Sustainability Report 2013

CREATING TOMORROW’S COMMUNITIES WELCOME TO THE BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

08 SUSTAINABLE HOUSEBUILDER OF THE YEAR & SUSTAINABLE DEVELOPER OF THE YEAR – HOUSEBUILDER AWARDS 2012 & WHAT HOUSE? AWARDS 2012 RESPECTIVELY

Welcome to the Barratt Developments PLC Sustainability Report 2013

Building homes and designing places for people to live is a long term 20 EDGWARE GREEN, LONDON – business. It takes time to buy the right land, consult with local HOUSING DESIGN AWARDS 2013 communities and construct new homes.

Our aim is to maximise the social and economic benefits of the new homes and communities we build. The challenge is to do this whilst minimising the impact on the environment and the resources we use both in the build process and over the life of the new homes in use.

In this tenth year of reporting our sustainability performance we were pleased to be named as Sustainable Housebuilder of the year by two different industry bodies. This recognition reflects the progress we have made from tackling the green building agenda to the improvements delivered in every aspect of our business operations.

However, we are determined to improve our performance still further and this report sets out the steps we’ve taken. We’ve reviewed and revised all our sustainability policies and have a clearer governance structure to report our progress going forward. 23 5 STAR RATING FOR CUSTOMER SATISFACTION – We have also introduced and embedded a series of initiatives that HOME BUILDERS FEDERATION will improve our sustainability performance – from reducing our environmental impact to improving home designs; from expanding our industry leading training programmes to improving the way we engage with local communities.

An important part of improving our performance still further is listening to the views of the people and organisations that we work with. We carefully research the views of many of our key partners and we would also welcome your views on this report and our performance. A feedback form can be found at www.barrattdevelopments.co.uk.

Mark Clare GROUP CHIEF EXECUTIVE September 2013

This report relates to the full scope of our operations for the period 1 July 2012 to 30 June 2013 (referred to in this report as 2013)

Front Cover: Derwenthorpe, York – new sustainable community constructed to the highest design and sustainability standards. HIGHLIGHTS & AWARDS CONTENTS

Highlights and awards Some of our achievements this year 01

Our approach to sustainability An overview of the Barratt Group and what we do 02 An explanation of what sustainability means at Barratt and how our strategy is incorporated into our business model 03 An analysis of our sustainability governance structure, approach to data capture and reporting and how we engage with stakeholders 04 Insight into the sustainability risks and opportunities we face across 13 BEST LOW OR ZERO CARBON INITIATIVE FOR AIMC4 – HOUSEBUILDER AWARDS 2012 our business, their potential impact and how we manage them 06

Planet Explanation of how we balance the needs of our business with those of our customers, the communities we operate in and the wider impact of our operations 08

Partner Our approach to engagement with local and national government, land owners and developing long term relationships with subcontractors and suppliers 14

Customer How we deliver the best quality homes, great customer care and 17 BEST COMMUNITY INITIATIVE FOR 20 RECORD-BREAKING 102 QUALITY AWARDS – value for money 20 OUR SPACE YOUR PLACE – NHBC PRIDE IN THE JOB CAMPAIGN 2013 HOUSEBUILDER AWARDS 2012 People Attracting and retaining the best people and providing an inspirational working environment 24

Health and safety How we deliver upon our commitment to high standards of health and safety and the welfare of our workforce and the public at all times 28

Performance targets How we performed against our 2013 targets and the targets set for 2014 30

Performance data Summary of our year on year 28 ONE NATIONAL, ONE REGIONAL 25 BEST TRAINING SCHEME FOR OUR AND NINE COMMENDED SITES – GRADUATE DEVELOPMENT PROGRAMME – performance data 32 NHBC HEALTH & SAFETY AWARDS 2013 WOMEN IN CONSTRUCTION AWARDS 2013 Assurance statement Independent verification of the report and the data IBC

Link to further information is illustrated with the following markers:

For further information see www.barrattdevelopments.co.uk

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 01 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

OUR APPROACH TO SUSTAINABILITY WHY SUSTAINABILITY COUNTS AT BARRATT Barratt Developments PLC is one of the nation’s largest housebuilders operating throughout Great Britain. At the heart of our business is a commitment to creating sustainable homes and communities to meet the housing shortage the country faces. We are also committed to do so in a way that minimises the environmental impact of our operations and maximises the social and economic benefits of what we do.

WHAT WE DO COMPLETION FIGURES BY REGION Our principal activities comprise acquiring developable land, obtaining planning and building high quality homes and communities. Our core activities are supported by expertise in partnerships, procurement, design and strategic land.

In 2013, including joint ventures, we completed 13,663 homes (2012: 12,857) on an average of 387 active sites (2012: 386) and directly employed on average 4,781 people. Our financial performance is set out in our 2013 Annual Report and Accounts.

During the year our housebuilding business traded under the Barratt Homes, David Wilson Homes and Ward Homes brands out of 25 divisional offices1 building homes from Inverness to Plymouth. Wilson Bowden Developments is our commercial development business.

We operate in established housing markets as well as developing pioneering urban regeneration schemes.

Our customers include first time buyers, families, investors and housing associations. We build more homes for housing associations than any other housebuilder. Our local teams strive for the highest standards of customer satisfaction by delivering outstanding service and build quality.

Region Completions including JVs Northern 2,410 Central 2,377 East 2,416 Southern 2,245 London 1,586 1 On 1 July 2013 we opened an additional division in Aberdeen and West 2,629 we are also in the process of opening a central London division.

02 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Darren Frost, apprentice at our Trumpington Meadows development, Cambridge.

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WHAT SUSTAINABILITY MEANS TO BARRATT Sustainability is about maximising long term value for society in terms of economic performance, and the social and environmental impact of our business operations. Meeting society’s housing needs by buying land, delivering υ PL planning and building homes and communities is a complex AND ANN task. It can only be achieved by working closely with all of L IN υ G our local and national partners to create exceptional places N CE υ to live and work. But it is not just about how we build R AN U M PL D individual homes, it is also about how we create R A E T O N S communities for the long term. E F E I R R T G E N R OUR SUSTAINABILITY STRATEGY P E υ

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2 Our Sustainability Policy and other associated policies are available on our website at www.barrattdevelopments.co.uk

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 03 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

OUR APPROACH TO SUSTAINABILITY MANAGING OUR SUSTAINABILITY STRATEGY The Board has overall responsibility for our sustainability strategy, with delivery delegated to the Executive Committee to ensure it is embedded into the business.

GOVERNANCE STRUCTURE

Group Board/Executive Committee

Determine Sustainability Strategy

Sustainability Responsibility: Group Chief Executive

Company Secretariat Risk Committee Sustainability Steering Committee Operational Responsibility for Delivery

of Sustainability Strategy: Company Report to Audit Committee Secretary, Dedicated CR Manager Stewardship of Sustainability Programme

Health & Safety/ Communications Planet/Partner People Customer

Led by Led by Led by Led by Group Sales and Corporate Affairs Director Chief Operating Officer Group HR Director Marketing Director

Governance arrangements reports directly to the Board and is attended by Significant sustainability risks that could Each Philosophy is sponsored by a member the Chief Operating Officer; the Safety, Health impact on the future of the business are of the Executive Committee, who is responsible and Environment Director; Group General reviewed and form part of the principal risks for developing and implementing sustainability Counsel and Company Secretary; and the and uncertainties disclosed in our Annual related objectives and targets to achieve the Director of Human Resources. Report and Accounts. overall strategy set by the Board. To develop ideas and drive the performance Risks and opportunities Remuneration linked to sustainability of our Sustainability programme we have a Sustainability risks and opportunities are The annual incentive targets for members of dedicated Sustainability Steering Committee identified and managed as part of the ordinary the Executive Committee and other members chaired by our Chief Operating Officer. course of business, by the management teams of senior management include sustainability A team of specialists ensure our homes that run the day to day business. targets related to customer service, health meet continually changing sustainability Key sustainability risks and opportunities are and safety and employee engagement. standards and develop solutions to meet reviewed by a Risk Committee which, in turn, There are penalties in the schemes, if the the challenge of making all new homes reports to the Audit Committee of the Board. Group’s customer satisfaction and health ‘zero carbon’ in the future. The Group General Counsel is responsible for and safety targets are not achieved each year. Our Health and Safety Committee provide ensuring that adequate information in relation specific focus on continuous improvement of to social, economic, environmental and health and safety performance. This Committee governance matters is available to the Board.

