Building sustainable values

Sustainability report 2016 Introduction

We build more homes per year than any other UK housebuilder, putting us at the forefront of providing the homes Britain needs for the future. This year, we increased our volume by 5.3% to 17,3194 legally completed units (2015: 16,447).

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Barratt Developments PLC – Sustainability report 2016 Our goal is to be the leading national sustainable housebuilder To define what this means for our business we completed a materiality process, building on the work started in 2014. By talking to key external stakeholders and our employees, we have established the most important social, environmental and economic issues for us to concentrate on. This has helped us to focus our aspirations and objectives to ensure that we create value for our investors, our employees, the communities we operate in, and our customers, responding to the ambitions of local and national government.

Learn more about External recognition sustainability at Barratt and assurance This sustainability summary report provides information We prefer to be judged by our actions rather than our on our material sustainability issues and management of intentions, which is why our annual Sustainability report them. If you’d like to see the full range of data we collect is independently assured using the AA1000 Assurance and report on, visit our sustainability website. Our full range Standard and we use the Global Reporting Initiative’s (GRI) of sustainability policies are also available here. G4 guidelines to help to shape the content. Please read our assurance statement here.

1 PLC – Sustainability report 2016 A word from the Chief Executive

Over recent years we have worked hard to meet our Across the last 12 months our actions demonstrate our commitment to be the nation's leading sustainable clear intent: through our partnership with the RSPB we housebuilder. To maintain that position, we recognise have invested in the design of new swift bricks to provide that we have to constantly renew our efforts. Last year in a nesting environment for birds which the whole industry my foreword to the 2015 Sustainability report, I outlined can use. We have completed a major project looking at that we have to demonstrate genuine performance plasterboard sizes with genuinely exciting results which improvements and that we would be on a mission to review could end up reducing our waste by 1,300 tonnes every and improve our processes and engage with key internal year. We’re making clear our zero tolerance approach to and external stakeholders to ensure we are focused on Modern Slavery is being supported by the companies in what matters most to them and to us. our supply chain. Over the past 12 months that's what we have done. We showcase within this report individual employees within Talking extensively to our colleagues across the business, the organisation who take a lead on sustainability in the day our suppliers, partners, external stakeholders and our to day decisions they make in their roles, who can help to customers we have distilled our key sustainability issues, inspire us all to deliver a successful, sustainable business. defined targets, and developed simple and deliverable Now, over the next 12 months there is plenty more to do on action plans for us to concentrate on. Our stakeholders the issues that matter most to us and to you. clearly expect us to continue to lead. Some things will never change – our focus on health and safety for instance. One final thing our consultation work also told us was that However stakeholders are expecting us to communicate we can improve the way we talk about what we do, making more in relation to the social aspects of sustainability, our reporting more focused, but also making sure we particularly with the focus on availability of skills, place share the stories throughout the year that demonstrate the making and responsible sourcing of goods and labour. way in which we deliver for our stakeholders. This is a key And throughout this exercise we've been careful to part of our plan over the coming months and it begins with understand how our approach to these key areas of this interactive report, linking you to much more detailed sustainability can help our business act responsibly but information, eliminating the obvious use of resources for also reduce costs and create efficiencies at the same time printing and allowing us to reach out to a wider audience. as we protect and improve our environment and build the high quality homes and communities our customers love.

Across the last 12 months our actions demonstrate our clear intent

David Thomas Chief Executive

2 Barratt Developments PLC – Sustainability report 2016 About us Our year at a glance1 Barratt Developments PLC is the nation’s leading housebuilder. At the heart of our business is a commitment to creating homes and communities that are sustainable places to live and that help meet the UK’s housing shortage. We put our customers first by 84% 81.7% 99B CDP building desirable homes in well-designed places, minimising FTSE4Good2 Gold and 2nd place in the highest score for our environmental impact and providing social and economic NextGeneration homebuilder a national housebuilder3 benefits. These actions provide a sustainable financial return sustainability benchmark for our shareholders. Our principal activities comprise acquiring developable land, obtaining planning permission, building high quality homes, communities, and retail and commercial developments. These activities are supported by expertise in partnerships, procurement, design and strategic land. 17,319 17% 6,131 homes legally of these were direct employees5 Our housebuilding business mainly trades under completed4 affordable homes the Barratt Homes, Barratt London and David Wilson Homes brands from our 27 divisional offices. We operate in established markets as well as developing pioneering urban regeneration schemes.

1 This report relates to the full scope of our operations for the reporting 3 The Carbon Disclosure Project (CDP) motivates companies to disclose period of 1st July 2015 to 30th June 2016. their environmental impacts. 2 FTSE4Good is an equity index series designed to facilitate 4 A legally completed home is one where ownership has been handed investment in companies that meet globally recognised corporate over to the customer in law. Figure refers to total completions including responsibility standards. joint ventures by year end, 30th June 2016. 5 Average number of full time equivalent employees in reporting period.

3 Barratt Developments PLC – Sustainability report 2016 Definingwhat matters most

The framework we use to build a more sustainable business is informed by our business priorities, our principles and our ‘material issues’ – the sustainability issues that matter most to us and to our stakeholders. In the early part of 2016, we undertook extensive research with our stakeholders to redefine and prioritise our material issues.

The purpose of our research was to challenge our existing framework of 12 material issues, and identify the issues that our stakeholders feel are most important, getting feedback on our current sustainability performance. Once issues were identified, we looked at how we communicate and set meaningful goals relating to them.

4 Barratt Developments PLC – Sustainability report 2016 How we engaged our stakeholders

Start

Telephone interviews Online consultation Result with 14 key stakeholders to gather quantitative data We developed a matrix of material topics. to understand the detail and commentary These were validated through internal Socially responsible investing analysts Sample of 248 employees consultation with Barratt’s Directors who are accountable for each of our Mortgage lenders Sample of 64 suppliers material issues. Landowners Non-governmental organisations Homes and Communities Agency Charities Read more information Development partners Local authority stakeholders about our sustainability governance Registered providers Trade associations on our website Planning organisations The materiality process Local authorities has helped us to: Think tanks >>Simplify our sustainability strategy Barratt Managing Directors and focus our reporting. >>Focus time and resources on the initiatives, communication and training that will make a difference. >>Understand the approach needed to make our business more resilient Stakeholders were asked and successful in the future. to identify and prioritise the issues that matter most Read more about what matters most Material topics determined on our website

5 Barratt Developments PLC – Sustainability report 2016 Delivering what matters most Informed by our materiality assessment, we have set targets for 2020, and in some cases 2025, within each of our six strategic focus areas. For more information on our ongoing progress towards our shorter term 2016 goals, see our sustainability reporting online.

