Climate Change Agreement

James Cropper PLC is a signatory to the paper sector Climate Change Agreement (“CCA”) negotiated with DEFRA by the Confederation of Paper Industries.  Under the Agreement the Group receives partial exemption from the Climate Change Levy on its natural gas consumption, an 80% discount against the Levy attributable to imported electricity and exemption from Business Rates otherwise chargeable on our CHP plant.  In return, the Group is committed to a series of increasingly stringent energy use targets that take effect over milestone target periods, every other year, for the 10-year term of the Agreement. To date the Group has now exceeded all three of its CCA milestones targets for specific energy use per tonne of saleable product.