planning for a sustainable future

Sustainability R eport 2014 01

Welcome to our 2014 Sustainability Report

what we do seeing

arratt Developments PLC In 2014, including joint ventures, We operate in established housing is one of the nation’s largest we completed 14,838 homes, an markets as well as developing the BIG B housebuilders operating increase of 8.6% on 2013, and directly pioneering regeneration schemes. throughout Britain. employed 5,755 people. Our financial performance is set out in our 2014 Our customers include first-time Our principal activities comprise Annual Report and Accounts. buyers, families, investors and acquiring developable land, obtaining housing associations. We build more mark clare planning consents, building high During the year, our housebuilding homes for housing associations than picture group chief executive quality homes and desirable places business mainly traded under the any other housebuilder. Our local to live. Our core activities are Barratt Homes, Barratt London and teams strive for the highest standards supported by expertise in design, David Wilson Homes brands, operating of customer satisfaction by delivering procurement, land and partnerships. from 27 divisional offices1, building outstanding service and build quality. homes from Inverness to Plymouth. Reviewing our achievements and looking Developments is our commercial development business. ahead to future challenges and opportunities.

contents n this, our 11th year of ..Understanding and communicating In addition to delivering quality homes, reporting2, we have made more effectively the socio-economic we will review and renew our approach Group Chief Executive’s The marketplace 2015 performance targets 34 I a number of significant contribution we make both nationally to driving social and environmental introduction 01 and our customers 08 commitments, and have been working and to local communities. performance improvements in our 2014 performance data 36 on new long-term sustainable business own business, while influencing the Our socio-economic footprint 02 The places we create 12 principles that will help us to play our Our continued focus on sustainability, sustainability of the wider sector. Assurance statement 37 part in responding to the UK housing and the efforts of our people in Developing our approach The homes we build 20 challenge. These commitments include: delivering great places for our We will be seeking to validate our to sustainability 04 ..Recruiting 1,100 new apprentices, customers to live while enhancing assessment of the issues that The way we work 26 graduates and trainees over the the communities where we build, matter most to our stakeholders in next three years are reflected in this report. We 2015. This will help us to focus our ..Requiring that all new developments have been engaging internal and strategy and reporting in future years. will meet the Building for Life external stakeholders to begin to We’d like to invite you to tell us if we Partnership ‘Built for Life’ understand more about the social and are addressing the right issues. commendation environmental issues that matter most ..Partnering with Europe’s largest to them, and where we can make the A feedback form can be found at conservation charity, the RSPB, maximum contribution. This report www.barrattdevelopments.co.uk/ to ensure that our approach to reflects that feedback and has helped barratt/en/sustainability/sustainability- landscape management, ecology us to begin to develop longer-term feedback and biodiversity is best practice sustainable business goals. Mark Clare, Group Chief Executive September 2014

1 In 2014, a new division in London was created (Aldgate), and the Barratt East Scotland office 2 This report relates to the full scope of our operations for the period 1 July 2013 to 30 June 2014 (referred to in this report as was divided to form a new division named Barratt North Scotland (Aberdeen). 2014). All normalised data in this report is based on legally completed units, including joint ventures, unless otherwise stated. PLC Sustainability Report 2014

The big picture The UK housing sector is facing sustainability challenges given the growing national housing shortage and the need to build more and better homes. To meet accelerating demand, the industry must focus on key operating challenges including constraints on land, skills and materials. At the same time, the industry must continue to focus on creating more sustainable places to live with higher quality, energy-efficient homes for customers.

For more on how we are identifying the sustainability The Chocolate Works, York: Built for Life commended DELIVERING A issues that matter to Barratt, see page 5. regeneration of former Terry’s Chocolate factory site. FOR SUSTAINABLE FUTURE HOUSEBUILDING...

...means responding to ...creating more ...building high-quality, ...while focusing on safety, THE NEEDS OF the market... sustainable places to live... low-carbon homes... talent and resource efficiency

The needs of customers will be met by the People want to live in attractive developments, The sector must embrace sustainability at Creating the workforce of tomorrow requires provision of a greater supply of quality homes which will enhance existing settlements. every stage of development, from design to a sector-wide investment in people and skills. that suit their diverse needs and aspirations. Developments need to link to and enhance occupation, working with the supply chain to Prioritising the health and safety of every That means a range of ownership options, surrounding ecology and biodiversity. Communities source products and materials sustainably employee, customer and member of the public, supported by adequate mortgage finance need to have confidence that developers are and responsibly, driving innovation to support whilst operating efficiently, reducing waste and and excellent customer experience. contributing positively to the local area. high quality, low-carbon living. energy use.

Our foundations: Our foundations: Our foundations: Our foundations: increase in nhbc pride in graduates, 30% homes built £1.19bn 90 the job awards 210 trainees and over three years invested in new land for site managers apprentices recruited

..Housing completions at highest level for six years ..63% of legally completed units built on brownfield land ..5,544 homes built to Code for Sustainable Homes ..Employee engagement score 78% ..2,255 affordable homes ..Biodiversity Action Plans on all new developments Level 3 or above ..96.12% compliance with our SHE performance criteria ..Only major housebuilder to achieve five years of90% ..All new developments designed to Building for ..1,100 homes connected to low-carbon heat networks ..94% of our and office waste recycled. customer satisfaction. Life 12 standards. ..AIMC4 research completed into low-carbon homes and supply chain management.

Our aspirations: Our aspirations: Our aspirations: Our aspirations:

..Maintain HBF 5 Star Housebuilder status: ..Public and private sector landowner partner of choice ..Work with our suppliers to achieve our ..Continuous improvement in our industry-leading Eight week customer survey: Recommendation ..Increase legally completed units on strategic land sustainability goals health and safety performance >90%; Net Promoter Score >50%. towards 20% by 2020 ..100% compliance with supplier Construction ..Maintain leading employee engagement performance ..Work to create a net positive ecological impact Prompt Payment Charter ..Recruit 1,100 graduates, trainees and apprentices across our development portfolio. ..Set long-term goals for low-carbon, over the next three years. resource-efficient house design and build in 2015.

Discover more about the marketplace and Discover more about the places we create on page 12 Discover more about the homes we build on page 20 Discover more about WAY WE WORK on page 26 our customers on page 8 Barratt Developments PLC Sustainability Report 2014 02 OUR SOCIo-ECONOMIC FOOTPRINT 03

The economic assessment was carried out The infographic below provides an on our behalf by independent consultants, Nathaniel Lichfield & Partners (NLP). NLP illustration of our socio-economic analysed the economic impacts through the whole delivery chain for new housing, drawing footprint for the financial year 2014. on Barratt datasets, published research and national statistics.

lthough we regularly assess contributions. We believe this employed 5,755 people last the economic benefits of helps demonstrate the contribution year, but once subcontractors, our socio-economic A our individual developments our business makes to the UK’s suppliers and wider spin-off as part of the planning process, this economy and the communities employment is taken into account, is only the second year we have in which we operate. we supported 52,000 jobs. carried out this type of analysis for the This is an average of 3.5 jobs for whole of our operations. This year, The analysis estimates that the every house we build. We estimate we are also presenting the social economic output and jobs our business helped generate footprint and environmental impacts of our supported by our construction at least £490m of tax last year, operations, alongside the economic activity is very significant. Barratt supporting public finances. Barratt Developments PLC 04 Sustainability Report 2014 05 REMUNERATION LINKED TO SUSTAINABILITY delivering the UK’s housing needs. We scored 81% in 2013 The annual incentive targets for members of the Executive (72% in 2012) in the FTSE4Good Index. We continue to DEVELOPING OUR APPROACH TO Committee and other members of senior management participate in the NextGeneration benchmark, increasing include sustainability targets related to customer service, our score to 70% in 2013 (61% in 2012). We have submitted employee engagement, health and safety. There is a our first response to the Carbon Disclosure Project focus on climate change, addressing such issues as to demonstrate how we are addressing the risks and managing flood risk and environmental sustainability of opportunities presented to us by climate change. land purchases before and after planning. Our Executive Committee, land teams and management are also BUILDING FOR LIFE SUSTAINABILITY incentivised to deliver the best land. We champion the development of well-designed, functional and sustainable places to live. Accordingly we have MANAGEMENT SYSTEMS aligned our own design standard, Great Places, with Why sustainability How we manage Operationally, all divisions within the Group continue to the Government-endorsed Building for Life 12 industry maintain integrated safety, health and environmental standard, for new housing developments. We have counts at Barratt sustainability (SHE) management systems externally certified to committed to all our new land acquisitions being designed OHSAS 18001 and ISO 14001. A dedicated team of to the Built for Life commendation from January 2014. SHE Managers, reporting to the SHE Director, audit To see how our commitment to creating great places Our vision is to lead the The Board has overall compliance to these standards on a regular basis. We is already being recognised, see page 16. have appointed a dedicated Board Committee to assist future of housebuilding by responsibility for our the Board’s stewardship of our safety performance. FUTURE-PROOFING putting customers at the sustainability strategy, with We recognise that the housebuilding sector is SUSTAINABILITY DATA experiencing significant challenges in a rapidly changing heart of everything we do. delivery delegated to the We have specific key performance indicators (KPIs) to marketplace. To maintain our position as a leading Executive Committee to assess progress against each of our sustainability targets. UK housebuilder, we have to understand these Our Internal Audit team review the robustness of the KPIs challenges and respond effectively. This year, alongside ensure it is embedded into within their standard divisional audits. We are the only the review of our future business strategy, we have been Our priorities Our principles leading housebuilder to have our Sustainability Report engaging with stakeholders to improve our understanding the business. (including data) externally assured. of what matters most. We have also started developing Customer first Keeping people our thinking on long-term sustainable business goals, safe SUSTAINABILITY BENCHMARKS which will be core to achieving our vision; these More detail on our governance Our performance in external indices is a valuable aspirations are set out in each section. Further work is Being a trusted measure of how we are addressing ever more complex underway to define a full set of longer term aspirations. Great places partner structures is available on our and interconnected sustainability issues, to contribute to Our 2015 performance targets are on page 34. website. Delivering Building strong community sustainable relationships shareholder Building excellence value What matters most Safeguarding the environment Housebuilding requires long-term investment, so we This year, we have assessed the most important constantly engage with a diverse array of stakeholders sustainability issues for our business. These are the issues Investing in GOVERNANCE ARRANGEMENTS our people Ensuring the and commission research and insight studies to help us that matter most to our key stakeholder groups and those Details of our corporate governance structure, financial health address the wider social, economic and environmental where we believe we can make the most difference. of our business of which sustainability is a part, are contained in impacts of the business. our Annual Report and Accounts. In turn, we set out More detail on how we engage with our the specific governance arrangements related to our stakeholders is available on our website. Sustainability Programme on our corporate website.

