Hammerson Annual Supplier Report 2014
www.handstandcreative.com ANNUAL SUPPLIERREPORT 2014 CONTENTS
INTRODUCTION 2
OUR STANDARDS 3
SUMMARY OF RESULTS - PLATINUM 6 - GOLD 8 - SILVER 10 - BRONZE 12
CASE STUDIES - EDGE 16 - NATIONWIDE SERVICES 18 - WATES INTERIORS 20 - KELTBRAY 22
ALL SUPPLIERS RATED BRONZE AND ABOVE 24
WHY WE ASKED 26
WHAT WE ASKED 27
Annual Supplier Report 2014 1 INTRODUCTION
Welcome to Hammerson’s Annual Supplier Report 2014.
This is our second annual supplier report and builds on the impressive results shown by our suppliers in 2013. As a property development and asset management company, much of our business activity is delivered through our supply chain. Developing a systematic but simple approach to monitoring the sustainability standards of our suppliers is therefore critical to the achievement of our sustainability targets and has been a very valuable exercise for us.
We are delighted this year that three of our suppliers, Keltbray, Vinci and Wates Interiors achieved Platinum status. This level is achieved by suppliers who have shown an exceptional level of commitment to engaging with our key areas including, in particular, sustainability initiatives.
The results this year reveal a supply chain with an increasingly considered and sophisticated response to a range of sustainability and corporate responsibility issues. There is a greater commitment to making CR objectives and targets publicly available, increasing use of risk mapping and a move from internal to external auditing of CR reporting. These moves towards greater transparency amongst our suppliers will in turn help raise standards across the board.
In 2015, we will be updating the supply chain survey and inviting all our suppliers to complete it again as part of our on-going monitoring. The pace at which the sustainability agenda is developing demands that we refresh our questions to ensure that, as far as possible, the system accurately reflects the increasingly sophisticated approaches adopted by many of our suppliers to these issues. By exploring and assessing these activities we can celebrate excellence, share good practice and support the developing culture of sustainability right across the sector.
Louise Ellison Head of Sustainability Hammerson
2 Hammerson OUR STANDARDS
Annual Supplier Report 2014 3 OUR STANDARDS
Business integrity and legal requirements
Our standards are detailed in full in our Supplier Code of Conduct, which is publicly available on the Positive Places section of our website.
Hammerson has committed to prevent bribery in all parts of its business. We require that our suppliers share this commitment. Any breach of applicable laws will lead to the termination of our relationship with a supplier.
Hammerson does not tolerate unfair practices to compete for and win business. We also expect our suppliers to make purchasing decisions objectively based on price, delivery, quality and other relevant factors.
Compliance with labour standards
Workers’ Rights Working time Every employee should be treated with respect Suppliers have to comply with national legislation and dignity. All employees have the right to form on working time. or join associations of their own choosing and to bargain collectively. All employees must have Pay a written contract in their local language stipulating Suppliers will comply with local legislation employment terms and conditions. Migrant on minimum wages and undertake to pay employees have the same rights as local employees. employees regularly.
Use of forced labour Hammerson does not accept any forms of forced or compulsory labour. Employee health and safety
Use of illegal labour Hammerson expects its suppliers to maintain an The supplier will not use illegal labour as defined adequate policy on health and safety: by national law. Working environment Child labour A safe, clean and hygienic working environment Hammerson will not tolerate the use of child labour. should be provided and best occupational health and safety practice should be followed. Discrimination No employee shall be discriminated against on the Building safety grounds of sex, race, colour, age, pregnancy, sexual Hammerson requires that its suppliers conduct orientation, religion, political opinion, nationality, their operations in compliance with health and ethnic origin, disease or disability. safety laws and regulations.
