Table of Contents
Kennecott Land exists to build enduring communities on Salt Lake Valley’s West Bench.
We do this in a way that protects and strengthens what matters most to our community: quality
education, a healthy and renewable environment, and a vibrant local economy. By doing this well,
we honor our commitment to the community and our corporate shareholders.
Kennecott Land Mission Statement
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S U S TA I N A B L E D E V E L O P M E N T
AT K E N N E C OT T L A N D
E N V I R O N M E N TA L
S T E WA R D S H I P
S O C I A L W E L L B E I N G
E C O N O M I C P RO S P E R I T Y
G O V E R N A N C E
2 0 0 7 S U S TA I N A B I L I T Y S C O R E C A R D 21
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On the cover: Jacob Lawrence, a lifelong resident of Daybreak, plays with his new truck in one of the many playgrounds and parks in the community.
As this company’s new president –– and a new homeowner at
Kennecott Land’s Daybreak community –– I care very much about what
goes on here. And I’m sure you do too, if you’re taking the time to
read our Sustainable Development Report.That’s why I’m pleased
to share with fellow stakeholders all the changes, accomplishments and
challenges that made up 2007. One change, of course, was Peter McMahon’s return to our parent company,
Rio Tinto, after six years as president of Kennecott Land. I promise to build on Peter’s forward-thinking
leadership as we move into the next phase of our work here.
It was leadership, actually, that drew me to Kennecott Land. For years I’ve kept my eye on this company ––
the way it not only embraces sustainable practices but takes them to a new level. Since I came here in July
2007, I’ve seen firsthand the passion Kennecott Land employees bring to their work. Even more impressive,
though, is how this drive to go above and beyond creates a profound ripple effect in the community. It
challenges builders and developers to improve their own sustainable practices. It inspires individuals to act,
too, from buying wind power to recycling more consistently. Everyone gets involved, and our community
and environment are better for it.
Last year’s report was the story of how Kennecott Land and its first
development, Daybreak, came to be. This year, it’s the story of how
we’re working to make Daybreak and future communities even better,
including the times we’ve succeeded and the times we’ve headed
back to the drawing board. The downturn in the housing market did
make 2007 a challenge, but as you’ll see, our commitment to
sustainability has not wavered, but actually strengthened.
Please tell us what you think of this report by filling out a brief survey
at kennecottland.com. As always, we welcome your thoughts on how
we’re doing, because we know that this is your community too.
Don Whyte
President, Kennecott Land
President’s Message
Defining Sustainable
Development
For us, sustainable development means
taking the long view. It’s about meeting
the needs of today’s generation without
compromising the needs of tomorrow’s.
At Kennecott Land, every major business
decision must pass a three-part litmus
test: Is it sustainable environmentally,
socially and economically? These “three
pillars” of sustainable development,
guided by strong governance, form the
basis of everything we do.
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Just a few years ago, it was hard to imagine the now-ordinary sights and
sounds of Daybreak. Couples paddling across Oquirrh Lake at sunset.
Neighbors trading squash for eggplant in the community garden. The bursts
of happy shouts and laughter that signal recess at Daybreak Elementary.
But thinking about the future is what sustainable development is all about.
Daybreak has been carefully planned, not just to enrich people’s lives now
with beautiful land, plentiful water and clean air, but also to ensure that
future generations may do the same. At completion, Daybreak will include
approximately 20,000 residential units, making it the largest master-planned
community in the history of Utah. With a project of this magnitude comes
responsibility to our fellow Utahns, and ultimately, the planet. It also
comes with the opportunity to inspire others to take the long view and
look forward to a more sustainable future.
Daybreak at a glance
The past year brought steady growth to Daybreak, increasing the number
of home closings from 980 to 1,479. Those numbers earned Daybreak
its rank as 2007’s fastest growing community in the Salt Lake Valley, while
underscoring the rise in public appreciation for sustainable communities.
Here’s a quick look at Daybreak’s most notable planned features:
• Homes with the variety and character of Salt Lake City’s original neighborhoods, but built to Energy Star® guidelines
• More than 1,000 acres designated for water-wise parks and open spaces• Oquirrh Lake, a 60-acre source of innovative water conservation and
recreation opportunities• Neighborhood schools and ongoing educational programs to promote
lifelong learning• Retail areas and commercial parks within the neighborhood to reduce
automobile usage and build a sense of community• Light rail transit scheduled to start providing service in 2010
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Kennecott Utah Copper
and Kennecott Land
Although the focus varies from above ground
to below, responsible land stewardship is what
connects the Kennecott companies.
The story of both companies begins with
the creation of the Utah Copper Company in
1903. Daniel Jackling formed the large-scale
mining company that was the birth of Utah’s
rich mining history and the beginning of
what is now known as the Bingham Canyon
Mine.Today, Kennecott Utah Copper (KUC)
is a mining, smelting and refining company
committed to integrating sustainable
development into every facet of its business.
KUC is the second largest copper producer
in the U.S. and employs 1,800 people.
Rio Tinto, a world leader in the responsible
discovery, mining and processing of the
earth’s minerals, acquired Kennecott Utah
Copper in 1989. Aligned with Rio Tinto’s
long-term approach to conducting business,
KUC began exploring the idea of using the
company’s extensive land holdings to
develop communities. In 2001, Kennecott
Land was established with the goal of creating
enduring and sustainable communities on
Salt Lake Valley’s West Bench. Kennecott Land
is currently based in Murray, Utah, and
employs 55 people.
