Sustainability Report • 2017 Our One Approach to Business
NG Bailey Sustainability Report 2017 1 Contents Welcome
WELCOME 05 NG Bailey’s vision is to be the best at commitment to communicate our creating exceptional environments for performance against One Approach to ABOUT US 04 present and future generations. To our people, customers, shareholders, do this responsibly, we consider both suppliers, and other interested OUR PERFORMANCE 06 our current operations and our future stakeholders. We are pleased to legacy. The best way to achieve this is report that we have achieved, or are through our projects, and by working on track to achieve, most of our One One Approach with our people, customers and Approach commitments. However, communities. As a result, in 2013 we we recognise that there is still OUR PROGRAMME 08 launched an ambitious sustainability work to do in some areas, and programme – ‘One Approach’. so we must maintain our focus SAFETY 10 to ensure we achieve our long One Approach is a set of 18 term goals by the close of CUSTOMERS 12 commitments across six key the programme next year. areas which enable us to be a responsible business. This report demonstrates how PEOPLE 14 we are becoming a successful One Approach, together with our and sustainable business OUR TALENT 15 business strategy, is supported by a with a strong future. This series of detailed policies on matters is achieved by maintaining APPRENTICESHIPS 16 such as ethical working, bribery our profitability, and using and corruption. They help to define One Approach to manage ENVIRONMENT 18 what our values of passion, integrity our non-financial risks. and excellence mean in practice. SUPPLY CHAIN 22 We recognise that in order This year, for the first time, we to remain at the top we have included details of our must continue to commit to COMMUNITIES 24 financial performance to reflect new and challenging targets. our commitment to being both a Reporting Overview 28 profitable and responsible business. We value your feedback. Please email comments to SAFETY 29 This report forms part of our ongoing [email protected]
CUSTOMERS 29
PEOPLE 30
ENVIRONMENT 30 DAVID HURCOMB SUPPLY CHAIN 31 Chief Executive
COMMUNITIES 31
2 NG Bailey Sustainability Report 2017 NG Bailey Sustainability Report 2017 3 About Us
NG Bailey was formed in 1921 and has grown to be the UK’s largest independent engineering, IT and facilities services business. The long term sustainability of our business is underpinned by our company mission, vision and values.
What do we do Our Mission Chester Storyhouse Theatre, Engineering division
NG Bailey is a family- To responsibly design, build, owned business with operate and maintain buildings, a proud heritage and infrastructure and IT services. a proven track record of achievement. These strengths have enabled us to become the largest independent engineering, construction and services Our Vision company in the UK.
Our success is marked by a To be the best; creating continuing customer focus exceptional environments for to do things better and present and future generations. to meet the challenges of the day, however tough. Spurred on by a growing demand for creative change, we relish the opportunity Our Values to explore ways of doing things differently – we want each and every one We continue to live our values of our customers to get the of passion, integrity and very best of what we do. excellence in all that we do.
Trinity Shopping Centre Leeds, Facilities Services division
Our capabilities include
ENGINEERING FACILITIES IT SERVICES We provide sustainable SERVICES We design and install data mechanical and electrical We provide mechanical network and communications engineering services, with a and electrical, planned and infrastructure. We also focus on building infrastructure, reactive integrated building deliver managed service and offsite manufacture and rail. services maintenance. maintenance contracts.
4 NG Bailey Sustainability Report 2017 South Bank Tower London, IT Services division NG Bailey Sustainability Report 2017 5 Our Performance
2016/17 £500m £12m £902m FORWARD TURNOVER OPERATING PROFIT ORDER BOOK
2015/16 £818m £408m £6m FORWARD TURNOVER OPERATING ORDER PROFIT BOOK
I am delighted to report that construction, rail/infrastructure 2016/17 was a very strong year with and services. This continues to be growth across all of our divisions, our strategic goal. The success of Engineering, Facilities Services and IT the strategy is reflected in a strong Services alongside an improvement operating performance that has in Group sales of 23% on 2015/16 to improved from £6m in 2015/16 to £500m. The business is delivering on £12m for this year. This reflects the the strategic plan ahead of time and strong growth in both our services the strategy is working. and construction markets. We have also invested in the development We have delivered our strategies of new sectors, which have been to achieve a balanced business identified as strong areas of growth across the three sectors of building for the future of the business.
MIKE PORTER Chief Financial Officer
6 NG Bailey Sustainability Report 2017 London Bridge Station, Engineering division NG Bailey Sustainability Report 2017 7 Our Programme
Driving sustainable improvements in performance and generating value throughout our organisation.
NG Bailey has a proud heritage of operating as supply chain and communities. So far, we have used a responsible business and that we should be our in-house expertise to reduce our carbon footprint accountable for how we behave. As an employer and invest the energy and skills of our people to of over 2,800 people across the UK and Ireland, we benefit the communities we serve. We understand the recognise that we have the opportunity to impact and importance of striving for environmental and social influence our employees, suppliers, customers and sustainability in order to build a better future for us all. the communities in which we work for the better. The challenge is complex, but we take our economic, environmental and social responsibilities seriously. We invest in being a responsible business and sustainability continues to be a priority for NG Bailey As our One Approach strategy finishes next and for many of our customers. Our One Approach year, in the coming year we will undertake programme has seen the business commit to the comprehensive stakeholder engagements. This will delivery of 18 commitments by 2018. Our six areas of ensure that we continue to address those issues
focus include safety, customers, people, environment, that are most important to our stakeholders. HSBC Tankersley Plant Room, Offsite Manufacturing
Our Six Key Areas of One Approach
Health & Safety Customers People
Environment Supply Chain Communities
8 NG Bailey Sustainability Report 2017 Midlands Metropolitan Hospital, Offsite Manufacturing NG Bailey Sustainability Report 2017 9 HEALTH & SAFETY CUSTOMERS PEOPLE ENVIRONMENT SUPPLY CHAIN COMMUNITIES
ONE APPROACH: Health & Safety Safety is a key part of NG Bailey’s philosophy. We continually strive to reduce risks and protect our people by building a culture where safety is first and foremost. Increasingly, this is true of health and wellbeing too. Our Performance
The Safety First & Foremost strategy is to send our people home safe and well at the end of the day, every OUR RIDDOR AND NEAR MISS REPORTING day. We aim to reduce risk and protect our people and stakeholders, by building a culture where safety 3761 really is first and foremost. When an incident does 3226 arise we will always fully investigate the matter and share learnings to improve our future performance. 1823
In 2016/17 we experienced 15 RIDDOR incidents that impacted five of our employees, nine of our contractors and one member of agency staff. The majority of these incidents were the result of a 15 slip, trip or fall. Although our overall performance 6 this year is short of our high expectations, our 5 accident frequency rate (AFR) measures 0.11 and remains one of the lowest in our field.
