BERKELEY GROUP SUSTAINABILITY REPORT 2011 Berkeley Group Group Berkeley sustainability report 2011
The Berkeley Group Holdings plc Berkeley House 19 Portsmouth Road Cobham Surrey KT11 1JG UK
Telephone +44 (0)1932 868555 Facsimile +44(0)1932 868 667 Website www.berkeleygroup.co.uk
Design by Hunter Design
Printed in England by Alito Group This report is printed on Greencoat Silk
Our vision for the future CONTENTS
INTRODUCTION Who we are and what we do 1 About this report 2 Chairman’s statement 3 Our strategy and achievements 4–5 Managing Director’s statement 6–9 Vision2020 10–11 How we manage risks and opportunities through Vision2020 12–13 Our Vision2020 governance structure 14 Reviewing Vision2020 and defining our reporting content 15
THE CUSTOMER Our vision for 2020 16–17 Progress against Vision2020 commitments 18 EXPERIENCE The customer focus 19 Progress review 20–21 Case Study: What our customers think about sustainability 22 Vision2020 commitments and ambitions moving forward 23
BUILDING Our vision for 2020 24–25 Progress against Vision2020 commitments 26 GREENER HOMES Progress review 27–31 Case Study: An ecological legacy 32 Vision2020 commitments and ambitions moving forward 33
DELIVERING Our vision for 2020 34–35 Progress against Vision2020 commitments 36 SUSTAINABLE COMMUNITIES Progress review 37–40 The Berkeley Foundation 41 Case Study: An employment success 42 Vision2020 commitments and ambitions moving forward 43
RUNNING A Our vision for 2020 44–45 SUSTAINABLE BUSINESS Progress against Vision2020 commitments 46 Reporting to our investors 47 Progress review 48–51 Case Study: Interview with Lorraine Cooper, Sustainability Manager 52 Vision2020 commitments and ambitions moving forward 53
PERfORMANCE Vision2020 performance summary 54–57 Key performance indicators 58–65 REPORT GRI compliance 66–69 GRI performance indicators 70–73 Upstream sustainability services – Jones Lang Lasalle 74–75
Front Cover: Stanmore Place. INTRODUCTION – SUSTAINABILITY REPORT
WHO WE ARE AND WHAT WE DO
The Berkeley Group is a residential-led property developer with a passion for creating successful, sustainable places. This begins with acquiring land in the right locations. We then develop schemes renowned for their design, public realm, transport, open space and access to employment and amenities - all the things that people look for in a place to live. We operate in London and the South East at a natural size, respecting the cyclical nature of property development. Our core brands are Berkeley, St James, St George and St Edward, our joint venture with Prudential. The developments we create range in size from under twenty homes to complex mixed-use urban regeneration schemes with over four thousand. The types of homes we build include contemporary urban apartments, refurbished historic buildings and traditional family homes. Our mixed-use developments incorporate offices, retail units, leisure facilities, hotels and restaurants. We sell homes and commercial space to a broad range of customers; housing associations, universities, shared-ownership buyers, key workers, investors, private buyers and commercial occupiers.
The Berkeley Group is registered in the United Kingdom at Berkeley House, 19 Portsmouth Road, Cobham, Surrey, KT11 1JG. For more information on the company, including information on the subsidiary and joint venture companies and for details of our respective ownership in each of these, please see our Annual Report and Accounts.
Berkeley Sustainability Report 2011 1 SUSTAINABILITY REPORT – INTRODUCTION
ABOUT THIS REPORT Our vision for the future
This sustainability report provides a summary of the progress Berkeley has made against our sustainability strategy for the period from May 2010 to April 2011. Within the report we provide readers with an overview of what Berkeley does, an explanation of Vision2020 and how it is being delivered, as well as case studies demonstrating how we incorporate sustainability into our work.
Berkeley uses the term ‘sustainability’ to describe how we manage the environmental, social and economic impacts of, and risks facing, our business in a responsible way. This applies to both the day-to-day management of our business and the developments that we build. This sustainability report aims to present a transparent review of our sustainability performance to our stakeholders. Therefore the content of the report was defined through an extensive materiality review which included consultation with a number of our key stakeholders.
Layout The first section of the report contains statements from both our Chairman and Managing Director. This is followed by a summary of our 2010/11 achievements and an overview of our sustainability strategy, Vision2020. The next section is divided into four parts which reflect the key action areas in our Vision2020 strategy: The Customer Experience, Building Greener Homes, Delivering Sustainable Communities and Running a Sustainable Business. The final section presents a detailed assessment of our performance, highlighting progress against our commitments and our key performance indicators.
Scope All of Berkeley’s operations are included in the scope of this report as they all have sustainability impacts and are all under Berkeley’s direct control. This report also covers, where possible, those operations where we have an influence, e.g. our supply chain. Any areas where we do not have complete data to report against all of our operations are indicated within the report. The report focuses on those issues that we consider most material to the running of our business, as identified by our materiality review (see page 15). Additional information on our business and its financial performance, corporate governance, regulatory issues and directors’ remuneration is provided in our Annual Report and Accounts. Full details of our approach to sustainability including all policies, additional case studies and performance data can be found on our sustainability website, www.berkeleygroup.co.uk/ investor-information/sustainability.
Global Reporting Initiative (GRI) This year we are delighted to have self certified our sustainability reporting to Level B of the Global Reporting Initiative (GRI) Sustainability Reporting Framework. Our conformity with these guidelines and an explanation of how we comply with the GRI principles is available in our performance section of this report.
Feedback If you have any feedback or further questions about this report please contact [email protected]
2 Berkeley Sustainability Report 20112011 INTRODUCTION – SUSTAINABILITY REPORT
More than a sustainability strategy
This is our tenth annual sustainability report. In the years since we published our first report in 2002, Berkeley has built a reputation as the most sustainable major housebuilder in Britain and created a robust strategy that reflects the ever demanding environment within which we operate.
In the introduction to our first sustainability report, I said that we needed to “bring together the short-term and long-term requirements of our shareholders with the desire to create communities that work for future generations”. We have delivered this ambition Our vision in the ensuing years by building homes and communities that are both commercially for the future successful and sustainable in every sense: durable, desirable, convenient and healthy places to live. This approach is now embedded in our business through our Vision2020 strategy which we launched last year. Over the last ten years it has been interesting to see the growth in the importance “ we perceive that companies in all sectors have given to sustainability. Almost every company now claims that sustainability is central to the way they work. I can only say that I am proud Vision2020 not simply that this is genuinely true of Berkeley and has been for many years. It is why we perceive Vision2020 not simply as a sustainability strategy, but as a plan for the whole business. as a sustainability Through Vision2020 we have set out our intention for Berkeley to be one of the most strategy, but as successful and sustainable businesses in Britain. We measure our success, in part, a plan for the through strong financial performance and I am therefore pleased that our results for 2010/11 demonstrate that we are on track to achieve this element of our vision. whole business” We sold 2,544 homes and over 119,351 sq ft of commercial space, generating a Return on Equity for our shareholders of 15.3%. Looking to the future, we have 27,026 plots in our land bank and forward sales of over £813.5 million. We are working in a tough financial climate. Public spending cuts, mortgage availability, and the shortage of housing affects everyone. And yet Berkeley is an optimistic business. We have made the most of improving market conditions in London and the South East, both in terms of sales and the purchase of land. We bring that same determination and drive to sustainability, which remains the pre-eminent challenge for us all.
Tony Pidgley Chairman
Berkeley Sustainability Report 2011 3 SUSTAINABILITY REPORT – INTRODUCTION
OUR STRATEGy AND ACHIEVEMENTS Our vision for the future
The following table summarises Berkeley’s progress against the Vision2020 commitments we established in May 2010 and against our key performance indicators within each of our four Vision2020 action areas.
positioning our customers at the heart of every decision we make
2010/11 pERFORMANCE COMMENTARy OTHER pROGRESS IN 2010/11
The 2010/11 score of 96% continues the 5-year trend of Completed market research with 26% of 96% improved customer service performance and emphasises customers to establish how sustainability of customers would the success of Vision2020 in embedding the commitment issues influenced purchasing decisions. “Recommend us to a friend” to The Customer Experience. Communicated Vision2020 to customers via a number of mediums, including brochures, Achieved BREEAM Very Good on The commitment to sustainability and high environmental marketing boards, websites and Berkeley’s annual reports. The cusTomer experience The cusTomer performance standards also applies to commercial units. This year, Berkeley completed 7,067m2 of commercial 45% space, of which 45% was certified to BREEAM Very Good. of completed commercial 100% of commercial developments in planning have developments committed to achieve BREEAM Very Good.
COMMITMENTS FROM MAy 2011 AMBITIONS FROM MAy 2012 Survey every customer to measure satisfaction and continue Install Smart Meters in all new homes to help to target that over 90% would recommend us to a friend. our customers understand their energy use. Ensure that all commercial space and student accommodation On selected developments provide customers with a achieves BREEAM Very Good or is capable of achieving BREEAM ‘sustainability options’ package which enables them to Very Good if the fit-out is to be undertaken by the tenant. purchase additional sustainability features for their homes.
Developing high quality places where people want to live, work and spend leisure time
2010/11 pERFORMANCE COMMENTARy OTHER pROGRESS IN 2010/11
By designing homes to meet the Lifetime Homes standard, Achieved an average score in the Berkeley ensures those homes are able to adapt to the changing Considerate Constructors Scheme of 35.5, 29% needs of the residents who live in them during their life. higher than the UK all sector average. of homes completed 100% of homes submitted for planning in 2010/11 committed met the Lifetime to apply the Lifetime Homes principles in their design. Homes standard
Berkeley demonstrates its commitment to delivering well-designed homes and communities by committing 5 to the Building for Life Silver Standard on all schemes. schemes achieved Building for In 2010/11, Stanmore Place achieved the Building for Life Life Standard Gold Standard and a further four schemes achieved the Delivering susTainable communiTies Delivering susTainable Silver Standard. In addition, 43 schemes in planning have committed to achieving this standard.
COMMITMENTS FROM MAy 2011 AMBITIONS FROM MAy 2012 Achieve at least the Building for Life Silver Standard Publish annually an independently verified assessment on all new developments. of the design quality of all new Berkeley developments. Apply Berkeley’s Community Engagement Strategy Ensure all homes meet the Lifetime Homes standard. on all planning applications over 500 units.
4 Berkeley Sustainability Report 2011 INTRODUCTION – SUSTAINABILITY REPORT
Some of our main commitments for the coming year and our ambitions for May 2012 onwards are also shown in the tables below. A total of 40 More details on Berkeley’s 2010/11 commitments were made in May 2010 and we have added a further sustainability performance and a full seven new commitments from May 2011. explanation of Vision2020 can be found on our website: www.berkeleygroup.co.uk/sustainability
Minimising the environmental impact of our homes
2010/11 pERFORMANCE COMMENTARy OTHER pROGRESS IN 2010/11
Of the 65% of certified units, 34% were certified to Code 100% of sites submitted for planning are 65% for Sustainable Homes Level 3 with the remainder certified within 1km of a public transport node and of completed homes certified using the EcoHomes methodology. In addition, Berkeley provide cycle storage. using an environmental started the first Code Level 4 development during 96% of sites submitted for planning have performance methodology 2010/11 at Ropetackle in Shoreham-by-Sea. committed to employing an ecologist. builDing greener homes The percentage of development completed on brownfield land dropped below the target of 95% in 2010/11 due to 92% completions occurring on four greenfield sites. In future of development completed years, Berkeley expects that this will rise back to the target on brownfield land level as the commitment to brownfield land is reflected in the land purchasing decisions made by the Group.
COMMITMENTS FROM MAy 2011 AMBITIONS FROM MAy 2012 Design all new homes to achieve at least Level 3 Design all new homes to achieve Level 4 of the Code of the Code for Sustainable Homes. for Sustainable Homes. Consider future climate change risks as part Ensure over 75% of completed homes are supplied with of development design and construction. energy from renewable or low carbon technologies.
Managing the economic, social and environmental impacts of our business
2010/11 pERFORMANCE COMMENTARy OTHER pROGRESS IN 2010/11
RIDDOR Accident The Accident Incident Rate (AIR) achieved is 0.20 lower Reused or recycled 82% of construction, Incident Rate of than 2009/10, despite an increase in the number of demolition and excavation waste. operatives employed on Berkeley sites. This result is Contributed over 600 hours of staff 3.63 also below the industry average. time to communities and charities. Enhanced the Good Work Health & Safety initiative and arranged to Total Carbon Berkeley collects data on all direct carbon emissions run contractor conferences during Emissions of (electricity, gas, petrol, diesel consumption) and 2011/12 for sub-contractor Directors. those relating to business travel. In 2010/11, the normalised direct emissions decreased by 3.94% running a susTainable business running a susTainable 1.81 against the 2009/10 baseline. tonnes CO2e per operative
COMMITMENTS FROM MAy 2011 AMBITIONS FROM MAy 2012 Reduce operational carbon dioxide emissions Achieve a reportable accident rate of less than 3.5 incidents by 5% annually until April 2012. per 1000 employees and sub-contractors. Reuse or recycle over 80% of construction, Carry out audits of at least 25% of our suppliers to ensure demolition and excavation waste. compliance with our Sustainable Procurement Policy.
Berkeley Sustainability Report 2011 5 SUSTAINABILITY REPORT – INTRODUCTION
CREATING SUSTAINABLE PLACES TO BE PROUD Of
“ I’ve been delighted The Berkeley Group’s Managing Director, Rob Perrins, reflects to see how well on how Berkeley has performed over the last year and highlights some of the challenges and opportunities he expects the Vision2020 has been business to face in the year ahead. embraced both within the company and by How does Berkeley understand sustainability? The way Berkeley approaches sustainability is intrinsically different to most others our stakeholders. in the industry. This difference begins at the point of land acquisition, with the purchase It’s a strategy for of sites in locations with great potential and scope to create a low carbon community. Good design gives us a way to transform these sites into successful places. Debate the whole business, and collaboration with local people then shapes the way we think and work. The process not just a plan about culminates in offering our customers a home with sustainability woven right through it, but without the glaringly obvious kit and style that is typically associated with environmental ‘green’ housing. sustainability” Over the last few years, the focus of the sustainability agenda has been on tackling climate change and reducing carbon emissions. These are both incredibly important – but they’re not the whole story. Sustainability is also about creating durable, beautiful places where people want to live, close to where they work. Buyers are looking for the chance to buy a home in a place where they will be comfortable and content, and often these qualities are created through investment in the landscape as well as the architecture of each development. I am confident every developer can build low carbon homes. But the real Berkeley difference lies in combining this technical ability with a passion for creating the kind of places in which people find it easy to live healthy, happy and successful lives.
What has gone well over the past year? I’ve been delighted to see how well Vision2020 has been embraced both within the company and by our stakeholders. It’s a strategy for the whole business, not just a plan about environmental sustainability. Its influence now touches all parts of the business, from land and planning through to our customer service teams. It has made us re- evaluate some of our thinking and our processes, the net result of which is an even stronger focus on the customer, on good design and how we run a sustainable business. Externally, we have won a raft of awards. These included first place in the 2010 NextGeneration Sustainable Communities Benchmark. Delivering sustainable communities is one of the four key areas in Vision2020 and this result is an endorsement of our approach. We also won PricewaterhouseCooper’s Building Public Trust Award for our sustainability reporting and Building Magazine’s Housebuilder of the Year.
6 BerkeleyBerkeley SustainabilitySustainability ReportReport 20112011 INTRODUCTION – SUSTAINABILITY REPORT
In March 2011, we launched The Berkeley Foundation. This is the first time any housebuilder has set up a foundation to spearhead its CSR programme. However, it’s not “ The Berkeley designed simply as a charitable initiative. I see it as part of how we help to make society Foundation focuses sustainable. The Berkeley Foundation focuses on supporting young people in London and the South East who are not in education, employment or training. We know their fortunes on supporting young are directly connected to the success of the places where Berkeley works, and we’re now people in London and working strategically with a small group of partners in the voluntary sector to support them. Sports coaching and housing advice form two of the major programmes we will the South East who help deliver. are not in education, In terms of the commitments made when we launched Vision2020, overall I am pleased to report good progress has been made during the course of the year. We have either employment met or are on track to meet the majority of our two-year commitments and have a clear or training” understanding of what we need to do in the coming year to improve our performance. In particular, while we have not met our energy or water operational targets this year we have responded to this by putting in place some clear action-focused commitments for the coming year.
Vision2020 was launched with a commitment to cut injury and accident rates to among the lowest in the industry. How has Berkeley performed? Overall, our Health & Safety performance this year has been very good. We have achieved a RIDDOR injury rate of 3.63, which is well below the all industry average. However, it’s with great regret that I have to report a fatality at a construction site on which we were acting as the client. Our thoughts and deepest sympathies are with the worker’s friends and family for the loss. This incident reminds us that it only takes one mistake, one lapse in concentration, for a serious accident to occur. That’s why we launched our “Good Work” campaign last year and put considerable effort into delivering its key message during 2010/11. Good Health & Safety is as much about the behaviour of workers as it is about the working environment and we need to pay equal attention to both to improve our Health & Safety performance further.
Berkeley Sustainability Report 2011 7 SUSTAINABILITY REPORT – INTRODUCTION
“ The tightening of Do you think that new policies from the Coalition Government Building Regulations improve the operating environment for Berkeley? More house-building and a healthy housing market will be essential catalysts for growth in 2013 towards in Britain. We therefore welcome the Government’s recent moves to support the housing ‘Zero Carbon’ in 2016 market and deregulate the construction industry. continues to be the The announcement that ‘Zero Carbon’ Building Regulations from 2016 will only hold developers accountable for those carbon dioxide emissions covered by Building most significant Regulations has been the subject of heavy criticism from some parties. However, on the vast majority of schemes, it would not have been possible to generate enough energy challenge that we on-site to offset these non-regulated emissions. The offsetting would have had to face in the short- occur through off-site “Allowable Solutions” with no direct carbon or cost saving to the householder. Accounting for these non-regulated emissions would also have imposed to medium-term ” an increased cost burden on housebuilders, potentially affecting the viability of marginal sites. The announcement therefore helps to increase housing delivery and we welcome it. In our experience, the introduction of the Localism Bill has had an impact. Outside of London, some local authorities have appeared to delay decision-making until they fully understand the context. The Bill also puts great emphasis on community empowerment. I think this will focus more attention on the social dimensions of sustainability. We all debate the environmental agenda constantly but there is much less analysis of the social and economic aspects of place-making. I think the Prime Minister’s determination to promote a debate about well-being and happiness sets an important challenge for residential developers and it could be that the Coalition Government will motivate people to address this dimension of sustainability as strongly as the previous Government did carbon.
What are the big sustainability challenges faced by Berkeley? The tightening of Building Regulations in 2013 towards ‘Zero Carbon’ in 2016 continues to be the most significant challenge that we face in the short- to medium-term. These targets will have major implications for the way we design and build homes. We need to find technical solutions that allow us to deliver carbon reductions whilst at the same time building homes that continue to be healthy, functional places in which our customers want to live.
8 Berkeley Sustainability Report 20112011 The Berkeley Group, working in London & the South East INTRODUCTION – SUSTAINABILITY REPORT
“ Vision2020 will continue to be the vehicle for developing and communicating our approach to sustainability. We will be refining our ambitions to make sure we have the right targets 375 Kensington High Street, W14 in place from 2012 ”
The next long-term challenge is likely to be around climate change adaptation. There is a constant design challenge in creating homes that on one hand have extremely high levels of insulation and on the other are not at risk of overheating in a warmer future climate. Adaptation also involves a better understanding of green infrastructure and the design of spaces between buildings. Intelligent use of high quality open space will need to be a feature of every new housing development, helping us keep places cool and handle extreme weather conditions.
What are your priorities for the year ahead? Over the past year, Berkeley has bought some exceptional development sites in excellent locations. We will not compromise on the quality of homes we build in these locations. This will mean that in a housing market where people have choice and can demand the best, we are going to be very well positioned. At the same time, we have been able to test new ways of bringing homes to the market: for example, through our award-winning Private Rental Initiative with the HCA. I think we need to encourage a shift in public attitudes towards the private rental sector. There is a broader marketplace than people sometimes consider and the Government could actively help to shape the way people think about this type of housing. We have a number of exciting new projects underway, including sites at 375 Kensington High Street, Dickens Yard in Ealing, Tideway Wharf in Vauxhall and Crossrail at Woolwich. I look forward to embedding our Vision2020 commitments into their construction, just as we have done throughout their planning and design. Vision2020 will continue to be the vehicle for developing and communicating our approach to sustainability. We will be refining our ambitions to make sure we have the right targets in place from 2012. We always welcome feedback from our stakeholders on this strategy and I hope anyone who would like to shape our approach will get in touch.