The West Bench Master Plan,which spans 50-75 years, featurestransit centers near homes, jobsfor local residents, nearby schools,and neighborhoods with openspace connected by miles andmiles of trails and parks.
Kennecott Land and Daybreak: Overview
Beyond Daybreak: The West Bench Master Plan
Partnership with the community is at the heart of the West Bench Master
Plan. Prior to 2007, Kennecott Land collaborated with Salt Lake County and
more than 100 community leaders to craft this common vision for the West
Bench. The Plan provides for a series of master planned communities ––
similar to Daybreak in terms of sustainable development practices, but varying
in character, size and style.
In 2007, the focus of the collaborative team grew more specific, establishing
clear processes to guide the implementation of the vision. Working together
with our colleagues at the Salt Lake County Planning and Development
Services Division, we continued drafting ordinances to ensure that practices
align with agreed-upon principles.
Strong partnerships led to solid progress in the arena of transportation, too.
In 2007, the Utah Transit Authority (UTA) received a record of decision from
the Federal Transportation Administration to provide federal funding for light
rail to Daybreak. UTA selected a contractor, and
construction is slated to begin in Spring 2008.
In 2010, trains will run daily between
Daybreak and Salt Lake City.
The West Bench Master Plan is now included in
regional infrastructure plans with groups like Envision
Utah,The Wasatch Front Regional Council and UTA.
Although the approach to seek full entitlement with
the county has changed, the vision for the land is
intact. The change in approach puts the remaining
feasibility studies before entitlement so that our sister
companies, Kennecott Utah Copper and Kennecott
Exploration, can complete mining-related studies
in the Oquirrh Mountains.These results will
provide important detail on the protection of
mining zones and eventual creation
of residential zones.
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Six Core Concepts of the West Bench Master Plan
Economic Growth – Provide for a balanced mix of jobs and housing in andaround mixed-use centers.
Hierarchy of Centers – Create a richmix of land uses that will provide a wide variety of housing choices and commercial andemployment opportunities. These will includeurban, town, village and neighborhood centers.
Parks Network – Provide regional,community and neighborhood parks linked by a network of trails, paths and roads.
Natural Resources – Provide a balancebetween land development, conservation andopen space. Natural areas will be managed tomaintain greenways, habitats, wildlife corridorsand biodiversity.
Quality Neighborhoods – Create neighborhoods around schools, parks and community centers and design these neighborhoods for healthy living, safety and beauty.
Transit Boulevard – Provide a “commonthread” to link communities through highcapacity bus transit, light rail or proper roadcapacity that will serve the needs of the community.
2008 MASTER PLAN GOALS
• Conduct feasibility studies in the OquirrhMountains in partnership with KennecottUtah Copper and Kennecott Exploration.
• Continue exploring near-term projects for the land.
• Begin a joint study with UTA and Salt LakeCounty regarding transportation projectsfor future communities and the west sideof the Salt Lake Valley as a whole
“Kennecott Land is very progressive.Their actions in sustainable developmentreflect the heart and soul of the company, and the values of Salt LakeCounty’s government and citizens.”
Peter CorroonMayor of Salt Lake County
In 2010, TRAX trains will run every15 minutes between Salt Lake Cityand two Daybreak stations.
U of UDowntown
900 South
Ball Park1300 South
Central Point2100 South
Millcreek3300 South
Meadowbrook3800 South
Murray North4400 South
Murray Central5200 South
Fashion Place6400 South
Midvale Fort Union7200 South
Midvale Center7800 South
Historic Sandy8000 South
Sandy Civic Center10000 South
DaybreakDaybreak South
Mid Jordan Light Rail Line
Daybreak North
5600 West
4800 West
Bangerter
2700 West
GardnerVillage
BinghamJunction
Redwood
Environmental Stewardship
At Kennecott Land, our goal is not to skate by, meeting only minimum environmental requirements. Our goal is to raise the bar
each year for ourselves and, by example, those with whom we come into contact. It is our hope that we not only challenge
ourselves to become better environmental stewards, but our contractors, builders, vendors and homeowners too.
ENERGY
Our approach to energy addresses both the present and the future.We work diligently to conserve energy within the
company and by influencing our builders and residents as well. At the same time, we’re actively addressing the future by
pursuing renewable energy solutions.
Alternative energy sources
In June, Kennecott Land became a Rocky Mountain Power Blue
Sky Visionary Partner by committing to buy enough renewable
energy to cover all of our corporate electricity use. Kennecott
Land then challenged Daybreak residents to join us, offering to
match for one year the renewable energy purchases of the first
400 households to sign up. By the end of 2007, 115 residents
had joined, reducing carbon dioxide output by 2,730 tons per
year, the equivalent of taking 468 passenger cars off the road.
Energy Star…the sequel
Daybreak was the first Utah community to require every home to be built to the Environmental Protection Agency’s (EPA)
Energy Star guidelines, which require higher home energy efficiency than typical building codes. Because all of our builders
We prevent, or otherwise minimize
or mitigate the potential harmful
environmental impacts of our
operations. This includes preventing
pollution, conserving natural
resources and preserving open spaces.
Don Whyte, flanked by former SLC Mayor RockyAnderson, announces Kennecott Land’s participation in the Solar America Cities partnership. KL is the onlydeveloper participating in all 13 designated U.S. cities.
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ELECTRICITY0.55
0.50
.045
.040
.035
.030Daybreak Comparison
Average monthly electricity useper household, by communityin kilowatts
Comparison communitiesare located in South Jordan.
adhere to these guidelines, our homes use 12% less energy on average than
a typical new home in the same area. Even so, Kennecott Land has made the
requirement more rigorous. Starting in 2008 with our third village, every
home will go through a full Energy Star inspection, instead of one out of
every seven homes as required by the national Energy Star program. For the
villages to follow, we plan to establish an even more comprehensive home
Sustainable Development Assurance Program.