We are pleased to report that our near miss reporting 2014/15 2015/16 2016/17 has seen a year on year increaseof 17% since 2016. Number of recorded near misses We recognise that we must continue to encourage our people to report near misses so we can seek to Number of RIDDOR incidents reduce the likelihood of incidents across our business. Our Achievements
DRIVING BETTER PERFORMANCE We face significant health and safety risks everyday as part of our project delivery, and by using the experience and skills of our people we are able to OFFSITE MANUFACTURING To reinforce our commitment to In July 2016 we launched our Executive Leadership Group led manage that risk appropriately. This year several of our projects and sites have excelled in their SUB-DIVISION health and safety, this year we new Health and Safety strategy, by the Managing Director of our management of health and safety risk by achieving have developed a new Safety First G.L.O.B.E (Governance, Leadership, Engineering division. This Group will a significant amount of hours worked injury free. As & Foremost mission statement. Ownership, Behaviour and actively monitor and manage our part of our Safety First & Foremost strategy we aim to This statement is signed by our Environment). This strategy has been performance and direct learning and share best practice and learning across our business. 750,000 Group Operating Executive and puts designed to support Health and action where necessary. In addition the health firmly back into health Safety performance improvements we will be rolling training out to Several of our projects and sites have excelled in HOURS and safety and at the top of our with each division implementing our people across the business in managing their health and safety risk and achieved agenda for 2017. We recognise that their own specific G.L.O.B.E action mental health awareness and the the following milestones: WORKED we need to nurture a health and plans. The forthcoming year will see risks associated with dust, noise, wellbeing ethos that protects our us continue with the implementation display screen equipment, driving, Our offsite manufacturing business and a INJURY people, suppliers and customers of G.L.O.B.E with business wide and the impact of drugs and alcohol. major manufacturing project both achieved from workplace health risks, proactive KPI’s to drive better 750,000 hours worked injury free FREE empowering them and enabling performance across the Group. them to make informed lifestyle Another engineering project in our choices. This includes the mental As part of our commitment to Southern region recently achieved 500,000 hours worked injury free. health and wellbeing of all our deliver a leading health and people, an issue we know needs well-being programme we have specific attention in our industry. launched a Health and Safety
10 NG Bailey Sustainability Report 2017 Dave Priceman, Engineering division NG Bailey Sustainability Report 2017 11 HEALTH & SAFETY CUSTOMERS PEOPLE ENVIRONMENT SUPPLY CHAIN COMMUNITIES
Applying One Approach in Our Business
ENGINEERING
NG Bailey has been pioneering the use ºº Offsite manufacture optimises ONE APPROACH: of offsite manufacture for many years resources therefore minimising and our specialist business unit offers waste and potential re-work costs a modern and innovative approach to engineering. Offsite manufacturing can ºº It reduces the traffic impact on present many benefits for our customers the local community as deliveries Customers and communities. For example: to sites and number of people required on site are reduced. ºº It is a safer alternative to onsite production We are focused on customer-driven, value-based solutions that provide tangible benefits and assembly, meaning the likelihood of accidents and serious injuries is reduced for all. We pride ourselves on our ability to truly understand our customers’ needs and objectives, and then to deliver projects and services that will exceed expectations. FACILITIES SERVICES | ENERGY Our Performance Our Energy team provides an innovative NET PROMOTER SCORE (NPS) and cost saving energy service that seeks to take responsibility for the optimisation and A Net Promoter Score of 30 is world efficient operation of buildings by managing class and is what we are striving to assets from data through to action. achieve by 2020. During 2016 we 25 25 We have demonstrated this approach increased the number of responses through our ongoing relationship with to our annual customer survey by Landsec. Our work saw us deliver energy over 60% and saw positive movement savings of over 9,550,000kWh through AIS BMS, the building energy management within the scores for two of our 18 a combination of measures, including systems provider, and won the ‘Partners divisions. We maintained our overall effective air quality control using existing in Sustainability’ award at the Premises score for 2016/17 at 25 and continue HVAC installations and BEMS. Our efforts and Facilities Management (PFM) Awards to strive towards achieving a net 2014 2015 2016 resulted in an 11% reduction in energy and 2016. In further recognition of our promoter score of 30 by 2020. an equivalent cost saving of over £500,000. work with Landsec we won The Energy 9.5m Managers Association Most Inspiring At one Landsec location, we partnered with Energy Reduction Project Award 2016.
BUILDING INFORMATION MODELLING (BIM) Energy savings of over 9,550,000kWh We have been exploiting the benefits of BIM technology for many years, having developed systems and internal Landsec and NG Bailey won The EMA As carbon processes for the benefit of ourselves £500k ‘Most Inspiring Energy Reduction emissions are the and our customers. NG Bailey uses BIM to bring together information Project Award 2016’ due to their primary cause of about every component of a building, ability to successfully manage a climate change, the in one place. Bringing information project across multiple sites using project’s emphasis together in this visual form allows us different technologies. Landsec had on reducing to identify clashes in the design of Cost savings of set ambitious targets which have been energy use has not the building. These can be rectified over £500,000 before construction commences, for Landsec met and exceeded by this collaboration. only led to cost subsequently reducing waste in Judges were impressed by the ability reduction, but it is materials and unnecessary costs. L–R: Russell Kane (presenter) Steve Campbell (Technical Director, NG Bailey), of Landsec and NG Bailey to work in also essential in meeting and exceeding Paul Marsland (Design and Development Engineer, NG Bailey) and Award sponsor partnership across a broad estate Landsec’s sustainability targets. The team at NG Bailey has recently that included people from different been involved in the development teams showing their commitment to Lord Redesdale of BIMHawk with the Chartered based system that optimises and ‘Partners in Institute of Building Services simplifies the standard parameters recently won the ‘BIM Initiative of Sustainability’ sustainability and energy management. CEO, Energy Managers Association Engineers (CIBSE). BIMHawk is for BIM objects. Following its the Year’ award at the Heating & award a new, freely accessible web- launch in November 2016, it has Ventilation (H&V) News Awards.