Rob Perrins Managing Director
Tideway Wharf (Riverlight,), Vauxhall
Berkeley Sustainability Report 2011 9 SUSTAINABILITY REPORT – INTRODUCTION
Vision2020
Our vision for the future
“ Our vision is that BY 2020 BERKELEY WILL BE ONE OF THE MOST SUCCESSFUL AND SUSTAINABLE BUSINESSES IN BRITAIN.
In 2010 Berkeley developed and launched Vision2020, a ten-year sustainability strategy that defines how we want the business to perform by 2020 and how we are going to get there. Over the past year we have successfully implemented the strategy whilst also further developing our thinking behind it.
We realise that sustainability and financial performance do not exist in isolation from one another and that in fact delivering value to shareholders is integral to running a sustainable business. We have therefore now woven this into Vision2020 and as a result we no longer consider Vision2020 to simply be our sustainability strategy but instead a strategy for the whole business. We have refined our headline vision to reflect this: “By 2020 Berkeley will be one of the most successful and sustainable businesses in Britain”. The strategy to achieve this vision is divided into four action areas where we feel we need to drive our performance. These action areas form the framework of Vision2020 and each one has its own detailed vision statement which describes exactly how we want to perform in that area by 2020. You can read these detailed vision statements on the first page of each of the relevant chapters in this report.
The Customer Building greener Experience homes Positioning our customers Minimising the environmental at the heart of every impact of our homes decision we make
Our vision for the future
Delivering Sustainable Running a Sustainable Communities Business To read more about what Vision2020 means for our customers Developing high quality places Managing the economic, www.berkeleygroup.co.uk/environment/ where people want to live, work social and environmental our-vision-for-2020 and spend leisure time impacts of our business
10 Berkeley Sustainability Report 2011 INTRODUCTION – SUSTAINABILITY REPORT
WE WILL ACHIEVE THIS By CREATING BEAUTIFUL pLACES THAT MAkE IT EASy FOR pEOpLE TO LIVE SUSTAINABLE LIVES”
vision2020 commitments and ambitions We implement Vision2020 through a total of 40 commitments and ambitions in each of the four action areas. Our commitments represent actions we are taking (or targets we have set) to improve performance. Our ambitions are the future steps we think we will need to take to continue to improve performance. They provide an indication of what our future commitments are likely to be. We set our commitments and ambitions on a two-year cycle. Our current commitments were set in May 2010 and run until April 2012. From May 2012 we’ll adopt new commitments and provide new ambitions. You can find our current commitments and ambitions set out in the table on the final page of each of the relevant chapters of this report.
Our vision for the future
Both our commitments and ambitions are reviewed annually to ensure they still reflect the operational context, our business priorities, the legislative environment and the material issues identified by our stakeholders.
Sustainability commitments have been set on a two-year cycle BerkeleyBerkeley Sustainability Report 2011 11 SUSTAINABILITY REPORT – INTRODUCTION
How we manage risks and Opportunities Our vision for the future through Vision2020
The commitments and ambitions within our Vision2020 strategy help us manage the key risks facing the business. They are also designed to help us exploit some of the opportunities that we believe exist.
The diagram below describes the key risks and opportunities that we have identified in each action area, indicates their financial impact and shows the commitment or ambition that we have put in place to manage them.
Key Risk Financial Impact Management through Vision2020
erience Failure to meet Lower customer Commitment to target
xp customer expectations recommendations that over 90% of e and sales as a result customers would of damage to corporate recommend reputation from us to a friend poor service customer Lower market value of he
T homes due to lack of customer appeal
Key opportunity Financial Impact Management through Vision2020
Engaging with customers Higher sales due Commitment and ambition to inform better design to highly desirable to carry out post-occupancy and comfortable monitoring to measure the home design success of designs Increased market value Commitment to survey of homes due to their 25% of customers on how customer appeal sustainability influenced their home purchase
Key Risk Financial Impact Management through Vision2020 Failure to engage Failure to gain Commitment to apply our sufficiently with a planning approval Community Engagement community in the Strategy on all planning communities Reduced market value development process applications over 500 units of homes in poorly functioning communities Ambition to demonstrate which do not meet the ability to involve every tainable local needs age group in debating
sus and supporting plans for
new development
Key opportunity Financial Impact Management through Vision2020 elivering D Creation of new Higher sales due to Commitment to achieve at beautiful places desirability of the least the Building for Life location of our homes Silver Standard on Increased market value all new developments of homes due to the Commitment to use bespoke customer appeal of design on all developments the location to create high quality homes and places
12 Berkeley Sustainability Report 2011 INTRODUCTION – SUSTAINABILITY REPORT
Key Risk Financial Impact Management through Vision2020 homes Increasing legislatory/ Increase in cost of Preparing the business by regulatory requirements building homes setting commitments and ambitions in advance of Increase in research and new legislatory and greener development costs regulatory requirements uilding B
Key opportunity Financial Impact Management through Vision2020
Market differentiation Higher sales due to the Commitment to design all of our product appeal of unique product new homes to achieve at offering to customers least Level 3 of the Code for Sustainable Homes and Increased market value an ambition to design all of homes due to new homes to Level 4 demand for good from 2012 sustainable design
Key Risk Financial Impact Management through Vision2020 Poor health, safety Higher operating costs Various commitments business and environmental due to increased energy and ambitions setting performance use and waste production sector leading actions and performance targets Higher operating including RIDDOR rates of costs due to increased tainable less than 4, and 5% energy insurance premiums sus
and water use reductions
and costs associated a
with legal action unning
Key opportunity Financial Impact Management R through Vision2020
Enhanced corporate Increased shareholder Commitment to reputation due to value delivered through undertake internal sustainability of increased investor environmental audits operations appeal on all construction sites Lower operating costs Commitment to reuse or resulting from lower recycle over 80% of waste production and construction, demolition lower energy use and excavation waste
Berkeley Sustainability Report 2011 13 SUSTAINABILITY REPORT – INTRODUCTION
OUR VISION2020 GOVERNANCE Our vision for the future STRUCTURE
Berkeley has a strong governance structure in place to manage the future direction of our Vision2020 strategy and its implementation within our business.
Our Board level sustainability/health & safety committee was set up in 2010 and is chaired by our non-executive director, John Armitt. This committee meets twice a year to agree the direction of Berkeley’s sustainability/Health & Safety strategy (Vision2020). The committee ensures that the chosen direction for the sustainability and Health & Safety strategy is aligned with Berkeley’s business objectives. It also agrees the measures used to assess Berkeley’s overall performance. The berkeley group sustainability and health & safety Working groups are chaired by our Director in Charge of Sustainability, Karl Whiteman. The Sustainability Working Group meets three times a year and its primary role is to agree the detail of Berkeley’s sustainability strategy. In doing so, the working group ensures that Berkeley’s policies, Vision2020 commitments, ambitions and performance indicators are appropriate. The working group is also responsible for overseeing and ensuring implementation of the agreed strategies, including reviewing progress against Vision2020, performance against indicators and compliance with policies. The working group’s membership consists of directors and senior managers from each of our operating divisions. The Health & Safety Working Group functions in the same manner. Each of our operating companies has nominated sustainability representatives who sit on Divisional sustainability Working groups. These working groups enable the Group’s sustainability strategy to be disseminated and implemented within the divisions. They review and agree implementation strategies, monitor each division’s sustainability performance and share best practice. john Armitt karl Whiteman Chairman of the Group’s Director in Charge Our sustainability governance structure is supported by a small central sustainability Sustainability and Health & of Sustainability and Safety Committee. Health & Safety. team who assist in the delivery of our strategy across the Group. However, we believe that the key to running a sustainable business is to devolve responsibility and to that end, our ethos is that every one of our employees has responsibility for integrating sustainability into their own roles and working practices. See page 52 for an interview with one of our Sustainability Managers.
Main Board
Health & Safety / Sustainability Committee
Berkeley Group Berkeley Group Health & Safety Sustainability Working Working Group Group
Divisional Sustainability Working Groups and Health & Safety Forum
Our people
14 Berkeley Sustainability Report 2011 The Berkeley Sustainability Working Group INTRODUCTION – SUSTAINABILITY REPORT reviewing Vision2020 and defining our reporting content
During 2010/11, we took the opportunity to update our materiality Materiality Tests review in order to identify the significant environmental, economic and social impacts of our business and to ensure that we continue Risks and Opportunities to prioritise the management and reporting of these impacts. Review the likely impact of Our previous materiality review was conducted in 2008 but, key sustainability risks and given the pace at which the sustainability agenda is moving, opportunities for the business. we decided that it would be appropriate to update this work Policy for 2010/11. The 2010/11 materiality review has been used Determine the extent to which to inform the content of this sustainability report as well as the Berkeley Group policies the annual review of our Vision2020 strategy. are being managed through Vision2020 and reported The updated materiality review was completed by undertaking materiality tests on annually. in line with GRI guidelines. Peer Review Each test highlighted a number of material issues. These were categorised and their Identify those issues which significance was ranked according to the frequency with which they occurred during peers in the housebuilding and the tests. Each issue was then aligned with one or more Vision2020 action area. construction sector are expected The results of the materiality review are shown in the diagram below to manage and report on. which demonstrates the significance of each material issue to Berkeley and which Vision2020 action area they fall into. Stakeholder Concerns Conduct a survey to establish We have used these results to define the content of each of the following sections the issues which our stakeholders within this sustainability report. The results, in particular the feedback from the deem material. stakeholder survey, have also influenced a number of updates to our Vision2020 commitments and ambitions that we have made this year. Regulatory Review Assess which current and future regulatory and non- regulatory issues are material to the business.
Berkeley Group materiality review: significant issues
Research & Sustainable Development Communities
Land Use Sustainable Pollution Procurement Prevention
RIDDOR Environmental Performance INCREASING SIGNIFICANCE Post-occupancy Waste Standards Monitoring Customer Satisfaction Energy
Transport Water H&S Climate Prosecutions Change
You can read more about our materiality The Customer Experience Delivering Sustainable Communities review and its results on our website Building Greener Homes Running a Sustainable Business www.berkeleygroup.co.uk/ investor-information/sustainability
Berkeley Sustainability Report 2011 15 THE CUSTOMER ExpERIENCE
our vision for 2020 “ We will consistently meet or exceed our customers’ expectations by delivering well-designed, beautiful homes and communities where they can live happy, healthy and environmentally-efficient lifestyles. The service that we provide to our customers throughout the purchasing process and after completion will be exceptional. Customers will be positioned at the heart of our business and will be central to the decisions that we make.”
16 Berkeley Sustainability Report 2011 THE CUSTOMER ExpERIENCE – SUSTAINABILITY REPORT
Royal Arsenal Riverside, SE18. Berkeley Sustainability Report 2011 17 SUSTAINABILITY REPORT – THE CUSTOMER EXPERIENCE
Progress against Vision2020 commitments
This table provides a quick-glance summary of our Customer Experience OVERALL commitments and the progress we have progress Our Commitments from May 2010 2010/11 made against them during 2010/11. Customer satisfaction The pages that follow describe our progress in more detail. To read our updated 2011/12 commitments Survey every customer to measure satisfaction and continue and our ambitions in this Vision2020 action area, to target that over 90% would recommend us to a friend. please go to page 23 at the end of this section. To see a full summary of progress against all of Selling the benefits our Vision2020 commitments, go to page 55. Highlight the sustainability benefits of our developments in all sales and marketing materials/handover packs. Train all sales and marketing staff in sustainability so that they are able to sell the benefits to customers. Communicate Vision2020 to all customers. Ensure that all commercial space achieves BREEAM Very Good or is capable of achieving BREEAM Very Good if the fit-out is to be undertaken by the tenant.
96% Driving the market for sustainable homes of customers in 2010/11 would recommend Undertake market research on at least 25% of purchasers Berkeley to a friend to understand how sustainability influences their home buying preferences.
Commitment not met in 2010/11 Further action required to meet commitment during 2011/12 Commitment on track for completion by May 2012
18 Berkeley Sustainability Report 2011 THE CUSTOMER ience er xp e FOCUS customer
he T
Our customers are considered during every stage of the development process to ensure that we meet and exceed their expectations.
The diagram below explores some of the key questions that we ask during each of these stages.
D ACQUISIT LAN ION
P L E A R Will our customers be N A attracted to this location? N C IN S G E L D Are we providing customers with E A the right information to ensure S S What size and type of home they understand how to operate IG R and maintain their new home? will our customers want to E purchase in this location? N T Have we got the right people and F procedures in place to exceed our What features do we need to A integrate into the design to customers’ expectations when
create a place that is desirable responding to any problems that arise?
to our customers?
Are we responding appropriately
to the feedback we receive so
that we can continue to improve
our product and our service?
THE
Are we providing our customers CUSTOMER
G with the right information so that Does the specification of the home
N meet our customers’ aspirations? N I they fully understand the benefits at the centre of
T of the homes we build? Is the design and layout of G I
E every decision the living space functional, S K Are our sales staff sufficiently
comfortable and healthy? E
R trained to be able to provide D
A customers with exceptional Have we minimised the running
costs and maintenance D M service from initial enquiry,
requirements of the home? E
& through to reservation L
I
S and exchange?
A
E T
L E
A D
S
Are the contractors that we use
able to deliver the quality that
Are we managing the construction
our customers expect?
process well enough to deliver
Would our customers be happy
homes on time and without defect?
with the quality and source of the
products that we are procuring?
C
O
T
N
N
S
E
T
R M
U E
R
C
U T I C O O N PR
BerkeleyBerkeley Sustainability Report 2011 19 SUSTAINABILITY REPORT – THE CUSTOMER ExpERIENCE pROGRESS REVIEW
Our customers are fundamental to our success. We aim to provide them with an exceptional experience throughout the purchasing process and with our aftersales service. We ensure our customers are at the heart of the decisions that we make, from the land that we buy, through development planning to the detailed design, specification and construction of homes and commercial space. Meeting and exceeding our customers’ expectations helps secure our reputation and leads to repeat custom, both of which are key in maintaining our financial performance over time.
As we build to higher standards of sustainability, we have the opportunity to enhance the saleability of our product by making sure our customers understand the advantages that a sustainable home provides. Equally we must also ensure that the sustainable features we incorporate into our homes match the needs of our purchasers. The following pages chart our progress this year against our commitments relating to our customers.
customer satisfaction % of customers who would recommend us to a friend We use customer satisfaction surveys undertaken by an independent external agency to measure how well we are meeting our customers’ expectations. This year 96% of our 2010/11 96% customers said they would recommend us to a friend, which continues the 4-year trend 2009/10 93% of improved performance. This result also emphasises the success of Vision2020 in embedding our commitment to The Customer Experience. 2008/09 91%
2007/08 89% 2006/07 90% selling the benefits 84% 86% 88% 90% 92% 94% 96% In order to communicate the sustainability benefits of our homes properly, we provide customers with a selection of informative material through the marketing of our developments and during the sales process. Within many of our sales and marketing suites, sustainability information boards have been installed and this year we have created an information board for our customers specifically to communicate the benefits of Vision2020. A number of our sites have also developed informative sustainability brochures and we will soon be publishing a customer facing brochure on Vision2020. Providing reliable information upon which our home buyers are able to make their purchasing decision is a key part of our compliance with The Consumer Code for Home Builders. This Code sets good practice requirements that all home builders must meet and ensures that a home warranty is provided to all purchasers of newly built/converted homes.
sustainability brochures
For more information on our developments, please visit our website: www.berkeleygroup.co.uk
20 Berkeley Sustainability Report 2011 of ourcompletedcommercialspacewascertifiedtoBREEAM Very Good. our commercialspacesubmittedforplanningmettheserequirementsand45% Very Goodiffit-outistobeundertaken by thetenant.During2010/11100%of commercial spaceachieves BREEAM Very Good,oriscapableofachieving BREEAM applies toallthebuildingsonourdevelopments andwe aimtoensurethatall Our commitmenttosustainabilityandhighenvironmentalperformancestandards of commercialspace. spaces atourRoyal ClarenceMarinadevelopment. This year, we sold119,351sqft within theCentral PlazaatourKennetIslanddevelopment, andofficerestaurant mixed-use developments. For example we developed retailunitsandgymfacilities While we areprimarilyaresidentialdeveloper, we alsosellcommercialspaceonour commercial customers recycling andwastedisposalusefullinkstolocalcommunityfacilities. home, provides informationongreenliving,localpublictransport routes, sustainability whichexplains how tousethesustainabilityfeatureswithin how itshouldbeoperated andmaintained. These manualscontainasectionon with ahomemanualwhichexplains key informationaboutthepropertyincluding During 2010/11we sold2,544units. helping ourcustomerslive sustainably The Waterfront, Royal ClarenceMarina Uponhandover, allourcustomersareprovided
v in 2010/11wascertifiedtobreeam of ourcompletedcommercialspace 45% ery g ood Berkeley Sustainability Report2011 21 Berkeley Annual Report201121
THE CUSTOMER ExpERIENCE SUSTAINABILITY REPORT – THE CUSTOMER ExpERIENCE
CASE STUDy: WHAT OUR CUSTOMERS THINk ABOUT SUSTAINABILITy
One of our Vision2020 commitments is to “undertake market research on at least 25% of purchasers to understand how sustainability influences their home buying preferences”.
To fulfil this commitment we asked Inhouse Research and Training Ltd, an independent market research company, to conduct a telephone survey with all customers that purchased a Berkeley property between january and December 2010. 26% of our customers responded to the survey (221 in total). Of these, 24% were investors and 76% were private buyers. The results showed that our customers are environmentally conscious: 85% agreed that they are concerned about protecting the environment; 69% agreed that they put a lot of effort into living an environmentally friendly lifestyle. Kennet Island, Reading We asked our customers to identify what was important in terms of sustainability when purchasing their new home. Running costs and good transport links came out top, with the Code for Sustainable Homes rating, cycle storage and home office facilities less frequently considered important. 70% There is clearly scope for the industry and Government to increase awareness of the of customers agreed that Code for Sustainable Homes and for us to better market the sustainability of our homes. the berkeley group had built although 44% of our customers had not heard about the code for sustainable homes, a sustainable home with a low environmental impact 60% of customers felt that the sustainability features of their new home had been well marketed by berkeley. We used the survey to test the market for providing a sustainability options package when buying a home – one of our Vision2020 ambitions. an overwhelming majority 2% of customers (93%) said that if they were offered a choice of sustainable features 2% (e.g. solar panels, energy consumption display devices, energy efficient appliances) as an option, they would have been interested. 13% just under two thirds of our customers (64%) said they would be willing to pay a higher 13% price for a more sustainable home and interestingly, investors (74%) gave this response more frequently than private buyers (61%) suggesting they may see more value in sustainable homes. The results of this research have influenced our review and update of our Vision2020 commitments for 2011/12 and will play a key role in forming the future direction of our sustainability strategy. 85% 85% Features that customers agreed were important when buying their home
88% 88% Customers agreed agreed or orstrongly strongly agreed agreed 81% that they they are are concerned concerned about about protecting protecting the environment the environment Customers who were neutral about their 76% Customersconcern about who protecting were neutral the environment about their concern about protecting the environment Customers who disagreed or strongly 76% Customersdisagreed that who they disagreed are concerned or strongly about disagreedprotecting the that environment they are concerned about 74% protecting the environment 63% 47% 47% 44%
22 Berkeley Sustainability Report 20112011 Vision2020 commitments And ience er xp e ambitions moving forward
We have reviewed our commitments and ambitions made in May 2010 to ensure customer
they appropriately consider those issues which are material to our stakeholders. he Our revised commitments and ambitions are set out in the table below. T
Our Commitments from May 2011 our ambitions from may 2012
Customer satisfaction
Survey every customer to measure satisfaction and Survey every customer to measure satisfaction and target that over 95% continue to target that over 90% would recommend of customers would recommend us to a friend. us to a friend. Carry out post-occupancy monitoring of electricity, water Extend our programme of post-occupancy monitoring to cover the internal and gas/heat consumption on at least four completed living environment and the design of external space. developments in order to measure the success of our designs and to influence the design of future schemes.