04 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 Management systems Future proofing Stakeholder engagement Operationally, all divisions within the Group We are reviewing our sustainability risks, data We engage with a wide variety of stakeholders continue to maintain integrated safety, health collection and monitoring systems with a view to help us understand and address the wider and environmental (SHE) management to introducing a series of new sustainability social, economic and environmental impacts systems externally certified to OHSAS 18001 related KPIs. These will include energy and of the Group. and ISO 14001 respectively. We also have a greenhouse gas KPIs to enable the business In 2012 we scored 72% in the FTSE4Good dedicated team of SHE Managers, reporting to drive down emissions. Index. We continue to participate in the to the SHE Director, who audit compliance Barratt continues to take part in the NextGeneration benchmark. We scored to these standards on a regular basis. Government’s Carbon Reduction Commitment 61% in 2012 (35% in 2011). We will look for (‘CRC’) scheme and have improved our ranking continuous improvement in 2013. Sustainability data year on year. We use the Philosophies internally to We have specific key performance indicators We are prepared for the Government’s communicate our sustainability progress (KPIs) to assess progress against each of our Mandatory Greenhouse Gas (GHG) Reporting to our employees. This is done via a sustainability targets. requirements and have included our significant combination of methods including Our Internal Audit team review the operational GHG emissions in this report and ‘Foundations’, our internal staff magazine. robustness of the KPIs within their standard in our Annual Report and Accounts. divisional audits. We are the only leading housebuilder to have our Sustainability Report including data externally verified.

HOW WE ENGAGE WITH OUR STAKEHOLDERS

Customers Housing associations Our Customer Charter sets out how we engage with customers. We build more affordable housing than any other housebuilder We monitor customer satisfaction through independent eight week and work closely with our registered provider partners to improve and nine month HBF/NHBC surveys. affordability for local people. We hold regular meetings with our partners at a local, regional and national level. Employees We engage with employees via emails, intranet, briefings, newsletters Suppliers and subcontractors and our Group Foundations magazine. We provide annual staff We maintain a strong supply chain selected through a formal appraisals, six monthly personal development reviews and undertake procurement process who we engage with on a regular basis to ensure annual employee engagement surveys. compliance with our policies and procedures. We hold an annual supplier forum attended by our CEO and Chief Operating Officer. Investors and analysts We are committed to the highest level of transparency in our reporting, UK Government and related agencies supported by a comprehensive investor relations programme. Investor We maintain regular dialogue with key Government Departments feedback is independently collected and regularly reported to the Board. and agencies to understand and influence changes in policy for mortgages, finance, planning, regulation and sustainability. Our Providers of loan finance CEO is a member of the Government’s Green Construction Board, We maintain good relationships and meet regularly with our providers and a trustee of the UK Green Building Council. of finance. We also update them frequently on the Group’s performance.

Landowners, agents and development partners Peers and trade associations We maintain good relationships with landowners, purchasing more We are members of key industry trade bodies including the Home land than any other developer. We have a dedicated team dealing Builders Federation (HBF) and Confederation of British Industry (CBI) with public land and funding programmes and have been selected and regularly engage with the National House-Building Council for all HCA regional Delivery Partner Panels and that of the Greater (NHBC) and Council of Mortgage Lenders (CML). London Authority. Charities, NGOs and research partners Local communities We support charities and campaign groups at a national and local We are committed to community engagement and have developed level and promote ‘best practice’ research through our work with the the Barratt Consult manual to guide our approach to consultation. UK Green Building Council, Building Research Establishment (BRE) We support local projects and work with local schools to promote and involvement with the ground breaking AIMC4 project. We have site safety. recently partnered with Sheffield Hallam University to provide a Foundation Degree in Residential Construction. Local authorities We maintain good relationships with local authorities and engage with planning authorities throughout the planning process. We monitor and report our performance in securing planning approvals via the Executive Committee and with local managers.

Further information about how we engage with our stakeholders can be found on our website at www.barrattdevelopments.co.uk

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 05 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

OUR APPROACH TO SUSTAINABILITY SUSTAINABILITY RISKS AND OPPORTUNITIES

KEY RISK IMPACT MANAGEMENT VIA OUR PHILOSOPHIES Failure to identify and achieve key Increased costs in the building Compliance with all environmental construction milestones, including of homes. Damage to natural and other requirements. Regular exposure to environmental/ resources and ecology within monitoring of environmental climate change requirements and around our developments impact indicators that can delay construction

Increasing regulatory requirements Increased cost of building homes Commitment to be involved in including climate change and increased research and setting and undertaking research adaptation, flood mitigation, development costs to address the implications ecology, energy use, carbon of Government regulation emissions and waste to landfill on our future developments

KEY OPPORTUNITY BENEFIT MANAGEMENT VIA OUR PHILOSOPHIES Market differentiation Improved sales and awareness Regular review by dedicated of our products due to higher quality and design experts and through the Chief of the products we offer Operating Officer’s monthly Operations Committee meeting

Enhancement of our products Reduced financial risk Commitment to design new through innovative designed associated with future homes to be energy efficient solutions regulatory requirements and cost effective and to improve construction processes to reduce operational energy/GHG emissions and waste to landfill

KEY RISK IMPACT MANAGEMENT VIA OUR PHILOSOPHIES Failure to meet the standards Damage to corporate reputation Structured project plans and expectations of our and relationships with partners and regular project meetings development partners with partners

Failure to work efficiently with Reduced quality resulting in Working in partnership with our our supply chain and to access damage to corporate reputation suppliers and subcontractors a sufficient base of skilled from poor service and reduced to seek enhanced performance subcontractors resulting in customer satisfaction and access to high quality delays and poor quality suppliers through our sustainable procurement processes

KEY OPPORTUNITY BENEFIT MANAGEMENT VIA OUR PHILOSOPHIES Increased efficiency and Enhanced quality of build Dedicated procurement, technical effectiveness and increased and lower operating costs and construction teams conduct market values of the homes regular reviews and seek we build, due to their appeal to enhance the working and lower build costs relationship with all our suppliers and subcontractors

06 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 In our Annual Report we outline our approach to risk management, describe the principal risks to our business strategy and present our approach to mitigation. By their very nature, sustainability risks are intrinsic to our business. Outlined below is a summary of our key sustainability risks and opportunities and how they are addressed.

A full review of principal risks and uncertainties can be found in our 2013 Annual Report and Accounts and on our website at www.barrattdevelopments.co.uk

KEY RISK IMPACT MANAGEMENT VIA OUR PHILOSOPHIES Failure to meet customer Damage to corporate reputation Our commitment to retention of expectations from unacceptable service and the Home Builders Federation 5 reduced recommendations Star ranking for customer service impacting sales

KEY OPPORTUNITY BENEFIT MANAGEMENT VIA OUR PHILOSOPHIES Customer engagement Increased sales due Dedicated customer care, design, and good design to highly desirable home technical and sales teams that and development designs regularly engage with our customers and review the designs of our homes and the places we create

KEY RISK IMPACT MANAGEMENT VIA OUR PHILOSOPHIES Inability to recruit and/or retain Absence or loss of key individuals, Ensuring we recruit and retain employees with appropriate leading to reduced operational the best people, celebrate skills sets or sufficient numbers performance and sales their successes and devote of such employees appropriate resources to their development and training

KEY OPPORTUNITY BENEFIT MANAGEMENT VIA OUR PHILOSOPHIES Ensure our employees are Engaged workforce and Annual engagement surveys. engaged and are properly maintenance of the high Dedicated training courses for trained and developed standards that we expect, all employees and specialised leading to strong operational training for our sales team. performance Future Talent programme for regular recruitment and training of apprentices, graduates and other young people

KEY RISK IMPACT MANAGEMENT VIA OUR PHILOSOPHIES Unsatisfactory health Injury to employees, Dedicated Group Safety, Health and safety performance subcontractors and site visitors, and Environmental (SHE) team, delay in construction/increased lead by a designated Director, costs, reputational damage/ independent of operational criminal prosecutions and civil management. Monitoring litigation, increased operational of developments at least monthly costs and insurance premiums

KEY OPPORTUNITY BENEFIT MANAGEMENT VIA OUR PHILOSOPHIES Safe operating environment Recognition that health and Report performance quarterly and a reputation for delivering safety is paramount to our to Health and Safety Committee effective industry leading overall performance leading and formal six-monthly reviews by actions and performance to lower operating costs and Executive Committee and Board insurance premiums

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 07 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PLANET SUSTAINABLE FUTURES

Our Planet philosophy – “Respecting today’s environment whilst creating tomorrow’s communities.”

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We are committed to minimising the impact TARGETS UPDATE of our operations on the environment. t
Reduced the amount of waste produced per unit by 3.4% t
Maintained our diversion of waste from landfill at 95% During the year we reviewed our Planet philosophy for three consecutive years to identify the key factors which will drive our future t
Planted 20 shrubs or trees per new home legally completed sustainability commitments. These are: in the financial year t
Environment, climate change and ecology AWARDS t
Design and innovation of our homes In 2012/13 key awards included: and developments. t
Sustainable Developer of the Year at the What House? Awards 2012 Additionally we are focused on educating our t
Sustainable Housebuilder of the Year at the Housebuilder employees and customers about the benefits Awards 2012 of more sustainable homes and living.

