Committed to sustainable business

Transcription

1 MAKING TOMORROW A BETTER PLACE Committed to sustainable business Summary Sustainability Report 2012 Issued April 2013

2 About us The Group has an annual revenue of 4.4 billion and employs around 42,000 people across the UK, Canada and the Middle East and North Africa. Our head office is in Wolverhampton, UK. Head office in UK 42,000 people globally Carillion plc is one of the UK s leading support services companies with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. Our services have the potential to contribute significantly to society, as well as providing employment within the communities in which we operate. Our 2020 strategy Carillion s 2020 sustainability strategy is the blueprint that brings together our mission to make tomorrow a better place and our vision to be a leader in sustainable business. In 2012, we increased momentum against our 2020 sustainability strategy, launched in This strategy is built around six positive outcomes, based on the issues deemed as important by our stakeholders. Our strategy is firmly rooted in our corporate strategy to deliver sustainable, profitable growth. It has six positive outcomes that encompass Carillion s economic, environmental, and social contributions and impacts: Our six positive outcomes support our overall mission and business objectives. Our mission Making tomorrow a better place Our vision To be the partner of choice for delivering, managing, and servicing buildings and infrastructure. Our Values Openness Collaboration Mutual dependency Professional delivery Innovation Sustainable, profitable growth Our sustainability vision To be recognised as a leading sustainable business and the leading sustainable support services company. To fulfil our sustainability vision, we seek to behave in accordance with our Values in everything we do and to embed sustainability across all our businesses.

3 Welcome The robust financial performance we achieved during 2012 was due in no small part to our commitment to sustainability, which continues to be at the heart of our business, even during challenging times. A year into our 2020 sustainability strategy and we are seeing encouraging results, exceeding many of the targets we set ourselves. Against our goal to reduce office gas consumption by 5%, we achieved 17%. We said we would ensure that 20% of project spend is local and to smaller businesses. We achieved 24%. And our UK business has helped more marginalised people than ever to learn construction skills 74% of our 2,000 apprentices had successful job outcomes this year. Richard Howson, Chief Executive In support of sustainable communities, we have maintained our donations at 1% of pre-tax profit, despite a challenging period for our industry. Other notable achievements have been sector-leading health and safety initiatives in our Middle East operations that have been recognised in external awards. In Canada, we have gained new contracts on the back of outstanding customer service. I am also pleased to report that through providing sustainable solutions, we have saved our UK customers 3.7 million tonnes of carbon, as well as substantial cost savings. Despite these achievements, we know there is still so much more we can do. I would welcome any feedback you have on our progress and invite you to get involved in the sustainability discussion through our new online platform, Sustainability Talk & News. On governance issues, management systems, employee involvement, risk and opportunity analysis and stakeholder engagement, I know of few companies that have built a better case than Carillion for out-performing on the full range of social, environmental and ethical issues. Jonathon Porritt, Founder Director of Forum for the Future Translating the strategy into action this year has shown that achieving community needs plans across all our contracts is in sight. With our suppliers, we are also increasing the focus on sustainability performance. Dame Julia Cleverdon DCVO, CBE, Vice President of Business in the Community and Special Advisor to The Prince s Charities 1

4 by building a successful business Read more in our full report We firmly believe that a more sustainable business means a more successful business. We can make this happen by applying our proactive approach to each of the six positive outcomes we are targeting under our 2020 strategy. Committed to action 2020 strategy in practice The team at New York University in Abu Dhabi is embedding our six positive outcomes into the project. This is the first construction project in the Gulf Cooperation Council to use recycled concrete; 36 training options are available to staff; a car pool scheme saved 32,450km in just one week; and over 4,000 hours of voluntary time has been given to the community. We set ourselves the target of cutting costs and increasing profit by 40 million over a nine-year period. We are on track to achieve this with our sustainability efforts already contributing directly to our business vision. For example, in 2012 we reduced cost through our sustainability strategy by a net 10 million by identifying and reducing our environmental impacts in key priority areas. Underlying profit from operations 1 m Support services Public Private Partnership projects Middle East construction services Construction services (excluding Middle East) Total underlying profit Group costs and Joint Venture tax and interest (31.8) (25.5) Underlying profit from operations Our report shows how our strategy has helped us win and retain contracts; attract and retain the best people; enhance our reputation in the marketplace and among our stakeholders; reduce operating costs and risk; and maintain our licence to operate. Our driver behaviour and engine remapping programme in the UK, applied to 2,300 commercial vehicles, contributed to 820,000 in fuel savings in the year. 1 After Joint Ventures net financial expense and taxation charge and before intangible amortisation, non-recurring operating items and non-operating items. We know there is a sound business case for integrating sustainability into everything we do and we believe that being a champion for sustainability is vital to the long-term success of our business. Our 2020 sustainability strategy is an integral part of our business plan and a key foundation stone upon which to build a business that delivers sustainable, profitable growth. Richard Howson, Chief Executive 2

