Strategic report continued
Our stakeholders
We believe that strong engagement, collaboration and dialogue are critical to the effectiveness of our long-term relationships with key stakeholders. Customers
We are committed to our customers This includes our customers, investors, Trafficking Statement, which is updated and passionate about improving their government and political stakeholders, our annually, sets out our policies and the steps people, our suppliers and partners, and the we take to address risks in our business experience and satisfaction. We keep communities we serve. and our supply chains and can be found our customers at the heart of everything at www.firstgroupplc.com. Engaging ethically we do, and our teams strive to always In line with our values and the expectations We have a zero-tolerance approach to bribery, exceed their expectations. of our customers and partners, we are and never offer or accept any form of payment committed to conducting our relationships or incentive intended to improperly influence How we engage with customers with our stakeholders with high ethical and a business decision. Equally, we support free moral standards in all our interactions. Our and open competition, gaining our competitive ■■ Regular customer and passenger values and ethical commitment shape not advantage by providing the highest level satisfaction surveys to identify what only what we do, but also how we do it. of service, not through unethical or illegal we do well and where we can improve business practices. We have internal control ■■ We invest time and effort to put in place the Robust customer feedback processes systems and procedures in place to counter right processes, policies and governance through online and traditional channels bribery and corruption, and to ensure that structures to ensure we meet these high ■■ Customer panels and events we comply with competition and trade laws. standards of integrity and professionalism. ■■ Ongoing dialogue with customer Similarly, we respect and protect the privacy of Our Code of Ethics applies to everybody representative groups our customers, employees and stakeholders, working for, or on behalf of, FirstGroup. The and are committed to conducting our business Board engagement on code sets out the standards that our customers in accordance with all applicable data protection customers this year and stakeholders expect of us, and which legislation, including the General Data Protection we expect of each other. It is supported by ■■ Monitoring the embedding of the Regulation, UK Data Protection Act and the detailed policies and procedures which apply Group’s customer-centric vision California Consumer Privacy Act. across the Group and are implemented and ■■ Monthly customer updates by the managed by the senior management team in We have an externally managed whistleblowing Chief Executive each of our divisions, including our Code of service for colleagues available across the Conduct on Anti-Slavery and Human Trafficking Group with a helpline (online and phone-based) ■■ Specific customer updates from the Prevention and our Anti-Bribery Policy. for the anonymous reporting of suspected Group Corporate Services Director and wrongdoing or dangers at work. All reported Chief Information Officer as required We are committed to recognising human rights issues or concerns to the hotline are taken ■■ Updates from divisional leadership on a global basis. We are committed to the seriously and investigated as appropriate, teams as required prevention of modern slavery and human ensuring that confidentiality is respected trafficking in all its forms, which extends to all at all times. business dealings and transactions in which Our five divisions have a varied mixture of we are involved, regardless of location or sector. For further information on our governance customer types and revenue models. While We have a zero-tolerance approach to any arrangements, see pages 75 to 134. some deliver directly to passengers, others violations within our Company or by business serve clients or partners such as states, local partners. Our Modern Slavery and Human government, school boards or transportation authorities and private organisations, like airports and universities. Across all our divisions, Sustainable Development Goals however, the focus of our businesses is on delivering our Vision; providing easy and The global Sustainable Development Goals (SDGs) were adopted by UN member convenient mobility, improving quality of life states in September 2015, covering 17 key areas aimed at creating a world that is by connecting people and communities (see comprehensively sustainable, socially fair, environmentally secure, economically page 16 for more on our Vision and Values). prosperous, inclusive and predictable by 2030. Although we can have a positive impact in some way on all the SDGs, we have identified the key areas where our contribution Our customers’ requirements are complex to the delivery of the goals can be greatest. The icons for each of these goals are shown and constantly evolving, so listening, identifying against each of our key stakeholder groups. future needs and being able to respond quickly is critical. In some cases, like our rail franchises, collecting and responding to customer feedback forms is stipulated in our contracts. Our teams use a variety of channels and approaches to engage with customers, assessing satisfaction and gathering feedback.