08 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Lillies Hill, Bognor Regis – a new community of homes and local facilities. 2. Windmill View, East Hampshire – new family homes amid the beauty of the South Downs National Park.

100 % 2.77 New

ISO 14001 certification tonnes of CO2e per 1,000 sq ft sustainability policy statements

2

ENVIRONMENT, CLIMATE CHANGE Our greenhouse gas emissions AND ECOLOGY Our gross GHG footprint for this year BARRATT GHG EMISSIONS 2013

was 36,196 tonnes CO2e. This is based Tonnes CO2e Policy and management system on the energy used in our offices, on live Climate change affects every aspect of developments and for business travel. our business from the homes we design, This excludes emissions from air conditioning to how we deliver our developments and in offices and any third party emissions. run our offices. It also extends beyond Our major areas of carbon emissions are our company into our supply chain partners. from our Scope 1 (gas, diesel and LPG) and We have: Scope 2 (purchased electricity) emissions t
Introduced new policy statements for Climate representing 45% and 36% of our overall Change and Ecology & Biodiversity GHG footprint respectively. t
Successfully operated our externally certified This equates to 2.63 tonnes of GHG ISO 14001 environmental management emissions per legally completed unit or 2.77 Scope 1: Diesel, LPG and Gas 16,287 system (EMS) since 2004 and have once tonnes of GHG emissions per 1,000 sq ft Scope 2: Electricity 13,035 again achieved 100% certification across legally completed. Scope 3: Business travel by all our 25 operating divisions. cars/vans, rail and flights 6,874 Carbon Reduction Commitment During the year there were no environmental We continue to report under the CRC Energy prosecutions or fines. Efficiency Scheme. For the year to 31 March

2013 we reported 4,121 tonnes of CO2 Data collection and reporting emissions compared to 4,456 in the previous We plan to implement a new centralised 12 months. Last year we said we would aim sustainability data system over the next year, to reduce our emissions by 2%. We achieved including new mandatory greenhouse gas a 7.5% reduction mainly due to changes in the (GHG) reporting requirements. This will enable reporting requirements. us to better monitor usage and emissions. We will also deploy our Climate Change policy and KPIs and set targets for GHG reduction.

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 09 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PLANET

95% 6.2561% 60% waste recycled for tonnes construction developments units with internal last 3 years waste per unit incorporating SUDS water saving features

Waste Solutions to reducing water consumption, The Group continues to focus on waste such as low flow showers and taps, do not management and we have been working always meet customer demands. Therefore with our partners Reconomy and Powerday we work with our suppliers to provide fixtures for many years to minimise or recycle waste and fittings that satisfy our customers yet from our developments. reduce water consumption. 60% of our t
We achieved a 3.4% reduction in our waste KPI, completed units had low capacity water saving which is 6.25 tonnes of construction waste per fixtures installed. Water consumption of our legally completed unit (2012: 6.47) or 6.57 homes is generally between 105 to 125 litres tonnes of construction waste per 1,000 sq ft per person per day (l/p/d) compared to circa t
We have maintained a sector leading 150 l/p/d for older properties. CASE STUDY diversion of waste from landfill rate of 95% We used 7,966m3 of water in our or greater for the last three years, in line with offices and 203,927m3 of water across our our target. Next year we will aim to maintain construction sites. Not all usage is metered at least this level and investigate options for and as such the data provided relates to just Marston Park – diversion of the remaining packaging waste. 53% of our offices and 57% of our sites. Planning requirements dictate that all potential Sustainable 100% of our offices are recycling paper developments are assessed for flood risk, and waste and 73% have other recycling where this is identified they are designed to Soil Management schemes in place. protect against this risk. Safeguarding natural water resources is also of utmost importance Our Marston Park development Water management and flood risk and we ensure preventative measures are in is delivering 400 new homes in a The extremes of water scarcity and flooding place on all our developments. village setting in Marston Mortaine, challenge us to design our homes to minimise between Milton Keynes and Bedford. water demand and our developments to During design development we effectively manage storm water run-off. recognised that raising site levels would During the year 61% of our developments avoid the need for a pumped drainage incorporated sustainable urban drainage system. However, a significant amount systems (2012: 61%). of fill material was required which could outweigh potential benefits in both financial and environmental terms. CONSTRUCTION WASTE Tonnes per legally completed unit To overcome this we operated a sustainable soil management strategy, 13 6.25 where cut and fill was managed collectively across a number of local 12 6.47 sites. This approach delivered a number 11 6.36 of environmental benefits. 10 6.45 09 5.67 In addition to avoiding the need for pumped drainage, it averted the need to source new material for Marston Park, disposed of surplus material from CONSTRUCTION WASTE SEGREGATED ON-SITE FOR RECYCLING neighbouring sites and reduced the % distance travelled by delivery vehicles.

13 95 12 96 11 95 10 92 09 73

10 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Mark Clare, Barratt Chief Executive with Jane Moseley, Operations Director of the British Beekeepers Association.

66% 20 27% shrubs and trees homes on brownfield land planted per home green space on our developments

Ecology and biodiversity While there is concern about the effects of construction on ecology and biodiversity, it is important to recognise that much of the land we build on had a former use. This provides an opportunity to improve and encourage biodiversity as well as regenerate a local area. During the year 66% of our homes were built on former brownfield land (2012: 65%). We conduct ecology surveys on our developments as standard practice, often resulting in site-specific action plans to protect and enhance biodiversity. During the year 18% of our developments had a biodiversity action plan (or equivalent) in place. This is an area we CASE STUDY will continue to review closely.

During the year: t
We exceeded our target of planting at least Greylees, Lincolnshire – Delivering 10 shrubs or trees per legally completed unit home by planting 20 per unit. Environmental Improvements

Across our developments: At our development of the former hospital site we have restored an abandoned orchard, t
We planted and retained 310,923 trees creating a new facility for the local community. and shrubs and created 739 hectares of wildlife habitat Working with North Kesteven District Council and Lincolnshire Wildlife Trust we restored the area to the criteria of a traditional orchard as defined in the ‘UK Biodiversity Action Plan’. t
We had 330 hectares of green public open space and 226 hectares of private gardens. The work included the provision of enhanced species-rich grassland, new edge habitats, This provides a net gain of green space bee hives and hedgehog boxes. Benches, carved from old trees on the site, were added across our developments, accounting to encourage rest and relaxation. for some 27% of the total site area developed which has the potential as a wildlife resource. At a community day residents planted 45 trees and 1,000 wildflower plugs to officially open the new Community Orchard. The names of the residents who planted the trees Next year we will launch our Ecology and were added to an interpretation board at the entrance, which also remembers the rich Biodiversity Policy and continue to monitor heritage of the site and those who benefited from it historically. and review our ecology KPIs whilst engaging with a recognised national ecology body to investigate and develop our strategic approach in this area.

Bee friendly planting campaign nationwide over the next three years – an area The Group has joined the fight to save the size of 100 football pitches. the British honey bee, by nurturing more We will work with the charity on how to bee-friendly plants at our developments. encourage bees and ensure their food supply We have set up a partnership with the is maximised. We will also work with our home British Beekeepers Association and will owners to provide help and advice in creating change the way we landscape open spaces bee-friendly environments. 1 and showhome gardens at 400 developments

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 11 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PLANET

We are delighted to be working in partnership with an award-winning housebuilder who has 47% proven their ability to build bespoke homes developments with enhanced to high environmental standards. CO2 standards Nigel Ingram, Director of Development and Asset Management, Joseph Rowntree Housing Trust

DESIGN AND INNOVATION OF OUR HOMES AND DEVELOPMENTS

Building more sustainably We continually review and improve the design and specification of our homes and our developments to ensure we are delivering the latest standards which also meet our customers’ requirements. Every new home built to current Building Regulation standards is between 45% and 55% more energy efficient than a typical Victorian property of the same size with modern day improvements. Our new homes can potentially save customers more than CASE STUDY £1,000 per year in heating and hot water costs alone, as well as offering the environmental benefit of reduced carbon emissions (see diagram below). Derwenthorpe, York – Outstanding Our priority is to improve the fabric efficiency of homes, minimising the need for Modern Day Garden Village bespoke renewable energy technologies which are complicated and expensive to both fit and The Joseph Rowntree Housing Trust set out to build a modern day garden village maintain. During the year we: of the highest standards of design and sustainability. t
Completed 32% of homes (2012: 26%) They needed a partner to deliver their ambitions and initially selected the Group with enhanced CO2 performance via fabric improvements to deliver the first phase of 64 dwellings. As phase 1 neared completion we were delighted to be selected to deliver the remaining phases. The success of phase 1 t
Integrated renewables on 28% of our and the strength of the relationships developed with project stakeholders were key developments (2012: 30%) factors in the Trust’s decision. In total, we’ll be constructing 489 bespoke homes t
Completed 4,277 homes that met the in pedestrian-friendly streets and generous landscaping. CfSH level 3 or above (2012: 3,820) t
Completed 849 homes that met the previous Homes have been constructed to various standards up to Code Level 5. All meet the EcoHomes Standard (2012: 1,150) stringent fabric energy efficient standard (FEES) and are supplied with heat and hot t
Enhanced CO2 performance above building water from an on-site biomass energy centre. Innovative winter gardens and mechanical regulations was in place across 47% ventilation with heat recovery installations are also incorporated. of our developments.

