SUSTAINABILITY REPORT EUROPE

Transcription

1 SUSTAINABILITY REPORT EUROPE

2 We believe that good sustainability practice makes good business sense. Not only is it the right thing to do, it s the smart thing to do (2015: 0.12 * ) Group AFR 0.29 (2015: 0.28 * ) Group DIFR 1.84 (2015: 2.42 * ) Group AAFR Sustainability encourages us to be more efficient and that translates into higher margins. It compels us to be more creative and that makes us a more attractive employer. The issues facing our industry and the wider world are driving big changes in the way we operate. This presents us with challenges and opportunities. Demand for new capabilities is helping us create different kinds of careers that are more permanent in nature than many traditional construction roles. This is changing the social and economic impact of our work. Our clients are setting higher standards than ever before. They want sustainable outcomes that minimise environmental impacts not just in delivery but throughout the lifecycle of their assets. Our ability to meet these objectives is, therefore, critical to our success as a business. Laing O Rourke s unique way of working puts us on a good footing, enabling us to achieve ever-higher levels of efficiency in design, delivery and operation. Each of these activities brings economic benefit to our business reducing operating costs, increasing margins, enhancing our reputation with clients and creating a positive image of our industry.

3 HEALTH AND SAFETY The elimination of harm from our operations is an objective of the highest strategic importance. Our health and safety performance defines our strength as a business and determines our success in all other areas. For this reason, it is central to our sustainability, a precondition of our continued growth. But, most importantly, it is a measure of the value we place on our people. NEXT GEAR Our Next Gear safety strategy centres around three principles: people are the solution, not the problem; safety is the presence of positives, not the absence of negatives; safety is an ethical responsibility, not a bureaucratic process. PEOPLE ARE THE SOLUTION, NOT THE PROBLEM It is essential that those responsible for putting our processes into practice not only have the competence, but the confidence, to make the right decisions. To support this, we have developed a tool we call collective insight, which is used to guide group discussions between management and the workforce on high-risk activities. The aim of these sessions is to review the hazards involved and the associated control measures and to invite feedback on the planned approach. Where viable improvements are proposed, they are incorporated into the methodology. SAFETY IS THE PRESENCE OF POSITIVES, NOT THE ABSENCE OF NEGATIVES Traditionally, health and safety has been measured in negatives. The number of incidents divided by hours worked over a given period results in a frequency rate. In short, this tells us how often things have gone wrong. As a consequence, in working to improve our performance, we have tended to focus on learning from failure rather than success. While it is important to understand where mistakes have been made in order to prevent a recurrence, there is equal value in capturing examples of excellence so that these can be replicated across our workplaces. To support this, we have developed the concept of a positive investigation. The process applies standard causal analysis (used in the event of an incident) to work activities that have been delivered safely. The aim is to identify the primary factors that contributed to its success, while isolating any redundant activities. SAFETY IS AN ETHICAL RESPONSIBILITY, NOT A BUREAUCRATIC ACTIVITY While process is vitally important to managing risk, our safest workplaces are those where our people are committed and empowered. Likewise, not all process is equally effective. We encourage our project teams to reduce paperwork and, wherever possible, eliminate redundant processes. This enables them to concentrate on more impactful activities, such as workforce engagement and the management of major risks.

4 ENVIRONMENT The construction and more particularly the use of the built environment is the single biggest contributor to global carbon emissions. If that makes us to some extent a part of the problem, it also makes us a part of the solution. We embrace these challenges, as we work to positively influence the whole-life impact of our assets through design, manufacture, construction and operation. We have already made good progress. In the last eight years, we have reduced our carbon emissions by 22 per cent per unit of turnover. This has been achieved through a combination of initiatives including a sustained investment in fuelefficient plant, equipment and vehicles, improved delivery methods and the promotion of waste-aware behaviours. In recognition of its efforts, the business received a Gold Award from the Carbon & Energy Management and Reduction Scheme (CEMARS). The increased application of offsite manufacture has also played an important role with DfMA projects typically generating 60 per cent less construction waste than those constructed using traditional methods. At Explore Industrial Park we are manufacturing columns that use significantly less steel than their in-situ equivalents. This not only reduces the cost of materials but has led to a 21 per cent reduction in embodied carbon. PEOPLE When we talk about social sustainability, what we re really talking about is people our own people and the people who live in our communities. As a direct employer, we believe in creating careers not just jobs. That s why, every year, we invest millions in training, development and education. This investment enables us to build the skills we need as an intelligent, technology-enabled business. It provides our employees with opportunities to achieve their potential. But, perhaps most importantly, it promotes a positive image of our industry. Laing O Rourke offers a range of entry-level talent programmes for apprentices, undergraduates and graduates. In addition, we have recently developed two new industrial placement and work experience schemes. We regularly review the structure and content of all our training programmes to ensure participants are receiving the 46.8m (2015: 59.7m * ) Investment in training, development, education networks and research and development 21.1m (2015: 18.2m * ) Investment in training and development 11.6m (2015: 10.3m * ) Health and safety training highest quality education providing them with the skills they need now and those they ll need in the future. In 2016, Laing O Rourke was named Apprentice Employer of the Year at the CITB Apprenticeship Awards (in the large employer category). We are working hard to encourage greater diversity at every level of our workforce. Through our Construction 50:50 campaign we are promoting open, two-way dialogue about both the challenges and solutions. This is sponsored by senior leaders and supported by a number of employee-led action groups. We are also members of the LGBT Construction Forum, alongside a number of other industry partners.