44 FirstGroup Annual Report and Accounts 2020 Strategic report
The Board receives regular updates on Our businesses that provide long-distance matters relating to customers, including the journeys for customers are ensuring that results of customer surveys, and information time spent travelling can be productive and trends relating to customer satisfaction and entertaining. Our TOCs offer free Wi-Fi and feedback. and we are trialling 5G technology on board our trains. In Greyhound, we have deployed Supporting customers during the a world class on-board entertainment coronavirus pandemic programme across our fleet, including revenue Our primary concern since the start of the generating Wi-Fi offerings and content and coronavirus pandemic has been to protect our channel programming which has led to double customers and colleagues as we continue to digit improvements in customer satisfaction, run vital services. as measured through our Net Promoter Score. We have continued to follow the latest This is a chance to use our skills to Technology and innovation is also helping guidelines from local and national governments, support our local partners during to bring our low- and zero-carbon transport the World Health Organization and relevant lockdown and help other essential services to market for our customers across advisory bodies, such as Public Health services continue to run as normally the Group. We’re taking action to combat England. We have implemented enhanced as possible. climate change and improve local air quality cleaning of vehicles and have introduced by delivering low- and zero-emission mobility social distancing measures to help our solutions, and encouraging customers to customers adhere to government guidelines. First Bus driver, Robert Dande, supporting York City Council make the modal shift from private vehicles Our customers have responded positively to to more efficient public transport modes. the action taken by our companies to deploy We are using technology and innovation to help More information on our ambition for our people, vehicles and logistics to good to reduce complexity and deliver the best zero-carbon, improving air quality and effect, going above and beyond typical experience for our customers – from e-tickets making the shift to our bus and rail services transport operations by providing direct in Greyhound and First Rail, to convenient online can be found on page 39 and 40. support for families and communities. tools for student conduct in First Student, and the latest SAV technology in First Transit. More information on enhancing customer At East Bay Paratransit in San Francisco for experience can be found in the Business example, our First Transit drivers delivered For example, this year we completed the review on pages 18 to 27. food to 2,400 housebound seniors through transition to paperless boarding in Greyhound; Accessible journeys SOS Meals on Wheels, a local non-profit now every driver can board customers quickly We are committed to supporting customers organisation, whilst the First Student team and efficiently with their driver device. with disabilities or restricted mobility and helped to deliver curriculum packets to We have also made it much easier for First recognise that access to public transport approximately 7,000 elementary students Bus customers to pay through mobile and services is often fundamental to their across Buffalo, New York. Greyhound has contactless ticketing, with more than half independence. Working with both national and worked with partners in moving vital cargo, the division’s revenue now coming through local disability groups, we continue to invest in including food and medical supplies, across digital channels. We were the first major bus making our services more accessible and to its network. operator to offer contactless payment for all improving the service we offer those with In the UK, we supported our partners at York customers on every bus. disabilities, for example, through more effective City Council who were facing a shortage of Our First Bus passenger app reached 1m employee training or more accessible vehicles. drivers for refuse vehicles the city, with First monthly active users during the year, and in May First Bus was a launch partner with the DfT on York bus drivers working on a loan basis from 2020 we became the first major bus operator to the UK Government’s ‘It’s Everyone’s Journey’ First Bus rather than being furloughed. These, offer our customers live tracking of not only the campaign which is designed to get passengers and the many other examples besides, make location of their next bus, but also its available to be more considerate of their fellow travellers, us immensely proud of our colleagues across capacity, via our mobile app. This innovative in particular those with disabilities, with the bus the Group for their commitment to our functionality supports our customers in social minister attending a launch event at First West customers and communities during such distancing and allows them to make informed of England in Bristol in February 2020. unprecedented times. decisions about their essential journeys. Two of our TOCs, Hull Trains and TPE, have More information on our response to the In First Rail, we continue to deliver on our adopted the ‘Sunflower Lanyard’, which coronavirus pandemic can be found in the commitment to modernise ticketing and provides a simple means for customers to Chief Executive’s statement on pages 9 and 10, increase convenience for our customers. In indicate that they have a non-visible disability, and our Safety section on pages 42 and 43. SWR this year we launched Tap2Go, a new and may need assistance or additional Enhancing customer experience account-based ticketing system on services consideration when travelling. Our newest In all of our divisions, we are striving to outside London. Once registered with franchise, Avanti West Coast has a improve customer experience, delivering more Tap2Go, customers no longer need to buy a programme of accessibility and wayfinding convenient services, smarter, easier and more ticket before their journey. Instead our system audits at stations and, along with other TOCs, flexible ticketing, better real-time information, works out the best daily fare when a customer has plans to install Changing Places toilets at improved on-board amenities, and lower touches in and out with their Tap2Go enabled some stations for customers with more complex emission vehicles. smartcard. More than half of SWR journeys needs who require adult changing facilities. are made with smart tickets now.