Local energy solutions We have teamed up with E.ON to provide cost ANNUAL HOUSEHOLD ENERGY SPEND effective, reliable ways of cutting emissions for homebuyers. We have contracted with E.ON to deliver eight major projects using combined 4 bed detached house £2,370 £1,067 £1,312 heat and power (CHP) and district heating 3 bed semi-detached house £1,621 £781 £840 infrastructure, providing a projected 9,500 3 bed mid-terrace house £1,388 £746 £642 new homes with local and low carbon energy solutions. To date over 3,900 homes have 1 bed ground floor flat £915 £489 £426 already been connected. Victorian New build Savings with modern built to 2010 Barratt 2010 Further to this, we have another four major day improvements regulations range vs. Victorian developments with commitment to implement district heating infrastructure supplying an Figures produced by the Zero Carbon Hub in conjunction with the NHBC Foundation and the BRE trust. estimated 4,500 additional homes.

12 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Hatton Meadows, Corby – AIMC4 homes built to CfSH level 4 energy requirements without renewable energy installations.

31% Best homes CfSH level 3 or above Low or Zero Carbon Initiative 2012

Research and development The Group is committed to meeting the UK Zero Carbon Standard from 2016 and works closely with partners such as the Zero Carbon Hub and various Governmental and non- Governmental task groups to shape sustainability legislation. Barratt Group Chief Executive Mark Clare is a member of the Government’s Green Construction Board and a Trustee of the Building Research Establishment (BRE) and the UK Green Building Council. Next year we will continue to adopt an industry leading role in influencing policy and developing innovative solutions to meet 1 the challenge of Zero Carbon Housing.

Sustainable housing exemplars CASE STUDY We are delivering a number of exemplar projects which will maintain our industry- leading role in large-scale sustainable housing developments: AIMC4 – Pioneering t
At Hanham Hall, Bristol we are delivering Low Carbon Homes 195 mixed tenure homes designed to the proposed Zero Carbon standard, alongside In 2009 we were one of the founding partners of AIMC4 with Stewart Milne Group, complementary community uses as part of Crest Nicholson, building material manufacturer H+H UK Ltd and the BRE. a new sustainable community in partnership with the HCA. We completed 42 units This innovative research partnership aimed to design and build homes that achieve in 2012/13 the energy performance of the CfSH Level 4 through fabric and building services alone. Our homes have now been completed and post-occupancy testing results t
At Derwenthorpe, York we are partnering are being analysed. with the Joseph Rowntree Housing Trust to deliver a development of 540 homes using The partnership has been a great success with excellent collaboration between innovative construction methods including the partners, suppliers and customers to overcome a combination of technical, thin-joint blockwork, mechanical ventilation commercial and customer challenges. and heat recovery, and a biomass fuelled CHP plant The first 18 months were used for technical discussion and assessment. Potential t
At Scotswood, Newcastle upon Tyne, we suppliers were invited to workshops to present their products, then subcontractors have started work on a £265m development and suppliers were invited to tender. A ‘lean’ construction approach was delivered of 1,800 new homes built to CfSH Level 4, through workshops which brought together architects, designers, suppliers and contract managers. Design and construction issues were considered. Build assembly which will include a CHP system linked to a issues were analysed with particular emphasis on detailing for walls, floors, roofs and district heating network window junctions and joints. t
In London, we are progressing two major joint venture projects at Fulham Wharf and The partners have now built 17 exemplar low carbon homes on five very different Aldgate Place. Both developments are developments across the UK. At the Housebuilder Awards 2012, AIMC4 was named leading the field in high rise sustainable Best Low or Zero Carbon Initiative. developments for the capital.

We will use the learning from our exemplar schemes to explore progressive climate change adaptation strategies.

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PARTNER ADDING VALUE TOGETHER

Our Partner philosophy – “Sustaining a network of local, regional and national partners and stakeholders built on trust, loyalty and mutual respect.”

1

Partnerships are a core element of the Group’s approach. TARGETS UPDATE t
97% of planning applications for developments of over Through working in partnership with others we can realise 100 homes were subject to a public consultation process more opportunities to build high quality developments t
Captured local charity and community work and deliver a range of community benefits which promote and benchmarked best practice as a standard local cohesion and local economic prosperity. Our strategic partner themes fall into three areas: AWARDS In 2012/13 key awards included: t
Effective partnerships which deliver t
Our Space Your Place (DWH North West) won Best t
Community engagement Community Initiative at the Housebuilder Awards 2012 t
Promoting sustainability in our supply chain. t
Derwenthorpe, York (DWH Yorkshire East) won Affordable Housing Development at the Sunday Times British Homes Awards 2012

12

14 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Altitude, Aldgate, London – Topping-out visit by Lutfur Rahman, Mayor of Tower Hamlets Council at our 27 storey landmark skyscraper on the edge of the City of London.

2,268 30% affordable homes completions on public land

EFFECTIVE PARTNERSHIPS The work Barratt has done and continues to do WHICH DELIVER on phase one is of the highest standard and we Stakeholder engagement look forward to furthering our relationship with Working with a wide variety of stakeholders helps us to address the wider social, economic them on the regeneration of North Prospect. and environmental impacts of the Group. Mike Knowles, North Prospect Project Director for Plymouth Community Homes commented From the financing of our business to the views of local people, we have mechanisms in place to ensure the opinions of key partners and stakeholders are understood.

Improving collaboration with Local Authorities In the context of the strong thread of Localism running through the planning process and the increased importance of public land, the Group must have the ongoing support of local decision-makers and local people. Aligning our local agendas with those of our local authority partners provides commercial benefits as well as helping to direct our activities towards supporting local priorities. Following research by MORI, we instigated a pilot project to enhance the capabilities of our divisions to run local authority engagement programmes. CASE STUDY Divisions and consultants worked together with decision makers, councillors, council officials and MPs in ten local authorities across England to pilot a new method of engagement, PL2, Plymouth – Partnership which will be rolled out nationally. Led Regeneration Barratt Partnerships – one stop shop for public sector land and funding We are leading the regeneration of the North Prospect housing estate in Plymouth in This year we merged our partnership partnership with Plymouth Community Homes, the HCA and Plymouth City Council. development and our Government funding specialist team to form Barratt Partnerships, We were initially appointed to deliver the 237 dwellings and a community hub in phase 1. a one-stop shop for public sector land and As phase 1 progressed on site we were also appointed to deliver the 344 homes in phase 2. The strength of our phase 2 proposals combined with quality of our delivery funding. Our 15-person team is our initial point and the effective relationships formed between our team and project stakeholders were of contact for the Homes and Communities key considerations when selecting us for the second phase. Agency (HCA) in relation to its land and funding programmes. The regeneration of the estate has created distinctive new homes and a range of employment opportunities for the local community. On average, 275 workers are required Building affordable homes on-site at any one time. 95% of this workforce comes from Plymouth, 20% of which are The Group builds more affordable housing than from the North Prospect area. any other housebuilder. This year 17% or 2,268 of our completions, excluding joint ventures, To date, we have taken on 11 new apprentices, two of which have been directly were affordable homes (2012: 22% or 2,805). employed by Barratt and the remainder by our subcontractors. Our national team also ensures a consistent approach with housing associations.