Sustainability underpins the delivery of our vision. RISKS AND OPPORTUNITIES OUR STAKEHOLDERS It is how we maximise long-term value for society Significant risks (including social and in terms of our economic performance and environmental) that could impact on the future Who did we speak to? Who will we test this with in 2015? the positive social and environmental impacts of the business are reviewed and form part of the ..18 managing directors and regional ..Our 250 most senior employees of our operations. principal risks and uncertainties disclosed in our managing directors ..Public and private landowners Annual Report and Accounts. Our approach to ..22 graduates ..Local authorities To embed sustainability throughout Barratt, managing key sustainability risks and opportunities ..81 materials suppliers under group ..Trade associations we will focus on the issues that matter to is detailed on our corporate website. purchasing agreements (55%) ..Mortgage providers our customers, shareholders, employees and ..30 customers (four workshops in Bristol ..Housing associations other key stakeholders, while setting long- and Nottingham) ..Suppliers term goals that define an ambitious future road ..8 graduates and 11 senior managers ..NGOs. map. We are committed to integrating our participated in the development of our vision, sustainability principles into the way we work, priorities and principles as set out in our Sustainability Policy. ..Joint Venture Partners: L&Q, ..Sustainability Index: NextGeneration We will use these business priorities and Further information ..Ecology NGO: RSPB principles to communicate progress to our This icon indicates that further information is available ..Public Land Owner: HCA. employees via our internal communications on our website. This 2014 Sustainability Report We have included direct feedback from a range of stakeholders within this report, tools such as our intranet, team meetings is also available to download from our website; and always welcome further views from all stakeholders on our approach to sustainability. and Foundations magazine. www.barrattdevelopments.co.uk/barratt/en/sustainability Barratt Developments PLC Sustainability Report 2014 06 DEVELOPING OUR APPROACH TO SUSTAINABILITY 07

Through the research and insight work we have completed with we have developed an initial set of 12 sustainability issues, which we customers, thought leaders and research bodies, our external and explore below. We’ve grouped the issues to reflect how we respond to internal benchmark studies, and our work with trade associations, them, and this structure has shaped the following sections of this report.

THE THE HOMES WE MARKETPLACE AND OUR Efficient and Supply chain Investing CUSTOMERS BUILD 7 low-carbon 8 capacity and 9 in product Customer Affordability homes sustainable innovation and experience and and access to Page 20 sourcing development 1 engagement 2 home ownership Page 22 Page 25 Page 08 Page 10

Saving customers Building capacity and Creating smart homes Engaging and understanding Creating homes to meet money and reducing their sourcing responsibly that harness innovative our customers to help us our customers’ needs, environmental impacts, throughout the supply products, materials and shape and deliver great working with partners by creating quality homes chain, based on strong, construction methods, places to live, and homes to improve accessibility that use energy and transparent relationships. to sustain truly connected that meet customers’ to home ownership water efficiently. communities where aspirations and lifestyles. and helping customers customers want to live. access the right mortgage products for them.

This is the first step in shaping an early framework of sustainability priorities. It has helped inform the business principles that underpin the delivery of our vision and priorities. In 2015, we will be refining our view of the sustainability issues that matter most to us and our key stakeholders. We will use this to help us further define our goals and our THE PLACES approach to sustainability in the longer term. WE THE CREATE WAY WE

Securing a Stronger Sustainable Biodiversity Keeping Inspiring, Operating supply of land communities places to live and natural WORK people safe attracting and efficiency 3 Page 12 4 Page 14 5 Page 16 6 habitats 10 Page 26 11 growing talent 12 Page 32 Page 18 Page 28

Working collaboratively Fully engaging with local Designing, developing and Valuing nature, by seeking Putting the health and Addressing the sector’s Using resources efficiently, to secure the best land in communities to understand delivering attractive, safe, to protect and enhance safety of employees, skills and diversity gap reducing waste, carbon the most desirable locations and respond to their needs, functional and sustainable habitats and biodiversity contractors, customers by investing in training and water in our by building long-term while working together to places for people to live, in our developments. and the general public and skills development, construction processes. partnerships, meeting create great places to live. with consideration for first, by committing to the creating jobs, and directly planning requirements transport links, landscape highest industry standards. and indirectly supporting effectively, and addressing and water management. local economies. the needs of a growing, changing population. Barratt Developments PLC 08 Sustainability Report 2014 09 case study THE Homeowners are at the heart of Helping customers embrace sustainable living everything we do. We engage We held focus groups with As a result of the findings, we We will be reviewing how WELCOME TO YOUR NEW HOME – customers to help us design the homes potential customers in the developed new information successful these materials are A GUIDE TO HELP YOU LIVE MARKETPLACE we build and the places we develop. Midlands and South West, materials that: through the responses we receive MORE SUSTAINABLY to better understand their ..Help educate customers in our NHBC customer surveys. AND OUR We seek to provide them with views on sustainability. about the sustainable features As part of our work with the outstanding service and value, while of our homes RSPB, we developed a sustainable Unsurprisingly, we found that they ..Explain how we build lifestyle guide to give customers working with mortgage providers to are looking to access the benefits sustainable homes, including a range of practical options CUSTOMERS improve buyers' access to finance. of sustainable living, including waste management and the to live more efficiently, including more open spaces and natural responsible sourcing of timber reducing energy and water light, and reduce costs by being ..Outline our approach to consumption and creating more energy-efficient. landscaping, and the design wildlife-friendly gardens. of open green spaces within our developments. For more on how we are working with the RSPB see barratthomes.co.uk

the case study on page 19. STUDIO:Barratt:2014:Barratt_Group:10914157_Barratt_Sustainability_Leaflet:_BARRATT:10914157_Barratt_Sustainability_Leaflet_1.5 10914157_Barratt_Sustainability_Leaflet_1.5 bcharter 297x210mm PMS 3mm PMS No. of pages 8 PMS VISUAL Sustainable27 June 2014 12:10 PM livingPMS guide for customers

Improving customer service Increasing customer insight In 2014, we were delighted to be awarded the maximum During the year, we conducted a range of customer insight HBF 5 Star Housebuilder status for the fifth year running. initiatives into the perception of our brands, attitudes towards sustainability, and awareness of the sustainable Laura and James Harvey, recent buyers in To build on this success, we have put in place a range of features of our homes. Peasedown Meadows (David Wilson South West). initiatives that further improve the quality of the products and services customers receive after they have moved in. The findings informed our 2014 rebranding of Barratt These include: London and Barratt Homes, and three brand focus points ..Weekly customer satisfaction survey reporting that better reflect customer expectations: the build quality Customer and a senior management review of our homes and developments; thoughtful design; Our aim is to continuously improve ..A review of quality control procedures, including and great customer service. The insight also inspired a the homes and places we build, roll-out of tablet computers to support site managers new suite of marketing materials (see case study above). experience and providing a customer experience ..Training of 350 frontline staff in first-class customer service ..Divisional Director sign-off for each home, along with a Utilising technology that exceeds expectations and customer welcome card and email explaining how to We made a significant investment in developing the anticipates their evolving needs, raise queries. technology we use for looking after customers during engagement the sales process. We refreshed our customer aspirations and lifestyles. Responsible selling enquiries software, which has helped us respond to This year, we have accredited all 750+ of our Sales 94% of enquiries within five hours of receipt. Managers and Sales Advisers with the nationally We are harnessing TARGETS UPDATE HIGHLIGHTS AWARDS recognised Single Sales Principle (SSP) qualification. Over the coming months, we will further enhance the customer insight at every It is the first national programme designed for Sales use of tablet computers, with upgraded software that stage of development – ..Only national housebuilder ..Launched new Barratt London ..In the London Evening Advisers selling new homes, and is endorsed by the helps customers better understand the layout of our from land purchase through to gain HBF 5 Stars, and Barratt Homes brands. Standard New Homes Institute of Sales and Marketing Management. developments and the features of our homes. to energy-efficient design five years running Awards 2014, Trumpington and build. We're supporting ..New customer guides on our aspirations Meadows, Cambridge, won and guiding them both sustainable homes and Best Large Development during and after sale, sustainable living .. (HBF) ..Barratt Residential showing them how to ..Barratt Residential Asset eight week customer survey, Asset Management cut running costs and Management (BRAM) 5 Star status: (Barratt London) won the HBF 5 Star 2014 live more sustainably. across 18 existing sites and – Recommendation >90% Best Customer Satisfaction Housebuilder all new London openings – Net Promoter Score >50%. Initiative at the 2013 status for five (see case study, page 10) Housebuilder Awards years running ..Customer research drives ..Commended for customer 2013 2010 designs and extras ranges. service in the Homes for Scotland Awards 2014 ..Glass Mill Leisure Centre, Renaissance, Lewisham, won the London Planning Awards Best Built Project – 2012 2011 Community Scale Scheme. Trumpington Meadows, Cambridge Barratt Developments PLC Sustainability Report 2014 10 THE MARKETplace AND OUR CUSTOMERS 11 “ in our experience barratt has good case study social responsibility credentials, Giving customers long-term value 2,255 and it is encouraging to see them open up the sector debate on the bigger sustainability issues, like housing shortage, affordability and Barratt Residential Asset BRAM at a glance: access to land, and climate change. This will help sustain future profit affordable Management (BRAM) is a ..Manages over 5,000 properties margins for their shareholders.” not-for-profit management across 18 sites in London homes Jerome Geoghegan, Group Director of Development and Sales, L&Q company that exclusively ..Maintains communal areas, 1 maintains our London including landscaping, lifts completed developments. It gives and boilers case study customers who buy a Barratt ..A not-for-profit company that London home the assurance ensures the management fees Speeding up housing supply that the original developer we charge are competitive, Barratt Chairman Bob Lawson, opening a will be around to take care while reflecting high service Barratt Homes Northampton and Places and land for a new primary school, as part of new JV development with Places for People of their home’s surroundings, standards for People (the UK’s largest not-for-profit its commitment to creating sustainable places at Brooklands, Milton Keynes. long after they have ..Details how we spend the , development and to live. Paradigm Housing Group, the preferred settled in. service charge, which is regeneration company providing social housing association, will purchase the 518 independently audited and housing) have teamed up to bring over affordable homes, consisting of both rental and BRAM ensures that our held in trust in a dedicated 2,000 new homes to Brooklands, Milton intermediate tenure, including shared ownership, developments are presented to bank account Keynes. Construction under the joint low-cost housing and reduced-cost housing. a high standard at all times, and ..Inspects developments at least venture started in May 2014, with Barratt keeps our customers up to date once per month to anticipate providing construction, development, “At a time when new housing is desperately with the latest information about issues, addressing them accountancy and sales services. needed, our partnership with Barratt their development. before they become problems. will enable us to build new homes and Brooklands is different to many housing community facilities at a much faster developments as it offers a variety of settings pace. Working together, we will be able that encourage people to mix and integrate. to develop the site more quickly than The BREEAM 'Excellent' rated Glass Mill Leisure Centre and apartment Places for People is providing a significant would otherwise have been possible.” block was commended by judges for its transformational impact on the wider area, benefits to the local community, design and ingenuity. Glass Mill Leisure Centre, amount of open space, community facilities David Cowans, Chief Executive of Places for People managed by BRAM

Affordability of homes We believe this measure supports a sustainable market; We build more affordable homes than any other the challenge is to ensure that our customers are housebuilder. This year, 15% or 2,255 of our completions supported through an unfamiliar mortgage process. Affordability and access were affordable homes (2013: 2,268). We continue to engage We have liaised with lenders and independent mortgage with our housing association partners at local, regional brokers to better understand their processes and and national levels, and we have applied to the 2015-2018 requirements and to communicate these to our customers. Homes and Communities Agency Affordable Homes to home ownership Programme to increase our supply of affordable homes. We also want our customers to have access to the widest possible variety of mortgages. So, during the Affordability of mortgages year, we launched a range of exclusive products in We continue to create homes that meet a range of While customers now have better access to mortgage association with Leeds Building Society. These mortgages customer needs, working with partners to improve finance, the implementation of the Mortgage Market are innovative, with some allowing an initial interest-free access to home ownership and to facilitate a wider Review in April 2014 has shifted attention to long-term period of three or six months. The range also includes affordability, with a greater onus on lenders to ensure the first 10-year fixed rate mortgage. range of appropriate mortgage products. that customers can continue to afford repayments, should interest rates rise.