FirstGroup Annual Report and Accounts 2020 45 Strategic report continued
Our stakeholders continued
Investing in customer service excellence This year we continued to deliver high-quality customer service training. In TPE and SWR, our customer experience training programmes received national accreditation from the Institute Investors of Customer Service, holding Creating Great Customer Experiences events for nearly FirstGroup is committed to ensuring 2,000 colleagues and employees from partner that it promotes the success of the organisations like Network Rail over the Company for the long-term benefit past year. Responding to customer feedback of our members as a whole. Colleagues from First Student and First Transit We are working across our businesses to benefited from online customer service training make our customer feedback processes more modules through our First America University convenient and easier to use for our customers. How we engage with investors portal, and in First Bus our Journey Makers For example, TPE was the first rail company in ■■ Presentations from Executive Directors training has continued to be rolled out across the UK to offer support via WhatsApp to ■■ Annual report, website and statements the business. More information about customer customers; SWR now uses this channel to service training across our divisions can be proactively to support its ‘Assisted boarding’ ■■ Ongoing dialogue and individual found on page 50. scheme for customers with mobility issues. engagement with shareholders Delivering customer satisfaction In First Rail, we are taking steps to ensure that ■■ Engagement via Investor Relations We use the results of regular surveys, and claiming compensation is as easy as possible function with potential investors and dialogue with our customers and our people, for customers, which includes the introduction other market participants to help shape our services. or enhancement of ‘delay repay’ systems. Board engagement on We hold regular customer panels and events investors this year We ask our customers for their views on the throughout our networks so that passengers topics that matter to them, including service can hear the latest developments in their area ■■ Monthly updates by the Chief Executive performance, safety and value for money. and ask questions of our management teams. ■■ Regular reports to the Board on investor Our customer and passenger satisfaction Avanti West Coast has begun to establish relations activities and periodic updates surveys allow us to measure this, identifying the five independently chaired panels it has by the Group Corporate Services what we do well and where we can improve. committed to run as part of its contract, to Director and corporate brokers We also link remuneration to customer help engage with customers along its routes. satisfaction scores for our senior divisional ■■ Regular meetings and calls held with and Group leadership teams. In First Bus, around 31,000 customers large investors by the Chairman and the completed an online Tell First Bus survey this Senior Independent Director First Student and First Transit conduct annual year, which is promoted via websites, social customer satisfaction surveys, offering our ■■ Engagement on remuneration matters media and posters on our vehicles. Our contact via the Remuneration Committee Chair contract customers the opportunity to give centre also handles enquiries from customers their opinion about all aspects of our service, about any aspect of their journey, with more ■■ Meetings and calls with investor and First Transit undertakes mystery shopper than 410,000 customer interactions last year representatives – ISS, Glass Lewis, IA exercises for a number of shuttle clients. across a range of channels, including phone, ■■ General Meeting requisitioned by major In Greyhound, more than 108,000 passengers web, email and Twitter. shareholder Coast Capital – June 2019 completed a post-trip survey on their travel In First Student this year we launched our ■■ AGM – July 2019 experience this year, helping us to understand First Feedback platform, allowing customers, their journey better, and use this to improve students and their families to tell us about their our services. Engaging with shareholders and being fully experience of using our services through an aware of their range of views is one of the key In First Bus and First Rail, we use the insights easy and convenient online platform. aspects of corporate governance. The Group gathered through surveys conducted by the Improving on-time performance welcomes open, meaningful discussion with independent passenger watchdog, Transport and punctuality shareholders on all matters, but particularly Focus. They consult a representative sample We know that our customers want punctual, with regard to strategy, governance of passengers to produce the annual Bus reliable transport services that get them and remuneration. Passenger Survey and twice-yearly National where they want to be, when they want to be Rail Passenger Survey (NRPS). Taken