4 Hammerson OUR STANDARDS
Emergency situations • Waste and toxic substances management All such events are to be identified and assessed and • Visual, olfactory and noise their impact minimised by implementing appropriate pollution management emergency plans and response procedures. • Local community relationships
Work Accidents and First Aid Hammerson requires its suppliers to have sufficient first aid equipment and first aid trained colleagues Measuring and monitoring to provide immediate aid when required. Suppliers’ compliance with the Code of Conduct is measured through:
Respect for and protection of the Code of Conduct compliance environment A supplier will need to sign up to our Code of Conduct and in doing so agrees to uphold it. Hammerson’s key sustainability objectives are to: Transparency • Reduce carbon emissions by 20% by 2015 Hammerson provides a report to each supplier • Reduce water consumption by 12% by 2015 via the Supply Chain Survey portal and publishes • Increase waste recycling to 85% by 2014 a report of results each year. • Implement biodiversity action plans at all assets by 2015 Process Hammerson requires suppliers to complete the Hammerson suppliers should have an exemplary online survey questionnaire. environmental policy, and strive to improve working practices to achieve the highest possible Review environmental standards. Supplier responses to the online survey questionnaire are reviewed by the staff member This includes supplier products, management working with the Supplier and by the Hammerson systems, and in particular, the following issues: Sustainability Team as part of the annual supply chain report. Suppliers will be given a score for • Sustainable buildings each section within the survey, an overall rating • Biodiversity enhancement and simple feedback on areas for improvement • Water consumption via the Survey Portal. • Energy consumption
Annual Supplier Report 2014 5 SUMMARY OF RESULTS
Platinum award 2014
6 Hammerson SUMMARY OF RESULTS / PLATINUM
(Score range 95 to 100)
Overall Supplier Ranking
Keltbray Group Vinci Construction UK Ltd Construction Construction
Wates Interiors & Retail Services
Annual Supplier Report 2014 7 SUMMARY OF RESULTS
Gold award 2014
8 Hammerson SUMMARY OF RESULTS / GOLD
(Score range 90 to 94.9)
Overall Supplier Ranking
Forster Lamond Ltd P.J Carey (Contractors) Ltd. Consultancy Construction
Laing O’Rourke Construction Ltd Construction
Mitie Technical Facilities Management Ltd Services
Annual Supplier Report 2014 9 SUMMARY OF RESULTS
Silver award 2014
10 Hammerson SUMMARY OF RESULTS / SILVER
(Score range 80 to 89.9)
Overall Supplier Ranking
Derry Building Services Paragon Construction Construction
EIC Ltd RGCM LTD Construction Construction
F B Ellmer Ltd Scott Osborn Ltd Construction Construction
Integral UK Limited Securitas Services Services
Nationwide Services Group Ltd Sir Robert McAlpine Services Construction
North Midland Construction Veolia UK Construction Services
OCS Group UK Limited VSG Services Services
Annual Supplier Report 2014 11 SUMMARY OF RESULTS
Bronze award 2014
12 Hammerson SUMMARY OF RESULTS / BRONZE
(Score range 70 to 79.9)
Overall Supplier Ranking
FaulknerBrowns Abbott Building Limited Architects Construction Architects
Nathaniel Lichfield ADF Architects & Partners Architects Consultancy
AKT II Ltd NDY Consulting Ltd Consultancy Consultancy
Stephen George & Barr Limited Partners LLP Construction Architects
Brymor Contractors Ltd The Shield Group Ltd Construction Services
Carat Workman LLP Services Consultancy
Chapman Taylor Architects
Annual Supplier Report 2014 13 CASE STUDIES
14 Hammerson EDGE 16
NATIONWIDE SERVICES GROUP 18
WATES INTERIORS & RETAIL 20
KELTBRAY 22
Annual Supplier Report 2014 15 CASE STUDIES
EDGE Interior Design Consultant and Architects
“As a company committed to excellence and sustainability in design, EDGE relishes working with clients like Hammerson that have ambitious vision and are committed to responsible values. This is a project that has allowed us to demonstrate our abilities, which we have thoroughly enjoyed being involved with, and the success of our mutual approach is evidenced in the quality of the completed project and in what we have been able to assist Hammerson to achieve.” Amanda McKinlay Project Leader and Director, Edge
Hammerson have worked closely with Edge during Our Positive Places strategy needed to be evident 2014 on the interior architecture and fit out of our in our new space in a very practical way that two new offices, with excellent results already focuses on sustainable outcomes rather than ‘big demonstrated at Aquis House in Reading. ticket’ purchases. Edge responded very well to the brief and from the outset understood that Positive Places is an integral part of what we do and what we deliver to all our stakeholders, and would therefore be at the centre of both new offices.
The target for each space was to achieve a Ska Gold rating for the fit out. However, we also wanted to move to a more agile working environment and give the staff a vibrant, inspirational space that promotes collaboration across the teams and welcomes visitors and staff normally based at our assets. We were determined to reduce our reliance on paper too.
16 Hammerson CASE STUDIES
Making our sustainability ambitions clear from We have achieved Ska Gold at Aquis House in the outset meant environmental performance Reading and are on track to do the same in and integrity was a specific consideration in all Kings Place. But even more importantly, working materials selection. It also made it clear to Edge with Edge has enabled us to achieve this whilst that re-use of existing furniture from our Grosvenor delivering a dramatically different working Street office and as much of the existing fit out at environment that embodies Hammerson’s core Kings Place as possible would be natural elements values of respect, responsibility, collaboration of the plan. Re-covering chairs and resizing desks and ambition. to accommodate new seating arrangements has made substantial reductions in cost and waste.
