A BETTER TOMORROW - Sustainability Report 2015: Carillion plc

Transcription

Making tomorrow a better place
A BETTER
TOMORROW
Sustainability Report 2015
SCHOOL
£
ISSUED APRIL 2016
OVERVIEW
BETTER
BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
BETTER
BUSINESS
BETTER
WE ARE CARILLION
WELCOME
The teams that make up today’s Carillion are part of a 200-year heritage of creating and serving awardwinning infrastructure in cities across the world. We build and maintain hospitals and schools; we connect
communities with roads and railways; and we inspire healthier environments where commerce can thrive.
This is our 16th annual sustainability report.
It shows our progress and challenges against
the six positive outcomes of our 2020
sustainability strategy.
VALUE ENABLERS:
what we rely on
•Financial and natural resources
(ethically and responsibly
sourced and used)
•Skilled, committed and
engaged people
•Long-term customer, community
and supplier relationships
•Corporate governance and
operational excellence
•Strong (risk) management
systems and processes
VALUE CREATED
AND SHARED
•Financial stability
and profitability
• Economic growth and
local development
OUR
VALUE
MODEL
OUR GOAL?
To be the trusted partner for
providing services, delivering
infrastructure and creating
places that bring lasting
benefits to our customers and
the communities in which we
live and work.
HOW WILL WE
ACHIEVE THIS?
By creating and sharing
value for our economies,
for society and for the
environment.
• A low-carbon, protected
environment
ENVIRONMENT
VALUE ADDING: what we do
BETTER
FUTURE
MANAGEMENT
& REPORTING
£4.6bn
employees
revenue
(2014: 42,000)
(2014: £4.1bn)
CANADA
UK
9%
50%
11%
73%
MENA
41%
Key
This report focuses on our performance
during 2015. Further detail on our 2020
sustainability strategy, processes and policies
can be found on our corporate website.
SUPPORT SERVICES
Provide maintenance, facilities
management and energy services
for buildings and infrastructure.
BETTER
46,000
It also gives a balanced view of the material issues
that our stakeholders tell us are important to a
sustainable business, and it showcases some
of the most inspiring stories from our people
as they put sustainability into action.
16%
EMPLOYEES
REVENUE
CARILLION AROUND THE WORLD
PROJECT FINANCE
Arrange funding for Public Private
Partnership projects to deliver public
sector buildings and infrastructure.
CONTENTS
CONSTRUCTION SERVICES
Deliver a wide range of
buildings and infrastructure.
02
OVERVIEW
04 2015 at a glance
05 An evolving strategy
06 Reflections on the year
08 Sustainability in action
18
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BUSINESS
20 Building a successful business
23Leading the way with customers
and suppliers
28
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SOCIETY
OUTCOMES:
our six positive outcomes
30Providing better prospects for
our people
42
BETTER BUSINESS
Supporting sustainable communities
Building a successful business
Leading the way with customers
and suppliers
50
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ENVIRONMENT
• Diversity and skills
• Legacies in communities
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SOCIETY
BETTER SOCIETY
52Enabling low-carbon economies
57 Protecting the environment
Providing better prospects for our people
Supporting sustainable communities
62
Views from our CSO and
independent advisors
66
68
Targets and performance
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MANAGEMENT BETTER ENVIRONMENT
Enabling low-carbon economies
Protecting the environment
Carillion plc Sustainability Report 2015
62
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FUTURE
02
AND REPORTING
68
69
73
Materiality
Governance and risk
This report
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2015 AT A GLANCE
AN EVOLVING STRATEGY
This report will show you how our sustainability strategy creates value for the economy,
society and the environment. For Carillion it is a proven competitive edge, helping us to
win and deliver contracts, strengthen trusted partnerships and engage our people.
Our six positive outcomes create balanced value for business, society and the environment,
demonstrated through independently verified key performance indicators. Halfway through
our 2020 sustainability strategy, we have made solid progress on our ambition to make
tomorrow a better place.
£33.8m
profit contribution
through sustainable
actions and behaviours
Investing in
Integrity
Charter Mark
58%
Four stars (96%) in Business in
the Community’s 2016 CR Index
Progressive Aboriginal
Relations Bronze
Award attained
Largest trainer and
employer of construction
apprentices in the UK, offering
over 1,700 placements in 2015
local supplier spend in
the UK – supporting
local economies
reduction in our carbon
footprint since 2011
(normalised)
94%
of waste diverted from landfill
LEADING THE WAY WITH CUSTOMERS AND SUPPLIERS
Net Promoter
Score measuring
customer
satisfaction
98A near-perfect
score for climate change action
from the CDP
PROVIDING BETTER PROSPECTS FOR OUR PEOPLE
We will provide better prospects for our people by creating safe,
healthy places to work, and offering opportunities for continual
learning and development.
SUPPORTING SUSTAINABLE COMMUNITIES
1%
We will create employment and skills opportunities, through
our understanding of communities’ needs, to leave a net positive
contribution where we live and work.
of our pre-tax profits donated
to community activities
BETTER ENVIRONMENT
BREEAM certification
on over 200 projects
since the methodology’s
inception in 1990
ENABLING LOW-CARBON ECONOMIES
We will work with our customers and suppliers to minimise carbon,
aiming to become the lowest carbon producers in our respective sectors.
47%
PROTECTING THE ENVIRONMENT
We will work with our customers and suppliers, aiming to be best
in class in managing water and raw materials, reducing waste and
protecting biodiversity.
absolute reduction
in waste (against a
2014 baseline)
We will be recognised as a benchmark in sustainability and innovation,
driving demand as the service provider of choice for our customers.
BETTER SOCIETY
Live working relationships with
23 indigenous businesses and
communities across Canada on remote
site support services contracts, and
transmission and distribution projects
The Times Top 50 Employers
for Women and BITC’s
Diversity Champion for
2015 (Kat Fidler)
reduction in operational
water use since 2012
+36
Building Public Trust
Award (PwC) retained for
an unprecedented third
year for FTSE 250
Sustainability Reporting
reduction in All Accident
Frequency Rate (against
a 2011 baseline)
40%
BUILDING A SUCCESSFUL BUSINESS
We will increase shareholder value through our sector leadership and
profit contribution from sustainable efficiencies and waste elimination.
51%
31%
BETTER BUSINESS
Oman Construction Week Awards – Carillion Alawi won
HSE Initiative of the Year, Sustainability Initiative of the Year
and CSR Initiative of the Year
04
We will revisit our material issues
in 2016, reviewing their significance
against global trends, such as skills
shortages, diversity, engagement and
collective agreements, for example
the United Nations Sustainable
Development Goals. Having already
achieved our 2020 target for carbon
footprint reduction, we will also
revisit our carbon ambition to support
further and constructively challenge
the climate change goals arising from
2015’s COP21 Paris summit.
How do we know we are
making a difference?
We track performance monthly
with economic, environmental
and social key indicators –
set by our Board and senior
leadership at the start of our
2020 strategy. For the first
time in five years, all of our
sustainability KPI targets were
independently verified by
Bureau Veritas in 2015. This is a
unique and powerful milestone
in the credibility and governance
of our sustainability strategy.
We engage our stakeholders
through a materiality process to
understand their concerns and
to track our impact. Working
closely with our people to show
them how their role contributes
to the bigger picture also helps
us challenge ourselves further.
See Targets and performance,
Better management and
reporting and our Annual
Report and Accounts
for more information.
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REFLECTIONS ON THE YEAR
Carillion is growing and
sustaining an ever more
successful, long-term
business, which creates
value for society, customers
and for shareholders.”
PHILIP GREEN, CBE, Chairman
As Chairman, I’m determined to keep
raising the bar. In 2015, we established
a Board Sustainability Committee,
chaired by Dr Ceri Powell (see her
independent view on page 63). The
committee’s expertise and focus reflects
the importance we attach to making sure
that Carillion people deliver and build
on their stretching economic, social and
environmental commitments.
Despite the ongoing tough trading
conditions, I am encouraged that
the Group has returned to revenue
growth for the first time in five years.
With a sustainability strategy that has
contributed £33.8 million directly to profit,
this is a key driver of growth, but it is also
our non-financial results that help us to
remain engaging and valuable to society.
Our focus on volunteering in schools and
with young people, employability support
and skills development is built from a
deep understanding of community need.
Ensuring that Carillion is a sustainable, trusted and responsible business
in highly dynamic markets runs to the heart of our Board Director
responsibilities. We see this as the basis of sustainability and the reason
why we foster a culture of values, ethics and integrity. This is fundamental
to building a business that can deliver long-term, profitable growth. Today’s
expectations of corporate responsibility might seem to be a given, but I am
convinced of Carillion’s genuine and credible commitment. I’ve seen firsthand how it makes a difference – to society, to the environment and to our
bottom line. I hope you will also see it through this report.
We remain committed to meeting the stretching
targets in our 2020 strategy and know that we still
have work to do over the next five years. We made
further significant progress in 2015 and remain
ambitious to ensure we respond to changing
market and stakeholder expectations.”
JOHN PLATT, Managing Director of Strategic Growth
1
Responsible business generates
trust in Carillion, helps to win more
work, protects the environment
and creates long-term benefit
where we live and work.”
Trust in business remains a challenge1,
but is vital to long-term success.
I believe without doubt that our
commitment to sustainability, safety,
integrity and strong governance is key to
maintaining that trust and fundamental
to the significant contribution we make
towards a better tomorrow.
The increasing focus on the
impact of employer engagement
in UK schools, along with the
scale and quality of apprentice
training, offers significant
rewards for both business
and society. Specifically,
Carillion must redouble its
efforts through companysupported volunteering.”
RICHARD HOWSON, Chief Executive
W
ATCH RICHARD HOWSON’S VIDEO
I continue to be reminded on a daily
basis of how our sustainability leadership
makes us a more effective and inspiring
company to invest in and do business
with. Just as importantly, we become an
ever more engaging organisation, which
attracts, develops and retains talented,
loyal people. This is a key competitive
advantage in our reputation as a service
provider that can be trusted to deliver
for the long term – not only for our
shareholders but for the economies and
communities of the countries we work in.
We learn constantly from independent
benchmarking, such as PwC’s Building
Public Trust Award for Sustainability
Reporting – retained for FTSE 250 an
unprecedented third consecutive year.
We continue to tackle climate change,
demonstrated with a near-perfect score
of 98A in the Carbon Disclosure Project
Index – one of only two UK industrial
firms awarded the top grade.
Lasting and powerful partnerships are
key to long-term improvement, and I
would like to thank Jonathon Porritt, our
independent advisor from Forum for the
Future, for his tremendous support and
Our sustainable
behaviours
contributed
£33.8 million
of cost-efficient profit to the
Group in 2015
insight over 15 years. Working ever more
closely with Dame Julia Cleverdon, we
also welcomed a critical 360-degree
review of our sustainability strategy from
Julie Hirigoyen, Chief Executive of the UK
Green Building Council (UK-GBC) – see
their commentaries on pages 64 to 65.
Our re-accreditation in the globally
recognised FTSE4Good Index
complemented our 4-star (96%) rating
in Business in the Community’s (BITC’s)
2016 Corporate Responsibility Index.
I personally chaired BITC’s Community
Impact Leadership team, and we were
a close runner-up for 2015 Responsible
Business of the Year. Our school
engagements and industry-leading
apprenticeship programme sat alongside
eight years of support for BITC’s Ready
for Work scheme, where we provided
our 1,000th work placement and helped
our 400th person into employment. Our
first-ever placing in The Times’ list of Top
50 Employers for Women and a Diversity
Champion Award underlined our
commitment to shape a skilled, diverse
and inclusive workforce.
Our sustainability 2020 ambition is
challenging – as it should be, and as
I would expect of an international
organisation – but the philosophy of
doing what’s right for business, for society
and for our people is also proving to be
right for a better tomorrow.
As one of UK-GBC’s Gold Leaf
members, I look forward to
working with Carillion over the
coming years to further its
leadership approach to
sustainable development.”
JULIE HIRIGOYEN, Chief Executive,
UK Green Building Council
DAME JULIA CLEVERDON DCVO,
CBE, Vice President, Business in
the Community
Edelman Trust Barometer 2015: www.edelman.com/insights/intellectual-property/2015-edelman-trust-barometer/
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Sustainability in action
We’re protecting resources
A1 LEEMING
TO BARTON
CUTTING CARBON,
BUILDING SKILLS
REDUCED LANDFILL BY
300,000
The A1 Leeming to Barton project is
one of the UK’s largest infrastructure
projects, designed to improve safety
and journey times between London
and major northern cities.
m3
“The innovative use of
environmentally friendly
equipment on our site is one
of the many ways that the
project is aspiring to be world
class. We are working with
our supply chain and moving
beyond the normal to create a
truly sustainable project.”
DAVE LOWERY, Project Director
SAVED
RESPONDED TO
ACHIEVED
DONATED
tonnes of carbon
of community enquiries
of National
Skills Academy
commitments
trees and hedgerow plants
5,000
95%
100%
within 48 hours, reassuring
our neighbours that we will
deliver on our promises
350+
to the sustainable pollinator
corridor project to increase
bee and bird numbers
READ THE FULL STORY
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We’re building sustainable
cities of the future
GREENING
SOCIAL
HOUSING
MORE HOUSING, LESS FUEL
SAVED
c.60,000t
of CO2
The 19 Towers project is a landmark scheme
for Birmingham City Council and represents
the largest social housing tower block energy
refurbishment programme ever delivered
under one contract.
APPLIED
LATEST
TECHNOLOGIES
including EcoPod and
external wall insulation
“The installation of both EcoPod
and external wall insulation onto
the 19 Towers through the
Birmingham Energy Savers contract
has made a significant impact to the
warmth and wellbeing of residents
in those blocks. Not only are
residents expecting to make
significant savings on their energy
bills, but the greater impact is on
their health and comfort.”
HELPED
2,000
RESIDENTS
save up to £400
per home in annual
fuel bills
from annual fuel usage
MUMTAZ MOHAMMED,
Programme Manager (Interim) for Birmingham Energy Savers
READ THE FULL STORY
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We’re ensuring a safe, diverse
and inclusive business
HONOURING
OUR HERITAGE
AN INCLUSIVE WORKFORCE
IN CANADA
Actively contributed as a
member of the Canadian
Council for Aboriginal
Business for
5+
There are 1.4 million
indigenous people in Canada.
As a major national employer,
we can help to develop
indigenous business leaders.
YEARS
MAINTAINED
live working relationships with
23
indigenous businesses and
communities across Canada
RECRUITED
COLLABORATED WITH
indigenous
employees
like-minded companies on
500+
“Our economy is largely driven by
natural resources, and there is not a
natural resource development in the
country, operating or planned, that
does not impact at least one
indigenous community. Our approach
to unique, sustainable partnerships
enables us to support the generation
of positive economic, social and environmental outcomes for the
communities in which we live and work.”
90+
Aboriginal employment
and inclusion
on remote site support services
contracts, and transmission and
distribution projects
STEPHEN WATSON, Senior Vice President, Strategic Growth, Carillion Canada,
and Board Director of the Canadian Council for Aboriginal Business
READ THE FULL STORY
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We’re opening doors to the workforce of the future
400th PERSON IS
READY FOR WORK
BRINGING OUT THE TALENT
IN OUR COMMUNITIES
“Carillion’s contribution to the
success of the Ready for Work
programme is truly impressive and
highlights the powerful role that
business can play to tackle some of
our most pressing issues. Carillion is a
compelling example of the very
practical way in which business can
create vibrant communities.”
We’ve reached two milestones in our Ready
for Work partnership with BITC. By helping
disadvantaged people develop skills, build
confidence and access work, we are helping
to secure our own pipeline of talent as well.
STEPHEN HOWARD, Chief Executive of
Business in the Community
PROVIDED OUR
TRAINED
100+
Carillion volunteers
to be job coaches,
including 20 female employees who will
mentor eight long-term unemployed women
1,000
th
HELPED
Steve* become the
work placement
400th
since we started supporting
the programme
WATCH OUR READY FOR WORK VIDEO
person to be
Ready for Work
as a direct result of
our support
Name changed to protect confidentiality.
*
READ THE FULL STORY
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We’re creating ideas for our customers
NEW APPROACHES
TO SAVINGS
TRIED, TESTED AND TRUSTED IN MENA
Was more efficient through online
Skype interviews and car-sharing
SAVING OVER
£6,000
A range of projects across our Middle East
and North Africa (MENA) operations have
seen promising results through trying,
testing and refining new approaches.
a month
Reused materials on site
SAVING
Used more efficient energy
generators, including
automatic switch-off
£212,000
Found a tarmac alternative
SAVING
SAVING
£38,500
c.£700,000
a month
Replaced water bottles
with dispensers
SAVING
£18,200
a month
READ THE FULL STORY
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VALUE FOR THE ECONOMY
Profitable businesses have a powerful opportunity to add value to the
economy and wider society. The hospitals, schools and communities we build,
manage and maintain are connected by the roads and railways we create and
service. In doing so, we create environments where commerce can thrive,
supporting sustainable economic growth through jobs and procurement.
