Saint-Gobain's industrial operations pose relatively few technological risks. For the most part they process mineral materials and require very few explosive or environmentally hazardous substances.

 
LIMITED AND CONTROLLED INDUSTRIAL RISKS
At December 31, 2006, eight of the Group’s Europe-based sites were classified in accordance with the “Seveso” category, as defined by the European Directive of December 9, 1996 on "controlling risks related to major accidents involving hazardous substances." The Directive calls for specific legislation to regulate facilities deemed to involve particular industrial risks. Classification is not based on the sites manufacturing processes, which are free of major industrial risks, but on their storage of hazardous materials.

Outside the European Union, the Group has an other site subject to regulations equivalent to the Seveso Directive: the Lake Charles site in the United States.

Most of the other industrial facilities are subject to permit requirements (administrative authorization in France) and must first and foremost comply with the terms of their permit.

 
OPTIMIZING CONSUMPTION OF MATERIALS
One of the key focuses of the Group's environmental policy is to make better use of materials by minimizing consumption of natural materials and promoting the recycling and reuse of waste products.

• Controlling consumption of raw materials
Glass businesses mainly decrease their consumption of raw materials by introducing cullet in their processes. In 2006, the Glass businesses consumed 14 million metric tons of new materials and 7.4 million metric tons of cullet (produced both in-house and external sources). Glass melted from cullet (produced both in-house and externally) accounted for 49% of the Group's glass production.

The Pipe Division uses two types of melting processes. In the first, known as "primary smelting", cast iron is obtained in blast furnaces, from iron ore. In the second process, known as "secondary smelting", the cast iron is produced from scrap metal and recovered cast iron, melted in cupola furnaces or less powerful furnaces.

• Minimizing waste and improving its recycling or reuse
Group companies produce three types of waste:
For several businesses, production scrap can be returned into the manufacturing cycle fairly easily, since glass and cast iron are infinitely recyclable materials.
Non-hazardous commercial waste is increasingly recycled or reused. Used sand from foundries serves in cement kilns, slag from blast furnaces or cupola furnaces is used as public works filler material, etc.
The main types of hazardous waste produced are the following:
  . Dust resulting from the melting of glass, made up of sulphates and possibly containing heavy metals, is collected at the bottom of regenerators or in furnace flues, as well as in fume filters.
Waste from the demolition of furnaces, composed principally of used refractories.

When such waste is not recyclable, it is disposed of by specialized professionals that also handle paints, solvents or used motor oils.

LIMITING ATMOSPHERIC EMISSIONS
A priority focus of Saint-Gobain's environmental policy for the Glass businesses and the Pipe Division is to minimize carbon dioxide (CO2) emissions and to reduce the energy consumption of furnaces. In line with its membership of the French organization AERES, the Association of Companies for Reducing the Greenhouse Effect, the Group has undertaken a voluntary commitment to reduce its CO2 emissions per ton of manufactured product by 15% by 2010 in its Glass sector, against a 1990 baseline.

In 2006, Saint-Gobain emitted 14.7 million metric tons of CO2, of which 7.1 million were generated in Europe, and 6.47 million fell under the quota system. Emissions from glass furnaces, which today represent an average of 605 kg of CO2 per metric ton produced. Emissions per ton produced can vary according to the type of glass manufactured, from 503 kg in Packaging to 1,010 kg in Reinforcements.

Means of reducing the CO2 emissions:
- including recycled materials in production processes
- reduce the energy consumption.

Additionally, the Glass businesses and the Pipe Division have for several years taken specific steps to limit emissions of sulfur oxides (SOx) which result from the burning of fuel oil and coke, and nitrous oxides (NOx) that are produced through high-temperature oxidation of combustion air:
- the use of higher quality fuel oil or coal
- reducing their energy consumption
- setting up desulfuring processes.

PURCHASES OF TROPICAL WOOD
The Building Distribution Sector purchased over 3,5 million cubic meters of wood in 2006, of which tropical woods account for less than 6%. Several of the Sector's companies, among others Saint-Gobain Building Distribution UK (SGBD-UK), Lapeyre and Point P, have embarked on policies based on controlling their purchases.

At December 31, 2006, Lapeyre had three factories certified by the FSC (Forest Stewardship Council) and one by the PEFC (Pan-European Forest Certification Council).

For more details, consult the chapter Sustainable development - human resources in the annual report and the booklet Building our environment, together.