Our innovative partnership arrangements, HIGHLIGHTS AWARDS like our joint venture with Places for People What matters most (see case study opposite), are helping to ..2,255 affordable In the First Time Buyer increase the supply of new homes, and are homes completed1 Readers Awards' 2014, Our customers want a range Therefore, we target our offering fresh ownership models for our Launched the first 10-year won For customer .. Hanham Hall, Bristol, of quality homes to suit their customer-focused initiatives on: customers. For example, our Trenchard House fixed rate Help to Buy Mortgage, Best Large Development. needs and aspirations – homes ..Responding to customer needs development in Soho, London, is providing with Leeds Building Society experience, that are affordable, with a ..Championing customer satisfaction reserved occupation housing, and 65 out of £237.5m affordable housing .. affordability and range of ownership options, ..Empowering customer 78 homes will be affordable. contributions through low running costs, and a sustainability aspirations Section 106 agreements.2 accessibility great customer experience. ..Increasing accessibility of home ownership with a diverse portfolio.

1 56 affordable homes were completed with our Joint Venture partners. 2 Excludes Joint Ventures. Barratt Developments PLC 12 Sustainability Report 2014 13 Identifying and securing land Private sector partnerships The places we create require a secure In the last 18 months we have increased our rate of sales Over recent years we have focused on building strong THE and sustainable supply of land, and are and are now completing the development of our sites more relationships with private sector landowners, operators quickly. We therefore need to accelerate the acquisition of and agents. This year, we really started to see the fruits developed with the involvement of their new sites. of this work, especially through our collaborations with surrounding communities. They are Sainsbury’s at Fulham Riverside, with British Land at PLACES To achieve this, we will reduce our reliance on land Aldgate, and with Peel Holdings in the North West. designed and delivered to the highest bought on the open market and increase the proportion WE technical standards, complementing of land we buy off-market, capitalising on good research Some 8,291 homes will be built through our current their surroundings, enhancing habitats and our excellent local relationships across the country. 12 active Joint Venture schemes. We started new schemes with Morgan Stanley in Greenwich, and boosting biodiversity. They are our Unlocking strategic land Metropolitan Housing in West Hendon, and Wates in CREATE sustainable legacy. We are committed to increasing the proportion of our Lindfield, West Sussex. units built on sites that lack planning permission when we acquire them. These strategic land sites help us achieve a Public sector partnerships longer-term supply of building land – our key raw material. Our long-term partnerships with the public sector help It also means, as the long-term developer responsible for us to deliver our sustainability ambitions, and are proof achieving planning and building out the site, we have more of the real value in working together to find solutions to control and vested interest in creating high-quality homes unlocking challenging sites. and developments that work for local communities and future customers. This year, 3,928 (some 28%) of our housing completions were developed on public land. We have 3,913 plots Approximately 30% of our bank of strategic land will approved for purchase, representing a development become available for development in the next three years value of £226.7m. to help address local authority land supply shortages, while 42% is allocated to emerging or adopted plans. We maintain national and regional representation with the Homes and Communities Agency (HCA), the Improving our processes Department for Communities and Local Government We continuously monitor our performance on land and (DCLG) and the Home Builders Federation (HBF). planning applications to help us refine our processes We are an active member of the HCA’s Delivery Partner and become more efficient. Panel 2, which supports the Government’s ambition to deliver up to 100,000 homes through the disposal of We commissioned the Smith Institute to research surplus public sites. In addition, our Chief Executive, best practice in the planning system and we will be Mark Clare, is a member of the Lyons Commission integrating recommendations from their resultant report, looking at possible solutions to the housing crisis. Housing and Planning: What Makes the Difference?

Sustainable drainage We assess each development we buy for flood risk. “ THE APPROACH TO We then reduce any risk even further through our design processes. These are in line with the highest industry SUSTAINABILITY IN BIDS standards, and are pre-approved by the relevant local Securing authority and, where necessary, the Environment Agency. IS WHAT DIFFERENTIATES As required, soakaways and permeable paving are BARRATT FROM OTHERS, installed to mitigate rainfall run-off into watercourses. a supply and in the end this is what will win, 62% of our developments incorporated Sustainable Drainage Systems (SuDS) to reduce the risk of flooding and when price and quality are very similar.” the impact of our developments on local drainage networks. ABDUL RAVAT, HCA AREA MANAGER, LEEDS CITY REGION AND NORTH YORKSHIRE of land The Fairways at Westford Village, which has three new schools, a crèche, library and a 200-acre country park. case study As well as access to Meeting public sector sustainable development principles land, responding to Master plan of Cherry Knowle the UK housing crisis TARGETS UPDATE HIGHLIGHTS We have particular expertise in securing of key principles. Our vision for a “thriving Hospital development, Sunderland. requires an effective, land in competitions run under OJEU coastal village embracing its unique landscape ..10 more divisions use improved ..62% of developments with procurement rules, which require setting” led to dividing the site into unique responsive process local authority engagement Sustainable Drainage Systems public landowners to impose specific character areas with distinctive design to planning, and the ..28% of completions on public ..14% of legally completed requirements (such as design standards) and landscaping approaches within the site land (3,928 homes). units built on strategic land on developers. design principles. further enhancement ..Average end-to-end planning of our reputation as a timescale 70 weeks. We have consistently achieved a success This year, we have observed a trend towards trusted partner. rate of more than 50% under this route. This the public sector releasing more complex sites our aspirations includes the 770-home site to be developed to market, including greenfield strategic sites, on the former Cherry Knowle Hospital site in where the technical and ecological challenges ..Increase legally completed Sunderland. To support the HCA’s ambitions are often significant. Our strong sustainable units built on strategic land for the site, we ensured that our proposals development capability gives us a competitive towards 20% by 2020. were developed in accordance with a set advantage for securing these opportunities. Barratt Developments PLC Sustainability Report 2014 14 THE PLACES WE CREATE 15 THIS YEAR WE CONTRIBUTED 46% £219,491 OF DEVELOPMENTS held to charitable causes PUBLIC CONSULTATIONS

case study Consultation secures community benefit

Our Castlewell development Community Council and former Future employment opportunities at Ellon, Aberdeenshire, councillors. This engagement will be generated from ongoing demonstrated the value informed the design of the 247 garden restoration and will of directly involving high-quality new homes being be supported by income streams Stronger the community from the built on the site. It also identified derived from Ellon Castle earliest stages. the opportunity for us to invest in admission fees, memberships, a conservation programme that and the Castle Gardens Trust. communities We worked with a steering group will secure a lasting legacy by of local representatives, including creating jobs for gardeners, the Friends of Ellon group, the stonemasons and apprentices. To help build stronger Castlewell, Ellon communities, we must fully engage to understand and respond to their needs. Community involvement As part of our commitment to improve the image of We must work together, and charitable giving housebuilding amongst young people, we will be We have formalised our approach to encouraging our employees to go into their local school delivering local employment community involvement and charitable or college to talk about working in the housebuilding and creating great homes giving in a new policy this year. sector, as part of the ‘Inspiring the Future’ initiative. and places to live. Community day with partners, Learn more at www.inspiringthefuture.org Sovereign, at Hanham Hall, Bristol Across the Group, we encourage and support a wide range of charitable giving and community This year, we contributed £219,491 to charitable causes, volunteering initiatives, which are widely promoted £115,539 from direct business donations, and £61,700 at a divisional level and within communities. from employee fundraising. KidsOut (see case study) is just one of the great causes we support. ENGAGING OUR COMMUNITIES TARGETS UPDATE HIGHLIGHTS We are refocusing our efforts on the quality and consistency of our community engagement. ..First Group Economic ..£219,491 charitable Footprint published contributions case study We have refreshed our Barratt Consult Manual, ..Community Policy KPIs ..Public consultation on KidsOut which helps our land and planning teams navigate integrated with reporting 46% of developments. the maze of public and political engagement. process. KidsOut (www.kidsout.org.uk) Our relationship with KidsOut has The guidance helps us to engage positively and gives disadvantaged children grown year on year, and we are constructively at the earliest stage possible with AWARDS our aspirations positive experiences to help the charity’s largest corporate the local communities around our sites, and their them become future members supporter. Our people have raised representatives (see case study opposite). National Civic Trust Award Every employee commits .. .. of our society and workforce. £282,000 for KidsOut since 2011. for Derwenthorpe, York. at least one day per year We have also commissioned the London School to volunteering by 2020. Over the past twelve months, “The scale of this fundraising of Economics, in association with the NHBC, our employees have run a is phenomenal, and without to research the impact of new homes on existing variety of KidsOut events across doubt Barratt's contributions house prices in an area. We believe that an and Wales including have been instrumental independent assessment will enable us, and the three colleagues running the in bringing happy memories whole sector, to address a prevailing perception London Marathon in support of to an estimated 8,000 and challenge to development. the charity. In total, our activities disadvantaged children have raised £143,000 this year. across these regions. We also know that a sense of community develops This funding helps KidsOut to Without your help this would over time, and we support this with community provide thousands of fun days not have been possible.” websites and resident days to strengthen links. out and numerous workshops for children who have suffered Gordon Moulds, serious abuse and violence. Chief Executive, KidsOut Barratt Developments PLC Sustainability Report 2014 16 THE PLACES WE CREATE 17 “ The Built for life Partners 11 were delighted when barratt adopted the principles on all new developments as a method for improving quality, and have been Sustainable places to live knocked out by the dedication shown." David Birkbeck, co-author of Building for Life and chief executive of Design for Homes Our developments must provide a sustainable legacy. As well as being high-quality, desirable places to live, they need to enhance local communities and environments now and in the future.