Selling the benefits
Highlight the sustainability benefits of our developments Launch ‘Pledge for a better tomorrow’ – a partnership between Berkeley and our in sales and marketing materials and home manuals. customers to make it easier for residents to live a more sustainable lifestyle. Train all sales and marketing staff in sustainability Install Smart Meters in all new homes to help our customers understand their so that they are able to sell the benefits to customers. energy use. Communicate Vision 2020 to all customers. Ensure that all commercial space and student Provide tenant fit-out guidelines to commercial customers, enabling them accommodation achieves BREEAM Very Good or to optimise the environmental performance of the premises they purchase. is capable of achieving BREEAM Very Good if the fit-out is to be undertaken by the tenant.
Driving the market for sustainable homes
Undertake market research on at least 25% of purchasers On selected developments provide customers with a ‘sustainability options’ package to understand how sustainability influences their home which enables them to purchase additional sustainability features for their homes. Featuresbuying preferences. that customers agreed were important when buying their home
Berkeley Sustainability Report 2011 23 BUILDING GREENER HOMES
our vision for 2020 “ We will have completed our first zero carbon community and all our new developments will be low or zero carbon. Our proven track record of delivering high quality, well-designed, comfortable homes with low environmental impact will make them highly desirable to customers and will have expanded our market base. Homes built by Berkeley will be recognised throughout the industry as the very best examples of sustainable design and construction.”
24 Berkeley Sustainability Report 20112011 BUILDING GREENER HOMES – SUSTAINABILITY REPORT
A Code Level 3 home at Queen’s Acre, Beaconsfield. BerkeleyBerkeley Sustainability Report 2011 25 SUSTAINABILITY REPORT – BUILDING GREENER HOMES
Progress against Vision2020 commitments
This table provides a quick-glance summary of our Building Greener Homes OVERALL commitments and the progress we have progress Our Commitments from May 2010 2010/11 made against them during 2010/11. Achieving environmental performance standards The pages that follow describe our progress in more detail. To read our updated 2011/12 commitments All new homes to gain certification to Code Level 3. and our ambitions in this Vision2020 action area, please go to page 33 at the end of this section. Improving energy efficiency To see a full summary of progress against all of Achieve at least a 25% improvement in energy performance our Vision2020 commitments, go to page 55. compared to 2006 Building Regulations.
Adapting to climate change
Future climate change risks considered as part of development design and construction. 65% Improving water efficiency of homes completed during 2010/11 All new homes to achieve water use of 105 l/p/d. were certified using either the Code for Sustainable Homes or Providing green transport options EcoHomes methodology All sites situated within 1km of a public transport node. Provide cycle storage on all sites. Provide home office working facilities to all units. 92% Reducing waste of our completed development Recycling facilities are provided for every home. was on brownfield land in 2010/11 Enhancing ecology and maximising land use
Over 95% of development is on brownfield land. All sites employ an ecologist to provide advice and guidance on protecting ecology. 96% of our live sites during 2010/11 were within 500m of a transport node
Commitment not met in 2010/11 Further action required to meet commitment during 2011/12 Commitment on track for completion by May 2012
26 Berkeley Sustainability Report 2011 inform our ambition to certify all homes to Level 4 of the Codein movingfrom May from 2012. Level 3 to Level 4 of the Code for SustainableTechnical Homes. The Committee findings has will been looking at the technical and challengescost implications or aspects involved of operational concern and promote operationalBerkeley solutions. has formed Our a number of development committees to identify key business applications for 1,068 homes which committed to achieving Levelthat 4we of canthe applyCode. to all of our future schemes. In 2010/11 wechallenging, submitted planning these projects give us experience in deliveringAt homes Berkeley to this we higher are committedstandard to staying at the forefront of designingthe industry a number and whilst of projects to Level 4 of the Code due to Therelocal isplanning a growing requirements. push towards developing higher performing homes and we are already applications that we submitted. and a further 5,980 homes committed to achieve Level 3 throughSustainable the planning Homes led to the completion of 832 certified homes Ourduring industry-leading 2010/11 commitment to certify all homes to Level 3 of the Code for performance of our homes to our customers and other stakeholders.use environmental performance standards as a way of communicatingto makethe environmental sure our homes are designed and built with low environmentalWe use impactenvironmental . We performancealso standards, such as the Code for Sustainable Homes, A we believe these add value or meet the demands of our stakeholders. commits us to integrating additional measures to reduce impact where the environmental impact of the homes we build. Vision2020 therefore alone do not cover all of the measures that we could take to reduce However we know that environmental performance standards performance toourcustomersandotherstakeholders. impacts whilstgivingustheabilitytoclearlydemonstrate their such astheCodeforSustainableHomes,helpsminimisethese Designing homestomeetenvironmentalperformancestandards during theconstructionprocessbutalsothroughtheiroccupation. The homeswe buildhave anenvironmentalimpactnotonly R P Ou submitted for planning from May 2012. in advance of our Vision2020 ambition to apply this standard toopportunity homes on developmentsfor us to fully understand the costs and realities homesof achieving were completed Level and4 handed over. This project has mixed-useprovided andevelopment excellent in Shoreham-by-Sea. In July 2011, 48 Housing Association R o chie r first project to deliver homes to Level 4 of the Code is Ropetackle, a 226 unit p ROGRESS EVIEW et ac ving environmentalperformancestandards k le , S horeham - b y-S ea P 2009/10 2010/11 roportion of units built to environmental standards 30% C homes that achieve To date we have completed 1,640 od 39% 1% e for 6% Berkeley Sustainability Report 2011 S us tainable 19% 34% L ev H om el 3 of the Code Level 3 EcoHomes Excellent EcoHomes Very Good es
27 BUILDING GREENER HOMES SUSTAINABILITY REPORT – BUILDING GREENER HOMES
PROGRESS REVIEW (continued)
The average improvement in carbon Improving energy efficiency performance of our completed units over Part L1A 2006 Building Energy efficiency is fundamental in the delivery of sustainable homes and, given the Regulations was legislative environment and energy market in Britain, is set to become increasingly important. At Berkeley, we are committed to delivering energy-efficient homes and see this as a priority both in terms of lowering their environmental impact and saving 20% our customers money through reduced heating and electricity bills. To deliver energy-efficient homes we adopt a fabric-first approach that focuses on reducing heat losses through walls, floors, windows and the roof. There is generally a point at which it becomes uneconomical to enhance the building fabric any further and this is the point at which we introduce low carbon or renewable technology. On many developments, planning conditions also require us to provide a proportion of a development’s energy demand through low carbon or renewable technology. The combination of these factors mean that increasingly more and more of our homes have this technology installed. In 2010/11, 50% of our completed units incorporated low carbon or renewable technology and a further 62% of sites submitted for planning in the same period specify their inclusion. Across our sites a variety of technologies are in place from solar thermal panels at Forest Hill, Worcester Park and Knowle Village to air source heat pumps at Silvermill and Orchard Grove.
Compared to the average household in the UK, we have calculated that Renewable Technology our Code Level 3 homes could save Upon completion of Phase 1 of our our customers around landmark Kidbrooke Village development in Greenwich, each of the 80 houses will have nearly 5m2 of solar £380 thermal panels installed on their roofs. per year on their energy bills1 These have the potential to provide a 10-15% reduction in carbon emissions through the generation of hot water that can be used for heating. Furthermore, the apartments within the same phase of the development are linked to a district heating system which draws upon energy from central gas and biomass boilers to provide an efficient and renewable source of heating. The biomass boilers alone reduce the carbon emissions of each of the 368 flats by at least 15%.
Adapting to climate change We seek to minimise climate change risk on our homes through a thorough consideration of both adaptation and mitigation measures on all our developments. Flooding is currently the most pertinent climate change issue and is a key consideration that is reviewed during the land acquisition, planning and design process. It is becoming an issue of increasing importance in light of recent Government cuts to flood defence spending and the likely challenges that this will lead to in terms of flood insurance availability.
Designing To mitigate flood risk At our Blackheath Road development, flood risks highlighted through the Flood Risk Assessment process led to design alterations which ensure that no habitable space is provided at ground level and all residential dwellings sit above maximum flood levels. Safe escape routes have also been included in the development in accordance with DEFRA guidance. These efforts to adapt to climate change related flood risks improve the long-term resilience and value of the development.
28 Berkeley Sustainability Report 2011 water consumptionduringconstruction. and iscurrentlybeingusedintheconstructionsitewelfare accommodationtominimise to irrigatethesite’s landscaping,itwasinstalledearlyoninthedevelopment process rainwater harvesting system. Whilst theintentionisforharvested watertobeused meters forevery home,provided waterefficientappliancesandinstalledasite-wide At Grosvenor Waterside, amixed-use development inChelsea,we have installedwater RAINWATER HARVESTING AT 4 3 2 1 Transport wasresponsiblefor25%oftheUK’s carbonemissionsin2010 providing greentransport options reduction inmeteredwaterbillsofapproximately £168perhousehold,year day, far below theUKaverage of150litresperpersonday. This equatestoa of waterinthecode-certifiedhomes we buildiscurrently100litresperperson of ourcommitmenttotheCodeforSustainableHomes. The average consumption All ofourdevelopments includemeasurestoreducewaterconsumptionaspart are committedtodesigningourhomesuseless. we seetheminimisationofwateruseinournew homesasvery importantand become commonintheUKduetoincreasingdemandandhotter, driersummers, Given thewidelyacceptedpredictionthat,over time,watershortageswill improving waterefficiency CO commuting by rail, whichcouldreducetheiraverage commutingemissions by 411kg to atrain link,mayencourage aresidenttochangefromcommutingwork by carto the development. For example, ourRaynesParkdevelopment, whichislocatedclose to reducetheirtransport relatedcarbonemissionthroughthechoicesavailableon low-carbon modesoftransport toourresidents. This jointapproachenablesresidents for planningwere within1kmofapublictransport node.Secondlywe canprovide public transport nodes.During2010/11,100%ofthedevelopments whichwe submitted to reducetheseemissionsintwo ways.Firstlywe canlocatenew developments closeto
datatablespublications/nts/factsheets/commuting.xls annual commuterdistance of1,266milesperyear http://www.dft.gov.uk/pgr/statistics/ guidelines-ghg-conversion-factors.xls andtheDepartmentfor Transport 2009figure fortheaverage for transport, availablehttp://archive.defra.gov.uk/environment/business/reporting/pdf/101006- Average annualcommuting emissionsby vehicle typewere calculatedusingDEFRAemissionsfactors emissions-31032011.pdf http://www.decc.gov.uk/assets/decc/Statistics/climate_change/1515-statrelease-ghg- www.ofwat.gov.uk/consumerissues/chargesbills/household/prs_lft00910_waterseweragebills.pdf 100l/p/d. Assumingthatonaverage, alitreoftapwater, suppliedandtaken away,costs0.23phttp:// Based onanaverage householdof4peopleandareductioninwaterconsumptionfrom150l/p/dto Assuming theaverage householdintheUk Report 2008-9http://www.communities.gov.uk/documents/statistics/pdf/1479789.pdf ) 2008 SAp 2 -e peryear (seeFigureA). valueforalltenuresinthehousingstockpublishedEnglishHousingSurvey Headline GROSVENOR W isa3bedsemidetachedhomewithSA p ATERSIDE 204 82 3 . We canhelp rating of51(the
107
2
.
285
29
type (kgco a Figure A verage commutingemissionsby vehicle 204 Ferry Underground Rail Bus Motorbike Car 493 82 per household,year £168 metered waterbillsofapproximately per persondayequatestoasavingin a transport node for planningwere within1kmofapublic of thedevelopments whichwe submitted 100% During 2010/11, verage reductioninwateruseof50litres 2 - 107 e) 4 Berkeley Sustainability Report2011 29 285 29 2 493 Ferry Underground Rail Bus Motorbike Car
BUILDING GREENER HOMES SUSTAINABILITY REPORT – BUILDING GREENER HOMES
PROGRESS REVIEW (continued)
Providing green transport options
Proposed Crossrail at Royal Arsenal Riverside One example of our commitment to reduce transport related emissions is the planned construction of a Crossrail station at our Royal Arsenal Riverside development in Woolwich. This new train line, due to open in 2017, is expected to revolutionise travel between the East and West of London bringing improved quality of access across the city through new tunnels under London. With this new service, journeys from Woolwich to the Isle of Dogs will take around 8 minutes, while Heathrow will be just 50 minutes away. It is thought that this station will bring considerable social and economic benefits to the area, providing access to jobs and leisure activities.
Proposed Crossrail journeys 8 mins from Woolwich to the Isle of Dogs 50 mins from Woolwich to Heathrow
Creating Transport Opportunities on the River Thames The River Thames is a valuable resource that provides a more unusual and exciting opportunity for transportation. At our riverside residence of St George Wharf, a pier is currently being constructed that will provide inhabitants with access to an additional mode of transport and a new way to experience London. Construction is due to be officially opened in September. Additionally, at our Royal Arsenal Development, the Thames Clipper provides public river transport while at Grosvenor Waterside, the harbour provides residents with the opportunity to enjoy time on the river.
30 Berkeley Sustainability Report 2011 enhance local ecology and slow rainwater suchrun-off, as Woodberry providing Down, Griffin added Studios protection and Silkworks from incorporate A flooding.number ofbrown sites roofs incorporate that both large areas of parkland (see p32) while other developments have sought planning from May 2010 . and through Vision2020 we have committed to employ an ecologist59% of on our all live sites sites that in 2010/11 had some form of biodiversityof actionour developments plan in place for the benefit of both our residents andeconomic the wider and community. ecological value. We continuously seek to maximiseThe landthe ecologicalupon which valuewe develop is a precious resource and we are conscious of both its E purchase, with only one planning application made commitmentduring 2010/11 level. on greenfield This commitment land. continues to be2011/12 reflected but wein expectthe type development of land we on brownfieldhomes land on to four remain greenfield at or around sites. our These sites will tocontinue 92%, below to generate our commitment completions level. during This drop has2009/10, been caused100% of by our the homes completion completed of were194 on brownfieldensure thatland. over In 2010/11 95% of thisour developmentdropped is on brownfieldregeneration, land. we Between believe 2005/6 it is and appropriate to continueGiven the our environmental long-standing and commitment social value to of greenfield land in the UK and our M focus on urban included recycling facilities and 16% of our sites incorporatedhelp compostingour customers facilities. divert their waste from landfill. 85% of homesWe completedcan reduce in the 2010/11 long-term impact of our housing stock by designing in features to attribute this to the lack of ease in using recycling and compostingCurrently facilities. only 33% of UK household waste is recycled or compostedbut sendingand many waste to landfill also has a series of negative environmentalNot only is thereimpacts. a finite and fast reducing amount of landfill space remaining in the UK, R E butterfly feeders and insect boxes which offer local wildlifePlace a temporary sites, as home.well as a broad array of other initiatives insectincluding hotel bird at boxes,our Silvermill site, log piles at our Queens ToAcre and combat Stanmore this many of our developments have installedThe measures construction such as phase an of developments can often be particularlyOu disruptive. nhancing ecology educing waste aximising landuse nhancing r efforts to enhance ecology vary across sites and stages of development. E colog y on
our C ons truction S ites “ ec ec of we re is wh T form of biodiversity plan inof place live sites in 2010/11 had some 59% on brownfield land in 2010/11 of our developments have been 92% included recycling facilitiesof homes completed in 2010/11 85% he
a ological onomic source
bo
ich ar p
land Berkeley Sustainability Report 2011 re th e
we
co cious
it
u
de s nscious
an an p
on va velo d d
lue
p ”
31 BUILDING GREENER HOMES SUSTAINABILITY REPORT – BUILDING GREENER HOMES
CASE STUDY: AN ECOLOGICAL LEGACY
We take pride in creating beautiful places and spaces with lasting value. Protecting and enhancing ecology is one way in which we are able to do this. Here are just a few examples from around our current developments:
The Hamptons Here a 30 acre area of parkland provides a striking landscape which protects and enhances local wildlife and also functions as a recreational venue for residents The Hamptons, KT4 and the general public. Furthermore, the lakes within the park offer protection to the development from flooding, forming a key part of the sustainable urban drainage system.
Orchard Grove At this site we have created and maintained a series of “green wildlife corridors” that link the site to the wider countryside and provide a valuable route through the development for wildlife. These “corridors” include watercourses, hedgerows, tree belts and small areas planted with wetland meadow grass species. We have also planted additional fruit trees to enhance the existing orchard which is classed as protected under National Biodiversity Action Plans.
Edenbrook This represents one of our largest investments in ecology. Here we have transformed an 84 acre site in Hampshire into a beautiful country park that boasts a large selection of attractions to residents, locals and wildlife. The park encompasses a variety of green spaces including woodlands and hedgerows, grassland, meadowland, ponds and wetlands. These offer a home to animals including woodpeckers, pheasants, badgers, deer, and water voles. Dipping ponds, cycle paths and a green amphitheatre offer Edenbrook, Fleet a wealth of recreational opportunities. This natural asset has been enjoyed by many since its opening and is expected to grow in local and ecological value over time.
32 Berkeley AnnualSustainability Report Report2011 2011 Orchard Grove, Yarnton Our revised commitments and ambitions are set out in the table below. they appropriately consider those issues which are material to our stakeholders. We have reviewed our commitments and ambitions made in May 2010 to ensure am V and guidance on protecting ecology. Consult an ecologist on all developments to provide advice Complete over 95% of development on brownfield land. Enhancing ecology and maximising land use Provide recycling facilities for every home. Reducing waste Provide home office working facilities in all homes. Provide cycle storage on all developments. Locate all developments within 1km of a public transport node. Providing green transport options (a 30% reduction compared to average home water use). Design all new homes to achieve water use of 105 l/p/d Improving water efficiency and construction. Consider future climate change risks as part of development design Adapting to climate change energy performance compared to 2006 Building Regulations. Design all new homes to achieve at least a 25% improvement in Improving energy efficiency for Sustainable Homes. Design all new homes to achieve at least Level 3 of the Code A O chieving environmental performance standards ur ision C ommitments bitions 2020
from M
mo a y 2011 co ving mmitments
fo rward Install living roofs on all high-density schemes. Provide composting facilities on every development. Provide electric car charging points in all communal car parks. Implement rainwater harvesting on all high-density schemes. climate change risks. Put in place adaptation measures on all developments to address future from renewable or low carbon technologies. Ensure over 75% of completed homes are supplied with energy in energy performance compared to 2010 Building Regulations. Design all new homes to achieve at least a 25% improvement Sustainable Homes to be applied to refurbishment schemes. Develop (or adopt) a standard equivalent to Level 4 of the Code for Design all new homes to achieve Level 4 of the Code for Sustainable Homes. our
ambitions
an d
from
ma y 2012 Berkeley Sustainability Report 2011
33 BUILDING GREENER HOMES DELIVERING SUSTAINABLE COMMUNITIES
our vision for 2020 “ We will create high quality, sustainable places where people choose to live, work and spend their time. These will be places that directly encourage the well-being of residents and offer them a space and a base from which to lead safe and fulfilling lives. Our ability to transform sites into thriving communities will be considered the best in our industry. Through our ability both to engage and to deliver, Berkeley will be the developer of choice for local authorities and existing communities.”
34 Berkeley Sustainability Report 20112011 DELIVERING SUSTAINABLE COMMUNITIES – SUSTAINABILITY REPORT
Pocket Park at Riverlight, SW8 BerkeleyBerkeley Sustainability Report 2011 35 SUSTAINABILITY REPORT – DELIVERING SUSTAINABLE COMMUNITIES
Progress against Vision2020 commitments
This table provides a quick-glance summary of our Delivering Sustainable OVERALL Communities commitments and the progress Our Commitments from May 2010 2010/11 progress we have made against them during 2010/11. Well-designed homes and communities
The pages that follow describe our progress in more Achieve at least the Building for Life Silver Standard detail. To read our updated 2011/12 commitments on all new developments. and our ambitions in this Vision2020 action area, Use bespoke design on all developments to create please go to page 43 at the end of this section. high quality homes and places.
To see a full summary of progress against all of Creating safe, healthy and inclusive communities our Vision2020 commitments, go to page 55. Consult with a Crime Prevention Design Advisor (CPDA) or Police Architectural Liaison Officer (ALO) on all developments. Apply the Lifetime Homes principles on all new homes.
Engaging local communities
Apply our best practice community consultation guidelines on all planning applications over 500 units. 29% Employment opportunities and job creation of completed homes in 2010/11 All developments of 1,000 units or more will create an meet the Lifetime Homes Standard Employment Plan that includes targets for the proportion of local labour used, plans for long-term job creation and measurement of the success of the plan implementation.
Considerate Construction
All sites register with the Considerate Constructors Scheme and continue to achieve a minimum of 32 points.