5 by enabling low-carbon economies Read more in our full report Our sustainability vision gives us a strong platform to address the challenges and opportunities presented by the low-carbon economy. Committed to action Playing our part in the Green Deal Carillion Energy Services became one of the main delivery partners of the UK Government s Green Deal in 2012, a national initiative to support home energy efficiency while creating jobs and growth in the low-carbon sector. We are providing end-to-end support from marketing and engagement with communities, right through to home energy assessments, installation, aftercare and maintenance, as well as financing. Partnering with others is key to our long-term success. We have helped 2.3 million people at risk of fuel poverty and we have worked with Belfry and Cambridge University to roll out EcoPod, one of the most technically advanced community heating solutions in the UK. This is helping our customers save money and cut carbon by up to 40%. We seek constantly to reduce our own carbon footprint. In 2012 we reduced our fuel, gas and electricity consumption and our overall (normalised) carbon footprint was 8% lower than the previous year. We are proud to report that we achieved seventh position among almost 3,000 organisations in the UK Carbon Reduction Commitment league table. Effective use of telematics in our UK commercial fleet is encouraging good driving behaviour and fuel saving. Over the whole of 2012, our average driver behaviour score improved from a low The essence of a successful Green Deal lies in inspiring and exciting homeowners about the scheme. Carillion already has a huge tradition of working with communities, and we want to take it even further. John Swinney, Business Development Director, Carillion Energy Services of 81% to more than 88%. The score is based on five measures of driver behaviour including acceleration and braking, driving and improving miles per gallon. A 16% reduction in vehicle fuel use, when normalised by turnover, was achieved in parts of the Canadian business thanks to the installation of telematics and global positioning systems in 637 commercial vehicles. We also introduced a plant fuel calculator across all our civil engineering sites, and in the Middle East and North Africa we saved over 5 million kwh by making our buildings more efficient. We also began the installation of solar panels on the roof of our head office in Dubai. Carbon footprint by origin (tonnes CO 2 e) UK MENA* Canada 40, : 54,762 9, : 17, : , : 68,753 89, : 89,045 25, : 31,408 Buildings Transport Other * MENA stands for Middle East and North Africa. MENA business includes significant transport operations. 3, : 2, : : 41 3

6 Committed to action One year into our 2020 sustainability strategy, we are already seeing positive outcomes for society, the environment, our people and our business. 17% 3.7m 7th 8% reduction in normalised gas consumption tonnes of carbon savings for our customers in the UK Carbon Reduction Commitment league table reduction in normalised carbon footprint 6% reduction in normalised fuel purchased OFFSETTING REDUCTION AND DESIGN ENABLING LOW-CARBON ECONOMIES FTSE4Good Carillion is included in this globally recognised corporate responsibility index 97% of timber sourced in the UK certified to FSC standards (or equivalent) 2.3m Winner Arabia Corporate Social Responsibility Award and Guardian Sustainable Business Awards, m net cost reductions through our 2020 sustainability strategy 632,000 invested by the Carillion Sustainability Investment Committee UK customers supported who were at risk of fuel poverty since 2000 Platinum Big Tick in Business in the Community s 2013 Corporate Responsibility Index 24% local UK spend including SMEs EcoPod BUILDING A SUCCESSFUL BUSINESS SHAREHOLDER VALUE LEADING THE WAY SUPPLY CHAIN launched to reduce energy bills by 40% GOVERNANCE CUSTOMER 4 Data is for financial year 2012 unless stated otherwise data as 2012 data was unavailable at time of publication.