Our customers want great places to Building for Life 12 is the Government-endorsed live, which will mature and function industry standard for creating well-designed built for life well; landowners want to work with residential places. It reflects the National Planning developers who leave a legacy Policy Framework objectives of creating places commended of great design quality; and local that are attractive, functional and sustainable. 17 communities need to have confidence developments in a developer’s design and build Our commendations It poses 12 key design questions, structured standards. To ensure we deliver on into three groupings that encompass all stages 7 these expectations, we have made a of the design process: commitment to achieving the Built for Life commendation on all schemes Integrating into the designed from 1 January 2014. And neighbourhood we’re already making great progress. Making sure the development proposal connects properly into the local street network and At the Building for Life launch event provides convenient access to local facilities and in April 2014, we won seven of the 1 transport services. This is about responding well 16 Built for Life commendations to neighbouring uses and to the wider built form, awarded, and subsequently a further ensuring that the new place makes a proper 10 schemes (as at 30 June 2014) were 2 long-term contribution to the local area. 3 commended, with more in the pipeline. 4 Creating the Place Information on all of these schemes can Making use of the best attributes of the site, 17 be found at www.builtforlifehomes.org 7 reflecting local character or creating new 6 9 5 distinct character by the careful selection of 8 architectural style, materials, landscaping TARGETS UPDATE 13 and other street elements. It is about applying established design principles to form ..Our Great Places internal design standard 15 16 14 the foundation of a new, safe community. has been aligned with Building for Life 12.1 11 12 17 Street and home HIGHLIGHTS Getting all the details right so that the new 10 place functions properly with good parking ..Built for Life commendation sought for all provision, clearly defined robust boundaries, new developments 2 and well designed bin and cycle storage. ..First Group Economic Footprint published ..17 developments BfL commended. Schemes which successfully respond to 1. La Sagesse, Jesmond (North East) 10. The Moorings, Plymouth (Exeter) all 12 questions, through consultation with our aspirations 2. Derwenthorpe, York (Yorkshire East) 11. Hanham Hall, Hanham (Bristol) the various stakeholders, are then entitled 3. The Chocolate Works, York (Yorkshire East) 12. Montague Park, Wokingham to use the Built for Life commendation to ..Continued commitment to the Building 4. Cottam Hall (site K), Preston (Manchester) (Southern and Southern Counties) signal that they have been through a rigorous 5. Woodthorne, Tettenhall (Mercia) 13. Trumpington Meadows (Eastern Counties) for Life 12 initiative and our own internal 6. Hastings Park, Ashby de la Zouch 14. Clements Gate, Hawkwell (Eastern Counties) design process and meet current residential design standard ‘Great Places’, to ensure (East Mids and North Mids) 15. Evolution, Edgware (London Brentford) design standards. well-designed and well-delivered places. 7. De Lacy Court, Castle Donnington (East Mids) 16. Hendon Waterside (London Brentford) 8. Nursery Gardens, Measham (East Mids) 17. Nine Elms, Wandsworth (London Aldgate) Building for Life applies in England. The Scottish 9. Hollygate Park, Cotgrave (North Mids) Government and the Design Commission for Wales are currently considering similar initiatives.

1 Building for Life 12 is the industry standard, endorsed by Government, for well-designed homes and neighbourhoods that local communities, local authorities and developers are invited to use to stimulate conversations about creating good places to live. 2 If a development receives 12 greens based on a Building for Life 12 assessment endorsed by the , it is eligible to apply for Built for Life commendation. Barratt Developments PLC Sustainability Report 2014 18 THE PLACES WE CREATE 19 63% 866,819 OF COMPLETED UNITS TREES AND SHRUBS BUILT ON BROWNFIELD LAND PLANTED

case study Biodiversity and Giving nature a home We have joined forces with the RSPB, consistent best practice across the whole Europe’s largest nature conservation Group. The RSPB are already working with us charity, to build great places for people on flagship developments, and will be advising natural habitats and nature, and to set the benchmark us on how best to give nature a home. for eco-friendly, sustainable housing developments in the UK. “It's great to see that Barratt are We are acutely aware of partnering with organisations our role in minimising We are donating £10 to the RSPB for like RSPB, so together we can the impact that new every customer feedback form received, help create great homes for people committing to £100,000 of value in total and nature.” developments can have on in year one of the programme. habitats and wildlife, and of Dr. Darren Moorcroft, As part of this work, we will be funding an Head of Species and the opportunities to enhance Woodcote School children planting trees at ecology and biodiversity specialist to improve Habitat Conservation, the Built for Life-commended Hastings Park the biodiversity and open our landscape design guidance and ensure RSPB development, Ashby de la Zouch. spaces in our developments. Green roof at Fulham Riverside case study Creating a positive ecological legacy

Enhancing ecology TARGETS UPDATE Our goal is to enhance the ecology and biodiversity of our Fulham Riverside, on the banks of the On completion of the development, the suite Thames, is a prestigious development will become accommodation for the centre. developments, wherever possible, by protecting existing ..Launched Ecology and Biodiversity Policy comprising 467 new homes and a new This will be occupied by a local environmental environments and restoring or creating new biodiverse ..Partnered with RSPB on major superstore. An Ecological Management charity, providing an important resource for habitats. Following publication of our Ecology and conservation programme. Biodiversity Policy this year, we have been looking at Plan was developed for the site, securing future generations. ways in which we can enhance and improve our practices HIGHLIGHTS extensive planting of trees, shrubs and across the business. the construction of a ‘green wall’. The education centre’s ‘green roof’, which ..63% of completed units built on features more than 20 species of native plants From January 2014, we have committed to undertake brownfield land We also restored a redundant jetty at the and wildflowers, and the inclusion of bat and Biodiversity Action Plans on all new developments to ..Biodiversity Action Plans on site to house our marketing suite and an bird boxes throughout the site, have contributed evaluate the existing ecological value of the area, while all new developments environmental education centre. to Fulham Riverside becoming an ecologically helping to minimise our impact and enhance biodiversity. ..866,819 trees and shrubs planted or and visually diverse habitat. Currently, 63% of legally completed units are built on land retained on developments that has a former use. With less brownfield land expected to ..611 total hectares of green public open be available in future to meet the UK’s housing needs, we space on developments recognise the importance of working with partners to achieve ..260 hectares of private gardens. What matters most the best outcome for customers, communities and wildlife. our aspirations For example, we continue to work with the The environment around our sites British Beekeepers Association to ensure ..Seeking to create a net positive impact1 that we use pollinator-friendly plants when across our development portfolio by 2020. ..The UK has suffered reductions in ..Public access to green space We are focusing on valuing designing our open spaces and show- biodiversity through habitat loss improves our sense of wellbeing nature, protecting and enhancing home gardens. The case studies opposite over the past 50 years. Increasing and is important to our customers habitats and biodiversity in all new illustrate how we work with a range of other population has the potential to and local communities developments by: exacerbate this trend2 partners to enhance the ecology of our sites. ..The natural world and biodiversity ..Improving our guidance and ..The scale of demand for housing are potentially sensitive issues sharing best practice is increasing the pressure to build for regulators, local authorities, ..Ensuring that our design, technical, on previously undeveloped land local communities, investors, commercial and construction NGOs and employees. teams consistently apply best  practice across all our divisions.

1 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. 2 From the UK State of Nature Report produced through a collaboration between 25 UK conservation and research organisations. Barratt Developments PLC 20 Sustainability Report 2014 21 We build quality, low-carbon homes of units with nhbc THE that support the creation of communities where customers want to live. We source water saving pride in the responsibly and work in partnership 67% devices 90 job awards HOMES with suppliers to ensure our properties WE harness the innovative products, materials and construction methods that deliver Building more sustainably case study energy and water efficiency. This reduces Our legacy lies not just in the homes that we build, but in how the design and build decisions we take influence their Low-carbon homes and supply chain BUILD running costs for customers and decreases long-term carbon emissions. Our sector-leading research research completed their and our carbon footprint. and development work, and increasing standards, mean we are firmly on course to build zero carbon homes from The AIMC4 project was ..A better understanding of 2016, in line with Government policy. completed this year with a energy demand reduction final conference delivered techniques, which will be Derwenthorpe, York, winner of a 2014 National Civic Trust Award We also recognise that we have a role to play in influencing by the consortium (Barratt applicable to the wider for design, sustainability and benefiting the local community. consumer behaviour during occupation (see AIMC4 case Developments, Crest business as standards are study), which is a significant contributor to the energy used in Nicholson, Stewart Milne, enhanced our homes (see The marketplace and our customers, page 8). H+H Celcon and the Building ..Detailed data and insight to Research Establishment). help move the Performance We have worked closely with our supply chain partners to Gap debate forward provide efficient homes that can potentially save customers The £6.4m project, of ..First-hand practical knowledge more than £1,0001 per year on heating and water costs. Our which £3.2m was invested of how a collaborative ‘fabric-first’ approach minimises the need for complicated by Government, delivered 17 approach to supply chain renewable technologies. Fabric-first means the home is exemplar homes to CfSH Level management reaps rewards thermally efficient through the use of enhanced insulation, 4 with a fabric-first solution. ..An appreciation of the role well-designed detailing and quality workmanship on-site. We invested £700,000 over of customer behaviour on the lifetime of this project. the energy performance of 67% of our completed units this year had water-saving The homes were sold to private our homes. fixtures installed. Water consumption of our homes is customers, who agreed, for between 105-125 litres per person per day, compared the first year of occupation, The results from the project to an estimated 150 litres for older properties. to have their energy and water will bring benefits across use closely monitored. Through the business, putting us in a Efficient and Low-carbon district heating this project we have gained: strong position to maximise District heating schemes are an increasingly common the future impacts of our planning requirement on new developments. These networks fabric-first approach. supply heat from a central source directly to homes low-carbon homes Hatton Mews, through pipes carrying hot water. This reduces the need Corby, Northamptonshire. We are committed to using innovative products, materials and processes to for individual homes to generate their own heat on-site. ensure the low-carbon, energy-efficient homes we create have a reduced We have partnered with EON Community Energy to connect 5,000 homes to these low-carbon schemes to environmental impact both during their construction and long-term occupation. date, with plans to connect an additional 7,000 homes over the next five years. Barratt is the only housebuilder to participate in the steering committee of the industry-led Independent Heat Customer Protection Scheme, which Our commitment to building high-quality TARGETS UPDATE HIGHLIGHTS will help to ensure rigorous protection and set customer homes is at the heart of everything we service standards for those on heat networks. do. We continuously monitor all our ..Industry-leading role in tackling ..10th consecutive year winning most build stages and techniques with regular Zero Carbon Housing challenge NHBC Pride in the Job Awards – site audits to ensure we retain the very ..Established Innovation Panel 90 this year case study best construction quality. We have for suppliers ..37% homes achieved Code for representation at a senior level on the ..Completed AIMC4 project. Sustainable Homes Level 3 or above A first for fabric-first Housebuilders Federation Sustainability ..67% of units with water saving devices and Technical group, NHBC standards ..1,100 homes connected to Tattenhoe Park, a shared Tattenhoe Park used learnings The development of Tattenhoe committees, and the Zero Carbon Hub, low-carbon district heat networks. development between from the AIMC4 project, and Park is well underway, with as well as on Government-related working Barratt Northampton and our Hanham Hall development in 137 plots built and sold in 2014. groups, which ensures that any new our aspirations AWARDS DWH South Midlands, is one particular, to drive down energy All of the homes are set to building innovation or new legislation to of the first in the country demand. For example, we tested achieve the HCA’s Development improve building standards is embraced ..These will be developed further in ..Developer of the Year for Barratt to be constructed to the the use of Hi-Therm Lintels to Quality Standard, Lifetime Homes at the very earliest opportunity. 2015, based on our post-occupancy London's Maple Quays in National proposed Fabric Energy successfully reduce heat loss and criteria and Building for Life Gold. research from AIMC4. Urban Design Awards 2014. Efficiency Standard of the improve the SAP score. We will The entire development will Zero Carbon Homes definition. now be using these materials in achieve CfSH Level 4. our standard specification.