Commitment not met in 2010/11 Further action required to meet commitment during 2011/12 Commitment on track for completion by May 2012
36 Berkeley Sustainability Report 2011 N R P sector-leading sustainability strategy and performance. Our consistent performance at the top of this benchmark is strong recognition of our result is testament to our unrivalled ability to deliver in this area. year. The 2010 benchmark placed particular focus on sustainable communities and the In N to delivering sustainable communities. The following pages chart our progress this year against our commitments relating a core part of what makes us different. home. Our ability to deliver this integrated approach to making a place sustainable is fabric of each community just as we invest in the environmental performance of each as well as the chance to live in a low carbon environment. Berkeley invests in the social building a place which offers people access to employment and a good quality of life, Our strategy puts equal emphasis on each dimension of sustainability. This means business of talking directly to residents and delivering what we promise. in the place and responsibility for its long-term success. We have a culture in our achieve this; their needs and ideas inform the design. Ultimately, they must take pride open space, retail and other facilities. We work very closely with the community to relationships and processes. Together these deliver the right mix of housing, transport, Each place we create emerges through the management of a complex series of each scheme,whetheritconsistsof10or4,000homes. housebuilders, we consistentlyusequalifiedarchitectstodesign design. We donothave standardproducts. Unlike mostmajor sustainable place. We develop aspecificsolution,usingbespoke Berkeley’s strategy forevery siteistocreate asuccessful, Countryside Properties ext e Barratt Developments 2010 we were ranked first in the NextGeneration benchmark for the fourth consecutive Fairview New Homes x ROGRESS Lovell Partnerships EVIEW McCarthy &Stone G t Keepmoat Group Gladedale Group Kier Residential Crest Nicholson G eneration Berkeley Group Galliard Homes Willmott Dixon Bloor Holdings Taylor Wimpey Stewart Milne Morris Homes Antler Homes enera Miller Homes Bovis Homes Galliford Try Lend Lease Persimmon Cala Group Bellway Redrow tion S us 0% 0% 0% 0% 0% 4% tainable B 8% 8% enchmar 13% 13% 15% C om 20% munities k: S 26% us 31% tainable B en chmark 2010 38% 38% 43% 43% C ommunities 51% 58% 59% 64% 69% 78% 85% “
www.nextgeneration-initiative.co.uk and our ranking is available online: Further information on this benchmark th fo be le re T y co ar to le on N p N P hilip ar ex his ea e t ading adershi nchmar tained
em urth x ea mmunities G going su H en ticularl t r irst, Berkeley Sustainability Report 2011 y eration G
.
stainabilit of fo W ear en
e co
r su S co
eration ec co ef
it
B th retariat p nsecutive k stainable s mmitment er forts mmend of fo eir y
” k in
th r el
th th y,
e e
an y
e e
37
d delivering SUSTAINABLE communities
SUSTAINABILITY REPORT – DELIVERING SUSTAINABLE COMMUNITIES pROGRESS REVIEW (CONTINUED)
Well-designed homes and communities
BUILDING FOR LIFE one development (stanmore place) We have demonstrated our ability to deliver well-designed homes and communities achieved the building for life gold through our Vision2020 commitment to achieve the Building for Life Silver Standard standard in 2010/11 on all new developments. Building for Life assesses developments against 20 criteria that cover four broad areas. These are detailed in the diagram below and explored in the context of our Stanmore Place development.
BUILDING FOR LIFE kEy CRITERIA
DESIGN AND CONSTRUCTION CHARACTER
• Well-designed public space • Design specific to the scheme with suitable management • Reflects existing buildings • Architectural quality and landscapes • Well-designed internal layouts • Has a distinct character • High quality, innovative • Navigation around the construction development is easily understood • Buildings outperform minimum standards • Clear layout of streets and buildings Four developments Queen mary’s place, parkwest, beaufort park and grosvenor Waterside achieved the building for life ENVIRONMENT AND COMMUNITy STREETS, pARkING AND silver standard in 2010/11 pEDESTRIANISATION
• p rovision of community facilities • Roads do not dominate • Accommodation mix reflects • Car parking well integrated needs of the local community so it does not dominate • Tenure mix reflects the needs • Streets are pedestrian, of the local community cycle and vehicle friendly • Development easy to access • Scheme integrates with existing by public transport paths and roads • Reduced environmental impact • p ublic realm is overlooked to give a sense of security
STANMORE pLACE This year Stanmore Place achieved a Gold Building for Life Standard. The assessors identified it as a well-designed, well-integrated development that has captured the opportunities available in and around the site. The development provides a mix of affordable and private housing to suit the local housing market and includes a range of community facilities including a children’s play area, a community hall with crèche facilities, and a number of retail and small business units. Connected well to public transport with bus and tube links within 250m, one-for-one bicycle parking is located adjacent to each apartment/building entrance while parking facilities are limited in the immediate vicinity of dwellings to discourage the use of cars for short journeys. These are just a few of the key elements encompassed in achieving a Building for Life Standard.
38 Berkeley Sustainability Report 2011 Examples that demonstrate how we do this include: and planners to ensure that our designs fit into their local settings. through appropriate interpretation of standards and liaison with local communities Ou B Well-designed homesandcommunities es physical disabilities. with learning and children and adults West London, including communities of all ages within the and access to people of provide improved facilities refurbishment that will undergone a major arches have recently riverside arches. The in two previously empty community boating club we have established a new Road development, As T r tailored approach allows us to create developments that meet local needs he p part of our o
Ka k e y D a esign k C lub K ew Bridge is enjoyed by many. historical asset that where it is a valuable nearby RAF museum glory, relocating it to the Watchtower to its former Grade II listed RAF the refurbishment of this we managed and funded our Beaufort Park site, public consultation at Fo T Pr gardens S residents and the public. for the enjoyment of these beautiful gardens been able to restore and as a result we have this during consultation community highlighted hospital. The local staff at the nearby additional parking for paved over to provide rose gardens had been the site’s much loved of Queen Mary’s Place, he un ior to our acquisition llowing extensive
k W en at
chtower rose
“
F W I AM DELIGHTED AN ON THE SITE.” DEVELO AN AND I ALSO LOO AND THEIR EDUCATION USED FOR CHILDREN RE THE BOROUGH’S THE COMMUNIT IT IS A CREDIT TO F The Watchtower at A Former nt ORWARD TO ORWARD TO IT BEING ITH T hony Finn, speaking about P Y D ENHANCES UT M F Berkeley Sustainability Report 2011 ay UTURE ATION. I LOO or of h P E B ME BUILDING – ar B ea net, ufort NTS C ou P ncillor K Y ar
k.
K
39 delivering SUSTAINABLE communities SUSTAINABILITY REPORT – DELIVERING SUSTAINABLE COMMUNITIES pROGRESS REVIEW (CONTINUED)
creating safe, healthy and inclusive communities This year, 29% of our completed homes were designed to meet the Lifetime Homes Standard. Through Vision2020 we have committed to apply the Lifetime Homes principles on all new developments with the ambition to achieve the Lifetime Homes Standard on all new homes from May 2012. parkwest Queen mary’s place st george Wharf– engaging local communities block a Our Land and Planning Committee has updated our Community Engagement Strategy royal arsenal riverside during the year to reflect Vision2020 and the objectives of the Coalition Government’s – phase 2 localism policies. The strategy provides guidance on pre-planning application engagement to help us to enter into a valuable dialogue with locals who are likely to be affected by our developments. Through measures such as community meetings and planning weekends, we believe this allows our projects to be better designed, to better contribute to local communities and to make a smooth transition through the planning process.
MOST CONSIDERATE SITE RUNNER UP COMMUNITy ENGAGEMENT AT FULHAM REACH Following the purchase of our Fulham Reach development in November 2010 grosvenor Waterside Dakota house we organised a community planning week which was widely publicised through local Trinity place media, letters and banners on site. This was followed by in-depth workshops with groups exploring different aspects of the development. The local primary school silkworks was also invited to take part with children contributing their ideas for the site. battersea reach – block s This process led to a number of changes to the project design to ensure that the Kidbrooke – phase 1 community is able to derive the maximum possible benefits from the development. beaufort park Forest hill central employment opportunities and job creation Our developments have an important role to play in contributing to economic growth and prosperity in the local community. At Blackheath Road, we expect around 120 full- and part-time jobs to be created through the development of new commercial space and a 90-bed hotel. We actively work to promote job opportunities at our developments both during construction and once occupied. This is an important mechanism through which berkeley group vs. considerate we add value. Additionally, many of our developments draw in new business to the area constructor scheme average scores and boost the wider employment opportunities. Further information on the type of employment opportunities created by Berkeley 40 is available in the case study on page 42.
considerate construction 35.5 35.3 35.5 34.5 CONSIDERATE CONSTRUCTORS SCHEME (CCS) 35 34.1 In order to minimise the impact of our construction sites on local communities, all of our construction sites are registered under the voluntary Considerate Constructors Scheme and we aim to achieve a minimum of 32 points in all CCS audits. Our average CCS score during 2010/11 was 35.5, exceeding the industry average score of 32.5 points for the Berkeley financial year 2010/11. 30 2008 2009 2010 2011 Our continued commitment to being a considerate constructor is regularly recognised. During 2010/11 we received a number of CCS Awards. Dakota House was runner up in the Most Considerate Site Award, Parkwest achieved a gold award and numerous other Berkeley Group average score sites achieved silver and bronze awards including Queen Mary’s Place, Forest Hill Central CCS UK all sector average and Silkworks.
Children from Greycoat Hospital School in Westminster taking part in a game 40 Berkeley Sustainability Report 2011 of Street Elite on one of the Berkeley Group’s central London developments. Olympians andp London atitslaunchevent atHorseGuardsp In addition, The Berkeley Foundation raised over £300,000fortheMayor’s Fundfor over thenext 12months: With thisgoalinmind, The Berkeley Foundation willsupportthefollowing charities as well asfundingprojectsandservicesthathave alreadyproved theirworth. work withorganisationsthatcanmodelnew waysofsupportingtheseyoung people, the successofplacesandcommunitiesinwhichBerkeley works. We intendto in thissituationnationwide. We seeadirectconnectionbetween theirfortunesand The latestGovernment figuresfromFebruary2011reveal over amillion young people education, employment ortraining. people inLondonandtheSouthEast,particularlythosenot CSR programme. Ourmainstrategic focusisonsupportingyoung a majorhousebuilderhassetupFoundation tospearheadits corporate socialresponsibilityactivities. This isthefirsttime designed tocapture,coordinateanddrive forwardtheGroup’s The Berkeley Foundation waslaunchedinMarch2011.Itis F T
OUNDATION HE BERk
aralympians atthe2012Olympicandp ELEy
arade. We arealsosupportingthree aralympic Games.
“
The b COMMUNITIES” FAMILIES p FOR y O LIVES TO EOp ppORTUNITIES erkeley Foundation’s o Berkeley Sustainability Report2011 41 IMp Berkeley Annual Report201141 LE, THEIR OUNG OF, AND ROVE AND bjective
THE
DELIVERING SUSTAINABLE COMMUNITIES
SUSTAINABILITY REPORT – DELIVERING SUSTAINABLE COMMUNITIES
CASE STUDY: AN EMPLOYMENT SUCCESS
As part of our ongoing effort to create employment opportunities, we partnered with the London Borough of Southwark to run the ‘Camberwell Grove Employment and Training Initiative’ (CGETI) at our South London development.
The programme was set out in a tiered structure to provide: • Careers advice • CSCS training qualification • Short training courses • Work placements • Full time employment
Teigan Augustus CGETI has been particularly successful in its ability to provide opportunities to a broad spectrum of individuals, from school leavers to the long-term unemployed.
Inspiring success story from this initiative Teigan Augustus is an inspiring success story from this initiative. He joined CGETI after attending the 2010 Imperial Wharf Jobs and Careers Fair to enquire whether he would be able to arrange work experience to supplement his degree in construction management at Westminster University. Following his exceptional performance during his work-experience, St George made an offer of undergraduate employment to Teigan, proposing he convert to part-time study and work as a Construction Trainee on our Imperial Wharf development. St George has also committed to sponsoring Teigan for the “My degree has taught remaining three years of his university course. me a lot but the CGETI “The key skill in construction management is being able to utilise theoretical knowledge in an applied working environment. has given me the My degree has taught me a lot but the CGETI has given me the chance chance to apply my to apply my knowledge on live construction sites. Experience of knowledge on live this calibre is invaluable and has helped kick start my career in the construction siteS” construction industry” Teigan Augustus
Following Teigan’s success, St George will be promoting further undergraduate training opportunities at the Imperial Wharf Jobs and Careers Fair 2011.
42 Berkeley Sustainability Report 20112011 mmunities Vision2020 commitments and co
ambitions moving forward USTAINABLE S
We have reviewed our commitments and ambitions made in May 2010 to ensure they appropriately consider those issues which are material to our stakeholders. Our revised commitments and ambitions are set out in the table below. delivering
Our Commitments from May 2011 our ambitions from may 2012
Well-designed homes and communities
Achieve at least the Building for Life Silver Standard Apply minimum design standards on all Berkeley homes including standards on all new developments. for sound insulation, space, storage and overheating. Use bespoke design on all developments to create high Publish annually an independently verified assessment of the design quality quality homes and places. of all new Berkeley developments.
Creating safe, healthy and inclusive communities
Consult with a Crime Prevention Design Advisor Design and build new developments that can be shown to enhance the well-being (CPDA) or Police Architectural Liaison Office (ALO) of residents. on all developments. Apply the Lifetime Homes principles in the design Ensure all homes meet the Lifetime Homes Standard. of all new homes.
Engaging local communities
Apply Berkeley’s Community Engagement Strategy Demonstrate the ability to involve every age group, including young people and on all planning applications over 500 units. working professionals, in debating and supporting plans for new development
Employment opportunities and job creation
Put in place an Employment Plan on all developments Put in place an Employment Plan on all developments incorporating targets for the of 1,000 units or more incorporating targets for the proportion of local labour used, plans for long-term job creation and measurement proportion of local labour used, plans for long-term of the success of the plan implementation. job creation and measurement of the success of the plan implementation.
Considerate Construction
Register all sites with the Considerate Constructors Register all sites with the Considerate Constructors Scheme and achieve Scheme and achieve a minimum of 32 points in a minimum of 34 points in all site audits. all site audits.
Berkeley Sustainability Report 2011 43 RUNNING A SUSTAINABLE BUSINESS
our vision for 2020 “ Sustainability will be fully integrated into our business strategy and operations. Our environmental impact will be as low as possible and our operational sites will be healthy and safe places to work. We will retain a highly skilled and passionate workforce and through The Berkeley Foundation we will have given help to many young people, their families and communities. We will maximise shareholder value over the long-term in a sustainable and safe way, for an acceptable level of risk.”
44 Berkeley Sustainability Report 20112011 RUNNING A SUSTAINABLE BUSINESS – SUSTAINABILITY REPORT
Dismantling the old warehouse for reuse at Marine Wharf, Lewisham. BerkeleyBerkeley Sustainability Report 2011 45 SUSTAINABILITY REPORT – RUNNING A SUSTAINABLE BUSINESS
Progress against Vision2020 commitments
This table provides a quick-glance summary of our Running a Sustainable OVERALL Business commitments and the progress progress Our Commitments from May 2010 2010/11 we have made against them during 2010/11. Improving operational environmental efficiency
The pages that follow describe our progress in more Reduce annual carbon dioxide emissions by 5% until April 2012. detail. To read our updated 2011/12 commitments Reduce annual water consumption by 5% until April 2012. and our ambitions in this Vision2020 action area, Reuse or recycle over 80% of construction, excavation and demolition waste. please go to page 53 at the end of this section. Managing and preventing pollution To see a full summary of progress against all of our Vision2020 commitments, go to page 55. Undertake internal environmental audits on all construction sites.
Valuing our employees
All employees to receive sustainability training. Total carbon emissions of Measure staff retention rates and benchmark performance.
16,262 Working with charities and local communities tonnes CO2-e Capture and quantify our work with charities and local communities and benchmark performance.
RIDDOR accident Driving sustainability through our supply chain incident rate of Communicate our sustainability aspirations and requirements to suppliers through our Sustainable Procurement Policy. 3.63 Sustainability requirements integrated into supplier contracts per 1,000 people and management rules. working on our sites Being a sector leader
Share our experiences with Government and the rest of the industry Accident frequency through representation at steering groups and other events. rate of Reducing workplace accidents
0.178 Continue to achieve a RIDDOR reportable Accident Frequency Rate which is below the (AFR) of less than 0.20. industry average. Continue to achieve a RIDDOR reportable Accident Incident Rate (AIR) of less than 4 incidents per 1,000 employees and sub-contractors.
Health & Safety training 0 All direct employees to receive Health & Safety training. Environmental and Health & Safety prosecutions Health and well-being
Undertake an internal review of our policy and arrangements regarding employees health and well-being with a view to establishing a programme.
Measuring performance
Undertake work to identify an external benchmarking programme (e.g. CHAPSI) to positively measure the Group’s Health & Safety performance. Undertake internal Health & Safety audits on all construction sites.
Commitment not met in 2010/11 Behavioural safety Further action required to meet commitment during 2011/12 Further enhance the Group’s ‘Good Work’ programme through active engagement with Contractors’ management and operatives. Commitment on track for completion by May 2012
46 Berkeley Sustainability Report 2011 of 71, higher than that of all other U completeness of their disclosures. In the 2010 CD by climate change. The Carbon Disclosure score assess companiesaction on tothe mitigate quality theirand impact, manage the risks and seize theDisclosure opportunities score. presented The Carbon Companies are scored using two metrics; a Carbon around the world. about our own processes and progress. The results are publishedtheir in carbon twenty emissions. countries We participate in the project by voluntarilyTh disclosing information T business operations. promoting best practice in our sector and embedding sustainabilityGroup throughwas recognised our entire in the Sustainable Development category performancefor strong leadership,or have a high level of continuous achievement.Th In April 2008 the Berkeley T for six years. FTSE4Good met the minimum criteria then they will be included. Berkeleyan has‘in-or been –out’ listed Index in rather than a ‘best in class’. companiesIf a company that can have demonstrate globally recognisedthat it has corporate responsibilityFT standards. This Index is FTSE4G building specifically. what is accepted as being good business practice generally, andprovide best practicerobust industry-wide in house frameworks for understanding sustainability,to the investment identifying community and other stakeholders. These measures,The Berkeley described Group below, uses four measures to communicate its sustainability performance A and Accounts. For further information on our financial performance, please refer to our Annual Report financial success is a key part of our sustainability success. seeks to optimise returns for shareholders. In the long-term, weLooking recognise ahead, that our ourstrategy reflects the cyclical nature of property development and bank has grown 13.1% with the acquisition of some 3,600 plots acquisitionacross 24 excellent strategy basedsites. on opportunity rather than volume.Our During strong this operating year our margin land is up to 18% and continues to mirror our highly selective land great locations in London and the South East. million to £742.6 million, and reflects our ability to deliver23.5% high toquality £136.2 homes million and isplaces driven in principally by a growth infor revenue both return of 20.7% on equity from £615.3and land bank growth. The increaseThis in ourhas pre-taxbeen a yearprofits during by which Berkeley has performed strongly, exceeding targets set Financial summary to R O T improve our CD ‘C’ indicated that our performance is comparable with our peers. We continue to try and he he he ur performance in the NextGeneration benchmark is highlighted on page 37. ssessing oursustainabilitysuccess e Carbon Disclosure e Queen’s Award recognises companies which have made outstanding advances in SE4Good is a FTSE Index designed to allow investors to identify and invest in e C Q N arbon e ueen p
x ood ou t G orting enera ’ s D A P isclosure ward r r anking by improving our transparency and management practices. tion
in P
for ro BE ject encourages organisations to measure, manage and reduce E vestors nchmar
P Pro nter er formance score recognises companies taking positive
j ect K p F rise k TSE350 homebuilders. Our ‘ : S us tainable P P B er erkeley achieved a ‘Disclosure score’ formance score and a Carbon D evelo P er p formance score’ of ment FTSE4Good on 2009/10 23.5% plots in the land bank 27,026 P rofit before tax up Berkeley Sustainability Report 2011 47 Berkeley Annual Report 2011
47 RUNNING A SUSTAINABLE BUSINESS SUSTAINABILITY REPORT – RUNNING A SUSTAINABLE BUSINESS
PROGRESS REVIEW
The success of our business is a cumulative measure of our financial, environmental and social performance and how well we are able to manage risks and comply with regulations.