5 INDUSTRY Our innovation agenda comprises many different aspects, each geared towards the same goal: to provide the best possible solution for the clients who procure our services and the communities that benefit from the end result. At the heart of this is our value proposition, which sets us apart in the market and allows us to create new kinds of careers that challenge perceptions of our industry. Our clients create the pipeline of work that keeps us in business and are without doubt our most important stakeholder group. For this reason, we consider client satisfaction a key indicator of our sustainability. The degree to which we deliver against our clients expectations is ultimately borne out in our order book and in particular the proportion of clients who return to us as partner of first choice. We believe long-term relationships benefit both sides and are committed to achieving ongoing improvement in this regard. Our research and development activities remain at the centre of our strategic growth plans. We continue to promote worldclass engineering education, working in partnership with leading academic institutions. We have developed two unique Masters degrees, which are delivered through Laing O Rourke centres at the University of Cambridge and Imperial College London. These are open to our own people and others from organisations across the sector. COMMUNITY Around each and every one of our sites, facilities and offices there is a community. When we interact with these communities we shape perceptions and make an impact. As a business, we have always believed in being a good neighbour and we are proud of our achievements in this regard. In our industry, more than many others, community engagement is essential to business success and our clients value the contributions we make to those around us. It is estimated that in the UK, around 55,000 engineeringrelated roles will need to be filled each year, for the next five years, to meet the industry s demand. Clearly, we are going to have to work hard to attract the necessary talent and that means widening our appeal to a much broader group of people; actively promoting diversity. It is often said that the most successful organisations are those with the most diverse workforces. With the challenges and opportunities ahead of us, the business case is clear. That s why our community engagement activities are so important. By visiting local schools and colleges, offering work experience even a workplace tour we are creating that allpowerful first impression. We are reaching people who may never have considered one of the many careers our industry has to offer. By promoting STEM activities we are demonstrating to young people the enormous value of science, technology, engineering and maths in our society. Laing O Rourke has a number of corporate charities, including Cancer Research UK, RedR UK and the Integrated Education Fund. In 2016, mental health campaigners Mind were approved as an official corporate charity. 938 (2015: 775 * ) Employees on development programmes

6 FIGURES AT A GLANCE EMPLOYEES ON DEVELOPMENT PROGRAMMES * Apprentices Graduates Scholars and Cadets Young Guns Guns Masters Students Total STAFF LENGTH OF SERVICE * Less than 6 months 6% 9% 6 months to 1 year 9% 10% 1-2 years 17% 16% 2-3 years 12% 9% 3-5 years 13% 14% 5 years + 43% 42% STAFF AGE PROFILE * 25 and under 9% 9% % 31% % 28% % 21% Over 55 12% 11% EMPLOYEE TOTALS Staff Workforce Total 2016 Total 2015* Europe Hub 4,427 7,658 12,086 10,378 Australia Hub 1,358 1,789 3,148 4,710 Group 5,786 9,448 15,233 15,088 EMPLOYEES: STAFF TO WORKFORCE RATIO * Staff 38% 38% Workforce 62% 62% STAFF: MALE TO FEMALE RATIO * Male 80% 79% Female 20% 21% ATTRITION ALL LEAVERS Monthly paid * Europe Hub 17.1% 15.0% Australia Hub 43.8% 36.9% Group 23.8% 22.5% WORKFORCE AGE PROFILE * 25 and under 8% 8% % 32% % 29% % 21% Over 55 10% 10% VOLUNTARY LEAVERS * Europe Hub 12.0% 12.8% Australia Hub 17.4% 18.6% Group 13.4% 14.8 % SUMMARY OF UK CARBON EMISSIONS 1 tco2 e 2008/ / /16 (baseline) Scope 1 79, ,701 30, Scope 2 16, ,031 15, Scope 3 7, ,706 4, Total (Scope 1, 2 and 3) 103, ,158 49, All figures are absolute. Figures are for FY 1 April to 31 March. All figures have been subject to CEMARS external verification audit.

7 OUR VISION To become the recognised leader for innovation and excellence in the construction industry.