Building sustainable excellence
Sustainability report 2017 Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Introduction
We build more homes than any other UK housebuilder, putting us at the forefront of Britain’s housing provision. This year we delivered 17,395 new homes1, our highest in nine years.
Inside this report Learn more about sustainability at Barratt How to use this report
This sustainability summary report provides a Navigation tools at the top right of each page performance update on our key sustainability issues. and within the report are available. Click on: For more data and case studies, visit our sustainability • Icons* to move to 4 5 7 32 33 website. Our sustainability policies are available here. • Section names to guide to the front of that section* Responding Delivering Our six key Building Glossary • Underlined copy in the contents sections to our what matters sustainability Excellence to go to that page changing most issues vision External recognition and assurance • Green highlighted text to guide to that page world or to view additional information online We prefer to be judged by our actions rather than * Desktop view only All data within this report relates to our financial year our intentions, which is why our annual sustainability 1st July 2016-30th June 2017. report is independently assured using the AA1000 Home page Assurance Standard and we use the Global Reporting Initiative’s (GRI) G4 guidelines to help to shape the content. Find out more here.
Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
A word from the Chief Executive
Why is sustainability important I am particularly encouraged that our business. We will not hesitate to take whatever for Barratt Developments? construction waste per 1,000 sq. ft. action is required to ensure our standards and has reduced by 13% since 2015, achieving our values are upheld. Sustainability is key to how we act as a our 2020 target early, and I’m proud of the responsible business. As we design and build hard work put in by colleagues, suppliers How does a focus on sustainability improve our developments, we are not just delivering and sub-contractors across the business business performance? high quality, energy efficient homes, we are to achieve this. creating sustainable places to live which need Our credentials have a positive impact on to leave a lasting positive legacy. Also, whilst it’s early days, it’s great to see talent recruitment and retention. The quality the Diversity Forum providing an opportunity of our housing developments is important Sustainability is important operationally for employees to discuss how to create to potential and existing customers, and financially – our strong financial a more diverse and inclusive workplace. landowners and local authorities. They create performance is only possible when we have It is generating some interesting ideas. We’ve a sense of personal pride in our employees. efficient and resilient processes across our already implemented a revised leave policy Proactive engagement during the development business, through the supply chain, design for new parents and there are more policy design stage on issues such as ecology, and construction. changes in the pipeline. landscape and transport can minimise costly planning delays. In other areas such as waste It’s why this report focuses on the theme of What have been the greatest challenges reduction and energy efficiency, we can clearly leading construction. faced by Barratt Developments during see a link between sustainability performance Has sustainability become a more the year? How have you responded? and financial performance. significant focus within Barratt Keeping people safe is always our number one Our sustainable values are important to Developments during 2017? priority, and relates to the twin challenges of our stakeholders, who expect us to lead In 2015, we committed to becoming the leading increasing volumes and an industry wide skills by our actions. national sustainable housebuilder and set out shortage. We have worked hard to create a ‘working safely’ culture and over the year have Our employees are working hard to embrace long term ambitions. Meeting these requires change, embed improvements in efficiency Our sustainable constant review of the steps taken already, had a relentless focus on reducing the number of incidents onsite. At the same time trialling and are leading construction. However, values are important the results and what further work is required. they are still finding time to support local In 2017, we are working to deliver on the modern methods of construction may allow to our stakeholders, us to mitigate skills shortages. communities, raising £223,257 in charitable who expect us to lead issues that matter most to our stakeholders. contributions. Direct business donations of We’re also improving the communication Doing the right thing can mean making difficult £765,922, and £129,316 of other donations led by our actions. of our strategy and actions both internally decisions. This includes the action we took to £1,118,495 being raised for charity overall. and externally. following issues identified by our own internal What are the sustainability performance investigation relating to bribery and corruption David Thomas highlights from the past year? in our London business, which we reported to Chief Executive the police. The police investigation is ongoing The 2% lower reportable Injury Incidence and we have co-operated fully. We adopted Rate (IIR) this year despite increasing volumes additional controls and continue to run and the use of different build techniques through anti-bribery and corruption training is a considerable achievement. with employees. We are committed to the highest ethical standards in all aspects of our
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About us
We aim to be the leading national sustainable housebuilder. At the heart of our business is a commitment to creating sustainable homes and places to live in that help meet the UK’s housing shortage.
We put our customers first by: Our principal activities Building desirable homes in well-designed places. Our activities are supported by expertise in Building homes to high standards. partnerships, procurement, design and land use. Excelling in customer service. Our housebuilding business trades under the Barratt Homes, Barratt London and David Wilson Minimising our environmental impact. Homes brands from our 27 divisional offices located Providing social and economic benefit to their across Britain. local communities.
These actions provide a sustainable financial return for our shareholders.
Our year in numbers Our year in achievements
17,395 3,488 17.2% 74 20 5 Star homes legally affordable operating margin Pride in the Job Built for Life accreditations. HBF Customer Satisfaction completed homes completed awards – more than any We hold more than the rest Rating for eight other housebuilder of the industry combined years running 20.0% £765.1m 18,497 75% GOLD A- gross margin profit before tax land approvals (plots) FTSE4Good Next Generation Carbon Disclosure Project
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How we create and preserve value
Our business model focuses on delivering across the housebuilding value chain, creating sustainable returns for shareholders and making a positive difference in the communities in which we operate.
What we do Long term sustainable value Shareholders >>Total shareholder returns including dividends 1 2 3 4 5 >>Two and a half times dividend cover >>Special cash payment programme from November 2015 to November 2018 >>In total £1.4bn Capital Return Plan to November 2018
Targeted Outstanding Construction Innovative Industry leading Customers and society land buying design excellence sales and customer >>Quality homes and effective and efficiency marketing experience >>Local investment and regeneration planning >>Job creation >>Taxation revenues
See our total contribution.
Critical inputs
Availability Local and of building Financial Our national Land owner Affordable Sustainable materials and Contractors capital people government engagement supplier mortgages places to live engagement engagement
See ARA page 38 See page 16 See website See website See page 24 See ARA page 42 See page 24 See page 20 and page 30 ARA
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Responding to our changing world
With change happening at an ever-greater pace, our business and our stakeholders are affected by diverse and complex issues. We keep abreast of changes and respond in a way that maximises the benefits – both for our business and for society – while managing the risks.
Key trends affecting our industry
The changing population Climate change and natural resources Skills shortage Innovation and technology With the UK population on track By 2050, the UK is committed to reducing With 320,000 fewer workers than Speed of build and pressure on to reach 74.3m by mid-20392, our greenhouse gas emissions by 80% from before the 2008 recession8, and the skills and resources are driving industry needs to deliver an estimated 1990 levels.4 Construction, demolition and existing workforce ageing, we must innovation across our systems, 210,00010 new homes every year. excavation activities account for 60% of all find ways to bridge the skills gap if we design and construction processes. But the communities we serve are UK waste.5 Adapting to climate impacts has are to meet demand for new homes. Rapidly changing technologies and also changing. By 2035, one in four important implications – for temperature Creating an inclusive workforce the ‘internet of things’ are shaping residents will be over 65.3 change, flood risk and water use. 2014-15 will be key: by 2020, women are customer expectations of how they saw an 8% drop in the use of brownfield expected to make up 26% of the UK control and manage their homes. sites for residential development construction workforce.9 in England.6 53% of our native species are in decline.7
See page 20 See page 11, See page 16 See page 28 page 20 How we are responding Our response is organised around the six issues that matter most to our stakeholders Keeping Operating Attracting, inspiring and Sustainable and Investing in people safe efficiency investing in people Sustainable places to live responsible sourcing innovation and development
See page 7 See page 11 See page 16 See page 20 See page 24 See page 28
Business drivers Stakeholder expectations >>Projected UK housing needs. 210,000 houses required annually.10 Our stakeholders told us: >>Customer demand for quality. 84% of UK new homebuyers would >>They expect us to lead on sustainability. 11 recommend their builder to a friend. This rises to 90% for Barratt. >>We are respected on quality and sustainability. >>Business ethics. Doing the right thing, differentiating our brand >>We could improve how we communicate and and being the developer of choice. integrate our sustainability strategy. Read about what matters most on our website.