Strategic focus areas

Keeping Attracting inspiring people safe Operating efficiency and investing in people

Our ambition Our ambition Our ambition To provide a safe environment for our employees, To minimise our use of materials and energy, reduce waste To continue to invest in and develop our people, and to sub-contractors and people living in the communities generation and maximise low carbon opportunities in our identify new pools of talent to help us deliver ongoing where we build our homes and run our offices. business operations. business growth to 2020. Our targets Our targets Our targets Maintain Injury Incidence Rate (IIR) at the level recorded By 2025: Reduce carbon intensity from our By 2020: Recruit 1,100 employees through our Future in 2015.6 operations, offices and business mileage by 10%.7 Talent Programme. Maintain 5 Star Safety Management System status By 2020: Reduce waste generation by 10%.8 Maintain upper quartile UK FTSE250 performance in our engagement survey.9 (as assessed by the British Safety Council). Maintain recycling rate at 95%. Maintain an average of 3 training days per employee per year. Our performance Our performance Maintain and seek to reduce staff turnover at or below 20%. Two sub-contractor employee fatalities. 5.5% reduction in carbon intensity. By 2020: Ensure the gender and ethnicity of our workforce reflects the communities where we operate. 385 reportable injury rate per 100,000 employees, a 1% Construction waste generation has stabilised with increase on 2015. a marginal 0.3% increase (tonnes per 1,000 sq. ft.). Our performance 5 Star Safety Management System status maintained, 95% of construction waste recycled. opportunities highlighted on behavioural safety. Recruited over 900 graduates, apprentices and trainees including our intake for FY17. Maintained our upper quartile performance in our latest Engagement Survey. 6 SR 2015 stated IIR at 381 per 100,000 employees. Delivered 3 days training per employee. 7 Carbon intensity is tonnes of CO2e per 1,000 sq. ft. We measure Scope 1, 2, 3 emissions which include energy and fuel use onsite, in offices and includes all business mileage. Our Group target is based on a 2015 baseline. Staff turnover reduced from 19% to 17%. 8 We report waste generation in tonnes of waste per 1,000 sq. ft. Our Group target is based on our 2015 baseline and on above ground construction waste generation. Diversity and inclusion forum set up to drive forward 9 IBM's high-performing UK norm is the 75th percentile of the UK company scores, measured across 199 organisations. The high-performing norm is 72%. strategy development.

6 Barratt Developments PLC – Sustainability report 2016 Strategic focus areas

Sustainable and Investing in Sustainable responsible innovation and places to live sourcing development

Our ambition Our ambition Our ambition To meet the expectations of customers and communities To work in partnership with our supply chain and sub- To improve performance across all aspects of our business by delivering sustainable places to live that satisfy the contractors to operate responsibly and resource efficiently. and for our customers and stakeholders, through innovation need for further housing, whilst also providing a lasting, and development. positive legacy. Our targets Continuous improvement and innovative solutions developed Our targets Our targets in collaboration with supply chain. By 2020: Build 20% of units using offsite construction 13 By 2020: Continued commitment to Built for Life and our Maintain 100% timber sourced from sustainable sources techniques against 2014 baseline. own internal design standard, Great Places. (FSC/PEFC) for Group timber agreements. Our performance By 2020: Seek to create a net positive impact on biodiversity and ecology across our development portfolio.10 Our performance 15% of units built using offsite construction techniques 94 Group and London suppliers signed up to the Supply against 2014 baseline. Our performance Chain Sustainability School. Over 100 innovative build systems assessed. 11 40 Built for Life awards. 100% of all timber procured through Group agreements is 20 new suppliers engaged via an innovation ‘sandpit’. Built 2,969 affordable homes.12 from sustainable sources (FSC/PEFC). Built 113 local community facilities. 30% of new developments had a biodiversity action plan.

10 Put simply, this means that Barratt will seek to demonstrate that, by 2020, the Group will have a net positive impact on ecology and biodiversity across its development portfolio. 11 Built for Life kite mark is currently only applicable to England. 12 Includes joint ventures. 13 Restated against 2014 baseline of 14,838 legally completed units.

7 Barratt Developments PLC – Sustainability report 2016 Keeping people safe To provide a safe environment for our employees, sub-contractors, and people living in the communities where we build our homes and run our offices.

Sury Patel Project Manager at Barratt London. NHBC Health and safety 2016 award winner. 8 Keeping people safe continued

Why this matters most Our approach Our focus areas ‘Keeping People Safe’ is a core principle. Embedding safety behaviours An increase in building speed to meet the We aim to achieve an injury-free working Our ‘Five Steps to Safety’ campaign, environment and are committed to the highest rising demand for more homes, combined commended by the National House Building industry standards. Council (NHBC) in 2015 as the leading health with shortages of skilled labour, means We have a dedicated board-level committee and safety initiative in the sector, encourages additional effort is needed to maintain a safe to assist the Board’s stewardship of our health employees at all levels to think about safety. and safety performance. Operationally, all A robust SHE training matrix explains the working environment. divisions within the Group maintain integrated training needs for different staff and sub- safety, health and environmental (SHE) contractor roles, and our regular safety, management systems externally certified health and environmental bulletin contains to OHSAS 18001 and ISO 14001.15 Targets and performance overview safety advice and company policy reminders, A team of 22 safety, health and environment legislation news, campaigns and case studies. Two employees of our sub-contractors tragically lost their (SHE) managers, reporting to the Group SHE lives this year in separate incidents. Our reportable injury Director, check that these standards are being Engaging our suppliers rate increased by 1% compared to 2015. Health and safety met on a monthly basis, and make suggestions We engage our wide range of sub-contractors for improvement. is always our highest priority and we continually work hard and suppliers to ensure safety expectations on Our programme of unannounced site visits by site are understood and adhered to. to improve the rigour of our processes. We maintained our Directors, Managing Directors and Regional 5 Star British Safety Council status. Managing Directors reinforces the importance Highlighting the importance of health of safe working practices on-site. In addition, The health and wellbeing of our employees there is a well-publicised and anonymous and sub-contractors is important to us. externally operated whistleblowing system for Through Barratt Benefits we offer health Our targets Our performance employees and sub-contractors to use if they screening and on-site we provide advice and feel a concern has not been taken seriously guidance on occupational health issues, such >>Maintain Injury Incidence Rate (IIR) at the >>Two sub-contractor employee fatalities. or they feel uncomfortable raising it. as noise, dust and vibration. 14 level recorded in 2015. >>385 reportable injury rate per 100,000 >>Maintain 5 Star Safety Management employees, a 1% increase. System. >>5 Star British Safety Council rating. >>96% SHE internal audit performance score.

14 SR 2015 stated IIR level at 381 injuries per 100,000 employees. 15 OHSAS 18001 sets out requirements for the management of occupational health and safety risks. ISO 14001 is the international standard for environmental management. More information on our management systems.

9 Barratt Developments PLC – Sustainability report 2016 Keeping people safe continued

Case study E-forms An overall business review investigated the efficiency implications of site team paperwork, aiming to: Mobile technology allows >>Enhance our defined safe systems of work. me to spend more of my >>Review all site based forms to consider time managing construction their content and usability. activities on the ground. >>Reduce the administration burden on our site management teams. The end result is a safer, >>Increase time spent by site management more efficient site. reviewing the build process onsite and managing construction activities. The outcome was industry leading Andrew Bentley document management, enabling our site Senior Site Manager, Yorkshire East teams to complete statutory and control documentation via a mobile device app. The project objectives were met, realising a reduction in the time our site teams spend completing these documents, enhancing control processes and improving storage and retrieval of information.