Put simply, building a successful business and tracking the profit contribution of
sustainable actions are the only ways to build a truly responsible business. This
philosophy helps us win new work, which creates local jobs for local people
and economic regeneration. This section demonstrates how a responsive and
responsible business can also be a profitable one – for the long term.
BITC CR INDEX*
MEGATREND
OUR CONTRIBUTION
Trust in business, regional growth and support for
local suppliers are becoming key enablers for
sustainable economic recovery and regional
regeneration. Issues vary from sector to sector,
but six common challenges exist: innovation,
skills, access to finance, building capability in small
and medium enterprises (SMEs), strengthening
collaboration and creating more resilience across
supply chains.
We spend £3.4 billion with more than 7,200
companies in our supply chain, we provide an
Early Payment Facility for suppliers and we won
the PwC Building Public Trust Award for
FTSE 250 Sustainability Reporting for an
unprecedented third consecutive year. We work
with suppliers as partners with mutual interests,
helping them to build skills through the Supply
Chain Sustainability School. A prime focus for us
is to support SMEs – 31% of UK supplier spend
went to SMEs in 2015, while 58% went to local
businesses in general.
Source: UK Government report, Strengthening UK
manufacturing supply chains: An action plan for government
and industry, 2015
Carillion score
96%
85%
All Index participants
97%
2014
96%
or 4-star
ranking 90%
91%
2015
2016
Over 300 separate pieces of evidence underpin our ranking.
BITC CR Index reports results as 2016, survey submissions are made in 2015
*
“Sustainability should be extremely
important to all businesses in this
country. As Minister for Civil Society
I see many examples of good
practice, including staff volunteering
alongside charities to share skills
and experiences in a mutually
beneficial way and creating better
outcomes for those in need. Carillion
is one such positive example.”
HOW WE’RE ADDING VALUE
£3.4bn
Investing in
Integrity
ROB WILSON MP,
Minister for Civil Society
2015
TARGET
2015
2016
2020
PERFORMANCE TARGET TARGET
Carillion will contribute
£32.5 million to profitability
through sustainability actions
£33.8
million
Achieve Level 5 of Sustainable
Procurement Task Force
Flexible Framework
Level 5
40% of suppliers to respond
positively to sourcing materials
and products from responsible
and ethical sources
25%
£34
million
£40 million
Level 5
Start to implement
the principles of
new ISO 20400
Sustainable
Procurement standard
40%
100%
£
procurement
spend
Charter Mark
58%
of UK supplier spend
to local businesses
(2014: 51%)
FM Company
of the Year
Emrill, a
Carillion Joint
Venture in MENA
VIEW ALL TARGETS
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BUILDING A SUCCESSFUL BUSINESS
In 2015, our sustainable actions and behaviours made a net profit contribution of £33.8 million
(2014: £27.2 million). This surpasses our target of £32.5 million and puts us firmly on track
towards our 2020 target of £40 million.
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BUSINESS
BETTER
SOCIETY
£m
2013
2014
2015
Total revenue (excluding Joint Ventures)
3,332.6
3,493.9
3,950.7
Operating costs
2,414.7
2,507.8
2,828.3
Employee wages and benefits
751.0
777.7
922.7
Payments to providers of capital
100.7
103.5
116.5
Payments to government (taxes)
7.8
7.7
7.5
Charitable and community giving through a combination
of employees’ time, cash and in-kind donations
1.8
1.8
1.9
Economic value retained
58.4
97.2
86.2
FUTURE
BETTER
MANAGEMENT
& REPORTING
We respond decisively to challenging market conditions and
continue to build a lean, resilient business that is capable of
delivering economic growth. We have tested this approach
on even our most complex projects.
Our Vision is to be the trusted partner for
providing services, delivering infrastructure
and creating places that bring lasting benefits
to our customers and the communities in
which we live and work.
Around half of the project’s funding was based on the
scheme’s regeneration potential (and provided by the
European Regional Development Fund), given that the road
passes through an economically deprived region: “It will kickstart regeneration, allowing people to get to and from jobs,
and hopefully encourage businesses to open up along the
road,” comments Mike Cummine, Carillion Project Manager.
To support local businesses, 84% of the project funds went
to Welsh companies, reflecting an estimated economic
benefit of £180 million. Nearly two-thirds of the team
supported work experience, community volunteering and
schools engagement, investing £64,000 and supporting
4,100 pupils.
Carillion wins Public Trust Award
Trust in business came under threat in
certain sectors during 2015, so we were
especially proud to win the PwC Building
Public Trust Award for a third successive
year. Independently assessed, the review
process examines the depth and relevance
of sustainability reporting offered throughout
the publicly available information provided
to stakeholders. Carillion was commended
for a clear reporting structure, honesty
around our challenges and a robust business
case for sustainability, quantifying our profit
contribution and strong governance.
One judge summed up: “This is outstanding
sustainability reporting, easy to engage with
and navigate – and making a strong case for
sustainability throughout.”
An on-site Job Shop was created in partnership with Blaenau
Gwent Council, with 99% of the workers employed through
this scheme being local residents. It was the first project in
Wales to receive the status of a National Skills Academy
for Construction, offering 86 new-entrant trainee jobs and
27 apprenticeships at Levels 2 and 3.
READ MORE IN OUR ANNUAL REPORT AND ACCOUNTS
Tried
We have a track
record in developing
sustainable, costeffective solutions
with our customers
across government and
commercial sectors. We
create positive legacies
where we work and live,
focusing consistently
on a quality of service
that is valued by the
communities we serve.
BETTER
Trusted
In 2015, we finished constructing a section of the A465 in
South Wales. Part of the Heads of the Valleys project, it
connects Abergavenny in the east with Neath in the west.
Eager to overcome challenges even at the design stage, the
team applied a new logic. For example, by reusing excavated
material to create a large embankment, they designed out
the need for a 170 metre-long viaduct – saving significant
costs and carbon.
The value we bring to the global economy
ENVIRONMENT
Tested
Regenerating a region: South Wales
How did we do this? We innovated, we reduced waste, we improved process
efficiency, we found clever ways to minimise travel and we worked with our supplier
partners. Our own ‘tried, tested and trusted’ ethos is an approach that we believe
makes sustainability business-critical rather than ‘nice to have’.
BETTER
This single project shows the potential of how small, local
interventions – and sustainable thinking – can catalyse
economic regeneration on a large scale.
Finalist: Responsible Business
of the Year Award
We were selected as one of five finalists
in BITC’s Responsible Business of the Year
Award 2015. The award recognises those
who integrate sustainability issues across
their strategy and operations, as well as
inspiring others to stimulate long-term
societal and environmental change.
2,300+ hours
of training delivered
to senior employees
in competition,
business and ethics
Respecting the rights of our people and
communities is vital to building trust. We work
hard to ensure that our Values are at the heart
of all that we do, and we strive for fairness and
transparency in all our interactions.”
Our submission focused on strong
leadership, transparency and collaboration
with other organisations, highlighting the
scale and significance of our impact across
our international operations.
RICHARD TAPP, Group Company Secretary
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OVERVIEW
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BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
The Dubai Chamber of Commerce has very
stringent criteria on the basis of which the CSR
Label is awarded. Using international standards this
recognition truly reflects our uniqueness as the
leading facilities management company in the
Middle East, for which we openly declare
volunteering initiatives, equal opportunities, staff
engagement, commitment to the communities that
we work in and, most importantly, delivering a
sustainable business.”
JASON RUEHLAND, Emrill Managing Director
Tracking, declaring and
independently verifying
sustainability’s £33.8 million
profit contribution is, we believe,
critically important and still
relatively new in our sectors and
other organisations. While we’ve
set ourselves an incredibly tough
target, we’re regularly told how
essential and powerful this
evidence is in underlining the
case for sustainability and its
strategic impact on building a
successful business.”
BETTER
ENVIRONMENT
BETTER
BETTER
FUTURE
MANAGEMENT
& REPORTING
Building customer trust
Our sustainable solutions help customers save costs and build their reputations
as responsible organisations. Increasingly, customers expect us to demonstrate
a proven ability to deliver smart contributions to sustainable operations.
GOING DIGITAL WITH TWO VERY DIFFERENT CUSTOMERS
Nationwide
Financial service provider Nationwide
is transforming its retail branch network
to gear up to a digital society. As the
provider of facilities management (FM)
services to Nationwide, we are working
together to ensure a seamless transition.
The Carillion–Nationwide team won the
British Institute of FM Team of the Year
Award in 2015. Working together, the
team found ways to help Nationwide
make savings of just under £500,000
in energy bills and become the first high
street financial institution to achieve the
Carbon Trust’s triple standard.
What next?
We have signed up to QBE Insurance Group’s Premiums4Good initiative.
This means 25% of our insurance premiums with QBE are invested in
projects that benefit the environment, disadvantaged groups and the
community. These may include Social Impact Bonds or Green Bonds. The
key difference with Premiums4Good is that the investment is made directly
into projects that deliver benefit to communities and the environment,
rather than into general ethical or environmental funds.
SOCIETY
Providing a great customer experience is clearly critical for an integrated services business,
underpinning the strong relationships we have developed with customers across our UK
and international markets. Leading the way through sustainability plays a key part in those
customer experiences and in our supply chain partnerships.
RICHARD ADAM, Group
Finance Director
Socially responsible investment
BETTER
BUSINESS
LEADING THE WAY WITH CUSTOMERS
AND SUPPLIERS
AL FUTTAIM CARILLION AND EMRILL
AWARDED CSR LABEL
In 2015, the Dubai Chamber awarded its Corporate Social Responsibility
(CSR) Label to Al Futtaim Carillion and Emrill, two Carillion Joint
Ventures in the Middle East. This voluntary standard recognises a
structured approach to responsible business, based on international
best practices implemented in the Middle East.
BETTER
We want to maintain and even
increase the progress we’ve made
in our profit contribution through
sustainability. We’re often told that
this is a unique and powerful
confirmation of the business case
for sustainability, so we’re targeting
a net £34 million contribution in
2016, keeping us firmly on track
towards our 2020 target of
£40 million. We will continue to
help employees see how their role
contributes to profitability and
sustainability, and to make clearer
links between sustainability and its
work-winning benefits.
a
Establishing strong
relationships and a
collaborative approach,
using collective strengths
from ourselves and from
our customers, has led to
innovation and best practice,
exceptional sustainability
achievements and delivery
of excellent service to
our customers.”
Nottinghamshire
University Hospitals
Patient meals at Nottinghamshire
University Hospitals NHS Trust are ordered
through a mobile app. Patients select food
items (as opposed to set meals) up to two
hours before food service. This process
was developed in partnership with our
catering supplier and has cut food waste
less than 10% (from 18%). This simple
change will save £300,000 a year, and
has already significantly improved patient
nutrition. We’re now targeting just 6% for
food waste.
NIGEL TAYLOR, Managing
Director of Services
2020 target:
£40 million contribution
to profitability through
sustainability actions
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OVERVIEW
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BUSINESS
BETTER
BETTER
SOCIETY
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
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BUSINESS
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SOCIETY
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ENVIRONMENT
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FUTURE
MANAGEMENT
& REPORTING
Healthy meals win work
We provide school meals to around 125
Oxfordshire schools and our priority is to offer
nutritious food choices. We designed a healthy
menu, with our suppliers e-foods and Brakes
freshly preparing up to 75% of meals on site.
We have also encouraged pupils to grow food
themselves and understand produce sourcing
by taking them to visit local farms. Working
together with our customer Oxfordshire
County Council, we achieved a Food for Life
Bronze Award and are now aiming for Silver.
CARILLION CANADA EMPLOYEE SAVES HOSPITAL COSTS
Great companies are built on great ideas, with each of us playing an important
role in our company’s success. That’s the foundation of the Carillion Ideas
Programme. Kevin Murray, a Carillion skilled tradesman at our Sault Area
Hospital contract in Canada, submitted an idea that saved the company
maintenance costs and provided
exceptional savings to our client. With his
detailed knowledge of the building
systems, Kevin determined that we could
install a boiler sequencer for approximately
$450 (£238), improving regulation of the
hospital’s heating and cooling sequence.
It is estimated that Kevin’s idea will save
the hospital as much as $45,000
(£24,000) over an eight-month period.
Transforming customer experience
We measure customer satisfaction through
the global standard Net Promoter Score (NPS),
and we scored +36 in 2015, broadly consistent
with the previous year. This international
standard, ranging from -100 to +100, is based
on how likely customers are to recommend
Carillion’s services, enabling us to benchmark
our performance against other organisations.
Keeping a stable NPS score in 2015 was
excellent, as we successfully mobilised an
unprecedented volume of new UK services
contracts, and we believe it positions us at the
forefront of the sectors in which we operate.
Highly
Commended
British Institute of
Facilities Management
FORENSIC SERVICES AND
CORONER’S COMPLEX,
Carillion Canada client
Sustainable procurement
+36
With an international procurement spend of
£3.4 billion and more than 7,200 suppliers
reviewed on their sustainability performance,
we have the leverage and the responsibility
to support our suppliers with sustainability.
Net Promoter Score
(2014: +37)
Through our Sustainable Procurement Steering
Group, we submitted extensive evidence to
achieve the highest benchmark (Level 5) of the
UK Government’s Sustainable Procurement
Task Force Flexible framework at the end of 2015.
The framework is a voluntary self-assessment
mechanism for organisations to measure and
monitor their progress on sustainable procurement.
TRANSFORMING OUR CUSTOMER
EXPERIENCE CENTRE
Operating 24 hours a day, seven days a week, our team in
Sheffield has provided services to our customers for 11 years.
They take around 1.5 million calls, emails, letters and social
media contacts, related to the 100,000 buildings and sites they
support. However, a succession of challenges was leading to
disappointing customer satisfaction (NPS) scores and
unengaged employees.
Our Sustainable Supplier Charter applies the Chartered
Institute of Procurement & Supply’s (CIPS’s) Policy
on Purchasing Ethics in our UK operations. A similar
standard is applied in Canada, through the principles
of the Canadian Institute for Supply Management.
Taking the initiative to turn things around, the team renamed
itself the Customer Experience Centre (CEC). Employee forums,
meetings and competitions boosted productivity so much that
Richard Howson, Carillion Chief Executive, announced the CEC
as 2015’s ‘most outstanding team’. NPS scores rose from -68 to
an outstanding +73, while employee engagement escalated to
75% – the highest in the business. The team is now sharing the
learning behind its success across the organisation, and they
achieved some great external recognition in 2015: the Institute
of Customer Service awarded them the Strategic Customer
Service Leadership Award in March, and the British Institute of
Facilities Management highly commended them for ‘Impact on
FM Customer Service’ in October.
Our partnership model
Our preferred supplier database tracks each
supplier’s sustainability credentials. We help them
improve performance and access resources; for
example, Step Up is our programme designed to
help our suppliers ‘step into the future’ through value
creation and right-first-time delivery and installation.
Carillion is one of the
only private sector
organisations that
demonstrates a
commitment towards
their tenants.”
24
Our 2015 target: we set a
stretching goal for 40% of
our suppliers to respond
positively to sourcing
materials and products
from responsible and
ethical sources
We achieved: 25%
(2014: 35%). Falling short
in this target was due
partly to a high number of
suppliers going through
re-accreditation, and
partly to more rigorous
self-assessment, which
showed us that there’s a
real opportunity to work
more closely here.
See Targets and
performance
All supply chain
teams have completed
the ethics module
of the CIPS
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OVERVIEW
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BETTER
SOCIETY
BACK TO SCHOOL WITH OUR SUPPLIERS
Carillion has been a funding partner of the Supply Chain
Sustainability School since 2013. This award-winning,
online learning facility provides free training and action
plans for suppliers across the built environment, and nearly
1,000 of our suppliers are members.
Senior members of our supply chain teams serve on its
various specialist groups and David Picton, our Chief
Sustainability Officer, is a Board Director of the School.
David also chaired the launch programme to expand the
school’s coverage in 2015 into the FM and services sector.
The school is an entirely voluntary initiative, free to all
suppliers, and designed simply to help them increase their
sustainability skills across the full built environment.
BETTER
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
Carillion is standing shoulder to shoulder
with other major industry partners
– contributing funds, helping to create
content and leadership governance to
grow sustainability skills. If we are to
develop and maintain tomorrow’s
buildings and infrastructure, we must act
today to ensure the next generation of
tradespeople are suitably skilled,
prepared and conscious of their impacts.”
BETTER
BUSINESS
BETTER
SOCIETY
WOMEN IN THE SUPPLY CHAIN,
BANGLADESH
Our supplier Men’s Workwear UK has been working to
improve conditions in its factory in Bangladesh (where it
makes its Alexandra brand). Focusing on female workers,
the project is an educational programme that trains
women in nutrition, health and finance, raising awareness
on issues ranging from feminine hygiene and sexually
transmitted diseases, to financial planning.