1 4-bed detached house, based on SAP compared to a new build built in 2010. Figures produced by Zero Carbon Hub, NHBC Foundation and BRE Trust. Barratt Developments PLC Sustainability Report 2014 22 THE HOMES WE BUILD 23

“ barratt has worked with its supply chain supply chain group to provide more ACCURATE and detailed 180 agreements 150 suppliers demand forecasting in support of the wider material procurement process. This helps H&H Celcon better meet demand and supports our shared drive to build more sustainable homes and communities.” Mark Oliver – MD H&H Celcon case study Delivering low-carbon communities

The Scotswood development, Newcastle. Strategic management Work has started on a 20-year development of 1,800 Group Procurement The Group procured £2.1bn of goods and services homes in Newcastle, built by the New Tyne West Materials Purchased in 2014, divided into direct, indirect and subcontract Development Company, a consortium of Barratt, by Value (%) services. We maintain long-term partnerships with and Newcastle City Council. our suppliers and subcontractors. Our Group Procurement function centralises buying where The Scotswood development creates an opportunity for there is universal demand for a product, material Barratt to connect a combined heat and power energy or service across the business. This delivers cost and centre and district heating network to traditional low-rise sustainability benefits. Key areas of consideration are housing, at a viable commercial scale for the first time. recycled and recyclable content, ecological impacts, embodied energy and material use by design (see charts). Group Procurement The site is designed with a fabric specification in line with Materials Manufacturing the Zero Carbon standard, and will help deliver carbon Our long-term supplier partnerships – maintained by Origin (%) reductions as part of the Council’s city-wide energy throughout the recent recession – are supporting and strategy. Residents will benefit from lower energy bills, and 1,800 rewarding the business now that materials demand a 33% reduction in the carbon footprint of their new homes. new homes is picking up.

Engaging with suppliers case study Our suppliers are critical to the delivery of our future Supply chain innovation TARGETS UPDATE HIGHLIGHTS vision. We have strong engagement with our suppliers, Supply chain holding quarterly performance reviews, bi-annual At our 2014 supply chain Pipe+ HE is one of the latest 100% of timber sourced from Helped develop and committed business review meetings, regular training days and .. .. conference, Recoup Energy additions to our supply chain, FSC or PEFC Certified sources to Construction Prompt an annual supplier conference. Solutions was awarded best with this technology first Sustainable Procurement Payment Charter capacity and .. new product for their Pipe+ trialled as part of our AIMC4 Policy launched and supplier £2.1 billion spent with suppliers We are the only major housebuilder to host an .. HE wastewater heat recovery project (for more on AIMC4, survey undertaken and contractors annual supply chain conference. This year’s event system. The technology captures see page 21). Launched supplier webpages 90% by value of materials was attended by over 130 suppliers, who were .. .. and recovers up to 62% of sustainable ..Supplier innovation panel manufactured in UK addressed by our Group Chief Executive and the heat from waste shower launched. 180 supply chain agreements key partners, including the HBF. We delivered .. water, significantly reducing 150 Group suppliers key messages on business performance, our .. customers’ energy bills. sourcing ..Held only national conference Sustainability Programme, and our future approach with 130 suppliers. to managing the impacts of climate change and the move towards zero carbon homes. With uplift in the UK economy our aspirations We have successfully implemented our sustainable taking hold, demand for procurement and timber sourcing policies. We also materials rising, and increasing ..100% of Group suppliers ..100% compliance with surveyed 81 suppliers (55% of Group suppliers) on their fully aware and working in Construction Prompt Payment perceptions of our approach to sustainability, and how legislative requirements, we collaboration with us to achieve Charter – all suppliers paid per satisfied they are that we are addressing these issues continue working closely with our sustainability goals contracted terms. appropriately. For more on the outcomes of this research, our supply chain to identify see ‘What Matters Most – Our Supply Chain’ on page 24. ways to improve resource We also helped develop the Construction Supply efficiency, drive innovation Chain Payment Charter, which aims to create a more collaborative working culture and a stronger and in materials and processes, sustainable supply chain. For all new contracts, we will and spread best practice make payments in not more than 60 calendar days, through the supply chain. reducing to 45 days from June 2015, and 30 days from 62% January 2018. We will be working with our partners in the Construction Leadership Council to develop benchmarks for monitoring and enforcing this Charter. heat recovery Barratt Developments PLC Sustainability Report 2014 24 THE HOMES WE BUILD 25

group procurement spend on £2.1bn suppliers and subcontractors Investing in product innovation and development Local supply chain commitments Our commitment to ensure prompt payment is one We subcontract most of our construction work and practical way we can support local companies. services from an approved list of subcontractors, We constantly review the latest technologies in order to keep up specialist consultants and suppliers, local to the We aim to minimise the distance travelled by construction with evolving regulations, increases in predicted demand and material communities in which we operate. materials to their final point of use, while maximising the proportion of materials sourced locally. Much of the build shortages. This year, we have conducted an analysis into the The vast majority of our circa 5,820 suppliers materials purchased centrally are also sourced from local potential benefits, constraints and challenges of off-site manufacturing.1 and 6,250 subcontractors are local SMEs, who we distribution facilities. This reduces transport costs and typically work with in long-term partnerships. We helps to protect the environment. We are currently often support the development of small companies researching methods to further reduce the impact of with practical assistance to ensure they can meet materials transport, and will report on our findings next year. the requirements of becoming a Barratt supplier. The majority of our homes are built with traditional case study brick and block construction. However, alternative approaches may become more compelling as lead Supporting the circular economy case study case study times for bricks and blocks increase, skills availability Bricks and blocks Supply chain partnering becomes more challenging, costs rise, carbon and We strive to meet our This initiative delivers a 20.4% energy regulations increase, and the demand for faster environmental commitments reduction in the embodied construction times grows. This presents significant social, at every stage of the supply carbon of the product. This saves economic and environmental risks and opportunities chain. One of our PVCu around 306 tonnes of CO2e for the business. In 2015, we will aim to identify the window suppliers, Eurocell, (based on 5,000 window units), technologies which will help us meet our long-term goals. has introduced a new range reduces the reliance on costly of window products that and scarce raw materials, and Innovating together include recycled components. mitigates rising energy costs. Our Sustainability Manager within Group Design and Technical recently participated in the UK Green Building Council’s ‘Future Leaders’ course, which brings together professionals from across the industry in a unique leadership and innovation forum. The increase in housebuilding & Wienerberger) to identify Barratt worked with Stewart specify to suit different elevations has led to a shortage of facing European brick equivalents Milne Timber Systems at and architectural treatments. This year, we also created an Innovation Panel tasked brick, as manufacturers have that can be used as substitutes the Cairnrobin project near We have also worked closely to with finding products and services from across the struggled to match growing for UK-produced brick. Marywell, Scotland, to pre-book production materials supply chain that can help us and the industry as a demand. UK brick manufacture speed up the construction across the supply chain, securing whole meet future housebuilding challenges. increased by around 100 Despite the complications of 115 homes, built to our capacity for future demand at a million between 2012 and involved in this process, we exacting standards in less fixed price. This approach cuts In 2015, we aim to work in even closer partnership 2013. However, customer have successfully integrated than six months. the build time for the shell from with our suppliers to explore innovative ways to deliveries rose by 185 million some 35 million imported bricks two weeks to only five days, and increase efficiencies in materials manufacture and over the same period. into our production programme Through extensive up-front allows for plot construction to be logistics processes. (about 20% of requirement) design, value engineering and completed in just eight weeks. 20.4% REDUCTION To address the situation, Barratt with no compromise in quality, waste reduction, the supplier We are rolling out this method on We are also researching smart technologies that has worked with its two primary or significant disruption to was able to anticipate material future developments. will help our customers to better control their homes brick supply partners (Ibstock site activities. usage more accurately and and save energy. IN EMBODIED CARBON

What matters most What matters most Our supply When surveyed in May would appreciate closer ..Reporting our supply Product There are a number of considering how our In response, we will 2014, our suppliers stated engagement to enable chain impacts more key challenges linked to homes are designed, change the way we build chain the biggest issues that them to best support transparently innovation product innovation: built and occupied homes in the future to could affect our future us in achieving our ..Engaging with our ..Customers’ interest respond to demand, success were all linked sustainability goals. supply chain on ..Availability of materials in low-maintenance, availability of materials to availability of affordable their role in delivering and skills to deliver energy-efficiency and skills, the climate mortgages, land, In response, we are: our vision. against rising demand warranties and reduced change challenges and sustainable materials, ..Gaining a better ..Contributing towards running costs. to ensure we can deliver and skilled labour. understanding of our the UK Government’s more efficient homes They also told us they supply chain impacts carbon targets by more quickly.

1 Off-site describes factory manufacture and assembly. Barratt Developments PLC 26 Sustainability Report 2014 27 We are continuously improving THE the way we operate. Above all of workforce compliance else we prioritise the health and safety of every single person linked 96% certified to 96.1% achieved WAY to our operations. We invest in the construction skills against challenging WE people and skills to help meet the certification scheme performance criteria sector’s recruitment challenges, and we strive to reduce waste WORK and energy consumption in all Rigorous governance to raise awareness of these and other health issues of our construction processes. The overarching goal of our Health and Safety Operations by providing posters, briefings and information leaflets. Committee is to seek to achieve an injury-free working We have also provided information on the prevention environment. Whilst we believe all injuries are avoidable, of respiratory conditions, including asthma and those our primary target is for a year-on-year reduction in injury associated with silicon dust. rate. Disappointingly, this year saw our total increase to 379 (from 329 in 2013), just above the HBF Health and We have engaged an Occupational Health Provider to Safety Forum average1 of 376. The home building sector offer ongoing medical surveillance and advice for our has seen an overall increase in the injury incidence rate, safety-critical workforce, and ensured that an occupational which has been driven by the rapid increase in build health briefing pack is available at all of our developments. programme and adverse weather conditions. We have investigated the causes and enhanced our procedures Continuous improvement to seek to address the adverse result. We have also This year, we have also upgraded our bespoke in-house appointed a Board Committee to enhance stewardship SHE site monitoring system, which enables us to report of overall Group performance. health and safety performance at divisional and site level, to identify trends in near misses and take preventive actions. We continue to evaluate the effectiveness of our management system through independent site monitoring and auditing REPORTABLE INJURY RATE processes, and we are proud that all of our divisions maintained PER 100,000 EMPLOYEES their certification to international standard OHSAS 18001. Keeping (INCLUDING SUBCONTRACTORS) In addition, compliance to our management system via our Children from Furze Platt internal audit process has increased from 94% (2013) to 95%. primary school on a site safety people safe visit to Brunel Gardens, A healthier workforce 582 Maidenhead. 600 539 Our sickness absence level has dropped to 3.47 days 511 There are inherent risks in per employee this year compared to 4.49 in 2013, and is 500 TARGETS UPDATE HIGHLIGHTS well below the CBI 2012 average of 5.3 days. As part of 379 construction, so maintaining the Government’s Public Health Responsibility Deal2 we 400 329 stringent safety standards ..Continued support for ..96.1% compliance, with have pledged to help our employees and subcontractors 300 Home Builders Health and 5,788 monitoring visits understand the health issues that may affect them or 200 and a continuous focus on Safety Forum ..95% average divisional their families. This year, we have worked with a range of health and safety issues is ..Appointed Occupational compliance (2013: 93%) charities, including the British Heart Foundation, Prostate 100 Health Provider ..96% of workforce Cancer UK, Diabetes UK and the Stroke Association, paramount. Getting the basics ..Improved site briefings Construction Skills Certified 2010 2011 2012 2013 2014 right, and having strong ..Upgraded site health ..Sickness absence 3.47 days monitoring system per employee leadership delivers a culture ..Missed 5% Injury Incidence ..No Prohibition or Improvement case study of strong, proactive health Rate, due to increased activity. Notices received Emergency response training and safety performance at ..Board Committee established to oversee performance. Kim Willcock every level of the business. Despite robust systems, Kim from the roof of a on simulated rescue. training and awareness, three-storey building. During our aspirations awards emergency situations can the training exercise, she was arise, so it is important that strapped into a stretcher, ..Continuously striving for ..At the NHBC Health and Safety we practise our response, lowered to the ground, and improvement and achieving Awards, our site managers and help our partners with rushed to a waiting ambulance. industry-leading health and received four commendations, training opportunities in safety performance. one highly commended real building site situations. In similar collaborations with ..Kirk Raine of our Mercia the emergency services, our Division won the NHBC’s Sales Manager Kim Willcock was Southampton and South Midlands National Best Site Award at the centre of an emergency divisions have enabled the fire (Large Builder Category), simulation at The Acres service to practise extinguishing for the third year in 2012 2013 2014 development in Horley, Surrey. fires on derelict housing before succession for the Group Specialist paramedics from the demolition, and allowed the Two Silver and five Bronze HSE Internal .. Hazardous Area Response Team police to make a training film Audit Performance 93 94 95 Considerate Constructors (HART) of the South East Coast in one of our show homes. (% SCORE) Scheme Awards. Ambulance Service “rescued”

