2015 Marshalls / 2016 United Nations Global Compact Communication on Progress 1
United Nations Global Compact Communication on Progress Marshalls / 2016 United Nations Global Compact Communication on Progress 3
INTRODUCTION...
The United Nations Global Compact (UNGC) was launched in 2000 to harness the power of collective action in the promotion of responsible corporate citizenship. The Compact is a framework for businesses that are committed to aligning their operations and strategies with the ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption.
As the world’s largest global The UNGC is not a regulatory corporate citizenship initiative, the instrument, but rather a voluntary Global Compact is concerned with initiative that relies on public demonstrating and building the social accountability, transparency and legitimacy of business and markets. disclosure to complement regulation Marshalls plc became a signatory of the and to provide a space for innovation UNGC in January 2009 and a member of and collective action. the UK Network later the same year. This is the Company’s seventh Communication on Progress and outlines how Marshalls is aligned with To mainstream the ten the ten principles and how, throughout principles in business activities 2016, the plc intends to develop its 1 activities in support of the framework around the world; laid out by the UNGC.
To catalyse action in support of broader UN objectives, 2 such as the Sustainable Development Goals. 4 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 5
UNGC TEN PRINCIPLES CONTENTS
HUMAN RIGHTS LABOUR ENVIRONMENT ANTI-CORRUPTION 6 Statement of Support for the UNGC by Martyn Coffey, Marshalls CEO 7 Statement by UNGC UK Chairman, Chris Harrop PRINCIPLE 3: PRINCIPLE 7: PRINCIPLE 10: PRINCIPLE 1: 8 Foreword and Focus for 2016 by Chris Harrop, Group Marketing Director; Responsible for Sustainability Businesses should support Businesses should uphold Businesses should Businesses should work and respect the protection the freedom of association support a precautionary against all forms of 12 Scope of Operations and the effective approach to environmental corruption, including of internationally 14 Achievement Indicators proclaimed human rights; recognition of the right to challenges; extortion and bribery. collective bargaining; 15 Third Party Assurances PRINCIPLE 8: PRINCIPLE 2: 15 Marshalls’ Brand Manifesto Make sure that they are PRINCIPLE 4: Undertake initiatives not complicit in human The elimination of all forms to promote greater 16 Marshalls the Superbrand rights abuses. of forced and compulsory environmental labour; responsibility; and 18 Product Innovation 24 Leadership Blueprint PRINCIPLE 5: PRINCIPLE 9: 30 Sustainable Development Goals The effective abolition of Encourage the child labour; development and diffusion 32 Fairstone & UNICEF - from local engagement to global advocacy and systemic change of environmentally friendly 38 Focus on Modern Slavery; Transparency in the Supply chain PRINCIPLE 6: technologies. The elimination of 40 Human Rights discrimination in respect 48 Labour of employment and occupation. 58 Environment 64 Anti-Corruption 68 Business in the Community - Business Class 72 Best Companies Survey & Employee Engagement & Wellbeing 76 Training & Development 77 Health & Safety 78 Award Success 79 Celebrating Responsible Business Excellence 80 Third Party Recognition & Awards 83 COP Feedback 84 GRI Performance Indicators 6 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 7
STATEMENT BY UNGC UK STATEMENT CHAIR CHRIS HARROP
I am looking forward with anticipation to With the ongoing work of the UK secretariat, Statement of Support for the UNGC the UN Global Compact Leaders Summit on the commitment of trustees and the energy of 22-23 June 2016 in New York which will be an the active network members, 2016 will see us: Martyn Coffey, Marshalls CEO important milestone for kick-starting business action on the new sustainable development • Continue to focus upon increasing the agenda. Here global companies of all sizes number of UK organisations engaging with Each year as I write this statement of support contribution; engaging with governments, and from all sectors will convene and show the UNGC framework and the UK network; for UNGC I recognise that it is a reaffirmation collaborating with UN partners, developing how they are innovating their operations and of Marshalls commitment to uphold the UNGC innovative products which respond to strategies to advance the SDGs. • Continue to forge links with other UN entities principles to which we committed some seven environmental challenges, addressing modern & initiatives which have the potential to years ago. It gives me the opportunity to slavery and transparency in our global supply The Summit will make clear the opportunities support corporates in the effective delivery reflect on our sustainability journey, to consider chain. Essentially were making sustainable that lie within the SDGs and aims to unleash of UNGC principles; how far we have come and what yet lies ahead. choices on a daily basis that are both good for the potential of turning global goals into local business and for society. business. Through motivational talks, intimate • Continue to focus network educational The 1st of January 2016 saw the 17 Sustainable roundtables and SDG-themed networking activities on the key issues of; human rights, Development Goals (SDGs) come into force.