Energy-smart partnerships
Another area where Kennecott Land is striving to go above and beyond is
in partnerships. Salt Lake is one of 13 cities nationwide to receive funding as
part of Solar America Cities –– a program that promotes increased use of
solar-powered technologies. Kennecott Land is the only developer participating
in any of the 13 city projects. The Solar Salt Lake City project is a partnership
between Salt Lake City, Salt Lake County, Rocky Mountain Power, Utah Clean
Energy and Kennecott Land. The project aims to increase the use of solar
energy throughout the valley, through the use of photovoltaic panels,
concentrating solar power, and solar water/air heating. Daybreak’s new
Corporate Center will use solar panels to supply part of its energy needs.
Kennecott Land is also actively exploring ways to use solar power in the
residential and commercial sectors of our future communities.
Another new partnership is with The Climate Registry, an organization that
addresses climate change by measuring, tracking and verifying greenhouse
gas emissions. Kennecott Land joined the Registry at the end of 2007. As a
founding member, we will start reporting emissions for 2008 in 2009.
WATER15,000
14,500
14,000
13,500
13,000
12,500Daybreak Comparison
Average monthly water use per household, by communityin gallons.
Pavilion host Janie Okuno and Daybreakresident Keila Mower encourged otherresidents to sign up for Blue Sky Power.It didn’t take much coaxing.
“It’s easy to feel overwhelmed, like ‘what can I do?’
when it comes to a big issue like global warming.
Living here is a really simple way to help.”
Keila MowerResident
Resorce Consumption
NATURAL GAS1.2
1.1
1.0
.9
.8
.7Daybreak Comparison
Average monthly natural gas useper square foot, by community
WATER MANAGEMENT AND OPEN SPACE
One of the most progressive features of Daybreak’s design is its ability to
retain all storm water on-site up to and including a 100-year storm (2.8 inches
in 24 hours) –– thanks to collection areas like the wetlands adjacent to Oquirrh
Lake, park basins and other open spaces.This system reduces runoff-related
pollution, prevents flooding from occurring downstream, and helps to
recharge the local aquifer.
Now we know for certain that the system
works: In August, two back-to-back 80-year
storms drenched the south end of Salt
Lake Valley. Despite the double hit,
Daybreak’s system absorbed the water
exactly as planned. Unfortunately, a handful
of homes experienced water damage from
the runoff that came from undeveloped
fields outside the community. In the spirit
of neighborliness, we assisted with cleanup
and took steps to avoid future runoff
issues by adding berms, retention ponds
and trenches in several areas.
Irrigation education
At Daybreak’s Community Association presentations, residents learned about
a variety of water-wise practices.We encouraged homeowners to visit
and learn from the nine sod test plots we created on the eastern edge
of the property. As a part of our ongoing research in sustainable
development, these 4 feet x 25 feet plots of grass were each watered,
mowed and fertilized at different rates.Their response to the varying
treatment is a tangible and memorable way to demonstrate best practices
for residents. (Notably, the plots watered a mere 22 inches per year
were as green as those watered at the state average of 51 inches.)
We’re also testing a state-of-the-art, zero-runoff irrigation
system for parking strips. In addition, we implemented a new
policy in which home sites bigger than 5,000 square feet
must have an evapotranspiration controller –– an electronic device that
irrigates according to current weather conditions, preventing unnecessary
watering in resident’s yards.
Environmental Stewardship - continued
Jeff Burnett gets ready togo fishing at Oquirrh Lake.
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Lessons from the Lake
We’ve seen Oquirrh Lake become a
beautiful gathering place for the
community. We’ve also seen the need
for some adjustments. Vegetation
beside the lake was getting trampled
from overuse, so we added fishing
beaches and places to row boats up
to shore. New plants requiring less
maintenance are now being used,
additional trees will provide a much-
needed canopy on hot summer days,
and the bumper crop of weeds within
the lake was mitigated by the natural
–– and surprisingly simple –– method
of dropping hay bales
into the water.
Jeff Haws demonstratesthe use of an evapo-transpiration controller.
Water-wise planting
Landscaping at Daybreak is water-wise to begin with, but we’re looking for
ways to take it further. We’re testing new, less thirsty grasses for parks and
lawns. We’re transitioning to easier-to-maintain native flowers and grasses
in open spaces. And we’re exploring the idea of growing our own sod
and trees. Having our own sod farm would help control dust, and growing
our own trees would save the energy used in transporting them from
distant locations.
What’s new in open space
Seven new parks; 51 more acres of open space; four more miles of trails,
pathways and sidewalks; 250,000 fish; and 5,400 trees.That puts us at 8,600
of the 100,000 trees we’ve committed to plant at Daybreak. Additionally,
residents continue to plant even more.
Out of Daybreak’s 1,000 acres of planned parks and open spaces, 200 acres
will be gradually transferred to South Jordan City. In 2007, we modified our
agreements with the city to address the transfer process and management
practices. Collaborating with the city, we crafted an agreement that will
provide continued, sustainable management of these spaces.
LEADERSHIP IN ENERGY AND ENVIRONMENTAL
DESIGN (LEED)
Created by the United States Green Building Council (USGBC), the LEED
Green Building Rating System uses independent, third-party verification
to certify that a building project meets the highest green building design
and construction measures.There are many advantages to building to these
standards. LEED-certified buildings conserve energy and water, reduce
greenhouse gas emissions, and are healthier and safer for occupants.They
also have lower operating costs and increased asset value.