7 Read more in our full report 10% reduction in MENA* water consumption BIODIVERSITY RESOURCE USE PROTECTING THE ENVIRONMENT NEEDS COMMUNITY EMPLOYMENT TRAINING AND SUPPORTING SUSTAINABLE COMMUNITIES 100% contracts in UK and MENA* have Biodiversity Action Plans in place 1% pre-tax profits in cash and time contributed to community activities 75% of Carillion apprentices went on to employment 370,000 invested since 2001 to support over 60 Wildlife Trust projects, UK 100% UK and MENA* operations are certified to ISO work placements completed through Business Action on Homelessness more than any other UK company 86% of global waste diverted from landfill 50,000 donated via the employeenominated charities fund 2,000 apprentices supported each year PROVIDING BETTER PROSPECTS FOR OUR PEOPLE HEALTH AND SAFETY OUR PEOPLE 20% reduction in our All Accident Frequency Rate 20m+ spent on learning and development resources in the UK 89% of employees feel that health and safety is a top priority 71% of employees feel proud to be part of Carillion *MENA stands for Middle East and North Africa. 5

8 by protecting the environment Read more in our full report We make every effort to be a responsible global citizen when it comes to safeguarding natural resources and biodiversity for future generations. Committed to action Water reduction in Egypt We are determined to tackle water scarcity in the Middle East. The Cairo Festival City contract demonstrates this. The engineering team came up with an innovative solution to flushing cooling pipes using air instead of water. This reduced water use by 16,250m 3 of water a day, saved 60,000 and cut the time spent by 60 days. We are proud to maintain our ISO standard across all UK and Middle East and North Africa operations. In 2012, we raised the bar by factoring sustainability into each stage of every project. We achieved BREEAM, LEED and CEEQUAL standards on a number of our projects as well as adopting innovative ways to cut our materials use. For example, in Oman we saved 20,000 by replacing cement with hydrated lime powder at the National Museum contract, while in the Caribbean we have been harvesting rain water. We are on track to send zero nonhazardous waste to landfill by 2015 and in 2012 we diverted 86% of our global waste from landfill. Over the year, our focus was at the top end of the waste hierarchy as we trialled innovative ways of capturing value from waste. For example, in the UK our contract on the A487 road made use of rock extracted from road widening to construct retaining walls, or for community projects like local footpath improvements. When it comes to biodiversity, we are proud to report that all our UK and Middle East and North Africa contracts are now assessed for biodiversity risks. The Carillion Natural Habitats Fund has supported 60 biodiversity projects with grants totalling over 370,000 since Waste diverted from landfill (%) UK : 87 MENA* : 42 Canada : 53 We are so grateful to Al Futtaim Carillion for their support. It has been deeply heart-warming and satisfying to see both the social and financial return on this community investment. Suparna Mathur, Recycle for a Cause, our charity partner at the Al Bahar Towers project, Abu Dhabi 6 TOTAL : 82 *MENA stands for Middle East and North Africa.

9 by supporting sustainable communities Read more in our full report Doing business within thriving communities is vital for our future growth. We want to leave a lasting legacy of opportunity for all. Committed to action Training and recruiting locally Carillion Construction in the UK is responsible for building a new hospital in the Southmead area of Bristol, while at the same time making a positive economic impact. The team ran a number of community education programmes including the Get into Construction course, alongside The Prince s Trust. So far, the contract has employed around 80% local labour. Our contracts provide employment and training for 42,000 people across our markets. But we go further than this. We work closely with society s most marginalised for example, through our UK partnerships with Business Action on Homelessness and Jobcentre Plus. We were also one of the first companies to sign the UK Government s Social Mobility Compact to widen career opportunities to all demographic groups. We re supporting rural populations in Oman to develop construction skills at our training centres, while in Canada we provide supervised site visit opportunities to budding apprentices. In 2012, our UK construction sites scored an average of 35.8 out of 40 in the Considerate Constructors scheme well ahead of the industry average of We gave 1% of our pre-tax profits to charitable and community causes through a combination of employees time, cash, and in-kind donations. The Carillion Charities Fund doubled its 2012 funding to employee nomination funds to 50,000. Total financial giving to communities ( ) Canada MENA* UK Group Total 1,549, : 1,827,779 2,151, : 2,260,611 Carillion s commitment to supporting some of the hardest to reach groups, including scores of ex-offenders who may well otherwise not have a route into employment, is astounding. Anne Willmot, Director, Business Action on Homelessness 28, , : 211, , : 221,128 *MENA stands for Middle East and North Africa. Data reported at business unit level only. 7