* Empowered by our brand values of leadership, opportunities, signatories will doubtless modern slavery, women empowerment, Adopted by world leaders in September 2015 excellence, trust and sustainability I can say be inspired to shape the business models, children’s rights & business principles, water, at an historic UN Summit these SDGs now with confidence that Marshalls' team works products and services of tomorrow. climate change & biodiversity, business & provide the focus for the next fifteen years and passionately and diligently to uphold the UNGC peace. Martyn Coffey, Marshalls CEO Chris Harrop, Marshalls’ Group call all countries to mobilize efforts to end all pillars of human rights, labour, environment My term as Global Compact Local Networks Driving Business Growth Marketing Director, (Responsible for forms of poverty, fight inequalities and tackle & anti-corruption. By doing so, and doing the Chair comes to an end during 2016 and I’m I look forward to serving out my term as Through Sustainability Sustainability), UNGC UK Network climate change. right thing, we are leveraging sustainability to pleased to say that our UK Network is in great Chair during 2016, and to working with my Chair, ETI Non-Executive Director drive competitive advantage for our business. shape and is going from strength-to-strength. colleagues at the UK Network to the very best I welcome the SDGs as it is clear to me that Global Compact Local Networks activity is of my ability. I am delighted to handing over for businesses to succeed, they require access This UNGC Communication on Progress sits extremely important in advancing corporate to my successor an extremely robust and to energy, good governance and sustainable alongside our Annual Report as the main sustainability at the grassroots level by helping engaged Network. I will continue to actively economic development, among other vehicle for sharing our sustainability progress. “Businesses everywhere play a key companies understand what responsible engage with and support the UK Network and fundamental factors, and that these same Read on and you too will see for yourself the role in shaping the future, and UN business means within a national context. to demonstrate through Marshalls plc how underlying needs overlap with public sector actions which so clearly show that sustainability Global Compact participants lead organisations can contribute to the sustainable priorities underpinning peace, security and is at the heart of all that we do. the way. The SDGs give important All companies face unique challenges in development agenda and deliver a clear poverty reduction. new direction to the UN Global striving to operate responsibly and have many competitive advantage for our business as a different opportunities to make a positive result of UNGC engagement. Companies can do a great deal to address Compact’s founding mission impact. Those companies with operations and these common interests and create long- to encourage companies to do supply chains extending around the world also term value and I'm proud to say that through business responsibly – based on need to understand locations far away from our engagement with UNGC over the past our ten universal principles – and headquarters and be able to view sustainability seven years Marshalls has been making a rich to provide solutions to global through a local lens. It is here that the UK * Source: https://www.unglobalcompact.org/ challenges” * Network provides so much in terms of access to AboutTheGC/guide_to_corporate_sustain- high quality information, high calibre speakers ability.html and importantly safe spaces to share, discuss Lise Kingo, Executive Director, * Executive Update: Annual Letter to United UN Global Compact and debate pressing issues. Nations Global Compact Participants : https:// www.unglobalcompact.org/news/3281-02- 04-2016 8 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 9
TAINABLE US BUS FTSE4GOOD MEMBERSHIP GLOBAL REPORTING INITIATIVE S BLE SPEC I S VAILA IFICA N LL C A TIO E Regular readers of our COP's will be very familiar Marshalls remains focused on being a successful LI BS EN ISO 14001 N S A B 9 S H PU 9 M S ATIONS GLOBAL C with our sustainability model which incorporates and profitable business whilst minimising our D N OM O R ITE ATE SUST PA N RPOR AINA CT U CO BIL D A R ITY our membership of the UNGC and FTSE4GOOD, impact on the environment, looking after the FO L T EA E M IN D R E L P R and our continued commitment to Integrated people and communities where we operate, E S U H L B Environmental IP Water use Management Systems. It also continues to striving to be innovative and to respond to market