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ONE APPROACH: People SPOTLIGHT ON: Our people are our greatest asset at NG Bailey. We know that the talents and motivation Our Talent of our people are vital to our success, making NG Bailey a great place to work. The skills, capabilities and commitment to excellence of our people are what make us Our Achievements stand out as the partner of choice in our industry. Key to this, is ensuring we realise the full potential of every individual, and make the most of their talent and skills. OUR PULSE SURVEY OUR MOST RECENT PULSE Our Pulse Survey is undertaken SURVEY SHOWS THAT... SOLVING THE SKILLS SHORTAGE on a quarterly basis and allows BEST COMPANIES THIS YEAR HAS SEEN US... us to measure our performance ACCREDITATION The talents and abilities of all our resettlement services for those against strategy, along with Of our people are people are key to our success. leaving the Royal Navy, Army, Royal being a key feedback tool in proud to work for NG Bailey is proud to have been this organisation reaccredited as a ‘One to Watch’ However, we are also aware that Air Force and Marines. Regardless understanding how our employees 84% for the third year in a row by the our industry may be about to face of time served, all members of feel and what they value. All Sunday Times, Best Companies To a major skills shortage. That is the Armed Forces benefit from responses are examined by our Of our people believe Work For Index. The survey was why as part of our people strategy CTP support when leaving. HR senior leadership teams we put safety, first completed by nearly 1,100 employees to Attract, Recruit and Retain the who review the feedback in 91% and foremost and two of our three divisions best people for NG Bailey, we By partnering with these detail and develop appropriate have increased their ratings in the have developed a recruitment organisations we have been actions to mitigate concerns. Best Companies Index. Where we strategy that embraces multiple able to engage with a large pool Of our people find have experienced decreases in of skilled and experienced ex- Exceed the UK company average working with their routes to employment from a This year we launched a new and specific areas of our performance score of 3.2 on Glassdoor colleagues rewarding broad range of backgrounds. military talent across a number improved Pulse Survey that was 85% we are using the feedback from of disciplines and career stages. our employees to support and open to all employees across NG One element of the strategy is the formulate a refreshed engagement Develop a strategy Bailey.It was specifically designed We are working closely with both that sees us working Believe our people strategy for delivery over the next partnership we have formed with to provide further insight into our with the Career follow the NG Bailey 18 months. Our next submission to The White Ensign Association and partners to support ex-military employee engagement levels. Values at work Transition Partnership 75% the Sunday Times Best Companies the Career Transition Partnership service personnel gain employment and the White and transition into civilian life. Our Index will now be in 2018/19. (CTP). The White Ensign Association Ensign Association to is a Charity offering personal help aim is to increase the number of provide employment and advice for all serving and applications we receive for job opportunities for former members of the Royal Navy, roles from over 14,000 skilled and current and retired Royal Marines, their Reserves and experienced individuals who leave service personnel FAIRNESS, INCLUSION AND RESPECT their families. The CTP provides the Armed Forces each year. As part of our commitment to being an employer of of our choice we recognise the part that diversity and inclusion commitment plays in our organisation. We are already an Investor to embedding in People and one of only a few hundred organisations equality, DEVELOPING OUR TALENT who are proud to hold an Investors in Diversity (IID) diversity and accreditation. However, there is more than we can do. inclusion Our Leadership, Engagement and year will also see us launch a review, ensuring our approach is We continue to work closely with the National Centre throughout our Performance programme (LEAP) refreshed talent development both transparent and equitable. for Diversity to ensure NG Bailey remains a great place organisation has been developed in response programme. It will deliver a new, to work. We continue to strive to reach our ambition of and ultimately to employee feedback calling for improved approach on how we This programme will improve our creating an organisation which is representative and be recognised Rob Smith and Frank Clayton receiving our more structured management identify, develop and deploy talent approach to talent development, as ‘UK Engineering Company of the Year’ award reflective of the communities we work in. as an Employer development programmes and throughout our organisation. This it focusses on broadening people’s of Choice. tools to help our people manage builds on the success of our current knowledge and experience as well This year we were recognised as the ‘UK Engineering David Hurcomb, NG Bailey’s CEO, said “NG Bailey their people more effectively. programme and incorporates as helping them to develop the Company of the Year’ at the National Centre for wants to take a leading role in our industry’s efforts recommendations from our skills and behaviours they need to Diversity’s Grand Awards. This was in recognition to achieve a more diverse workforce”. In addition to LEAP, the next fairness, inclusion and respect be a success in their chosen field.