The following pages chart our progress this year against our commitments relating to our business operations.
Improving operational environmental efficiency
Energy
Berkeley Group Normalised Scope 1 & 2 Carbon In 2010/11, our total carbon emissions were 16,262 tonnes CO2-e, of which our Scope 1 Emissions (tCO2-e normalised per operative on site) and 2 emissions were 9,964 tonnes CO2-e. This equates to 1.81 tCO2-e per operative on site, which is the normalisation metric we believe most accurately reflects our business 2.0 activity and therefore our relative energy consumption. Last year, we established a commitment to reduce our carbon emissions by 5% year-on- 0.11 year. We have assessed our Scope 1 and 2 emissions to establish our progress against 0.01 this target. We have chosen to exclude Scope 3 emissions in this assessment as we began 1.75 0.06 0.63 robustly collecting additional Scope 3 emission data in 2010/11 and did not collect this 0.47 in 2009/10. This ensures that we assess our progress on a like-for-like basis. See page 63 for a breakdown of our emissions data. Whilst we are pleased that we have reduced our normalised Scope 1 and 2 carbon
1.5 emissions by 3.94% compared to our performance in 2009/10, we have not met our challenging commitment for a 5% year-on-year reduction. We have identified a number of factors which will have contributed to this. In 2010/11 Berkeley increased the numbers of sites in production, the result of which is that many developments are now in the early phases of construction. These early phases are generally energy intensive but labour 1.25 0.18 efficient – for example demolition works and concrete frame construction. Therefore, using the number of operatives on site to normalise our carbon emissions may not give a 0.06 true reflection of our performance on site during these phases of construction. It is 1.09 1.08 anticipated that during the coming years, phases of construction will become more labour intensive and therefore normalising using the number of operatives on site will give a 1.0 better indication of year-on-year performance. As well as this, the UK experienced very poor weather during the winter months of 2010/11, which is likely to have had an impact on heating and lighting energy consumption across all our sites and offices. We recognise that it is good practice to take a proactive approach to reducing energy 0.75 consumption, particularly in light of our 2010/11 performance. We have therefore updated our Vision2020 commitments to include new action-based energy reduction commitments in 2011/12. You can read these new commitments on page 53.
0.5 Green transport initiatives Overall, our carbon emissions relating to car travel have reduced this year. Our Company Car Policy ensures that our company car emissions are reducing, with an average emission rate for our fleet cars of 152gCO2/km compared to 161gCO2/km in 2009/10. 0.25 Electricity Although transport emissions to and from our construction sites are outside the Natural Gas scope of our emission commitment, we realise the importance of their impact Diesel and have put initiatives in place to reduce these, in particular through the formation Petrol of construction stage transport plans. Other initiatives include the installation of cycle LPG 0.0 racks and encouraging subcontractors to car/van share. Some of our sites also measure the emissions associated with deliveries to and from sites. 2010/11 2009/10 Carbon Reduction Commitment For the first time this year, we are required to report our carbon emissions to the Government through the ‘Carbon Reduction Commitment Energy Efficiency Scheme’. The scheme requires us to purchase carbon allowances equivalent to the amount of carbon we produce from April 2011 onwards. We expect this will add approximately 10% to the cost of our energy and provides us with an added incentive to reduce our carbon emissions.
48 Berkeley Sustainability Report 2011 by theaverage numberofoperatives onsiteduringthe year, givingaresultof21.32m our commitment in this area. our commitmentinthisarea. excavation anddemolitionwaste,of whichwe recycled orreused82%,exceeding existing wastestreams. This year, we generated 788,243tonnesofconstruction, reducing wastesenttolandfill,reusingandrecycling asmuchpossiblewithinour During 2010/11oureffortstoreducewastehave moved awayfrompurelyfocusingupon £80 pertonneinApril2014(whereitwillstayuntilatleast2020). landfill taxwhichiscurrentlysetat£56pertonneforinertwasteandwillreach we sendtolandfillaredriven notonly by environmentalconcerns,butalso by therising Our effortstoreduceboththevolume ofwastewe generate andthevolume ofwaste WASTE consumption. Someexamples ofthisaretabledbelow. All oursitesandofficesarestrivingtoreducetheircarbonemissionswater how we canreducewaterconsumption. reviewing our high water consuming projects and offices over the next year to understand the sitetolimitspreadofdustlocalareas.Inordertoreverse thistrend,we willbe The demolitionprocess,inparticular, ishighlywaterintensive, requiringwatertodampen type ofactivitiestakingplaceacrossthebusinessaswe beginnew development phases. In part,thisisaconsequenceofnumbernew projectsstartingduringtheyear andthe not metourcommitmenttoreducewaterconsumptionby 5%year-on-year. of 4.4%inourwaterconsumptionagainst2009/10baselineandmeansthatwe have for continualimprovement. audits formpartofourSustainabilityManagementSystemandareseenasacatalyst scored andwhereappropriate,recommendationsforimprovement aremade. These of themesincludingwastemanagement,ecologyandpollutionprevention. Allsitesare and Health&Safetyteams. The auditdocumentincludes16sectionscovering a variety Environmental auditsareperformedatalloursitesby membersofoursustainability managing andpreventing pollution During 2010/11ourtotalwaterconsumptionwas117,488m WATER e per operative, comparedto20.38m nergy andwatersavinginitiatives initiatives Water efficiency initiatives efficiency Energy
Waterless urinals. Dual flushtoilets. Low flow showers. Infra-red taps. p Light zoningandupgrade. Timers onelectronicequipment. Smart meters. OFFICES urchase Greenelectricity. 3 peroperative in2009/10. This reflectsanincrease Water-butts forwashingboots. Retrofitting waterlessurinals. Rainwater usedfortrade purposes. Smart meters. Timers onelectronicequipment. Motion sensorlighting. CONSTRUCTION SITES 3 , whichwe have normalised
3
b b erkeley g erkeley g treatment facility Hazardous waste Landfill Landfill MRF Recycled Landfill 3 (Material Recovery Facility) 7% (Beneficial Use) (Hazardous) (Non-hazardous orinert) 100,000 120,000 20,000 40,000 60,000 80,000 (following onsitesegregation) roup c roup Total Water c 1 0 1% onstruction Waste Disposalr 2006/07 95,200 Berkeley Sustainability Report2011 49
2007/08 87,391 onsumption (m
16% 2008/09
16% 67,888 Deep well injected Compost Incineration Incineration Reuse 2009/10 74,481
2 2010/11 117,488 0% (without energyrecovery) (with energyrecovery)
3 ) outes
RUNNING A SUSTAINABLE BUSINESS
SUSTAINABILITY REPORT – RUNNING A SUSTAINABLE BUSINESS
PROGRESS REVIEW (continued)
Our staff turnover Valuing our employees rate was Our success as an organisation is a testament to the knowledge, skill and hard work of our employees. It is important to us to ensure that we maintain our high calibre 17% workforce and we therefore seek to achieve a high level of staff retention. This year during 2010/11 we measured our staff retention rate and our staff turnover rate for the first time. We believe that the success of Vision2020 is a responsibility shared by all our employees. It is therefore important that all our staff are provided with a strategic understanding of Vision2020 and its relevance to their role and to the company more broadly. This understanding is embedded through a variety of different training methods, tailored to suit different staff roles, including inductions, conferences, briefings and formal training days.
In 2010/11 we Working with charities and local communities contributed over We began capturing information on the contribution both our staff and the company is making to local charities and communities this year. We are proud to report that we have 600 contributed over 600 hours of staff time to local charities and communities and made hours to local charities numerous in-kind donations throughout 2010/11. Some examples of what we have done and communities are listed below: • 30 staff from St George and Berkeley completed the Property Week 10k run on behalf of Muscular Dystrophy. • 3 staff from St James completed the Green Park Triathlon for Sport Relief. • Given donations for prizes in a number of charity raffles and school fetes. • Repaired, refurbished and redecorated community buildings such as a children’s and religious centres, church halls and local schools. • Provided advice on planning applications for local community facilities. • Provided a training workshop for the Royal Engineers on site safety.
Driving sustainability through our supply chain We are continually improving the extent to which sustainability is driven through our supply chain. Given that the value of our supply chain is over £450 million, we see this as an area in which we can have considerable impacts and drive our sustainability objectives. Reflecting this, the Berkeley Group Management Rules which all contractors that work with us must sign up to, are currently being re-written and a code of practice on sustainability will be included to cover our sustainability requirements.
Berkeley Group Sustainable Procurement Policy Our Sustainable Procurement Policy states that: • For those goods sourced from developing countries, we expect suppliers to demonstrate that minimum supply chain labour standards have been met. • We give a preference to procuring materials and services which are ethically sourced. • We use the Ethical Trading Initiative (ETI) Base Code and the standards adopted by the UN through the Universal Declaration of Human Rights, and the ILO Conventions as the basis for this policy.
To view our Sustainable Procurement and Timber Policies please see our website. www.berkeleygroup.co.uk/ investor-information/sustainability/policies
50 Berkeley Sustainability Report 2011 they embrace it within their own businesses as much as we do within ours. The directors will be asked to disseminate the ethos of the initiative to ensure that present the Good Work initiative to around 400 directors in our contractor companies. In September 2011 we will be running six contractor conferences where we will • • • which include: During 2010/11 a number of enhancements to the programmes have been made, on our sites. managers and operatives as positive steps in improving safety and awareness Both Good Order and Good Work have been positively received by our contractors, the working environment and the behaviour of workers. Health & Safety standards on our sites by tackling the two key causes of accidents: Ou G B continue to These results demonstrate that we have improved on our 2009/10 performance and 6,579 at the end of April 2011 against 4,373 at the same point 2009/10. over 50% in the number of people employed across our operations, averaging at 0.009 lower than 2009/10, when it was 0.187. This is despite a significant rise of when it was 3.83. Our Accident Frequency Rate (AFR) for Year End is 0.178, which is Our Accident Incident Rate (AIR) at Year End is 3.63, which is 0.20 lower than 2009/10, to maintain our standards. the Group and this requires continued vigilance and hard work from our teams The 2010/11 period has seen production levels increase significantly across R It they are viewed in the context of a year in which our levels of production have doubled. were highly commended and a further 3 commended. Winner’ category for The Tower at our St George Wharf development. 4 other sites year. We also won an NHBC Health & Safety Award in the ‘Best Site Award – National and the NHBC. We received 14 Gold Awards and 1 Gold Medal Award from RoSPA this Our commitment to high Health & Safety standards has been recognised by both RoSPA in our following the investigation and ensure that any lessons that can be learnt are reflected acting of our sites this year, which unfortunately resulted in a fatality. Although we were
ood ehavioural safety is educing workplace accidents operatives of the ethos behind each programme with the Good Order and Good Work programmes P Di Up r Good Order and Good Work programmes are designed to help drive high ro with stributing new Good Work posters for use on site dating the suite of Good Work information cards for use on sites to advise ducing a new corporate induction video which familiarises site operatives
ow
O in
a rder re n Health & Safety management practices.
cl gret that we
ou ient tperform the industry. We are proud of
and
ca pacity at the time of the incident, we will G ood
mu st also report a serious incident W or k
th ese results, particularly
wh
co ich occurred on one nsider
th e conclusions
wh en 2010/11 1 RO – The Tower, B NHBC A 20 3.63 GOLD MEDAL es cc G SPA ol ident t Award S d
it H M
A e ealth & ed 3.83 I wa A nc 091 080 070 2006/07 2007/08 2008/09 2009/10 wa al rds 2011: 14
ident O 11 A rd – ne wa S , af S rd ( R N 3.90 t ety at at G S e per 1,000 employees eo ional Winner ( Berkeley Sustainability Report 2011 t A G rge Wharf wa G eo ol 3.80 rds 2011: rge Wharf) d A wa rds M 7.20 ul tistorey) 0 1 2 3 4 5 6 7
51 RUNNING A SUSTAINABLE BUSINESS SUSTAINABILITY REPORT – RUNNING A SUSTAINABLE BUSINESS
CASE STUDY: INTERVIEW WITH LORRAINE COOPER, SUSTAINABILITY MANAGER
Having joined the Berkeley Group in 2010, Lorraine Cooper is the Sustainability Manager for Berkeley, Berkeley First and St James. Here she reflects on her firstear y in the role.
What is an average day for you? Each day is different - one day I might be on site advising the build teams on how to manage sustainability issues effectively and another I might be attending a pre-start meeting, delivering training or meeting with management teams to discuss strategy and performance. My overall aim is to help deliver the Group’s strategy and ensure that we are reducing our environmental impact . Who is in your team and how do you manage sustainability across the business?
Lorraine Cooper We have a small central team focusing on leading and delivering the Group’s sustainability strategy which includes providing training to project teams and undertaking inspections to ensure sites are complying with our in-house sustainability management system. The success of our team is underpinned by a network of sustainability representatives across the business. Each business has a representative tasked with championing sustainability, all construction sites also have someone who is designated to manage sustainability issues, and there is a green champion at every permanent office. This structure is critical in ensuring that sustainability is embedded within our day-to-day operations and that we are all working together to achieve our goals. How do you engage staff and contractors in sustainability? “All employees receive All employees receive sustainability training so that they are aware of its importance, not only to the company but to the wider environment and community. Our contractors sustainability training are made aware of potential sustainability issues and our expectations during the tender process and this is then reinforced during pre-start meetings and on an individual so that they are aware level through the site induction process and toolbox talks. The site managers are the key of its importance, not link between the company and the subcontractors as they ensure that contractors are only to the company on board to help us manage environmental and social issues successfully. How is Berkeley monitoring and improving the but to the wider environmental impact of our construction sites? environment Each of our live sites is formally audited once a quarter to determine how it is and community ” performing in respect of the Sustainability Management System. The results are then distributed to our site and management teams. This helps to maintain a healthy level of competition between sites and divisions, driving continual improvements in performance. What do you think are the main opportunities for the coming year? Historically the main focus of our sustainability efforts has been on construction phase sustainability impacts, but I’d like to continue to work more with the technical and commercial teams so that we can improve the management of sustainability through the design and procurement stages.
52 Berkeley AnnualSustainability Report Report2011 2011 Our revised commitments and ambitions are set out in the table below. they appropriately consider those issues which are material to our stakeholders. We have reviewed our commitments and ambitions made in May 2010 to ensure am V with contractors’ management and operatives.Further enhance the Group’s ‘Good Work’ programme through active engagementBehavioural safety Undertake internal Health & Safety audits on all toconstruction positively sites. measure the Group’s Health &Undertake Safety performance. work to identify an external benchmarking programme (e.g. CHASMeasuring performance and well-being with a view to establishingUndertake a programme. an internal review of our policy and arrangements regardingHealth employees and well-being health Health & Safety training Continue to achieve a RIDDOR reportable Accident perFrequency 1,000 employeesRate (AFR) andof lesssub contractors.than 0.20. Continue to achieve a RIDDOR reportable Accident Incident Rate (AIR) ofReducing less workplace thanaccidents 4 incidents at steering groups and events. Share experiences with Government and the rest of the industry throughBeing arepresentation sector leader Integrate sustainability requirements into supplierour contractsSustainable and management rules. Communicate our sustainability aspirations and requirements to suppliersDriving throughsustainability through our supply chain Raise £300,000 for The Berkeley Foundation throughImplement employee a Give fundraising as and donations. Match employees’ donations and fundraising for CaptureThe Berkeley and quantify Foundation. our work with charities and local communities and Workingbenchmark with charities andperformance. local communities M P Valuing our employees Undertake environmental audits on all construction sites. Managing and preventing pollution construction sites and reduce the volume ofSet waste up asent material to landfill. exchange programme to facilitatethe lessonsthe sharing learnt of aroundexcess the materials business. between Undertake an energy and water use reduction programmeMeasure at threecarbon construction emissions sites associated and share with commercialimprovement, transport specifically movements including torecommendations andConduct from sites.a sustainabilityfor reducing energy review and at water all permanentuse. Reuseoffices or andrecycle provide over recommendations 80% of construction, for demolitionReduce andoperational excavation water waste. consumption by 5% annuallyReduce until operational April 2012. carbon dioxide emissions by 5% annually until April 2012. O I P mproving operational environmental efficiency rovide sustainability training to all employees. rovide Health & Safety training to all direct employees. ur easure staff retention rates and benchmark performance. ision C ommitments bitions P ro curement Y 2020 ou Earn Scheme.
from P ol icy. M
mo a y 2011 co ving mmitments
fo rward P I)
an Gain OHSAS 18001 certification for 20% of constructionat least operations. annually. Only use certified timber and timber based products. or stabilisation targets. P to the ‘Good Work’ programme. Set a performance target for our projects and contractors in respect P Make available a health and well-being programme to all employees. assessment and allocate training based on individualP need. Achieve a RIDDOR reportable Accident employeesFrequency and Ratesub-contractors. (AFR) of less thanAchieve 0.175. a reportable accident rate of less than 3.5 incidents per 1,000 we can demonstrate the value of our approachMeasure to stakeholders. the costs and benefits of sustainability initiatives so that with our Sustainable Carry out audits of at least 25% of our suppliers to ensure compliance Achieve the Business in the Community Mark. Have personal development plans in place for allany staff. issues raised. Undertake staff satisfaction surveys and develop action plans to address our ut ar ro d ticipate in an external benchmarking programme and report vide all direct employees with an individual Health & Safety training in place new sector-leading operational energy, water and waste reduction
ambitions
P
from ro curement
ma y 2012 P ol icy. Berkeley Sustainability Report 2011
53 RUNNING A SUSTAINABLE BUSINESS pERFORMANCE REpORT
54 Berkeley Sustainability Report 20112011 The Hamptons, Worcester Park Performance Report – SUSTAINABILITY REPORT
Vision2020 performance Our vision summary for the future
During 2010/11 we have made considerable progress towards Commitment not met in 2010/11 the achievement of our two-year commitments set in May 2010. Further action required to meet The table below provides a summary of our progress against commitment during 2011/12 our commitments. Commitment on track for completion by May 2012
PERFORMANCE COMMITMENTS FROM 2010 2010/11 COMMENTS ON PROGRESS
The customer experience
Survey every customer to measure satisfaction and The percentage of customers that would recommend us to a friend for the year to March 2011 continue to target that over 90% would recommend was 96.2%. us to a friend.
Communicate Vision2020 to all customers. Vision2020 is communicated to our customers through boards and brochures in our sales and marketing suites, a dedicated section on the Berkeley Group website and logos on hoarding and marketing materials. We will look to improve our communication in 2011/12.
Highlight the sustainability benefits of our developments We have produced a selection of marketing materials containing sustainability information and in all sales and marketing materials/handover packs. will work throughout 2011/12 to ensure that all sales outlets use these materials. Most home manuals now contain information on sustainability and we will be working to ensure all new home manuals produced in 2010/11 contain this information.
Train all sales and marketing staff in sustainability so that We have training in place for our sales and marketing staff and will ensure that by the end they are able to sell the benefits to customers. of 2011/12 all have been given this training.
Ensure that all commercial space achieves BREEAM Very 100% of our developments submitted for planning during 2010/11 containing commercial space Good or is capable of achieving BREEAM Very Good if the committed to BREEAM Very Good. One development will only be constructed to shell and core fit-out is to be undertaken by the tenant. and therefore fit-out will be undertaken by the tenant.
Undertake market research on at least 25% of The market research has been completed. 221 survey responses were received, representing purchasers to understand how sustainability influences 26% of purchasers that completed in the period 1 January 2010 to 31 December 2010. their home buying preferences. The results can be found on page 22.
Building greener homes
All new homes to gain certification to Code Level 3. Planning applications were submitted for a total of 8,151 homes during 2010/11. Four schemes did not commit to Code Level 3: - One scheme (755 homes) was an application to make relatively modest changes to an existing planning permission granted in July 2008. The original application committed to achieve EcoHomes Very Good and this position was retained on the amended scheme. - One scheme (5 homes) is adjacent to an existing site that is not developing homes to Code Level 3. The site is also contaminated. The costs of remediation in conjunction with the costs of achieving Code Level 3 would affect the economic viability of the scheme. We believe there would also be issues associated with marketing similar homes on the adjacent sites that have been built to differing standards. - One scheme (18 homes) was an application to optimise an existing planning permission for six private homes for which the application was submitted prior to 1 May 2010. The existing consent did not commit these homes to Code Level 3 and this position was retained on the optimised scheme. - One scheme (373 homes) was a reserved matters application pursuant to an outline application granted planning permission in 2006. The outline application did not commit to Code Level 3 and this position was retained on the optimised scheme. Of the schemes which committed to Code Level 3 or above, 1,068 homes across three schemes committed to Code Level 4.