Above: E-forms enable Site Managers to spend less time in the office and more onsite.

10 Barratt Developments PLC – Sustainability report 2016 Keeping people safe continued

Our performance released in January 2016 following an update to revise roles & responsibilities, group Our focus for the future We were deeply saddened that two employees Reportable injury rate per 100,000 employees standards and SHE forms. (including sub-contactors) of our sub-contractors lost their lives in ‘Leading Safety’ course Our sites maintained an average of 96% 511 separate incidents on two of our sites during Directors and Senior Managers will attend compliance with our SHE management system the year. Both of these incidents have been the course by the end of 2016. This is requirements after 6,184 monitoring visits by thoroughly investigated by our internal health accredited by the Institution of Occupational and safety team. We are fully co-operating our in-house safety, health and environmental 385 Health and Safety. with the Health & Safety Executive during team. Additionally, all divisions have retained 381 379 their ongoing investigations into each of their OHSAS 18001 accreditation and whilst Our 5 Steps to Safety programme the incidents. our 5 Star rating from the British Safety 329 Council was retained, areas for improvement This will continue to be used to develop Our overall injury incident rate has increased include consideration of a behavioural safety a focus and culture of behavioural safety. by 1%. programme and enhancing our approach to Awareness sessions Effective SHE management occupational health. These will be run for site management The Safety, Health and Environmental Embedding safe practice and technical staff until the end of 2016, 2012 2013 2014 2015 2016 Operations Committee has developed a Employees continue to have confidence in our continuing to enhance knowledge and plan to ensure our systems and processes approach, with 93% reporting their belief in control of temporary works. improve performance. This is by supporting our commitment to health and safety in the Review the use of heavy tools, our people to deliver effectively and challenge annual Staff Engagement Survey. Nine Site our approach. Furthermore, we have reviewed Managers were commended in the NHBC machinery and vehicles and relaunched our training strategy for staff Health and Safety awards with five going on to Establish additional measures to increase at all levels, and we trained 600 employees on be highly commended, the most awarded to safe use. 16 safety requirements. temporary works any UK housebuilder. We have also raised awareness with site Introduce Construction Skills Fifteen seminars for sub-contractors were run staff on the health issues of noise at work, Certification Scheme card readers on key safe working practice issues, including respiratory protection and alcohol awareness. loading and unloading of delivery vehicles. This will be linked to the card database to The latest Occupational Safety, Health & improve control of entry to our sites and Environmental Management System was reduce the risk of inappropriately trained workers carrying out tasks. Dust exposure Continue to work with the industry and regulators to improve knowledge and control of exposure to dust, silica and wood.

16 For example temporary structures on site e.g. formwork, temporary bridges, earthworks e.g. trenches or equipment e.g. tower cranes, piling platforms.

11 Barratt Developments PLC – Sustainability report 2016 Operating efficiency To minimise our use of materials and energy, reduce waste generation and maximise low carbon opportunities in our business operations.

Austin Barfield Site Manager, Southampton. The St James Place development has achieved a reputation 12 for a high speed of build and low levels of site waste. Operating efficiencycontinued

Why this matters most Our approach Our focus areas Safeguarding the Environment is one of our Designing out construction waste Increasing demand for new housing means core principles, and as a part of this, we are Following the increase in volumes and costs committed to minimising the environmental we have to become more resource and energy experienced in 2015, reducing construction impacts of our operations. See our Climate waste at source has become our primary Change Policy online, and read more about efficient, produce less waste, generate fewer focus. With raw material use, transport, our assessment of climate change risks and packaging, onsite labour, and collection carbon emissions and use less water. how we are responding to them in our annual adding to the true impact on the business and submission to the Carbon Disclosure Project. the environment, we work with our design All our divisions are certified to ISO 14001, and technical and commercial teams, and Overview the environmental management standard that our suppliers to design out waste at source. helps to minimise energy, carbon, waste and We also divert waste from landfill and Our operational carbon intensity has reduced by ecology impacts on site across every division. maximise reuse and recycling. 5.5%. Our construction waste tonnage per 1,000 sq. ft. We take a multi-disciplinary approach to Changing behaviours has stabilised. We continue to divert 95% of construction operational efficiency, setting policy and waste from landfill. Group-wide expectations and aiming to Making changes to our energy use, waste ensure that supplier specifications improve and recycling requires every individual to energy efficiency, waste and water reduction. play their part in the office, in sales locations Our targets Our performance Our waste reduction plan, led by our Group and on site, so we are focusing on leadership Construction Director, is reviewed quarterly. and communication. By 2020: >>Construction waste generation has We are working to improve the visibility of Energy efficient, low carbon operations 17 waste generation and energy statistics in >>Reduce waste generation by 10%. stabilised with a marginal 0.3% increase Audits undertaken at 12 sites and four offices, (tonnes per 1,000 sq. ft.) our divisional teams. >>Maintain recycling rate at 95%. as part of the Energy Savings Opportunity >>95% of construction waste recycled. Getting an accurate understanding of our Scheme, highlighted that onsite energy use By 2025: performance, which we can share across all >>5.5% reduction in carbon intensity. and diesel and fuel used whilst travelling on >>Reduce carbon intensity from our our divisions, is vital to enable us to target the business are areas with opportunities for construction operations, offices and areas of greatest potential improvement. improvement. It identified £800,000 of simple business mileage by 10%.18 potential savings.

17 We report waste generation in tonnes of waste per 1,000 sq. ft. Our Group target is based on our 2015 baseline and on above ground construction waste generation.

18 Carbon intensity is tonnes of CO2e per 1,000 sq. ft. We measure Scope 1,2,3 emissions which include energy and fuel use on site, in offices and includes all business mileage. Our Group target is based on a 2015 baseline.