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Chris Harrop, Marshalls principles regarding the environment, labour, and sustainability. These are the values that our of the challenging & forging work that we’ve future and ensure that we’re well positioned to human rights and anti-corruption. business is built on. Group Marketing undertake in the last twelve months. Our work face the challenges as well as take advantage of during 2015 has been very much shaped by the emerging opportunities. Director, Responsible for the business and human rights agenda, our involvement in UK Governments consultation Our CEO, Martyn Coffey, champions Marshalls Sustainability. work leading up to the introduction of the strategic approach to sustainability and Modern Slavery Act 2012 and discussion made plane in his Statement of Support THE VALUES OUR BUSINESS IS BUILT ON around the SDGs. that, ‘...essentially were making sustainable LEADERSHIP is not just about being a manager. TRUST means that we are open, honest, fair and choices on a daily basis that are both good It means that we should all set the standards that consistent. We must always follow through on our Foresight and good planning ensured that we for business and for society.’ It’s the way that others aspire to, no matter what our role is within promises, respect others’ talents and treat each began our human rights impact assessment we do business and the UNGC framework is the business. We should all take responsibility for other fairly whilst always acting with integrity. programme well in advance of the legal a fundamental part of Marshalls’ long-term our actions and try to set a good example every requirement now laid down in UK company business strategy. single day. SUSTAINABILITY means that we are committed law. In 2010 we began our global Human to doing the right thing for the long-term good of EXCELLENCE means that we must always strive our business, for society and for the environment. Right’s Impact Assessment programme which Marshalls’ employees are all aware of the to be the best we can be. We must be ambitious This means that we must always do the right thing has over the past five years now become a businesses commitment to sustainability and and demand high performance from ourselves and consider the impact on our business and of our much larger and expansive human rights what this means to them in terms of what as well as others. We must also be innovative decisions and actions. programme of activity. This will stand us in they do here at work and also beyond in the and constantly seek to improve our performance. good stead as we move forward into an era local and global community. New employees It’s essential that we always make good our shaped by the Sustainable Development Goals are also introduced to our sustainable commitments and have pride and passion in and also as we make our first Modern Slavery approach through a specially developed everything that we do. (Transparency in the Supply Chain) Disclosure induction process. All employees also have Chris Harrop, Marshalls’ Group Statement as we are required to do now the opportunity to engage with Marshalls Marketing Director, Responsible for on an annual basis. We have also made the Certificate in Sustainability which is heartily Employees throughout the business continue to be actively involved: Sustainability, Global Compact UK decision to engage in the ILO IPEC Child Labour endorsed by the Global Compact Local Chair, ETI Non-executive Director Platform which will allow us to continue our Network UK. work regarding the elimination of child labour and the support of children’s rights around the The Leadership Blueprint continues to be globe. embraced throughout all of our operations and divisions and helps us to maintain our Andy Ackroyd, Richard Capper, Susie Fehr, Helen Taverner, Claire Quinton- David Morrell, Matthew Gibb, Nick Carr, Elaine Mitchel-Hill, Samantha Munkley, Marshalls became a UNGC signatory in 2009 leadership position within our industry. I must Commercial Energy HR Director Group Systems Auditor Tulloch, Group Head of Group Environment Group Health & Business & Human Employee Engagement and a Global Compact Local Network member admit to a quiet sense of pride and satisfaction Controller Management Head of PR Sustainability & Water Manager Safety Advisor Rights Specialist. Manager. later the same year. My tenure will come to when I see and hear employees engaging with Engineer an end during 2016 but in the meantime enthusiasm and talking to each other and our and under my guidance as Chair the Global wide range of stakeholders with knowledge of Compact Local Network UK continues to our approach to sustainability and why this is so be a platform for high level networking, important. Again, it’s the way we do business. discussion, dialogue and peer support, specialised work streams, and open lines Chris Frankland, Andrew Stalker, Richard Beal, Claire Blake, Pete Stevens, Steve Swanwick, Sophie Rowe, Nicole Gledhill, Chris Griffith, Alice Couldwell, of communication directly with UNGC International Product Head of Procurement Director Head of Domestic Group Carbon & Group Systems PR Executive Product Manager SuDs and CBP Linear Drainage Manager Commercial Product Energy Manager Manager Commercial Paving. Manager. Product Manager. Marketing Management.