1 Based on the HBF March 2014 all-home builder average. 2 www.responsibilitydeal.dh.gov.uk/deliveryplans/?dp=4008 Barratt Developments PLC Sustainability Report 2014 28 THE WAY WE WORK 29

An industry-wide approach Tackling the recruitment challenge New routes to market We are signatories to the HBF’s Home Builders Health and Safety What matters most We understand the need to improve the image of We are always exploring new avenues for acquiring Charter. Our Group SHE Director has chaired the Home Builders housebuilding as a career choice for young people and talented employees. The Career Transition Partnership Health and Safety Forum for the past three years, and we work with those who influence them. Together with other major (CTP) enables us to recruit from the 20,000 ex-Service other homebuilders to seek to continuously improve the performance Ensuring health housebuilders, we are working in conjunction with the personnel who enter the civilian job market each year. of the industry. Under the Charter, we have implemented: Home Builders Federation and the Construction Industry ..A formal agreement to work collaboratively where two or more and safety Training Board (CITB) to inform potential employees of We have an assigned CTP Employment Consultant in homebuilders are working on the same development the wealth of career opportunities available in the sector. each of our regions, and we have successfully recruited ..Minimum health and safety training for our directly-employed staff ..Increasing demand for new homes, and the first of what we hope will be many Service leavers – ..Requirements for supervisors of our supply chain to be provided a growing workforce, mean we have We co-led the strategy for the Construction Leadership a Materials Controller at one of our sites in Salisbury. with appropriate health and safety training. to work harder to ensure that all of our Council. In addition, we plan to introduce transitional people and subcontractors can deliver training for former tradespeople, and all people with Lessons Learned our rigorous health and safety standards relevant skills, who want to work in the sector. In May 2014, the Group was prosecuted by the HSE at Taunton ..New workers and subcontractors need Magistrates Court and was fined £16,000 plus costs. This followed to meet our industry-leading health and an October 2012 incident where an excavator operated by one of safety standards, and we need to provide our subcontractors damaged a medium pressure gas main. Whilst them with the right training and support case study nobody was injured, this caused disruption to the community and to do this the utility company. We fully cooperated with the HSE, following the A carpenter in the making incident and we tightened our Group-wide management systems to ..Health and safety is a core value, which we encourage each individual to adopt Anthony Dimmick with students from Horndean Technology College reduce the risk of recurrence. Katherine Colley joined Barratt at age 16 and has already (Katherine Colley, centre). as a personal responsibility. cemented her place as one of our high flyers. She completed a two-week Work Experience Programme as well as her CITB Skills Test and is now in the first year of our Apprenticeship Programme.

Katherine is determined to become a carpenter and is already being considered for our Site Manager Programme. We are doing everything we can to help nurture and support her talent at every stage of her career. Inspiring, attracting “Katherine is a real pleasure to work with, and her enthusiasm has made a real impact on many different teams. To see such focus and dedication in someone her age is fantastic. She is exactly the sort of person we would welcome applications from and growing talent for our Academy Programme.”

Anthony Dimmick, Community Liaison Manager, We are attracting and retaining the best people by investing Barratt David Wilson, Southampton in their development and success, and creating a great place to work, which embraces diversity and inclusion. And we Listening and acting Recognition continue to improve our ability to work better together, sharing With staff turnover increasing, engaging our people and We have a ‘Get Recognised’ programme which allows best practice between disciplines and across all our divisions. listening to their views on working for Barratt is essential our people to be rewarded by colleagues for a job well to the success of our business, and helps us to excel done with instant awards of £100 cash or a day’s holiday. as an employer of choice. In 2014, we appointed a new We also recognise the outstanding contributions of engagement consultancy, Kenexa (part of IBM), to help our people through quarterly awards for sales staff, us improve, embed and measure the effectiveness of our apprentices and site managers as well as via individual Employee Engagement Programme. Our engagement and team excellence awards. Around 430 awards were HIGHLIGHTS our aspirations TARGETS UPDATE score remains a key leadership measure, and is strongly made through these schemes in the last year. linked to employee rewards and recognition. We are ..1,164 commercial and technical ..Recruit 1,100 graduates, trainees and ..Provided an average of three training days really pleased that our employee engagement score has We are enhancing our existing Leadership Programme training days apprentices over a three year period per employee increased to 78% (from 69% in 2013), though disappointed to support the development of our leaders and to create ..223 Sales Academy graduates ..Maintain average of three training days ..Employee engagement improved to 78% that participation has reduced to 57%. We have included the leaders of the future. ..210 new graduates, trainees and per year, per employee ..Staff turnover increased to 15.9%. questions on how our employees perceive our approach apprentices ..Maintain upper quartile UK FTSE 250 to sustainability, and will report on this in future. ..800 staff trained for management and performance1 in our engagement survey leadership ..The gender and ethnicity mix of our AWARDS ..193 employees with 20+ years' service workforce will reflect the communities 2009 2010 2011 2012 2013 2014 ..Females in 16% of management positions where we operate. Best Graduate Employer in TheJobCrowd’s ..Females represent 44% of Top 100 Best Large Companies For EMPLOYEE graduates, graduate recruits Graduates To Work For 2013-14. ENGAGEMENT 51 54 52 54 69 78 ..1,000+ recognition rewards given. SCORE %2 210 trainees and RESPONSE apprentices RATE %2 57 71 58 61 63 57 recruited

1 As measured against UK all sectors. 2 Response rate impacted by timing of survey in July 2014, as we migrate to enhanced system Barratt Developments PLC Sustainability Report 2014 30 THE WAY WE WORK 31

case study A novel approach to The Prince’s Trust

1,164 223 193 Our graduates worked in children’s book ‘Look Again partnership with The Prince’s Wellie’, aimed at small children training people employees Trust on its Million Makers who have moved house. Corporate Challenge. days graduated with In addition, they came sixth out The scheme puts employees’ of 68 teams overall by raising delivered from our 20+ years' business acumen, team-working £21,500, with an additional skills, creativity and negotiation £5,000 through a Prince’s Trust sales academy experience expertise to the test by sponsored bike ride between challenging teams to raise £1m, the Rivers Mersey and Tyne. with a minimum target of £10k.

Our graduates won a Million Future Talent Suzie Flynn and Andy George receiving award Makers award for innovation and Million Makers award winning graduates. We have invested in our ‘Future Talent’ strategy. In from TheJobCrowd's Alex Horne (left). entrepreneurship for their initiative From left: Kat Gare, Marc Woolfe and September 2013, we committed to employing 600 to produce and sell an inspiring Gemma Bretherton with Suzie Flynn graduates, trainees and apprentices over a three-year period. (Graduate & Future Talent Manager). In March 2014, we increased this commitment to 1,100, of which 350 will be recruited during 2014 (calendar year).