13 Barratt Developments PLC – Sustainability report 2016 Operating efficiencycontinued

Our performance Being energy efficient and reducing emissions Influencing Behaviour During the COP21 climate change talks Carbon intensity19 has decreased by 5.5%, Our Regional Managing Directors monitor in Paris we reinforced our commitment to some of which is attributable to conversion our divisional Environmental Action Plans the environment by making a public pledge factors. However overall energy efficiency (EAPs) every six months. Our annual carbon on our carbon reduction, via the UK Green has improved by 1%. Gross greenhouse gas and waste leagues show the variance in Building Council. emissions in 2016 have increased by 3% due energy consumption, waste generation and to our increased output. The main increases carbon emissions across our offices, show It’s fantastic to see the serious Reducing waste in carbon emissions are derived from gas homes, sales offices and sites. They are public commitment Barratt We have maintained our onsite waste and diesel use onsite. We will continue to issued to Divisional Managing Directors generation, increasing waste intensity by just focus on reviewing processes to speed up the to drive improvement. have made to reducing the 0.3% and we have maintained our recycling connection of compounds to the grid and using Running alongside the COP21 climate change amount of waste created and rate at 95%. more energy efficient equipment. talks in Paris, our prominent poster campaign By targeting the areas with the most Site and office energy use encouraging employees to do ‘Just One to improving recycling rates. immediate potential, we have rolled out re- Thing’ to safeguard the environment was It creates a clear driver for sized plasterboard (see page 15), implemented run by our first year graduates alongside a compaction systems, reviewed pallet ‘#SustainableSelfie’ competition. In addition, material suppliers to consider repatriation, re-launched a paint tin recycling a waste reduction poster campaign showing how they can contribute to scheme, changed flooring solutions and top tips was launched at our sites in March. assessed suppliers’ use of polythene and achieving these objectives. lightweight packaging waste. Operating efficiency 2013 2014 2015 2016 Construction waste In the last three months of the reporting year (tonnes per 1,000 sq. ft.) 6.55 6.30 6.59 6.61 we have seen tonnages begin to reduce. Ian Winroth Construction waste recycled (%) 95 94 95 95 Business Development Director, British Gypsum Greenhouse gas emissions20 21 (GHG) (tonnes CO2e) 2014 2015 2016 Scope 1: Office and site: diesel, LPG, gas, refrigerant loss 5.5% and company-owned vans 17,315 18,224 20,211 Sites kWh Scope 2: Office and site: Major energy source* (% of Group) purchased electricity 14,053 11,843 10,804 Reduction in total carbon Diesel 36% Scope 3: Office: business travel by car, rail and plane 7,752 8,172 8,326 intensity Electricity 19% Scope 3: Office and site: electricity Natural gas 20% transmission and distribution losses 1,229 978 977 Vans 5% Total 40,349 39,217 40,318 Cars on business travel 20% Total carbon emissions (tonnes CO2e per 1,000 sq. ft.) 2.78 2.36 2.23 * Data based on ESOS audits for financial year ending June 30th 2015.

14 Barratt Developments PLC – Sustainability report 2016 Operating efficiencycontinued

Our focus for the future Roll out energy efficient equipment Analyse construction waste Engage fully with divisions to ensure uptake of eco-cabins, a new specification of forklift We will review the findings of a root cause truck and telehandlers as they are replaced. analysis of the sources of construction waste on both traditional and timber frame Review show home decorative lighting build sites. Roll out LED replacement programme. Groundworks and demolition waste Hybrid generators Find a mechanism for monitoring and Evaluate the outcome of the trial in our improving the efficiency of these types North East division, aiming to improve onsite of waste movements. energy efficiency through battery storage . Automated electricity metering (AMR) Speed up site connections Install on a number of site compounds Review processes to support earlier and sales areas to establish benchmark connections to the electricity grid to reduce baseline consumption. diesel use. Roll out AMR to offices Share best practice Establish benchmark consumption in each 22 Communicate best practice solutions with Case study Following successful trials, which had no metered office. our employees and partners. significant impact on the work of our sub- Plasterboard contractors, British Gypsum put into full Sometimes the simplest changes can make production a standard size wallboard. a very big difference, but it requires an Our estimates show that this could reduce understanding of the broader picture and our plasterboard waste by 1,300 tonnes the ability to influence change across the per year. whole sector. The initiative was launched in May 2016, Because of historical floor to ceiling and uptake by the divisions will be closely heights, we had consistently cut 100mm monitored. It will help to reduce health and off every plasterboard. safety risks, reduce transport of waste and cut energy and greenhouse gas emissions 19 We measure carbon intensity in tonnes of CO2e per 1,000 sq. ft. We measure scope 1, 2 and 3 emissions, which include energy and fuel use on site, Our Group Commercial Operations Director offices, refrigerant losses, electricity transmission and distribution losses and all business travel. engaged with the rest of the sector to associated with plasterboard recycling. 20 Calculated using data sourced from invoices and direct data measurement. Carbon emissions are calculated in line with DEFRA Environmental establish a sector-wide need to re-size Reporting Guidelines (including mandatory greenhouse gas (GHG) emissions reporting guidance, dated 2016, and Greenhouse Gas Protocol). plasterboard for new builds. GHG emission factors outlined in the DEFRA/DECC ‘ UK Government conversion factors for Company Reporting’ June 2016. Developments greenhouse gas emissions are not included in our corporate carbon target or baseline.

Above: Plasterboard off-cuts can be reduced by 21 Tonnes of CO2e – this means tonnes of carbon dioxide equivalent – used as the recognised measure of the basket of six greenhouse gases. re-sizing wallboard. 22 All offices that are not landlord supplied.

15 Barratt Developments PLC – Sustainability report 2016 Attracting, inspiring and investing in people To continue to invest and develop our people, and to identify new pools of talent to help us deliver ongoing business growth to 2020.

Jordan Brown Apprentice, Exeter. Barratt Apprentice of the Year, Winner. 16 Attracting inspiring and investing in people continued

Our approach Additional training for existing employees, Why this matters most as well as finding more diverse pools of Over 230,000 new workers23 are needed within Recruiting the diverse workforce we need talent through our armed forces partnership for tomorrow helps form our dual approach to diversity the industry in the next five years. As demand for Investing in our people is one of our core and inclusion. homes increases, there is a need to attract and priorities. We want to attract and retain the Our Barratt Careers website has been best people by investing in their development completely replaced to become more retain the best people and to invest in the skills and success. However, recognising and interactive, diverse and contemporary with and talent needed to solve future challenges. changing the perception of our industry will be over 40 video case studies of people who’ve key to solving the long term issue of attracting chosen to work in construction. a high capability workforce into housebuilding. Many potential recruits are unaware of Boosting retention through rewards, training and communication Targets and performance overview the range of career opportunities available within the sector, which also has a poor Beyond the steps taken to further improve Our staff turnover reduced to 17% from 19% and we maintained our upper reputation for diversity and inclusion. our benefits package, we have focused on quartile performance in our employee engagement survey. We recruited We must seek to attract talent by improving communication of these benefits a significant number of graduates, trainees and apprentices, and met our to increase their uptake. target for the average training days per employee. addressing a larger population, as well as ensuring a continued focus on retaining existing employees. Learning and development We recognise that to be an employer of choice Our focus areas with a sustainable approach to recruitment, Our targets Our performance we need the best quality programmes that Improving the appeal of housebuilding offer support to all our employees, as well as those on our Future Talent programmes. >>By 2020: Recruit 1,100 employees through >>Recruited over 900 graduates, apprentices We’re working closely with industry partners our out Future Talent Programme. and trainees including our intake for FY17. such as the House Builders Federation The Barratt Academy provides a range (HBF) and the Construction Industry Training of programmes in everything from sales >>Maintain upper quartile UK FTSE250 >>Maintained our upper quartile Board (CITB) as well as schools, colleges, 24 to technical disciplines. A number of our performance in our engagement survey. performance in our latest universities and University Technical Colleges Construction programmes are being >>Maintain an average of three training days Engagement Survey. (UTCs) to resolve the industry-wide shortage accredited by CITB. Our investment in training per employee per year. >>Delivered three days training of skills through targeted projects. and development continues with a particular focus on e-learning. >>Maintain and seek to reduce staff per employee. turnover at or below 20%. >>Staff turnover reduced to 17%. >>By 2020: The gender and ethnicity mix >>Diversity and inclusion forum set up to of our workforce to reflect communities drive forward strategy development. where we operate.