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SPOTLIGHT ON: Apprenticeships Completing an apprenticeship for OUR APPRENTICESHIPS NG Bailey on the Landsec contract was NG Bailey recognises the importance In 2016/17 we recruited 51 higher and degree level to employees of engaging with young people apprentices bringing our total in all five of NG Bailey’s divisions. a fantastic experience. early. Through a combination apprentice population to more It was great working of our science, technology, than 150. We recognise the value of across the London engineering and maths (STEM) apprenticeships to our business and engagement programme called continue to encourage applications portfolio and achieving INSPIRE, and our long-standing from a diverse range of applicants. quality qualifications. apprenticeship scheme, we are For the 2016/17 intake, we had a Without apprenticeship contributing to to the development 3% increase in applications from schemes, businesses are at risk Adam Donoghue of young people and beginning women and overall increased our of missing out on a number NG Bailey Apprentice to address the skills shortage. female and black, Asian and minority of benefits that this type of Facilities Services ethnic (BAME) applications to 17%. We employed our first apprentice in training can bring. Our scheme 1934 and since then have successfully Over the forthcoming year we means that we have a steady trained over 5,500 people in their will continue to develop and grow flow of employees coming chosen field. Our apprenticeship our apprenticeship programme, programme now offers 14 different building the skills we need to into the business, which helps apprenticeship qualifications across deliver the business’ current and us avoid the skills shortage a number of disciplines including future strategic objectives. The affecting others in the industry. electrotechnical, heating and programme will expand to deliver ventilation, human resources, ICT, new digital apprenticeships for our David Hurcomb Building Information Modelling IT Services division, degree level Chief Executive (BIM) coordination, quantity apprenticeships in law and project NG Bailey surveying and building services. management apprenticeships at
THOUGHT LEADERSHIP | WHAT IS THE APPRENTICESHIP OUR APPROACH TO LEVY AND HOW DOES IT IMPACT NG BAILEY? THE APPRENTICESHIP LEVY - THE THREE Cs The Apprenticeship Levy was introduced on 6 April 2017. The levy requires all employers operating in the UK, with a payroll over £3 million each year, to invest in apprenticeships. NG Bailey included in this levy and we continue to Continue recognise the value they deliver to our business through the development of Continue to expand our new staff and as an opportunity for current staff to build on their existing skills. apprenticeship programme.In 2017, we will offer 60 apprenticeship opportunities across 14 APPRENTICESHIPS - THE NUMBERS frameworks and standards. Convert Convert those elements of our Total number of trainee current learning and development apprentices curriculum to apprenticeship 131 133 155 standards wherever possible.
Number of Create programmes on offer Create new programmes such as the 6 10 12 new management and leadership apprenticeships developed by the 2014/15 2015/16 2016/17 Chartered Management Institute that we are piloting this year.
16 NG Bailey Sustainability Report 2017 Adam Donoghue, NG Bailey Apprentice, Facilities Services NG Bailey Sustainability Report 2017 17 HEALTH & SAFETY CUSTOMERS PEOPLE ENVIRONMENT SUPPLY CHAIN COMMUNITIES
ONE APPROACH: 4 | CARBON EMISSIONS BY SCOPE (tCO2e) Environment 3500 2800 We recognise that as a responsible business we must take steps to manage 2100 our own impact on the environment, both to reduce our carbon emissions, and to ensure efficient use of resources and minimise our costs. 1400 Our Achievements 700
Our environmental impacts arise from three main
categories: our office locations, business travel undertaken 1 | CARBON EMISSIONS PER EMPLOYEE (tCO2e/employee) by our employees and our project/site locations. We Direct energy - Scope 1 3124 2889 2972 already report the impacts of our office and business travel impacts and are currently working to gather Indirect energy (gross) - Scope 2 ‡ 1251 1174 942 robust data for our project and site locations so we can disclose this in future. This year we have refreshed our Indirect energy (net) - Scope 2 ‡ 1251 1009 618 * carbon footprint with a new baseline, in order to ensure 2.40 we have a clear understanding of our impacts. This has Business Travel - Scope 3 1775 1626 1957 enabled us to recognise areas where we are progressing ‡ well but also identify areas where we can improve. Our gross footprint takes into account all the energy we purchase and uses the location based reporting approach. Our net footprint allows us to recognise the benefit of our renewable energy purchases and is reported in line with the market based reporting approach. We remain committed to achieving a reduction of 20% 2.17 in CO2 emissions per employee from our baseline We recognise that it is important to report our 2 emissions (e.g. purchased electricity) have continued and are pleased to report (as highlighted in figure 1) performance on a transparent and accessible basis to decrease for the fourth year running with an overall that we have achieved a 19% reduction in our total and so we are also reporting our emissions by reduction of 25% since baseline year. This increases † scope. Our total gross carbon footprint for 2016/17 to 51% when reporting our net footprint, a measure net tCO2e footprint per employee since baseline. 2.0 2016/17 is the fourth consecutive year where we has increased 3% on the previous year. This is that accounts for the benefit of our renewable energy have achieved a year on year reduction in our office mainly due to an increase in our travel footprint but purchases. Scope 3 business travel emissions (e.g. footprint as a result of our investment in on-site overall, we have experienced a 12% decrease in our road, rail and air) have increased 21% since baseline, gross carbon footprint since our baseline year. again due to an increase in our business mileage as renewable energy capabilities (see figures 5 and 6), a result of business growth. We continue to work energy saving campaigns within the business and Scope 1 emissions (e.g. from gas, oil and LPG) have to reduce these impacts in the forthcoming year. the purchase of renewable energy from the grid. minimise the carbon impacts of our fleet and this year decreased by 22% since baseline as result of reductions have further reduced our vehicle carbon profile to 102g/ in our use of natural gas and refrigerant consumption, We have successfully reduced our waste impact across our Our business travel footprint contributed 77% to our CO2/km. Our air travel footprint has continued to decrease however, for 2016/17 we experienced a 3% increase in office portfolio to 97% this year as a result of effective waste overall carbon footprint, largely due to an increase in for the fourth year in a row and we continue to encourage our scope 1 emissions due to an increase in our fleet management. We recognise that there is plenty more to be the miles travelled across our business. We continue to our employees to use public transport where possible. mileage as a result of business growth. Our gross scope done to manage the waste from our projects and sites.
6 | SOLAR ENERGY GENERATED ON OUR SITES (kWh) 2 | OUR OFFICE CARBON FOOTPRINT (tCO2e) 3 | OUR TRAVEL CARBON FOOTPRINT (tCO2e) 5 | RENEWABLE ENERGY DERIVED FROM BIOMASS (kWh)
307,500 688,500 672,000 237,500 § 547,600 202,900 2014 2015 2016 2014 2015 2016
Mileage from vehicle travel (tCO e) Air (tCO e) Rail (tCO e) Gross (tCO2e) Net (tCO2e) 2 2 2
* Full reporting scope available on page 32 § 2015/16 restated this year due to an error in the calculation
† Total net tCO2e footprint per employee – Gross footprint that recognises the carbon benefit i.e. a reduction in carbon, associated with green tariff energy.
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ONE APPROACH: Environment
We understand the environmental challenges that face us and our customers. Therefore, we know the importance of striving for environmental sustainability within both our own operations and the services we deliver.