with The Board receives regular reports on there. Good service performance has a major mystery shopping feedback and social media investor relations activities from the Company influence on customer satisfaction, so we sentiment, this creates overarching measures and, in particular, on shareholder sentiment constantly strive to improve our on-time of customer sentiment that informs the and feedback from our corporate brokers. performance, punctuality and reliability. way we shape and develop our services. Senior management and Board members More information on our punctuality KPIs can have engaged throughout the year on a range More information on our customer satisfaction be found on page 55. of matters with institutional shareholders, KPIs can be found on pages 56 and 57. private or employee shareholders.
46 FirstGroup Annual Report and Accounts 2020 Strategic report
The Executive Directors are available, through The Remuneration Committee recognises the Investor Relations team, to discuss the that appropriate arrangements with respect Group’s progress, strategy and plans with to executive pay are of high interest to major shareholders at any time during the year shareholders. The Committee takes significant and since his appointment in August 2019 account of guidelines issued by the Investment Chairman David Martin has regularly engaged Association, ISS and other shareholder bodies Government with large shareholders to fully understand when setting the remuneration framework and their views on governance, corporate strategy seeks to maintain an active and constructive Strong engagement with government and other matters. dialogue with investors in this area. at all levels is essential to our The Senior Independent Director is available The Board believes that ongoing engagement businesses in both the UK and to discuss matters of concern that would not with shareholders and other stakeholders is North America. be appropriate through normal channels of vital to ensuring their views and perspectives communication, including issues relating to are fully understood and taken into consideration, the Chairman’s performance. Non-Executive and sustaining a high level of dialogue with How we engage with government Directors make themselves available to investors remains a key focus of the Board ■■ Engagement with industry forums attend meetings with shareholders in order to going forward. ■■ Direct engagement with policymakers develop an understanding of their views, and Further information on our governance (in a normal year) any shareholders may meet ■■ Strong links with devolved arrangements including remuneration, informally with Directors at the AGM. national, regional, state and can be found in the Governance section provincial governments There is regular dialogue with key institutional which starts on page 76. shareholders, fund managers and sell-side ■■ Regular surveys of political stakeholders analysts to discuss strategy, financial and Performing sustainably Board engagement on operating performance throughout the Group. We participate in evaluations, ratings governmental issues this year In the last year, Board members met with and rankings of our environmental, ■■ Meetings, calls and correspondence shareholders representing approximately half social and governance (ESG) performance. with the regulator (FRC) by the Audit of the issued share capital prior to the notice These provide insights to investors on our Committee Chair requisitioning a General Meeting by Coast non-financial performance and demonstrate ■■ Monthly updates by the Chief Executive Capital (described further on page 91), and how we manage ESG risks and opportunities ■■ engaged with shareholders representing more in a way that positions us strongly for Updates by the Group Corporate than three quarters of the issued share capital the future. Services Director and Group Head of immediately prior to that General Meeting and Policy and Public Affairs as required We have been recognised for our ESG thereafter to explore their views. ■■ Updates from divisional leadership leadership, having been named in the teams as required on specific initiatives An active dialogue with investor groups such FTSE4Good Index Series for the 18th as the Investment Association, and Investor consecutive year. Forum, as well as proxy advisory firms, has At Group level, we have long-established also been maintained this year. Our above-average results (compared strong relationships with government officials to our industry peers) in the CDP global as well as positive interactions with ministers General presentations to shareholders disclosure rating also demonstrate our and both government and opposition policy and the wider financial community are made commitment to climate change mitigation, teams and advisers, as well as significant by the Executive Directors following trading adaptation and transparency. political influencers, including Parliamentary updates and half and full year results and and Congressional committee members. these are attended from time to time by We use our market leading positions to inform the Chairman. The Company responds our contributions to policy development and as necessary to requests from individual engage meaningfully with decision-makers shareholders on a wide range of issues. and promote the most effective form of
