to strengthen engagement with suppliers to obtain more comprehensive environmental and sustainability data, enabling more accurate reporting, better-informed decision-making and greater visibility of material-related impacts across our value chain.
Overview OCU seeks to minimise waste, improve resource efficiency and reduce the impacts of sourcing, using and disposing of materials. Priorities include circularity, waste segregation, recycling, digital compliance and better supply chain transparency. Key achievements Responsible waste management: OCU continues to divert the vast majority of non‑hazardous waste from landfill (99%), supported by robust waste management processes and increased recycling across our operations. During FY26, we further embedded recycling practices across our facilities in line with the UK’s Simpler Recycling legislation, helping standardise waste segregation and improve resource recovery across the business. Digital Street Works UK Material Classification Protocol: During FY26, OCU successfully implemented a market-leading digital solution to comply with the new Street Works UK Material Classification Protocol. This time‑efficient, auditable solution has led to 50,733 street works undergoing AI risk assessments and digital waste classifications in line with the protocol.
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