10 by providing better prospects for our people Read more in our full report Carillion s culture of success relies on our ability to attract, retain and develop a diverse range of talented employees from thriving communities. Committed to action Sector leader in apprenticeships Carillion is the largest employer of apprentices in the construction sector in the UK, with around 2,000 learners in training at any one time. We delivered 1,000 NVQs and apprenticeships, with over 74% of apprentices moving into employment. We were also awarded our fourth national contract with the National Apprenticeship Service. This means a no-compromise approach to safety and we are determined to achieve our Target Zero for reportable accidents. We are certified to BS OHSAS in the UK and the Middle East and North Africa. We measure our performance using bestpractice benchmarks. We achieved a 20% reduction in our All Accident Frequency Rate (AAFR) in 2012 compared to The health, wellbeing and development of our employees is also important to us. We signed up to the UK Department of Health s Responsibility Deal to address issues around health inequality. And we supported 10% of our employees on vocational, professional or internal structured development programmes also saw us launch our Women in Leadership Network. In 2012, over 9,770 employees shared their views via our internal survey The Great Debate, with 71% reporting that they felt proud to be part of Carillion. We are striving to reach 80% by To this end, we make proactive efforts to recruit, retain and engage people working at all levels across the organisation, by rewarding them well and making them feel valued. Our people as a percentage of total employees 7% Canada 50% UK 43% MENA* I guess you could say we re pretty loyal people, but if the company is good to you and the people you work with are good, there s no need to leave. Anjanie Chattergoon, Carillion Caribbean s longest-serving employee (42 years of service) *MENA stands for Middle East and North Africa. 8

11 by leading the way with our customers and suppliers Read more in our full report Sustainable leadership is about bringing others along the journey. By involving customers and suppliers, we can fulfil our vision of being the provider of choice. Committed to action Leading the way At the UK s Piccadilly Estate in Manchester, the team s vision is to create a highly sustainable estate by building mutually beneficial connections with tenant businesses, suppliers, charitable organisations and the local community. These efforts have delivered measurable savings in energy, carbon and water. The team was recognised in the North West Public Health Awards for its approach to tackling climate change which is increasingly seen as a serious risk to people s health and wellbeing. We want to stand out against our competitors. In the UK for example, we have helped 2.3 million people at risk of fuel poverty tackle energy loss under the Government s Warm Front schemes. We launched a Sustainability Investment Committee, to invest in the research, development and implementation of sustainable solutions for our customers. To date, the committee has invested 632,000 on a range of initiatives including telematics in vehicles and solar panels on our Dubai head office. It s vital that we continue to develop great services and products to meet our customers needs. EcoPod is just one example: a groundbreaking heating system that can be fitted, or retrofitted, to a wide range of Like most small businesses, when approached by an organisation as big as Carillion, there is a natural fear that we are so small that our individual concerns are not going to be considered. We found the opposite. Andrew Glossop, supplier to Carillion Facilities Management buildings, cutting energy bills by up to 40% a year. We know that our customers expect just as much from the quality of service we provide and outstanding customer service was an important factor in winning a number of contracts including Vancouver International Airport. A sustainable supply chain is equally essential in our ability to deliver for our customers. We have enhanced the criteria we use to select suppliers, using a range of health, safety, quality and sustainability indicators. In other developments, we have applied our Responsible Timber Procurement Policy across all our businesses and delivered a total of 300 days training to our procurement teams through our Supply Chain Academy. 9

12 Committed to sustainable business See our full report at Contact us Tel: Sustainability Talk & News covering the key issues faced by the built environment. Follow us on LinkedIn and Twitter