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 15 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PARTNER

97% £263 million public consultation affordable housing sales under S106 agreements over 100 homes and S106/equivalent contributions made

Partnerships on public land COMMUNITY ENGAGEMENT Delivering economic and social benefit Partnership developments on public land Through our network of divisions we work Building homes increases local household are more important than ever. To meet future closely with local communities at all stages expenditure, which supports local jobs and housing needs the country will have to double of the development process. Also refer to our contributes to the improved vitality and viability the amount of housing built each year. With new Community Policy. Our approach of towns and villages. As well as long term around 40% of all land with the potential for to community consultation is governed by economic benefits, construction jobs and housing development in public ownership, best practice principles set out in our training programmes are generated. Wherever the Government is prioritising the disposal ‘Barratt Consult’ guidance. possible we use local businesses and suppliers. of public land. This year 97% our planning applications We plan to assess the socio-economic benefit We aim to be the ‘Partner of Choice’ for developments of over 100 dwellings were of our developments next year. for the public sector and have committed subject to a public consultation process. Our activities continue to generate large to setting a target of 15% of our future land We have appointed a small panel Section 106/equivalent (S106) Planning (by unit) coming from public sector sources. of experienced community engagement Obligations. These are sums paid to or work The Group now has more partnership consultants who are well-versed in our undertaken for local authorities to mitigate the developments than any other housebuilder methodology. The aim is to deliver effective extra pressure created by new developments. and our portfolio continues to grow with consultation more consistently and promote This year our contributions were £262.65m. a record number of developments secured the sharing of best practice across the Group. A breakdown is provided below. this year. We secured places on several panels of ‘pre-qualified’ developers for public land disposals, including all four of the HCA regional S106/EQUIVALENT CONTRIBUTIONS Delivery Partner Panels (DPP2) and the Greater £m London Authority (GLA) Delivery Partner Panel. This year 4,144 of our housing completions £7.3 were developed on public land representing £3.0 30% of our completions in the reporting period. £0.3 We also have had offers accepted £232.3 £30.5 £3.9 on public land equating to 4,320 plots with £5.1 a gross development value of £1,023m. £0.1 £2.7 Private sector partnerships £8.1 In response to the challenges and opportunities which arise in a market where the availability Affordable Housing Highway/Public Transport Environmental/Regeneration of development finance is still constrained, Youth/Sport Facilities Education/Public Art Health Care we need to be flexible and innovative about CCTV Admin/Other areas Climate Infrastructrue Levy (CIL) the partners we work with and the development structures we operate under. We therefore have an increasing number of joint venture arrangements including major schemes with: t
London and Quadrant Housing Trust t
Wates t
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Morgan Stanley Real Estate Investing t
Metropolitan Housing.

During the year we were building on eight joint venture schemes. In addition to plots already completed, our current joint venture portfolio will deliver c. a further 5,400 new homes. 12

16 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Maple Quays, Canada Water, London – one of London’s largest regeneration schemes creating a new canalside community in the heart of Rotherhithe peninsula. 2. The Jam themed public art at New Central, Woking. 3. Renowned artist Alison Turnbull artwork at Great West Quarter, Brentford uses all 800 colours in Sto’s industrial render palette.

9% £259,000 developments incorporated public art contributed to charitable initiatives

Public art Our local charity and community as a standard. During the year we supported This year 9% of our developments incorporated involvement activities various initiatives and contributed £259k to public art or heritage buildings (2012: 11%). Our divisions and Group departments pursue charitable causes – this figure is significantly In London we have significantly invested in their own approaches, resulting in a wide higher than reported previously as we have public art on the following developments: range of charitable giving, volunteering and refined the way in which we collect this t
Renaissance, Lewisham local fundraising initiatives which respond information. This is made up of direct business t
Great West Quarter (GWQ), Brentford to local needs and aspirations. donations (£40k), employee raised donations t
Rochester Row, Westminster. We said we would capture local charity and and other donations. Employees volunteered community work and benchmark best practice 546 hours.

CASE STUDY

3

New Central – public art Our Space Your Place – Our Woking town centre development comprises 452 apartments plus shops and Community Initiative offices in a series of eight buildings arranged around a 21-storey tower. David Wilson Homes North West established a fund from which individuals, The Section 106 Agreement called for a organisations and charities can apply for assistance, on condition that the contribution piece of public art in the centre of the scheme. is used to enhance or improve the local community. A divisional committee manages Public consultations produced the idea for a the application process and contributions are awarded of between £100 and £1,000 sculpture recognising the musical talent and per project, volunteer support and/or practical assistance. history of rock band The Jam, whose members Since its launch in 2010, more than 40 projects have received support. Employees were all brought up in Woking. at the division have donated over 200 hours of their own time to assist with the Barratt Southern Counties, the local programme and more than £35,000 of funding has been awarded. authority, residents and all three band members collaborated to commission an artist to provide A highlight was the Christmas 2012 campaign, when Our Space, Your Place worked in a sculpture that will ensure a lasting legacy. partnership with the Sainsbury’s store located on our Chapelford Village development It was unveiled to great acclaim by the in Warrington, to deliver over 3,000 food items for The Ashley Foundation and band’s drummer Rick Buckler with fans flying Warrington Foodbank. in from as far as Scotland and has received a resounding nod of approval from the locals The initiative won the ‘Best Community Initiative’ category in the Home Builders Federation awards 2012. More details: www.ourspaceyourplace.co.uk who came up with the idea.

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 17 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PARTNER

91% 5,527 180 components Group agreements manufactured in UK suppliers with 150 suppliers

1 2

PROMOTING SUSTAINABILITY consideration are recycled content, ecological by our Group Chief Executive and key partners IN OUR SUPPLY CHAIN damage, embodied energy, material use including the Home Builders Federation and Sustainable procurement is good procurement. by design and ability to be recycled. the Zero Carbon Hub. We work with our supply chain to explore Group Procurement spends around £300m We are the only major national housebuilder ways to reduce the environmental and social annually, across 180 supply chain agreements to hold such an event and in the spirit of impacts of the materials and services that with some 150 suppliers. We aim to ensure partnership working we delivered key messages are integral to our business. We also aim to that our activities benefit the UK economy regarding business performance and future spread best practice through the supply chain. and are pleased to report that 91% of our strategy, including sustainable procurement. materials are manufactured in the UK. We have engaged with a number of key Strategic management suppliers on the development of our new The Group procured more than £1.6bn of Engaging with suppliers Sustainable Procurement and Timber Sourcing goods and services in 2012/13 divided into: The Group engages in two-way Policies which have now been approved in t
Direct (build materials) communication with our suppliers, our business. We will work with our major t
Indirect (non-build related services holding bi-annual business review meetings, 30 suppliers to identify gaps in compliance and materials) training days and supplier conferences. with our new policies and put action plans t
Subcontract services. We benchmark suppliers on their in place. environmental performance and work with Our supply chain management is led by Group them to help improve the sustainability of their Sustainable timber Procurement supported by divisional teams. products, including minimising packaging waste. The Group purchases substantial amounts Together they foster and maintain long-term The Group is also concerned with the of timber from suppliers across the UK, who partnering relationships with our suppliers societal impacts and aims to ensure as a source these materials from around the world. and subcontractors. minimum that: We have made good progress on ensuring all t
Working conditions are safe and healthy timber and timber products originate from Group purchasing t
There is no use of child or forced labour well-managed forestry sources. Our Group Procurement function aims to t
Living wages are paid This year just below 100% of our centrally drive benefits through centralised procurement t
There is no excessive working hours sourced and directly supplied timber, was where there is a demand for the same product, t
There is no discrimination relating to religion, certified to either FSC or PEFC chain of custody. material or service across the Group. sex, race or any other such criteria. We are aiming for 100% compliance from We aim for consistency in specification, all sources and will work with our suppliers to technical performance and supply chain This year our annual Supply Chain Conference ensure all timber is sourced from sustainable management as well as delivering cost was attended by over 130 representatives sources by the end of 2013. and sustainability benefits. Key areas of of our Group suppliers, who were addressed

18 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Tudor Evans, Leader of Plymouth City Council and the local Ward Councillor, at PL2, Plymouth with apprentices and staff who were formerly long term unemployed. 2. Hinkler Place, Southampton – Contemporary homes built to CfSH level 4 on an estate regeneration project in partnership with Southampton City Council.

Just below 130 100 % 214,750 Group suppliers at conference certified timber pallets segregated

Local supply chain commitments The Group directly employs office and site management staff. We subcontract the majority of construction works and services from an approved list of locally based subcontractors, specialist consultants and local suppliers. The vast majority of our local suppliers and subcontractors are SMEs with which we typically work on a long-term partnering basis. We often support the development of small companies with practical assistance to ensure they can meet the requirements of becoming a Barratt supplier. We seek to minimise the impact of the CASE STUDY distance travelled by construction materials to their final point of use and work with suppliers and merchants to maximise the proportion of materials that can be sourced The Lyng – Supporting Local Business locally. Many of the build materials purchased centrally are sourced from local distribution The Lyng, West Bromwich, is a large-scale regeneration project delivering 364 new dwellings facilities. By doing so, we reduce transport and quality public open space on a site previously occupied by outdated apartments costs and help protect the environment. and maisonettes. The Group worked with Sandwell Council’s ‘Find it in Sandwell’ team and attended a number of ‘meet the buyer’ events to promote local opportunities for subcontractors and suppliers.

As a result a number of local subcontractors recruited at these events are now working for us on The Lyng and a number of other developments within the region. 70% of the supply chain used on-site are based within 20 miles of the development. Seven local apprentices have been employed to date, with a commitment to appoint a further 13 over the next three years. Each apprentice undergoes a two year course, supported by a written training plan leading to at least NVQ Level 2 qualifications.

5,508 Further benefits delivered by the project include upgrade works to two existing apartment subcontractors (including SMEs) blocks, the provision of a large play area and works to the play facilities at the adjacent primary school.