All investors are kept informed of key business private sector transport provision in our activities, decisions, appointments and other respective markets. key announcements on an ongoing basis via We also engage with policymakers and seek the regulatory news service and press releases. to influence the development of policy both The tempo of updates was increased to directly, and through our trade organisations, keep investors informed as the impact of including RDG, CPT, NSTA and APTA, which the coronavirus pandemic on the Group’s advocate with national or federal government operations evolved. The Group’s website and regulators on behalf of our sector. (www.firstgroupplc.com) contains all of this This has been particularly true in response to information, together with financial reports, the coronavirus pandemic, where we have presentations and other information on the shown leadership in these forums and helped Group’s operations. shape and deliver policy and funding responses from governments. This has allowed us to continue providing services to key workers
FirstGroup Annual Report and Accounts 2020 47 Strategic report continued
Our stakeholders continued and maintain essential transport networks In First Rail, our TOCs engage regularly with across all our sectors, as well as planning for the DfT, which, as the procuring authority a smooth and sustainable recovery of services letting franchise contracts, actively monitors as lockdown eases and demand for transport our performance and progress towards increases in our markets. franchise targets. Our franchised TOCs also deploy Regional Development Managers Our people Of equal importance is our relationship on the who liaise with local and regional government, ground with state administrations and local local businesses, user groups and others. More than 100,000 FirstGroup government. Our North American businesses foster strong links with partners in all levels of Our newer franchises, like Avanti, have employees work in depots, stations and government. First Student has a focus on local committed franchise obligations to ensure offices across North America, the UK school districts, with whom it contracts to regular engagement with stakeholders, and beyond, to deliver great service to deliver student transportation services, as well including through the establishment of our millions of passengers. as school transport associations at state level. forums and groups along the route. First Transit engages in the main with cities, Tram Operations Limited (which operates counties and municipalities. Greyhound How we engage with our people in South London) contracts directly with the engages at state and provincial level in relation Mayor of London’s transport agency and has ■■ Regular ‘Your Voice’ employee to its locations and terminals, whilst maintaining a close working relationship. As a consequence, engagement surveys strong links with federal government with there is regular contact with London Assembly respect to national legislation and regulation, ■■ Dialogue with employee representatives, members and the Deputy Mayor for Transport particularly around road safety issues. including Employee Directors and – in 2019/20 this included giving evidence trade unions For all our North American businesses, the to an inquiry by the London Assembly’s ■■ importance of securing federal coronavirus Transport Committee. Inductions, onboarding sessions and funding, distributed by state and provincial employee handbooks We comply with the Lobbying (Scotland) administrations, has meant a greater than ■■ Multiple internal communications Act 2016 regulations and key personnel are normal focus on engagement at those levels. channels, including our intranet, registered with the UK Lobbying Register. briefings, newsletters and our employee We have engaged positively and proactively FirstGroup’s gifts and hospitality policy mobile apps with the devolutionary framework which has is strictly adhered to when engaging with developed in the UK to create strong stakeholders at all levels. ■■ Individual performance reviews and relationships with regional leaders. Elected development discussions In line with Company policy, we do not make mayors for city regions or combined political donations in the UK, and the US Board engagement on authorities, together with MPs in the areas in businesses only participate directly in the people issues this year which we operate, are a key stakeholder group. political process on limited occasions. In the We also work closely with regional bodies like ■■ The Group Employee Director attends US, all political donations are approved by our Transport for the North, which provides an all Board and Committee meetings US General Counsel to