Remediation Closure
Due to impact from previous mining
activities, some sections of the
Daybreak site required soil remediation
to allow for residential development.
Remediation began in the 1990s under
the oversight of the EPA and Utah
State Department of Environmental
Quality, and was completed at the
beginning of 2007. Final approval of the
remediation work was obtained in
December of 2007. These cleanup
efforts were profiled in an EPA case
study, citing Kennecott’s “innovative
thinking…combined with a cooperative
approach to create a safe environment
for redevelopment.” Daybreak’s
Environmental History is posted on
the Kennecott Land website.
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“It’s rare to see a community step up the
way Daybreak has.They’re influencing
the way construction happens in the rest
of the market, too.”
Sam RashkinNational Director of the EPA’s Energy Star for Homes Program
Kennecott Land and Brigham YoungUniversity are working together to analyze test plots of grass.Each plot is watered and mowed atdifferent frequencies and levels todetermine the most drought-tolerantseed mixture for our climate.
Sights set on new LEED certifications
Earning a Silver LEED certification for the Daybreak Community Center
and Elementary School in 2006 inspired us to aim high again. Several
large projects now under construction are being built to LEED
standards.The Daybreak Village Center will offer retail shops, restaurants,
housing and office space. One of the buildings in the Village Center,
the Daybreak Corporate Center, opening in 2008, will provide office
space for all of Rio Tinto’s Salt Lake Valley business units and space for
other businesses too. The Daybreak Commerce Park will provide
industrial warehousing for Kennecott Utah Copper.
A related and very exciting development is Kennecott Land’s selection
by USGBC to participate in the LEED for Neighborhood Development
pilot program.The goal of this program is to develop environmentally
responsible and sustainable standards for neighborhood design. Our
participation will help us as we plan future villages in Daybreak and on
the West Bench.
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Environmental Indicators Summary
Indicator
Construction recycling rate
Average residential water consumption
Operational greenhouse gas emissions
Noise complaints
Vibration complaints
Regulatory citations
Regulatory fines
Units
% of recycled waste *
gal/home/ month
tons of CO2 equivalent /year **
# of stakeholder complaints
# of stakeholder complaints
#
$
2005
55.38
no data available
39,873
5
32
0
0
2006
76.80
14,800
23,977
0
3
0
0
2007
76.00
13,849
18,554
3
0
0
0
* Approximate values obtained from the recyclable waste collection company and based on total tons.** Approximate values, based on diesel consumption in heavy construction equipment.
Environmental Stewardship - continued
2007 Sustainable
Development Awards
Hats off to this year’s winners!
In the builder and contractor
categories, Rainey Homes, Nolte
Engineering and ValleyCrest
Landscape Development were
honored for outstanding
performance in sustainability.
We rewarded similar efforts
within our company with quarterly
awards. Around 20 employees were
recognized for their contributions,
either at work or at home.
RECYCLING AND REUSE OF MATERIALS
Continuing a practice that began in 2004, our builders and contractors
consistently recycle more than half of all their construction waste.
Whenever possible, we use or reuse materials already on site –– crushing
old road base and rocks to create new road material and gravel or using
rock from the Bingham Canyon Mine to line Oquirrh Lake.These practices
save money and reduce the greenhouse gas emissions that occur from
transport in diesel-burning trucks.
Community Recycling
Although South Jordan City has curbside recycling pickup, we formed a
volunteer committee to encourage greater resident participation at
Daybreak and throughout the entire city. The committee helped educate
residents through Daybreak Homeowners Association presentations,
articles in newsletters, and materials that remind residents which items are
recyclable. At one community event, children created sculptures from
recyclables during an art competition. To celebrate “America Recycles
Day” in November, we hosted a temporary glass recycling drop-off point
at Daybreak, which was greeted very enthusiastically by residents. We
plan to schedule more drop-offs for other materials, in collaboration with
South Jordan City. Plans are also underway to launch a children’s recycling
education program in 2008.
Office Recycling
Under the heading “practice what you preach,” we improved our own
office’s recycling practices this year. A volunteer committee launched
an internal education campaign to help employees improve their
recycling practices. Other 2007 improvements were a switch to recycled
paper; automatic double-sided copying and printing to decrease paper
usage; and an in-office collection point for recycling batteries. Additionally,
each employee received two reusable grocery bags made of recycled pop
bottles, and a mug to replace the use of plastic water bottles at the office.
2008 ENVIRONMENTAL
GOALS
• Obtain renewal of ISO 14001 certification
• Establish new sustainable development guidelines for Daybreak’s Villages 4 through 6
• Double the number of Blue Sky Powerresident participants at Daybreak
• Obtain LEED NeighborhoodDevelopment certification for Daybreak’s Village Center I
• Implement a program for KennecottLand employees that encourages the useof public transportation and carpooling
• Establish Kennecott Land’s carbon footprintand identify reduction strategies
• Explore net zero energy home designs
• Obtain LEED certification for DaybreakCorporate Center
• Start the implementation of a long-termopen space, biological, cultural and recreational resource management planfor the West Bench Master Plan
• Continue testing the feasibility of addingzero-runoff irrigation to all parking grassstrips in Village 3
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The ‘Join In’ logo was developedby Kennecott Land to encourageDaybreak and South Jordan Cityresidents to recycle.