Scott ELM – supplier pallet initiative PALLETS SEGREGATED ON-SITE FOR REUSE AND RECYCLING Following a project with WRAP, we identified Absolute no. the recycling of timber pallets as an area for improvement. 13 59,994 We engaged a specialist pallet management 16,670 business, Scott ELM, to develop and manage 12 59,734 a pallet return service. Good quality pallets 16,559 from site are returned to suppliers for reuse 11 37,803 following full inspection and repair, while scrap 17,825 pallets are recycled. 10 3,246 Since rolling out the programme nationally 2,919 on over 430 sites we have collected 214,750 Repatriated pallets (sent for reuse) Pallets sent for recycling pallets and increased the levels of repatriated pallets from 53% to 78% over four years.

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 19 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

CUSTOMER ENHANCING OUR CUSTOMER EXPERIENCE

Our Customer philosophy – “Understanding and delighting our customers throughout their journey with us, creating customers for life.”

1

Customers are at the heart of our business. TARGETS UPDATE t
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20 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. The Davies family – our first ‘second stepper’ to purchase under the Help to Buy scheme. 2. Greenkeepers Meadows, Biddenham Vale – one of the latest phases of our West of Bedford large urban extension. 3. De Baliol Court – another phase of our Biddenham Vale urban extension.

Our new home at Trumpington Meadows combines traditional build techniques and new technology to increase sustainability and cut energy bills. We chose a range of optional extras for our home including solar hot water panels and mechanical ventilation and heat recovery. During July’s heatwave we noticed the house stayed a lot cooler than our previous home, which was built over 100 years ago, and although we’ve not been in the property long enough to tell, we can almost guarantee our energy bills will be cheaper. Miss Hewitt & Mr Griffiths, customers at Trumpington Meadows, Cambridge

DESIGN AND SUSTAINABILITY so that we are designing and delivering to the latest guidance. Next year we will finalise and Creating great places to live launch our ‘Placemaking Guide’ which will Improving the design of both the homes and provide guidance for delivering places using developments that we build is critical for our the BfL12 criteria. business. Since its introduction in 2009 our ‘Great Places to Live’ internal design standard Sustainability features now drives our approach throughout the We provide a range of sustainability features design cycle by: in our homes and developments and are 2 t
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Rewarding the very best of the new places efficiency. It also takes into account the needs that we create via our annual internal Q17 of our customers in terms of the running costs, design awards – with evaluation taking place sustainable living such as convenience to once built. public transport nodes and creating great places to live. We completed 782 units that met the Building Next year we will introduce standardised for Life Standard (2012: 1,158). With the information on the sustainability of homes emergence of the National Building for Life to our developments and provide purchasers 3 12 standard (BfL12), we are in the process of with a guide to living sustainably in their homes. updating the way our Q17 process is applied,

CASE STUDY Trumpington – Showcasing Sustainability

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BARRATT DEVELOPMENTS PLC Sustainability Report 2013 21 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

CUSTOMER

Our family lived near to Hanham Hall, so we knew all about the fact that it is one of the country’s most energy efficient new developments. And we were also aware of its attractive layout. We felt that it offered a real community – so we were really keen to buy our first home here. Michael Gee and Chloe Chalk – Purchasers via New Buy at Hanham Hall

RESPONDING TO CUSTOMER NEEDS

Making home ownership accessible It remains one of our greatest priorities to ensure that our customers can gain access to all the available and appropriate finance there is within the market to buy a new home. The amount of deposit required to purchase a new home has continued to be one of the main barriers for many customers. Our Head of Lending has been particularly focused in the last year on ensuring that our customers have access to the very best low deposit schemes available in order to increase accessibility to home ownership. We have worked closely with Government and all the major banks and building societies to address this issue. By building long-term relationships and confidence in the sector we have contributed to the development of a number of Government-backed solutions in the last year, namely: t
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To ensure our customers have the best possible chance of buying homes with these schemes, we have worked closely with lenders to develop processing solutions, typically though specialist New Build desks, that ensure our customers’ applications are dealt with in a way that allows them to meet agreed timescales and can proceed to completion in a stress-free way. 1 Alongside these Government schemes we have also worked with Regional Building Societies to develop a range of additional 95% loan products where customers’ circumstances do not meet the Government schemes’ criteria. This continues to offer increasing opportunities for home ownership.

Leasehold management service Next year Barratt Residential Asset Management (BRAM), our own management company to maintain leasehold properties, will operate on our new developments in London. This will build on the company’s commitment to customer service. The objective will be to give our customers a high quality service at a very competitive cost that ‘cements’ our commitment to their development for its life.

2

22 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Hanham Hall – Michael Gee and Chloe Chalk first time buyers purchasing via NewBuy. 2. Hanham Hall, Bristol – one of the UK’s most sustainable developments. 3-5. We have made major improvements to our house designs in response to customer feedback. Amongst other areas, we have increased the quality of natural light in living areas and improved the links between the gardens and inside living space. 15,500 HBF 5 Star appointments via enhanced housebuilder status call centre systems for the fourth consecutive year

MEASURING CUSTOMER and product quality we have worked with HARNESSING THE BENEFITS SATISFACTION the NHBC in the last 12 months to align our OF NEW TECHNOLOGY reporting and KPIs so that all parts of our 5 Star Builder status business can understand their role in Improving our digital offer The Group has retained the HBF 5 Star Builder customer satisfaction. That means that: More people than ever are researching status for the fourth year running, the only t
All our divisions now have online access products online using their computer, tablet major housebuilder to achieve this: to a suite of reports that are updated PC or mobile phone. We have continued to t
This means that 90% or more of customers on a real time basis, allowing them to improve our digital offering, making it even surveyed said they would recommend us constantly monitor and improve service easier for people to find a new home which to a friend in the customer satisfaction t
Data is provided against all aspects of suits them. We have also invested significantly survey carried out by the Home Builders construction and pre and post-sale service. in a number of different technology solutions Federation (HBF) and the National House- In 2012 we added standard questions that improve the customer experience at the Building Council (NHBC) after eight weeks relating to pre and post-occupation service point of sale. Some key features include: of occupation and quality of remedial works t
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All of these initiatives aim to make us more HBF HOUSEBUILDER STATUS readily accessible for customers and improve Star rating the home buying process.

13 5 12 5 11 5 10 5 09 4

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BARRATT DEVELOPMENTS PLC Sustainability Report 2013 23 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PEOPLE INSPIRING FUTURE TALENT

Our People philosophy – “Attracting and retaining the best people from all walks of life and providing an inspirational environment that encourages them to fulfil their potential.”

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24 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Apprentices at Trinity Village, Bromley Common. 2. Barratt Talent team receiving award at Woman in Construction Awards 2013.

700 69% 20 employee engagement successors promoted ‘Get Recognised’ awards up from 54% Director and MD

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Increase in employee engagement survey sector, 33% of our employees are women. participation of 63% (2012: 61%). We have been targeting increases in the 33 % amount of women in management positions. Next year we aim to maintain or improve both Currently, 17% of our management positions the engagement participation and the level of female employees and 11% of our senior management positions employee engagement. are held by females. Since we commenced our Graduate Recognition Programme in 2007, 50% of our ex-graduates Our ‘Get Recognised’ programme allows our We promoted 20 successors into employed in key roles within the Group are people to be rewarded by colleagues for a job Divisional Director and Divisional Managing female and on track to occupy management well done with instant awards cards of £100 Director positions this year. positions as they grow their career with Barratt. or a day’s holiday available. Through a more structured process, The key benefit of our EMPLOYEE ENGAGEMENT recognition continues to be provided through Apprentice Programme AND RECOGNITION quarterly awards for sales staff, apprentices and We aim to provide our workforce with the skills site managers as well as via individual and team is the pipeline of talent and knowledge to fulfil their roles and advance excellence awards. Just short of 700 awards their careers at Barratt, and create many job were recognised this way (14% of the workforce). it creates for Barratt and opportunities for young employees. We benefit Through our Personal Development Review our subcontractors. from the wealth of experience in the business with (PDR) programme, all employees undertake an 181 employees having more than 20 years’ annual and six-monthly meeting with their line Many of our Managers service, representing 4% of the workforce. manager to review performance, set targets started as Barratt This year we have seen a significant and assess any development or training increase in engagement with our employees needs. This process aids the identification apprentices, including telling us they feel highly committed to Barratt of people with leadership potential and feeds Managing Directors. and its Vision and Philosophies resulting in an: into the succession planning process. Mark Clare, CEO, Barratt Developments plc

CASE STUDY

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BARRATT DEVELOPMENTS PLC Sustainability Report 2013 25 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PEOPLE

181 50% 600 employees with trained on Leadership over 20 years’ service women graduates programmes

DEVELOPING OUR PEOPLE Sales Academy Future Talent Strategy We have introduced a new Sales Academy We have introduced a Future Talent Strategy Structured learning and development programme which provides all of our Sales to provide us with the pipeline of talent we will We have a well-defined career pathway and teams, at all levels, with the opportunity to need in the future. Over the next three years a programme of learning and development develop to their full potential. we are aiming to recruit and train: to ensure that our people have all the support The Sales Academy offers a blend of t
 Graduates – 75 on our main two-year they need to deliver both business and classroom and on-the-job learning as well as Graduate Programme and 75 on our individual career objectives, all including career e-learning, self-development and manager one-year Accelerated Schemes in Sales development plans and induction programmes coaching sessions, and practical assessments. and Construction for new starters and for those taking their first The programme is accredited by the Institute t
 Undergraduates on a formalised steps into management. of Sales and Marketing Management – a first Undergraduate Internship Programme Recruits to our industry-leading Graduate in the housebuilding industry. t
 trade Apprentices plus a number programme undertake two-month placements We are training every one of our 800 plus of commercial and technical apprentices within all of our disciplines in order to provide Sales Advisers and Sales Managers through t
 Construction Foundation Degree a good understanding of the business, this programme, providing our teams with the Trainees on the programme we are which will be invaluable experience for their skills to differentiate us in the industry. designing and developing with Sheffield future careers. Hallam University. To date we have trained over 600 people through our Management and Leadership programmes. Next year we plan to train a Part-funded by further 205 people in these programmes.