ensure that they important focal point for leaders across the ■■ comply with all relevant laws and are properly The Chief Executive attends every North, as well as national governments in disclosed. Employee Directors’ Forum, and the Scotland and Wales, principally through Chairman (and his predecessor) Transport Scotland and Transport for Wales. Greyhound has a political action committee, attended the Forum in 2019 Our businesses conduct regular surveys of our which pools campaign contributions from ■■ political stakeholders to better understand and members or employees and donates those The Group Employee Director respond to their interests and needs. funds to campaign on ballot initiatives or visits our UK sites to understand legislation, but it is not heavily used. employees’ views and local First Bus also works closely with a number of perspectives. He is assisted by local authorities to pursue formal and informal Please see page 91 for how we responded to the network of Employee Directors partnerships which help us deliver better shareholder feedback on political donations ■■ Site visits by members of the Board, services through measures which cut and page 132 for our approach to political in particular as part of their induction road congestion and give priority to buses. donations in general and how we intend to programme, provide direct interaction For those councils identified by national cover it at this year’s AGM. with employees governments as needing to take urgent action on air quality, we are a key partner in helping ■■ Specific updates from the develop Clean Air Zones. In both cases, Chief Executive, Group Corporate our expertise and experience helps local Services Director and Group HR authorities identify and successfully bid Director on people issues, for example into national funding streams. on talent and succession planning This commitment to, and experience of, effective local and regional partnerships, Supporting our employees during the underpins our advocacy for policy solutions coronavirus pandemic which ensure that the experience and Since the start of the coronavirus pandemic, expertise of private operators remain central to our primary concern has been to protect our the delivery of customer-focused bus services. customers and colleagues as we continue
48 FirstGroup Annual Report and Accounts 2020 Strategic report
to run vital services. Comprehensive safety employee feedback on a wide variety of topics, At Board level, 30% of our Non-Executive measures designed to limit the spread of from share ownership and innovation to new Directors are women. Our full gender diversity coronavirus were implemented as soon as the commercial opportunities and efficiencies. snapshot, as at 31 March 2020, is shown in pandemic began, and are detailed in the safety the table below. For more information on our Employee Directors are elected by an section on pages 42 and 43. approach to Board diversity, and for details of independently supervised ballot of employees our submission to the 2019 Hampton- We recognise that this has been an extremely in their respective companies, whilst the Group Alexander Review, please see page 97. difficult and uncertain time. Accordingly, we Employee Director is elected by the Employee have taken a number of additional steps to Directors’ Forum. Gender diversity support our employees with all aspects of their As at 31 March 2020 The Employee Directors’ Forum meets in welfare, including: person twice a year and monthly by other Female Male ■■ Vulnerable employees: we took steps to means. They also collaborate and share protect those who were most at risk, and we experience on a regional basis. FirstGroup Total employees1 reminded all employees about the provisions provides a formal induction for all newly 2020 40.5% 59.5% in place in each of our divisions to support elected Employee Directors, and two training 112,394 45,557 66,837 mental health and wellbeing. sessions each year for the Employee Directors’ Forum as a team. 2019 40.0% 60.0% ■■ Homeworking: technology and associated 108,722 43,438 65,284 systems support were provided to enable These sessions are designed to develop their employees to work effectively at home leadership, communication and influencing 2018 38.9% 61.1% wherever the nature of their role made skills. In addition, each Employee Director 107,116 41,648 65,414 this possible. undergoes a formal performance and 2 ■■ Communications: we used multiple channels development review with their Managing Senior managers to keep in touch with our employees to convey Director. This ensures they are supported 2020 26.3% 73.7% important information, maintain engagement to develop the skills and knowledge they 384 101 283 and prevent social isolation. The Chief need to be effective in their role. Executive, and divisional leaders, recorded 2019 23.2% 76.8% We were delighted to welcome three female 370 86 284 regular video updates which supported Employee Directors this year. Sally Bennett business-specific communications issued via was elected as the Employee Director at 2018 22.3% 77.7% the intranet, email, newsletters, management GWR, Natalie Rees was elected as the 350 78 272 briefings and our employee apps. Our mobile Employee Director at First Cymru in First Bus, apps have seen particularly large increases and Elizabeth Power was elected as the Board directors in the numbers of users during this time. Employee Director at Avanti. 