Daybreak residents joined Kennecott Land tomake art sculptures out of recyclable materials.This event helped promote the rollout of thecommunity recycling program.
Social Wellbeing
Whether it’s helping fund a community campout under the stars or strengthening our worker safety program, Kennecott
Land’s focus is on making people’s lives better. This focus is what led to Daybreak’s community plan, where front porches
encourage neighborliness and a traditional small-town design makes parks, shops, restaurants and offices an easy and healthy
walk or bike ride away. And it has compelled us to do everything we can to keep our own employees safe and healthy.
SAFETY AND HEALTH
To us, there simply isn’t an “acceptable level” of injuries for our industry. We work very diligently to create a work
environment that helps our employees and contractors stay in good health and free of injury. This emphasis on physical
wellbeing has led to policies such as employee incentive pay based partly on the company-wide safety record. All
Kennecott Land employees are required to perform two “safety interactions” onsite per year, where they evaluate and
document the safe practices of our contractors. We also have four safety committees that assess health and safety
practices at our Murray office and at Daybreak.
Improved, comprehensive management system
Kennecott Land is the only land developer in the U.S. to have earned ISO 14001 Certification for our Environmental
Management System (EMS). ISO is an internationally recognized framework that helps businesses work in a way that
protects the environment, prevents pollution and improves environmental performance. In 2007, we strengthened our
EMS by merging three separate policies into one, creating the Health, Safety and Environmental Management System.
This unified framework standardizes requirements and
streamlines our internal processes regarding health,
safety and environmental matters. The benefits include
simplified standards for our employees and contractors,
and a comprehensive, effective system that focuses on
minimizing risk in every aspect of our business.
We strive to create strong and healthy
communities, safe and healthy work
environments for our employees and
contractors, and enduring relationships
with our stakeholders.
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Heather Garcia, Marc Oleson and Tony Caliari work onsiteand communicate Kennecott Land’s strong safety values toour contractors. The TRACK program helps staff and contractors recognize hazards, assess risks and stay safe.
In recognition of their injury-free work overa two-year period, Don Whyte thankedmore than 300 contractors who enjoyed acelebratory luncheon.
7
6
5
4
3
2
1
0US
const 2005
US all industry
2005
US mining2005
Rio Tinto 2007
KLC 2007
6.3
4.6
3.6
.93.29
Injuries per 200,000 hours worked
Figures include both injuries significant enough to require
time away from work (lost time injuries) and injuries that
did not (recordable injuries).
Safety awards
In July, Kennecott Land reached an
important milestone: Our employees and
contractors worked one million hours
without a lost time injury. When
compared with the rest of the construction
industry, this is an accomplishment that we are extremely proud of. To see
how we compare in all work-related injuries, see the chart on the right.
Cultural Safety Assessment
This major initiative focuses on the big picture of keeping our employees
and contractors safe and healthy. The goal was to discover ways to continue
making safety more integral to our corporate culture. By doing so, safe
practices become second nature and simply an outgrowth of the way we
work and live. Using 250 survey responses and follow-up focus groups,
we developed specific strategies for strengthening our safety culture. We
plan to implement these recommendations in 2008.
Healthy habits
Every year, Kennecott Land employees file their Personal Heath, Safety
and Environment Plan. In it, they list their personal goals for the year at
work and at home. Regularly, an ergonomist –– a specialist in the
interface between people and workspaces –– visits the Kennecott Land
offices. Employees can get an ergonomic assessment, which provides
recommendations for changes in or adjustments to equipment. In addition,
flu shots are provided to employees at no charge.
COMMUNITY QUALITY OF LIFE
As resident Kevin Dudley says, “Daybreak already has a sense of community
that other neighborhoods take decades to achieve.” He attributes this to
Kennecott Land “planting the seed, nurturing it, and then letting
the residents take over.” Providing community events and an
abundance of neighborhood gathering places –– a lake,
community center and parks all connected by trails –– helps
people connect. Those trails help in another important way,
too. According to a recent University of Utah study, 71% of
Daybreak Elementary students walk to or from school at least
once a week –– compared to the 22% of walkers at another
local school and the national average of less than 15%.
All Injury Frequency Rate
“This place feels so welcoming.
I don’t think it matters what age
you are.”
Neill and Janie Clark
Owners of the 1,000th home built at Daybreak
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Social events
Built right into the covenants is one of the primary reasons for Daybreak’s
sense of community: Daybreak Community Association Programs
Committee. Subsidized by Kennecott Land and facilitated by a full-time
lifestyle director, this group of 35 resident volunteers coordinated a
record number of well-attended events. Movie Nights in the Park, Casino
Night and the Summer Celebration were just a few of these popular
get-togethers. The biggest news of the year was the launch of the Youth
Committee. The new board of four teenagers planned service activities
and special summer events to help Daybreak teens get to know each
other. Playgroups and clubs –– with interests ranging from scuba diving
to quilting –– also increased in 2007.
Charitable activities
Because Daybreak’s design fosters neighborhood interaction and
relationships, the resident philanthropy program is unusually robust for
such a new community. It was even featured in The Wall Street Journal
in November. Each year, residents spearhead several charitable projects,
which Kennecott Land supports with cash donations, staff and other
resources. In 2007, the Annual 5K Fun Run/Walk raised $38,845 for
the Huntsman Cancer Institute –– a leap from 2006’s donation of
$12,747. Other activities included a holiday gift program for needy
children, and food, shoe and blanket drives.