CASE STUDY

Foundation Degree – Investing In Our Staff

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26 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Jason Whitehead, former apprentice, winning the Regional SkillBuild Competition 2012 run by the CITB. 2. Receiving award at National Apprentice Awards 2013. 3. Barratt Management team, CEO of Eastleigh Borough Council and Deputy Chief Executive of First Wessex congratulating Paul Ebbs on his award.

800 81 90 plus Sales Advisers through Site Manager programme apprentices and 57 graduates and Managers trained plus 37 on current programme recruited this year

CONSTRUCTION ACADEMY t
 former apprentices are on our Site A key focus is the development of skills for Manager programme. site management. Within the Barratt Academy we run programmes for our construction Within the Academy we also offer an Assistant teams, which provide a clear career pathway Site Manager programme and a Site Manager for those working within the organisation. programme. These develop both technical Our Apprenticeship programme goes and management skills through the classroom above and beyond a standard apprenticeship. and on-site learning. Since its launch in 2010 3 It includes ‘enhanced trade training’ modules we have: with apprentices completing 3 additional areas t
 Assistant Site Managers trained through of study, including practical project work, team the Assistant Site Manager programme CASE STUDY work, environmental awareness, quality control t
 people were working through their and additional health and safety training. programme this year. Throughout the programme, apprentices are assigned a ‘buddy’, coached by a Site We have worked with ACT-UK who partner Paul Ebbs – Manager and mentored by a Construction with Coventry University to provide a unique Director. Our apprentices also get involved learning experience where delegates can Award Winner with ambassadorial schemes such as helping practise their skills within a virtual building site. students with the Construction Baccalaureate, No other housebuilder provides this 0VS
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APPRENTICES AND GRADUATES RECRUITED “Paul shows all round excellence; Absolute no. his enthusiasm for the contribution that young people make in the 13 90 57 construction industry is infectious.” 12 65 23 11 11 10 100 26

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BARRATT DEVELOPMENTS PLC Sustainability Report 2013 27 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

HEALTH AND SAFETY KEEPING OUR PEOPLE SAFE AND WELL

Our Health and Safety philosophy – “We are committed to ensuring high standards of health, safety and welfare of our workforce and the public at all times.”

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28 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 1. Jason White receiving the national award on behalf of our GWQ site team. 2. Walk to School Initiative.

96.6% 36% 5,437 reduction in compliance on visits Injury Incidence Rate SHE site visits

RIGOROUS GOVERNANCE Since we first certified Barratt Developments We operate an integrated Safety, Health and Environment (SHE) management system which systems in 2005 we have seen consistent is externally certified to the international improvements in awareness and performance. standard OHSAS 18001. It is integral Richard O’Neill, Operations Director, Ocean Certification to our commitment to maintain systems that assess health and safety risks at each stage from design and construction, to delivery of new homes to our customers. It is audited by SAFETY, HEALTH AND our SHE Managers and externally certified by WELLBEING INITIATIVES Ocean Certification. We have promoted health awareness amongst All 25 divisions maintained their OHSAS our workforce, developing poster campaigns 18001 certification. in conjunction with organisations such as the British Heart Foundation and the Stroke SEEKING CONTINUOUS Association. We have also supported the IMPROVEMENT IN PERFORMANCE HBF ‘Sun Safe’ campaign and raised 2 Through our Health and Safety Committee awareness of the risks of skin cancer when chaired by our Chief Operating Officer working outdoors. we continually review the risk profile of the A key element of our strategy is worker CASE STUDY Group and set improvement objectives which consultation and a series of briefings have are monitored on a quarterly basis. Key points been provided to all persons working on to note: our sites on the importance of dealing with School Initiative t
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BARRATT DEVELOPMENTS PLC Sustainability Report 2013 29 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PERFORMANCE TARGETS

A summary of our management performance targets for 2014

PHILOSOPHY AREA TARGETS FOR 2014

OUR APPROACH Communication t
Engage with key stakeholders on our Sustainability Strategy and approach t
Refresh communication of our Sustainability Policy and programme following feedback t
Develop our sustainability website offering

Best practice and benchmarking performance t
Publish our greenhouse gas (GHG) emissions on an annual basis t
Implement a centralised sustainability monitoring and reporting database solution t
Continue to participate in NextGeneration benchmark

PLANET t
Continue to achieve at least a 95% diversion of waste from landfill t
Deploy our Climate Change policy and KPIs to set targets for greenhouse gas reduction by end of 2013 t
Launch our Ecology and Biodiversity policy and KPIs and engage with a recognised national ecology body to investigate and develop our strategic approach t
Adopt an industry-leading role in influencing policy and developing innovative solutions to meet the challenge of Zero Carbon Housing

PARTNER t
15% of land (by unit) acquired from public sector sources t
Roll out our Local Authority engagement programme to our Divisions t
Assess the socio-economic benefit of our developments t
Establish KPIs to develop our Community Policy within our business t
Launch our Sustainable Procurement (SP) Policy and work closely with top 30 Group suppliers (by expenditure) t
100% FSC/PEFC timber compliance by end of 2013

CUSTOMER t
Maintain HBF 5 Star housebuilder status t
Introduce information on the sustainability of homes to our developments and provide purchasers with a guide to living sustainably in their homes t
Barratt Residential Asset Management (BRAM) to operate on new developments in London t
Conduct in-depth customer research to further improve our house type designs and customer extras ranges t
Align our Barratt ‘Great Places to Live’ design standard with the national Building for Life 12 guidance

PEOPLE t
Maintain staff turnover below 15% t
Achieve sickness absence below an average of four days t
Aim to provide an average of at least three training day per employee t
Maintain or improve the employee engagement participation rate from 63% and improve engagement levels throughout the business

HEALTH & t
Reduce our Injury Incidence Rate (IIR) by 5% year on year t
Review our SHE management system SAFETY t
Enhance our site briefings on occupational health issues and raise awareness of the benefits of healthy living t
Continue to support industry collaboration through the Home Builders Health and Safety Forum

30 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 WHERE COVERED PHILOSOPHY AREA PROGRESS AGAINST 2013 TARGETS STATUS IN REPORT

PLANET t
Reduce the amount of waste produced per unit by 5% Not achieved See page 10 (reduced by 3.4%) t
Improve or maintain our diversion of waste to landfill at 95% Achieved See page 10 t
Plant at least 10 shrubs or trees per new dwelling legally Exceeded See page 11 completed in the financial year

PARTNER t
All planning applications for new developments of over Not achieved See page 16 100 dwellings will be subject to a public consultation process (97% compliance) t
Capture the local charity and community work and Achieved See page 17 benchmark best practice as a standard

CUSTOMER t
Maintain our ‘Recommend a Friend’ score at 98% Superseded See page 23 t
Retain HBF 5 Star housebuilder status Achieved See page 23 t
Enhance our digital capability making it easier to find a home, Achieved See page 23 reserve and provide feedback

PEOPLE t
Maintain staff turnover below 15% Achieved See page 24 t
Maintain sickness absence below 5% Achieved See page 24 t
Aim to provide an average of at least one training day per Exceeded See page 24 employee during 2012/2013 t
Maintain or improve the 2012 level of employee engagement Achieved See page 24

HEALTH & t
Reduce the injury incident rate by 5% Exceeded See page 28 t
75% of participating sites to achieve 32 points in Considerate Superseded See page 28 SAFETY Constructors Scheme (‘CCS’) (maximum 40 points) t
Internally audit all divisions with an average compliance Achieved See page 28 rate of 93% against our SHE management system t
Carry out monitoring visits to all developments at least once Achieved See page 28 a month

