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Royal Mail Plc Corporate Responsibility Report 2016–17

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Royal Mail Plc Corporate Responsibility Report 2016–17 ENTER Corporate Responsibility Report 2016–17 About this report Scope of the report Independent assurance This is our fifteenth Corporate Responsibility This report has been assured by Ernst & Young. Report. It details our non-financial (social, We appreciate this independent verification environmental and ethical) performance for of, and opinion on, our r eported activity. the financial year 2016–17. Our last report was Ernst & Young’s independent assurance published in June 2016 and covered the financial statement is av ailable on page 74 of this r eport, year 2015–16. The report is produced to meet and as a standalone document on our w ebsite the disclosure requirements of the Global at www.r oyalmailgroup.com/responsibility/ Reporting Initiative (GRI) Index Sustainability cr-reports Reporting Framework (G4). We report to a We are a signatory to the United Nations ‘Comprehensive’ l evel. Global Compact and work to meet its This report mainly covers our UK Parcels, principles. This report meets our United International & Letters business – UKPIL – Nations Gl obal Compact Communic ation operating under the ‘Royal Mail ’ and ‘Parcelforce on Pr ogress requirements. Worldwide’ brands. UKPIL empl oys 92 per We have printed a limited number of cent of Royal Mail Group’s full time equivalent hard c opies of this r eport, in order to employees across the UK. It contributes 78 per minimise was te. This report is available cent of the Group’s revenue.1 Where stated, we on our w ebsite www.rat oyalmailgroup.com/ also have included data and narrative from our responsibility/cr-reports pan-European parcels delivery business, General Logistics Systems (GLS). GLS represents eight For more on Royal Mail Group: per c ent2 of our full time equivalent employees Royal Mail plc and 22 per c ent of our revenue. 100 Victoria Embankment Throughout this report, we use the terms London EC4Y 0HQ ‘the Group’ or ‘Royal Mail Group’ to describe www.royalmailgroup.com the three main br ands that form Royal Mail plc – Royal Mail, Parcelforce Worldwide and [email protected] GLS. We use the t erm ‘Royal Mail’ to describe activity in Ro yal Mail and Parcelforce W orldwide. For activity in GLS, w e use the t erm ‘GLS’. This is our fifteenth annual Corporate Corporate Responsibility Report Responsibility Report 2016–17 1 For the financial year 2016–17 2 During the r eporting year, GLS acquired Golden State Overnight Delivery Service Inc. (GSO), a provider of regional next day parcel delivery services principally in California, and Agencia Servicios Mensajería S.A.U. (ASM), a Spanish express parcels delivery company. The data in this r eport excludes both acquisitions, unless stated Royal Mail Corporate Responsibility Report 2016–17 02 Contents Chief Ex ecutive Officer’s foreword 04 Our suppliers 59 About us 06 Our environment 65 About Royal Mail Group 06 Our strategy 08 Assurance statement 74 Governance and management 12 Global Reporting Initiative Index Measuring our progress 13 www.royalmailgroup.com/responsibility/cr-reports Sustainability risks and opportunities 15 Stakeholder engagement 15 Cebr economic impact Our heritage 20 assessment methodology www.royalmailgroup.com/responsibility/cr-reports Business integrity 24 Our customers 27 Feature: Scam mail 35 Our people 38 Our communities 47 Feature: Breaking the silence on mental health 53 Royal Mail Corporate Responsibility Report 2016–17 03 Foreword Chief Executive Officer’s foreword Our vision is to be recognised as the best delivery company in the UK and across Europe. Against a back drop of significant change, innovation and diversification, we have continued to put the principles of corporate responsibility at the heart of our business strategy. We belie ve that this holds the key to building sustainable value for our shareholders. Our strategic approach Royal Mail itself already adheres to an Royal Mail is proud to be a responsible The objective at the heart of our business extensive set of consumer protections. employer. We offer the best pay and and corporate responsibility strategies We also concluded our successful terms and conditions in our industry. is the same – to generate sustainable partnership with the Stroke Association, The vast majority of our employees shareholder value. Our c orporate for which w e r aised £2 million, t oare provide on permanent contracts. Our responsibility strategy is an integral part grants for up t o 10,000 stroke survivors. permanent employees are paid above the Living Wage, which, in turn, is of realising our core s trategic objectives. We continue to be recognised as a more than the legal minimum set by leader in corporate responsibility. We As the UK’s Universal Service Provider, we the Government. They also