Edge’s sustainability team worked hard to ensure all the materials sourced for our new space have a positive sustainability story. Signage has been created to communicate these stories making the achievability of good sustainability outcomes that don’t compromise on style or finish, clear to anyone using the space.
Annual Supplier Report 2014 17 CASE STUDIES
NATIONWIDE SERVICES GROUP LTD Maximising the Diversion of Shopfitting Waste from Landfill
“Nationwide Services Group Ltd is proud to work with Hammerson. During the 11 months, until November 2014, Nationwide Services has managed, via its sustainable supply chain, the removal of over 2,350 tonnes of shopfitting waste. The average diversion rate from landfill for this waste stream was over 97% and we remain committed to working with our supply chain, and the shopping centre management teams, to improve on this figure still further.” Paul Smith - Managing Director, Nationwide Services Group Ltd
Shopfitting Waste Management Programme Programme Stages: The Nationwide Services shopfitting team works in • Prior to any waste movements occurring, all waste partnership with shopping centre management. It contractors are visited and asked to complete a removes the administrative burden from centre staff comprehensive pre-qualification questionnaire. by acting as a single point of contact. Nationwide • Upon successfully meeting the required Services deal directly with the shopfitting standards, suppliers are then audited annually contractors and ensure that all waste contractors to ensure their continued compliance. utilised on site have all the necessary licences and • Upon notification of a new project, the experience, thus ensuring Legal Compliance on shopfitting contractor will be contacted within behalf of the centres. Nationwide Services produce 24 hours and, where possible, a site visit made. comprehensive and timely reports that ensure that The visit includes an assessment of waste the centres have fully auditable waste management streams and advice on the most appropriate reports detailing all waste movements that are containers to be used and how to effectively summarised by project and centre. segregate waste to maximise landfill diversion. • The carbon impact of the waste movements is minimised by selecting the closest appropriately qualified contractor using supplier mapping software. • During the project, regular site visits are made to inspect the waste streams and monthly waste reports are supplied to the centres including recycling rates for every live project. A cumulative report is also issued, with results for all projects completed within the centre. • Nationwide Services track the progress of all projects and container movements to ensure that all waste containers are collected promptly upon practical completion.
18 Hammerson CASE STUDIES
“Nationwide Services Group (NWS) supply fit out services to Hammerson across a number of our UK shopping centres. The frequency of fit out within the retail sector makes this an important area of focus for us in terms of waste management and particularly diversion from landfill. Consistently achieving 97-98% diversion from landfill of fit out waste takes Nationwide ahead of retailer managed fit out which averages 95%. We actively recommend Nationwide to our retail customers as a company that provides a quality service in what can be a demanding, fast paced phase of a letting. Their achievements are a clear demonstration that small and medium sized businesses can perform as well as the larger corporates on sustainability.” Louise Ellison - Head of Sustainability, Hammerson Plc
Case Study - Victoria’s Secret - Brent Cross Shopping Centre Shopfitting Contractor: MacDonald Joinery & Construction Ltd Date: 07/07/2014 to 25/10/2014 Waste Diversion % Achieved: 99% How was this achieved? Effective segregation, monitoring and reporting
A combination of the segregation of waste streams and differing sized containers maximised recovery rates and reduced the shopfitting contractor’s waste management costs.
Having identified the waste streams arising, Nationwide Services identified the nearest suitably qualified waste contractor. Located 2.3 miles from site, this endured a rapid and responsive service that also minimised the carbon impact of the projects waste activities.
During the course of the contract, regular site visits by Nationwide were made to review the waste arising, ensure effective segregattion and review the waste reports with the MacDonald Joinery site team.
The client, Victoria’s Secret, received weekly cost updates and invoices supported by waste transfer notes and weighbridge tickets to. Upon project completion, fully detailed waste and cost reports were supplied within 7 days.
The data from this contract was supplied as part of the standard reporting to the Brent Cross Centre Management.
“Nationwide Services Group Ltd provided a first class service from their initial advice about how to segregate waste streams through to speedy and comprehensive end of contract waste and cost reports. All exchanges were managed smoothly and quickly, and the level of customer service was excellent. All this was achieved at a very competitive price.” Steve Clarkson - Director, Macdonald Joinery & Construction Ltd.