Applying One Approach in Our Business
ENGINEERING | RAIL CENTRAL ICT
Our strong focus on sustainability This year we have invested heavily in and energy efficiency has new video conferencing and Skype allowed us to deliver significant technology across our UK office environmental and financial locations. Through this investment benefits on our Stoke Gifford we have enabled our employees IEP project. At the facility, which to reduce the amount of time they houses the Intercity Express spend driving on business related Programme’s (IEP) new rail fleet, matters therefore reducing the risk we developed an innovative of driving incidents, as well as our lighting solution by utilising LEDs impact on the environment. Since for the external bollards and the rollout in February 2017, over high-bay lights. This will result in 650 Skype conferences have taken a saving of over 200 tonnes of 3200 place across the business and 3,200 200T CO per year. This was a key step video calls have been made by our 2 Video calls have been Utilising LEDs has in helping the project achieve its made by our staff staff. This improved connectivity is resulted in a saving environmental goals and will result since the rollout in the first step in reducing our carbon of over 200 tonnes February 2017 in a £1m saving for our customer footprint from business travel. of CO2 per year over the course of the contract.
ENGINEERING | SAVING ENERGY IN THE BUILT ENVIRONMENT
Rising energy estate wide building performance. in real time. The second, our costs and new This data combined with our energy new Technical Operations Centre legislation expertise allows us to create and (TOC) sees us offering dedicated including implement a bespoke road map technical specialists who monitor tougher energy that reduces our customers’ energy BMS systems remotely and fix any reduction and consumption and carbon footprint. problems remotely. This again sustainability We can then provide ongoing provides our customers with more targets, support to ensure that the savings dynamic energy asset management. makes it increasingly important are realised and maintained. for businesses to actively manage This year we renewed a £50m, their carbon footprint. In response In 2016, we launched two new energy five year contract, to provide to this, our energy management innovations. The first, Business M&E building fabric maintenance service offers end-to-end practical Focused Maintenance (BFM), an and energy management for 31 solutions where we work with output based strategic approach to buildings across Landsec’s London our customers to improve their maintaining and optimising buildings. portfolio. Ian Burr, Head of Property estate wide energy performance. By moving away from the industry Management for Landsec, said: standard SFG 20 maintenance regime “Having worked with NG Bailey Put simply, we gather data from we are using advanced data analytics since 2012, they have become a our customers’ building systems to to help customers understand trusted partner from an M&E and develop an informed view of their and optimise their energy assets energy management perspective”.
20 NG Bailey Sustainability Report 2017 Photovoltaic Array, NG Bailey Group Head Office NG Bailey Sustainability Report 2017 21 HEALTH & SAFETY CUSTOMERS PEOPLE ENVIRONMENT SUPPLY CHAIN COMMUNITIES
MARKET FORESIGHT EXECUTIVE COMMITTEE | THOUGHT LEADERSHIP
The UK construction and turbulent commodity prices all formed of a team of industry engineering sector faces some have the potential to impact experts, clients, suppliers, investors, unique and unprecedented the sector moving forward. developers and academics that market challenges. The post will inform and steer the NG Bailey Brexit referendum landscape As a market leading organisation, Group Operations Executive on ONE APPROACH: remains hugely uncertain and NG Bailey’s response to these strategic direction, market trends fundamental issues such as changes has been to set up and risk mitigation, exploiting exchanges rate fluctuation, labour the Market Foresight Executive opportunities and leveraging Supply Chain supply, investor confidence and Committee. This committee is the power of the network. ENCOURAGING INNOVATION 2016 SUPPLY CHAIN CONFERENCE NG Bailey is committed to sustainable and responsible procurement. We IN OUR SUPPLY CHAIN recognise that we will only be able to achieve our growth aspirations by We recognise that we depend for the supply chain to bring Our enhanced work winning heavily upon our supply chain forward innovation and creativity forging close, effective and sustainable supplier relationships. We capitalise on programme has been established in an increasingly competitive to enhance both the work winning the very best input and encourage innovation from the supply chain. to encourage a collaborative way market. We will only achieve our and operational delivery cycles. By of working with 21 of our strategic growth aspirations by forging strengthening our relationships suppliers and manufacturers. The effective supplier relationships with our supply chain we are programme has been designed and capitalising on the very able to minimise duplication and Our Achievements to enable a more sustainable and best input and innovation waste, and ensure compliance with effective way of engaging with our from the supply chain. governance and business policies. supply chain that will ultimately WORKING WITH OUR SUPPLY CHAIN deliver benefits and efficiencies for It’s for these reasons that in 2016/17 We currently have more than our customers. The programme we developed our formal supply 600 suppliers actively engaged in We recognise that our procurement ºº Created additional mixed use regeneration scheme, chain management strategy, and the Customer of Choice Strategy activities have environmental, social, apprenticeships within alongside Carillion and Durham facilitates early engagement on launched it at our Supply Chain across the Group and have ethical and economic impacts. our supply chain County Council, where links with strategic pre-tender opportunities Conference. Our Customer of Choice scheduled our next annual supply With an annual spend of over At an Engineering project in the Duke of Edinburgh Award to encourage innovation and £300m, the relationship with our Manchester we committed to Scheme give young people utilisation of shared resources, strategy is about more effectively chain conference for late 2017. supply chain plays an important up-skilling four adult trainees. valuable work placements with for the development of winning communicating our strategy and role in the success of NG Bailey. These trainees are currently us and our partners. We have solutions for our customers. pipeline and creating opportunities working through their relevant also worked alongside Landsec, We hold ourselves to high qualifications. All four are where we supported the fit out standards and so we have set out Manchester residents who and installation of lighting, whilst our expectations of our supply through this initiative will obtain providing young unemployed chain partners in our Responsible transferable skills for their future people with the opportunity to CONFERENCE SURVEY STATS Procurement Charter, Code of - a lasting legacy of the project gain work experience and develop