Achieve at least a 25% improvement in energy All our homes submitted for planning during 2010/11 will meet this commitment performance compared to 2006 Building Regulations. (with the exceptions noted above) in order to gain Code Level 3 certification.
Berkeley Sustainability Report 2011 55 SUSTAINABILITY REPORT – Performance Report
PERFORMANCE COMMITMENTS FROM 2010 2010/11 COMMENTS ON PROGRESS
Building greener homes (cont.)
Future climate change risks considered as part 100% of our schemes submitted for planning during 2010/11 have, or will, consider climate of development design and construction. change risks as part of development design and construction. Measures include full flood risk assessments undertaken during the planning process and assessment of overheating risk as part of Building Regulations Part L 2010 compliance.
All new homes to achieve water use of 105 l/p/d. All our homes submitted for planning during 2010/11 will meet this commitment (with the exceptions noted on previous page) in order to gain Code Level 3 certification.
All sites situated within 1km of a public transport node. 100% of sites submitted for planning during 2010/11 are within 1km of a public transport node.
Provide cycle storage on all sites. 100% of our developments submitted for planning during 2010/11 will provide cycle storage facilities for residents.
Provide home office working facilities to all units. 100% of the homes submitted for planning during 2010/11 will provide home office working facilities.
Recycling facilities are provided for every home. 100% of the homes submitted for planning during 2010/11 will provide recycling facilities for every home.
Over 95% of development is on brownfield land. In 2010/11, 92% of our completed development was on brownfield land. This has dropped due to completions occurring in the year on four greenfield sites. One planning application was made during 2010/11 on a greenfield site.
All sites employ an ecologist to provide advice One scheme (5 homes) will not employ an ecologist. The site is covered in hard standing and guidance on protecting ecology. and will also not be designed to Code Level 3 for the reasons outlined above.
Delivering sustainable communities
Achieve at least the Building for Life Silver Standard All of our new developments submitted for planning during 2010/11 are expected to achieve on all new developments. the Building for Life Silver Standard.
Use bespoke design on all developments to create high Through our commitment to Building for Life, and inherent in the way we work, we use bespoke quality homes and places. designs when creating and constructing all our homes and communities.
Consult with a Crime Prevention Design Advisor (CDPA) All developments submitted for planning during 2010/11 have already consulted or Police Architectural Liaison Officer (ALO) on with a CDPA/ALO or will do so during detailed design. all developments.
Apply Lifetime Homes principles on all new homes. All homes submitted for planning during 2010/11 (excluding student, extra care and hotel accommodation) have committed to applying the Lifetime Homes principles in their design.
Apply our best practice community consultation 100% of our schemes over 500 units which submitted planning applications during 2010/11 guidelines on all planning applications over 500 units. consulted with the community using our best practice guidelines or demonstrated exemplary community consultation.
All developments of 1,000 units or more will create We have developed a draft Employment Plan and will be rolling this out on our largest an Employment Plan which includes targets for the developments in 2011/12. proportion of local labour used, plans for long-term job creation and measurement of the success of the plan implementation.
All sites register with the Considerate Constructors All sites have registered with CCS. The Group average score for 2010/11 is 35.5. Four sites Scheme and continue to achieve a minimum of 32 points. have not achieved a score above 32 during the year – two scored 31.5 and two scored 31.
56 Berkeley Sustainability Report 2011 pERFORMANCE REpORT – SUSTAINABILITY REPORT
PERFORMANCE COMMITMENTS FROM 2010 2010/11 COMMENTS ON PROGRESS
RUNNING A SUSTAINABLE BUSINESS
Reduce annual carbon dioxide emissions We collect data on all our direct carbon emissions and those relating to business travel. by 5% per year until 2012. This year we also began collecting data on subcontractors’ fuel consumption on our sites. We have measured our reduction in carbon emissions based on our Scope 1 and 2 emissions only and have normalised our consumption by the average number of operatives on site each year. On this basis, we decreased our 2010/11 carbon emissions by 3.94% compared to 2009/10.
Reduce annual water consumption We have normalised our water consumption by the average number of operatives on site. On this by 5% per year until 2012. basis, our water consumption increased by 4.4% in 2010/11, against our 2009/10 baseline.
Reuse or recycle over 80% of construction, excavation We reused or recycled 82% of our construction, excavation and demolition waste during and demolition waste. 2010/11. See pages 64–65 for a breakdown of our waste data.
All employees receive sustainability training. All our staff have access to sustainability training, either via our sustainability training programmes or via individual briefing sessions, both of which are tailored to specific roles. The training courses range from a 2-hour briefing about Vision2020 to Directors to a 1-day training course on environmental management for construction staff.
Undertake internal environmental audits on all Environmental audits are conducted at all sites by members of our sustainability and Health construction sites. & Safety teams at least 3 times per year. This currently includes sites where we are not the principal Contractor.
Measure staff retention rates and benchmark Retention rates are measured on a quarterly basis and have been benchmarked against published performance. housebuilder/developer peers where they make this publicly available.
Capture and quantify our work with charities and local This year we began collecting information on both our financial and in-kind contributions to local communities and benchmark performance. charities and communities. We will assess our performance in this area year-on-year. Information on our 2010/11 performance can be found on page 50.
Communicate our sustainability aspirations and Our Sustainable procurement policy is distributed to our suppliers with all tender documents requirements to suppliers through our Sustainable and contracts. procurement policy.
Sustainability requirements integrated into supplier The Berkeley Group Management Rules are under review and a Code of practice covering contracts and management rules. sustainability has been drafted. These will be launched in 2011/12. All our suppliers who are on our central call-off database will be contracted under these management rules.
Share our experiences with Government and the rest During 2010/11, we have participated in the London plan Examination in public through of the industry through representation at steering the Consortium of London Developers. groups and events. We also participated in and supported the UkGBC Task Group on Legal Frameworks for Sustainable Community Infrastructure. In addition, we have engaged with national and local government directly on a number of issues including the impact that building regulations and local planning policies are having on building design and the comfort of homes.
Continue to achieve a RIDDOR reportable Accident Our AFR rate in 2010/11 was 0.178 which is below the industry average. Frequency Rate (AFR) of less than 0.20.
Continue to achieve a RIDDOR reportable Accident Our AIR rate in 2010/11 was 3.63 which is below the industry average. Incident Rate (AIR) of less than 4 incidents per 1,000 employees and sub-contractors.
All direct employees to receive Health Following the annual training review, we have updated our current training programme with the & Safety training. introduction of further specialist courses. We have also reviewed our current training matrix, which outlines all the courses we currently run and establishes a timeline by which an employee must have attended the given course.
Undertake an internal review of our policy and A sub-working group has been established to take this commitment forward. In May 2011 the arrangements regarding employees health and well-being sub-working group drafted a ‘health and well-being’ strategy, and during june/july they began with a view to establishing a programme. drafting a programme of possible arrangements. It is intended that a proposed programme will be forwarded to the Group’s Health & Safety Working Group in Q3 2011/12.
Undertake work to identify an external benchmarking Research into an external benchmarking programme is currently being undertaken to establish programme (e.g. CHApSI) to positively measure the an appropriate comparative benchmark to measure our performance against. It is envisaged that Group’s Health & Safety performance. proposals will be put forward to the Group’s Health & Safety Working Group in Q3 2011/12.
Undertake internal Health & Safety audits on all During Q2 2010/11 three dedicated Health & Safety Auditors were employed . Their purpose is construction sites. to undertake unannounced monitoring visits at each project to provide an independent overview of Health & Safety performance. All sites were visited monthly during Q4 2010/11.
Further enhance the Group’s ‘Good Work’ programme In September 2011 we will be running six Contractor Conferences where we will present through active engagement with Contractors’ the Good Work initiative to around 400 directors in our subcontractor companies. management and operatives.
Berkeley Sustainability Report 2011 57 SUSTAINABILITY REPORT – Performance Report
KEY PERFORMANCE INDICATORS
THE CUSTOMER EXPERIENCE
Indicator Report 2007 2008 2009 2010 2011 Type Reference
Customer Satisfaction
KPI Average customer satisfaction 90% 89% 91% 93% 96% GRI PR5 PAGE 20
Percentage of customers who would recommend Berkeley to a friend as assessed through customers’ surveys undertaken by Inhouse Research and Training Ltd, an independent external agency.
Percentage of completed commercial space certified to BREEAM Very Good ND ND ND ND 45.2% PI PAGE 21
A total of 7,067m2 of commercial space was completed during the year. 3,193m2 of commercial space was certified to BREEAM Very Good. 2,569m2 was only completed to fit-out stage and was therefore not certified.
BUILDING GREENER HOMES
Indicator Report 2007 2008 2009 2010 2011 Type Reference
Environmental Performance Standards
Percentage of completed dwellings certified using an environmental performance methodology.
2010/11 64.6% 2009/10 63.6% 2008/09 37.4% 2007/08 48.4% 2006/07 43.2%
Percentage of completed dwellings certified using the EcoHomes methodology. 43.2% 48.4% 37.4% 45.7% 30.9% PAGE 27 Percentage of completed dwellings certified using the Code for Sustainable Homes methodology. ND ND ND 18.0% 33.7% PI
Percentage of completed dwellings certified using an environmental performance methodology. 43.2% 48.4% 37.4% 63.6% 64.6% KPI
This covers all homes completed in the year – a total of 2,544
Energy performance of homes
Average improvement in energy performance compared to 2006 Building Regulations. ND ND ND ND 20% PAGE 28
This figure covers all homes completed in the year.
Land use
Percentage of completed dwellings on brownfield land. 100% 100% 100% 100% 92% PI PAGE 31
This figure covers all homes completed in the year.
58 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Indicator Report 2007 2008 2009 2010 2011 Type Reference
Transport
Percentage of sites where 80% of the development is located within 500m of a transport node
96.2% 94.3% 94.8%
91.8% 90.7%
2007 2008 2009 2010 2011
Percentage of sites where 80% of the development is located within 500m of a transport node. 91.8% 94.3% 94.8% 90.7% 96.2% PAGE 29
This covers all sites under construction in 2010/11.
Delivering sustainable communities
Indicator Report 2007 2008 2009 2010 2011 Type Reference
Lifetime homes
Percentage of completed dwellings designed to the Lifetime Homes Standard. ND ND ND ND 29% KPI PAGE 40
717 homes completed in the year were designed to the Lifetime Homes Standard. This represented 29% of completed homes during 2010/11.
Considerate construction
Considerate Constructors Scheme scores
35.3 35.5 34.1 34.5 35.3 35.5 34.1 34.5 Berkeley Group average score BerkeleyCCS UKGroup all sector average average score CCS UK all sector average
2008 2009 2010 2011 2008 2009 2010 2011
Percentage of sites registered under the Considerate Constructors Scheme (CCS). 98% 100% 100% 99% 100% PI PAGE 40
Average score in the Considerate Constructors Scheme. ND 34.1(1) 34.5(2) 35.3(3) 35.5(4) PI PAGE 40
This covers all sites and is out of a maximum of 40 points. (1) The UK average CCS score across registered sites in 2007/08 was 30 (May 2008). (2) The UK average CCS score across registered sites in 2008/09 was 31.5 (May 2009). (3) The UK average CCS score across registered sites in 2009/10 was 32.23 (May 2010). (4) The UK average CCS score across registered sites in 2010/11 was 32.47 (May 2011). Four projects fell below our target of 32, however the Group average remained above the benchmark and above the UK average.
Berkeley Sustainability Report 2011 59 SUSTAINABILITY REPORT – Performance Report
Running a sustainable business
Indicator Report 2007 2008 2009 2010 2011 Type Reference
Financial performance
Revenue (£ million) . 918.4 991.5 702.2 615.3 742.6
Revenue from residential sales (£ million). 867.9 960.1 671.7 595.7 721.4
Revenue from commercial sales (£ million). 50.5 31.4 30.5 19.6 21.2
Capital employed (£ million). 700.6 685.9 516.5 545.4 891.7 PAGE 47 KPI 81.0 -4.5 284.8 316.9 274.9 Total net (debt) or cash (£ million). GRI EC1 Annual Report and Accounts Shareholders Equity / Net Assets (£ million). 781.8 681.4 801.3 862.3 933.8
Return on Equity. 23.2% 26.6% 16.2% 13.3% 15.3%
Units sold . 2,852 3,167 1,501 2,201 2,544
Number of sites on which commercial space sold. 14.0 11.0 6.0 19.0 9.0
All results are published in accordance with IFRS.
Fines and legal actionS
Number of health, safety and environmental prosecutions. 0 0 0 0 0 KPI
Monetary value of significant fines relating to noncompliance with environmental laws and regulations. 0 0 0 0 0 GRI EN28
Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices and their outcomes. ND ND ND 0 0 GRI SO7
Monetary value of significant fines relating to noncompliance with laws and regulations. ND ND ND 0 0 GRI SO8
This covers all of our operations. No fines or legal actions have been incurred across any of our operations.
Charitable and Community Contributions
Charitable Giving (£’000). 172.0 268.0 128.0 238.6 574.0
This result is published in accordance with IFRS.
Total Money Donated to Charitable Causes and the Community (£’000). ND ND ND ND 0.8 PAGE 50 Total Time Donated to Charitable Causes and the Community (hours). ND ND ND ND 613
The total amount contributed by Berkeley and its staff to charitable and worthy causes includes money which was raised by The Berkeley Foundation during the year. Information on the time donated to charitable causes and the community was collected by each division during the year.
60 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Indicator Report 2007 2008 2009 2010 2011 Type Reference
EMployees
Number of employees . 865 996 836 748 935
This covers all activities and is presented as an average figure for the year.
Percentage of direct employees who are female. 36% 36% 34% 32% 32% GRI LA13
This covers all activities and is presented as an average figure for the year.
Total number and rate of employee turnover - Under 30 ND ND ND ND 5% (51)
Total number and rate of employee turnover - 30 to 50 ND ND ND ND 8% (84)
Total number and rate of GRI LA2 PAGE 50 employee turnover - 50+ ND ND ND ND 4% (39)
Total number and rate of employee turnover - Males. ND ND ND ND 10% (102)
Total number and rate of employee turnover - Females. ND ND ND ND 7% (72)
All employees are based in the South East of England, so are deemed to be within one region. The number in brackets indicates the number of staff leaving employment. The percentage indicates the rate of turnover, based on a total of 1,053 permanent staff in employment as of April 2011.
Number of training days per direct employee. 0.96 0.46 1.7 0.29 0.79
This covers all activities.
Percentage of site operatives holding a CSCS card. ND ND ND ND 99.0% GRI LA10
This covers all activities, direct employees and sub-contractors on site.
Health & Safety
RIDDOR AIR per 1,000 employees KPI (Client and principal contractor sites). 7.20 3.80 3.90 3.83 3.63 GRI LA7 PAGE 51
This covers all activities, direct employees and sub-contractors on site.
RIDDOR AIR per 1,000 employees
2011 3.63 2010 3.83 2009 37.4%3.90 2008 3.80 2007 7.20
RIDDOR AFR (Client and principal contractor sites). ND ND ND ND 0.178 PI PAGE 51
This covers all activities and covers sub-contractors on site by calculating the number of RIDDOR injuries per 100,000 hours worked.
Berkeley Sustainability Report 2011 61 SUSTAINABILITY REPORT – pERFORMANCE REpORT
RUNNING A SUSTAINABLE BUSINESS
INdICATOR REPORT 2007 2008 2009 2010 2011 TyPE REFERENCE
CLIMATE CHANGE
Scope 1 Greenhouse Gas emissions by weight (tCO2-e) ND ND ND 2,913 3,999
Scope 2 Greenhouse Gas emissions by weight (tCO2-e) ND ND ND 3,968 5,965 PAGE 48 Scope 3 Greenhouse Gas emissions by weight (tCO2-e) ND ND ND 1,159 6,298
Total direct and indirect Greenhouse KPI Gas emissions by weight (tCO2-e) 10,870 8,927 8,165 8,040 16,262 GRI EN16, EN17
This figure is used in our submission to the Carbon Disclosure project (Total Scope 1, 2 and 3 emissions). Data for May 2009 to April 2011 has been recalculated using DEFRA conversion factors 2010. Data for May 2007 to April 2009 used 2009 DEFRA conversion factors as reported in the 2010 Sustainability Report. Scope 1 emissions include those fuels directly consumed - natural gas, directly purchased diesel, petrol, LpG and other fuels, diesel and petrol relating to business travel. Scope 2 emissions relate to the electricity directly consumed. Scope 3 emissions relate to those fuels indirectly consumed - air travel, sub-contractors’ diesel, petrol, LpG and other fuels and indirect emissions relating to the extraction and transportation of primary fuels. Detail on data coverage and assumptions is provided against the key performance indicators for direct and indirect energy consumption below.
The inclusion of CO2 equivalents, in addition to CO2, covers the impact (global warming potential) from methane and nitrous oxides only. Remaining gases (HFC-134a, HFC-143a and Sulphur hexafluoride (SF6) are believed to be relatively insignificant for reporting on emissions arising from our activities.
The following 2010 conversion factors have been used (kWh to kg CO2 or CO2-e):
CO2 Nitrous Oxide Methane Scope 3 Indirect Emissions
GHG emissions from Natural gas 0.20515 0.00012 0.00030 0.01996
GHG emissions from Diesel 0.26607 0.00294 0.00015 0.05105
GHG emissions from petrol 0.25227 0.00171 0.00051 0.04504
GHG emissions from LpG 0.22999 0.00018 0.00010 0.0288
GHG from purchased Grid Electricity 0.54160 0.00337 0.00024 0.07185
All conversion factors taken from: DEFRA, 2010, http://archive.defra.gov.uk/environment/business/reporting/pdf/101006-guidelines-ghg-conversion-factors.xls
Total direct and indirect Greenhouse Gas emissions by weight broken down by source (kg CO2-e) 10,870,081 8,927,221 8,165,469 8,039,665 16,261,849 broKen DoWn by Type:
Electricity (brown) usage total 7,671,126 5,796,186 4,744,445 3,967,730 5,846,937
Electricity (green) usage total ND ND ND ND 117,708
Gas usage total 65,955 60,035 168,399 211,061 1,010,311
Diesel usage total - direct - - 510,189 2,287,239 2,602,193
Diesel usage total - indirect - - - - 3,851,692 petrol usage total - direct - - 349 412,887 344,902 petrol usage total - indirect - - - - 5,183
LpG usage total - direct - - - 1,412 41,951
LpG usage total - indirect - - - - 24,179
Gas Oil usage total - indirect - - - - 1,353
Fugitive emissions from fuel use - indirect - - - 1,050,423 2,178,659
Fuel usage (air travel) - - - 108,914 236,781
Fuel usage (business travel) 3,133,000 3,071,000 2,742,086 - -
62 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Indicator Report 2007 2008 2009 2010 2011 Type Reference
Climate change (cont.)
Total direct and indirect Greenhouse Gas emissions by weight broken down by source (Kg CO2-e) Running a sustainable business 2010/11 Electricity (brown) LPG - direct Electricity (green LPG - indirect 2009/10 Gas Gas Oil - indirect Diesel - direct Fugitive emissions from fuel - indirect 2008/09 Diesel - indirect Fuel usage (air travel) Petrol - direct Fuel usage (business travel) 2007/08 Petrol - indirect
2006/07
0 5,000,000 10,000,000 15,000,000
Figures for fuel and electricity usage have been drawn from data gathered for submissions against GRI KPIs EN3 and EN4. Please refer to collection methodologies for these indicators for notes.
Electricity emissions from 2006/07 to 2008/09 have been restated in 2010/11 to include tCO2 equivalent. Electricity data from 2009/10 has been restated where reporting errors have been identified and corrected during the course of 2010/11. Emissions arising from business travel have been calculated for all fleet cars owned by the Berkeley Group, and privately owned vehicles owned by recipients of a car allowance. Emissions from air travel have been calculated using DEFRA’s 2010 guidelines to GHG conversion factors. The distance travelled on each flight is multiplied by the appropriate emissions factor (Domestic = 0.20515 kg_CO2-e per km; Short-haul = 0.11600; Long-Haul = 0.13535) and an uplift factor of 1.09. Indirect emissions, methane and nitrous oxide CO2 equivalent factors were also included in the emissions factor identified above. The 2009/10 figures have been restated in line with the 2010 DEFRA guidelines. A total of 235 domestic, short- and long-haul flights were taken in 2010/11 compared to 103 in 2009/10.