Annual Supplier Report 2014 19 CASE STUDIES
WATES INTERIORS & RETAIL Supply Chain Sustainability Academy
“Wates is committed to protecting the environment and ensuring that our actions today do not adversely affect the future. Responsible Sourcing is one of our key priorities. We want to ensure that the supply chain who works for us understands the sustainability challenges our sector faces and that the materials we buy are procured in a responsible and ethical way.” Rachel Woolliscroft Wates Group Sustainability Director
DEVELOPING THE KNOWLEDGE AND SKILLS THE ACADEMY IS MADE UP OF 3 ELEMENTS: OF OUR SUPPLY CHAIN Supply Chain Sustainability School At Wates, we are proud of the commitment we The Supply Chain Sustainability School is a make to sustainability & corporate responsibility, construction industry initiative that provides a which we deliver through our framework ‘Reshaping virtual learning centre and a host of free training Tomorrow’. Assisting our supply chain & others to workshops covering ten sustainability topics. increase their knowledge on these issues is one of Wates are one of the partners of the school which our key priorities. is designed to support individuals to improve their personal skills, and develop bespoke action The Supply Chain Sustainability Academy is plans to help businesses grow their sustainability designed to help SME’s broaden their knowledge credentials. Wates runs a number of supplier of sustainability but at the same time collectively workshops across the UK including London, work together to address many of the environmental Leeds, Manchester, Birmingham, Cambridge and social challenges we face as a sector such as and Newbury to encourage their supply chain to carbon reduction, ethical sourcing of our materials, engage in the school. minimising waste or fair payment issues. Site Environmental Awareness Training Scheme (SEATS) The new Site Environmental Awareness Training Scheme (SEATS) was developed by Wates, Costain and Skanska with support from CITB and is endorsed by the UK Contractors Group and the Environment Agency.
20 Hammerson CASE STUDIES
The Highlights
Supply Chain Sustainability School • Over 3,500 companies in construction are registered with the school • Over 800 of these companies supply to Wates Group • In excess of 400 suppliers have attended Wates Supplier Workshops
Site Environmental Awareness Training Scheme (SEATS) • Over 600 supply chain supervisors attended SEATS training in 2014 • Mandatory requirement of all supply chain supervisors working on Wates sites • Part of our Right Supervisor interview assessment
This one-day course is aimed at all site supervisors and is intended to give attendees a practical understanding of the environmental impacts and consequences of construction activities, the relevant legislation and its regulation, ways to achieve compliance, and a selection of good and best practice techniques available on site. The course covers a broad range of topics from Environmental Management Systems, waste, pollution, energy, ecology and nuisance, to being a Good Neighbour, and protecting the nation’s heritage. SEATS is part of the Site Safety Plus suite of courses and in 2014, Wates made this a mandatory requirement for all supply chain “Every now and again something comes supervisors working on our sites. along that is a game-changer. We believe that the Supply Chain Sustainability School Supply Chain Awards is just that in the field of sustainable Annually we recognise those supply chain development. It has already made a companies who have demonstrated a commitment significant contribution to the sustainability to the Environment through innovative products at Jackson and many of our core supply or methods used on our sites. Membership of chain partners, The school is practical, the Supply Chain Sustainability School is a key professional and effective.” component of the assessment process. Stephen Livingstone Environmental Manager, Jackson Civils
Annual Supplier Report 2014 21 CASE STUDIES
KELTBRAY Combining Sustainability and Road Safety
Keltbray is a UK leader in specialist engineering, Carbon Reduction construction, demolition, decommissioning, Despite increasing its tipper fleet by 30% since remediation and environmental services. The last year, Keltbray’s move from Euro 4 to Euro 5 company’s goal is to make a positive contribution standard vehicles has reduced nitrogen oxides and be the best in its sectors. by 40% and improved the number of miles driven per gallon by 4% compared to industry standards Keltbray aims to engage positively with its neighbours (source: London’s Fleet Operators Recognition and minimise adverse impact, and protect and Scheme). enhance the environment. This strategy has led to a substantial investment in the company haulage On the back of this performance, Keltbray is one of fleet, which size continues to rise in line with the only 36 (out of nearly 3,800 registered) companies company’s growth. to achieve Gold Status for its continuous improvements and environmental savings. Better still, in the past year, each of Keltbray’s new tippers
has emitted 10% less CO2 compared to the old standard vehicles; saving more than 328 tonnes of
CO2 (32%) in the process.
For these efforts, Keltbray won the coveted Tipper Haulier of the Year Award in 2014 for its fleet of 36 tippers, after proving sustainable ‘growth, social awareness and a continuous willingness to drive change and innovation’, according to the judges.
For a video about Keltbray’s efforts in this area, see here: http://youtu.be/NEICiqNVaOs
22 Hammerson CASE STUDIES
Cycling Safety The award was also presented to Keltbray in recognition of its strong record of supporting road safety initiatives. In 2008, the company was one of the first to fit side proximity sensor technology systems to the haulage fleet, and today there are a number of features to improve safety.