This year, we introduced a number of new entry-level case study Diversity and inclusion programmes in addition to our award-winning graduate We are committed to providing an inclusive working and apprentice programmes. Fast-tracked through finance environment, where everyone feels valued and respected. As part of our focus on becoming a more ethnically diverse Undergraduate Internships: Students studying Built Carl Sobolewski, a maths headed up the finance function business, this year we launched a pilot in the Environment and other related degrees are given the graduate from Loughborough of our Northampton Division. region to engage local schools and colleges with high chance to earn and learn, with a 48-week paid placement University, joined the first And now he’s been promoted ethnic student populations. We were delighted to see a covering all aspects of the business. Those who excel are cohort of our Graduate once more, to the role of Finance significant year-on-year increase in job offers to black and offered a permanent position on completion of their degree. Programme in 2007. Director. This makes Carl the minority ethnic applicants, and a significant increase in We have doubled the intake to 22 for 2014, with 42% from first colleague from our Graduate the ethnic minority mix of employees in our East region. ethnic minority backgrounds. Following his successful Programme to be appointed to a We plan to roll out the pilot across the Group. 33% of our completion of the two-year Director role. interns and 26% of our graduates were from non-white Accelerated Programmes: Our one-year programmes scheme, Carl was appointed British backgrounds. are for graduates in sales or construction roles who have as an Assistant Accountant. the potential to fast track their careers towards future Six months later, after management positions. Our first group of 30 performed completing his CIMA exams, extremely well; a further 40 are being inducted to the Carl was promoted to Regional programme in 2014. Accountant for the East region, What matters most covering four housebuilding Graduate Programme: Our two-year Graduate divisions and BD Living. Programme continues to be a huge success, now For the last 18 months, Carl has Our workforce holding the top spot in TheJobCrowd’s ‘100 Best Large Companies For Graduates To Work For’ 2014 rankings. There are key challenges ahead: Our graduates continue to be recognised externally, with strong representation in both the National Graduate ..Construction is not seen as an attractive sector Recruitment Awards and the Birmingham Young to work in, or a sector of choice for young Professional of the Year Awards. people,1 with the sector losing more than 350,000 Graduates, trainees and Apprentices Recruited employees since its 2007 peak Foundation Degree: In November 2013, we launched RECRUIT ..The future workforce needs to be prepared a three-year, part-time Residential Development and for low-carbon building requirements, and Construction foundation degree in conjunction with new technologies. Sheffield Hallam University. The course offers the perfect alternative to university for those school leavers Investing in people is one of our key business 1,100 priorities. Our primary goals are: who wish to enter the workforce while still gaining a degree-level education. This pioneering programme ..Improve the image of the sector and Barratt, has already been recognised with the runner-up position graduates, Financial year Total to secure our future workforce in the Best School Leaver Programme category at the ..Up-skill the workforce to meet current and National Graduate Recruitment Awards. On conclusion trainees and 2011 126 future needs of the pilot year, we will share the course content with ..Engage with our talent to ensure we attract, other major housebuilders. apprentices 2012 11 retain and develop them Marketing students from 2013 88 ..Enhance our organisational capability For more on induction, training and reviews, please over three De Montfort University gaining to support our future growth. visit www.buildingcareerstogether.co.uk/About-us/ years first-hand business experience. 2014 210 1 From Construction Leadership Council Paper prepared by Barratt and Berkley Foundation. Barratt Developments PLC Sustainability Report 2014 32 THE WAY WE WORK 33 Operational greenhouse gas emissions CONSTRUCTION WASTE (TONNES/LC UNIT) Our gross operational greenhouse gas emissions (GHG) 6.6 footprint for this year was 40,349 tonnes CO2e. This is based 2 6.49 on energy used in our offices (including air conditioning ), 6.5 live developments, and business travel. This equates to 2.78 tonnes of GHG emissions per 1,000 sq ft, which is 6.4 6.45 an increase of 0.4% on 2013, most of which is attributable to our decision to include the greenhouse gas emissions 6.3 6.36 6.39 emitted from electricity transmission and distribution, in 6.2 6.25 line with best practice. We will be focusing our efforts Reducing our impact on re-engaging and benchmarking between divisions to 6.1 Careful stewardship of our design seek to reduce our emissions on an annual basis. and construction processes improves 6 resource efficiency and reduces waste, Operating 0 Carbon Reduction Commitment carbon and water consumption, For the year to 31 March 2014, we reported 4,145 tonnes 2010 2011 2012 2013 2014 helping us to manage our costs and of CO e emissions, a reduction of 0.6% compared to materials handling on sites. 2 efficiency the previous 12 months. This was our last year in the Government’s CRC Energy Efficiency Scheme, as we have Our national programme with supplier Scott Pallets to All our divisions are certified to reduced our usage year on year to the extent that we are reuse and recycle timber pallets is now active on 256 sites. ISO 14001, and we have had no no longer within the mandatory reporting requirements. This year, we increased our collection rate by a further 39% To reduce the impact environmental fines or prosecutions. This will be kept under review on an annual basis. to 106,715 pallets, 71% of which were reused and the of our operations on remainder recycled. In total, we have reused or recycled A recent review of our ‘Green Teams’ This year, we took part in the Carbon Disclosure over 320,000 pallets since the scheme began in 2010. highlighted our success in implementing the environment, we Project for the first time, which we hope will help us capital projects across our divisions, to continuously improve our future approach. are focusing on using such as energy-efficient lighting and recycling. However, it identified a need PALLETS SEGREGATED FOR resources efficiently. In 2015, we aim to work with our suppliers to explore for more progress on encouraging innovative ways to increase efficiencies in our logistics REUSE AND RECYCLING changes in behaviour. During 2015, 106,715 processes (see Supply Chain Capacity and Sustainable 100,000 we will be looking at ways to influence 31,382 Sourcing, page 22). 80,000 76,293 76,664 behaviours related to improving our 75,333 resource efficiency across the business. 60,000 52,628 16,559 16,670 CONSTRUCTION WASTE SEGREGATED 40,000 17,825 59,734 59,994 Our delayed sustainability data ON-SITE FOR RECYCLING (%) 20,000 37,803 Reused management system is scheduled to 6,165 100 0 Recycled be implemented this year, improving 2010 2011 2012 2013 2014 our performance management 99 capabilities in line with our Climate Change Policy. We will seek to report 98 on our emissions from the waste we 97 What matters most generate on our sites and in our offices 96 96 in next year’s Sustainability Report. 95 95 95 Reducing our footprint 94 94 The primary factors driving our carbon reduction activities: 1 GREENHOUSE GAS EMISSIONS (TONNES C02) 93 92 ..The UK is committed to achieving significant 92 reductions in GHG emissions by 2020 and 2050 TARGETS UPDATE ..Operational emissions are only a small part of our SCOPE 1 91 50,000 overall footprint. However, we have most control and Diesel, LPG, Gas ..Diverted 94% waste from landfill, TOTAL: 2010 2011 2012 2013 2014 influence over these emissions TOTAL: 40,349 and Refrigerant loss narrowly missing our 95% target 40,000 ..Generating waste of any kind increases our overall 36,196 ..Climate Change Policy launched and 17,315 SCOPE 2 impact on the environment, reduces raw material 16,287 annual carbon reduction target set. WASTE AND WATER Electricity availability, increases our costs and takes time and 30,000 A key area of success to date is the segregation of waste for effort to manage. SCOPE 3 HIGHLIGHTS recycling on-site. While this is now standard, we narrowly Business travel by 20,000 14,053 cars/vans, rail and missed our 95% recycling target by 1% in 2014. We generated 13,035 2.78 tonnes of greenhouse gas Critical areas of importance for Barratt are: ights .. 6.39 tonnes of waste per legally completed unit, an increase emissions (CO e) per 1,000 sq ft 10,000 2 of 2%. We will continue to focus our efforts on identifying ..Internal benchmarking and behavioural changes 7,752 SCOPE 3 6,874 ..6.39 tonnes construction waste per LCU ways to ensure that we eliminate and reduce waste. to (further) reduce greenhouse gas emissions Transmission and 1,229 ..Group 'Green Team' Initiatives reviewed ..Building on what we have learned from the AIMC4 0 distribution losses ..First Carbon Disclosure Project submission. 2013 2014 This year, we used 8,862 litres of water in our offices and project on lean construction techniques 182,196 litres on our construction sites. This data relates ..Reducing total waste generation through attention to our aspirations to the 44% of our offices and sites where usage is metered. detail on specifications, design and materials ordering. 1 Calculated using data sourced from invoices and direct data measurement. Carbon emissions calculated in line with DEFRA Environmental Reporting Guidelines (including mandatory These are under development and will be greenhouse gas emissions reporting guidance, dated June 2013, and Greenhouse Gas Protocol). published in 2015. Greenhouse gas (GHG) emission factors outlined in the DEFRA/DECC 'UK Government conversion factors for Company Reporting' Version 1 (2014). Greenhouse gas emissions from Wilson Bowden tonnes of construction waste Developments’ one active site in 2014 has not been reported. 2 For the first time, Barratt has collated information on refrigerant gas consumption and included the emissions associated with refrigerant gas consumption in its carbon footprint. 6.39 per lcu Barratt Developments PLC 34 Sustainability Report 2014 35 2015 performance targets

What Matters Most 2015 Targets The Homes We Build Engagement and communication Validation of material issues through targeted engagement with key stakeholder groups Efficient and low-carbon homes: Further research and development of our ‘fabric-first’ approach with a view towards e.g. NGOs, local authorities, public/private landowners, and housing associations. Saving customers' money and reducing Zero Carbon from 2016. environmental impacts, by creating quality Update our sustainability strategy, with input from external stakeholders and communicate it Review potential for alternative build systems and off-site technologies, and assess implications homes that use energy and water efficiently. throughout the business. on the training/re-skilling of the labour force. Progressively move sustainability reporting online and provide regular updates on initiatives and Product innovation and development: Further research and consideration of using smart/remote technologies. progress towards our goals. Creating smart homes that harness Improve our understanding of embodied carbon in our housetypes and look to minimise, innovation to sustain connected communities Incorporate sustainability training modules within our intranet-based learning system for all staff. moving forward. where customers want to live. Deliver a 5% improvement in our employees’ satisfaction with our sustainability progress. Continue assessing the performance of the homes we build, and translate into best practice. Best practice and benchmarking Move to a sustainability data capture system incorporated within the normal management Water use minimisation strategies employed in every new house. performance reporting cycle. Supply chain capacity and Engage suppliers on business vision and longer term sustainability goals, via the annual Build on our first Carbon Disclosure Project benchmark submission and improve our scoring. sustainable sourcing: supplier conference. Driving change and sourcing responsibly Continue to engage with and participate in the NextGeneration benchmark, FTSE4Good, and Audit compliance with Sustainable Procurement Policy. deliver improvements in our scores. throughout the supply chain, based on strong relationships. Review feasibility of gathering Scope 3 GHG data from all materials suppliers contracted at The Marketplace and Our Customers Group level (transport, products and services), to set a baseline and 2020 goal. Customer experience and engagement: Maintain Home Builders Federation 5 Star Home Builder status. In collaboration with group suppliers evaluate and pilot opportunities for improving transport Engaging and understanding our customers Eight week survey: Net Promoter Score >50%. logistics and reduced fuel consumption. to help us shape and deliver great places Development of a ‘customer first’ Culture Change Programme. Launch online supplier webpage to improve information and engagement with suppliers and to live – creating customers for life. Develop customer insight dashboard and pilot. potential new suppliers. Further develop our customer sustainability communications supported by our national Conduct gap analysis via the Sustainability Supply Chain School and pilot with a selected group partnership with the RSPB to ‘Give Nature a Home’, and engage our sales staff. of priority material suppliers. Ensure consistent standards across the Group for customer service through a new Customer Put processes in place to achieve 45 days' payment to suppliers from June 2015, Service Academy. as per Construction Prompt Payment Charter. Affordability and access Continue dialogue with all major lending stakeholders (lenders, valuers, DCLG, mortgage brokers, The Way We Operate to home ownership: Council of Mortgage Lenders, regulators) to ensure customers can access mortgage products Delivering safely: Seek to reduce our Injury Incidence Rate (IIR) by 5% year on year. Creating quality, affordable homes to meet appropriate to their needs. Continued focus on health and safety for all our customer needs, working with lenders Work with the Home Builders Health and Safety Forum to develop and implement a home Continue to engage with national and local authorities, public and private landowners and our employees, contractors and customers. builder’s Occupational Health Strategy. and Government to improve accessibility to housing associations to deliver affordable homes. home ownership, and supporting customers Skills, training and diversity: Recruit 350 employees through our Future Talent Strategy. to find access to mortgage products Addressing the skills and diversity gap by Maintain an average of three training days per annum per employee. appropriate to their needs. investing in training and skills development, Maintain upper quartile UK FTSE 250 performance in our engagement survey. The Places We Create creating jobs directly and indirectly supporting local economies. Improve response rate to employee engagement survey annually. Securing a supply of land: Increasing the proportion of homes we build on strategic land towards 15%. Working collaboratively to secure land to meet Roll out of training for all managers on diversity and inclusion. the needs of a growing, changing population. Tailor our Leadership Programme to suit the needs of our future leaders in a dynamic marketplace. Stronger communities: Embed the use of the updated 2014 Barratt Consult manual and continue to celebrate effective Improve training and best practice sharing through the introduction of a business-wide e-learning Fully engaging our communities and working community engagement throughout our divisions. management system and online collaboration forum. together to create places to live. Engage divisions on new charitable giving and volunteering policy. Operating efficiency: 1% reduction in Scope 1, 2 & 3 greenhouse gas emissions (per 1,000 sq ft). Educating managers and enabling them to engage with Inspiring the Future, doubling the number Using resources efficiently, of employees registering in the year. reducing waste, carbon and water Review our operational carbon footprint and define our 2020 goal. Scope out the options for a national charity. in our construction processes. Analyse total waste generation, and put in steps to seek to reduce waste generation by at least 2%. Sustainable places to live: All proposed land acquisitions considered by our land committee will be assessed against Analysis of future opportunities for reduction in total waste generation as a result of the Designing, developing and delivering Building for Life 12 criteria in England (or equivalent standard in Scotland and Wales). deployment of innovative off-site methods of construction. attractive, functional and sustainable Enable our divisions to communicate socio-economic benefits to the communities in which Revitalise employee engagement on resource efficiency in our construction processes. developments, including transport planning we have developments. and surface water management. Biodiversity and natural habitat: Working with the RSPB to review landscape and design guides, policy and practice against Valuing nature, protecting and best practice. enhancing habitats to encourage wildlife Review how we define and measure our contribution to enhancing habitats and biodiversity on in new developments. our developments. Engage employees in improving development design and build to enhance the build of our homes for nature. Scope out the development of an appropriate accreditation system for our developments. Barratt Developments PLC 36 Sustainability Report 2014 37 2014 performance DATA assurance statement