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Delivering what matters most
On target/target achieved
In progress
Target not met
Our ambition Our targets Our performance To provide a safe environment for Maintain IIR at the level recorded 379 IIR per 100,000 employees. in 2015 (381).12 our employees, sub-contractors, and British Safety Council audit to Keeping people living in the communities where Maintain 5 Star Safety Management be undertaken every two years. we build homes and run our offices. System status (as assessed by the people safe British Safety Council).
See page 7
To minimise our use of materials and By 2020: Reduce waste generation per Construction waste generation decreased energy, reduce waste and maximise 1,000 sq. ft. by 10%. Achieve 95% recycling by 13% (tonnes per 1,000 sq. ft.). rate annually.13 Operating low carbon opportunities in our By 2025: Reduce carbon intensity from our 95% of construction waste recycled. efficiency business operations. construction operations, offices and business mileage by 10%.14 8% reduction in carbon intensity.
See page 11
To continue to invest and develop By 2020: Recruit 1,100 employees through Recruited over 979 graduates, apprentices our people, and to identify new pools our Future Talent programme. and trainees including our intake for FY18. of talent to help us deliver ongoing Maintain upper quartile UK FTSE250 Maintained our upper quartile Attracting, performance in our engagement survey.15 business growth to 2020. performance in engagement survey. inspiring Maintain an average of three training days and investing per employee per year. Delivered 4.5 training days per employee. in people Maintain and seek to reduce staff turnover Staff turnover of 18%. at or below 20%. By 2020: Ensure the gender and ethnicity Trained c.300 senior managers on diversity See page 16 of our workforce reflects the communities and inclusion strategy. where we operate.
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Delivering what matters most continued
On target/target achieved
In progress
Target not met
Our ambition Our targets Our performance Providing a lasting positive legacy By 2020: Continued commitment to Built for 56 Built for Life accreditations and by creating sustainable places to live Life and our own internal design standard, 14 ‘Outstanding’ since 2014. Great Places.16 Sustainable that satisfy the needs of customers 51% of new developments had and communities. By 2020: Seek to create a net positive impact biodiversity action plan. places to live on biodiversity and ecology throughout our development portfolio.
See page 20
To work in partnership with our supply Continuous improvement and innovative 160 Group and London suppliers chain and sub-contractors to operate solutions developed in collaboration with are members of the Supply Chain our supply chain. Sustainability School. responsibly and resource efficiently. Sustainable Maintain 100% timber sourced from 100% of all timber procured through and responsible sustainable sources (FSC/PEFC) for Group timber agreements is from 17 sourcing Group timber agreements. sustainable sources (FSC/PEFC).
See page 24
To maintain and improve our high By 2020: Complete 20% of units using 17% of units completed using standards of performance through offsite construction techniques against offsite technologies. 2014 baseline.18 Investing in innovation and development across innovation and all aspects of our business, and for development our customers and stakeholders.
See page 28
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Keeping people safe To provide a safe environment for our employees, sub-contractors, and people living in the communities where we build homes and run our offices.
Top: Our Working Safely with Schools programme Left: Our SHE managers carried out 6,990 monitoring visits
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Keeping people safe continued
Our approach Our focus areas Why this matters most ‘Keeping people safe’ is a core principle as Safety, health and wellbeing we strive to create an injury-free working Building a strong safety culture is of Delivering projects at pace to meet the rising environment to the highest industry paramount importance in a high-risk industry standards. All business risks are defined demand for homes, combined with a shortage of such as ours. Our award-winning ‘5 Steps to via a matrix reviewed by the SHE operations Safety’ campaign encourages people to think committee every year, driving our continuous skilled labour, means maintaining the safety of about site safety. Our divisions are responsible improvement strategy. We manage these for identifying training needs for staff and our people, sub-contractors and the public is our risks through a robust framework and sub-contractor roles through the SHE management system, updating our operating number one priority. training matrix. divisions on any emerging risks or changes in operating procedures. A range of health advice and services to employees are provided through the Barratt Our dedicated Board-level committee Targets and performance overview Benefits scheme. Occupational health advice strengthens health and safety governance on issues such as noise, dust and vibration is and performance across the Group and we Our IIR decreased by 2% on 2016, and the average internal provided onsite through signage and directly have zero tolerance of poor health and safety audit rating of our sites reached a record high, increasing with employees. practice. All divisions maintain integrated slightly on 2016. safety, health and environmental (SHE) Engaging our sub-contractors and suppliers management systems that are externally certified to OHSAS 18001 and ISO 14001. Sub-contractors and material suppliers play Reporting to the Group SHE Director, a team a vital role in our construction programmes. of 22 SHE managers help to ensure standards We extend the same safety standards to them are met and we identify opportunities as we do our employees while they are working for improvement. on our sites. This includes ensuring our safety expectations are understood and can be met Our targets Our performance Regular unannounced site visits by Directors, through a robust site induction process and Managing Directors and Regional Managing other communications. >>Maintain IIR at the level recorded 379 IIR per 100,000 employees. Directors reinforce the importance of safe in 2015 (381).12 British Safety Council audit to working practices onsite. An anonymous, Right first time >>Maintain 5 Star Safety Management externally-operated whistleblowing system be undertaken every two years. The correct site set-up right first time is System status (as assessed by the operates for employees and sub-contractors critical to minimising risks, particularly British Safety Council). to raise concerns. Our annual employee engagement survey gathers further views on from onsite vehicle movements and keeping health and safety management. Read more traffic types separate. New technologies about Keeping people safe on our website. and innovative construction methods offer opportunities to improve both safety and efficiency. Our systems of working are scrutinised externally to ensure we make the most of new opportunities and the latest developments in safety standards.