Integrity for Suppliers and our a variety of different skills to help This combined Customer of Choice strategy. We ºº Hosted ‘Meet The Buyer Events’ benefit their future careers. The thought, preparation recognise that we should act in Subject to project requirements effort has enabled 31 good faith for our suppliers in we seek to use local workforce us to have a and timings of the event order to foster close and effective and sub-contractors where were fantastic. It gave relationships. possible. Where appropriate much better out of 10 and alongside contractors a very comfortable and we have delivered ‘meet the understanding In support of this approach we: Ensuring alignment with Overall External suppliers enjoyable experience. The buyer’ events. These events a supply chain that can of your business; conference score attended the event ºº Report on a monthly basis help local suppliers and sub- personal touches were very support and enable the against agreed payment terms contractors understand contract we honestly feel growth of the NG Bailey well received, especially to ensure compliance with requirements and respond to that this is a our agreements. This ensures the opportunities we provide business, through the safe the hand written postcard that all sub-contractors and and sustainable delivery of very worthwhile from Lee Marks. It was suppliers receive their monies ºº Engaged in community our projects is a strategic engagement. 9.3 in accordance with the mutually initiatives imperative for the Group. out of 10 one of the best supplier agreed terms and enables them Many of our customers have their events I have attended. to accurately plan their cashflow own community programmes Lee Marks Darren Ingram 80% Of attendees found Value of the and we have collaborated with a Group Commercial Director National Account Manager the conference networking Conference attendee number of them. We have been NG Bailey Eaton Electrical Ltd. very informative opportunity involved in the ‘DurhamGate’
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ONE APPROACH: THIS YEAR HAS SEEN... Communities We recognise that our responsibilities extend beyond our immediate operations, into the communities we work within and wider society as a whole. It is important 58%Increase in the interest of to us that NG Bailey contributes to the communities in which we operate. a career involving STEM
CHARITY OF THE YEAR 2016 CHARITY OF THE YEAR 2017 MACMILLAN CANCER SUPPORT ALZHEIMER’S RESEARCH UK
During 2015 and 2016, we raised over £100,000 for Our employees voted overwhelmingly in favour of Macmillan Cancer Support, our first ever charity of the Alzheimer's Research UK becoming our 2017/18 Work experience students on site at the Midlands Metropolitan Hospital 1,280 year partnership. This phenomenal sum smashed our Charity of the Year. We have set an ambitious target Hours original £50,000 target. The company’s employees, of raising £75,000 for the UK’s leading dementia contributed their friends, families, customers, suppliers and the research charity. These funds will be used to help fund local communities embarked on a series of challenges world-class pioneering research focusing on diagnosis, FOCUS ON INSPIRE to date and adventures to raise these much needed funds. prevention, treatment and a cure for dementia. Our school engagement programme, engaged 2,130 students across Activities included a 500 mile cycle challenge, supplier INSPIRE, promotes science, Birmingham, Leeds, London, events, sportsman dinners, raffles and car washes. technology, engineering and maths Manchester and Reading. (STEM) careers and changing young people’s perceptions towards Our impact analysis shows CHARITY OF THE YEAR 2016 - STATS engineering. From careers talks and that 81% of young people who We are absolutely delighted that engineering workshops, to site visits engaged with NG Bailey through and projects, our people have shared INSPIRE over the last year have felt 5,176 NG Bailey has selected Alzheimer’s their knowledge of the industry and their knowledge of engineering 48 Research UK to be their Charity the pathways into it. In short, we increased and 58% of these young 2,130 over Just Giving are inspiring young people to think people were more interested pages of the Year. We have been blown again about a career in STEM. in a career involving STEM. Young people Students across created across the UK Birmingham, Leeds, £100k away by the enthusiasm and engaged since London, Manchester and Two Macmillan Since the beginning of One As part of ongoing development, INSPIRE began Reading engaged in the raised nurses employed motivation of NG Bailey staff to Approach, our INSPIRE Ambassadors this year our INSPIRE programme programme in 2016/17 for a year with have contributed to over 1,280 ran a work experience pilot at the money raised raise funds for our vital cause. volunteering hours and have our Birmingham office. The engaged with 5,176 young people programme was designed to We walked, ran, Jade Rolph cycled and swam across the UK. Over our reporting enable young people to determine Corporate Partnerships Manager year we ran 43 activities and if a career in engineering is what 8,762 miles Alzheimer’s Research UK they want and to assist us in identifying out future talent.
As part of the programme, six successful students were asked In school they tell you 81%Of young people who engaged to ‘design a sustainable hospital with NG Bailey said their that apprenticeships building’. They visited our current engineering knowledge increased don’t get you far. It’s not project, the Midlands Metropolitan Hospital, where they received first- looked at as a highly as hand advice from Project Engineers university is and that you from Carillion and NG Bailey don’t get paid as much. alongside a guided tour of the live site. Our employees also hosted a School made me not want series of workshops for the to do an apprenticeship young people. Activities organised but NG Bailey has. The pilot was a huge success with 2016 Student participants already applying directly to our apprenticeship programme.
Cal Bailey presents Matt Jameson with our fundraising cheque Charity of the Year 2017/18 launch event hosted jointly with Landsec
24 NG Bailey Sustainability Report 2017 NG Bailey Sustainability Report 2017 25 HEALTH & SAFETY CUSTOMERS PEOPLE ENVIRONMENT SUPPLY CHAIN COMMUNITIES
ONE APPROACH: Communities We are committed to encouraging our employees to support causes close to their hearts. The Group donates money, time and resources to causes aligned with our charitable giving policy. Our policy addresses three key areas: Charitable Giving
EMPLOYEES EDUCATION SUSTAINABILITY
We recognise our employees are As a leading training provider, we This is high on NG Bailey’s list of our greatest asset and we are always support registered charities which priorities so we support registered happy to support them in their enable excluded people in our charities which genuinely (and charitable actions. We appreciate society to develop construction charitably) promote a sustainable employees who give their money and skills; or charities which encourage future for our planet. especially their time for registered learning in engineering or science. charities and with this in mind, we aim to help them in their efforts.