After the training, 49% used sanitary products (compared
to 30% before), and 64% had a formal savings plan. We will
continue to support Men’s Workwear UK in this proven
empowerment initiative.
MANAGEMENT
& REPORTING
A key part of our sustainability
strategy is to use timber from
sources that meet Forest
Stewardship Council (FSC)
standards and we are also
working with our supply chain
partners to meet this aim.
4,000
accredited
SME business
suppliers
85%
of suppliers
using the
Early Payment
Facility would
recommend it to
other suppliers
58%
of spend in the
UK was local
(2014: 51%)
31%
of UK supplier
spend went to
SMEs, exceeding
UK Government’s
recommendation
of 25%
‘3
Trees’
We were one of the first British
businesses to sign up to WWFUK’s forest campaign, committing
to responsible forest trade and
100% sustainable timber and wood
products by 2020.
(highest possible
score) in WWF
review of timber
procurement
What next?
We believe that our new assurance mechanism, enhanced
customer feedback arrangements and a refreshed
governance model will put us on track to achieve our
future Net Promoter Score targets of +42 in 2016 and
+44 in 2017. We are also scaling up our reach to both
customers and suppliers by becoming a founding partner
of the RBS Innovation Gateway. The collaboration will
offer insight into the latest know-how that will help us
differentiate our offer and share implementation costs
with other Gateway partners.
In our supply chain, we will work hard to improve the
percentage of suppliers responding positively to sourcing
materials and products from responsible and ethical
sources. To support this we will review, amend and add
guidance to our assessment questions. We will drive our
FSC timber approach further down the supply chain,
alongside other ethical issues, such as human rights – an
increasingly prominent issue for the support services sector
in our Middle East and North Africa operations. Making
payment terms even fairer, we will extend the Early Payment
Facility to cover even more of our UK spend by 2017.
We are continuing to define ‘local’ with our customers and
will look to understand more about SME spend outside
the UK. In the Middle East, we will introduce
an SME pilot programme and, in Canada, we will begin
tracking the number of Certified Aboriginal Vendors
in our database to prioritise relationships with
indigenous communities.
2020 target: 100% of suppliers to
respond positively to sourcing
materials and products from
responsible and ethical sources
ERICA RUSSELL, Doctoral Practitioner,
University of Surrey, commenting on leading a
research programme into Carillion’s ability to
effect change through influence and leverage
across the whole lifecycle of the product,
supported by the University of Surrey
BETTER
FUTURE
Sustainable timber sourcing
of suppliers
performed at our
highest ‘A’ grade
for sustainability
I have found an openness and
transparency in Carillion to support the
debate and discussion around
sustainable supply chain and the concept
of whole lifecycle thinking. There is an
understanding of the need to balance
ethical and economic demand; (but) the
challenge now is to translate this into a
targeted and effective approach that
offers value throughout the supply chain
and the wider community. (This is the
next phase of research.)”
BETTER
We actively select local, small and medium
enterprise (SME) suppliers for our projects where
we can. In 2015, 31% of our UK supplier spend
went to SMEs, exceeding the UK Government’s
recommended 25%. Our Small Business Charter
shows them what they can expect when working
with us, and our total spend with local businesses
rose further to 58% in 2015 (2014: 51%) just short of
our ambitious target of 60%.
8%
Achieved the CIPS Corporate
Certification Standard for our
purchasing policies, systems and
processes across our UK supply chain
ENVIRONMENT
Small, local, fair
To maintain good working relationships and support
economic stability, we believe in paying suppliers
on time. As well as being a signatory to the National
Specialist Contractors’ Council Fair Payment Charter,
our work to introduce the Early Payment Facility
was a first for our sector. Around 550 suppliers now
opt for early payment and the scheme was further
extended in 2015 to cover more of our UK spend.
DAVID PICTON, Carillion Chief Sustainability
Officer and Board Director of the Supply
Chain Sustainability School
BETTER
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OVERVIEW
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BUSINESS
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ENVIRONMENT
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& REPORTING
OVERVIEW
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BUSINESS
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SOCIETY
ENVIRONMENT
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BETTER
FUTURE
MANAGEMENT
& REPORTING
BETTER SOCIETY
VALUE FOR SOCIETY
Creating a better society is fundamental to our success as an international
business. By providing safe, inclusive and inspiring jobs and training, we will be a
more attractive employer. By understanding and meeting community needs
through focused, flexible and skills-based volunteering, we can stimulate dynamic
and engaged local economies. This is becoming a key differentiator for Carillion.
We try to understand what communities want from us, rather than telling them what they
need. Newly mobilising contracts meant that we were just one percentage point off our
ambitious plan for 100% of our contracts to have a Community Needs Plan, but we continue to
improve (2014: 96%). Working with our community partners, we will remain focused on 100%.
MEGATRENDS
OUR CONTRIBUTION
The built environment sectors face key skills
shortages and a decline in young people studying
science, technology, engineering and maths
(STEM) skills. Many communities are also growing
fast, with two-thirds of the world’s population
expected to live in cities and urban areas by 2050
(UN forecast), which brings risks of social tension
and inequality.
We are the lead corporate partner for Your Life
to promote STEM studies, and we supported
nearly 45,000 children by volunteering over
8,000 hours of our time in schools. Our thought
piece on Sustainable Cities highlights the
importance of collaboration to support
sustainable communities and also looks at what
a ‘green’ city might look like, using the
technologies and know-how of the 21st century.
18 million
hours
worked without a Lost Time
Incident, Al Futtaim Carillion’s Four
Seasons Hotel project, Abu Dhabi
GENDER DIVERSITY:
RECOGNITION IN 2015
BITC Diversity Champion
Award to Kat Fidler for driving
our Working Mums Network, UK
The largest trainer and
employer of construction
apprentices in the UK – in 2015,
we ran over 1,700 placements
Celebration of Achievement
Award to Nicole Bouchier
from Alberta Women
Entrepreneurs, Canada
18%
First-ever listing in The Times
Top 50 Employers for Women
Silver, BITC Diversity and
Wellbeing Benchmark for Gender
2015
TARGET
2015
PERFORMANCE
2016
TARGET
2020
TARGET
22% of employees utilise the Carillion
special leave policy for volunteering in
areas where we work
18%
25%
50%
60% local spend including small and
medium enterprises (SMEs) in the UK
58%
60%
Maintain
at 60%
100% contracts to have a Community
Needs Plan1
99%
100%
Maintain
at 100%
A period of three months is permitted during mobilisation of a
new contract before a Carbon Reduction Plan is required and any
contracts with a duration of less than six months are excluded
from the Carbon Reduction Plan requirement. The IMS Director
must approve any additional exclusions for exceptional reasons,
such as only one person working on contract.
1
28
VIEW ALL TARGETS
of our leadership
population is
female, on track for
our 2020
target of 30%
400th person
supported into
employment
via the Ready for
Work programme
Supported 44,810 children
by volunteering over 8,000 hours
of our time in schools* during 2015,
which equates to a £208,000
investment from Carillion
*Including school governor duties
and school career days.
29
BETTER
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BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
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FUTURE
BETTER
MANAGEMENT
& REPORTING
BETTER
OVERVIEW
PROVIDING BETTER PROSPECTS FOR OUR PEOPLE
Given the nature of our business, safety and health will always be our number one priority.
But we’re also investing in the workforce of the future – respecting human rights, creating inclusive
workplaces and offering development programmes that bring out people’s potential. In doing so,
we strengthen the future talent pipeline for our business.
BUSINESS
ONE Road to Safety
In November 2015, we launched ONE
Road to Safety, a campaign to keep our
people safer on the road. It’s based
on getting people to think differently
across four areas: people, behaviour,
vehicles and management.
In 2016, there will be a monthly focus
on a different element of the campaign.
We will also launch the Carillion Permit
to Drive as a mandatory requirement
for all those who drive on company
business. The permit will be awarded
through a mixture of risk profiling, incar training and online training.
Safety, health and wellbeing
Our target is zero accidents and zero ill health caused, or made worse, by work.
Our thinking is proactive behaviour change: removing the causes of accidents.
This is helping us to progress towards Target Zero.
ATCH OUR ONE ROAD
W
TO SAFETY VIDEO
BETTER
SOCIETY
BETTER
ENVIRONMENT
In Canada, Carillion
Bouchier implemented a
360 Walk-A-Round initiative,
which encourages drivers
to check for hazards
around their vehicles
before driving
BETTER
BETTER
FUTURE
MANAGEMENT
& REPORTING
Carillion Rail
Resourcing has
developed a
driver and vehicle
management and
fatigue process
Carillion Construction Services
is applying Building
Information Modelling (BIM)
software and 4D sequence
models to reduce risks for
construction vehicles on the
Morpeth Northern Bypass.
Find out more about BIM
Safety first
Where accidents, incidents or near-misses
occur, we investigate the causes fully. We
then take actions to prevent the incident
recurring. Measuring how we’re doing on
this is not simply about reporting; it helps
us track our progress and challenges us to
do better.
LOST TIME INCIDENT
FREQUENCY RATE (LTIFR)
PER 200,000 HOURS WORKED
0.30
0.293
0.25
20
million
hours
worked without a Lost
Time Injury, the Public
Authority for Social
Insurance, construction
project in Oman
0.241
0.20
0.188
Health Like Safety
BS OHSAS 18001
for health and safety
management systems
– UK, Middle East
and North Africa
Our Health Like Safety strategy
FIT FOR WORK
Ensure safety critical workers are fit for work, clearly
defining and implementing fitness for work criteria
for safety critical workers
HSE Initiative
of the Year,
Carillion
Alawi (Oman
Construction
Week Awards)
PREVENTING CANCER
Prevent work-related cancers and other chronic ill
health conditions caused or made worse by work
WELLBEING
Promote wellbeing and healthy lifestyles, while recognising
that they remain matters of personal choice. Use the
workplace as a venue to raise individual awareness of
personal health issues and promote healthy behaviour
0.15
0.10
0.05
0.00
2015 TARGET
2013
2014
2015
EE FULL DATA IN OUR
S
PERFORMANCE AND GRI
APPENDIX
for psychological health,
Canadian Occupational
Safety magazine
Defibrillators
contributed to saving
two lives on the
Battersea Power
Station project
PREVENTING HEART ATTACKS
Mitigate the impact of cardiac arrest at work by
implementing a risk-based policy on the provision of
automated external defibrillators (AEDs) to improve
survival chances from cardiac arrest while at work
WE ACHIEVED
To reduce our All Accident 51% reduction (2014: 49%) on 2011, with a
Frequency Rate by 56%
rate of 2.23 (2014: 2.31). We believe that
(against a 2011 baseline)
our target shortfall is due to a higher
number of minor safety incidents, and we
will continue working to address these
Silver
Award
HEALTH CHAMPIONS
Each site must have a nominated Health Champion
and its own plan targeted to local needs
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OVERVIEW
BETTER
BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
Our Global Corporate Challenge saw a phenomenal uptake
in 2015, encouraging teams of employees to become more
active. Around 2,150 people took part, averaging over 13,500
steps each day and reporting an average weight loss of 4kg
per person. Nearly two-thirds reported an increase in either
productivity or concentration as a result.
In 2015, we also focused our attention on mental health,
following feedback from our employee survey that this was
important to them. We made a pledge to the Time to Change
campaign, run by Mind and Rethink Mental Illness, aiming to
encourage conversations on mental health and build on our
action plan, which includes:
•a Stress and Wellbeing Charter and Working Group;
• a Stress and Mental Health Charter;
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
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BETTER
ENVIRONMENT
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FUTURE
MANAGEMENT
& REPORTING
Cutting Caribbean cancers
FIT FOR LIFE
CHILDHOOD OBESITY: PLAYING OUR
PART IN SOUTH TYNESIDE
Fit for Life (FFL) was a week-long campaign by
our UK Construction Services business to raise
the profile of our Health Like Safety approach.
Led by Health Champions, over 1,500
individuals from 80 contracts achieved some
great results:
We’ve built schools in South Tyneside since 2008, an
area that sadly falls into the UK’s bottom quartile for child
obesity. Working with the Local Enterprise Partnership,
we introduced a fitness challenge (based on the Global
Corporate Challenge), which encourages pupils to literally
take steps to improve their health. A dedicated website
helps them log and track progress.
•90% said FFL had helped them understand
the impact of their health and wellbeing, a
21% increase from the start of the week;
•90% said they now knew where the on-site
defibrillator was kept, an increase of 20%; and
•93% could describe cancer-causing materials,
an increase of 25%.
Did you know that Trinidad and Tobago is among
the top three countries for cancer mortality in the
Americas? Our Caribbean team is tackling this by
engaging with the Trinidad and Tobago Cancer Society.
Male employees are now screened for prostate cancer,
while female employees are screened for cervical and
breast cancers.
Over 1,000 pupils registered from 29 schools, with 96%
saying that they felt fitter afterwards, 80% had improved
their diet and 83% felt more positive overall. Pupils at the
winning school (Cleadon Academy) ‘travelled’ 12,197 miles
during the challenge – equivalent to halfway around the
world, and without emitting any carbon.
•Your Say survey questions on mental health;
•a review of mental health-related referrals to our
occupational health providers; and
• a stress awareness training module.
Human rights
We have an ongoing commitment to continue improving the living and
working conditions of our people – not just for our direct employees but
also for our subcontractor teams.
In practice, this means sharing our values on working conditions and safety standards
with international government, non-government and independent organisations.
Employers for Carers
One in nine people in the UK is a carer – often trying to
juggle busy jobs with the responsibility of managing the
needs of someone who is older, ill or disabled. Carillion
joined 85 other companies in 2015, signing up to the
Employers for Carers forum to provide carers with access
to resources, practical support and advice.
While some life events can be predicted,
none of us knows when we might find
ourselves trying to balance work with
caring responsibilities either long or short
term. In my time at Carillion I have
supported elderly parents with day-to-day
living and eventually end-of-life care. I
found the support of the company hugely
valuable and wanted all of our people to
feel that their caring requirements were
also supported not just through our
flexible working arrangements but by the
help Employers for Carers can offer.”
Refining procedures in Qatar
We have operated in Qatar since 2009
and employ around 1,100 people directly,
with a further 6,000 employed through
our subcontractors. Our policies and
procedures support the freedom of
association for workers – for example,
we operate employee forums even
in countries that restrict the ability of
workers to form trade unions.
We’ve been working hard to review
the living and employment standards
of over 6,000 people, employed
across more than 150 subcontractors.
Our audit identified a small number of
cases where subcontractors were not
meeting our high standards, so we
immediately introduced spot checks
and new processes to work with our
suppliers to ensure compliance.
JANET DAWSON, Group HR Director
32
Our preference is to work with
subcontractors to raise standards, aiming
to benefit the whole industry, but we
will cease to work with such companies
where they do not meet the welfare and
living standards we expect for people
working on Carillion projects across all
our operations.
For more information, see our website
and our response to the Business
& Human Rights Resource Centre’s
questions for construction companies
regarding working conditions in Qatar.
In preparation for new UK modern
slavery legislation, we reviewed the
Government’s guidance, established a
steering group of senior managers and
our Group Head of Compliance met the
UK’s Anti-Slavery Commissioner.
With robust governance
already in place, we will
continue to implement best
practice with the aim of
complying fully with the act
[Modern Slavery Act] by 2017.
An example of this is that we
now ensure that employment
contracts are available in seven
different languages, so that the
applicant can understand what
they’re signing.”
ANDY JONES, Managing Director,
Middle East and North Africa
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An inclusive workplace
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Forty-six graduates were involved in our
development programme in 2015 (compared
to 33 in 2014). Listening to feedback from our
stakeholders, and thinking about our own
inclusivity agenda, we decided that requiring
applicants to have a university degree could
limit our access to talent.
To bring out the value of this, we need to go beyond ‘traditional’ recruitment and tap into overlooked pools of talent. This is
one of the reasons why we proactively champion opportunities for women in engineering and for potentially disadvantaged
groups, such as ex-offenders, ex-service personnel and the long-term unemployed. Last year, our stakeholders told us they
wanted to hear more about our activity in this area, so we’ve been working hard to share our stories.
WOMEN’S DAY IN OMAN
So now there is no requirement for new joiners
to Carillion to have a degree, since we felt this was
socially exclusive. Instead, we’re embracing all
forms of education, experience and training that
a person may offer.
To recognise the contribution of women in the country, His Majesty the Sultan of
Oman announced an annual day of celebration. Carillion Alawi marked the day
with an event that gave women the opportunity to share their experiences.
Sessions included promoting resilience and stress reduction.
Feedback was that female attendees (employees and wider) felt recognised,
valued and respected, and this has resulted in stronger relationships between
teams. The day was featured in the national press, raising our profile as an
employer of choice for women. Indeed, Carillion Alawi saw an increase in female
employment applicants following the event.