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Keeping people safe continued
How we’re leading construction: Lights on plant give a clear indication of when seat belts Reducing the risk of injuries are worn from plant Wearing seat belts on construction plant vehicles is highly important in staying safe. 400 We have introduced a requirement across all our sub-contractors operating plant for a green light to be engaged when the plant is Office and site defibrillators installed being used and seat belt is worn. This is to encourage operators to wear the seat belt and give a clear visual indication if fastened. A list of daily checks has been communicated to operators, including looking out for wear and tear that could reduce the effectiveness of the belts. A full list of safety requirements is contained within our SHE Code of Conduct for sub- contractors. We have placed a focus on operators having the correct training, qualifications and medical fitness to conduct 96% their duties safely. Health and safety compliance rate
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Keeping people safe continued
Our performance Management systems and policy IIR per 100,000 employees and Focus for the future Our IIR has decreased by 2% on last year We updated and re-issued our SHE sub-contractors Review the safety of plant to 379, meeting our target to maintain it at management system in September and Participate in industry groups to review 2015 levels. launched new site layout guidance to improve safe use of machinery such as forward signage, compound layouts and waste storage, tipping dumpers. Awareness of safety, health and wellbeing with new processes such as director sign off This year 71 senior level employees attended for site execution plans before construction. Health and wellbeing plan Leading Safely courses. Accredited to the In 2017, our SHE Managers carried out Institute of Occupational Safety and Health, 6,990 monitoring visits (2016: 6,184) to our Agree and implement a plan to undertake these courses refresh knowledge and sites. We maintained our Group average a review for our office and direct employees. understanding of best practice across compliance rating of 96%. This is to support our strategy to increase other industries. both health awareness and to provide an Across all sites we have provided card readers early warning of any potential health issues 93% of employees agree or strongly agree which are linked to the CSCS national register associated with work activities. that the business is committed to health and so we can review if these competency cards safety, unchanged from last year in our annual presented are accurate and valid. Improve control of entry to sites Employee Engagement Survey. Engaging our suppliers Implement a system of recording inductions via Site posters raise employee awareness an electronic review of smart competency cards. of zero tolerance commitments, managing All new starters and new trades onsite safety as well as key messages around receive a site induction and records are health. We updated and re-issued our Drugs kept via our Homebuilder portal. We revised 329 379 381 385 379 and Alcohol Policy in March to enhance our and re-issued our SHE Code of Practice for 2013 2014 2015 2016 2017 Contractors underlining the need for works approach in this area and to provide any Target support required to our employees. to be appropriately supervised and monitored. Maintain level recorded in 2015 (381)
We relaunched our Working Safely with Innovation, technology and site efficiency Status: Target achieved Schools programme, creating a new video We have installed over 400 defibrillators drawing attention to construction site safety in all offices and on sites, with employees in communities. trained in their use. The tragic events at Grenfell Tower in The Group SHE team were involved in London illustrate why health and safety reviewing modern construction techniques. must always remain the first priority for the One example is Wellsafe, a stairwell protection building industry. Fire safety is core to the system which reduces the risk of falls. way we plan and build our developments. It also reduces waste from joists that would Following the fire at Grenfell Tower, we otherwise be disposed of after construction. conducted a review of our sites and continue to ensure we are maintaining the highest standards of building safety.
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Right: The biomass boiler at the BD Living furniture factory
Operating efficiency To minimise our use of materials and energy, reduce waste and maximise low carbon opportunities in our business operations.
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Operating efficiencycontinued
Our approach Our focus areas Why this matters most There are still significant opportunities in We prioritise waste reduction, energy and the construction sector for reducing waste carbon efficiency on our construction sites. Rising demand for new housing means generation, carbon emissions, air pollution increasing demand for raw and manufactured and water use. That’s why Safeguarding the Designing out construction waste Environment is one of our core principles. Despite consistently positive recycling materials. We are committed to playing our part You can read our Climate Change Policy rates (between 94% and 96% since 2012) we in reducing carbon emissions which cause online and discover how we are assessing observed a consistent rise in waste intensity and responding to climate change risks over the previous three years. This became climate change. and opportunities in our annual Carbon a primary focus for our design, procurement, Disclosure Project submission. innovation and construction teams in 2017. All our divisions are certified to environmental We combine a short, medium and long term Targets and performance overview management standard ISO 14001, enabling the approach to: identification and delivery of improvements We have exceeded our 2020 waste reduction target by 3% and across waste, ecology, energy, carbon >>Communication, target setting, performance three years ahead of plan, reducing waste by 13% since 2015. and water. and feedback >>Strict enforcement of segregation We diverted 95% of waste from landfill. Operational carbon We take a multi-disciplinary approach and diversion intensity reduced by 8% since 2015. to driving operational efficiency, setting >>Innovation and designing out waste through Group-wide policy, expectations and offsite construction methods. supplier specifications. Where waste cannot be avoided, we strive to Understanding our performance and sharing divert it from landfill for re-use and recycling. it across divisions enables us to target We are delivering specific improvements areas of greatest improvement potential. through improved monitoring of waste Progress against our construction waste streams, acting on insights provided by our Our targets Our performance reduction plan, led by the Group Construction research project into the root causes of By 2020: Construction waste generation Director, is reviewed quarterly by a Waste waste (see case study on page 13) and better >>Reduce waste generation per decreased by 13% (tonnes per Reduction project team chaired by our skip utilisation. 1,000 sq. ft. by 10%.13 1,000 sq. ft.). Chief Operating Officer. Our sustainability >>Achieve 95%. recycling rate annually. performance is reported to the Board at As a result of our efforts to better understand 95% of construction waste recycled. least annually. and manage our waste, we are exploring the By 2025: removal of mixed waste skips altogether on 8% reduction in carbon intensity. >>Reduce carbon intensity from our some sites to eliminate waste to landfill. construction operations, offices and business mileage by 10%.14
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Operating efficiencycontinued
Energy efficient, low carbon operations How we’re leading construction: To improve our energy efficiency and reduce our construction carbon footprint, we continue Waste: finding the root of rubbish to identify opportunities to reduce energy use with a particular focus on show homes, To discover opportunities to reduce and our furniture factory. We are working to construction waste, we first need improve how we monitor and capture energy to know where it comes from. The housebuilding sector use and performance across our offices, sites We completed a research project to as a whole has massive and show homes. Uptake of hybrid generators investigate the types of waste arising from opportunities to radically has been more limited than we would have two plots at our Saxon Gate development hoped and we have re-communicated the cost, innovate to eliminate waste, near York in 2017. Waste was bagged by type energy efficiency, noise and air quality benefits but seems to be slow to grasp and weighed for analysis, building on similar to encourage take up. analysis of waste produced during a build these opportunities at a sector level. Barratt have begun to use Resource efficient behaviours using offsite construction methods in 2012 at Hanham Hall near Bristol. their scale to influence these Improved communication and engagement provides clear, costed directional instructions The results of the research have helped sector-changing initiatives. to all key decision makers in divisions on new us visualise the scale of the challenge and waste or resource efficiency measures, and identify priorities for future actions, engaging monitoring compliance with Group standards. our construction teams. Julie Hirigoyen We found lightweight but bulky waste can CEO, UK Green Building Council be as much of a problem as dense, heavy waste. For example, platinum board offcuts – used to insulate walls – is a significant waste source. David Thomas, CEO visits the waste analysis project at We have now shared information with Saxon Gate, Stamford Bridge sub-contractor teams detailing correct installation methods which should help to reduce this waste. Plastic packaging around materials and 15,160 timber waste are also significant waste streams. We will be working closely with our suppliers and bedroom furniture factory to reduce waste timber from kitchen and Gross waste reduction wardrobe fitting respectively. We are also on 2016 (tonnes) tackling plasterboard waste by reinforcing installation methods with sub-contractors.