2020 30.0% 70.0% Employee engagement 10 3 7 and representation Our regular ‘Your Voice’ engagement surveys 2019 20.0% 80.0% give employees the opportunity to express 10 2 8 their satisfaction with the way they are managed, 2018 20.0% 80.0% the pride they feel in working for the business 10 2 8 and how likely they are to recommend FirstGroup to others as a great place to work. 1 In 2020, the gender of 54 of our employees was During 2019, surveys were carried out in unknown (2019: 0; 2018: 47). First Bus and First Rail. Engagement scores 2 Using the Companies Act definition of ‘any employee who has responsibility for planning, in every participating business were up on the Left to right: Sally Bennett and Natalie Rees previous year’s score and ranged from 59% directing or controlling the activities of the Company or a strategically significant part of the Company’. to 83%. Further information on our corporate governance framework, including our Group Employee Improving diversity Throughout the Group, regular dialogue is Directors, can be found on page 82. During the year we have continued to make maintained with employee representatives, Diversity and inclusion progress on our four commitments to improve including more than 30 trade unions and gender diversity, which are to: our employee-elected Employee Directors. To understand the needs of our customers, our workforce must reflect the diversity of the ■■ Increase the number of female applicants Employee Directors communities we serve. To support this, we are for all roles We are committed to promoting employee committed to making our workplaces inclusive ■■ Encourage more women to stay and progress involvement at every level of the business and for all our employees. we are proud to be one of the few publicly listed ■■ Support and develop more women into companies with Employee Directors to engage The overall proportion of female employees in higher paying roles with its workforce in the UK. This gives the the Group remained steady this year at 40.5% ■■ Ensure men are more aware and can play Boards of our bus and rail operating companies (2019: 40.0%). The proportion of women in their part in creating an inclusive workplace an employee viewpoint on matters affecting senior management positions has continued that is welcoming to women. the direction and governance of our business to increase, up from 23.2% in 2019 to 26.3% as well as providing an additional route for this year.
FirstGroup Annual Report and Accounts 2020 49 Strategic report continued
Our stakeholders continued
Information on the actions we are taking in unconscious bias training for hiring managers, Building future capability support of each commitment is contained have all helped to increase BAME hires in the In North America, our new college recruitment in our 2019 Gender Pay Gap Report which UK from 12% to 15% in 2019/20; 36% of our scheme, ‘Aspiring Managers’, is bringing new can be found at www.firstgroupplc.com. 2019 graduate intake were from a BAME talent into the business. Ten graduates have background. Our key area of focus in the joined in a variety of operational and corporate More than 100 women have already participated coming year is to increase the proportion roles across First Student and First Transit, in our dedicated development programmes, of BAME managers across the Group. and a further 20 will join in 2021. In Greyhound, with further courses planned in 2020. ‘Step we continue to run the ‘Top Dog’ talent Up’ supports women to prepare for and attain During the year, all of our businesses have development programme for high- their first management or supervisory role, taken action to make our workplaces more potential employees. while our ‘Women’s Career Development inclusive. Greyhound, First Bus, and our larger Programme’ aims to help women in middle rail franchises have all implemented unconscious In the UK, our graduate and apprenticeship management roles progress to senior bias training to make managers more aware programmes remain important sources of leadership positions. of, and therefore better able to, overcome any engineering and leadership talent. We currently discrimination within the workplace. have 186 apprentices in training across the UK, and 18 graduates joined us in a variety of Other actions taken this year to promote engineering and operational management diversity and inclusion include: roles in 2019. We have continued to promote ■■ First Bus and First Rail both supported our opportunities to female undergraduates, PRIDE events across their networks; for and are pleased that as a result, women made example, SWR was an official partner of up 39% of our 2019 