Honouring our heritage
There are 1.4 million indigenous people in Canada, and we aim to
be the nation’s leading company in developing indigenous leaders.
To be a business partner of choice for people of all
backgrounds, we will:
Language classes
At the Battersea Power Station Phase 1 project, we
arranged free English lessons for 40 Romanian
employees. The eight-week course covered basic
phrases and grammar and candidates could take an
exam at the end for evidence of their proficiency in
the language.
BUSINESS
EDUCATION: IT’S NOT JUST
ABOUT THE PIECE OF PAPER
A diverse range of perspectives, languages, abilities and cultures helps us build stronger teams and
make better decisions.
Good communication is essential, as poor
communication can cost lives on a construction
site. At our Royal Liverpool University Hospital
project site, our subcontractor Heyrod is helping
Polish employees with their English by supporting
lessons after work.
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•reinvest 1% of profit (cash and in-kind) in indigenous communities;
My mum used to sign this to me when I was young,
‘If there is a single lesson in life that a young deaf
person must learn, it’s that wishing for something
does not work, but education and hard work does.’
SkyBlue saw something in me, took a chance and now
I am a productive member of staff. Thank you Rachel
and to everyone at SkyBlue who believed in me.”
JORDAN NEWELL, working in logistics
at Nottingham University Hospital
We are part of the Active Citizens 205 Flags Project,
which aims to engage and integrate third country
nationals in three London boroughs into British
society, through a new programme that includes
interventions around health, careers and skills.
•engage 50% of our workforce in volunteer opportunities
within Aboriginal communities;
•support Joint Ventures and partnership opportunities;
•recruit 20% of our workforce from the indigenous population;
and
•deliver sustained positive outcomes for communities.
Outland Camps in Thunder Bay (acquired by Carillion in 2015)
have been jointly running the First Nations Natural Resources
Youth Employment Program. So far, the programme has seen
370 graduates (a massive increase from 52 in 2015) from 52
northern indigenous communities, made 864 job offers and an
impressive 87% of participants have gone on to employment or
education within the natural resources industry.
So far, we have recruited over 500
indigenous employees in Canada and
have partnered with the Canadian
Council for Aboriginal Business and the
Aboriginal Human Resource Council.
Through Carillion Bouchier, Carillion
Rokstad and Carillion Outland we have
the potential to make connections with
over 600 indigenous communities and
to develop both vocational and
leadership skills.”
SIMON BUTTERY, Managing Director of
Carillion Canada
Progressive
Aboriginal Relations
Bronze
Award,
Carillion Canada
Two Ticks disability
stamp from the UK
Government, reflecting
five commitments to
being a fair employer to
those with disabilities
416 hours
of cultural awareness
training delivered,
Carillion Canada
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Towards gender balance
Over a third of our people are female, so the imperative to
create leadership teams that reflect, support and develop
future female leaders has never been greater. Leadership
diversity is a key objective in our 2020 sustainability
strategy, underpinned by the identification of Gender
Pathways targets for the end of the decade. This ambition
is deeply rooted in the belief that gender diversity
improves decision-making, inspires our people and is
simply the right way to build a sustainable business.
In 2015, 18% of our overall UK leadership population were
female, and we have brought more grades into scope
this year to ensure that, by 2020, our wider management
population (not only our most senior leaders) will reflect
the gender balance of the people they lead. We are
targeting 30% of our grade A to D managers to be female.
To make it easier for women to stay with us, we
support the UK initiative Women in Leadership.
We’ve also set up Working Mums (and Dads)
Networks. The 200-strong Mums Network has so far
volunteered 990 hours to support gender diversity
initiatives – the equivalent of approximately £23,400
of investment from Carillion.
Our Support Network for Operational Women
Engineers (SNOWE) links female engineers with a
support buddy.
SNOWE has pledged to:
Retention rates of maternity leave returners increased
from an average of 76% to 96%, thanks to:
1)encourage girls to study STEM subjects
(science, technology, engineering and maths);
•extending our UK maternity policy to 12 weeks’ full and
six-weeks’ half pay;
3)retain female employees in engineering roles.
•developing our flexible working policy to support a
better work–life balance;
•enhancing our leadership development programmes
to focus on female talent, including mentoring from a
member of the Chief Executive’s Leadership team; and
•building diversity skills among line managers and
introducing unconscious bias training.
Equality and Clear Assured
status for the third year running,
following the annual European
Quality Assurance audit
Women are underrepresented
in Thunder Bay, Ontario [where
we acquired Outland Camps].
By meeting and collaborating
with local agencies we were
able to show support for our
communities, gain an edge in
the recruitment process and
ultimately strengthen our overall
organisational performance.”
2)attract more women into our business via our
apprenticeship schemes; and
Already, we’ve developed a tailor-made training
module called Introduction to Technology and
Engineering, delivered it in schools and promoted
our efforts in this area to engage and attract more
women into the industry.
LYNN MACKAY, Quality Assurance
Technician talking about an initiative
to train female Aboriginal snow
plough drivers, all of whom were
then hired by Ontario Roads
MAKING IT EASIER FOR OUR LGBT COMMUNITY
The construction and support services industries can benefit from
lesbian, gay, bisexual and trans (LGBT) integration. Our intent is to
promote equality and fairness around sexual orientation and gender
identity, to create a working environment free from all forms of
discrimination and position Carillion as a leading LGBT employer.
In 2015, we signed up to be a Diversity Champion for Stonewall,
and we’ve been building a LGBT network, Connect, which will
launch in 2016. It includes representatives from across the
business and, among a range of services, offers an emotional
support network and advice on HR policies, among other
sources of support.
Women on our Leadership Development Programme
32%
23% 25%
2012
First anniversary of SNOWE
84%
of our working
mothers would
recommend us
2013
2014
43%
Helping our people grow with us
Investing in employee talent and wellbeing, from
recruitment to retirement, is essential if we are to build a
sustainable business and continue to grow. In doing so,
we meet and exceed the high standards expected of us in
a demanding market.
2015
Have Your Say
96%
In 2015, we conducted a company-wide survey, known as Your Say,
which gave our people the opportunity to tell us what they think about
Carillion and what actions they wanted to see us take. We have an
ongoing target to increase the percentage of employees who feel
proud to be part of Carillion, year on year. For the first time, we also
included two new questions related to responsible business, with some
extremely strong positive responses from across the company.
retention rate
of maternity
leave returners
36
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Your Say –
what we learned
68%
employee engagement score
+4 percentage points variance
from previous survey
An employee engagement score is a
way of measuring how committed,
proud and motivated employees are to
work for a company. Our score has
risen four percentage points since 2014.
10 questions more
response
rate
(2014: 36%)
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positive than 2014 –
an increase of 26%
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Learning and development
On the whole it is a very
positive picture. The vast
majority of us enjoy working at
Carillion and we like and
respect our colleagues.
Compared to last year, more of
us feel proud to work here.
More of us are motivated to do
a good job, and are happy to
recommend Carillion as an
employer. I was pleased to see
that more of us think our Values
make a difference to the way we
do our work. We could always
do better and I am committed to
doing my best to make those
scores even higher next year.”
RICHARD HOWSON,
Chief Executive
+
66%
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Our learning activities are designed to inspire
employees to fulfil their potential. In 2015, we more
than doubled the number of modules completed
through our e-learning system ePOD. There are
now over 95 modules available, with 12 new titles
added during 2015. These modules include topics
on sustainability and health and safety, as well as
more specialised topics, such as Building Information
Modelling and operational excellence.
We also expanded ePOD to our international colleagues
in 2015, including those in Canada, the Middle East and
North Africa, Al Futtaim Carillion and China.
For our female learners in the UK, the Spring
Forward Women’s Development Programme is
helping them explore and voice what is needed to
assume more senior roles.
Our Futures Network continues to attract more than
150 participants across all our businesses in the UK,
Middle East and Canada, bringing together the next
generation of managers and leaders who may become
part of the Carillion Leadership Programme. Two
new learning cohorts kicked off in 2015, with three
sustainability projects as part of their work, covering
diversity, carbon and employment transitions.
77% I believe that Carillion respects
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10,000 learners used
our ePOD learning
portal, 2,553 of whom
took sustainability
modules
Carillion Qatar
received an Employer
Recognition Award
for its support and
collaboration in
enriching the learning
experiences for Qatar
University’s students
and graduates
200,000
hours
of learning and
development
[not including Canada]
individual differences (e.g. cultures, working
styles, backgrounds, ideas)
Volunteering
29 questions were
in line with 2014 –
an increase of 74%
TOP THREE MOST
IMPROVED QUESTIONS
76% Carillion’s approach to communities,
people and the environment encourages me to
make a positive contribution
VARIANCE FROM
PREVIOUS SURVEY
TOP THREE HIGHEST
SCORING QUESTIONS
Q32. Senior management provide
effective leadership
+8
88
Q34. I believe that senior
management have a clear vision for
the future of this organisation
Q35. It is important to me
that Carillion operates in a
responsible way
+8
Q1. Overall, I enjoy my job
85
Q42. I would recommend
Carillion as an employer to a friend
or family member
+7
Q7. I am encouraged to get
involved in creating a safe
working environment
85
6,000 employees
volunteered over
50,000 hours to
benefit local
communities
% POSITIVE
13 years
of consistently
donating
1% of pre-tax profits
to communities
38
Volunteering is a key strategic
commitment for Carillion,
because it offers both personal
development for our people
and is at the heart of how we
create community legacies.
We offer our employees an
industry-leading six days’ paid
volunteering leave a year,
helping them to give their
skills and time to others and,
in doing so, bring new ideas
and perspectives back into
the workplace. We continue
to support BITC and the UK
Government in promoting
skills-based volunteering and
the potential introduction of a
three-day volunteering pledge
for UK companies.
In 2015, we also took the
unique step in building and
rolling out a smartphone
volunteering app, enabling
Carillion people to record
their volunteering hours,
impact and benefits. Initially
introduced in the UK, we have
subsequently extended this to
our international teams, and we
are now developing it further to
share volunteering stories.
In 2015, we set an ambitious
target of 22% of our people
taking time to volunteer,
wanting to keep up momentum
towards our long-term goal
of at least half of our people
volunteering by 2020. We
achieved 18%, with over 6,000
people giving more than
50,000 hours to support local
communities – an increase
from last year’s figure of 14%.
With new contracts starting
up last year, busy operational
teams and the acquisition of
new businesses, some people
told us that they simply hadn’t
been able to fit volunteering
into their schedules at times
– despite wanting to get
involved. This was why we set
a stretching target, and we will
continue to support our people
to give and gain what they can
through volunteering.
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Give & Gain Day 2015 highlights
Charity partners
Give & Gain Day is the only global celebration of employee
volunteering. In 2015, 643 Carillion volunteers participated.
Carillion UK’s two-year national partnership with Barnardo’s, the
leading children’s charity, drew to a close in December 2015. Our
people had raised over £155,000 and given over 1,800 hours
of volunteering time during the partnership, contributing to five
major national projects that supported 727 children leaving care.
WATCH OUR GIVE & GAIN DAY HIGHLIGHTS VIDEO
Our UK national charity partner for the next two years will be
Hospice UK, chosen by 60% of employees who voted. Hospice
UK champions and supports the work of more than 200
hospices across the country and aims to deliver the highest
quality of care and support to people with terminal or lifelimiting conditions and their families. It is the national ‘voice’ of
hospice care, and our new partnership will focus on fundraising
and volunteering opportunities with them.
AWAB SYED: TAKING THE TIME TO
GIVE SOMETHING BACK
A beacon of hope for children with HIV
A team of Carillion volunteers spent a fortnight helping
to finish Mamohato Children’s Centre in Lesotho,
southern Africa. The centre is the first purpose-built
facility to address this issue in the region and will help
over 1,500 children living with HIV per year, through
support from Carillion and other donors.
The team worked extremely hard and
met every challenge with a practical
and enthusiastic approach. Without
the help of our supporters such as
Carillion this would not be possible.”
CATHY FERRIER, CEO of the Mamohato
Children’s Centre
160
Awab Syed is a Senior ICT Engineer in Qatar who has been
volunteering for Reach Out To Asia (ROTA) for five months.
ROTA empowers local people by developing their skills in
a variety of subjects. Awab has also volunteered at Better
Connection Program, which aims to educate low-income
expat workers in Qatar by teaching essential information
technology skills on the weekends and public holidays.
He is their Digital Trainer, training other volunteers as
Digital Champions.
charities were nominated by our people to receive
£500 each via the Employee Nomination Fund
268
5 major
of our people
volunteered
for Barnardo’s
projects
supported
1,828
Sharing expertise for making money
doesn’t make much impact, but sharing
your expertise to redefine someone’s
life really makes a big difference.”
We helped 727
young people
leaving care
hours of
volunteering time
We’ve raised
AWAB JEELANI SYED, Senior ICT Engineer,
Carillion Qatar
£155,000
for Barnardo’s throughout our partnership
1,500 employees
TOTAL FINANCIAL GIVING TO COMMUNITY
(CASH, TIME, DONATIONS), £
from Oman were involved in 103 integrated
community engagement activities, helping
the team win Corporate and Social
Responsibility Initiative of the Year at the
Oman Construction Week Awards
TOTAL
1,853,035
[2014: 1,813,277]
GROUP – 360,422
MENA – 188,478
[2014: 290,593]
[2014: 144,507]
UK – 1,191,873
CANADA – 112,262
(2014: 1,164,039]
[2014: 214,138]
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What next?
On safety, ‘work at height’ will be a key focus for us
as we seek to eliminate high-risk accidents. We will
scale up our ONE Road to Safety campaign, as well as
our health and wellbeing work – for example, the new
Friend in Need initiative will encourage employees to
support one another through difficult times.
We will track our continued progress towards our
target of 30% women in wider leadership roles by
2020, aiming to reflect the differing management and
operational structures across our UK operations. This
will ensure that our wider management population
reflects the gender balance of the people they lead.
We will roll out wider unconscious bias training
and map flightpath targets throughout the decade’s
remaining years, to achieve these by 2020. We will
continue to work closely with clients, suppliers and
other organisations to help them support women
more effectively.
We will continue to focus on human rights as we
work towards reporting in accordance with the
UK Modern Slavery Act in 2017, and continue our
investment in worker welfare across our international
operations. In Qatar, we are establishing a new
employee forum to focus on employee engagement
and open communication.
We are updating our volunteering microsite and
smartphone app to help people understand how
they can get involved in their neighbourhoods.
We are stretching our target still further – to get
25% of our people volunteering – underlining our
ambition in this area, and supporting business
unit teams to provide structured opportunities for
group volunteering. Our new UK strategic charity
partnership with Hospice UK also features a network
of regional Ambassadors to help identify more
chances for people to volunteer locally and to offer
their professional skills.
Finally, we are committed to acting on the feedback
our people gave us under Your Say, celebrating the
positive and working in areas where they asked
us to address challenges. For example, we will roll out
brand new leadership development workshops that
will focus on developing and coaching our people
– aimed at supporting leaders at all
levels of the organisation.
2020 target: 70% reduction in
All Accident Frequency Rate
against a 2011 baseline
EE FULL DATA IN OUR PERFORMANCE
S
AND GRI APPENDIX
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SUPPORTING SUSTAINABLE COMMUNITIES
Harnessing the skills of the ex-Armed
Forces, UK and Canada
In Canada, approximately 5,000 ex-Armed Forces
personnel attempt to transition to civilian jobs every year.
Canada Company is a charity that connects business
and community leaders with the military, who we’re
partnering with to enhance our recruitment of veterans.
We are one of the UK’s leading providers of work
placements and job-related support under BITC’s
Ready for Work national employment programme. In
2015, we helped our 400th person into employment
through Ready for Work.
Veterans bring a desired skill set of leadership
experience, communications and organisational
skills, plus a hardened work ethic, which makes
them a great addition to the Carillion team.”
We have offered over 1,000 Ready for Work
placements over the last eight years; more than
any other business. We’ve directly employed
130 people from the scheme, of whom 12% were
ex-offenders, and 270 more have secured jobs
with other employers.
1
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The team at the Royal Liverpool University Hospital is working with HM Prison Kennet, Liverpool, to tackle
the barrier of the Construction Skills Certification Scheme (CSCS) card, which is fundamental to working on
construction sites. The team provided HMP Kennet with a mobile CSCS card-testing bus. Of the 31 who took
the test, 26 passed and four have now been offered employment on the hospital project. We are now assessing
which other trusts and organisations we could work with on this key employment enabler.
We want the majority of our volunteering activities to focus on young people and schools, and to help hardto-reach groups build the skills needed for employment. In 2014, 4% of our people volunteered in these areas,
and we almost doubled that in 2015, with nearly 7% doing so. We will continue to champion this kind of activity
through BITC’s programmes and other organisations that broaden opportunities for ex-offenders, homeless
and ex-service personnel.