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Operating efficiencycontinued
Our performance Estimated waste saving Resource efficient behaviours Waste reduction project FY17 (tonnes) Reducing waste We published a revised Construction Best Plasterboards sized to reduce off cuts 487 Practice Guide and waste ‘top ten tips’ guide. Whilst our recycling rate remains at 95%, we Wellsafe™ reuseable stairwell protection 23.8 Progress on reducing construction waste have reduced waste intensity by 13% to 5.74 is reported frequently to employees and tonnes per 1,000 sq. ft., reversing a three-year Ready-cut floor decking 300.7 site workers. trend. We reduced our gross tonnage by 15,160 Waste saving Pallets salvaged and reused19 2,667 tonnes in 12 months as a strong prioritisation of ‘Change Leaders’ have been appointed in initiatives to improve awareness, segregation Total 3,478.5 every division at a Contracts Manager or Construction Manager level. They act as a and designing out waste (see table of waste 3,478.5 Recycling Project reduction initiatives) has begun to yield results. tonnes liaison point between the Group and divisions Paint tins (total number recycled) 11,134 with roles encompassing energy and waste. The most significant reduction has been in general, active waste (reduced by 87%, 23,564 Waste intensity and recycling tonnes) due to the removal of mixed waste Estimated annual carbon Estimated annual Construction waste (tonnes per 1,000 sq. ft.) skips. Despite this success we know the sector Emission reduction project saving (tCO2e) cost saving (£) can do much more to reduce waste generation. Installed 2017 See case study and our website. Replacement of show home decorative 20 Being energy efficient and reducing emissions lighting with LEDs 682 284,000 Emission reduction BD Living furniture factory lighting LED Carbon intensity decreased by 3% in 2017 panel and sensor replacement 5.6121 5,14522 and over 8% compared to our 2015 baseline. project savings 6.30 6.59 6.61 5.74 We marginally improved overall energy Future projects 2014 2015 2016 2017 efficiency by 1% in the year, but by 2% Biomass boiler at BD Living furniture factory 80 (estimated) 70,00023 Target compared to our 2015 baseline. 768 TOTAL 767.61 359,145 Reduce by 10% by 2020 tCO2e See table (right) for initiatives we have Status: Target achieved taken to increase energy efficiency. We also re-enforced communications to sales teams Construction waste recycled % on the importance of switching off show home table lamps. Automated meters now installed at 60% of our offices provide half-hourly meter electricity data to improve data accuracy. We have introduced new specifications for forklift trucks, 94% 95% 95% 95% telehandlers and eco-cabins with LED lighting 2014 2015 2016 2017 which will be deployed on a replacement Target basis from 2018 onwards. Rising use of diesel Achieve 95% annually generators onsite (6% in kWh terms since 2015) will continue to be an area of focus in 2018. Status: Target achieved
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Operating efficiencycontinued
Greenhouse gas emissions (GHG)24 Our focus for the future Low carbon, clean energy onsite 25 (tonnes CO2e) 2015 2016 2017 Tackling priority waste sources Complete options analysis for the installation Scope 1: Office and site: diesel, LPG, gas, of renewables and low carbon alternatives at Review ways to further reduce platinum board, refrigerant loss and company owned vans 18,224 20,211 20,772 site compounds. plasterboard, timber, materials packaging, Scope 2: Office and site purchased 9,138 (market tiling, wardrobe and kitchen waste. electricity26 11,843 10,804 based: 6,299) Carbon intensity Rewarding sustainable behaviours Scope 3: Office: business travel by car, Investigate a Group wide process Investigate engaging ways to encourage rail and plane 8,172 8,326 8,839 3% for monitoring demolition waste. and reward our employees for sustainable behaviours. Scope3: Office and site electricity decrease Zero waste to landfill transmission and distribution losses 978 977 827 on 2016 Review remaining waste streams and Standard Group compounds guidance Total 39,217 40,318 39,575 develop a plan to eradicate construction Complete standard guidance for divisions on an TOTAL Carbon emissions (tonnes CO2e waste to landfill. 27 energy and waste efficient layout, establishing per 1,000 sq. ft.) 2.36 2.23 2.17 (2.01) an energy consumption benchmark. Office energy Produce a Group-wide plan for office Energy from waste energy efficiency upgrades and renewable Generating heat at our bedroom furniture energy generation. factory in Leicester using wood waste. Energy efficiency Carbon intensity (tonnes CO2e per 1,000 sq. ft.) 1% Hybrid generators Roll out lithium harvest system generators improvement which are energy efficient and create less on 2016 air pollution.
Diesel is our largest 2.36 2.23 2.17 energy source 2015 2016 2017 Target 38% Reduce by 10% by 2025 of all our Status: In progress energy use
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Attracting, inspiring and investing in people To continue to invest and develop our Above: people, and to identify new pools of talent Apprentices at a Barratt to help us deliver ongoing business Bristol induction Left: growth to 2020. Barratt Developments 2017 graduates on our Aspire scheme
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Attracting, inspiring and investing in people continued
Our approach improve on our ability to engage with communities. Why this matters most A continuous supply of skilled labour and attracting the best talent is key for the entire We are focused on delivering our Diversity More than 320,000 people have left the construction construction industry, and we seek to play and Inclusion strategy, informed by a survey industry since the financial crisis and an ageing workforce a leading role. of employees and external expertise. has led to a shortage of skilled workers. As the volume We do this by working with our industry Delivering the skilled workforce of the future partners as well as leading through our of new homes is set to increase there needs to be a focus own initiatives. We are working with industry-wide bodies such as the Home Builders Federation (HBF) on bringing more people into the industry from a more Our approach is multifaceted, aimed at and the Construction Industry Training Board diverse range of sources. providing the flexibility, benefits and career (CITB) to promote construction careers across development opportunities that will retain the schools, colleges and new, less traditional experienced existing workforce while drawing sources of applications. Targets and performance overview in new talent from populations that our sector has not fully engaged in the past. Read more Through our graduate, apprentice, trainee We exceeded our target of 5% recruitment of graduates, apprentices about this on our website. and degree schemes, we aim to develop the and trainees, as well as our target for employee training. talented people who can provide the solutions We recognise the need to improve the image of to the challenges and opportunities facing our the sector by promoting the great and diverse sector and society. opportunities of a career in housebuilding. We do this through real, tangible initiatives Our focus on training and recruitment that meet the expectations of existing and initiatives for new employees is tailored to future employees. need – whether they come from an academic background, wish to take a hands-on In doing so, we can build a workforce that apprenticeship after leaving education or have brings both experience and new ideas to the different career experiences to draw upon. Our targets Our performance table, supporting us to effectively overcome In our drive for consistency and efficiency, challenges and realise the opportunities >>By 2020: Recruit 1,100 employees Recruited over 979 graduates, we focus on delivering high quality induction inherent in the changes impacting the programmes for new employees, and systems through our Future Talent programme. apprentices and trainees including housebuilding sector. our intake for FY18. training and technical skills training for >>Maintain upper quartile UK FTSE250 existing employees. 15 performance in our engagement survey. Maintained our upper quartile Our focus areas >>Maintain an average of three training performance in engagement survey. Diversity, inclusion, retention and finding Change management days per employee per year. Delivered 4.5 training days new pools of talent To continue to deliver results an important >>Maintain and seek to reduce staff per employee. By developing a more diverse workforce, we focus is on improving our processes for turnover at or below 20%. managing and implementing major business Staff turnover of 18%. can help address the current skills gap facing >>By 2020: Ensure the gender and our industry and foster greater innovation and change, such as through our construction ethnicity of our workforce reflects Trained c.300 senior managers on creativity. By better reflecting the communities best practice guidance and updating the communities where we operate. diversity and inclusion strategy. within which our business operates we can business processes.
