Total Commitment to sustainability Sustainability report 2012 Contents Foreword 1 Our Total Commitment 2 Objectives and targets 4 Progress 6 People 7 Planet 13 Profit 19 Appendix A Total Commitments and objectives 22 Appendix B Reporting on our Total Commitments 23 Appendix C Morgan Sindall Sustainability Policy Statement 25 Morgan Sindall Morgan Sindall is a UK construction, infrastructure and design business with a network of local offices. The company works for private and public sector customers on projects and frameworks from £50,000 to over £1 billion. Activities range from small works and repair and maintenance, to the design and delivery of complex construction and engineering projects where it is able to provide specialist design, tunnelling, utilities, building, civil engineering and mechanical and electrical services. The company operates across the commercial, defence, education, energy, healthcare, industrial, leisure, retail, transport and water markets. Morgan Sindall is part of Morgan Sindall Group plc, a leading UK construction and regeneration group with revenue of over £2 billion and which operates through five divisions of construction and infrastructure, fit out, affordable housing, urban regeneration and investments. Basis of report The scope of this second annual sustainability report includes all the activities and work of Morgan Sindall, undertaken during 2012 for its UK operations. This document presents information on division-specific activities and metrics and complements the Morgan Sindall Group plc sustainability report. There have been no significant changes in size, structure or ownership since the last report. The basis of this report is that of operational control principle: where Morgan Sindall has primary operational responsibility for a project or asset, then data and information is included. Many of our joint ventures are divided on a typically less than 50 per cent equity stake, and therefore are excluded from this report because of minority control. There have been no corrections to the 2011 data as it remains valid. Also, there have been no significant changes in the methods or calculations for data collection. Some improvements have been made in the recording and data gathering mechanisms; however, these have made no material differences in the results presented. Governance Sustainability matters are reported and reviewed at Executive Team level on a monthly basis. On a quarterly basis, a Sustainability Forum meets to discuss progress against strategy, performance and specific initiatives. This forum is chaired by the Director of Safe and Sustainability, and comprises representatives from all parts of the business. Through representatives on the forum, employees and other stakeholders including our customers can provide recommendation, ideas and direction. Foreword As a major UK construction company we are clear in the leadership role that we must fulfil in driving forward our industry’s sustainability performance. We also believe that working in a sustainable manner is fundamental to a lasting recovery for both our industry and the wider UK economy. For these reasons, we have made the demonstration of progress within sustainability a priority area for reporting. Through our leading approach of a ‘Total The Health and Safety Executive’s Leadership Commitment to Sustainability’ we continue to and Worker Involvement Toolkit, issued in deliver against and positively influence the UK’s 2011, assists contractors and managers sustainability agenda. By reporting against the in learning how to make health and safety Total Commitment’s ‘People, Planet and Profit’ improvements in their businesses. model, we are able to focus on specific areas of implementation, as outlined in this document. Both of these projects are helping to change Maintaining this focus helps us ensure that our the way our industry approaches sustainability, work can make a real difference to sustainability and we are immensely proud to be playing a both across our business, our industry and central role in this. wider society. Focusing on our own performance, we Through applying sustainability principles have made excellent progress in many to the assets we construct and the way areas during the past year, including waste we do business, we can leave a legacy recycling, carbon reduction management, and for the communities where we work, and behavioural safety programmes. In 2012, our our customers, who increasingly consider efforts were recognised with the achievement sustainability part of their ethos. of Silver ranking in the Business in The Community (BiTC) Corporate Responsibility We are proud that in some areas of Index. We are pleased to report that in 2013, sustainability we are already making a we progressed to the Gold ranking. difference, with two recent industry-wide projects developed with active contribution However, there is continued work to do, from Morgan Sindall. to ensure we continue to keep our people safe; develop the talent of our workforce; The construction industry’s Supply Chain and measure and manage our water use Sustainability School, launched this year, helps more effectively. We must also address our supply chain partners understand their measures to mitigate climate change, and essential contribution in delivering their vital ensure continued legislative compliance to services in a sustainable manner. demonstrate our behaviour as a responsible company. This second annual sustainability report sets out our 2012 performance. Restating our targets will allow us to remain focussed on what is important to our customers, our business, our stakeholders and society in delivering a sustainable future. In setting the right strategic direction and standards, we can ensure we set a benchmark for both ourselves and the industry. I am therefore delighted to present our performance for 2012, and to detail our 2013 objectives and targets. Martin Worthington Director of Safe and Sustainability Total commitment to sustainability - Morgan Sindall 1 Total Commitment Adopted in 2011, our approach is set out through our ‘Total Commitment to Sustainability’. The Total Commitment is divided into the pillars of People, Planet and Profit, each containing two specific objectives. These represent key areas for improvement and are the basis of A safe workplace establishing sustainability in the way we work. Developing talented employees The Total Commitments will remain the What we are striving to achieve overarching principles by which we will No lost-time accidents deliver sustainability through 2013 and Attracting and retaining talented people onwards. The Total Commitments also represent the common themes set across the whole of the Morgan Sindall Group. Where relevant to our business, we have supplemented a number of areas with additional targets. Reducing energy consumption and carbon emissions Reducing waste The full list of objectives and targets has been set out in the appendices What we are striving to achieve of this report. A net reduction in carbon emissions across the Group Minimising waste generated throughout the Group Improving sustainable procurement Supporting local employment What we are striving to achieve To ensure that our supply chain conforms to our minimum standards for sustainability To be the employer of choice in the construction sector 2 Total commitment to sustainability - Morgan Sindall 2012 Highlights 22 per cent reduction in serious workplace injuries (as assessed against Reporting of Injuries, Diseases and Dangerous Occurrences Regulations) Average number of training days per employee: 3.7 Average Considerate Constructors score of 35 (out of 40) 95 per cent of waste diverted from landfill to beneficial uses Carbon footprint of 30,500tCO2e (est). Implementation of Sustainable Procurement policy Approaching £250,000 in charitable donations Total commitment to sustainability - Morgan Sindall 3 Objectives and targets The following section sets out what we are aiming to achieve in each of the Total Commitments, our targets for 2013 and how they will be measured. These objectives will be adopted by each Business Unit and incorporated into their own detailed plans, while maintaining a common theme with Morgan Sindall Group plc. The objectives and targets apply to all of our UK operations and, where agreed, will be adopted by our joint ventures. Objective What we are striving to achieve Target and measure Total Providing a safe working environment • Aspiration: to be 100% Safe Commitment for everyone. We will make sure • (T) No lost time accidents to a safe through proper training and education workplace that our staff are fully engaged • (M) Reportable accidents and fatalities and involved in improving safety • in the workplace, at home and on (M) Total number of RIDDOR* and their journeys. We will ensure that other incidents everyone understands the part they play in their own safety and that of their co-workers as well as the wider community Total Recruiting, empowering and training • (T) Attracting and retaining talented Commitment talented individuals are central to our people to developing business activities. To help develop • (M) Average number of training days talented talent we undertake to provide all new per employee employees staff with clear induction, appraisal and appropriate development programmes Inclusion and To reach out to as wide a talent • (T) To increase the proportion of diversity pool as possible and become an women in management positions and increasingly inclusive