CHARITABLE GIVING STATS £21k £15k £40k £4k
Healthcare Other charities Education and fundraising Charitable donations made Charities supported by by NG Bailey in 2016/17 Breakdown of 2016/2017 charitable spend NG Bailey donations in 2016/17
Applying One Approach in Our Business
FACILITIES SERVICES This year our Facilities Services division learning. The student’s school reported delivered a contract for Lewisham Shopping that, “This placement has been perfect Centre, and has provided weekly day release for him. It is very encouraging to hear our work experience for a local student. The student speak of a possible future career student who suffers from severe dyslexia and and apprenticeship as he struggles in the does not thrive in a traditional educational school environment and has shown little environment was able to benefit from our aspiration. He enjoyed his time with you and teams’ knowledge and experience of fire- this has opened new possibilities for him”. alarm testing, power fault investigations and generator testing. The student had a We will continue to offer work experience real passion and capability for on the job opportunities throughout 2017/18.
26 NG Bailey Sustainability Report 2017 Kevin Maher leading an INSPIRE STEM session at Kingsway School Manchester NG Bailey Sustainability Report 2017 27 Reporting Overview
ONE APPROACH: COMMITMENT Target achieved/exceeded On target Behind target Reporting STATUS KEY: HEALTH & SAFETY | OUR PERFORMANCE THIS YEAR Overview One Approach Commitment: 2016/17 commitments: Performance update: We will relentlessly pursue zero 1a) Cut RIDDOR accidents 1a) Although we experienced an increase in our RIDDOR incidents , our accident accidents by embedding Safety frequency rate continues to be well below the industry average. We are REPORTING SCOPE First & Foremost in all that we do committed to ensuring the safety and wellbeing of all those that work for us. This Report is based on NG Bailey’s ºº NG Bailey owned domestic Where the scope of reporting has 1b) Increase near 1b) This year we have experienced an 17% increase in near miss reporting miss reporting since the last reporting year, a total of 3,761 reported in the period. fiscal year that runs from 29th properties. We estimate the changed from the previous years February 2016 to 24th February impact of these properties we have taken the appropriate Continue to implement and embed G.L.O.B.E across our 2017. It covers all material to be immaterial but will steps to ensure that the information 2017/18 business in support of a reduction in RIDDOR accidents and commitments: reporting units within NG Bailey work to collect this data presented is comparable. Where ensuring everyone goes home safe and well every day. Group and our Engineering, IT for future reporting possible, the Report provides Services and Facilities Services up to three years of historical We will develop a leading ‘health Deliver a successful Although we did not deliver a health awareness week, other divisions. The materiality has ºº Agricultural or farming information so that there is and wellbeing’ programme health awareness week communications were rolled out across our business including an properties and activity. This occupational health campaign addressing “The dangers of dust” and been determined by each unit’s sufficient basis for comparison. promotion of our Employee Assistance Programme (EAP). contribution to our overall impact, activity is not material to and its ability to influence the the NG Bailey business The emission factors used in the calculation of the carbon 2017/18 To raise awareness of mental health issues across the Group impact of its operations. commitments: and provide practical training for selected employees. ºº Our projects and sites due emissions are the 2016 DEFRA This year, we have revised the to the limited availability of conversion factors for greenhouse scope of our footprint and accurate data. For 2017/18 gas company reporting. We will be a leader in health Retain our RoSPA NG Bailey Group received a ‘Highly Commended’ in and safety in our sector Presidents award the Construction Engineering category, whilst also our environmental footprint – reporting, we will continue to maintaining our President’s award. A further 10 energy, water and waste – now work to improve the quality and Our Health and Safety performance RoSPA Gold awards were also won in 2016/17. consists of all NG Bailey owned availability of this data so we incorporates all RIDDOR injuries and leased office locations. The can report this impact in the reported by employees and sub- To transition our Health and Safety Management system from OHSAS 18001 to 2017/18 the new OHSAS 45001 standard ensuring our people have the necessary tools footprint currently excludes future, particularly where we contractors within NG Bailey Group commitments: to efficiently and proactively manage Health and Safety across our business. impacts arising from: are the principal contractor and our Engineering, IT services and Facilities services divisions. ºº Domestic properties leased ºº Storage locations used during on behalf of NG Bailey. We the course of our business. The financial performance included estimate the impact of these These leasehold spaces are in the Report has been subject CUSTOMERS | OUR PERFORMANCE THIS YEAR properties to be immaterial immaterial to our floorspace to external audit and supports footprint and are not but will work to collect this and adheres to the principles One Approach Commitment: 2016/17 commitments: Performance update: data for future reporting considered a main place of contained within the UK Corporate work therefore consumption Governance Code. Full details of our We will work to support our We will continue to take our We continue to engage with our customers and have been successful is likely to be minimal. financial performance can be found customers’ sustainability goals customers sustainability in achieving several awards in recognition of our work in this area. For in our financial statements which commitments seriously example we won the Energy Managers Association award for Most Inspiring and compete to meet Energy Reduction Project for our work with Landsec this year. are filed at Companies House. and exceed them
Continue to take our customers sustainability commitments 2017/18 seriously and engage with our customers to understand those commitments: GOVERNANCE AND ASSURANCE sustainability issues that are most material to them. This report has been subject ºº Renewable energy derived from ºº Accident Frequency Rate (AFR) We will comply 100% with Continue to review and We continue to comply with our ethical working policy and have to review from employees biomass for 2016/17, 2015/16 our ethical working policy apply the Ethical Working committed to undertake a review of the policy in 2017/18. within the business who have and 2014/15 reporting years ºº Number of RIDDOR Policy to every project primary responsibility for the incidents for 2016/17. management of the data and ºº Solar energy generated Conduct a review of the policy to ensure it remains aligned 2017/18 to stakeholder expectations whilst continuing to review and content presented in the report. on our sites for 2016/17, For the first time this year we have commitments: apply the Ethical Working Policy to every project. 2015/16, 2014/15 also submitted these results to the Selected data as outlined below audit committee. We will continue to We will continually We aim to improve our For 2016/17, we maintained our score of 25 but are committed has been subject to review by ºº Total carbon saved for our strengthen the governance surrounding improve our customer Net Promoter Score to to achieve a world class score of 30 by 2020. our internal audit function. customers in 2016/17 our reporting in the future. satisfaction survey score 30 by the end of 2016