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Attracting, inspiring and investing in people continued
How we’re leading construction Fast-track training for the armed forces community With sector expansion, and with 14% of our Site Managers and 30% of Senior Site Managers The Armed Forces Transitional over the age of 55, we must investigate new Programme is an excellent avenues to find the skilled workers of the initiative designed to develop future. Many personnel from the Armed Forces site managers of the future possess the leadership and management qualities required for these roles. and support the Armed Forces community by providing them We started working with the Career Transition Partnership (CTP) and the with equal opportunities. The Corporate Defence Relationship Organisation challenge now is to make sure in 2015 to trial recruitment and fast-track that the new recruits continue training for Armed Forces personnel to gain the support they need looking to develop a civilian career. Candidates undertake a rigorous recruitment within their roles, particularly process and then attend a 12-month if they retain commitments transition programme. as reservists. If successful, trainees are promoted to Assistant Site Manager positions. They have the potential to become Site Managers Phil Marks Ex-marine Andy Mort within 18 months of starting the programme, Account Manager working at Barratt taking their Armed Forces experiences MoD Defence Manchester through into account. This would normally take an Relationship Management our Armed Forces average of eight to ten years. We now have 23 Transitional Programme 23 Assistant Site Managers on the programme. Another 30 employees with an Armed Forces background are taking part in apprentice and sponsored degree programmes and other Assistant Site Managers on the Armed roles. We signed the Armed Forces Covenant Forces Transitional Programme in 2016, demonstrating our continued commitment as an Armed Forces-friendly organisation, and we are looking to recruit a further 27 onto the transitional programme next year.
18 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Attracting, inspiring and investing in people continued
Our performance and accelerated construction programmes, 2014 2015 2016 2017 Our focus for the future we continue to offer a diverse range of options Diversity, inclusion, retention and finding Housebuilding skills partnership project for graduates, apprentices and trainees (see Employees (total no. new pools of talent Barratt Future Talent website). at 30th June) 5,753 5,971 6,209 6,193 Continue to contribute as an active member Our October 2016, diversity and inclusion Female (%) 32 31 30 30 of the leadership group, as a member of the survey showed 12% of respondents saw In response to the Government’s HBSP leadership team and by chairing the Apprenticeship Levy scheme, we have worked Senior Managers prejudice and discrimination at work and female (%) 13 13 13 13 focus group on attracting talent into the sector. that 75% felt empowered to challenge it. with the HBF, Federation of Master Builders Contribute to the skills group. The outcomes were used to inform diversity and housebuilding peers on the Trailblazer PLC directors female and inclusion sessions at two events for senior programmes, to develop new apprenticeship (%) 25 25 25 38 Diversity and inclusion training programme standards for levels 3-6. managers and directors to communicate Black and minority Roll out e-learning for employees and throughout the Group. These covered issues We exceeded our target of three training days ethnic employees(%) 5 6 6 6 managers, include in divisional board such as unconscious bias and business per employee, averaging 4.5, and improved Graduates, planning, and introduce bite-size benefits of diversity and inclusion. our success rate for apprentices: 79% are now apprentices and classroom training. completing programmes compared to 58% trainees recruited Around three hundred managers have now (no.) 210 327 268 184 been trained in our diversity and inclusion in March 2016. Attracting and training the future workforce strategy. A plan has been developed to train Staff turnover (%) 16 19 17 18 Change management Engage students through recruitment the wider employee base on creating a diverse initiatives at 12 universities in 2018 and deliver company and an inclusive culture by holding We developed a clear framework detailing 2014 2015 2016 2017 mentoring, work experience and two career events and providing e-learning resources. how we manage important changes in days at West Midlands Technical College. our business, including working with new Employee As part of our commitment to promoting engagement Introduce a commercial degree apprenticeship technology. This is supported by a Project index (%) 78 78 77 78 employee benefits and diversity, we have and Change Management Toolkit. Around 30 programme with Sheffield Hallam University enhanced our policies to improve inclusivity. employees who are leading and managing Employee to support the development of construction This included revising our maternity, paternity, change projects have attended workshops engagement and commercial teams. parental and adoption leave policy to provide on this topic. participation rate (%) 57 76 72 73 a more flexible and inclusive approach to Flexible working employees starting families, encouraging Engagement those taking leave to stay in employment. Review and roll out a new flexible Changes include maternity, joint parental and We continue to achieve high levels of staff working policy. adoption leave for 18 weeks at full pay, in line engagement. 73% of employees took part in New sources of talent with other industries, and full paternity pay our 2017 Employee Engagement Survey with a for two weeks. We are now in the process positive engagement score of 78%, an increase Introduce a programme for ex-offender of reviewing other relevant policies such of 1% on both counts. Our employee turnover recruitment into operative roles and extend as flexible working. rate is 18%. 74 of our Site Managers won the Armed Forces Transitional Programme NHBC Pride in the Job awards in 2017. to include apprentice and foundation Delivering a skilled workforce for the future degree programmes. Through initiatives such as our ASPIRE graduate scheme, our construction degree in partnership with Sheffield Hallam University,
19 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable places to live Providing a lasting positive legacy by creating sustainable places to live that satisfy the needs of customers and communities.
Above: A hydro-electric turbine is installed at Garnett Wharfe, Otley Top-centre: Clements Gate, Hawkwell. A Great Places Gold award and ‘Best in Category’ winner
20 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable places to live continued
Our approach We are engaged directly through HBF policy Why this matters most forums and with the UKGBC to support the Our approach goes far beyond the design consistent setting of standards across the UK, of individual homes. We consider how each which will enable us to cost effectively deliver Building the new homes needed in Britain should development will reflect and enhance the quality, energy efficient homes the UK needs. not be detrimental to existing infrastructure, our character and heritage of the local area and how houses relate to the surrounding spaces Economic benefit assessments of our natural environment or surrounding communities. within and beyond the development. developments are included in planning applications. Social and environmental We continue to build well-planned, desirable We consider how communities will function contributions of the company are developments that create a positive legacy. at our developments and the long term reported through our socio-economic environmental, social and economic impacts footprint infographic. of the way people live. Developments are designed to protect and Our focus areas Targets and performance overview enhance ecology, adapt to the risks of flooding Placemaking and community infrastructure 16 and temperature change. Our homes are We have secured more Built for Life accreditations than the designed to be affordable to run. We listen to communities to ensure we rest of the housebuilding sector combined. We increased the build the right mix and arrangement of percentage of new developments with a biodiversity action plan.28 Creating great places to live for customers private, affordable and other housing types. and communities is one of our core This includes considering the changing needs business priorities. of customers and providing access to work and leisure. We deliver excellent outcomes through our ‘Great Places’ design guide, our Community, All planning applications must meet our Ecology and Biodiversity and our Climate Great Places design guidance, aligned to the Change policies. We engage widely, respond Building for Life 12 criteria. All developments to feedback on the type, size and tenure of are targeted to achieve a Great Places Our targets Our performance homes, and aim to deliver on our promises. ‘Silver’ rating, equivalent to a Built for Life accreditation. Completed schemes are put >>By 2020: Continued commitment to 56 Built for Life accreditations, We have been championing issues highlighted forward for our annual design awards. Built for Life and our own internal design 14 ‘Outstanding’ since 2014. in the Housing White Paper for many years, 14 standard, Great Places. supporting initiatives such as Building for Protecting and enhancing nature and heritage 51% of new developments had Life 12 since 2014. We participate in various >>By 2020: Seek to create a net positive a biodiversity action plan. Safeguarding the environment is one of our impact on biodiversity and ecology technical and planning government and 28 industry groups via the HBF. core principles. We aim to avoid disruption throughout our development portfolio. to habitats by managing the impacts of Since the removal of the Code for Sustainable construction, and enhance biodiversity by Homes by the government in 2015 we have encouraging the planting of native species, continued to respond to local authority and including a space for nature within planning policy requirements and the variance designs. Our unique national partnership with in standards across England, Wales, Scotland the RSPB aims to set a new benchmark for and Greater London. nature-friendly housing developments.