23 Construction Skills Network Forecast (2016-2020). 24 IBM's high-performing UK norm is the 75th percentile of the UK company scores, measured across 199 organisations. The high performing norm is 72%.

17 Barratt Developments PLC – Sustainability report 2016 Attracting inspiring and investing in people continued

Case Study Liam Roberts, former apprentice Liam returned to the UK with little in the way of suitable qualifications after living in Egypt with his family during much of his school life. The extra mentoring and After taking up an apprenticeship at Barratt development provided Exeter, he developed impressive bricklaying in the Barratt Academy has skills and entered into the CITB Skillbuild competition for apprentices, winning enabled me to achieve my 4th place in the country. Alongside this accolade, he won the French Memorial ambitions and give something Award at the City of Plymouth College and back by mentoring others. the 2014 Apprentice of the Year award at Barratt Exeter. Liam was also awarded Highly Commended at the National Liam Roberts Apprenticeship Awards in October 2015. Former apprentice A year later, Liam completed his Advanced Apprenticeship in Bricklaying, enabling him to sub-contract to construction employers. He now mentors junior apprentices, as well as visiting recruitment events in schools and colleges to bring new apprentices into the industry.

Above: Apprentices build a community facility at Nursery Fields, a Southampton Division site.

18 Barratt Developments PLC – Sustainability report 2016 Attracting inspiring and investing in people continued

Our performance Employee retention and communication 2013 2014 2015 2016 Our focus for the future Diversity and inclusion Our annual Employee Engagement Index Employees (average showed a strong result of 77% and our number FTE) 4,781 5,406 5,977 6,131 Continue to reduce employee turnover Chaired by our Chief Executive, we launched employee turnover has reduced by 2%. our Diversity and Inclusion Forum to develop Female (%) 32 32 31 30 Achieved 17% in 2017 through investing The My Barratt Benefits website for employees in training and employee benefits. and implement our diversity strategy. Senior Management has been rebranded and our benefits Female (%) 11 12 13 12 This has been combined with an approach to offer updated. Maintain employee engagement advertise jobs on a range of job boards and BME (%) 4 5 6 6 promote our approach to diversity through Registrations for our employee discount Maintain upper quartile FTSE performance Diversityjobs.co.uk with a company profile schemes within My Barratt Benefits have Graduates, trainees and in our employee engagement survey. page on The Big IDEA. increased by 30%. apprentices recruited 88 210 327 268 Maintain training levels Our 2015 graduate cohort are promoting a Health benefits are now included as part of Staff turnover (%) 13 16 19 17 An average of three days per employee campaign called ‘Built by Both’, to encourage our voluntary benefits programme alongside per annum. women into the industry and a scheme to ongoing improvement in our pension 2013 2014 2015 2016 schemes, life assurance, long service recruit trainee Site Managers from the armed Employee engagement Apprenticeships and trainees forces in our West region has been successful. and recognition schemes. index (%) 69 78 78 77 Seek to maintain a minimum of 5% of our Six completed the programme, spurring us to Seventy-nine of our Site Managers won a sign the Armed Forces Covenant. Employee engagement workforce in apprenticeship, trainee or National House Building Council Pride in the participation rate (%) 63 57 76 72 graduate roles. Job Award. Future talent and resourcing Sub-contractor retention remains a challenge, Recruit from the Armed Forces Apprentice Champions within each and we will explore options to reduce this division oversee the local apprenticeship Deliver on the Armed Forces Covenant and in 2017. experience, from recruitment to support in continue to build on the learning from our the role. Our patronage of the West Midlands West region pilot. Construction University Technical College has continued, where we provide academic and Diversity and inclusion professional guidance and work experience Roll out a comprehensive strategy informed for students. by our Diversity and Inclusion Forum. Through the CITB Construction Ambassador 17% Retain our sub-contractors programme we go into schools, colleges and career fairs to demonstrate the case for a career Review the findings of recent research in housebuilding. We use our new bespoke Staff turnover rate reduced by the House Builders Federation careers toolkit linked to the National Curriculum. on Positive Workforce Development, by 2% on the previous year exploring effective methods. Our reputation has been endorsed by being named top property and housebuilding company to work for by Job Crowd for the 6th year and a top 300 popular graduate employer in The Guardian.

19 Barratt Developments PLC – Sustainability report 2016 Sustainable places to live Providing a lasting positive legacy by creating sustainable places to live that satisfy the needs of customers and communities.

Irina Merryweather Senior Design and Planning Manager, North Thames. Delivered our first Outstanding Built for Life 20 scheme at Trinity Square. Sustainable places to live continued

Why this matters most Our approach Focus areas Creating Great Places to live for customers Great Places design ethos Building the new homes needed in the UK should is one of our core business priorities. We In 2012 we aligned our Great Places aim to deliver excellent design through our not be detrimental to existing infrastructure, our commitment to the 12 requirements of Built design ethos, also named ‘Great Places’. for Life; a nationally recognised accreditation This ethos is about considering how current natural environment or existing communities. that gives homebuyers confidence in design and future communities will function at each and planning when they buy a home. We need to build well planned, desirable of our developments, and the long term developments that create a positive legacy. environmental, social and economic impacts All our developments are reviewed against our of the way people live. ‘Great Places’ design standards prior to land purchase and during planning application stage, Our approach goes far beyond the design and they must achieve at least Silver status, of individual homes. We consider how each equivalent to the Built for Life accreditation. development will reflect and enhance the character and heritage of the local area. The best designs are put towards our annual Targets and performance overview awards process and are shortlisted and Our in-house Barratt Consult manual selected by our Executive for celebration at our The year has seen a continued commitment to designing high-quality guarantees that we approach every planning October leadership conference. places. Our dedication to placemaking has been demonstrated with application with a commitment to engage 4025 Built for Life26 awards, and our policy to ensure new developments27 widely, respond to feedback on the type, size House type ranges have a biodiversity action plan has seen a high level of compliance. and tenure of homes, deliver on our promises and build strong community relationships as Our houses are individually designed to suit outlined by our Community Policy. particular roles in the overall design of our new developments. Some houses are highly flexible Our targets Our performance The homes we build must be affordable to run in the way that they are used, whereas others and designed to adapt to risks from flooding are suitable for use in specific locations, which or overheating, in line with our Climate supports our ability to deliver Great Places to live. >>By 2020: Continued commitment to Built >>40 Built for Life awards.30 Change Policy. 25 40 of our developments had achieved Built for Life accreditation for Life and our own internal design by 31st July 2016. 28 >>Built 113 local facilities. Beyond this, we aim to ensure that our standard, Great Places. developments protect, create and enhance 26 Building for Life 12 is the industry standard, endorsed by Government, >>30% of new developments had >>By 2020: Seek to create a net positive ecology in accordance with our Ecology for well-designed homes and neighbourhoods. Developments built to a biodiversity action plan. these standards can gain the Built for Life kite mark. impact on biodiversity and ecology across and Biodiversity Policy; an ambition that 27 All our developments that require outline planning consent are 31 our development portfolio.29 >>Built 2,969 affordable homes. not only makes environmental but also required to have a Biodiversity Action Plan in place. economic sense. 28 Our own Great Places Silver standard is equivalent to a Building for >>73% of developments have an above- Life 12 accreditation. 32 ground landscape SuDs solution. Assessments of the economic benefits 29 Put simply, this means that Barratt will seek to demonstrate that, of our developments are included in the by 2020, the Group will have a net positive impact on ecology and planning process, and we report the biodiversity across its development portfolio. social and environmental contributions 30 Built for Life kite mark is currently only applicable to England. of the whole company through our Socio- 31 Includes joint ventures. 32 Sustainable urban drainage systems (SUDS) are an approach to Economic Footprint. managing drainage in and around properties and other developments by slowing and holding back the water that runs off from a site.