To promote safer cycling, Keltbray was also one of the first companies to support Exchanging Places; an initiative run by Transport for London and the Metropolitan Police, which involves cyclists sitting in the cab of Keltbray’s tippers to better understand the driver’s view of the road. Since 2010, Keltbray has supported more than 70 of these events, educating nearly 1,000 cyclists.
Metropolitan Police’s Constable Rideout believes the Exchanging Places initiative has helped save lives: “These events give cyclists the tools to cycle more safely on London’s roads. Keltbray, along with other hauliers, have provided lorries to these events, and their contribution is invaluable. We couldn’t do these events without them.”
Cyclists agree, and are often not aware of how difficult it is for lorry drivers to see them: “I was surprised at the number of blind spots that still exist even with all the mirrors and digital screens in today’s lorries, and so you still need to be wary as a cyclist,” said cyclists Mark McBridge after a demonstration in one of Keltbray’s lorries.
Annual Supplier Report 2014 23 ALL SUPPLIERS RATED BRONZE AND ABOVE
PLATINUM YEAR GOLD YEAR
Keltbray Group Construction 2014 Arup Consultancy 2013 Balfour Beatty Construction 2013 Vinci Construction UK Ltd Construction 2014 Chandler KBS Consultancy 2013 Wates Interiors & Retail Construction 2014 Forster Lamond Ltd Consultancy 2014 Graham Construction Construction 2013 Laing O'Rourke Construction 2014 Construction Ltd Mace Construction 2013 Mitie Technical Facilities Engineering 2014 Management Ltd Morgan Sindall Plc Construction 2013 P.J Carey (Contractors) Ltd. Construction 2014 RTKL - UK Ltd Consultancy 2013 URS Infrastructure & Consultancy 2013 Environment UK Ltd Waterman Group Consultancy 2013 WSP UK Consultancy 2013
24 Hammerson ALL SUPPLIERS RATED BRONZE AND ABOVE
SILVER YEAR BRONZE YEAR
BDP Architects Architects 2013 Abbott Building Limited Construction 2014 DTZ Surveyors 2013 ACME Architects 2013 Applied Intelligent ADF Architects Architects 2014 Consultancy 2013 Building Ltd AKT II Ltd Consultancy 2014 Derry Building Services Construction 2014 Barr Limited Construction 2014 EIC Ltd Services 2014 BDO LLP Services 2013 Experian FootFall Consultancy 2013 Brymor Contractors Ltd Construction 2014 F B Ellmer Ltd Construction 2014 Carat Services 2014 GVA Second London Wall CBRE Surveyors 2013 Consultancy 2013 Project Management LTD Chapman Taylor Architects 2014 Henry Riley LLP Surveyors 2013 Dundas & Wilson CS LLP Legal 2013 Hoare Lea Consultancy 2013 Elliott Project Construction 2013 Integral UK Limited Construction 2014 Management Ltd ISG Retail Construction 2013 FaulknerBrowns Architects Architects 2014 Jones Lang LaSalle Consultancy 2013 Gardiner & Theobald LLP Surveyors 2013 Nationwide Services Hilson Moran Engineering 2013 Waste/Recycling 2014 Group Ltd Hurley Palmer Flatt Ltd Engineering 2013 North Midland Lexington Catering Services 2013 Construction 2014 Construction PLC Nathaniel Lichfield Consultancy 2014 OCS Group UK Limited Services 2014 & Partners Paragon Construction 2014 NDY Consulting Ltd Consultancy 2014 RGCM LTD Construction 2014 Powell Dobson Architects 2013 Salter Baxter Raphael Contracting Ltd Construction 2013 Consultancy 2013 Communications LTD Rawls Consultancy 2013 Scott Osborn Ltd Construction 2014 Stephen George Architects 2014 Securitas Services 2014 & Partners LLP Sir Robert McAlpine Construction 2014 Swiss Post Solutions Ltd Services 2013 Sweett (UK) Limited Surveyors 2013 The Shield Guarding Company Services 2014 Veolia UK Waste/Recycling 2014 t/a The Shield Group VSG Services 2014 Warrington Martin Ltd Surveyors 2013 Managing Workman LLP 2014 Agents
Annual Supplier Report 2014 25 WHY WE ASKED
Our commitment to responsible procurement
In 2009, Hammerson launched a responsible procurement policy to improve our engagement with you, our suppliers. This report is a key product of that policy. It helps us understand your organisation better, and helps you to understand our commitment to responsible procurement.
In 2012, we launched Positive Places, our own sustainability programme, which is central to our strategy of working with you to achieve the highest social and environmental standards. Our aim is to improve our joint sustainability credentials, and to this end, we will endeavour to communicate knowledge and share best practice through workshops, events and reports.