r eceive the are ranked second of all Transport and have a unique place in society. We are an additional benefits associated with Transportation Infrastructure businesses integral part of the UK’s social fabric. We permanent employment, such as paid in the 2016 Dow Jones Sustainability are hugely proud of that and take our role holidays and a good pension. very seriously. Our cherished brand is built Index. We were previously ranked number on a long his tory of making a diff erence.one among around 100 companies We welcome the Government’s focus globally, two years in a row. We are one on employment models: in particular, of the highest scoring companies in the the Taylor review, which is looking at Our progress last year FTSE4Good Index. We rank in the top 15 employment conditions across the UK, There are many highlights of our per cent of companies, on account of our including the delivery sector. Better corporate responsibility agenda in social, environmental and governance labour standards across the industry 2016–17. We stepped up our attack on performance. We hav e been named should lead to better service standards scam mail to help protect vulnerable as one of the top 20 companies for for consumers. customers. We launched groundbreaking gender equality at senior levels in the partnerships for mental health, to We are committed to continuing to Government-backed Hampton-Alexander provide the best pay and terms and champion change and support more Review Report. At the same time, w e were people with mental health problems. conditions in our industry. In return, listed as a Times Top 50 Employer for We lobbied for the introduction of however, we continually work with our Women for the fourth consecutive y ear,1 better labour standards in the delivery unions to agree changes to our working in r ecognition of our efforts to improve industry, and consumer protections too. practices and labour model. This the gender balanc e in the or process ganisation. of change is about sus taining our busines s now and in the future. A responsible employer According to the Centre for Economics Putting people at the heart 1 During 2016–17, w Timese were listed as aand Business Research, our Company Top 50 Employer for Women for the third time. of our business Shortly after the reporting period ended, we makes the fifth biggest contribution to 2 Our people deliver to around were included in the lis t for the fourththe time UK economy of any UK company. 30 million addr esses, six days a week, One in every 185 jobs in the UK is 2 Finding of Cebr ec onomic impact assessment of connecting busines ses, households UKPIL, commissioned by Royal Mail in May 2017. provided by Royal Mail.3 Our employment and c ommunities across the country. Comprising direct and indirect contributions is disproportionately weighted towards 3 Finding of Cebr ec onomic impact assessmentareas with high levels of deprivation It is our people who are enabling of UKPIL, c ommissioned by Royal Mail in 2017 and where job opportunities are fewer. us to transform as we handle fewer 4 Finding of Cebr ec onomic impact assessment of UKPIL, c ommissioned by Royal Mail in This means that Royal Mail jobs t endletters to and more parcels. Thanks to September 2013 cluster wher e the y are most4 needed.their hard work, commitment and Royal Mail Corporate Responsibility Report 2016–17 04 Foreword dedication, we are continuing to improve Just after year end, we significantly volumes of scam mail. We are now our efficiency while delivering a higher expanded our support for the issue blocking and impounding scam mail at quality service for our customers. by launching a major partnership our major distribution centres before We are changing our operations to for mental health. We invited our it reaches the consumer’s letterbox. accommodate the incr easing demandscolleagues to vote for their preferred Legitimate business and personal mail of e-retailers and online shopper charitys. This partner in our Employee Survey, will continue to be delivered in the usual is helping us to win new contracts and from a shortlist of three. Action for way. This latest anti-scam initiative will grow existing relationships. Children received the most votes and initially focus on the most impacted will now be the main beneficiary of our Engaged employees, who feel valued by customers, with plans f or it to be fundraising programme. We hope to our business, are vital to the customer- extended in the futur e. focused culture that we are building raise at least £2 million for Action for at Royal Mail. Last year, more than Children to employ specialist youth th 70,000 of our people took part in the Big workers to deliver face-to-face support Our 500 anniversary Conversation. They told us why Royal Mail sessions for 8,000 young people aged 2016 was a very special year for matters, what good looks like and how 15–18 years.
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