School news
One key ingredient in Daybreak’s plan is to have good schools right
in the neighborhood. That’s why construction is already underway
for Eastlake Elementary, which will serve primarily the new
Eastlake Village, beginning in 2008. Our donation of 8.8 acres to
Jordan School District expedited the school’s construction. And
the learning continues with after school activities at the
Community Center. Some of the various programs introduced
children to other cultures through holiday celebrations, such as
Cinco de Mayo and Oktoberfest.
Social Wellbeing - continued
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Meg Nielsen helps the DaybreakCommunity Association release 36,000ladybugs in the community garden fornatural pest control.
“We lived in Taylorsville for ten years
and knew only our immediate neighbors.
But after only three years at Daybreak
we have dozens of close friends.
The Programs Committee is great at
bringing people together.”
Kevin Dudley
Resident
2008 SOCIAL GOALS
• Implement recommendations from theCultural Safety Survey
• Design a program that encourages a sustainable lifestyle among Daybreak residents
• Undergo the first comprehensive health,safety, and environmental management system audit
• Formalize the establishment of a sustainability orientation for all newDaybreak residents
• Install a set of sustainability educational displays in Village 3
New resident outreach
New residents learn all the perks and responsibilities of living at Daybreak
through quarterly orientations. Meetings always include a healthy dose of
sustainable development education with thematic focuses on topics like
recycling, safety, water and energy conservation, and water-wise landscaping.
So many newcomers attended a Landscape Plan Drawing Seminar that the
time was extended four and a half hours. At the seminar, residents met
one-on-one with landscape professionals who drew plans for their property.
Residents then took the plans to irrigation and nursery booths to get started.
More room for the zucchini
When we provided fifty plots in the original community garden in Founder’s
Park, we underestimated resident demand.The long waiting list led us to double
the garden's size to 100 plots. In addition, Eastlake Village now has 105 plots
of its own. The gardens combine the pleasures of growing food organically and
socializing with neighbors. One example: the Ladybug Release Party, where
36,000 ladybugs were set free to munch on aphids –– and to tickle the arms
of dozens of giggling children.
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Daybreak’s Community Associationformed a youth committee where kidsplan events that appeal to them.
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Economic Prosperity
Building a strong, balanced economic infrastructure –– homes, shops, offices and recreation –– right into the community
promotes economic health for present and future generations. This long-term view also nurtures Kennecott Land's viability:
Daybreak’s market share in Salt Lake County increased from 7% to 10.8% in 2007. More and more Utahns are seeing the
value of a sustainable approach to living.
COMPANY SUCCESS
The biggest challenge today's companies face regarding sustainable
development is this: How do you run a business that is environmentally and
socially sustainable…and profitable? At Kennecott Land, we're pleased to
demonstrate how it can actually be good business to do good things for
people and the planet.
The bottom line
The national downturn in housing hit Salt Lake County. New home permits
were down from 5,971 in 2006 to 3,989 in 2007. Bucking this trend,
however, Daybreak sold 430 new homes in 2007, up from 417 in 2006. This translates into a 3% increase in sales for us
and, in relation to the rest of the County, an almost 4% increase in market share. In other words, while the overall pool of
new homebuyers has shrunk, Kennecott Land’s portion of those buyers has expanded.
Relative to the market, these figures were excellent –– but they still fell short of Kennecott Land’s projected sales. Because
of this downturn, we needed to reassess our staffing plans. Unfortunately, we had to decrease our workforce by about 10%
to keep our cost structure in line with the current realities of the housing market. Nonetheless, our main plans for
Daybreak remain unchanged, especially our commitment to sustainable development.
We build neighborhoods
where people can live, work,
recreate and shop, enabling
economic prosperity. We
support the local economy and
run a profitable business.
15
Kennecott Land is an important part ofKennecott Utah Copper’s mining legacy.This year a display was added at theBingham Canyon Mine Visitors Center tocommunicate the long-term vision for the West Bench.
Daybreak residents, Michael and LorrainePatton, pictured here with their son Dirk,value living in a Energy Star rated homewhich helps them save money on utilityexpenses while helping the environment.
Marketing success
Unusual for such a young community,
Daybreak now has a remarkable 86% brand
awareness among Salt Lake County residents.
This high recognition is owed partly to a
distinctive ad campaign and appealing events
that allow potential buyers to experience
Daybreak firsthand. At events like Camp
Daybreak (attendance: 1,000-1,500) or the
Summer Celebration (around 1,000),
newcomers mingle with residents and get a taste of Daybreak’s sense
of community –– while touring model homes. They also learn more about
Daybreak at the Information Pavilion, which has added new displays on
Eastlake Village, the commercial center and Energy Star.
Local economic impact
Adding up 2007 salaries, money spent on goods and services, taxes and permits,
Kennecott Land’s expenditures totaled about $95 million, the majority of
which went to the local economy. In adherence to Rio Tinto’s procurement
policies, we buy local when possible from businesses that share our
commitment to sustainable development. We believe in free and fair
competition and in supporting neighbors who exhibit
good business practices.
COMMUNITY DEVELOPMENT
In the past year, Daybreak took great strides toward
economic diversity in both the residential and
commercial sectors.To attract more types of
homebuyers, we now provide eight building types
(single-family homes, condos, etc.) with 65 floor
plans at a wide variety of prices. And now that
Daybreak has more than 1,400 homes, new
businesses have a growing base of customers.
Residential offerings
In this new era of tightened mortgage lending,
buyers are seeking lower-priced offerings.
We’ve responded with new, affordable choices,
such as condominium homes that start in the
$150,000s, and single-family homes priced
from the low $200,000s.