21 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable places to live continued
How we’re leading construction Addressing the homes shortage with quality developments We’re working closely with government to address Britain’s homes shortage including Barratt continue to prioritise through the HCA’s recently launched £2bn high quality design and Accelerated Construction Programme, which placemaking, despite the aims to accelerate the construction of new pressure to build more homes on public land. homes, faster. Our Hollygate Park development in Nottinghamshire delivers high quality homes at pace. The former colliery site acquired Simon Bayliss from the HCA will deliver 450 homes, Managing Partner, HTA Design LLP including 141 that are affordable. This year, 146 homes were completed, equating to 2.8 per week, twice the rate of an average site. Sixteen affordable homes were completed trialling a large block format system. This increased completion speed by between three and five weeks, reducing construction waste and bricklayers required. Local training and employment has been prioritised in partnership with 56 Rushcliffe Borough Council, the CITB and community youth initiative Positive Futures. Six apprentices are directly employed from Built for Life the local area. accredited developments Built on an ex-colliery site, Hollygate Park uses offsite methods to speed up construction
22 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable places to live continued
Our performance or conveyancing solicitors may take on this. and West and East Yorkshire. At Kingsbrook, Enhancing biodiversity onsite We will monitor this on a development-by- Aylesbury, we are encouraging habitation and Placemaking and community infrastructure Continue to embed our ‘Growing with Nature’ development basis and endeavour to work monitoring results to evaluate success. guide within our housebuilding divisions and With 17,395 homes completed this year, more closely with local authorities during the release a guide on planting wildlife friendly show we’ve increased our output while maintaining planning application and development stages. gardens and a gardening guide for customers. a quality service for our customers. Our 5 Star Charitable contributions reached Our focus for the future rating in the Home Builders Federation (HBF) Land buying and design customer satisfaction survey was retained £1,118,495. We donated £765,922 of which Great Places strategy and promotion £266,486 was match funding for divisions. Continue to ensure our land buying and design for the eighth consecutive year. We completed Reinforce strategy for developments to Employees generously contributed £223,257 decisions reflect government policy towards 3,488 affordable homes, representing 20% achieve Great Places Silver Standard by 2020 through fundraising efforts. Other fundraising household growth, affordable housing, of all homes we completed. 74 of our site and promote Great Places with internal and accounted for £129,316. downsizers and first-time buyers, and managers won NHBC Pride in the Job Awards. external stakeholders. integrate this through continued commitment We have secured 20 new Built for Life Protecting and enhancing nature and heritage Investigate Great Places outcomes to our Great Places design principles. accreditations. We now hold 56, more than We rolled out our new ‘Growing with Nature’ the rest of housebuilding industry combined. guide for divisional technical teams to further Develop an approach to investigate customer, Biodiversity net gain guidance development Of these, 14 are rated ‘Outstanding’. community and local authority social outcomes enhance ecological gains on developments. Participate in CIRIA, CIEEM, and IEMA steering from Great Places design principles. New plotting guidance for developments, We are sponsoring CIRIA, CIEEM and IEMA group, drafting good practice guidelines with training for senior leadership, land and to develop guidance on how to deliver relevant to the industry. technical directors has aided our divisions biodiversity net gain good practice principles. to achieve efficient layout coverage using Bespoke swift bricks are now being installed good design principles. into our new homes. Around 175 have been installed across sites in Exeter, Aylesbury We have introduced house types to address growth in the market for downsizing, identified through strategic housing assessments, such as larger two bedroom homes. Our new Sustainable places to live housetype ranges enable our Divisions to maintain a strong focus on delivering quality Built for Life Publicly accessible greenspace Sustainable travel schemes aimed Connections to community low-carbon, energy efficient housing. accredited developments or parks incorporated at reducing car dependency heating networks (annual number) (% developments) (% of developments) (no. LCU26) We have noticed an increasing number of local authorities establishing their own energy supply companies, making the development dependent on an offsite heat and hot water 20 73 32 1,558 supply. This brings challenges in respect of ensuring security of supply at the end of the supply contract, the commercial competitiveness of these local authority-led energy companies both for the developer 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 and end user and the potential view lenders 8 24 4 20 57 58 68 73 11 11 28 32 1,100 1,600 2,059 1,558
23 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable and Below: A timber system component responsible is lifted into place sourcing To work in partnership with our supply chain and sub-contractors to operate responsibly and resource efficiently.
24 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable and responsible sourcing continued
Our approach process which reviews systems and planning capability to mitigate supply risks. Why this matters most Our supply chain and sub-contractor labour force is integral to our business, so close Employment, skills and ethics A flexible, engaged and innovative supply chain engagement and collaboration is vital to and sub-contractor workforce that works and deliver quality homes. This means working We treat sub-contractors and suppliers together to think about the materials we with fairness and respect and we expect plans alongside us means we can take on the use, the way we build homes, the waste the same in return. Prompt payment of we produce and the emissions that arise our sub-contractors and suppliers is a key challenges of skill shortages, limited availability during manufacturing. As Britain’s largest commitment. We have zero tolerance for of materials and reducing carbon emissions. housebuilder, we have a considerable any form of Modern Slavery and ensure that influence on the UK building supplies industry our suppliers have the support they need to and labour force. We aim to use this influence meet our sustainability standards and future positively for a more sustainable industry legislative change. Targets and performance overview supply chain. Safeguarding the environment We further communicated our business and sustainability Group Procurement leads the strategic We work with suppliers on four main areas: goals to our suppliers at our annual supplier conference and management of our supply chain for construction materials. We negotiate Group Resource efficient design: Offering innovative through a workshop exploring sustainability and supply chain level agreements for relevant products and sustainable products. See Investing in capacity issues. Our new supplier process is being reviewed to deliver quality, cost and sustainability innovation and development. through internal audit. benefits, with a focus on long term strategy. Waste minimisation: Reducing Around 95% of our procurement spend on packaging waste while still protecting housebuilding materials is through this route. materials. Encouraging take-back and Our labour sub-contractors are managed recycling schemes. locally by our divisions. With this comes a Efficient, low-carbon supply chain: Our targets Our performance responsibility to pay for work promptly and Manufacturing construction products protect employment, as well as engaging >>Continuous improvement and innovative 160 Group and London suppliers generates seven times the carbon emissions with our suppliers to overcome shared of our own operations. Resilience depends solutions developed in collaboration with are members of the Supply Chain sustainability challenges. our supply chain. Sustainability School. on suppliers improving energy efficiency You can read our Sustainable Procurement and reducing greenhouse gas emissions. >>Maintain 100% timber sourced from 100% of all timber procured through and Timber Sourcing policies on our website. sustainable sources (FSC/PEFC ) Group timber agreements is from Biodiversity and habitats: Ensuring the for Group timber agreements.17 sustainable sources (FSC/PEFC). significant natural resources we and our Our focus areas sub-contractors use are sustainably and Building supplier sustainability capacity responsibly sourced. We engage with our suppliers through the sector-leading Supply Chain Sustainability School and our annual supplier conference. We are improving our supplier assessment
25 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable and responsible sourcing continued