These employees work alongside those with rights programme and our work on modern slavery participants and will allow Marshalls to chart special responsibilities including; Group Head and transparency in the supply chain. its progress and benchmark against other of Sustainability, David Morrell, and Group international organistations. It will also provide Our Human Rights Programme has developed Procurement Director, Richard Beal, Group Human even greater transparency regarding the steadily since 2010 and now includes human Resources Director, Susie Fehr and Business & Company’s activities. rights impact assessments, Children's Rights & Human Rights Specialist, Elaine Mitchel-Hill. Business Principles implementation, working Marshalls has again retained its Superbrand status Marshalls’ progress is monitored thoroughly and towards becoming signatories of the Women's for the sixth year running. This is a testament to on an ongoing basis against both internal and Empowerment Principles as well as quarterly the dedication and passion of everyone within the external measures. As a matter of course Marshalls human rights briefings. In addition we continue business and a feat which we are extremely proud. seeks verification from third party organisations to work closely with Indira Saxena regarding social In this our seventh Communication on Progress, which include non-governmental organisations issues in India and Sterling Smith of Just Solutions we share with you the efforts that we have made and independent auditors; The Carbon Trust, BSI, Ltd. to uphold the UNGC principles during 2015 and Wild Life Trust, ETI & BITC. We also engage with The business is working towards full Global our enduring commitment to these principles as third sector organisations as 'critical friends' in Reporting Initiative (GRI) measuring. GRI is the we move forward throughout 2016. order that we get full and frank feedback on a preferred reporting methodology for UNGC range of issues especially in relation to our human 10 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 11
FOCUS FOR 2016 FOCUS FOR 2016
UK Action Plan on Business Women's Empowerment Principles Marshalls Certificate in Marshalls is now in a position to begin a full audit against the and Human Rights Modern Slavery Internal Awareness Campaign Women's Empowerment Principles, a collaboration between Sustainability During 2015 Marshalls engaged in It is important to us that we support the UK Government’s Home UNGC and UN Women. It is our aim to complete this work during 2016 with a view to becoming a WEPS signatory. Women have a Sustainability is fundamental to Marshalls consultations with UK Government to consider Office modern slavery initiative and the work of the UK Anti-Slavery critical role to play in all of the SDGs, with many targets specifically and affects all parts of our business. the UNGPs Reporting Framework and the Commissioner. In order to do this we need to ensure that everyone recognizing women’s equality and empowerment as both the To help ensure that all employees are Modern Slavery Bill, as it neared the end of objective, and as part of the solution. Goal 5 is known as the stand- knowledgeable and engaged during its passage through Parliament. Businesses, throughout our business is clear on what modern slavery is, how to spot the signs and why it is important for our business to be vigilant. alone gender goal because 2016 we will launch 'Marshalls Certificate civil society and government delegates it is dedicated to achieving in Sustainability' which is certified by communicated their priorities and perceptions Throughout 2016 we will action an Anti-Slavery Internal Awareness these ends. Global Compact Local Network UK. This of progress under the current plan and Campaign that will include employee training, posters focusing upon online training programme harnesses developed specific ongoing work streams. slavery in the construction sector, sexual exploitation and how to spot core values of leadership, excellence, Engagement for us was important given the trust and sustainability to address the introduction of the UK Government Modern the signs and report instances of concern, a Modern Slavery reporting Children's UNGC principles - human rights, labour Slavery Act 2015 which requires all businesses app on all work phones, internal communications and face-to-face Marshalls Response to rights, environment & anti-corruption - with a turnover in excess of £36m to provide briefings. Rights & and also focuses upon responsible global an annual Statement of Disclosure detailing UNICEF's Research supply chains. the steps an organisation has taken during the Marshalls funded important UNICEF Business financial year to ensure that slavery and human research - Children's Lives Cast in Stone: trafficking is not taking place in any of its Child Labour & The Sandstone Industry Principles supply chains or in any part of its own business. in Kota & Bundi, in Rajasthan, India - which looked at the issue of child (CRBP) Throughout 2016 much attention will be given labour in the sandstone sector in India. During 2015 we CHILDREN’S RIGHTS & BUSINESS Marshalls Certificate to ensuring that our Modern Slavery Statement PRINCIPLES REPORT 2016 The findings of the research will help conducted our in Sustainability is widely circulated among our employees both organisations to continue to use second Children's and stakeholders. We will also be seeking the their unique expertise and knowledge Rights & Business Principles report against This is to certify that ...... input and guidance from our range of ‘critical of their respective fields as a private the CRBP framework. Marshalls undertook has achieved Marshalls Certificate in Sustainability ...... (date) friends’ including NGO’s, IGO’s and other sector organisation and the world our first CRBP audit in 2013 and were one of Signed ...... Chris Harrop, Marshalls Director of Marketing, knowledgeable third parties regarding our SLAVERY IS leading organisation for children to the first organisations globally to go through Responsible for Sustainability & UNGC UK Network Chair Certified by disclosure statement and the related KPI’s. improve the situation for children and this process. The work that we have done UNGC Network UK their families. Marshalls has developed as a result of the first audit has deepened CLOSER THAN a clear response to the research our understanding of how we can work in Module 5: findings and you can read more later support of children's rights. We remain wholly UNGC Principles: Environment Water; Carbon; Bio-Diversity. Modern Slavery App in the report about what we plan to do committed to supporting children's rights and throughout 2016. have identified our top 10 priorities for the This is to certify that ...... YOU THINK has achieved Module 5 of Marshalls Certificate in Sustainability ...... (date) coming year.