ºº Carbon dioxide emissions ºº Energy savings, cost savings 2017/18 Continue to work to improve our Net Promoter Score with a view per employee 2016/17, and % reduction for Landsec commitments: to achieving a world class Net Promoter Score of 30 by 2020. 2015/16 and 2014/15 project in 2016/17
28 NG Bailey Sustainability Report 2017 NG Bailey Sustainability Report 2017 29 Reporting Overview Reporting Overview
COMMITMENT Target achieved/exceeded On target Behind target COMMITMENT Target achieved/exceeded On target Behind target STATUS KEY: STATUS KEY:
PEOPLE | OUR PERFORMANCE THIS YEAR SUPPLY CHAIN | OUR PERFORMANCE THIS YEAR
One Approach Commitment: 2016/17 commitments: Performance update: One Approach Commitment: 2016/17 commitments: Performance update:
We will be recognised as one We aim to further improve We are proud to have maintained our “One to Watch” status this year but of the UK’s best employers our ‘Best Companies’ score our overall score slightly reduced. The reduction arose from the one area We will use new technologies, We aim to participate and NG Bailey has collaborated with CIBSE to develop BIMHAWK. This innovative tool of our business that was subject to restructuring in the past year and so we including BIM, to eliminate waste influence the development demonstrates what can be achieved when working effectively with others and as a hope that our scores will improve in this area in our next submission. when procuring materials of BIM Industry guides and result has been awarded ‘BIM Initiative of the Year’ at the H&V News Awards 2017. protocols, and support the growth of our network of trained BIM practitioners 2017/18 We will continue to measure our levels of employee engagement throughout commitments: the year using our Pulse Survey with the aim of continuous improvement. 2017/18 Continue to grow and support our network of BIM practitioners, contributing We will be the market leader in We aim to increase This year saw a 3% increase in the number of female applicants to commitments: to the development of tools, protocols and BIM industry guides. the provision of apprenticeships the number of female the programme and a continued expansion of the programmes - extending our scheme apprentices by 5% on offer including our first degree level legal apprentice. to allow a wider and more year on year Through collaboration we will We will deliver our Customer We successfully rolled out our customer of choice strategy to over advanced level of qualification deliver excellent sustainable of Choice strategy 50 suppliers at our supplier conference in May 2016 and have solutions for our customers since distributed the strategy to over 600 companies.
We aim to increase the number of female applicants by 5% 2017/18 year on year and add a minimum of two new higher or degree commitments: level apprenticeships to the programme each year. 2017/18 We will complete the business wide roll out of the Customer of Choice strategy commitments: and work to ensure that all our divisions have identified those strategic suppliers that can help deliver innovative sustainable solutions to our customers. We will achieve Investors We aim to achieve This year we were awarded UK Engineering Company of the year at in Diversity status Leaders in Diversity by the National Centre for Diversity’s Grand Awards in recognition of the end of 2016/17 our efforts in 2017. Our Fairness, Inclusion and Respect Strategic We will achieve the Government’s We will achieve Level 3 of We did not achieve the Flexible Framework audit by the end Leadership Group made the decision to revise our target of achieving sustainable supply chain Flexible the Flexible Framework of 2016, but our performance has now been audited and we Leaders in Diversity in 2016/17 to the end of 2018 in order to allow the Framework Level 5 standard by the end of 2016 successfully achieved Level 3 of the Flexible Framework. effects of our current activities to be felt throughout the business.
2017/18 In the forthcoming year, we will examine the potential of applying 2017/18 We aim to achieve Leaders in Diversity status by the end of 2018. commitments: and adopting the ISO20400 sustainable procurement standard. commitments:
COMMUNITY | OUR PERFORMANCE THIS YEAR
One Approach Commitment: 2016/17 commitments: Performance update: ENVIRONMENT | OUR PERFORMANCE THIS YEAR We will encourage our We will continue our We successfully raised £101,000 in support of Macmillan, our 2016/17 Charity of the employees to support causes partnership with Macmillan Year. Our 2017/18 Charity of the Year, as voted for by our employees is Alzheimer’s One Approach Commitment: 2016/17 commitments: Performance update: close to their hearts to September 2016 Research UK. We are delighted to be partnering with them to help tackle dementia. and announce a new partnership for 2017
We will save our customers We aim to increase the CO2 We continue to save our customers more CO2 than we emit and in more CO2 than we emit by 2018 savings delivered to our the 2016/17 year we saved our customers over 122,000tCO2e. customers to 150,000tCO e 2 2017/18 We will seek to raise over £75,000 by the end of June 2018, in support commitments: of Alzheimer’s Research UK, our Charity of the Year for 2017/18.
Continue to save our customers more CO2 than we emit 2017/18 and work to increase the CO savings delivered to our commitments: 2 customers beyond our achievement in 2016/17. Each of our projects will We aim to increase We have successfully increased our Community Impact score in 2016/17 to 93%. implement a community our Community impact plan Impact audit score We will send zero waste Increase our landfill This year we achieved a landfill diversion rate of 97% for our office locations. to landfill and champion diversion rate above 89% innovation in water use 2017/18 Continue to increase our community impact audit score commitments: and examine ways in which to integrate community impact plans into the delivery of our INSPIRE programme. 2017/18 Continue to maintain a landfill diversion rate above 92%. commitments: By 2018, for every person We aim to have engaged In 2016/17 we engaged with 2,130 young people through our INSPIRE we employ we will have over 4,000 young people programme, and overall we have engaged with 5,176 young people. helped another two young through INSPIRE, and We have delivered activities in five of our key locations and will seek We will cut our CO2 emissions We aim to reduce We are pleased to report that we have achieved a 19% reduction by 20% per employee emissions to below in our total net tCO e footprint per employee since our baseline people to be more successful to have rolled out the to expand the programme’s reach over the forthcoming year. 2 in their future careers programme nationally from a 2012 baseline 2.5tCO2e per employee year. This is equivalent to 2.0tCO2e per employee.
2017/18 This year we have re-baselined our carbon footprint and we remain 2017/18 We aim to have engaged with 5,500 young people through INSPIRE, commitments: committed to achieving a reduction of 20% in CO2 emissions. commitments: and continue to deliver and promote the programme nationally.
30 NG Bailey Sustainability Report 2017 NG Bailey Sustainability Report 2017 31 PASSION | INTEGRITY | EXCELLENCE
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32 NG Bailey Sustainability Report 2017