21 Barratt Developments PLC – Sustainability report 2016 Sustainable places to live continued

Read our Cane Hill case study online to see our Great Places priority in action Our performance Great Places We have built more affordable homes and achieved more Built for Life accreditations than any other housebuilder in the UK. For the past two years Barratt has set Our full data shows the number of our the pace for the number and quality schemes where we have built community of developments produced to Built facilities, invested in school places via section for Life standards. In 2016 they broke 106 agreements, incorporated sustainable travel schemes, and integrated low free of the pack, with two schemes carbon technologies. accredited as Outstanding on the same In May we presented evidence to the DEFRA day. They continue to push on with Select Committee to explain how all of our better and better places to live. schemes include some form of sustainable drainage and guarantee no increase in surface Case study Provide environments that aid the social water run off or flood risk.33 and economic wellbeing of residents Great Places David Birkbeck Building the homes communities need We ensure that all our residents, of whatever CEO of Design for Homes Our Great Places ‘placemaking’ principles age or household type, can gain easy access To build more efficiently and create greater ensure that we use the assets of a location to local employment, shops and community placemaking we consolidated our range of and community to design places promoting facilities by all main forms of transport. house types. The changes will kick in during health and wellbeing. Protect and enhance the natural and built the 2017 reporting year, allowing us to improve Provide homes that meet local environment, whilst providing a social ergonomics, reduce waste through better housing requirements legacy for future generations design and to make greater use of offsite Our homes address Britain’s changing Green spaces should be retained and we technologies, without any loss in quality. demographics and emerging trends in must respect and enhance local wildlife and In 2016 we participated in the Home Builders consumer demand. Homes should be given ecology. Developments should include public Federation (HBF) Starter Homes Expert Group, equal stature in external design, regardless and private spaces designed to encourage in response to the Government’s new Starter of tenure. social activity, and there should be enough Homes initiative.34 Our input has focused on distinction between these areas. Reflect local character and seek to ensuring the new policy and regulations can minimise environmental impact Ensure that streets create social spaces be introduced successfully and pragmatically. and are designed for all Our planning stages consider the local 33 Over the pre-development position. history, natural environment and existing Pedestrians, cyclists and cars must have 34 The government has a target to deliver 200,000 Starter Homes properties and neighbourhoods so that we equal priority. We promote safe speeds (as defined in the Housing and Planning Act) during the life of this retain and enhance existing features where and adequate lighting, surveillance, safety Parliament. Over the last year we have worked with the HBF as part of their Starter Homes Working Group. The aim has been possible both on and around the site. and security. to help ensure the new policy and regulations can be introduced Above: The Cane Hill development at Coulsdon. with maximum prospects of success and minimum adverse market impact.

22 Barratt Developments PLC – Sustainability report 2016 Sustainable places to live continued

Protecting and enhancing nature and heritage Community contributions Our focus for the future In partnership with the RSPB, we have We make significant contributions to the communities where we work through section 106 created a 'Growing with Nature' guide. contributions, physical infrastructure improvements, local employment and constructing local Land buying and design Designed to help our architects and facilities. These are summarised in our Group Socio-Economic Footprint. Ensure decisions relating to affordable consultants to plan developments with nature Our new Barratt Charity Plan has been enthusiastically supported by our divisions and housing and first-time buyers reflect in mind, it supplements our existing Ecology contributions have been matched by our Board. government policy. Practice Notes. Together with Manthorpe, our supplier, the Great Places design principles RSPB, and Action for Swifts we designed Sustainable places to live 2013 2014 2015 2016 Continue to embed across all our divisions an integral, hidden 'swift brick' nest box, to through annual awards, feedback Built for Life accredited developments (number) – 17 16 7 be built into our developments to support and training, building capacity to keep declining swift populations. Our £25,000 Publicly accessible greenspace or parks incorporated this consistent. investment substantially reduces the unit cost (% developments) 42 57 58 68 for the whole sector. Promote Great Places Sustainable travel schemes aimed at reducing car dependency The first swift bricks were sited at our flagship (% of developments) 11 11 19 28 Promote the value of our placemaking Kingsbrook development in August 2016. Donations to charitable causes (£) 258,596 219,491 433,678 603,77635 commitment to our partners. We have been considering how best to Continuous house type review capture and communicate our approach to ecology across our portfolio in relation to our Ensure our house types respond net positive goal in a way that is useful and to changing demographics and pragmatic for our business and stakeholders. customer needs. Performance data on ecology, biodiversity, Wildlife and ecology and landscape is available here. Embed the practice contained within our ‘Growing with Nature’ guide across all our divisions, aiming for full compliance. Biodiversity Action Plans Embed the requirement for these on all new sites where there is no prior planning 28% permission in place. Engage customers in ecology of our developments have We are revising our Ecology Action Plan for a sustainable travel scheme 2017, and revitalising our sustainable living in place to reduce car use guide issued to customers when they move into their home. 35 Please see full data set on our PLC website for charitable donations breakdown.

23 Barratt Developments PLC – Sustainability report 2016 Sustainable and responsible sourcing To work in partnership with our supply chain and sub-contractors to operate responsibly and resource efficiently.

Georgina McLean Senior Group Procurement Manager. Leading the roll out of the Supply Chain Sustainability 24 School with our suppliers. Sustainable and responsible sourcing continued