Other new, affordable options include terrace condominiums, townhomes,
carriage homes, and mansion townhomes, which have the exterior of a
large estate home, but contain three townhomes within. These new
choices promote diversity of age and income by appealing to first-time
buyers, singles, couples and empty-nesters who want low-maintenance living.
Originally, Daybreak was planned to provide 14,000 residential units. Now
we plan to have 20,000 residential units at completion, with an increase
in options like condos, townhomes and apartments. This signifies a
maximization of land already designated for housing –– a “going up,” rather
than “going out.” We stay committed to providing affordable housing for
everyone, ranging from young singles to retirees, while protecting open
space and the sustainability and integrity of Daybreak’s vision.
To help our builders stay in touch with buyers’ needs, too, we’ve enhanced our Builder Scorecard. Daybreak homebuyers
use it to rate their builders in terms of quality, service, warranty work and other parameters. We then present the results
to our builders. This information helps builders align their business values with ours and may have already helped improve
performance — customer satisfaction showed an increase in 2007.
Commercial ventures
Due to open in Summer 2008, the Daybreak Corporate Center
will bring residents 175,000 square feet of office space within walking and
biking distance. The rest of the Village Center –– housing a neighborhood
grocery store, restaurants and other retail –– is due to be completed
later in 2008. Daybreak Commerce Park, Daybreak’s first light industrial
building, is also under construction. With so many services right in
the neighborhood, the local economy will grow while car trips (and
greenhouse gas emissions) diminish.
Economic impact
In the fall of 2007, the University of Utah released its West Bench
Economic Impact Study. Although originally released in 2005, this
updated study details the positive economic impact of Kennecott Land
developing the West Bench. For example, within the 50-year development
period, local governments will collect an estimated $12 billion in taxes
and fees. To read a summary of the study, please visit our website,
kennecottland.com.
Daybreak offers low-priced townhomes inthe Salt Lake Valley starting at $170,000.
The Daybreak Corporate Center under construction will be completed in late 2008.
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Economic Prosperity - continued
2008 ECONOMIC GOALS
• Move Rio Tinto office employees in the Salt Lake Valley to the Rio TintoCorporate Center
• Enhance the prominence of sustainabilityin our marketing
• Explore the viability of creating aKennecott Land sod farm and tree farm
• Provide more housing that accommodateslower household income levels
• Provide active adult housing
• Open Village 3
• Combine Kennecott Land and Kennecott Utah Copper's outreach programs to maximize impact
Employees from the Kennecott UtahCompanies volunteered to clean up a portionof highway outside Copperton, Utah.
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COMPANY-COMMUNITY PARTNERSHIPS
This is our community too, and we’re committed to making our presence
here a lasting benefit to our neighbors.
Corporate giving
In 2007, Kennecott Land donated an 8.8-acre parcel of land to the
Jordan School District. Valued at $4 million for residential development,
the plot is across from a large park, giving students access to even more
play space. Besides aiding the school district financially, this donation
has allowed construction of Eastlake Elementary to begin earlier, to
better serve newly arriving residents.
We also donated $164,000 to various organizations, including Western
Governor’s University for education scholarships, the Jordan Valley
Water Conservation Garden, the Utah Arts Festival eARTh Team,
and various programs at the University of Utah. Our contributions
increased from $127,863 in 2006. In 2008, we will combine our
outreach activities with those of Kennecott Utah Copper.
Another donation focused on the town of Copperton, an original
West Bench community. Copperton’s historic ties to mining inspired us
to preserve the memories of those who lived there in its heyday.
For a special oral history project, Kennecott Land and Kennecott Utah
Copper jointly commissioned the University of Utah Humanities
Department to interview 12 long-time Copperton residents. Compact
disks of the interviews were distributed at Copperton Town Days and
donated to local libraries.
Employee giving
Each year, a steering committee of employees suggests volunteer
projects that align with Kennecott Land's principles of sustainability.
This year’s events included supporting Magna Night Out Against Crime,
an Adopt-a-Highway road cleanup in Copperton, a holiday food drive,
and serving Thanksgiving and Christmas dinners at the Magna Senior
Citizen Center. We also encourage employee cash donations through
a matching program.
Governance refers to our internal processes –– the structures that keep us progressing in sustainable development and
accountable to our external stakeholders. All Kennecott Land employees are required to comply with the policies set out
in Rio Tinto’s statement of business practice, The Way We Work.These policies require that our daily work exhibit values
such as accountability, fairness, integrity and openness. Below are a few internal structures that help promote those values.
Sustainable Development Advisory Board (SDAB)
The SDAB includes 18 representatives of government, academia, non-profit associations, utility providers and
environmental groups. Collaborating with these various entities gives the company an outside, objective view of how
we’re doing. The SDAB enables us to communicate our plans to the community, test our ideas, hear their ideas and discover
beneficial ways to partner. We met three times in 2007, and the group’s input helped us create the 2007-2012
Sustainable Development Plan (see chart on right). The membership includes representatives from these entities:
Governance
Kennecott Utah Copper
National Renewable Energy Laboratory
Questar
Rocky Mountain Power
Salt Lake City
Salt Lake County
Sierra Club
South Jordan City
The Nature Conservancy
Utah Clean Energy
Utah Division of Water Resources
Utah Division of Facilities and Construction Management
University of Utah
“The SDAB meetings are very productive. Kennecott
Land has brought in a good group of stakeholders
who are immersed in energy and water issues, and
have a strong environmental ethic.”