How we’re leading construction Using low-carbon and recycled materials As the largest national housebuilder by volume, we purchase a considerable amount Developers and supply chains of construction materials. We source face significant social and responsibly by purchasing materials which environmental challenges with reduce carbon emissions in our supply chain, every project so it is vital that making use of recycled content to reduce waste and raw material use. workforce skills and knowledge are up-to-date. Insisting that About 70,500 of our windows with a recycled content of 14% were purchased in 2016 from Group suppliers engage with Eurocell, and we use round 100,000 cavity the Supply Chain Sustainability closers per year sealing window cavities in School, this access to learning walls. All cavity closer content is recycled, resources and support helps the showing the environmental potential in using circular economy principles. sector to upskill longer term. We purchase millions of roof tiles per year. Whilst roof tiles, clay or concrete, will Richard Bayliss generally require significant amounts of Sustainability and Innovation material, the interlocking system of the Strategy Lead, CITB Forticrete Gemini tiling product we purchase requires up to four times less. That reduces waste and carbon emissions caused by the production process, on the home as well as by vehicle movements. The use of Gemini interlocking roof tiles Eurocell recycle saved an estimated 1,358 tonnes of CO2e approximately 40,000 in their manufacture in 2016. 160 windows per year
Group and London suppliers are Supply Chain Sustainability School members
26 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Sustainable and responsible sourcing continued
Our performance Safeguarding the environment Our focus on the future Communicating achievements Managing our supply chain Efficient low-carbon supply chain: See case E-invoicing Celebrate supply chain and sub-contractor study on page 26. Despite shortages in some sustainability achievements internally All of our construction materials suppliers, Move remaining top 40 suppliers by invoice materials such as bricks and roof tiles, we and externally. about 160, with Group-wide agreements volume to e-invoicing. continue to source 90% of our construction are now members of the Supply Chain materials within 50 miles of our developments, Sustainability School. Supply Chain Sustainability School minimising both environmental impact Suppliers were updated at our March and costs. All construction material suppliers to be Supplier Conference on progress against our at Bronze stage by December 2017. Top 20 Waste minimisation: We are conducting sustainability strategy. A new half-year update sub-contractors by value to become members ongoing trials to establish a baseline for on our sustainability performance was sent by March 2018. supplier packaging reduction. out in May to Group suppliers and around 4,000 division stakeholders local to our divisions We will conduct a workshop in 2018 to engage Packaging reduction including local suppliers and sub-contractors. suppliers on waste minimisation solutions. Assess outcomes of supplier packaging reduction trials at in Exeter and the North East We have reviewed for electronic invoicing Uptake of the Dulux Decorating Centre paint and hold a supplier workshop. suitability the 40 suppliers that send us the recycling scheme has improved with 11,134 highest volume of invoices. This could enhance tins recycled this year, 4.85 tonnes. efficiency and reduce paper invoicing by 63% Modern Slavery when fully actioned, with five suppliers moving Biodiversity and habitats: We engaged WWF’s Ensure training is embedded in induction to the new system so far. Global Forest and Trade Network (GFTN) to processes. Complete Modern Slavery risk benchmark our performance in the Timber assessment process for sub-contractors, Ethical labour standards in our supply chain Scorecard initiative, scoring 2 out of 3 trees. agency and temporary workers, materials This highlighted some improvements to make suppliers and IT suppliers and review annually. In line with the Modern Slavery Act 2015, we to our disclosure. All our Group agreement reviewed the risks in our construction materials, timber suppliers hold up-to-date chain of Renewable energy sub-contractor and agency worker supply custody documentation representing 100% chains to publish a public statement on our PLC by value of the timber we source. Review and implement low carbon energy website. Clear information and resources for sourcing for sites and offices. suppliers and sub-contractors is provided via the Barratt commercial website. Timber sourcing Initial risk assessments revealed a low overall Test compliance with timber sourcing risk, though this was higher for some trades policy for group agreement and locally e.g. road surfacing, cleaning and landscaping. sourced timber and timber products. Over 1,000 employees have now received Embed annually and introduce a year-end training on Modern Slavery via an e-learning compliance checklist. module, giving instructions on what checks to make and how to raise concerns. Read our Modern Slavery statement here.
27 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Left: Light gauge steel frame (LGSF) Below: Fusion Building Systems’ LGSF manufacturing facility
Investing in innovation and development To maintain and improve our high standards of performance through innovation and development across all aspects of our business, and for our customers and stakeholders.
28 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Investing in innovation and development continued
Our approach Our focus areas Why this matters most Leading construction, the theme of this report, Embedding innovation in our business is one of our core business priorities. We need to increase build efficiency while We use a four-stage New Product Introduction To increase the productivity of our sector process, covering: product identification; maintaining safety and quality standards and and deliver the highest quality homes, we supplier assessment and cost analysis, responding to skills shortages. Limiting the need to focus on all aspects of building and identifying, monitoring and measuring on a embrace the best new methods of onsite and trial site, and developing a roll out strategy. environmental impact and quantity of raw offsite construction. This allows consideration of a wide range of products in the first instance, quickly materials we use is also imperative. Improving our construction processes prioritising and progressing those with most can minimise delays, utilise skills more potential. It enables us to test many new effectively, use resources efficiently and cut technologies simultaneously, spreading waste. Using innovative design techniques risk and maximising opportunities. Targets and performance overview to speed up the design process and improve Trials of offsite construction methods have continued communication between partners is key. Collaboration to progress and expand, used in 2,575 completed homes We take a robust and systematic approach Embedding change relies on having excellent from Southampton to Aberdeen. to introducing new technologies, working working relationships with specialist closely with stakeholders to address quality sub-contractors and employees. Over the and customer interests. past year, we have focused on strengthening this, codifying our experience of using new We anticipate the changing needs of methods of construction to increase efficiency. customers through customer research Divisions and sub-contractors are encouraged and insight, helping them live more to try new methods in the short term to deliver sustainably through the new opportunities considerable advantages in the medium and technology offers. Read more about offsite long term. Our targets Our performance construction methods. >>By 2020: Complete 20% of units using 17% of units completed using Working with external stakeholders offsite construction techniques against offsite technologies. 18 With government interest in new technology 2014 baseline. to address the homes shortage, we have presented to the Treasury, Department for Communities and Local Government, mortgage lenders, warranty providers and surveyors to ensure homes built using offsite methods provide what is required. We hosted site visits for representatives from a number of agencies to share the processes we are using over the past year.
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Investing in innovation and development continued
How we’re leading construction Large format block construction Large format block technology – an efficient and sustainable alternative to using traditional blocks – provides a potential NHBC is working closely with answer to future shortages of both blocks Barratt Developments and SIG/ and bricklayers. It promotes energy H+H Celcon on the development efficiency through reduced joints. of large format block systems. Our trial of large format block at Norton Homes at Bottesford using this Farm, started November 2016, will see 162 units completed, with 25 units built in 2017 by system have been accepted for partners SIG (I-House team) and H+H Celcon. NHBC Buildmark warranty and The technology supported the building of insurance protection. these homes at a rate of around 0.8 per week, about 2 times faster than a traditional build for getting the home in the dry. Neil Smith Due to the similarity of large format block to Head of Research & Innovation, NHBC traditional block, sub-contractors required less time to familiarise with the new system – improving roll out speed. The technology has shown opportunities to reduce waste and enabled us to work with single contractors for a smoother process. At our trial at The Wickets, Bottesford, where the method was also used, we were able to show initial savings of up to a skip of waste 17% per unit.