Why this matters most Our approach Our focus areas Our supply chain and sub-contractor Managing our supply chain Skills shortages, limited availability of materials labour force is integral to our business. We invest in our supplier relationships Close engagement with them is vital to deliver and the low carbon economy are just through engagement, education and quality homes now and to plan for the future, training to secure cost control and thinking about the materials we use, the way some of the challenges affecting the future security of supply. Improving our supplier we build homes, the waste we produce and selection and monitoring processes allows of our business. To meet these challenges, the emissions released during manufacturing. us to support their ability to enhance As Britain’s largest housebuilder, our influence we need a flexible, motivated and innovative sustainability performance. on the UK building supplies industry and supply chain that works and plans alongside us, labour force is considerable. Employment, skills and ethics and a sub-contractor workforce Group Procurement leads the strategic We treat sub-contractors and suppliers with that actively seeks to work with us. management of our supply chain for fairness, respect and ensure prompt payment, construction materials. Where there is Group- and expect the same in return. We have zero wide demand for particular products, we tolerance for any form of Modern Slavery. negotiate Group level agreements to deliver quality, cost and sustainability benefits, with Safeguarding the environment Targets and performance overview a focus on our long term strategy. Resource efficient design: suppliers We’ve further communicated our business and sustainability goals to our Our labour sub-contractors are managed are challenged to offer innovative and suppliers via our annual supplier conference and through three workshops locally by our divisions, overseen by our sustainable products. exploring sustainability and supply chain capacity issues. Group Commercial Team. With this comes Waste minimisation: 31% 37 of our construction a responsibility to pay for work promptly site waste is from lightweight compactable and protect employment, as well as packaging materials. We encourage take back supporting our suppliers to understand our schemes, recycling and are working with Our targets Our performance sustainability challenges so they can help suppliers to reduce packaging waste whilst us to overcome them. protecting goods. >>Continuous improvement and innovative >>94 Group and London suppliers signed up Our Sustainable Procurement and Timber Efficient, low-carbon supply chain: solutions developed in collaboration with to the Supply Chain Sustainability School. Sourcing policies are on our website. Construction product manufacture in our our supply chain. supply chain generates seven times the carbon >>100% of all timber procured through 38 >>Maintain 100% timber sourced from Group agreements is from sustainable emissions of our own operations. We work sustainable sources (FSC/PEFC) for sources (FSC/PEFC). with suppliers to improve their energy Group timber agreements.36 efficiency and provide low-carbon solutions. Biodiversity and habitats: We rely on 36 The FSC and PEFC are well established certification schemes for the sustainable sourcing of timber. significant natural resources, for example, 3 39 37 Based on waste data supplied by our waste management over 100,000m timber per annum. It is our contractors for FY 2015. responsibility to ensure that these resources 38 See Page 20 of our Sustainability Report 2015. are sourced sustainably and responsibly, and 39 Based on FY 2014 figures. that our sub-contractors do the same.

25 Barratt Developments PLC – Sustainability report 2016 Sustainable and responsible sourcing continued

Case study Building sustainability skills in our supply chain Launched in 2016, our partnership with the Supply Chain Sustainability Barratt takes attention School offers free online learning materials to help suppliers assess their to quality, service sustainability knowledge and performance, realise cost efficiencies, and find new and sustainability seriously marketing opportunities. and have shown leadership We have set an ambitious goal to sign up in the sector by providing all our Group and London suppliers within 12 months of the launch, and so far we learning tools for suppliers of are well on track. Three out of four of our planned workshops have been delivered to all sizes and categories to help 150 attendees, and 94, around half of our them be more sustainable, Group and London suppliers are signed up. We’re now looking at how we can use the efficient businesses. online materials provided by the School for the learning and development needs of our own workforce. Martin Benn Head of New Build, Eurocell

Above: Barratt supplier ABird picked up Barratt’s Innovation of the Year award for their hybrid generator, which reduces generator noise and diesel consumption. It is currently being trialled by our North East division.

26 Barratt Developments PLC – Sustainability report 2016 Sustainable and responsible sourcing continued

Our performance Safeguarding the environment Our focus for the future Best-practice implementation Managing our supply chain Efficient low-carbon supply chain: Local sourcing is important to ensure we minimise E-invoicing Closely monitor implementation of The launch of online e-tendering and a sustainable supply chain options across our environmental impact and keep costs To identify appropriate top 40 suppliers to be drawing portal in February will help us down. 90% of our construction materials are each of our divisions. streamline our tender process by providing moved onto e-invoicing by June 30th 2017. sourced within 50 miles of our developments Communicate sustainability achievements one point of entry for sub-contractors. It has (as per FY 2015 data). Review supplier packaging waste already been rolled out to all our divisions Actively promote sustainability achievements outside London. By re-tendering our site cabin supplier Establish a baseline and a reduction target made in partnership with our supply chain in 2016, we aimed to further improve the by the end of 2017. and sub-contractors. This year we updated our formal assessment specification for reduced energy consumption systems using ‘BASQ’, the Barratt and emissions. Supply chain carbon emissions Assessment of Supplier Quality, to help us Timber sourcing pro-actively identify issues with production Other measures have included revising our Develop a plan to establish a 2020 reduction Extending our FSC or PEFC credentials to all capacity, quality, safety, environmental and specifications for forklifts and telehandlers to target for suppliers and sub-contractors. locally sourced timber by the end of 2017. labour standards. improve safety and reduce fuel consumption, as well as eliminating the need for Adblue Bronze-level membership Building knowledge We are committed to operating within the onsite and reducing the ground contamination All Group construction materials suppliers guidelines of the Prompt Payment Code and Ensure that our procurement and risks associated with its storage. to achieve this level of SCSS membership commercial teams have access to online in the past year have reviewed the standard by end of 2017. payment dates for our suppliers and continued Waste minimisation: We relaunched the learning resources on sustainability topics, to monitor our payment performance. waste paint can recycling scheme with the Sub-contractor sustainability e.g. waste reduction, sustainable sourcing Dulux Decorating Centre and recycling and Modern Slavery. Ethical labour standards in our supply chain company Veolia, which recycles both the paint Top 20 by turnover to be members of the SCSS by end of 2017. Driven by the Modern Slavery Act 2015, we residues and the containers. Free pick-up of have undertaken risk assessments within the containers from Dulux is used by six of our materials, IT and labour supply chain, our divisions, and we will monitor the uptake including temporary and agency staff. every quarter. Letters have been issued to inform our supply Biodiversity and habitats: Establishing the chain partners of the requirements and our source and sustainability credentials of loose expectations, including contract revisions, timbers and fencing materials purchased and our response to the Act will be set out remains a challenge. We have been working 100% 54% in a public statement on our PLC website. with our sub-contractors on this issue, and In partnership with the Supply Chain we are looking to assess the desirability of a Sustainability School we supported the Group-wide agreement to control both costs Group procured timber construction materials special interest group for Modern Slavery. and responsible sourcing credentials. Free learning resources are available to all is PEFC or FSC approved responsibly sourced to of our suppliers and sub-contractors who BES 6001 are members of the school.

27 Barratt Developments PLC – Sustainability report 2016 Investing in innovation and development To improve performance through innovation and development across all aspects of our business and for our customers and stakeholders.

Rob Hutchings Construction Director, North Midlands division. Supported construction trials of large format block technology. 28 Investing in innovation and development continued