In 2013, we produced our first Sustainable Supply Chain Report, illustrating the good practices already happening across our supply chain. We will continue to publish annual reports as a contribution to the broader supply chain debate and as a means of further encouraging change.
In 2015, we plan to update the Supply Chain Survey. We will also be publishing new CR targets that challenge the business and require an extension of our work to date with all our stakeholders.
Information on all our sustainability activities, targets and policies including our Supplier Code of Conduct, can be seen on the Positive Places pages of our website at www.hammerson.com
26 Hammerson WHAT WE ASKED
Annual Supplier Report 2014 27 WHAT WE ASKED
HAMMERSON SUPPLY CHAIN SURVEY
Questionnaire
We ask for responses to over 30 questions, each of which are allocated a score of between 1 and 10 to give a total maximum score of 100.
The questions cover the following areas:
Part 1: Code of Conduct
1. Agreement to accept the Hammerson Supplier Code of Conduct
Number of Responses: 62 Results: 100% agreed
2013 2014 Total
Number of responses 112 62 174 Result 100% 100% 100%
28 Hammerson WHAT WE ASKED
Part 2: Corporate Responsibility Strategy
2. Does your company have a CR Policy?
Number of Responses: 62 Results: 87% said ‘yes’
2013 2014 Total
Number of responses 91 62 153 Result 87% 87% 87%
3. Does your company review and monitor the effectiveness of your CR Policy?
Number of Responses: 62 Results: 86% said ‘yes’
2013 2014
Internal Audit 75% 70% External Audit 10% 19% Third Party Verification 8% 8% Other 7% 4%
Annual Supplier Report 2014 29 WHAT WE ASKED
4. Are your CR objectives and targets publicly available?
Number of Responses: 62 Results: 55% said ‘yes’
2013 2014 Total
Number of responses 91 62 153 Result 45% 55% 49%
There is a greater commitment to make CR objectives and targets publicly available, reported amongst the 2014 respondents, with an increase of 10% since issuing our previous report in 2013. This suggests a focus on transparency amongst our suppliers which will in turn help raise standards across the board.
5. Does your company have an annual CR Report?
Number of Responses: 62 Results: 27% said ‘yes’
2013 2014 Total
Number of responses 91 62 153 Result 30% 27% 29%
We would like to see more of our suppliers reporting annually even if it is a very focused form of reporting that shows their progress on key material issues.
30 Hammerson WHAT WE ASKED
Part 3: Environment, Health and Safety
6. What methodologies does your company undertake to reduce its sustainability and social risks?
Number of Responses: 62
2013 2014
Internal Risk Analysis Team 70% 65% Risk Mapping 27% 37% Third Party Analysis 32% 34% Certifications 53% 65% Other 22% 24% N/A 10% 8%
The number of our suppliers monitoring their sustainability risks internally has fallen while external audit has seen an increase since our 2013 report. In many cases, our suppliers use a combination of methods to reduce sustainability and social risks.
7. Is your risk management framework certified to the IRM standard?
Number of Responses: 62 Results: 18% said ‘yes’
2013 2014 Total
Number of responses 82 62 144 Result 13% 18% 15%
A larger proportion of respondents this year are certifying to the IRM standard. The IRM standard demonstrates the manner in which businesses should approach risk management, detailing the approaches and treatments to minimise risks. We encourage more of our suppliers to aim to achieve IRM standard to demonstrate a thorough understanding of risk management.
Annual Supplier Report 2014 31 WHAT WE ASKED
8. Does your company have a Health and Safety management system?
Number of Responses: 62 Results: 68% said ‘yes’ 40% certified to 0HSAS 18001
2013 2014 Total
Number of responses 82 62 144 Result 99% 68% 86% Certified to OHSAS 18001 33% 40% 36%
Due to the nature of our business, a large number, although by no means all, of our suppliers are in the construction industry. We are aware of the heightened risk across our sites and as result we are pleased that such a large proportion of our suppliers have embedded these systems within their organisations to reduce the risk of workplace injuries. However we are surprised by the lower percentage this year and will be exploring the reasons for this. We also hope this will encourage more of our suppliers to be more stringent on health and safety measures.
9. Does your company have an Environmental Policy?
Number of Responses: 62 Results: 98% said ‘yes’
2013 2014 Total
Number of responses 81 62 143 Result 96% 98% 97%
Finding better environmental solutions remains a core part of our business; we would like our suppliers to adopt such methods throughout our supply chain and we are very pleased they continue to demonstrate vigilance in this area.