The following figures were used to calculate emissions from business travel:
CAR FLEET ALLOWANCE YEAR CARS RECIPIENTS Average CO2 2006/7 250 300 177g/km 20,000miles - average distance travelled per year 2007/8 250 300 170g/km 20,000miles - average distance travelled per year 2008/9 205 280 167g/km 20,000miles - average distance travelled per year 2009/10 205 329 154g/km – Diesel Fleet Cars In 2010, rather than using a previously estimated figure, data was collected on the distance travelled by car fleet users 180g/km – Petrol Fleet Cars and those who received a car allowance to improve the reporting of car emission data. This resulted in an average distance travelled by car fleet users of 19,969 miles and by car allowance recipients of 5,079 miles.
In 2010, we were also able to identify average CO2 emissions associated with different fuel types. In 2010, approximately 76% of the car fleet and car allowance recipients drive a diesel car, with the remaining 24% driving petrol cars.
The total kg CO2 for petrol and diesel cars was calculated by multiplying the km travelled for each car by the gCO2/km for that car. Where the gCO2/km data was not provided, an average of 152gCO2/km was used. Data on fuel type for car 149g/km – Diesel Fleet Cars allowance vehicles was not provided, so the percentage of emissions attributable to petrol and diesel vehicles was 2010/11 190 421 established by using the average ratio established in one division of the Berkeley Group and applying this to the whole 162g/km – Petrol Fleet Cars Group - 46% of the cars were diesel and 54% were petrol. The percentage of emissions attributable to petrol and diesel vehicles for fleet cars was provided - 73% were diesel and 27% were petrol. Data for 16 fleet cars was not provided and was therefore excluded from this assessment. Travel distance for 24 company cars was not available and was therefore excluded from this calculation.
Operational Energy use
Total Direct energy consumption (GJ) 1,163 1,059 9,871 40,150 58,031 GRI EN3
Broken down by type:
Natural gas (GJ) 1,163 1,059 2,969 3,696 17,692 GRI EN3
Diesel (GJ) ND ND 6,897 30,592 34,804
Petrol (GJ) ND ND 5 5,841 4,879
LPG (GJ) ND ND ND 22 656
Other fuel (GJ) ND ND ND - -
Data has been gathered from meter readings and billing information and delivery tickets in relation to fuels delivered to sites. Gas data has been collated from total gas usage where in use across offices and sites. Gas was used on sites which accounted for 297 completed units in 2007 and 95 units in 2008. In 2008 gas was used on 3 sites accounting for 446 completed units. Data accuracy was much improved in 2009, which explains the increase in gas use. In 2010, gas data was provided for 4 sites and 4 offices. In 2011, gas data was provided for 5 sites and 8 offices. In 2010/11, gas data was missing for 21% (22/103) of months of reported data. Due to the relatively small data set, assumptions were not used to complete this missing data. Due to improved data collection methodologies in 2009, we have been able to measure other fuel use on site. Diesel was used on 18 sites in 2009 and petrol was used on one site. In 2010, diesel was used on 39 sites and LPG was used on one site. In 2011, diesel was used on 63 sites, but only 57 sites directly consumed the fuel. LPG was used on 18 sites but only 12 sites directly consumed this fuel. This information is not available prior to 2009. Data was collected in m3, ft3, litres or kg of fuel converted to kWh. This is then converted to GJ using the GRI conversion factor 0.0036. In 2010 and 2011 petrol and diesel used for business travel was incorporated into this calculation. We acknowledge that the figures for 2007 to 2009 represent an underestimation of our total direct energy consumption as they do not include petrol and diesel usage from business travel.
Berkeley Sustainability Report 2011 63 SUSTAINABILITY REPORT – Performance Report
Running a sustainable business
Indicator Report 2007 2008 2009 2010 2011 Type Reference
Operational Energy use (cont.)
Total Indirect energy consumption - purchased electricity (GJ) 50,748(1) 38,344(2) 31,387(3) 26,198(4) 39,384(5) GRI EN4
Broken down by source: (6)
Non renewable energy type
Combustible fuels 41,966 31,709 24,482 20,435 31,507
Nuclear 6,635 5,013 5,022 4,192 5,120
Renewable energy type
Hydro 1,304 986 628 524 788
Energy from Waste/Biomass - - 942 786 788
Geo/win/solar/thermal 843 637 314 262 1,182
1 The data for 2007 has been calculated using actual energy data of 100% of the offices owned and/or occupied by the Berkeley Group and its divisions, and 73% of the construction output (as measured by completed units) of the operations of the Group. Where data was not available, an average energy consumption/unit completed has been used to calculate a total energy consumption for all construction output. 2 The data for 2008 has been calculated using actual energy data of 100% of the offices owned and/or occupied by the Berkeley Group and its divisions, and 94% of the construction output (as measured by completed units) of the operations of the Group. Where data was not available, an average energy consumption/unit completed has been used to calculate a total energy consumption for all construction output. 3 The data for 2009 has been calculated using energy data for 100% of offices owned and/or occupied by the Berkeley Group and its divisions and 98% of construction sites (in previous years, this was measured as a % of construction output). Where data was not available, the average monthly energy consumption for the site was calculated to provide the missing data. We felt this to be a more accurate portrayal of our impacts, and which we are now able to provide due to improved data availability. 4 The data for 2010 has been calculated using energy data covering 100% of offices owned and/or occupied by the Berkeley Group and its divisions and 100% of construction sites. Data includes all corporate offices, 9 sales and marketing suites (18 offices in total) and 59 sites which were in operation in 2010. Where data was not available, the average monthly energy consumption for the site was calculated to provide the missing data. 5 The data for 2011 has been calculated using energy data covering 100% of offices owned and/or occupied by the Berkeley Group and its divisions and 100% of construction sites. Data includes all corporate offices and 21 sales and marketing suites (32 office in total) and 96 sites which were in operation in 2011. Where data was not available, the average monthly consumption for the site was calculated to estimate the missing data. In 2010/11, 1.03% of electricity data was based on estimates. 6 In 2009 and 2010, the breakdown of purchased electricity by source was calculated using figures from the International Energy Agency UK Electricity Statistics (2007). This assumes a mix of: Combustible fuel – 78% Nuclear – 16% Hydro – 2% Geo/wind/solar/thermal – 1% Energy from Waste/Biomass - 3% Source: http://www.iea.org/stats/electricitydata.asp?COUNTRY_CODE=GB In 2011, the breakdown of purchased electricity by source was calculated using figures from the International Energy Agency KU Electricity Statistics (2008). This assumes a mix of: Co mbustible fuel – 80% Nuclear – 13% Hydro – 2% Geo/wind/solar/thermal – 2% Energy from Waste/Biomass - 3% Source: http://www.iea.org/stats/electricitydata.asp?COUNTRY_CODE=GB possible energy losses through grid and efficiency losses, and variations in source due to tariff structure were not taken in to account. Data was collected through a combination of meter readings, utility bills and accounting downloads. construction waste
Total waste produced (tonnes) ND 34,486(1) 41,574(2) 40,241(3) 788,243(4) GRI EN22
Broken down by disposal method
Composting - - - 110 12
Reuse (5) - - - 145 295,273
Recycling - 5,879 3,806 4,762 124,502
Recovery (5) - - - - -
Incineration (or use as fuel) - - - - -
Landfill (beneficial use) ND ND ND ND 87,999
Landfill (non-hazardous or inert) - 1,692 341 405 125,049
64 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Indicator Report 2007 2008 2009 2010 2011 Type Reference construction waste (cont.)
On-site storage - - - - -
Hazardous waste treatment facility - 182 102 3,698 1,356
Sent to Materials Recovery Facility (MRF) - 26,733 37,326 31,120 154,052
1 This has been calculated using actual waste, as captured by the Group Waste Data Tools, with a coverage of 72% of the construction output (as measured by completed units) of the operations of the Group. Where data was not available, average waste per unit completed has been used to calculate total waste produced for all construction output. 2 This has been calculated using actual waste, as captured by the Group Waste Data Tools, with a coverage of 95% of the construction output (as measured by completed units) of the operations of the Group. 3 This has been calculated using actual waste, as captured by the Group Waste Data Tools. Construction waste data was received from all construction sites in operation across the Group. 4 This has been calculated using actual waste, as captured by the Group Waste Data Tools. Construction, demolition and excavation waste data was received from all construction sites in operation across the Group, including those where the Group is not the Principal Contractor. Where there are errors or incomplete data in the waste collection tools, that particular row of data has been omitted from waste analysis. Waste sent to landfill (beneficial use) has been included as a disposal route in 2011. Data for this disposal method was not recorded previously. 5 P rior to 2010, waste directly reused or recovered has been reported in recycling figures. In 2010 and 2011, waste directly recovered has been reported in the recycling figures but that which was reused on-site or off-site was reported separately. From 2008 to 2010, data was gathered in cubic metres and converted to tonnes using the UK HMRC conversion factor for construction waste (1:0.6). In 2011, data was gathered in cubic metres and converted to tonnes using conversion factors supplied by the Environment Agency and UK HMRC based on the LOW of the particular waste stream. So urces: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent&propertyType=document&id=HMCE_ CL_000509#P309_31822 http://publications.environment-agency.gov.uk/pdf/GEWA0308BNRR-e-e.pdf?lang=_e
Percentage of waste reused or recycled ND ND ND ND 82% PI PAGE 49
This has been calculated by assessing the total percentage of waste which was: reused on site, reused off site, recycled directly, recycled via a material recovery facility (MRF), composted or incinerated. A recycling figure of 91% was used to determine the amount of waste which was recycled when it had been sent to an MRF.
Operational Water use
Total water withdrawal by source PI m3/year (EN8) 95,200(1) 87,391(2) 67,888(3) 74,481(4) 117,488(5) GRI EN8 PAGE 49
Sites ND ND ND ND 109,612
Offices ND ND ND ND 7,876
Municipal supplies 95,200 87,391 67,888 74,481 117,488
Other sources 0 0 0 0 -
1 The data for 2007 has been calculated using actual water data of 100% of the offices owned and/or occupied by the Berkeley Group and its Divisions, and 47% of the construction output (as measured by completed units) of the operations of the Group. Where data was not available, an average water consumption/unit completed has been used to calculate a total water consumption for all construction output. 2 The data for 2008 has been calculated using actual water data of 100% of the offices owned and/or occupied by the Berkeley Group and its Divisions, and 71% of the construction output (as measured by completed units) of the operations of the Group. Where data was not available, an average water consumption/unit completed has been used to calculate a total water consumption for all construction output. 3 The data for 2009 has been calculated using actual water data for 100% of the offices owned and/or occupied by the Berkeley Group and its Divisions and 77% of the construction output (as measured by completed units) of the operations of the Group. All Sales and Marketing suites have been excluded as these are often run off a landlord supply. Where data was not available for certain months, an average water consumption for each individual site has been used. We believe that this treatment of missing data has been made possible by improved data collection methodologies and offers a more accurate portrayal of our water usage. 4 The data for 2010 has been calculated using actual water data for 100% of offices owned and/or occupied by the Berkeley Group and its divisions, 100% of construction sites in operation (in previous years, this was measured as a % of construction output) and from 6 Sales and Marketing suites within the Group. Where data was not available for certain months, an average water consumption for each individual site or office has been used. 5 The data for 2011 has been calculated using actual water data for 89% (8/9) of offices owned and/or occupied by the Berkeley Group and its divisions, 100% of construction sites in operation (67) and from 76% of the sales and marketing suites within the Group. Where no data was provided for a site or office, no assumptions were made to complete the data set. Where data was not available for some months, a monthly average water consumption for the site or office has been used to complete the data set. In 2010/11, 4% of water consumption was based on estimates. 100% of water each year was drawn from municipal supplies. Data was collected through a combination of meter readings and utility bills.
Pollution
Total number of significant spills ND ND ND ND 5 GRI EN23 Total volume of significant spills (litres) ND ND ND ND 1,075
This covers all construction activities. A significant spill is classified as a spill of over 5 litres which requires the use of a site spill kit and is reported to the sustainability or Health & Safety team. None of these spills resulted in a pollution incident.
Berkeley Sustainability Report 2011 65 SUSTAINABILITY REPORT – pERFORMANCE REpORT
GRI COMpLIANCE
The Global Reporting Initiative (GRI) is the leading voluntary THIS REpORT sustainability reporting standard. Over 2,000 companies around HAS BEEN the world use the standard annually to guide their sustainability SELF-CERTIFIED reporting and this year we have benchmarked our sustainability TO GRI LEvEL B report against the G3 edition of the GRI guidelines. The GRI Framework sets out principles and indicators for measuring and reporting economic, environmental and social performance in a balanced and transparent manner.
Our report has been self-certified to Level B. The following pages provide a summary of our compliance with the GRI:G3 guidelines.
application of the gri ‘guidance on defining report content’ and ‘Defining report quality’ and the associated principles
MATERIALITy We recently updated our materiality review to help us understand our key sustainability risks and opportunities both now and looking ahead. This process played an instrumental role in determining the content of this report. The update included a review of: our key stakeholders and their perspectives on our Vision2020 strategy, our sustainability policies, leading benchmark criteria and all the key policy updates that occurred during 2010/11.
STAkEHOLDERS Our stakeholders are key to the success of our business and we pay particular attention to understanding perspectives through a number of feedback mechanisms. This feedback proved particularly important and informing in our materiality review detailed above. The full array of stakeholders to whom we deem ourselves accountable are found on our website. While this report is available to all interested parties, it is specifically aimed at our investors, business partners, employees and National and Local Government. Targeted media and communications will continue to be provided as appropriate throughout the year. Full information on the ways in which we communicate with our key stakeholders is available online.
SUSTAINABILITy CONTExT AND COMpARABILITy The success of our sustainability efforts is dependent upon our understanding of the broader context of sustainable development. This report details our key sustainability impacts in light of the wider sustainability context and seeks to understand organisational challenges, including risks and opportunities, informing future strategy. The historical performance data which forms the foundation of this report now spans five years, allowing readers to reflect on and understand our progress over time. This data enables us to participate in benchmarks, and these provide a key vehicle through which we and our stakeholders are able to better understand our performance in comparison with that of our peers, (see p55 for further details on our performance). In addition, our voluntary compliance with the GRI guidelines, allows our performance to be further compared. The precautionary approach is addressed by Berkeley through the use of a financial and environmental risk and opportunity assessment process, our materiality review and our evolving Vision2020 strategy. Our Sustainability Management Systems also ensure that the development process and our office operations take sufficient account of sustainability.
66 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
We are conscious that this report should not just detail our successes, but also incorporate any less-favourable aspects of our performance during 2010/11. Through presenting a realistic picture of our sustainability progress we are able to reflect upon the lessons we learnt during the reporting year and communicate properly with our stakeholders the reasons for our performance trends and any factors that influenced these. The extent of our historical data is particularly useful in this regard.
Reliability, Accuracy and Clarity Validation of the majority of the data within this report is performed by our sustainability consultants, Jones Lang LaSalle. Please see the Advisor’s Statement from Jones Lang LaSalle for their assessment of the reliability and accuracy of the data. For information on the data assumptions and calculations, please refer to our data qualifying notes within the performance section of this report. This report provides an avenue through which we can communicate our sustainability progress to our key stakeholders and is available both in hard-copy and online to allow it to reach a broad audience with differing accessibility needs. The content is designed to be easily navigable to the reader and avoids complex technical jargon and over- excessive detail.
Timelines The information and performance data presented in this report was collected during the Berkeley financial year May 2010 – April 2011. The sustainability reporting schedule is aligned with our financial reporting schedule.
Royal Clarence Marina, Hampshire. BerkeleyBerkeley Sustainability Report 2011 67 SUSTAINABILITY REPORT – Performance Report
GRI COMPLIANCE (continued)
Profile disclosure
Profile Cross-reference/ Disclosure Description Reported Direct answer
1 Strategy and analysis
1.1 Statement from the most senior decision-maker of the organisation. 2011 Sustainability Report, P6, Managing Director’s Statement.
1.2 Description of key impacts, risks, and opportunities. 2011 Sustainability Report, P12, The Customer Experience: Risks and Opportunities. 2011 Sustainability Report, P13, Building Greener Homes: Risks and Opportunities. 2011 Sustainability Report, P12, Delivering Sustainable Communities: Risks and Opportunities. 2011 Sustainability Report, P13, Running a Sustainable Business: Risks and Opportunities. Annual Report and Accounts. Website. 2 Organisational profile
2.1 Name of the organisation. The Berkeley Group.
2.2 Primary brands, products, and/or services. 2011 Sustainability Report, P1, Who we are and what we do.
2.3 Operational structure of the organisation, including main divisions, 2011 Sustainability Report, P1, Who we are and what we do. operating companies, subsidiaries, and joint ventures. Annual Report and Accounts.
2.4 Location of organisation's headquarters. The Berkeley Group Holdings plc, Berkeley House, 19 Portsmouth Road, Cobham, Surrey, KT11 1JG
2.5 Number of countries where the organisation operates, and names The Berkeley Group operates only in England. of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. Annual Report and Accounts.
2.7 Markets served (including geographical breakdown, sectors served, 2011 Sustainability Report, P1, Who we are and what we do. and types of customers/beneficiaries). Annual Report and Accounts. 2.8 Scale of the reporting organisation. 2011 Sustainability Report, P1, Who we are and what we do.
2.9 Significant changes during the reporting period regarding size, Annual Report and Accounts. structure, or ownership.
2.10 Awards received in the reporting period. 2011 Sustainability Report, P4, Our strategy and achievements. 2011 Sustainability Report, P47, 51, Running a sustainable business. 2011 Sustainability Report, P37, 38, 40, Delivering sustainable communities. 3 Report parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided. This report covers the period from May 2010 to April 2011, unless otherwise stated.
3.2 Date of most recent previous report (if any). The previous Sustainability Report was published in July 2010 (covering the period May 2009 to April 2010).
3.3 Reporting cycle (annual, biennial, etc.) Published annually in July, to cover the financial year May to April.
3.4 Contact point for questions regarding the report or its contents. 2011 Sustainability Report, P2, About this report. [email protected]
3.5 Process for defining report content. 2011 Sustainability Report, P2, About this report. 2011 Sustainability Report, P 15, Reviewing Vision2020 and defining our report content Website: Stakeholders. 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, 2011 Sustainability Report, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol P2, About this report. for further guidance.
3.7 State any specific limitations on the scope or boundary of the report 2011 Sustainability Report, (see completeness principle for explanation of scope). P2, About this report.
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, 2011 Sustainability Report, outsourced operations, and other entities that can significantly affect P2, About this report. comparability from period to period and/or between organisations.
3.9 Data measurement techniques and the bases of calculations, including 2011 Sustainability Report: Performance Report, assumptions and techniques underlying estimations applied to the P58-65, Key performance indicators. compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.
68 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Profile Cross-reference/ Disclosure Description Reported Direct answer
3 Report parameters (cont.)
3.10 Explanation of the effect of any re-statements of information provided 2011 Sustainability Report: in earlier reports, and the reasons for such re-statement (e.g.,mergers/ P58-65, Key performance indicators. acquisitions, change of base years/periods, nature of business, measurement methods).
3.11 Significant changes from previous reporting periods in the 2011 Sustainability Report: Performance Report, scope, boundary, or measurement methods applied in the report. P58-65, Key performance indicators.
3.12 Table identifying the location of the Standard Disclosures in the report. 2011 Sustainability Report, P68, Performance report.
3.13 Policy and current practice with regard to seeking external assurance We do not currently have full external assurance for our sustainability for the report. reporting but our Advisor’s Statement can be found on P74 of our 2011 Sustainability Report. 4 Governance, commitments, and engagement
4.1 Governance structure of the organisation, including committees 2011 Sustainability Report, P14 Our Vision2020 Governance Structure. under the highest governance body responsible for specific tasks, Annual Report and Accounts such as setting strategy or organisational oversight.
4.2 Indicate whether the Chair of the highest governance body is also Annual Report and Accounts. an executive officer.
4.3 For organisations that have a unitary board structure, state the number Annual Report and Accounts. of members of the highest governance body that are independent and/ or non-executive members.
4.4 Mechanisms for shareholders and employees to provide Annual Report and Accounts. recommendations or direction to the highest governance body.
4.5 Linkage between compensation for members of the highest Annual Report and Accounts describes the relationship between compensation governance body, senior managers, and executives (including for the Board and organisational performance. departure arrangements), and the organisation's performance There is currently no formal process to remunerate the Board or senior (including social and environmental performance). management on the basis of social and environmental performance alone.