Ready for Work
placements in 2015,
of which 50 turned
into employment
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Carillion is in a pioneering employers’ group that has banned the criminal conviction ‘tick box’ from job
application forms. Banning the box enables ex-offenders to compete fairly for jobs based on an assessment
of their skills first, and allows participating employers to find people from a wider pool of talent.
400th person is Ready for Work
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Empowering people through skills and employability, especially those who are marginalised, has always
been a priority for us. Our work starts in schools and continues through the workplace to retirement,
building bridges between the community and workplace.
“I thought I would never get a job. I was applying for
hundreds of opportunities and my confidence was
destroyed. I wasn’t sure what to expect from the
course because I’d never worked on a building site,
but the structure helped me get back on my feet.
Everyone was so friendly and constantly looking out
for me. Now, I can honestly say it’s one of the most
enjoyable jobs I’ve ever had. I feel like I’ve just left
school and I’m starting all over again,” Steve1, 400th
Ready for Work client.
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JIM FERRON, Vice President, Capability Development,
and Canadian Army veteran
JOE’S STORY
Since joining at 17, the military was the only career
that 27 year-old Royal Engineers sapper Joe had
known. His injury from a roadside bomb in
Afghanistan was a massive blow, both physically
and psychologically. “One minute you have your
future mapped out, the next everything is
changed,” he says. However, with a CV showing
construction experience, he was a prime candidate
for a work experience placement at Carillion, and
has since been offered a permanent job as Project
Coordinator with Carillion telent. “It was good to
know that many of my skills, like project planning,
working with a diverse team and under pressure,
are useful to a company like Carillion.”
The support services sector will be lacking over
200,000 workers a year by 2019. At the same time, we
know that 20,000 people leave the UK Armed Forces
each year, so we see an opportunity. Working with the
Ministry of Defence and the military, we help find new
careers for talented ex-forces personnel, which include:
Over 100 Carillion people also volunteer as job coaches
each year with the programme.
In 2015, we piloted a project to extend Ready for Work
to women looking to return to work. Twenty female
employees mentored eight long-term unemployed
women. Four have since found jobs.
•work experience placements for wounded
service personnel;
•Armed Forces Employment Pathway: work
placements for reservists – so far, six participants have
found full-time employment through this scheme;
•BuildForce is an initiative run in conjunction with the
Construction Youth Trust. To date, 24 service leavers
have successfully completed placements at
construction firms and 14 have gone on to find
permanent roles in the industry; and
Volunteering as a job coach has been a different
experience each time, and taught me more than
I ever expected. The biggest lesson for me was
how important work is in people’s lives, not just
to earn money but to feel like you have value.”
•we have committed to a target of registering
300 new military reservists by 2016.
Exemplar Employer for our
support to reservists and sick
or injured service personnel (UK
North West Business Awards)
SALLY HARRISON, Business Development Manager
Name changed to protect confidentiality.
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Training the workforce of the future
We champion schemes that unlock the
talent of young people through targeted
training and paid work, and we continue
to be the largest trainer and employer
of construction apprentices in the UK.
In 2015 we ran over 1,700 apprentice
placements, we increased the number of
technical apprentices across Construction
and Services to 80 a year, 14 technical
apprentices gained direct full-time
roles with us (most others go on to be
employed within our supply chain) and
we also focused on encouraging women
to apply for apprenticeships.
Given the strategic importance of this
issue, we invested over £500,000 in
flagship centres in Southampton and
Gateshead. We’ve also worked even
more closely with national and local
governments, further education colleges,
the Construction Industry Training Board
(CITB), other sector skills councils and our
supply chain. We are now recognised for
meeting the UK Government’s ‘Trailblazer’
standard for skills development. Along
with others in our sector, we’re working
together to design apprenticeship
standards and assessment approaches to
make them world class.
Ray Wilson, Director of Carillion Training
Services, also served on The Commission
on Apprenticeships and is a Trustee of
the CITB. At a UK national policy level,
we are working to achieve clarity over
the Apprenticeship Levy and then put
the right systems in place to support it.
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HAMMER HEADS
Apprentices
By creating opportunities for a skilled
workforce, we ensure that we have homegrown talent and help young people
realise their aspirations. Given this is a
material risk to the business, our work on
skills and training is not a ‘bolt-on’; it is
built into daily business.
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In Ontario, Canada, the Hammer Heads
scheme is a pre-apprenticeship programme
run by Central Ontario Building Trades. Three
times a year, 15 young people participate for
12 weeks and gain experience from 24
different unions, with hands-on learning at
training centres and jobsite visits. To date,
Hammer Heads has placed 154 students into
apprenticeships with a 97% retention rate.
Carillion Alawi accredited
as a Vocational
Assessment Centre by
the Science, Engineering,
Manufacturing and
Technologies Alliance
Over 1,700
apprentice placements
in the UK, 89% with
an employment
outcome (2014: 87%)
Doing an apprenticeship is very
rewarding – you gain great experience,
learn the required skills and have the
opportunity to become very successful
in your chosen career path.”
JADEN WAUGH, female Civil Engineer
apprentice, who has recently been
presented with her NVQ Level 2 Civil
Engineering certificate
WATCH OUR APPRENTICESHIPS VIDEO
It starts at school
The UK currently faces an annual shortfall of 40,000
workers with adequate science and maths skills. To ensure
a pipeline of talent in 10 to 20 years, we need to inspire
young people in school now. In 2015, we supported a total
of 44,810 children by volunteering over 8,000 hours of
our time in schools (including school governor duties and
school career days). This equated to over £208,000 of time
invested from Carillion, and also represented some of our
most engaging community work to support and feed off the
energy, ambition and vitality of these young people.
BUILDING INTERVIEW CONFIDENCE
IN OMAN
On the Kempinski Wave Hotel project in Oman,
staff worked with engineering students to
maximise their employment chances. A group
of 20 final-year engineering students from
Oman’s Higher College of Technology worked
through mock interviews and received tips on
improving their interview skills from senior
Carillion employees.
Business Class is a BITC programme in schools for those at
risk of being marginalised, and 283 employees gave 1,810
hours to our partnerships across six UK regions. An analysis
by the University of Warwick shows that:
Nine were selected to attend an eight-week
training course on the project, which gave them
experience across various departments. Each
student gave a final presentation on key
learnings, with feedback showing that the
training exceeded expectations across the board.
•there is a 13% increased alignment between young
people’s aspirations and expected educational attainment
in Business Class schools; and
•75% of students perceived benefits in collaborative
events around careers, confidence and motivation.
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We are one of eight companies funding and supporting the Your
Life campaign to encourage 14 to 16 year-old girls to study science
and maths. Your Life is a three-year national, Government-backed
campaign to showcase careers linked to STEM qualifications. We
hosted visits from schoolchildren and supported an innovation
competition – Formula 100. We also supported a YouTube
channel designed to get young people interested in science and
maths, which had 2,163 subscribers in 2015.
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Adding value to society begins on our
doorstep. Our Sustainable Communities
Strategy pledges to leave a long-lasting,
positive legacy in the communities where
we work and live, delivered through
volunteering and local relationships.
On a broader scale, we also supported STEMNET, for which we
now have 40 ambassadors with links established in Kettering and
Corby schools and further events planned for 2016.
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Business Connectors
To date, we have seconded six people to BITC’s flagship
Business Connectors programme in Wythenshawe, Burnley
and Wandsworth. Business Connectors are trained by
BITC to build partnerships that tackle community issues in
deprived neighbourhoods.
In the UK, this also helps local authorities
respond to the UK Government’s Public
Services (Social Value) Act, by creating wider
social, environmental and economic benefits in
the delivery of public services.
Engineering made exciting
We are joining forces with the Institute of Civil Engineers to
help fund a new state-of-the-art learning centre in London.
The exhibition and learning centre, which will open in 2016,
will help inspire the next generation of engineers as it will be
an interactive space for young people, teachers, parents and
practising engineers. We are one of seven partners funding the
centre’s first five years, where model replicas, installations and
digital prototypes of iconic structures, engineering games and 3D
printers will show engineering at its best.
Across our international operations in the UK,
Middle East and Canada, we always start with an
assessment of community need. We aim to have
a Community Needs Plan in place across 100% of
contracts and projects, and we then aim to back
that up with community support appropriate to
those needs, however diverse they may be.
Our Chief Executive, Richard Howson, chaired
BITC’s Community Impact Leadership team for
the second of his three-year tenure. Engaging
organisations across more than 800 active
BITC member companies, he has driven the
adoption and success of national programmes
in CommunityMark, Give & Gain volunteering
and the Business Connectors programme.
Partnering with the exhibition and learning centre, and taking that enthusiasm into
the communities where we work and live will be key to motivating people to gain
essential skills and pursue rewarding, exciting careers to shape our future world.”
ADAM GREEN, Managing Director, Carillion Construction UK
HELPING ACADEMIES FLOURISH
BITC continues to be a
key external partnership
and delivery route for
the social value we
create. We chair the
Community Leadership
team and Business
Connectors
programme, and we remain one of
the lead national partners in the Ready
for Work programme.
Carillion has formed the Carillion Academies Trust to
transform educational opportunities, raise standards
and help provide the right environmental and cultural
conditions for young people to be successful. The goal
of the trust will be for its academies to achieve an
‘outstanding’ rating from the UK Office for Standards in
Education (Ofsted). Through the trust, we opened two
academies in Greater Manchester in 2015.
volunteered
in schools
BUSINESS
Connecting businesses
and communities
Girls can be engineers too
8,000
hours
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Engaged with over
400 schools
44,810
students reached
through support
for schools
CARILLION BUSINESS CONNECTORS HELPED
LOCAL ORGANISATIONS IN FIVE COMMUNITIES
COMMUNITY
37%
ENTERPRISE
15%
EDUCATION
24%
OTHER
3%
EMPLOYMENT
20%
The Business Connectors programme
provided a much-needed resource to
create more relationships with businesses,
and through collaboration added real value
to the great partnership work that already
exists in Wythenshawe and helped to
kick-start some great new initiatives,
particularly around employment and skills.”
JANE DUDLEY, Wythenshawe Regeneration Team,
Manchester City Council
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5,000
apprenticeships to be
provided over the next
five years
What next?
By 2020, we’ve committed to providing 5,000
apprenticeships, with a long-term goal of 95% of
apprentices gaining employment.
A1 LEEMING TO BARTON
Our A1 Leeming to Barton project achieved 100% of its
commitments under the National Skills Academy scheme.
This included providing 12 apprentice placements, visiting
over 20 schools and offering site visits to students from
Bradford and Northumberland Universities, as well as a visit
from the Help for Heroes Recovery Centre, Phoenix House,
Yorkshire. The project also worked closely with two local
Jobcentre Plus offices to increase local skills and employment.
A community liaison team was appointed to engage
communities with newsletters, site visits for local schools and
meetings with land owners and their agents. The team
worked with Chopsticks, a social enterprise based in North
Yorkshire. It offers employment, education, training and
As a responsible
operator of
construction sites, we
are an active Associate Member of
the Considerate Constructors
Scheme (CCS). During 2015, there
were 115 CCS audits. We achieved
an average score of 39.8, exceeding
the industry average of 38.6
social opportunities to vulnerable and disadvantaged people
in the area. The A1 team donated surplus timber to
Chopsticks, which it sold on to customers as fuel. In addition
to these community initiatives, over £20,000 has been raised
for a number of local and national charities.
95%
47 out of 50
of project enquiries
responded to within
48 hours
from the Considerate
Constructors Scheme
The staff at the Greengate
project in Manchester are
currently helping to feed
the homeless in the city
centre of Manchester by
distributing lunch to them
each Monday
We are continuing to develop standards from
Level 2 to Level 6 (the equivalent of a Bachelor’s
degree) and will help organisations like the West
Midlands Construction University Technical
College find the designers, builders and innovators
of the future by supporting the students with
mentoring, real-life projects and work experience.
Our ongoing challenge remains demonstrating
that this is a great sector to work in and the variety
of apprenticeships available.
Plans are under way to extend our support for
the Ready for Work programme, with greater
emphasis on understanding what participants do
after their placements to help us track long-term
employment outcomes. We are currently working
on a compelling campaign to encompass all
our work with disadvantaged groups, aimed at
understanding the transitions that people work
through as they seek employment.
As part of our community engagement work, we
are undertaking brand new research to examine
how businesses and community groups or
charities can better work together. During 2016,
we will conduct extensive surveys, and hold
roundtable discussions and interviews, with the
aim of producing a final ‘Insights’ toolkit on the
future of community engagement.
99%
of our contracts have a
Community Needs Plan
in place
(2014: 96%)
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We will also actively support the UK Department
for Work and Pensions on its See Potential
employability campaign. Through speaking
opportunities, case studies, videos and clear
evidence of the impact that employment support
can have for disadvantaged groups, we want to
inspire other employers to give people the chance
to work and realise their potential.
We want 10% of our people to volunteer with
schools, unemployed and hard-to-reach groups
to help them prepare for employment. We made
great progress with this in 2015, and will again
target that figure to reach 10% in 2016. We will
further focus our support for young people and
schools, and examine new partnerships to help
our volunteers have clear and measurable impacts
through donating their time and skills. For example,
we will look at how we could support The Careers
& Enterprise Company in the UK, possibly even
through creating a Passport for Employability or
similar structure to support young people as they
prepare for inspiring and rewarding careers.
Finally, we will be focusing on the quality and
effectiveness of our Community Needs Plans
across all our international operations, linking
them to existing partnerships to
broaden and deepen our impact.
2020 target:
100% of contracts to have
a Community Needs Plan
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VALUE FOR THE ENVIRONMENT
We believe in the potential of a low-carbon economy and the need to preserve resources
for future generations. Working with our customers, suppliers and our people to cut
carbon emissions, rethink waste, preserve scarce resources and protect the environment
makes us a more sustainable, profitable business.
We’re clear on our commitment to tackle climate change. From hydro-turbines to solar farms,
our expertise is helping to stimulate ideas, change perceptions and set new standards in
design and engineering. We are already at an advanced stage in trialling new approaches with
BIM, and we are now tackling embodied carbon measurement across the built environment.
MEGATREND
OUR CONTRIBUTION
2015 marked a step-change and called for
durable action from businesses, governments
and consumers alike to work together to create
a low-carbon environment. It started with the
UN World Conference on Disaster Risk
Reduction, was followed by global momentum
around the United Nations Sustainable
Development Goals and ended with a historic
agreement on climate change.
Achieving a score of 98A, Carillion was
independently benchmarked on the Carbon
Disclosure Project’s (CDP) Climate A List for
the second year running. We are developing
high-tech tools for the industry to measure
embodied carbon in their projects. We are
inspiring debate around low-carbon cities of
the future, alongside the Green Building
Council, and we are pioneering eco-building
design in our Middle Eastern operations.
Highest score
(3-Tree grading)
from WWF for
purchasing timber
and related products
Won
the first flood defence project in the UK to be
funded via a Business Improvement District
on the Lower Don Valley, Sheffield
“Every city is different. The problems of
the present will be the problems of the
future, but if we start to change this now
we can make a huge difference to cities
today and in the future.”
EUAN BURNS, Chief Engineer on Working
with Cities
2015
TARGET
2015
2016
PERFORMANCE TARGET
2020
TARGET
20% reduction in
our carbon footprint
(against a 2011
normalised baseline)
31%
33%
Target met ahead of
time. Revised target
being developed
97% waste diverted from
landfill (zero waste)1
94%
97%
97% (effectively zero
waste to landfill)
28%
Maintain at 28%
25% reduction in water
Operations 40%
consumption (against a
2 Own estate 24%
2012 normalised baseline)
% of our waste is hazardous or non-recyclable. Therefore a 97%
3
diversion rate is equivalent to zero waste to landfill. In 2015, we
amended this diversion rate target from 98% to 97% to reflect the fact
that 3% rather than the predicted 2% was hazardous or non-recyclable.
1
Operational water reduction (using 2012 baseline and normalised
turnover) was 40% and excludes Carillion Services and Canada. The
water reduction on our own estate in the UK and Canada was 24%
(using 2012 baseline and normalised by square footage).
2
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VIEW ALL TARGETS
A
Climate A grade in
CDP Index, one of
only two UK industrial
firms to achieve this
47%
absolute reduction
in waste (against
a 2014 baseline)
BREEAM certification
on over 200
projects since the
methodology’s
inception in 1990
£171,205
invested
£
in the Sustainable
Investment Fund to incubate
smart ideas that promote
sustainable development
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ENABLING LOW-CARBON ECONOMIES
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Carbon reduction can often be seen as merely compliance and control, but we see it as a unique
opportunity to strengthen our contribution to the built environment. We achieved our 2020 carbon
footprint reduction target five years ahead of time, and we are committed to creating a sustainable
and collaborative low-carbon built environment with our customers and suppliers.