Units completed using offsite technology
Large format block construction at Longford Park, Banbury
30 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Investing in innovation and development continued
Legally completed units delivered using offsite Our performance We are rolling out the technology in our Our focus for the future Mercia and Yorkshire East divisions as an construction technologies With 17% of our homes now completed using Right first time offsite construction techniques, we are on optional customer extra. Marketing and Total Agree and implement a strategy to embed course to reach our 2020 target. communications have been produced to aid customers in its use, and we are now ‘right first time’ ethos. 2,575 All of our 27 housebuilding divisions now collecting customer feedback. use offsite construction methods in their Offsite construction (17% of 2014 LCU) construction programmes. Aiding our Building Information Modelling (BIM) enables architects and engineers to collaborate more Continue NPI stage 4 trials for light gauge expansion in offsite technology is our new steel frame, large format block, pre-cast (2016: 2,206) Barratt housetype range for 2016, which was efficiently, and in 12 months we added 25 suppliers with BIM objects on to our library. garages and timber frame, quantifying specifically designed with modern methods environmental and social gains. of construction in mind. We are working to get the others involved in 2018. Trials of technologies shown to be particularly Customer care workshop Timber Roof effective have now been extended and rolled Other offsite methods under trial include frames cassettes Conduct a sandpit-type workshop event with out across a greater number of builds (see pre-cast garages, cassette roofs, stairwell protection, and pre-cast ground floors. customer care maintenance contractors and table, left). Pre-site start up meetings now sub-contractors. involve all stakeholders including: NHBC, We will report further on the results of these 1,270 1,190 trials next year. sub-contractors, site team and offsite Smart energy systems 2016: 988 2016: 1,109 manufacturers – an important part of This year we held an event of 10 suppliers, Continue to offer this technology to customers, obtaining buy-in early. Prefabricated utility Large format NHBC, CIRIA, universities and consultants to learning from their feedback and integrating cupboards block discuss different design and material options Hive data within our data collection systems. Large format block that can ensure our homes are future proofed Our large format block approach has now to take account of climate change. 0 103 been trialled on five sites with 103 completed 2016: 90 2016: 10 units. We are now considering a further seven sites for next year. Light gauge Offsite ground steel frame floors Light gauge steel frame This offers further potential to diversify 2 9 materials used, and increase build speed. It is being trialled across four developments, 2016: 9 2016: 0 with two of these starting next year. Offsite The technology is well suited to apartments garages and our Barratt 2016 range. Other innovation developments 1 Hive smart energy systems allow customers 2016: 0 to control their heating from smartphones.
31 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Building Excellence vision
Our vision is to lead the future of housebuilding by putting customers at the heart of everything we do.
Customer first Great places Leading construction Investing in our people
Our principles
Building strong Keeping Being a Safeguarding Ensuring the financial community people safe trusted partner the environment health of our business relationships
Delivering sustainable shareholder value
We will tackle our most important sustainability issues by driving progress across our four Focusing on our vision, priorities and principles means that we act sustainably and responsibly: Business Excellence priority areas, each of which has an action plan for the short and long delivering value across the supply chain, creating sustainable returns for shareholders, term. In doing so, we’ll make quick improvements and far-reaching changes that define our providing customers with a first-class experience, and making a positive difference in the roadmap to 2020. Our four priorities are underpinned by five core principles, which we apply communities where we operate. at all times and in everything that we do.
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Glossary and endnotes
1 Legally completed units. All figures include joint ventures unless ARA Annual Reports and Accounts 2017 stated otherwise. 2 How big will the UK population be in 25 years time? (ONS, 2015). Building for Life 12 This is the industry standard, endorsed by the Government, for well-designed homes and 3 Future Homes Report, Barratt Developments. neighbourhoods that local communities, local authorities and developers are invited to use 4 https://www.gov.uk/guidance/carbon-budgets. to stimulate conversations about creating good places to live 5 UK statistics on waste (DEFRA, 2016). 6 Land use change statistics in England 2015-2016, (DCLG). CIRIA Construction Industry Research and Information Association 7 State of Nature (Hayhow et al., 2016). 8 The Construction Industry: Statistics and Policy (Rhodes, 2015). Cited here. CITB Construction Industry Training Board 9 Women in the UK construction industry in 2016, (Ranstad). CSCS Construction Skills Certification Scheme 10 2014-based household projections in England 2014 to 2039, DCLG (2014). 11 National new home customer satisfaction survey (HBF, 2017). DCLG Department for Communities and Local Government 12 SR 2015 stated IIR level at 381 injuries per 100,000 employees. DEFRA Department for Environment, Food and Rural Affairs 13 We report waste generation in tonnes of waste per 1,000 sq. ft.. Our Group target is based on our 2015 baseline of above ground construction FSC Forest Stewardship Council waste generation. 14 Carbon intensity is tonnes of CO2e per 1,000 sq. ft. We measure Scope 1,2,3 FY Refers to the financial year ended 30 June emissions which include energy and fuel use onsite, in offices and includes HBF Home Builders Federation all business mileage. Our Group target is based on a 2015 baseline. 15 IBM’s high-performing UK norm is the 75th percentile of the UK company HCA Homes and Communities Agency scores, measured across 199 organisations. 16 Our own Great Places Silver standard is equivalent to a Building for Life IIR reportable Injury Incidence Rate 12 accreditation. ISO 14001 An international standard related to environmental management systems. 17 The FSC and PEFC are well established certification schemes for the sustainable sourcing of timber. JVs Joint ventures 18 Total number of completions in 2014 was 14,838 (including joint ventures). NHBC National House Building Council 19 Based on 18kg per reusable pallet. Unusable pallets have been excluded as these are shredded and use as animal bedding and do not represent Numbers Unless otherwise stated all numbers are as at 30th June 2017 throughout this 2017 Sustainability waste avoided. report 20 Estimate based on eight hours lighting, seven days a week. 21 Actual metered data 1st Jul 2016-30th Jun 2017. Emissions factor based OHSAS 18001 An internationally applied British Standard for occupational health and safety management on market based data, sourced from SSE. systems 22 Based on costs avoided, plus reduction in KWH consumption. 23 Based on reduced waste removal costs and reduced energy costs, plus ONS Office for National Statistics receipt of RHI. PEFC The Programme for the Endorsement of Forest Certification 24 Calculated using data sourced from invoices and direct data measurement. Carbon emissions are calculated in line with DEFRA Environmental RSPB Royal Society for the Protection of Birds Reporting Guidelines (including mandatory greenhouse gas (GHG) SHE Safety, Health and the Environment emissions reporting guidance, dated 2016 and Greenhouse Gas Protocol). GHG emission factors outlined in the DEFRA/DECC ‘UK Government conversion factors for Company Reporting’ June 2016. Wilson Bowden Developments greenhouse gas emissions are not included in our corporate carbon target or baseline. 25 Tonnes of CO2e – this means tonnes of carbon dioxide equivalent – used as the recognised measure of the basket of six greenhouse gases. 26 In line with the revised Greenhouse Gas Reporting Protocol we are reporting location based and market Based Scope 2 electricity data. Market based data is based on the actual electricity generation source; location based refers to the average grid electricity carbon emissions equivalent. 27 Bracketed number refers to carbon intensity using a market- based approach. 28 Our developments that require outline planning consent are required to have a Biodiversity Action Plan.
33 Sustainability report 2017 – Barratt Developments PLC Attracting, inspiring Sustainable and Investing in innovation Keeping people safe Operating efficiency Sustainable places to live and investing in people responsible sourcing and development
Indices, benchmarks and memberships
Registered office Barratt Developments PLC Barratt House Cartwright Way Forest Business Park Bardon Hill, Coalville Leicestershire LE67 1UF Tel: 01530 278 278 Fax: 01530 278 279
Corporate office Barratt Developments PLC Kent House 1st Floor 14-17 Market Place London W1W 8AJ Tel: 020 7299 48 Fax: 020 7299 4851 We welcome comments and feedback on our reporting. You can contact us here or at [email protected] www.barrattdevelopments.co.uk
34 Sustainability report 2017 – Barratt Developments PLC