32 Hammerson WHAT WE ASKED
10. Which environmental initiatives does your company undertake?
Number of Responses: 61
2013 2014
Reduce waste generated and waste sent to landfill 96% 95%
Reduce energy consumption and associated C02 emissions 91% 92% Biodiversity action plans 24% 26% Improved water efficiency 68% 67% Responsible procurement of materials 85% 82% Develop or provide eco-friendly products 42% 46% Use of BES 6001 or equivalent 5% 12% Other 25% 21% N/A 1% 5%
For Hammerson, understanding the environmental impact of our supply chain and in particular the embodied carbon present within our development schemes is an important element of our sustainability strategy. Working with suppliers who understand their own impacts and are taking action to reduce waste and use resources as efficiently as possible has a major part to play in this process.
Annual Supplier Report 2014 33 WHAT WE ASKED
11. Does your company use and follow an Environmental Management System?
Number of Responses: 62 Results: 77% said ‘yes’ 75% certified to ISO 14001
2013 2014 Total
Number of responses 80 62 142 Result 69% 77% 73% Certified to ISO 14001 84% 75% 80%
More of our suppliers have put Environmental Management Systems in place. We are pleased that our suppliers are taking these issues seriously and have embedded them within their existing framework. It is interesting that a smaller proportion of respondents this year have certified their systems to ISO 140001 but this may be a reflection of a different type or size of business responding to the survey.
12. Does your company comply with current environmental legislation?
Number of Responses: 62 Results: 100% said ‘yes’
2013 2014 Total
Number of responses 80 62 142 Result 96% 100% 98%
34 Hammerson WHAT WE ASKED
13. Does your company have a Quality Management System certified by ISO 9001?
Number of Responses: 62 Results: 68% said ‘yes’
2013 2014 Total
Number of responses 76 62 138 Result 71% 68% 70%
Again, a small drop in the proportion of respondents having their QMS systems certified in this round of the survey may suggest differences in the characteristics of the responding organisations.
Part 4: People
14. Is your sustainability performance communicated to your employees?
Number of Responses: 62 Results: 84% said ‘yes’
2013 2014 Total
Number of responses 73 62 135 Result 86% 84% 85%
15. Does your company have an Equal Opportunity or Diversity Policy?
Number of Responses: 62 Results: 98% said ‘yes’
2013 2014 Total
Number of responses 73 62 135 Result 99% 98% 99%
Annual Supplier Report 2014 35 WHAT WE ASKED
16. Does your company have a policy to discourage child and forced labour?
Number of Responses: 62 Results: 55% said ‘yes’
2013 2014 Total
Number of responses 72 62 134 Result 46% 55% 50%
A larger proportion of this cohort of respondents has a policy in place on child labour policies within the workplace and across their supply chain. This is a critical issue and we are pleased that our suppliers are recognising it. However we are aware that the issue does not have direct relevance for many of our suppliers so there would not necessarily be a need for a specific policy. Hammerson has a no tolerance policy on child labour and we continue to uphold these standards across our supply chain.
17. Does your company actively discourage bribery and corruption?
Number of Responses: 62 Results: 98% said ‘yes’
2013 2014 Total
Number of responses 73 62 135 Result 97% 98% 98%
Bribery and corruption policies and fair grievance procedures are standard requirements for any company working with Hammerson. All our suppliers have to confirm their acceptance of our Code of Conduct which includes specific acknowledgement of bribery and corruption policies.
36 Hammerson WHAT WE ASKED
18. Does your company have a fair grievance procedure that ensures employee issues are dealt with promptly?
Number of Responses: 62 Results: 100% said ‘yes’
2013 2014 Total
Number of responses 72 62 134 Result 100% 100% 100%
19. Does your company have a training, learning and personal development policy?
Number of Responses: 62 Results: 82% said ‘yes’
2013 2014 Total
Number of responses 72 62 134 Result 86% 82% 84%
20. Does your company ensure that funding is available for external training and qualifications to encourage personal development?
Number of Responses: 62 Results: 95% said ‘yes’
2013 2014 Total
Number of responses 72 62 134 Result 97% 95% 96%
Annual Supplier Report 2014 37 WHAT WE ASKED
21. Does your company promote staff awareness and provide training on corporate responsibility?
Number of Responses: 62 Results: 84% said ‘yes’
2013 2014 Total
Number of responses 72 62 134 Result 83% 84% 84%
The high proportion of companies reporting a positive policy on training and development reflects the value our supply chain place in their employees and their continuing development. We are particularly pleased to see the response rate in relation to CR training remaining high. As the issues we are striving to address through our sustainability strategy are becoming more challenging we need our suppliers to ensure their staff are actively supported in maintaining their skills in this area.