Our sustainability agenda is underpinned by the regular collection of data that we use to generate our sustainability KPIs and This Sustainability Report is the eleventh such It is noted that information in regard to The report has enhanced the theme of practical for submission to sustainability benchmarking indices. Our Internal Audit team makes a provision to review the robustness of publication from Barratt Developments PLC Greenhouse Gas Emissions and Carbon exhibits of the way the company strives to this data within their standard divisional audits. This table shows performance data for the reporting period 1 July 2013 to 30 and covers the reporting period from July 2013 Reduction Commitment is included in this meet its targets whilst continuing to focus on June 2014 and the previous four years.1 to June 2014. Ocean Certification Limited has year’s report. performance against targets and improvement been commissioned by Barratt to verify the areas for the next reporting period. Emissions contents of the report. OUR CONCLUSIONS have been identified and measured using 2010 2011 2012 2013 2014 Based on the scope of our review our Scopes 1-3 of the WRI GHG Protocol. Number of legally completed units (including Joint Ventures) 11,377 11,171 12,857 13,663 14,838 The purpose of this verification activity is to conclusions are outlined below: Number of legally completed units (excluding Joint Ventures) 11,325 11,078 12,637 13,246 14,191 provide a level of assurance to stakeholders RESPONSIVENESS Number of divisions at the end of the period 25 25 25 25 27 that the claims and data contained in this report INCLUSIVITY Has Barratt responded to Number of developments providing data 484 485 522 531 527 are based on actual and reliable information Has Barratt been engaging with stakeholder concerns? Customer and that it has been appropriately evaluated by stakeholders across the business to Barratt Developments and interpreted into a develop its approach to sustainability? In verifying this report, evidence was observed HBF 5 Star rating 5 5 5 5 5 true reflection of its sustainability performance. to illustrate how Barratt is responding to Environment Barratt continues to demonstrate its evolving stakeholder requirements and working KPI – Number of divisions certified to ISO 14001 25 25 25 25 27 Barratt have reviewed and communicated commitment to be accountable to those in cooperation with interested parties such as KPI – Legally completed units on brownfield land (%) 70 67 65 66 63 its corporate performance in the form of a on which it has an impact and is able to NHBC and its suppliers and customers and we Developments incorporating Sustainable Drainage Systems (%) 47 50 61 61 62 Sustainability Report which is underpinned with demonstrate stakeholder partnerships with are not aware of any matters that would lead a Sustainability Policy containing its visions and several organisations with examples given us to conclude that Barratt has not applied the Sites with a flood risk assessment (%) 54 69 82 82 86 philosophies. including the Homes and Communities Agency responsiveness principle in considering the Waste (HCA) Delivery Partner Panel 2, the Department matters to be reported. KPI – Construction waste produced per legally completed unit (tonnes/LC unit) 6.45 6.36 6.47 6.25 6.39 WHAT WE DID TO FORM for Communities and Local Government and Construction waste segregated on-site for recycling (%) 92 95 96 95 94 OUR CONCLUSIONS the HBF. There are also a number of private COMPLETENESS Climate change – greenhouse gas (GHG) emissions Our assurance engagement has been planned partnerships demonstrated. How plausible are the statements and and performed in accordance with the AA1000 claims within the report? KPI – GHG emissions (tonnes CO2e /LC unit) 2.56 2.91 N/C 2.63 2.71 Assurance Standard (2008) principles and to The Company continues its association with KPI – GHG emissions (tonnes CO e /1,000 sq ft) – – – 2.77 2.78 2 meet the requirements for a Type 2 assurance National House Building Council (NHBC) award The overriding impression is that the report is Total GHG emissions (tonnes CO2e) – – – 36,196 40,349 engagement. The AA1000AS (2008) assurance schemes and maintains its House Building more straightforward in its approach than in Ecology and biodiversity principles of Inclusivity, Materiality and Federation (HBF) 5 Star Builder status. This previous reports and easy for stakeholders to Area of green space on-site (hectares) – – – 556 611 Responsiveness have been used as criteria is helping to enhance the existing inclusive follow. The use of case studies as illustrations Area of wildlife habitat created or retained (hectares) – – – 739 150 against which to evaluate the report. approach to stakeholder engagement across of the Company’s involvement in sustainability Trees or shrubs planted or retained on the developments (absolute no.) – – – 310,923 866,8192 the organisation. issues helps the reader’s understanding and In order to form our conclusions we undertook covers the elements required in a robust Developments with a Biodiversity Action Plan (%)3 29 43 50 18 17 the steps outlined below: Collaboration with local authorities continues, sustainability report. The issues reported Design standards ..Internet searches to corroborate claims providing local as well as commercial benefits. are sensibly dealt with and accurately reflect Legally completed units with enhanced CO2 performance via fabric improvements (% of LC units) – – 26 32 34 ..Verification of data collection techniques current activities. Legally completed units with Code for Sustainable Homes Level 3 or above (number of LC units) 1,953 3,089 3,820 4,277 5,544 ..Validation of data gathering techniques and MATERIALITY Partner processes and aggregation of data Has Barratt provided a balanced OBSERVATIONS AND AREAS ..Interviews during certification assessments representation of material issues FOR IMPROVEMENT Number of legally completed affordable units (excluding Joint Ventures) 1,870 2,634 2,805 2,268 2,255 to test how the sustainability agenda is concerning its sustainability performance? To ensure completeness of future Sustainability Legally completed units on public land (%) – – – 30 28 embedded and stakeholder dialogue Reports, Barratt would benefit from Section 106/equivalent contributions (£m) 208.6 127.4 86.7 262.6 282.6 managed within the organisation The Company has clearly identified its consideration of the following: Charitable donations (£) – directly donated 36,100 45,700 30,205 40,411 115,539 ..Visits to active construction development initial assessment of material issues from Charitable donations (£) – all types 78,559 113,737 – 258,596 219,491 sites and divisional offices its engagement with relevant stakeholders Enhance the methods by which data is Employee volunteering (hrs) – – – 546 150 ..Visits to four Divisional offices (BDW West identifying 12 significant issues. From these it collected and analysed as detailed in the Scotland, BDW North East, Barratt London has demonstrated a new vision, priorities and Ricardo-AEA report with shorter periods for Developments that hold a public consultation (%) 12 25 29 35 46 Stratford and Barratt Bristol) specifically to principles which serve to integrate sustainability interim reporting. People interview Directors and Senior Managers into the overall business model. The Company Average number of employees (no.) 4,128 4,405 4,451 4,781 5,406 in regard to their views on Sustainability, has given a commitment to validate these Review the guidance given to Divisions on the – female (%) 32 32 34 33 32 the veracity of information gathered and 12 issues through engagement with a wider implementation and maintenance of Green KPI – Staff turnover (%)4 10 12 12 13 14.5 the “sustainability” initiatives as they are stakeholder group in 2015. Teams with signposts to help engender implemented. Samples of data sets from a greater focus for all employees towards Sickness absence (days/employee) 4.7 4.3 3.9 4.4 3.5 the Barratt Corporate Responsibility This Sustainability Report provides relevant sustainability and re-emphasise the 12 Average training days per employee (days/employee) 2.5 2.0 2.5 3.0 3.0 Questionnaire – 2014 for sites and offices coverage of Barratt Developments’ 12 material significant issues identified at Group level. Employee engagement index (%) 54 52 54 69 78 including Performance, Partners, Planet issues expanding on each, giving assurance Employee engagement survey participation level (%) 71 58 61 63 57 and Sustainable Procurement and Design of the commitment of top management to Verifier: J Martin Thornley* B.Sc, CMIOSH Number of graduates, apprentices and trainees recruited – 126 11 88 210 5 were verified the new principles by ensuring sponsorship 1 September 2014 Sites that promote training or employment of underrepresented groups (%)6 9 11 31 35 47 ..Review of Sustainability KPI Summary of each by an individual member of the Group On behalf of Ocean Certification Ltd reported by Ricardo-AEA Ltd Chief Executive’s Committee. Health and safety ..Barratt Group Socio-Economic Footprint KPI – Number of divisions certified to OHSAS 18001 25 25 25 25 27 FY2014 by Nathaniel Lichfield & Partners. The report itself is again supplemented KPI – Injury incidence rate (per 100,000 persons employed) 582 539 511 329 379 with a full suite of KPIs and secondary *Martin Thornley is a Chartered Member of the Institute of CSCS carded workforce – including subcontractors (%) 97 97 97 96 96 LIMITATIONS OF OUR REVIEW performance indicators gathered through Occupational Safety and Health and is registered as a Lead Reliance has been placed on existing a well-established and rigorous Divisional Auditor with the International Register of Certificated Auditors 1 Five years' data is shown where available, additional data sets have been 4 Staff turnover excludes turnover due to redundancy, third party report information from regular questionnaire process and compiled by an (IRCA). He is also registered as an Auditor with the Institute of collected since 2013. death in service and end of temporary contracts. certification assessment visits and reports external body, Ricardo-AEA Ltd. In addition, this Environmental Management and Assessment (IEMA). As a registered lead auditor he undertakes third party assessments 2  5  The Sidings, Hull, reported 344,589 trees or shrubs retained on an area 2014 recruitment data is reported on financial year performance; commissioned by Barratt Developments PLC. year the Socio-Economic footprint has been of quality, environmental and health and safety management of former railway embankment of approximately 36 acres. previous sustainability reports reported calendar year data. In addition testimonial evidence gathered reported on by Nathaniel Lichfield & Partners. systems on behalf of Ocean Certification Ltd. 3 All new sites started after April 2014 must have a Biodiversity Action Plan. 6 Includes long-term unemployed, apprentices, work experience, during interviews with Divisional and Group school/college workshops and site visits. personnel has been included. Registered office Corporate office

Barratt Developments PLC Barratt Developments PLC Barratt House Kent House Cartwright Way 1st Floor Forest Business Park 14-17 Market Place Bardon Hill, London Leicestershire W1W 8AJ LE67 1UF Tel: 020 7299 4898 Tel: 01530 278 278 Fax: 020 7299 4851 Fax: 01530 278 279 Email: [email protected] www.barrattdevelopments.co.uk

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