Across our own estate we have used part of our Sustainable
Investment Fund to invest in low-energy technology, including
LED lighting, boiler control systems and associated energy
management processes. We are also now running a groundbreaking trial of a clever heating system chemical additive,
with the potential to adopt this widely – including on customer
contracts – if it proves to offer the investment return.
Carbon
For the fifth consecutive year, our UK operations attained
accreditation under the Certified Emissions Measurement
and Reduction Scheme (CEMARS), demonstrating a 33%
reduction in absolute emissions (scopes 1 and 2) since
2010 (the base year).
We continue to seek the most effective ways to cut
carbon and, wherever possible, achieve a carbon
balance. Our carbon footprint includes direct and
indirect emissions from our international operations,
and we targeted a 20% reduction in 2015 (against a
2011 normalised baseline). In fact, we achieved
a 31% reduction (this was despite the fact that Carillion
Canada’s relative emissions increased1) and have
already far surpassed the 24% target we set for 2020.
Here are just some of the ways in which we made such
significant energy and carbon savings:
•By introducing just two new hybrid cars to our fleet in 2015,
we have already seen a 400-tonne annual drop in our UK
carbon footprint. We installed two car-charging stations at
Carillion House in Wolverhampton, and we are surveying our
estate to identify further potential for other charging points.
WATCH OUR CUTTING CARBON VIDEO
•Working with Garic, our supplier partner, we are trialling
solar-powered welfare units on the Midland Metropolitan
Hospital and Royal Liverpool University Hospital projects.
The Combi Cabin Eco Series+ solar-powered unit replaces
diesel generators, reduces fuel costs by up to 88% and cuts
CO2 emissions from 143kg (standard generator unit) to just
16kg over 24 hours.
Carbon footprint against
a 2011 normalised baseline
TOTAL CARILLION GROUP
-31%
MENA
-47%
AFC
-69%
UK
-37%
CANADA 1
+65%
S
AND GRI APPENDIX
•In the Middle East and North Africa, our operational teams
work closely with local authorities and utility companies to
connect our project sites to mains power to reduce reliance
on generators. Where generators are unavoidable, we
reduce their fuel consumption by using synchronisation
technology to manage load sharing and demand. With
fuel usage monitoring, we cut unnecessary idle time
during day shifts and optimise operating characteristics.
•In Canada, we are a Project Delivery Agency for BC Hydro’s
Energy Conservation Assistance scheme. Servicing
Vancouver Island and the Southern Interior areas of Canada,
this initiative is aimed specifically at improving the energy
efficiency of low-income homes. The Roads business has
invested in 45 highly efficient trucks, which offer significant
fuel efficiency savings over the vehicles they are replacing.
We have also introduced vehicle telematics across our winter
fleet to monitor driver behaviour and encourage more
efficient driving styles.
A GRADES AGAIN
Achieving a score of 98A, Carillion was independently
benchmarked on the Carbon Disclosure Project’s (CDP)
Climate A List for the second year running. One of only
two UK firms awarded an A grade in the industrials sector.
We were also in the top 2% disclosing through
our supply chain programme.
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Despite the significant reduction in our carbon emissions,
our overall electricity consumption actually went up. This
was mainly from our two UK sites – Carillion House and
Malthouse Manchester – where increasing occupation
(due to consolidation of smaller properties) has resulted
in a temporary surge in electricity use.
The first phase of the UK Government’s Energy Savings
Opportunity Scheme (ESOS) began in 2015, in response to
Article 8 of the EU Energy Efficiency Directive. Carillion was
one of the minority of companies who complied with the
original ESOS deadline of December 2015, conducting audits
across the Carillion estate in 2015, and we now plan to tackle
the associated energy savings programme in 2016.
98A nearperfect
score for climate
change action
from the CDP
99%
CDP congratulates you for your
climate change leadership, and
recognises you as a world
leader for supplier action on
climate change.” CDP
of our contracts
have Carbon
Reduction Plans in
place (2014: 96%)
2015
CLIMATE
100% certification
to the ISO 14001 international environmental standard
at established operations in the UK, Middle East
and North Africa, and Canada Highways
Carbon Reduction
Commitment (CRC): in
compliance year 2014/15, our
emissions decreased by 9% on
the previous year, but we paid
£253,035 to the UK Department
of Energy and Climate Change
due to a 37% increase in the
unit price of carbon.
S
AND GRI APPENDIX
ur Canada carbon numbers are significantly affected by three
O
factors: the original 2011 baseline including estimates;
significant foreign exchange movements impacting the revenue
normalisation calculation; and the business mix becoming
dominated by fuel-intensive snow clearance. It is also critical to
note that – without significant efforts (see above) to drive fuel
efficiency and carbon reduction across Canadian operations
– the number would be even higher.
1
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Sustainable design and innovation
Sustainable cities of the future will be based
on intelligent engineering that considers the
whole project lifecycle – from ‘cradle’ (design
and construction), to ‘grave’ (demolition).
We apply BREEAM (Building Research
Establishment Environmental Assessment
Method) to measure our approach to this,
attaining whole life costing credits, in addition to:
•CEEQUAL: the Civil Engineering Environmental
Quality Assessment and Award Scheme;
•LEED: the Leadership in Energy and
Environmental Design standard;
•Estidama – Abu Dhabi; and
•Dubai Green Building Regulations.
Gold
Leaf Member
of the UK-GBC
A
Achieved
BREEAM
certification on over 200
projects since the
methodology’s inception
in 1990
£171,205
Award-winning building
design, Oman
VIRTUAL INFRASTRUCTURE
Oman’s five-year development plan
prioritises energy conservation and
renewable energy. Traditionally, Omani
architecture employed eco-friendly
construction methods – methods that
Carillion Alawi is reviving.
BIM is a process for delivering projects that involves understanding
every stage of built environment contracts. For five years, we’ve been
developing our BIM capability to meet the UK Government Mandate
for BIM Level 2, and equivalent guidelines in Canada and the Middle
East. To date, we’ve delivered over 3,000 guided learning hours of
training for our people.
Designed together with the Oman Higher
College of Technology, the GreenNest
Eco House won the 2015 Eco House
Design competition. It combines Omani
aesthetics with sustainable construction,
such as a water recycling system for
irrigation. Constructed with insulated
concrete, the building contains energyrecovery ventilation and a floor plan that
maximises natural light and wind.
As well as working with our suppliers on this, we’re helping
customers. For example, Sandwell Council in the West Midlands
who developed the West Midlands Virtual Hospital to showcase
manufacturing and construction supply chain capability in the area.
A web portal was created whereby suppliers interested in
tendering for hospital work could tag themselves against products
they could supply to a hospital, such as a door, a bed, steelwork,
etc. They would then input information into the portal and could
create a product page with videos, specifications and other
information about their products, including links to BIM objects for
the design and data on their products.
The building and construction
sector currently contributes
around one-third of global
greenhouse gas emissions.
We see climate change as an
opportunity more than a risk
– low-carbon thinking is already
making us a better business.”
SHAUN CARTER,
Group Director, Strategy
& Development
Embodied carbon
We’re now turning our attention to embodied carbon, the carbon dioxide (or other
greenhouse gases) released from the energy used to create the built environment.
We worked with Sandwell to integrate this within our procurement
model for the Midland Metropolitan Hospital to encourage local
spend and drive up awareness of BIM through presentations,
workshops and communications. We were asked to develop a
BIM skills and training suite in an impoverished area next to the
site, so we were not just sharing knowledge on BIM but improving
skills and creating a legacy of capability in the area. The first
Carillion training sessions are taking place in early 2016 and the
suite is now in operation for customers, suppliers, apprentices
and Carillion personnel.
Embodied carbon is not easy to measure, but it is critical to managing a low-carbon future,
making it a key topic for the UK-GBC and the industry. We sponsored their conference on the
issue, bringing designers, contractors, customers and occupiers together to review actions and
further inform the practical work we’re doing in our construction teams to pilot and develop
new embodied carbon tools.
SCHOOL
Five years on: biomass
boilers at HMP Guys Marsh
We are responsible for running the Hard and Soft
Services at National Offender Management Service
(NOMS) prison establishments in the South and
South East of the UK. NOMS has given Carillion a clear
mandate to look for smart energy solutions.
£
invested in the
Sustainable Investment
Fund to incubate smart
ideas that promote sustainable
development, such as piloting
Hydromx, an energy-saving heat
transfer fluid
HMP Guys Marsh in Dorset is the first prison in the UK
to be heated entirely by renewable wood. The system
displaces 600,000 litres of heating oil with 1,600
tonnes of locally sourced wood chip. Five years into
service, the biomass boiler has cut heating costs by
50%, saving the client £250,000 and 1,947 tonnes of
CO2 per year. The local forestry and the wood-chipping
industry have also benefited from this initiative by
becoming suppliers to HMP Guys Marsh.
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SUSTAINABLE SCHOOLS
On the North West Academies Modular Primary Schools
project, the Carillion site team and the groundwork
contractor are thinking differently. They have developed
a way to build the pad foundations using an auger
– a corkscrew-shaped drilling device. This method has
reduced project costs by up to 26% and has the potential
to reduce the quantity of embodied carbon in the
foundations by between 20% and 28%.
The auger method will now be rolled out to more academy
school projects in the region.
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PROTECTING THE ENVIRONMENT
Solar farms
Carillion is a key partner in a new West Sussex solar
farm that is generating renewable energy and revenue
for the community. Tangmere Airfield solar farm
occupies 25 acres of council-owned land, providing
enough clean energy to power over 1,500 homes.
Protecting the environment is a cornerstone of our 2020 sustainability strategy. Managing our waste
and water, using resources wisely and improving the diversity of wildlife in and around our sites
remain ongoing priorities.
The first installation of its kind to be delivered by
the local authority and Carillion, the farm’s clean
electricity is being sold to the national grid and is
forecast to earn more than £13 million through feedin tariffs over 20 years.
Waste
We focused on overall waste reduction in 2015, managing to cut it by 47% throughout
the year, and divert 94% from landfill (for reuse or recycling).
The new solar farm will reduce our
carbon footprint and benefit the local
community. The income generated
will be used to fund energy efficiency
schemes in the local community.
This is especially helpful to the
low-income and vulnerable residents
that may be at risk of fuel poverty.”
LOUISE GOLDSMITH, West Sussex
County Council Leader
HELPING OUR CLIENTS ADAPT
TO A CHANGING CLIMATE
The Lower Don Valley, Sheffield, is a key
regional employment area and also highly
vulnerable to flooding. Sheffield City Council has
implemented a flood protection project on the
River Don and we were selected to develop the
£19 million project funded by the Department for
Environment, Food & Rural Affairs (Defra) and
the Environment Agency in 2015.
The project receives an annual contribution from
over 250 organisations via a Business
Improvement District and is the first flood defence
project in the UK to be funded in this way.
This is testament to how we are thinking differently
about waste, particularly given the challenges
of recycling infrastructure in parts of the world
where we operate. The majority of our waste
reduction was due to a cut in excavated waste, with
a number of projects applying the Contaminated
Land: Applications in Real Environments (CL:AIRE)
protocol to find alternative destinations for waste
material. We’ve also worked with clients to remove
the need to excavate material, such as in our work
with Network Rail and the Thameslink programme.
What next?
Tackling carbon is not a quick-win and our plans extend way
beyond the end of our 2020 sustainability strategy. Despite having
already significantly surpassed our 2020 carbon reduction target,
we will continue to challenge ourselves and will be looking to
revise our 2020 target accordingly, with a 33% target set for 2016.
Given that our Canada business has changed significantly since
2011, we will also set a more effective and representative baseline
to demonstrate the impact of our carbon reduction.
Despite significant achievements, we were unable
to achieve our target of effectively sending zero
waste to landfill in 2015. Hazardous waste increased
in 2015, which required specialist disposal, and
a significant increase in building demolition and
contaminated soils meant that waste exceeded the
capacity of our local recycling infrastructures. With
3% of our waste in 2015 classified as hazardous,
a 97% diversion rate would have been effectively
zero waste to landfill, but we were just short of this
at 94% and will continue our efforts to target an
effective zero waste to landfill rate in 2016.
Newly mobilising contracts meant that we were just one
percentage point off our ambitious plan for 100% of our contracts
to have a Carbon Reduction Plan in 2015, but we continue to
improve (2014: 96%) and we will audit those Carbon Reduction
Plans to focus on their impact. Our design and engineering work
will create healthier buildings that bring in more fresh air and
natural light, and we will aim to become accredited for the delivery
of BIM to support our customers and our effectiveness.
Turning our attention to measuring and cutting embodied carbon,
we will work with the Green Construction Board to support the
release of a publicly available statement (known as PAS2080) in
2016, which will help to standardise both measurement and action
plans towards further carbon reduction. We will continue to build
action plans with the UK Green Building Council and Forum for
the Future as well, to identify practical ways of addressing new
materials, processes and approaches to lowering
embodied carbon across the built environment.
Waste produced
1,251,807
tonnes
2020 target: 100% of contracts to have a
Carbon Reduction Plan
(2014: 2,441,509)
Recycling drywall in Canada
In 2015 alone, our operations in Canada diverted
and recycled over 26 tonnes of drywall from landfill.
As a key component of drywall, it is estimated
that, by 2030, global use of gypsum will surpass
20 million tonnes, so recycling drywall means that
gypsum can be separated and reused infinitely,
as it does not degrade.
REDUCING WASTE, PROTECTING
THE ENVIRONMENT
Al Futtaim Carillion (AFC) is keeping waste
down on the Fort Island project with around
4,000m3 of sludge from the existing lake bed
being used to backfill the area. AFC employees
captured the aquatic species, including jellyfish
and turtles, and released them downstream
without any loss of life. Approximately 500m3 of
waste blocks from the demolition of the existing
structure were crushed on site and were then
reused for temporary roads within the project.
Waste diverted
1,174,016
tonnes
(2014: 2,278,712)
S
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From academia to action
GETTING VALUE FROM WASTE IN THE MIDDLE EAST
On the Oman Convention & Exhibition Centre project, Carillion Alawi is
reprocessing site-excavated hard rock into roof gravel. The gravel meets LEED
requirements for a Solar Reflective Index, saving £88,000 and 500m3 of new
material by avoiding the need to import virgin gravel.
This recycling system enabled us to win Sustainability Initiative of the Year at the
Oman Construction Week Awards.
In Qatar, the Msheireb Phase 1B project team has recycled 94% of total waste, just
one of the reasons it has met and exceeded LEED requirements. According to the
Msheireb Properties client, “Carillion Qatar is an exemplar on managing and
segregating waste.”
Katherine Nisbet, MSc Sustainable
Development student at Kingston
University, London, was sponsored
by Carillion’s British Museum
project team to research her
dissertation Implementing
recycling and waste signage from a
national recycling campaign – can
this increase recycling rates and
change employee attitudes towards
recycling at The British Museum?
Since the project, we have obtained
client buy-in to deliver the scheme
across the site and are working
on a delivery plan for 2016.
Two additional MSc students who
expressed an interest in working
with Carillion were selected for work
experience placements, both of
whom provided excellent feedback.
NEW APPROACHES TO SAVINGS
Middle East and North Africa
Drinking bottled water has become the norm across the Middle East. However, the Carillion Qatar team is saving
money and plastic by replacing small water bottles with five-gallon dispensers at the Shell FM project in Qatar.
Now employees can drink clean, unlimited water straight from the dispenser, saving £10,000 a month and
significant amounts of plastic waste.
Water
According to Dubai Municipality regulations, all wheels of heavy vehicles must be washed when leaving the site,
which uses around 2,000 gallons of precious clean water each day. We introduced a system at our La Mer contract in
Dubai to collect and filter water for dust suppression and other wheel washing. This saves around 40% in potable
water consumption and reduces operational costs.
According to the Carbon Trust, water consumption was one of the top five sustainable business risks in 2015.
The Carillion estate water consumption decreased
by 24% compared to the 2012 baseline. Our water
consumption on construction sites decreased by
40% compared to 2012, reflecting our focus on
using water-saving technologies more widely.
In partnership with its supply chain, Al Futtaim Carillion has created an innovative dam system to pump water more
efficiently. The metal-framed membrane dam system pumps a continuous stream of approximately 3,500m3 per hour,
saving around 25,000 litres of diesel and reducing noise around the site over the six-month project.
Caribbean
Throughout our regions, we monitor and measure
water use quarterly, while water reduction plans
enable each contract to identify potentially highwater-consumption activities.
In Trinidad and Tobago, the Carillion Caribbean team at the Waterloo depot has installed four 1,000-gallon tanks to
collect rainwater. The water is used to flush toilets and reduce dust pollution on the site – avoiding the use of fresh
water for these activities.
Rainwater harvesting
A number of our apprentice training
centres are using rainwater for their
construction activities. At our Training
Services in Middlesbrough for example,
the centre invested in two 120-litre
rainwater storage barrels following a
suggestion by the bricklaying assessors.
It is estimated that over five months, this
has saved around 5,040 litres of water.