BARRATT DEVELOPMENTS PLC Sustainability Report 2013 31 BARRATT DEVELOPMENTS PLC SUSTAINABILITY REPORT 2013

PERFORMANCE DATA

This table shows the summary data for the reporting period 1 July 2012 to 30 June 2013 and the previous four years. More detailed KPIs and secondary performance indicators are available at www.barrattdevelopments.co.uk

     Number of legally completed units (including Joint Ventures) 13,277 11,377 11,171 12,857 13,663 Number of legally completed units (excluding Joint Ventures) 13,202 11,325 11,078 12,637 13,246 Number of divisions at the end of the period 25 25 25 25 25 Number of developments providing data 538 484 485 522 531 1MBOFU KPI – Number of divisions certified to ISO 14001 25 25 25 25 25 KPI – Legally completed units on brownfield land (%) 70 70 67 65 66 Legally completed units CfSH level 3 or above (%) 5 16 27 30 31 1 Developments with enhanced CO2 performance (%) ––––47 Waste KPI – Construction waste produced per legally completed unit (tonnes/LC unit) 5.67 6.45 6.36 6.47 6.25 Construction waste segregated on-site for recycling (%) 73 92 95 96 95 Climate change – greenhouse gas (GHG) emissions

KPI – GHG emissions (Tonnes CO2e/LC unit) ––––2.63

KPI – GHG emissions (Tonnes CO2e/1,000 sq ft) ––––2.77 Ecology and biodiversity Area of green space on site (hectares) – – – – 556 Area of wildlife habitat created or retained (hectares) – – – – 739 Trees or shrubs planted or retained on the developments (absolute no.) – – – – 310,923 1BSUOFS Number of legally completed affordable units (excluding joint ventures) 2,069 1,870 2,634 2,805 2,268 Legally completed units on public land (%) – – – – 30% Section 106/equivalent contributions (£m) 65.8 208.6 127.4 86.7 262.6 Charitable donations (£) – directly donated 28,300 36,100 45,700 30,205 40,411 Charitable donations (£) – all types 70,381 78,559 113,737 – 258,596 Employee volunteering (hrs) – – – – 546 $VTUPNFS HBF 5 star rating 45555 KPI – Recommend to a Friend (%)2 96 97 98 98 – 1FPQMF Average number of employees (no.) 4,561 4,128 4,405 4,451 4,781 – Female (%) – 32 32 34 33 KPI – Staff Turnover (%)3 18 10 12 12 13 Sickness absence (days/employee) 5.4 4.7 4.3 3.9 4.4 Average training days per employee (days/employee) 2.5 2.5 2.0 2.5 3.0 Employees engagement index (%) 51 54 52 54 69 Employee engagement survey participation level (%) 57 71 58 61 63 Number of apprentices recruited – 100 11 65 90 Number of graduates recruited – 26 0 23 57 )FBMUI
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TBGFUZ KPI – Number of divisions certified to OHSAS 18001 25 25 25 25 25 KPI – Injury incidence rate (per 100,000 persons employed) 571 582 539 511 329 CSCS carded workforce – including subcontractors (%) 95 97 97 97 96 1 This includes any developments with Ecohomes or Code for Sustainable Homes (CfSH) certificates, renewables installed or enhanced fabric. 2 Our internal ‘Recommend to a Friend’ survey was discontinued mid-way through the year and we will report on new independent NHBC survey score next year. 3 Staff turnover excludes turnover due to redundancy, death in service and end of temporary contracts.

32 BARRATT DEVELOPMENTS PLC Sustainability Report 2013 ASSURANCE STATEMENT

This Sustainability Report is the tenth such interviews with Divisional and Group a well-established and rigorous Divisional publication from Barratt Developments PLC personnel has been included. questionnaire process compiled by an (Barratt) and covers the reporting period from However, it is noted that information in external body, Ricardo-AEA Ltd. July 2012 to June 2013. Ocean Certification regard to greenhouse gas emissions and The report continues the theme of practical Limited has been commissioned by Barratt Carbon Reduction Commitment is included exhibits of the way the company strives to to verify the contents of the report. in this year’s report. meet its targets whilst continuing to focus on The purpose of this verification activity performance against targets and improvement is to provide a level of assurance to Our conclusions areas for the next reporting period. Emissions stakeholders that the claims and data Based on the scope of our review our have been identified and measured using contained in this report are based on actual conclusions are outlined below: Scopes 1 – 3 of the WRI GHG Protocol. and reliable information and that it has been appropriately evaluated by Barratt and Inclusivity Responsiveness interpreted into a true reflection of its Has Barratt been engaging with Has Barratt responded to stakeholder sustainability performance. stakeholders across the business to concerns? Barratt have reviewed and communicated develop its approach to sustainability? In verifying this Report, evidence its corporate performance in the form of a Barratt continues to demonstrate its was observed to illustrate how Barratt Sustainability Report which is underpinned commitment to be accountable to those is responding to evolving stakeholder with a Sustainability Policy containing its on which it has an impact and is able to requirements and working in cooperation visions and philosophies. demonstrate stakeholder partnerships with with interested parties such as NHBC and several organisations with examples given we are not aware of any matters that would What we did to form our conclusions including the Homes and Communities Agency lead us to conclude that Barratt has not Our assurance engagement has been planned (HCA) and the Greater London Authority (GLA) applied the responsiveness principle in and performed in accordance with the AA1000 Delivery Partner Panels in addition to a number considering the matters to be reported. Assurance Standard (2008) principles and to of private sector partnerships. meet the requirements for a Type 2 assurance The Company continues its association Completeness engagement. The AA1000AS (2008) assurance with the National House Building Council How plausible are the statements and principles of Inclusivity, Materiality and (NHBC) award schemes and maintains its claims within the Report? Responsiveness have been used as criteria Home Builders Federation (HBF) 5 Star Builder The overriding impression is that the Report against which to evaluate the report. status. This is helping to enhance the existing is straight forward in its approach and easy In order to form our conclusions we inclusive approach to stakeholder engagement for Stakeholders to follow. The use of case undertook the steps outlined below: across the organisation. studies as illustrations of the Company’s t
Internet searches to corroborate claims Collaboration with Local Authorities continues, involvement in sustainability issues helps the t
Verification of data collection techniques providing local as well as commercial benefits. reader’s understanding and covers the t
Validation of data gathering techniques elements required in a robust sustainability and processes and aggregation of data Materiality report. The issues reported are sensibly dealt t
Interviews during certification assessments Has Barratt provided a balanced with and accurately reflect current activities. to test how the sustainability agenda is representation of material issues embedded and stakeholder dialogue concerning its sustainability performance? Observations and areas for improvement managed within the organisation The Company has identified its material To ensure completeness of future Sustainability t
Visits to active construction development issues and from its engagement with relevant Reports, Barratt would benefit from sites and divisional offices stakeholders has retained its foundation consideration of the following: t
Visits to four Divisional offices (Mercia, philosophies for sustainability. t
Investigate the use of ongoing electronic Eastern Counties, East Scotland and This Sustainability Report continues reporting from Divisions to even out the Yorkshire East) specifically to interview to provide relevant coverage of Barratt time scales for information gathering over Directors and Senior Managers in regard Developments’ strategy and performance a longer period rather than the existing to their views on Sustainability, the voracity in managing its five philosophies, giving tight schedule for responding to the of information gathered and the “green” assurance of the commitment of top sustainability questionnaire initiatives as they are implemented management to those philosophies by ensuring t
Review the units which are requested t
Review of Sustainability KPI Summary sponsorship of each by an individual member in the questionnaire to avoid confusion report by Ricardo-AEA Ltd. of the Group Chief Executive’s Committee. The and preclude inaccurate reporting. Chief Operating Officer chairs the Sustainability Limitations of our review Steering Committee which is facilitated by the Reliance has been placed on existing Corporate Responsibility Manager. third party report information and from regular The report itself is again supplemented Verifier: J Martin Thornley* BSc CMIOSH certification assessment visits. In addition, with a full suite of KPIs and secondary Date: 1 September 2013 testimonial evidence gathered during performance indicators gathered through On behalf of Ocean Certification Ltd

* Martin Thornley is a Chartered Member of the Institute of Occupational Safety and Health and is registered as a Lead Auditor with the International Register of Certificated Auditors (IRCA). He is also registered as an Auditor with the Institute of Environmental Management and Assessment (IEMA). As a registered lead auditor he undertakes third party assessments of quality, environmental and health and safety management systems on behalf of Ocean Certification Ltd. REGISTERED OFFICE CORPORATE OFFICE Barratt Developments PLC Barratt Developments PLC Barratt House Kent House Cartwright Way 1st Floor Forest Business Park 14 – 17 Market Place Bardon Hill London Coalville W1W 8AJ Leicestershire LE67 1UF Tel: 020 7299 4898 Fax: 020 7299 4851 Tel: 01530 278 278 Fax: 01530 278 279 www.barrattdevelopments.co.uk

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