Mark Heileson
Southwest Regional Representative, Sierra Club
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The Kennecott Land Assurance Forum
The Kennecott Land Assurance Forum was created with the
purpose of ensuring the identification and management of risks
associated with non-compliance of laws, regulations, codes,
standards and Rio Tinto policies. It is a committee of senior
managers who, in addition to their other duties, collectively
assume and execute accountability for the program. The
Assurance Forum meets quarterly to provide updates on the
status of non-compliance and formulates plans to remediate any
non-compliance. Annually, the group performs a structured risk
profiling exercise to formally document risks and risk ratings.
Based on the work of the Assurance Forum, vice presidents
annually certify compliance in their respective areas.
Builder design workshops
In 2003, Kennecott Land presented builders with sustainable
development guidelines that mandated specific features. In 2007, we introduced a more inclusive process.
At our first design meeting or “charrette,” we began collaborating on plans to significantly improve sustainability in
Villages 4 through 6. This open dialog will continue in 2008 and is increasing our builders' passion about sustainable
practices, and our understanding and responsiveness to their challenges.
Brainstorming workshops
At these meetings, Kennecott Land and Kennecott Utah Copper employees and Daybreak residents brainstormed
improvements to sustainable development performance. Several of these ideas will be implemented over the next
five years.
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Sustainable Development Planning Process
SDAB
Builderdesign
workshopsBuilders
Residents
KL / KUC
Stakeholders
Brainstormingworkshops
Proposal
Implementation
Feb
June
May
July August
2007 - 2012
Planningsummits
2008 GOVERNANCE GOALS
• Provide builders with the support they needto implement new sustainability guidelines
• Add Daybreak residents to the SustainableDevelopment Advisory Board
Project Manager Evaluation Form (PMEF) -
internal governance
For every project, employees must conduct a risk assessment using
this form. The PMEF requires an explanation of the project's
potential impacts with regard to Health, Safety, Environment and
Sustainable Development (HSESD). No work may begin without
the approval of the HSESD management team. Projects that
require a large investment of resources go through an additional
approval process with an investment committee.
We hope you have found this report to be informative andlook forward to receiving your feedback.To provide comments, visit www.kennecottland.com and fill out a quick online survey. Thank you.
To request additional copies of this report,e-mail [email protected] or call 801-743-4328.
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Governance - continued
Kennecott Land 2007 Sustainability Scorecard
To measure how well we are doing in our commitment to sustainable development principles, Kennecott Land
has identified the following key performance indicators as relevant measurements for our business.
Result Comments
Establish a strategy to increase renewable energy at Daybreak.
Develop an Energy Conservation Program to educate homeowners about energy-saving measures.
Establish an energy consumption baseline for homes.
Improve the household recycling program forDaybreak in cooperation with South Jordan City.
Implement a computerized program to control out-door watering on lots bigger than 5,000 square feet.
Complete a feasibility analysis on the optimal re-use ofgray water for irrigation.
Test a drip irrigation system that helps keep water at the root level instead of being lost to evaporation.
Test a variety of non-native trees for drought tolerance and canopy size to increase tree diversity.
The established strategy includes a demonstration project, the inclusion of solar panels at the corporate center building, and the designand construction of prototype homes.
Workshops were conducted to educate residents, and a challenge waslaunched to match resident renewable energy purchases.
The baseline was established.Please refer to the energy graphs for more details.
An awareness campaign was launched, and activities were conducted in the community. The program will continue in 2008.
Installed 380 evapo-transpiration controllers during 2007.
Study completed. The re-use of gray water in homes was determined non-feasible at this time.
The test was completed and the technology was installed in a few parks.
This project is on-going and it will be finalized in 2009.
Result Comments
Conduct a resident survey through the DaybreakCommunity Association (DCA) to better addresssocial desires and needs of the community.
Combine the Environmental Management Systemwith the Health & Safety System for increased effectiveness and efficiency.
Open Oquirrh Lake to community fishing.
Conduct an EPA Indoor Air Quality Standard feasibility study for homes.
Perform full-scale disaster management exercise and undergo third-party evaluation.
Four focus groups were conducted and the feedback obtained will be used to enhance programs.
The system was successfully integrated in 2007.
The lake was opened to fishing in April 2007.
The study was completed and an implementation strategy will be discussed in 2008.
The exercise was successfully conducted in August of 2007.The third-party evaluation has been postponed.
Environmental Goals
Social Goals
Result Comments
Continue researching an affordable housing partnership.
Break ground on an active adult project and other housing types.
Break ground on the Daybreak Village 1 Center.
After several partnerships were considered, the company chose instead to increase offerings of affordable housing in Village 3,whose construction will start in 2008.
A very affordable, single-family, detached home and a new type of condominium were added to Daybreak. Plans continue to offer specific products for active adults.
The project started in February 2007.
Economic Goals
Goal Accomplished Goal in Progress Target not met
5295 South 300 West, Suite 475
Murray, Utah 84107
Ph: (801)743-4624
Fax: (801)743-4659
email: [email protected]
www.kennecottland.com
RIOTINTO A member of the Rio Tinto group. Printed on recycled paper using soy-based ink.
Awards and Certifications:
• International Organization for Standardization –– Recertification of ISO 14001, 2004
• Utah Business Magazine –– Selected as a Most Admired Company in Utah
• Utah Chapter of the Public Relations Society of America and the Utah Chapter
of the International Association of Business Communicators –– Gold Award for the
2006 Kennecott Land Sustainable Development Report
• National Safety Council –– Award for one million hours worked with no lost time injuries
• South Jordan Chamber of Commerce –– Business of the Year
• Best of Utah Award – Community Development Division for Large Business