Signed ......
Chris Harrop, Marshalls Director of Marketing, Responsible for Sustainability & UNGC UK Network Chair Slavery is not an issue confined to THE TRUTH ABOUT
history or an issue that only exists Child Labour in the Certified by Indian Sandstone UNGC Network UK in certain countries - it is something Industry N RIGH that is still happening today. A TS M U Ilo International Platform H
IN ACTIONS T H H U G It is a global problem and the UK is no exception. It’s a growing MAN RI issue, affecting men, women and children. 1,746 cases reported PHYSICAL APPEARANCE On The Elimination Of Child in the UK in 2013. A 47% increase on the number of cases reported in 2012. But these are just the victims we know about. Victims may show signs of physical or www.modernslavery.co.uk 1 psychological abuse, look malnourished or HOW TO unkempt, or appear withdrawn ISOLATION Labour - Child Labour Platform IF YOU SUSPECT SLAVERY IS HAPPENING... Victims may rarely be allowed to travel on their own, seem under the control, influence of others, 2 rarely interact or appear unfamiliar with their neighbourhood or where they work Call the Police on 999 You can also report Using the form you If you think SPOTyou THE in an emergency, or it by calling the new can find online. have been a victim, Early in 2016 Marshalls will commit to the ILO's 101 if it is not urgent. Modern Slavery find out how you POOR LIVING CONDITIONS helpline on can get help. 0800 0121 700 I hope that you enjoy read on Victims may be living in dirty, cramped or 3 overcrowded accommodation, and / or living International Programme on the Elimination SIGNS OF and working at the same address CHILDRen’S LIveS of Child Labour (IPEC) Child Labour Platform. and finding out more about FEW OR NO PERSONAL EFFECTS CAST In STOne MODERN Victims may have no identification documents, have how sustainability is helping to build few personal possessions and always wear the same This is a natural extension of the work that we 4 clothes day in day out. What clothes they do wear may SLAVERY IS CLOSER not be suitable for their work. have been doing for over ten years and of our competitive advantage for our business. SLAVERY RESTRICTED FREEDOM OF MOVEMENT
Victims have little opportunity to move freely THAN YOU THINK 5 and may have had their travel documents partnership with UNICEF which comes to an Signs of slavery in the UK and elsewhere retained, e.g. passports are often hidden, making it even harder to recognise victims around us. Whilst not end in 2016. It will allow us to engage with exhaustive, here is a list of some common UNUSUAL TRAVEL TIMES Slavery is not an issue confined to signs which you can be aware of. They may be dropped off / collected for work on other global businesses, to share history or an issue that only exists 6 a regular basis either very early or late at night. in certain countries - it is something learning's and to further our that is still happening today. RELUCTANT TO SEEK HELP Victims may avoid eye contact, appear frightened or hesitant to talk to strangers and fear law enforcers 7 for many reasons, such as not knowing who to trust work regarding the elimination or where to get help, fear of deportation, fear of Chris Harrop, violence to them or their family. It is a global problem and the UK is no exception. It’s a growing issue, affecting men, women and children. 1,746 cases reported of child labour in the sandstone Group Marketing Director, Responsible in the UK in 2013. A 47% increase on the number of cases IF YOU SUSPECT SLAVERY IS HAPPENING... reported in 2012. But these are just the victims we know about. www.modernslavery.co.uk CHILD LABOUR & THe SAnDSTOne InDUSTRy Call the Police on 999 You can also report Using the form you If you think you sector in Rajasthan, India. IPEC In KOTA & BUnDI, In RAjASTHAn, InDIA for Sustainibility, Marshalls plc in an emergency, or it by calling the new can find online. have been a victim, 101 if it is not urgent. Modern Slavery find out how you helpline on can get help. 0800 0121 700 Summary of key findings IF YOU SUSPECT SLAVERY IS HAPPENING... engagement is a priority for us
Call the Police on 999 You can also report Using the form you If you think you following our recent second in an emergency, or it by calling the new can find online. have been a victim, 101 if it is not urgent. Modern Slavery find out how you helpline on can get help. 0800 0121 700 Children's Rights & Business Principles audit. 12 United Nations Global Compact Communication on Progress Marshalls / 2016 Marshalls / 2016 United Nations Global Compact Communication on Progress 13
SCOPE OF OPERATIONS