We recognise the growing pressure on water
resources globally, particularly in our Middle East
and North Africa regions, and in our supply chains
that may extend to regions of water scarcity.”
ANDREW RIDLEY-BARKER, Managing Director for
Al Futtaim Carillion LLC
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40%
reduction in
operational water
use since 2012
(2014: 28%)
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Biodiversity
We have worked extensively with the UK Wildlife Trusts to identify and respond to potential risks and, in 2015, we committed to a
three-year partnership with the trusts in the Midlands, while also extending our support to other Wildlife Trusts around the country.
Meanwhile, our partnership with the UK Freshwater Habitats Trust helps us protect biodiversity in ponds, rivers, streams and lakes.
How do you measure habitat loss?
Since 2009, we’ve been working with the Staffordshire Wildlife
Trust to protect biodiversity on Highgate Common. This nature
reserve is a Site of Special Scientific Interest and home to rare
species such as the bog bush cricket, glowworms and oil beetles –
species not found anywhere else in the country.
It has historically been a challenge to quantify the scale
of unavoidable habitat loss by clearance of vegetation
from construction projects. However, the project
team at Cricklewood, in collaboration with Network
Rail, has been trialling the new Defra pilot tool to
calculate the project’s biodiversity baseline. Although
the quality of the habitat lost was assessed to be low,
Carillion’s designers on other Thameslink projects are
investigating opportunities to enhance biodiversity on
other sites to compensate for the loss at Cricklewood.
Our volunteers have worked to protect the areas of heathland
from encroaching woodland and scrub. As part of our
Glowworms Reunited project, we’ve helped to create corridors
between isolated islands of heathland.
SHORELINE CLEAN-UP HITS THE RIGHT NOTE
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for Environmental
Best Practice, Carillion
Construction
Services A1 project
What next?
Wildlife detectives
Carillion volunteers visit schools and community
organisations like Brownies, talking to the children
about the importance of protecting wildlife. As part
of the Big Biodiversity Challenge, they set children
the challenge of being wildlife detectives. A fun
information pack, including Velcro removable animals
and a fill-in-the-gaps fact sheet, helps children to solve
mysteries in natural habitats for protected species.
In 2015, over 100 children became wildlife detectives,
helping raise awareness of biodiversity among their
peers and families.
In September 2015, a team of 24 Carillion Canada employees and their family members helped to clear up litter on their
local shoreline. The Vancouver Shoreline Cleanup Celebration Event was organised by our client, Vancouver International
Airport. In total, 700kg of litter was taken away – including a washed-up piano.
ENVIRONMENT
Green
Apple
Award
Biodiverse project sites are important to our customers, the communities we serve and our people. We conduct
biodiversity risk assessments for each of our contracts and offer wildlife-based volunteering with schools.
Keeping heathland healthy
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Restoring threatened habitats takes time
and effort. For many businesses ‘doing
their bit’ for conservation means an
annual jolly with a few tools. For Carillion
the journey has been different. Since 2010,
Staffordshire Wildlife Trust has hosted
dozens of conservation work parties and
welcomed hundreds of staff volunteers to
our Highgate Common Nature Reserve
near Carillion HQ in Wolverhampton. We
are, therefore, delighted that Carillion has
agreed to become our very first Nature
Reserve Sponsor for at least the next three
years. This level of corporate commitment
is ground-breaking and demonstrates the
long-term vision and foresight that
Carillion strives to demonstrate.”
Our focus on waste reduction will involve
finding ways of avoiding generating waste
in the first place. We have already refreshed
our Waste Strategy, and will be seeking ever
more progressive methods, materials and
awareness – so that we continue to design
waste out of our processes. We will continue
to target sending zero waste to landfill across
construction and services operations.
Water is becoming a more prominent issue
every year. Now that we have water plans
in place for over 95% of our contracts, we
will move on to improve the quality of those
plans, and measure their impact.
We will also take a fresh look at our overall
strategy for protecting the environment, so
that we can identify new ways of linking skillsbased volunteering and fresh environmental
challenges into our international operations.
This can often be the area that people most
readily associate with sustainability strategies,
so we will look for new ways to help inspire
our own people to do more, as well as the
communities and schools they support.
2020 target: 97% of
waste diverted from
landfill (zero waste)
JULIAN WOOLFORD, Chief Executive,
Staffordshire Wildlife Trust
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more extensively to build on our work with the Supply Chain
Sustainability School. We will continue to invest across our estate
to drive down electricity usage, and work with our site teams to
seek effective zero waste diversion rates – particularly where this
is hampered by limited local recycling capacity or infrastructure.
VIEW FROM OUR CSO
Carillion is a community company, so we will continue
to help our people use their six-day paid special leave to
put volunteering at the heart of community engagement.
Demanding operational tempos can make it hard to take time
away from contracts and projects, but we will remain focused
on supporting young people, employment programmes and
helping hard-to-reach groups. Most importantly, engaging
stories help our people to feel proud of working at Carillion,
Despite many different names for
sustainability, one thread remains the
same: businesses without visionary
engagement, inspiring stories, responsible
compliance or public trust are businesses
without competitive futures. Our people
and our partnerships continue to build a
better business, connect a better society
and create a better environment.”
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whether it be our work with Canada’s indigenous communities
or our investments in worker welfare in the Middle East. The
highest scoring question in our employee survey was the
importance of Carillion operating responsibly.
Despite many different names for sustainability, one thread
remains the same: businesses without visionary engagement,
inspiring stories, responsible compliance or public trust are
businesses without competitive futures. Our people and our
partnerships continue to build a better business, connect a better
society and create a better environment. For Carillion, sustainability
is key to how we shape our competitive future, and it’s how our
people create even more inspiring stories for tomorrow.
DR CERI POWELL, Chairman,
Board Sustainability Committee
emissions with
a focus on
embodied carbon
The Board Sustainability Committee was established in 2015
to bring even more robust governance to an already wellstructured responsible business approach. The committee
reports monthly to the Board on progress, priorities, targets and
topical challenges. Its overall remit is to develop and implement
the Group’s sustainability strategy.
Evaluate
our strategy around
skills, diversity
and engagement
In 2015, we looked at the sources of sustainability’s
contributions to business profitability, together with
Carillion’s efforts to enable community engagement
(specifically employee volunteering) that would drive
competitive advantage and the company’s potential to
contribute to a low-carbon economy.
We set exceptionally aspirational 2015 targets to rapidly accelerate progress
towards our overall 2020 goals. Outstripping our 2014 performance in all but
four of these, we can focus now on areas where we need a little more effort
to achieve our 10-year ambition. With an ever greater emphasis on ethical
sourcing, human rights and resource scarcity, we will engage our suppliers
BETTER
We will be engaging more directly with external
advisors on current trends to benchmark our
own performance. It is essential that sustainability
continues to serve as a business differentiator for
Carillion towards 2020 and beyond.”
Further cut
We will also reassess the impact of our strategy in addressing skill shortages,
diversity and engagement, as well as supporting collective agreements such
as the United Nations Sustainable Development Goals.
ENVIRONMENT
VIEWS FROM OUR INDEPENDENT ADVISORS
DAVID PICTON, Chief Sustainability Officer
One of sustainability’s great challenges – and motivations – is that the
‘ink is always wet’. Aiming to be an ever more responsible business, we
will review our material issues in 2016 as market forces, stakeholder needs
and self-expectations evolve. We will build on the early achievement of
our carbon footprint reduction target, cutting even more emissions and
tackling embodied carbon to support COP21’s international climate
change commitments.
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The committee reviewed Sustainability Moments, examples of
Carillion’s most inspiring sustainability behaviour. Reclaiming
building materials to reduce waste and improve profitability
(see page 57), supporting a homeless person under BITC’s
Ready for Work programme (see page 42) and giving people
with all abilities access to work – these are just some of the
ways in which we were struck by the positive impact Carillion
can achieve. And this is in addition to Carillion’s Employee
Nomination Fund, which directly supports 160 charities
around the world.
On the back of achievements like these, we have established
a forum to stimulate Carillion debate around sustainability.
We will also be engaging more directly with external advisors
on current trends to benchmark our own performance. It is
essential that sustainability continues to serve as a business
differentiator for Carillion towards 2020 and beyond.
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The construction of buildings and
infrastructure has long been recognised
as consuming resources and creating
waste, but the sector’s most responsible
firms are taking a long-term view of these
challenges. By contributing significantly
to economic growth, creating jobs and
upskilling people, they are creating places
and spaces that enhance people’s lives.
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As one of UK-GBC’s Gold Leaf
members, I look forward to working
with Carillion over the coming years
to further its leadership approach to
sustainable development.”
The increasing focus on the impact of employer
engagement in UK schools, along with the scale
and quality of apprentice training, offers
significant rewards for both business and society.
Specifically, Carillion must redouble its efforts
through company-supported volunteering.”
JULIE HIRIGOYEN, CEO,
UK Green Building Council
DAME JULIA CLEVERDON DCVO, CBE, Vice President,
Business in the Community
Carillion also invites external scrutiny, with
a Sustainability Committee at Board level
and external advisors giving constructive
challenges (see page 69). Having recently
adopted such a role for Carillion on
behalf of the UK Green Building Council
(UK-GBC), I’m encouraged by the firm’s
desire to drive positive change. UK-GBC
identified areas in a Sustainability 360o
Review that, if addressed, would further
strengthen Carillion’s leadership position.
Carillion has made great progress
on its sustainability targets in 2015,
showing real leadership from the Board
and with the Chief Executive focusing
personal energy on some long-standing
challenges. We can finally see some real
evidence of diversity progress, with an
increase in maternity returners from
76% to 96%, and a sharper focus on
‘model measures for middle managers’
to include important unconscious bias
training. This should help to achieve the
target of 30% female managers by 2020.
A stand-out leadership aspect of Carillion’s
approach has been to link sustainability
We recommended:
to the bottom line. Aiming to contribute
£40 million to profit by 2020 (linked to the
Chief Executive and Board remuneration), •more comprehensive measurement
and reduction of scope 3 greenhouse
the firm is clearly committed to responsible
gas emissions, including embodied
business. Carillion’s transparency is also
carbon within construction materials
commendable, with top scores achieved
and structures;
once more in the Carbon Disclosure
•greater integration of sustainability
Project, a target for 100% of contracts to
into the business strategy, reflecting
have a Carbon Reduction Plan in place and
how the company’s activities create
a number of reporting and integrity awards.
or erode value across different capital
types – linked to a fully integrated
annual report; and
•reaching out more extensively to
other industry players and sectors for
learning and development purposes.
Sir Jonathon Porritt has played such
a vital role over the years in urging
forward Carillion’s carbon leadership
and sustainability reporting. He would
recognise the worth of the PwC Building
Public Trust accolade on sustainable
reporting for the third year running, and
the early achievement of the carbon
footprint reduction, but would certainly
now push for ambitious targets on
embodied carbon.
The increasing focus on the impact of
employer engagement in UK schools,
along with the scale and quality of
apprentice training, offers significant
rewards for both business and society.
Specifically, Carillion must redouble its
efforts through company-supported
volunteering – particularly in those
communities where young people
most need help and support. All in all,
a year with some real achievement
against sustainability targets.
Carillion is now leading the corporate
sustainability field by showing impressive
impact on local postcode supply chains,
with some 58% of spend, embedded
Community Needs Plans, a pipeline
of seconded Business Connectors in
deprived communities and an innovative
cash flow arrangement used by more
than 500 suppliers. Other companies
and Government departments should
take particular note of this valued
supplier initiative recommended by
85% of those using it.
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TARGETS AND PERFORMANCE
VALUE FOR SOCIETY CONTINUED...
We track the delivery of our 2020 sustainability strategy through our annual targets, helping us to manage
and prove our achievements. For the first time in our history, all our targets have been independently audited
by Bureau Veritas – an important declaration of transparency to continue building trust.
60% local spend including small and medium
enterprises (SMEs) in the UK
58%
[2014: 51%]
60%
Maintain at 60%
90% UK Carillion apprentices who complete their
framework will have an employment outcome
89%
[2014: 87%]
91%
95%
100% contracts to have a Community
Needs Plan1
99%
[2014: 96%]
100%
Maintain at 100%
Our business units measure themselves monthly against these key performance indicators (KPIs), reporting the data on our
Capture system. The Finance Director of each business unit approves their contribution to profit figures.
1% pre-tax profits donated to community
activities either in cash or kind
1%
[2014: 1%]
1%
1%
We set highly stretching 2015 targets in every area of our strategy, aiming to quickly accelerate our progress towards our overall
2020 goals and objectives. We did not meet all of these stretch targets, but this had the desired effect of outstripping our 2014
performance in almost every area, to continue making inspiring headway in responsible business.
10% of schools, unemployed and hard-to-reach
groups2 to develop skills to enter employment
7%
[2014: 4%]
10%
Maintain at 10%
A period of three months is permitted during mobilisation of a new contract before a Community Needs Plan is required and any contracts with a duration of less than
six months are excluded from the Community Needs Plan requirement provided that employees are engaged in community engagement via an existing contract or their
business unit. The IMS Director must approve any additional exclusions for exceptional reasons, such as only one person working on contract.
1
Here’s a summary of our 2015 performance, our 2016 targets and our overall 2020 targets.
2
Hard-to-reach covers a wide range of groups and are those with real or perceived barriers to engagement/employment.
2015 TARGET
2015 PERFORMANCE
2016 TARGET
2020 TARGET
Carillion will contribute £32.5 million to
profitability through sustainability actions
£33.8 million
[2014: £27.2 million]
£34 million
£40 million
Achieve Level 5 of Sustainable Procurement Task
Force Flexible Framework
Level 5
[2014: Level 4]
Level 5
40% of suppliers to respond positively to sourcing
materials and products from responsible and
ethical sources
25%
[2014: 35%]
40%
Start to implement
the principles of new
ISO 20400 Sustainable
100%
VALUE FOR SOCIETY
2015 TARGET
2015 PERFORMANCE
2016 TARGET
2020 TARGET
56% reduction in All Accident Frequency Rate
(AAFR) against a 2011 baseline
51%
[2014: 49%]
56%
70%
75% of employees feel proud to be part of
Carillion (Your Say survey)
69%
[2014: 65%]
76%
80%
22% of employees utilise the Carillion special
leave policy for volunteering in areas where
we work
18%
[2014: 14%]
25%
2015 TARGET
2015 PERFORMANCE
2016 TARGET
2020 TARGET
20% reduction in our carbon footprint (against a
2011 normalised baseline)
31%
[2014: 17%]
33%
Target met ahead of
time. Revised target
being developed
20% reduction in gas consumption from Carillion
offices in the UK (against a 2011 degree days
normalised baseline)
28%
[2014: 11%]
20%
Maintain
20% reduction in electricity consumption from
Carillion offices in the UK (against a 2011 degree
days normalised baseline)
4%
[2014: 24%]
20%
Maintain
100% contracts to have a Carbon Reduction Plan1
99%
[2014: 96%]
100%
Maintain at 100%
97% waste diverted from landfill (zero waste)2
94%
[2014: 95%]
97%
97% (effectively zero
waste to landfill2)
25% reduction in water consumption (against a
2012 normalised baseline)3
Operations 40%
[2014: 28%]
Own estate 24%
28%
Maintain at 28%
100% sourced timber in the UK will meet Forest
Stewardship Council or equivalent standards4
98%
[2014: 99%]
100%
Maintain at 100%
A period of three months is permitted during mobilisation of a new contract before a Carbon Reduction Plan is required and any contracts with a duration of less than
six months are excluded from the Carbon Reduction Plan requirement. The IMS Director must approve any additional exclusions for exceptional reasons, such as only
one person working on contract.
1
50%
3% of our waste is hazardous or non-recyclable. Therefore a 97% diversion rate is equivalent to zero waste to landfill. In 2015, we amended this diversion rate target
from 98% to 97% to reflect the fact that 3% rather than the predicted 2% was hazardous or non-recyclable.
2
Operational water reduction (using 2012 baseline and normalised turnover) was 40% and excludes Carillion Services and Canada. The water reduction on our own
estate in the UK and Canada was 24% (using 2012 baseline and normalised by square footage).
3
Timber performance data from 2014 report as 2015 data not available at time of publication.
4
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GOVERNANCE AND RISK
Good governance is an essential part of how we embed sustainability into our operations.
Our commitments to responsible business extend from the Board to every team in every region.
This means that our sustainability strategy is effectively managed by everyone at Carillion.
You can read more about corporate governance in our 2015 Annual Report and Accounts.
MATERIALITY
Building on the full assessment of material issues in 2014, we conducted desk-based research
and held an internal workshop in 2015 to review our key issues.
Sustainability management
Carillion’s Chief Executive Richard Howson is responsible to the Board for sustainability.
Our Chief Sustainability Officer David Picton is accountable for sustainability across the Group.