Why this matters most Our approach Our focus areas We need to increase build efficiency, whilst Innovating to meet the demand for homes Collaboration and strategic partnerships Leading Construction is one of our core Sometimes our suppliers require financial maintaining safety and quality standards, priorities. We need to deliver the highest and advisory support to make sure they can and respond to skills shortages. Limiting the quality homes by focusing on all aspects of meet our quality and quantity requirements. building, and embracing the best new methods By forming strategic partnerships with environmental impact and quantity of raw of on and offsite construction methods. suppliers, we support certainty of supply, materials we use is also imperative. Getting construction ‘Right First Time’ is create jobs and support skills development. our main focus. By improving construction We lead the sector by using our innovative processes, we aim to minimise delays, utilise sandpit techniques to bring suppliers together skills more effectively and ensure efficient use to help us discuss challenges for our sector and solve specific construction issues. Targets and performance overview of resources, such as energy, raw materials and water. Trials of offsite construction methods have continued to progress, Design technology and timber frame construction has been rolled out across Trialling new build and customer technologies BIM is used to create 3D computer generated the Company for use on suitable sites. Alongside these trials, is a time consuming process, requiring plans of buildings. It will revolutionise the we are investigating use of Building Information Modelling (BIM) sizeable investment, but it’s vital to our long way we communicate with our internal and and we successfully trialled smart thermostats for home users. term success. The National House Building external stakeholders, including customers. Council have been involved in all our trials, ensuring that all quality and customer Helping customers take control using concerns are addressed. smart technology Our targets Our performance We must continue to anticipate the changing Affordable running costs are a major benefit needs of our customers through customer of buying a new home. Smart technologies research, and by responding to technology have the potential to show customers how >>By 2020: Build 20% of units using >>15% of units built using offsite changes, in order to help them live more 40 much energy they are using, in real-time, offsite construction techniques against technologies. sustainably. Bringing in innovative design encouraging people to switch off appliances 2014 baseline. >>Over 100 innovative build techniques to speed up the design process and and devices when not in use. We have systems assessed. improve communications between partners interviewed six suppliers and have already will be key. >>20 new suppliers engaged via trialled the Nest and Hive devices. an innovation sandpit.

40 Restated against 2014 baseline.

29 Barratt Developments PLC – Sustainability report 2016 Investing in innovation and development continued

Offsite Build Techniques: A key area of research in housebuilding, offsite build techniques have the potential to bring the efficiencies inherent in factory production to the construction site. Some of the main technologies we are exploring include:

Timber frame construction Light gauge steel frame construction • Increases our build speed. • Panelised system which allows for less • Requires less energy to transport or refine connections improving efficiencies and than masonry products. quality of the superstructure. • Trees remove carbon from the atmosphere • Made from recycled metals. during growth. • Is used in many other countries such as Germany, Canada and the United States. Case study completed, fully roofed with doors and windows in just four weeks. Light gauge steel frame trial During the trial, we improved our ability to We have been trialling an insulated Light use this technology. We learned to circulate Gauge Steel Frame system, manufactured drawings to plumbers, electricians and by the Northampton based Fusion carpenters as early as possible, to pre-cut Building Systems. holes for gas pipes, and leave a tolerance Considerably lighter, safer and quicker to put space either side of door openings. together compared to traditional block and Following the successful trial, the frames brick build, the steel frames are also made will soon be tested on a greater scale in Prefabricated utility cupboards Large format block construction from recycled steel, and because the parts 50 homes at a site near Northampton. • Pre-installed features such as boilers, • Larger blocks reduce joints and time are made offsite, superstructure waste is storage tanks, underfloor heating or spent on site. considerably reduced. To view a timelapse of the light gauge steel smart controls. frame build at Swanbourne, click here. • The supplier finalises the whole The trial at Swanbourne Park near Worthing • 50% improved installation time, making superstructure including walls, included nine houses. All units were better use of skilled tradespeople and floors and roof. increasing overall build speed. • Every utility cupboard is the same as it is Above: A house is constructed using a light gauge steel built in a controlled factory environment. frame at our Swanbourne trial near Worthing.

30 Barratt Developments PLC – Sustainability report 2016 Investing in innovation and development continued

Our performance Reviewing offsite technologies has enabled smaller suppliers to partner up with larger Our focus for the future We have invested over £1m in innovative organisations. Metechno is one example: their Continue to roll out timber construction methods over the last year, pre-fabricated utility cupboard factory and idea and we’re steadily progressing towards our was purchased by SIG plc. Metechno delivered frame construction 2020 goal. 115 units to our Enderby Wharf site, creating Upskill our technical and construction Working with Barratt on their Large format blocks, which help build 15 jobs in the process. teams with our timber frame guidebook and speed, were trialled on 21 homes at Wickets, support our local timber frame champions. successful trials of light gauge Bottesford and we are assessing new Design technology steel frame structures was a foundation systems. We found that roof We have designed our 2016 Barratt house Embed a ‘Right First Time’ ethos cassettes increase build speed, efficiency range in Revit software as the first step Improve efficiency and sustainability in all learning curve for staff in both and reduce waste. Trials on modular roofs to Building Information Modelling (BIM), construction and technical processes. were discontinued as they did not deliver the which will be live across the Group in 2017. our companies. Barratt has efficiencies originally envisaged and were not BIM allows architects and engineers to make Expand trials logistically viable for many of our current sites. clearly shown its intent as a decisions more collaboratively and efficiently. Trial light gauge steel frame construction large housebuilder to assess Collaboration and strategic partnerships to 50 homes near Northampton and large Smart Technologies format blocking to a site near Banbury offsite systems to ensure Twenty suppliers came to our Innovation Our trials of both Nest and Hive smart in Oxfordshire. Sandpit workshop in September 2015 to explore thermostats have been well received by they are prepared for the opportunities to collaborate. Topics included customers. We learnt they require good Annual Innovation Sandpit improving the implementation of foundation future. This sends a positive internet connectivity to support mobile Bring the event to a greater number of systems, effective roofing, and mechanical and applications. Customers see this technology suppliers and continue to seek strategic electrical solutions for roll out. We are further message to the sector and as a value adding option and support after partnerships where they further our goals. reviewing and trialling five of these systems installation is essential. We will extend this its suppliers from one of the in 2017. leading housebuilders. as a customer option in West Midlands, Smart energy systems Southampton, West Yorkshire, and if Increase roll out to a greater number successful, to the wider Group. of homes.

Mike Fairey Legally completed units delivered using offsite construction technologies (number) 2015 2016 Director, Fusion Building Systems Timber frames 919 988

Roof cassettes 1,117 1,109 Prefabricated Utility Cupboards 25 90 Modular roofs 6 NA Large Format Block 0 10

Light Gauge Steel Frame 0 9 Total 2,057 (14% of 2014 LCU) 2,206 (15% of 2014 LCU)

31 Barratt Developments PLC – Sustainability report 2016 Building excellence vision

Our priorities

Customer Great Leading Investing in first places construction our people

Our principles

Building strong Ensuring the Keeping Being a trusted Safeguarding the community financial health people safe partner environment relationships of our business

Delivering sustainable shareholder value

We will tackle our most important sustainability issues by driving Focusing on our vision, priorities and principles means that we act progress across our four Business Excellence priority areas, each sustainably and responsibly: delivering value across the supply chain, of which has an action plan for the short and long term. In doing so, creating sustainable returns for shareholders, providing customers we’ll make quick improvements and far-reaching changes that define with a first-class experience, and making a positive difference in the our roadmap to 2020. Our four priorities are underpinned by five core communities where we operate. principles, which we apply at all times and in everything that we do.

32 Barratt Developments PLC – Sustainability report 2016 Registered office Barratt Developments PLC Barratt House Cartwright Way Forest Business Park Bardon Hill, Coalville Leicestershire LE67 1UF Tel: 01530 278 278 Fax: 01530 278 279

Corporate office Barratt Developments PLC Kent House 1st Floor 14-17 Market Place London W1W 8AJ Tel: 020 7299 4888 Fax: 020 7299 4851

We welcome comments and feedback on our reporting. You can contact us here or at [email protected] www.barrattdevelopments.co.uk