4.6 Processes in place for the highest governance body to ensure conflicts Annual Report and Accounts. of interest are avoided.
4.7 Process for determining the qualifications and expertise of the When Board Members are appointed their expertise is taken into account members of the highest governance body for guiding the organisation's on a case-by-case basis. strategy on economic, environmental, and social topics.
4.8 Internally developed statements of mission or values, codes of conduct, Vision2020 sets out our key sustainability objectives related to our and principles relevant to economic, environmental, and social environmental, social and economic performance. The strategy is fully embedded performance and the status of their implementation. within the organisation. Our Vision is support by a number of policies which can be viewed on our website.
4.9 Procedures of the highest governance body for overseeing the 2011 Sustainability Report, P14, Our Vision2020 Governance Structure. organisation's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.
4.10 Processes for evaluating the highest governance body's own Judged by achievement of external awards (NextGeneration, FTSE4Good) performance, particularly with respect to economic, environmental, and performance against publicly stated commitments which form part of and social performance. our Vision2020 strategy. 2011 Sustainability Report, P14, Performance Report.
4.11 Explanation of whether and how the precautionary approach The precautionary approach has informed and is reflected in our Vision2020 or principle is addressed by the organisation. strategy, specifically when setting our objectives and commitments. The precautionary approach is also applied at a project level in respect of an assessment of each project against our sustainability commitments to ensure that they are met and no project provides a risk to the Group.
4.12 Externally developed economic, environmental, and social charters, 2011 Sustainability Report, principles, or other initiatives to which the organisation subscribes P47, Running a sustainable business. or endorses.
4.13 Memberships in associations (such as industry associations) and/or Website national/international advocacy organisations in which the organisation: 2011 Sustainability Report, P57. * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.
4.14 List of stakeholder groups engaged by the organisation. Website
4.15 Basis for identification and selection of stakeholders with whom Website to engage.
4.16 Approaches to stakeholder engagement, including frequency Website of engagement by type and by stakeholder group.
4.17 Key topics and concerns that have been raised through stakeholder 2011 Sustainability Report, engagement, and how the organisation has responded to those key P15, Reviewing Vision2020 and defining our reporting content. topics and concerns, including through its reporting.
Fully achieved partially achieved Berkeley Sustainability Report 2011 69 SUSTAINABILITY REPORT – Performance Report
GRI performance indicators
Profile Cross-reference/ Disclosure Description Reported Direct answer
Economic
Disclosure on Management Approach including reference to: Annual Report and Accounts. economic performance, market presence and indirect Managing Director’s Statement. economic impacts. 2011 Sustainability Report, P12, How we manage risks and opportunities through Vision2020 2011 Sustainability Report, P47, Reporting to our investors. Sustainability Report 2011, P10 Vision2020. Website. Sustainability Policies.
Economic performance
EC1 Direct economic value generated and distributed, including revenues, Annual Report and Accounts. operating costs, employee compensation, donations and other 2011 Sustainability Report, P60, Key performance indicators. community investments, retained earnings, and payments to capital providers and governments.
EC2 Financial implications and other risks and opportunities for the 2011 Sustainability Report, P9. organisation's activities due to climate change. 2011 Sustainability Report, P48, Running a sustainable business. 2011 Sustainability Report, P27-28, Building Greener Homes. 2011 Sustainability Report, P12-13, Risks and Opportunities. Carbon Disclosure Project Submission 2010, available online:
Market presence
EC6 Policy, practices, and proportion of spending on locally-based suppliers 2011 Sustainability Report, P50, Running a Sustainable Business. at significant locations of operation. Website – Sustainable Procurement Policy. Indirect economic impacts
EC8 Development and impact of infrastructure investments and services 2011 Sustainability Report, P38-40, Delivering Sustainable Communities. provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
EC9 Understanding and describing significant indirect economic impacts, 2011 Sustainability Report, P37-42, Delivering Sustainable Communities. including the extent of impacts. 2011 Sustainability Report, P50, Running a Sustainable Business. 2011 Sustainability Report, P15, Reviewing Vision2020 and defining our reporting content. Website: Stakeholder Engagement.
Environmental
Disclosure on Management Approach including reference to: 2011 Sustainability Report, P10, Vision2020. materials, energy, water, biodiversity, emissions, effluents and waste, Sustainability Report, Running a Sustainable Business P49-50, 52. products and services, compliance, transport and overall impacts. 2011 Sustainability Report, P27, Building Greener Homes. Website, Environmental Policy.
Energy
EN3 Direct energy consumption by primary energy source. 2011 Sustainability Report, P63, Key performance indicators.
EN4 Indirect energy consumption by primary source. 2011 Sustainability Report, P64, Key performance indicators.
EN6 Initiatives to provide energy-efficient or renewable energy based 2011 Sustainability Report, P27-28, Building Greener Homes. products and services, and reductions in energy requirements as a result of these initiatives.
EN7 Initiatives to reduce indirect energy consumption 2011 Sustainability Report, P48-49, Running a Sustainable Business and reductions achieved. 2011 Sustainability Report, Performance Report, P63, Key performance indicators.
70 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Profile Cross-reference/ Disclosure Description Reported Direct answer
Environmental (cont.) water
EN8 Total water withdrawal by source. 2011 Sustainability Report, P65, Key performance indicators.
Biodiversity
EN12 Description of significant impacts of activities, products, and services 2011 Sustainability Report, P31, Building Greener Homes on biodiversity in protected areas and areas of high biodiversity value (land use target, ecological plans, habitat conversion) outside protected areas. 2011 Sustainability Report, P49, Running a Sustainable Business (pollution prevention)
EN14 Strategies, current actions, and future plans for managing impacts 2011 Sustainability Report, P31, Building Greener Homes. on biodiversity. (ecological plans target, Code Commitment, land use target) 2011 Sustainability Report, P49, Running a Sustainable Business. (assess management of project ecological specific risks) Website: Environmental Policy
Emissions, effluents and waste
EN16 Total direct and indirect greenhouse gas emissions by weight. 2011 Sustainability Report, P62, Key performance indicators.
EN17 Other relevant indirect greenhouse gas emissions by weight. 2011 Sustainability Report, P62, Key performance indicators.
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 2011 Sustainability Report, P48, Running a Sustainable Business.
EN22 Total weight of waste by type and disposal method. 2011 Sustainability Report, P64, Key performance indicators.
EN23 Total number and volume of significant spills. 2011 Sustainability Report, P65, Key performance indicators. Products and services
EN26 Initiatives to mitigate environmental impacts of products and services, 2011 Sustainability Report, P24, Building Greener Homes. and extent of impact mitigation.
Compliance
EN28 Monetary value of significant fines and total number of non-monetary 2011 Sustainability Report, P60, Key performance indicators. sanctions for non-compliance with environmental laws and regulations.
Transport
EN29 Significant environmental impacts of transporting products and other 2011 Sustainability Report, P48, Running a Sustainable Business. goods and materials used for the organisation's operations, and transporting members of the workforce.
Social: Labour practices and decent work
Disclosure on Management Approach including reference to: 2011 Sustainability Report, P50-51, Running a Sustainable Business, employment, labour/management relations, occupational (employee well-being, H&S, training, procurement) Health & Safety, training and education and diversity and 2011 Sustainability Report, P42, 46, Delivering Sustainable Communities, (employment) equal opportunities. Website, Employee Policy Website: Organisational Responsibility
Employment
LA2 Total number and rate of employee turnover by age group, gender, 2011 Sustainability Report, P61, Key performance indicators. and region.
LA3 Benefits provided to full-time employees that are not provided Benefits provided to our full time employees for all of our operations are: health to temporary or part-time employees, by major operations. care to senior staff, eye tests for all staff, life insurance to all staff, disability/ invalidity coverage to some senior staff, maternity/paternity leave, retirement provision to all staff, stock ownership to senior directors
Occupational health & Safety
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, 2011 Sustainability Report, P61, Key performance indicators. and number of work-related fatalities by region.
Training and education
LA10 Average hours of training per year per employee by employee category. 2011 Sustainability Report, P61, Key performance indicators.
Diversity and equal opportunity
LA13 Composition of governance bodies and breakdown of employees per 2011 Sustainability Report, P61 Key performance indicators. category according to gender, age group, minority group membership, Annual Report and Accounts and other indicators of diversity.
Fully achieved partially achieved Berkeley Sustainability Report 2011 71 SUSTAINABILITY REPORT – Performance Report
Profile Cross-reference/ Disclosure Description Reported Direct answer
Social: Human rights
Disclosure on Management Approach including reference to: The majority of the issues are not relevant to ourselves directly as we operate investment and procurement practices, non-discrimination, solely in the United Kingdom. We do however recognise that issues are pertinent to our supply chain and details of our requirements can be found within our freedom of association and collective bargaining, abolition Sustainable Procurement Policy. of child labour, prevention of forced and compulsory labour, 2011 Sustainability Report, P50, Running a Sustainable Business, Website: complaints and grievance practices, security practices and Employee Policy, Sustainable Procurement Policy, Business ethics policy. indigenous rights. Website: Organisational Responsibility
Investment and procurement practices
HR1 Percentage and total number of significant investment agreements We do not work or invest in regions where human rights are a concern as our that include human rights clauses or that have undergone human development activities are all based in the UK, and predominantly in the South rights screening. East of England. Therefore, this is not an investment risk and our investment agreements do not include specific clauses on human rights or undergo human rights screening.
HR2 Percentage of significant suppliers and contractors that have undergone 2011 Sustainability Report, P50, Running a Sustainable Business. screening on human rights and actions taken. All of our contractors and suppliers are required to comply with the Sustainable Procurement Policy which is incorporated within the Berkeley Group Management Rules, under which all our contractors are contracted. For those goods and services being sourced from developing countries, we expect suppliers to demonstrate that minimum supply chain labour standards have been met. This policy states that we use the Ethical Trading Initiative (ETI) Base Code and the standards adopted by the UN through the Universal Declaration of Human Rights, and the ILO Conventions. Based on our total spend on suppliers and contractors, materials that are associated with a human rights risk would be insignificant as a proportion of this spend, but we recognise the importance of this issue and have monitored compliance on a case-by-case basis. We have prioritised those materials which have human rights risks associated with them and the country of origin. Where we feel specific materials could have human rights issues associated with them, we have sought more detailed information from suppliers on the management of human rights issues.
Child labour
HR6 Operations identified as having significant risk for incidents The Berkeley Group only operates in the England, which is governed by UK and of child labour, and measures taken to contribute to the elimination European legislation in respect of child labour. Therefore, none of the Berkeley of child labour. Group's direct operations pose a significant risk in relation to child labour.
Social: Society
Disclosure on Management Approach, including reference to: Annual Report and Accounts. community, corruption, public policy, anti-competitive behaviour 2011 Sustainability Report, P37, 40, Delivering Sustainable Communities. and compliance. 2011 Sustainability Report, P50, 57, Running a Sustainable Business. Website: Organisational Responsibility. Website: Business Ethics Policy. community
SO1 Nature, scope, and effectiveness of any programmes and practices that 2011 Sustainability Report, P40, Delivering Sustainable Communities. assess and manage the impacts of operations on communities, including entering, operating, and exiting.
Corruption
SO2 Percentage and total number of business units analysed for risks All – see Annual Report and Accounts. related to corruption. Website - Whistle blowing Policy. Business Ethics Policy.
Public policy
SO5 Public policy positions and participation in public policy development 2011 Sustainability Report. P57, Key performance indicators. and lobbying. 2011 Sustainability Report: P6-9, Managing Director’s Statement. Policies. (All). The Berkeley Group’s Vision2020 strategy and sustainability policies do not differ from any public policy positions that are taken.
Anti-competitive behaviour
SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, 2011 Sustainability Report, P60, Key performance indicators. and monopoly practices and their outcomes.
Compliance
SO8 Monetary value of significant fines and total number of non-monetary 2011 Sustainability Report, P60, Key performance indicators. sanctions for non-compliance with laws and regulations.
72 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Profile Cross-reference/ Disclosure Description Reported Direct answer
Social: Product responsibility
Disclosure on Management Approach including reference to: 2011 Sustainability Report, P20-21, The Customer Experience. customer Health & Safety, product and service labelling, 2011 Sustainability Report, P27, Building Greener Homes. marketing communications, customer privacy and compliance. 2011 Sustainability Report, P55, Performance summary. Website: Customer Charter. Website: Business Ethics Policy. Website: Organisational Responsibility.
Customer health & Safety
PR1 Life-cycle stages in which Health & Safety impacts of products and All stages of the product lifecycle are analysed for H&S through CDM services are assessed for improvement, and percentage of significant practices. Additionally, Health & Safety audits are conducted at all of our products and services categories subject to such procedures. construction sites. 2011 Sustainability Report, P51, Running a Sustainable Business. 2011 Sustainability Report, P57, Key performance indicators.
Product and service labelling
PR5 Practices related to customer satisfaction, including results of surveys 2011 Sustainability Report, P20, 22, The Customer Experience. measuring customer satisfaction. 2011 Sustainability Report, P55, Key performance indicators.
Marketing communications
PR6 Programmes for adherence to laws, standards, and voluntary codes Website: Customer Code. related to marketing communications, including advertising, promotion, 2011 Sustainability Report, P20, The Customer Experience. and sponsorship.
Fully achieved partially achieved Berkeley Sustainability Report 2011 73 SUSTAINABILITY REPORT – pERFORMANCE REpORT
UpSTREAM SUSTAINABILITy SERVICES jONES LANG LASALLE
advisor’s statement For Berkeley’s 2011 Sustainability Report, Upstream Sustainability Services has been involved in the following ways: • providing assistance on reporting to Global Reporting Initiative Level B • Validating and analysing environmental and social performance data • Undertaking an assessment of progress against the Vision2020 commitments set in 2010 Jones Lang LaSalle has been working with Berkeley as a strategic sustainability advisor since 2002, and provides a range of consultancy advice to help Berkeley both set and achieve its sustainability objectives. This statement does not therefore represent a fully independent viewpoint and does not provide independent verification of the report contents. The following statement may instead be understood as an external, objective opinion of the Berkeley Group’s sustainability performance and management of its key impacts over the past year.
DATA VALIDATION AND pROCESS REVIEW The validation of the environmental and social performance data handled by Upstream Sustainability Services was limited to checking performance trends and highlighting potential errors in data reporting. Quarterly environmental performance reports were provided throughout the year to determine whether the environmental commitments were likely to be met. We also completed a process review at half year to verify performance against Berkeley’s Vision2020 commitments. The review assessed the procedures in place and evidence available to validate the performance results. The outcome of the review indicated that Berkeley has good processes and procedures in place to both meet its commitments and provide accurate data to report its progress. A number of recommendations for improvements were highlighted during this review.
2010/11 VISION2020 REVIEW Last year, Berkeley set 40 commitments to run from May 2010 to May 2012. Of those, 73% (29) have already been met or are on track to be met in 2011/12, 22% (9) require further work to ensure they will be met in 2011/12 and 5% (2) were not met in 2010/11. The overall good performance demonstrated by Berkeley, in the context of a year when production levels have almost doubled, is testament to its continued commitment to sustainability. Notable achievements during 2010/11 include: • The Customer Experience: 96% of customers would recommend Berkeley to a friend. Berkeley also commissioned and completed market research with 26% of its customers to understand how sustainability influences their buying preferences. • Building Greener Homes: A total of 5,980 homes which entered planning in 2010/11 committed to meet Code Level 3. Of the homes completed during the year, 832 (34%) were certified to Code Level 3. In addition, Berkeley began its first Code 4 development in Shoreham-by-Sea. • Delivering Sustainable Communities: A Building for Life Gold Standard was achieved at Stanmore place and all developments in planning committed to achieve at least the Building for Life Silver Standard. • Running a Sustainable Business: Achieved a RIDDOR Accident Incident Rate of 3.63, which is a reduction on the previous year’s performance and remains below the industry average. Berkeley’s 5% year-on-year commitments to reduce operational carbon emissions and water consumption were behind target in 2010/11 but like others who are engaged in this area, they realise what a challenge this is and have made strong progress. Berkeley will be reassessed against all of its commitments at the end of the 2011/12 financial year.
74 Berkeley Sustainability Report 2011 Performance Report – SUSTAINABILITY REPORT
Edenbrook, Fleet.
Advisor’s review 2010 was a turning point for Berkeley with the launch of Vision2020. The Group must be commended for the efforts that were made during 2010/11 to ensure that Vision2020 was a success within the business, as well as continuing to focus on delivering carbon efficient homes. The decision to adopt Vision2020 as a strategy for the whole business demonstrates that Berkeley has fully integrated sustainability into its business operations and can identify the value this generates. The Coalition Government’s introduction of the Localism Bill, which raises the challenge of social sustainability higher up the political agenda, is likely to have a significant impact on UK housebuilders. Berkeley’s Vision2020 strategy and its first place ranking in the NextGeneration 2010 benchmark prove that it places social and economic well-being at the heart of the business. Within this context, Berkeley has an opportunity to further measure and articulate the socio-economic impact of its developments, and the value that it generates in the community. We suggest that Berkeley should address the following important challenges in 2011/12, in order to meet its Vision2020 commitments. • To consistently deliver the Vision2020 strategy across the whole Group and ensure that those projects which have not met the commitments in 2010/11 meet them in 2011/12. • To adopt a more proactive approach to managing energy and water consumption so that the commitment can be met in 2011/12. A more detailed understanding of the costs and benefits of each of Berkeley’s sustainability commitments would facilitate the allocation of resources to achieve them. • To look further ahead, moving beyond resource efficiency to tackle more challenging issues, such as embodied carbon and zero carbon design, materials sourcing and supply chain impacts. We look forward to seeing Berkeley achieve its Vision2020 commitments over the next year and move a step closer to achieving its Vision2020 objectives. We are confident that an equally impressive period of performance lies ahead. Emma Hoskyn, Senior Consultant Upstream Sustainability Services, Jones Lang LaSalle.
Berkeley Sustainability Report 2011 75 Our vision for the future
“Our vision is that BY 2020 BERKELEY WILL BE ONE OF THE MOST SUCCESSFUL AND SUSTAINABLE BUSINESSES IN BRITAIN.
WE WILL ACHIEVE THIS BY CREATING BEAUTIFUL PLACES THAT MAKE IT EASY FOR PEOPLE TO LIVE SUSTAINABLE LIVES”. CONTENTS
INTRODUCTION Who we are and what we do 1 About this report 2 Chairman’s statement 3 Our strategy and achievements 4–5 Managing Director’s statement 6–9 Vision2020 10–11 How we manage risks and opportunities through Vision2020 12–13 Our Vision2020 governance structure 14 Reviewing Vision2020 and defining our reporting content 15
THE CUSTOMER Our vision for 2020 16–17 Progress against Vision2020 commitments 18 EXPERIENCE The customer focus 19 Progress review 20–21 Case Study: What our customers think about sustainability 22 Vision2020 commitments and ambitions moving forward 23
BUILDING Our vision for 2020 24–25 Progress against Vision2020 commitments 26 GREENER HOMES Progress review 27–31 Case Study: An ecological legacy 32 Vision2020 commitments and ambitions moving forward 33
DELIVERING Our vision for 2020 34–35 Progress against Vision2020 commitments 36 SUSTAINABLE COMMUNITIES Progress review 37–40 The Berkeley Foundation 41 Case Study: An employment success 42 Vision2020 commitments and ambitions moving forward 43
RUNNING A Our vision for 2020 44–45 SUSTAINABLE BUSINESS Progress against Vision2020 commitments 46 Reporting to our investors 47 Progress review 48–51 Case Study: Interview with Lorraine Cooper, Sustainability Manager 52 Vision2020 commitments and ambitions moving forward 53
PERfORMANCE Vision2020 performance summary 54–57 Key performance indicators 58–65 REPORT GRI compliance 66–69 GRI performance indicators 70–73 Upstream sustainability services – Jones Lang Lasalle 74–75
Front Cover: Stanmore Place. BERKELEY GROUP SUSTAINABILITY REPORT 2011 Berkeley Group Group Berkeley sustainability report 2011
The Berkeley Group Holdings plc Berkeley House 19 Portsmouth Road Cobham Surrey KT11 1JG UK
Telephone +44 (0)1932 868555 Facsimile +44(0)1932 868 667 Website www.berkeleygroup.co.uk
Design by Hunter Design
Printed in England by Alito Group This report is printed on Greencoat Silk
Our vision for the future