Our stakeholders identified the most material issues as:
•
People engagement: people want to hear more of the
inspiring stories about what we’re doing. Safety, health and
wellbeing remained fundamental, and people wanted to
understand the impact of our progress with diversity,
retention and recruitment.
•
Building a successful business: a net profit contribution
from sustainable behaviours and actions remained a key
differentiator for us, and external commentators felt this was
a highly material factor. A clear link to our strategy and
reputation was critical, and our people wanted to better
understand the role that they could personally play.
•
Supply chain: sustainability upskilling through the Supply
Chain Sustainability School was seen as important across
the full built environment, and our Early Payment Facility
remained a key part of supplier relationship management.
•
Waste: we need to keep making progress on the overall
reduction of waste produced to build on our achievements
to date with diversion from landfill.
Dr Ceri Powell, a Carillion plc NonExecutive Director, chairs our Board
Sustainability Committee. The
committee met four times in 2015 to
provide oversight of sustainability
across Carillion on behalf of the Board,
assessing strategic issues and delivering
future direction.
Canada conducted its
own regional materiality
review, which received
241 responses (72%
internal and 28% external) and signalled
strong engagement in the process. The
results were in line with the overall
Group feedback, emphasising the
importance of building a successful
business, people engagement and the
environment, now and in the future.
The committee develops the Group’s
sustainability strategy, values and
policies. It also reviews the annual
sustainability report, auditor feedback
and sustainability matters affecting
Carillion’s corporate reputation.
Outcomes from the materiality process
continue to inform the work of our
sustainability governance committees
and we will conduct a comprehensive
materiality review in 2016.
•
Skills and local engagement: people want to see authentic
and inspiring engagement with local companies and their
communities – with a focus on providing apprenticeships,
employment, skills and direct support for schools and
young people.
A Sustainability Advisory Committee
advises our Board and Executive
Leadership teams. This committee
includes managing directors from our
business units, functional heads and our
independent external advisor Dame Julia
Cleverdon DCVO, CBE (Vice President
of Business in the Community). In 2016,
the committees will also consult with
and receive advice from Julie Hirigoyen
(Chief Executive of UK Green Building
Council (UK-GBC) as we are a Gold Leaf
UK-GBC member.
“The committee has established an
excellent forum to stimulate debate
and focus on sustainability, engage
more directly with external advisors
on emerging trends and ensure
that sustainability continues to be a
competitive differentiator for Carillion
towards 2020 and beyond,” Ceri Powell,
Chairman of the Board Sustainability
Committee and Non-Executive Director.
Board and senior leadership
remuneration remains linked to key
aspects of our sustainability agenda,
alongside the Group’s business results,
leadership and ongoing high standards of
health, safety and wellbeing of our people.
Carillion plc Board chaired by Philip Green, CBE
Sustainability Advisory
Committee chaired by
Richard Howson
•
Ethical sourcing: we need to keep investing in and
demonstrating management processes that deliver
responsible labour, welfare and employment practices
across our full supply chain. This also extends to wider
ethical sourcing of materials and physical resources.
•
Governance and management: we need to keep
demonstrating how our sustainability strategy is managed
across all levels of our international business.
Board Sustainability Committee chaired by Ceri Powell
Group Sustainability Committee chaired by David Picton
Business Unit Integrated Management Strategy (IMS) teams
•
Carbon: the Paris Climate Summit brought a clear focus
to ongoing carbon reduction, and an emerging need to
manage, measure and reduce embodied carbon.
Underpinned by policies, procedures and management systems
68
69
OVERVIEW
BETTER
BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
Risks and opportunities
BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
BETTER
BETTER
FUTURE
MANAGEMENT
& REPORTING
VALUE FOR SOCIETY
The risks and mitigation strategies listed below reflect the
key concerns to our business and our stakeholders.
SUSTAINABILITY RISK
MITIGATION
• Failing to demonstrate a clear
and compelling business case
for investing in sustainability
•T
racking and delivering a net profit contribution through sustainable behaviours
and actions
•B
ribery and governance policies for all employees, backed up by specific,
targeted training
•E
mploying people with appropriate experience when tackling new markets
and regions
•D
eploying high-quality project directors in new regions
• Losing or failing to win contracts as a result of
poor customer service
•W
inning and retaining contracts through our proactive service and
sustainable products
• Reputational damage by association with a
supplier with poor sustainability performance
•W
orking with suppliers to enhance their sustainability performance and
continuing as a funding partner to Supply Chain Sustainability School
2020 TARGET:
MITIGATION
•M
oral, legal and financial risks through accidents
or incidents to our people or subcontractors
•C
ontinue to embed, develop and enforce our best-in-class health and safety
standards and practices across our business
•E
mployee dissatisfaction and disengagement,
leading to a reduction in retention and our ability
to deliver on contracts, and loss of knowledge
•Y
our Say survey and follow-up actions to deliver upon feedback given
• Failing to protect and improve the health and
wellbeing among our people, affecting their
welfare and ability to perform their roles
2020 TARGET:
• Carillion employees involved in allegations of
bribery or corruption, leading to potential
prosecution and damage to reputation
SUSTAINABILITY RISK
2020 TARGET:
– 80% of employees feel proud to be part of Carillion (Your Say survey)
– 50% of employees utilise the Carillion special leave policy for volunteering in
areas where we work
– Deliver £40 million to profitability through sustainability actions
•P
roviding opportunities for a better work–life balance through flexible working
and Health Like Safety campaign
2020 TARGET:
– 7 0% reduction in All Accident Frequency Rate (AAFR) against a 2011 baseline
• L ack of diversity among employees leading to
missed talent, less balanced teams and decisionmaking, becoming a less attractive place to work
• Investment in diversity programmes, action plans, targets and
advisory programmes, together with focused action plans for
increasing female leadership
2020 TARGET:
–3
0% of our leadership population to be female
– Start to implement the principles of new ISO 20400 Sustainable
• Failure to support local and small and medium
enterprise (SME) businesses, resulting in loss of
work with public sector organisations, and lack
of diversity in supplier base
BETTER
•T
argets set for local and SME spend; SME charter and support through initiatives,
such as Supply Chain Sustainability School
2020 TARGET:
– Maintain 60% local spend, including SMEs in the UK
• L ack of compliance with local labour laws,
appropriate welfare and human rights standards,
evolving anti-slavery legislation and
employment practices
•E
nsure that our human resources and procurement policies, guidance and
practices adhere to the International Labour Organization’s core conventions,
international ISO standards, regional laws and align with Carillion’s Values
• F ailing to recruit and retain key people
throughout our businesses
•A
ddress key issues arising from employee engagement; using the Carillion
Leadership Programme as a pipeline for future leadership talent
• Reputational damage in the communities
where we work, leading to a reduction in
repeat business
•E
nhancing our reputation in the communities where we work and live,
through strategic programmes of investment in sustainability and
community engagement
•Y
outh unemployment and skills shortages
•E
nsuring a future pipeline of skilled individuals through our education and
training programmes. In addition, committing to directly supporting schools and
young people, as well as through national initiatives such as Your Life (UK)
2020 TARGET:
– 95% UK Carillion apprentices who complete their framework will find employment
– Maintain 10% of schools, unemployed and hard-to-reach groups1 to develop skills
to enter employment
•N
ot safeguarding when working with young and
vulnerable people
• Increasing awareness on safeguarding through training available to employees
• F ailure to understand our clients and local
community requirements and to respond to them
•T
ailoring our Community Needs Plans and programme delivery to suit the local
needs and appropriate expectations
2020 TARGET:
–M
aintain 100% contracts to have a Community Needs Plan2
–M
aintain 1% pre-tax profits donated to community activities either in cash or kind
70
1
Hard-to-reach covers a wide range of groups and are those with real or perceived barriers to engagement/employment.
2
period of three months is permitted during mobilisation of a new contract before a Community Needs Plan is required and any contracts with a duration of less
A
than six months are excluded from the Community Needs Plan requirement provided that employees are engaged in community engagement via an existing
contract or their business unit. The IMS Director must approve any additional exclusions for exceptional reasons, such as only one person working on contract.
71
OVERVIEW
BETTER
BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
BETTER
BUSINESS
BETTER
BETTER
SOCIETY
ENVIRONMENT
BETTER
BETTER
FUTURE
MANAGEMENT
& REPORTING
VALUE FOR THE ENVIRONMENT CONTINUED...
SUSTAINABILITY RISK
MITIGATION
• Trailing behind the market for low-carbon
products and services
• Innovate and launch services that deliver financial and carbon savings to clients
• Continue to benchmark our commitment through the Carbon Disclosure
Project Index
2020 TARGET:
• Continued commitment to climate change mitigation and business continuity
plans to mitigate localised regional risks
• Not being seen as delivering a robust
contribution to tackling carbon reduction
• Continued commitment to carbon reduction and minimising our footprint and,
wherever possible, achieve a carbon balance
Pollution prevention:
•E
nvironmental management policies, backed up by specific, targeted training and
systems for managers and operational teams
Ethical sourcing:
• Purchasing products and materials that haven’t
been responsibly and ethically sourced
Ethical sourcing:
•T
imber strategy and policy through WWF Global Forest & Trade
Network, targets and evidence for local spend with small and medium
enterprises, alignment to UK Sustainable Procurement Task Force Flexible
Framework principles
• Lack of waste recycling facilities in some
of our Middle East operations and geographical
dispersal of our operations in Canada
– Maintain 100% contracts to have a Carbon Reduction Plan1
• Climate change impacts affecting our business
Pollution prevention:
•P
rosecution for failure to comply
with local legislation
• Investigating opportunities to create the infrastructure to support our operations
in these areas, or to partner with appropriate specialist organisations
2020 TARGET:
– 1 00% of suppliers to respond positively to sourcing materials and products from
responsible and ethical sources
2020 TARGET:
– We are currently reassessing our carbon footprint reduction target, having
already achieved our 2020 target
• Increase in costs as energy prices increase
• Investigate and invest in appropriate renewable energy opportunities and other
means to optimise energy security
THIS REPORT
2020 TARGET:
This is our 16th sustainability report. It is structured around better business, better society and
better environment. It is aligned to the material issues identified by our stakeholders and
reflects our six strategic sustainability outcomes.
– Maintain 20% reduction in gas consumption from Carillion offices in the UK
(against a 2011 degree days normalised baseline)
– Maintain 20% reduction in electricity consumption from Carillion offices in the UK
(against a 2011 baseline)
Biodiversity:
• Failure to comply with local legislation or
contract biodiversity requirements
Waste to landfill:
• Financial implications as costs rise
• Reputational risk of not taking enough action to
tackle waste
Biodiversity:
•B
uilding mutually beneficial partnerships with organisations such as The Wildlife
Trust to develop environmental management policies, backed up by specific,
targeted training and systems for managers and operational teams
Scope
This report covers Carillion’s international
operations during the 2015 calendar year. It
encompasses the UK, Canada, and the Middle
East and North Africa. The report includes
activities undertaken as part of our various
Joint Ventures. Selection is dependent on
Carillion’s level of influence and the size
of our shareholdings.
Waste to landfill:
•R
educe costs by diverting waste and assess scope to realise value
from waste
• Increase engagement with key stakeholders and advisory groups to target an
effective zero waste to landfill and minimise waste overall
2020 TARGET:
– 97% waste diverted from landfill (zero waste to landfill)2
Resource management:
• Loss or decline of resources needed for our
business, specifically timber and water, and
consequent price rises
Our sustainability report has been prepared in
accordance with the GRI’s G4 guidelines at core
level. We have reported against self-selected
indicators based on material aspects.
• Investigate and invest in appropriate alternative resource use
2020 TARGET:
– Maintain 28% reduction in water consumption (against a 2012
normalised baseline)3
S
AND GRI APPENDIX
– Maintain 100% sourced timber to meet FSC-UK or equivalent standards4
period of three months is permitted during mobilisation of a new contract before a Carbon Reduction Plan is required and any contracts
A
with a duration of less than six months are excluded from the Carbon Reduction Plan requirement. The IMS Director must approve any
additional exclusions for exceptional reasons, such as only one person working on contract.
2
% of our waste is hazardous or non-recyclable. Therefore a 97% diversion rate is equivalent to zero waste to landfill. In 2015, we amended
3
this diversion rate target from 98% to 97% to reflect the fact that 3% rather than the predicted 2% was hazardous or non-recyclable.
3
perational water reduction (using 2012 baseline and normalised turnover) was 40% and excludes Carillion Services and Canada. The
O
water reduction on our own estate in the UK and Canada was 24% (using 2012 baseline and normalised by square footage).
4
Timber performance data from 2014 report as 2015 data not available at time of publication.
Bureau Veritas is an independent professional
services and compliance specialist. It has assured
our performance against sustainability targets,
facts and performance data in this report. See the
assurance statement that follows.
Global Reporting Initiative (GRI)
Resource management:
• Building mutually beneficial partnerships with organisations such
as the Forest Stewardship Council (FSC-UK)
1
Assurance
72
73
OVERVIEW
BETTER
BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
OVERVIEW
BETTER
BUSINESS
BETTER
SOCIETY
BETTER
ENVIRONMENT
BETTER
FUTURE
BETTER
MANAGEMENT
& REPORTING
BUREAU VERITAS’ INDEPENDENT
VERIFICATION STATEMENT
TO THE STAKEHOLDERS OF CARILLION PLC.
Introduction and objectives
Bureau Veritas UK Ltd has provided independent verification
over the stated achievement of Carillion plc’s (Carillion) 2015
sustainability targets against the stated baselines, as reported
in its 2015 Sustainability Report (the Report) on pages 66
and 67. The objective of our work is to provide assurance to
Carillion’s stakeholders over the level of achievement of all
targets and of the reliability and accuracy of the supporting
performance data across a selection of contracts.
Responsibilities of the verification provider
The preparation of the Report is the sole responsibility of
Carillion. The verifier has an obligation to stakeholders and
users of the report and is exclusively responsible for the
content of this verification statement. Carillion has provided
access to the documentation and data required to undertake
the verification process and Bureau Veritas is confident that
no material information has been withheld.
Boundary and scope
Reported performance against targets in Carillion’s report
covers global operations across the UK, the Middle East and
Canada. The information and data reviewed as part of this
assurance engagement cover the reported performance for
the reporting period: 01 January 2015–31 December 2015,
with the exception of certain targets – as stated in Carillion’s
sustainability report.
Bureau Veritas assurance protocol has been used to conduct
this assurance engagement, which is based on best practice
assurance standards including AA1000AS, ISAE3000, and
ISO14064-3. The verification was conducted to a limited level
of assurance.
Methodology
Limitation and exclusions
In order to form its conclusions, Bureau Veritas
conducted the activities outlined below:
Excluded from the scope of our work is:
•Any information not directly linked to the selected targets;
•Phone interviews with key Carillion personnel (Head
Office and Regional Staff);
•Activities outside the defined reporting period;
•Company strategy and position statements (including any
expression of opinion, belief, aspiration, expectation or aim);
•Review of data management and data accuracy
through interrogation of spreadsheets and sampling of
select datasets;
•Financial data which is taken from Carillion’s Annual Report
and Accounts.
•Review of supporting source documentation
(including: policies, procedures, minutes of meetings,
presentations, invoices, waste transfer notes, etc);
This independent statement should not be relied upon to
detect errors, omissions or misstatements that may exist
within Carillion’s reported information. The scope of our work
was defined and agreed in consultation with Carillion. Our
work covers global operations and relies upon the accurate
collation of information at Carillion’s worldwide locations and
its UK offices.
•Review of consolidated site and business unit
sustainability data sets.
Bureau Veritas opinion
Based on our verification activities, no evidence has
come to our attention to suggest that:
Statement of Independence, impartiality
and competence
Bureau Veritas is an independent professional services
company that specialises in quality, health, safety, social and
environmental management advice and compliance with
over 180 years history in providing independent verification
and assurance services. Bureau Veritas has implemented
a code of ethics across its business which ensures that all
our staff members maintain high standards of integrity and
independence. We believe our verification assignment did
not raise any conflicts of interest. Our team completing the
work has extensive knowledge and experience of conducting
verification over sustainability information and systems.
Bureau Veritas UK Ltd
London, March 2016
•the reported performance against targets do not
provide a fair representation of Carillion’s performance
for the defined period; and
•there are significant omissions which could affect
stakeholders’ ability to make informed judgements on
Carillion’s reported performance against targets.
Such opinion is based on work undertaken and defined
herein. Certain limitations and exclusions apply and
are included below but these do not detract from the
verification opinion stated.
74
75
GET IN TOUCH
How can we work together for
even more positive outcomes?
Let us know your thoughts
[email protected]
See our Sustainability Overview 2015 website at www.carillionplc.com/sustainability2015
Contact us
Email: [email protected]
Tel: +44 (0) 1902 422 431
Follow us on LinkedIn,
Twitter and Facebook
@Carillionplc

A BETTER TOMORROW - Sustainability Report 2015: Carillion plc

Transcription

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