22. Does your company have a volunteering policy?
Number of Responses: 62 Results: 31% said ‘yes’
2013 2014 Total
Number of responses 72 62 134 Result 38% 31% 35%
We are a little surprised by the small proportion of respondents with a volunteering policy for staff. Companies are increasingly seeing the benefits of supporting staff in active engagement with local communities and groups. Whether it be team building, new skills or simply time spent doing something different, the positive effects are widely recognised. Hammerson has a volunteering policy which entitles staff to 15 hours of volunteering, equivalent to two paid working days that can be used throughout the year for volunteering based activities. The Hammerson Community Day, which is in addition to this, is an annual event that is greatly valued by staff across the business. We will look this year at working more with our suppliers to demonstrate the benefits of a formal volunteering policy.
38 Hammerson WHAT WE ASKED
Part 5: External Engagements
23. Is your company a member of any sustainability related organisations?
Number of Responses: 61 Results: 51% said ‘yes’
2013 2014 Total
Number of responses 70 61 131 Result 57% 51% 54%
Participation in sustainability related organisations can be extremely valuable in terms of sharing knowledge, shaping policy and moving the sustainability agenda forward. Whilst companies may see this as putting pressure on valuable staff resources, if done wisely there are clear benefits to be had. Hammerson participates in a number of sustainability organisations across the industry that are particularly relevant to our business activities. We will continue to encourage our suppliers to participate too.
24. Does your company have a Community Investment Policy or Strategy?
Number of Responses: 61 Results: 53% said ‘yes’
2013 2014 Total
Number of responses 70 61 131 Result 69% 53% 62%
Annual Supplier Report 2014 39 WHAT WE ASKED
25. Does your company encourage local community work and commit to making a positive impact on the local community?
Number of Responses: 61 Results: 71% said ‘yes’
2013 2014 Total
Number of responses 70 61 131 Result 76% 71% 74%
The proportion of respondents with company policies on community investment has fallen this year. However, we are not alarmed by this as we aware that many of our suppliers make efforts to actively engage in community programmes. We do encourage our suppliers to implement policies as we believe this helps develop good practice amongst employees. Effective community investment is an essential part of Hammerson’s strategy to remain connected with our local areas. It is important for us that our suppliers recognise the role this plays within our business.
26. Do you engage with stakeholders to ensure that their ethical, social and environmental concerns and requests are addressed?
Number of Responses: 62 Results: 82% said ‘yes’
2013 2014 Total
Number of responses 70 62 132 Result 73% 82% 77%
The high proportion of respondents confirming their engagement with stakeholders on these issues is an interesting reflection of the rising awareness of the importance and power of different stakeholder groups. We see positive engagement with our stakeholders as a critical part of our business and particularly of our sustainability programme so it is encouraging to know this is reflected within the approach of our suppliers.
40 Hammerson WHAT WE ASKED
27. How do you assess the risks within your own supply chain to ensure strong ethical, social and environmental performance?
Number of Responses: 59
2013 2014
Supply Chain Risk Mapping 29% 22% Supplier Code of Conduct 46% 46% Assessment Questionnaire 61% 63% Internal Audits 59% 76% External Audits 30% 24% Other 20% 20% N/A 10% 5%
The supply chain within the development process is long. It is therefore very important that our suppliers are as robust in their analysis of supply chain risk as we are. A clear procedure for identifying, monitoring and mitigating supply chain risk is key to its effective management and we are pleased that this is evident within so many of our suppliers. The variety of approaches taken reflects the range of different types of business Hammerson works with.
Annual Supplier Report 2014 41 WHAT WE ASKED
28. Does your company have a Responsible Procurement Policy?
Number of Responses: 61 Results: 59% said ‘yes’
2013 2014 Total
Number of responses 70 61 131 Result 67% 59% 63%
The procurement process is one of the most critical and powerful points at which to ensure products and services meet the environmental and social standards required for us to achieve our sustainability targets and ambitions. It is extremely important therefore that our suppliers have procurement policies in place that support them in achieving the standards we set. A supplier without experience of responsible procurement may find it difficult to do this.
29. Does your company have its own Supplier Code of Conduct?
Number of Responses: 61 Results: 39% said ‘yes’
2013 2014 Total
Number of responses 70 61 131 Result 66% 39% 53%
There is a surprisingly large fall in the proportion of suppliers with their own supplier code of conduct in the results this year. We believe it is important that more of our suppliers have their own supplier code of conduct in place in order for their suppliers to be aware of the guidelines and policies to follow and to maintain good relationships with other suppliers. Our supplier code is available online as a guideline and we will work with our suppliers this year to support them in ensuring they have appropriate standards in place.
42 Hammerson Sustainability Department 10 Grosvenor Street London W1K 4BJ Tel: 020 7887 1886
www.hammerson.com www.handstandcreative.com