UK graduate intake, up Southampton PRIDE 2019. from 25% in 2017. ■■ The partnership between First Rail and The Prince’s Trust continues to provide work placements and mentoring for disadvantaged young people. The ‘Step Up’ course helped me prepare for job applications and interviews and Across the Group, full and fair consideration gave me an insight into the leadership is given to applications for employment by and management qualities I would need people with disabilities. We are committed to progress. I’ve since been promoted to supporting disabled employees, including into a team leader role and will use the employees who become disabled during the course of their employment with the Group, skills I learned to develop further in future. with regards to training, career development and promotion. Shannon Fox, Maintenance Team Leader, Training and development South Western Railway Each of our divisions provides training to We recognise that even more needs to be enable employees to deliver great service for done to build a pipeline of talented women to our customers, including new programmes I used to work in childcare, but as my fill positions at all levels of management. As a like ‘Leading with a service mindset’ in First daughter got older, I decided it was time result, we have introduced a third development Transit alongside established programmes for something different and went back programme, ‘Step Forward’, to support such as Journey Makers in First Bus. to university as a mature student in women in junior managerial roles to prepare The needs of some of our customers mean that mechanical engineering. for middle management jobs. Twenty women additional training is required for the employees The First Bus engineering graduate from across our UK businesses are already who transport them. First Student, in scheme really appealed to me as I participating in a pilot programme, with plans partnership with Cincinnati Children’s Hospital, wanted to be able to get hands-on with to run further events in 2020. has developed the ‘First Serves’ programme for the buses. Everyone has been really We also recognise that more needs to be drivers whose role it is to transport children with supportive and I know that there are a done to support the attraction, retention and special needs. The course was piloted in career progression of people from a black, several First Student locations during 2019 and huge number of career opportunities Asian and minority ethnic (BAME) background will be extended further during 2020. open to me. across the passenger transport sector. In the In order to address the shortage of US, of those employees who disclosed their engineering and maintenance skills affecting Laura Dixon, Engineering Management ethnic origin this year, 51.3% were from an many employers, several schemes are Graduate, First Bus Operations Graduate ethnic minority background. In the UK, data on underway in different locations across North Health and wellbeing ethnicity has only been collected at America to provide technician apprentice recruitment for the last few years, so our We actively encourage our employees to take training before or at the beginning of care of their physical and mental health and overall workforce data is less comprehensive maintenance careers in First Student and First than in the US. Ensuring our job adverts show have a range of initiatives in place across our Transit. This allows maintenance staff to earn operating companies to support them. diverse employees and are visible to a broader while they learn, by driving for us alongside pool of candidates, and implementing their maintenance training.
50 FirstGroup Annual Report and Accounts 2020 Strategic report
For example, in First Bus this year our Through our long-standing Greyhound wellbeing campaign for drivers focused programme, ‘Home Free’, in partnership on the importance of sleep and nutrition in with the National Runaway Safeline, we have maintaining physical wellbeing. Avanti provides continued to provide free tickets home to health and wellbeing events across its network runaway and homeless youth. The programme to educate employees about the importance Communities has seen an influx of calls related to the of maintaining a healthy lifestyle. coronavirus pandemic due to stay-at-home We aim to be the partner of choice for orders across the US. In North America, we continue to offer the the communities we serve. We listen Greyhound ‘Healthy Hound’ programme, Greyhound has also continued to work and this year more than 560 Greyhound and use feedback from our communities with partners to move vital cargo across employees have received training on safe lifting to better understand their needs, and our network, including medical supplies techniques to prevent back injuries and reduce bring this insight into everything we do. and essential foodstuffs. time lost through employee absence. First Bus has responded to community In First Student and First Transit our new How we engage with our requests for service modifications to cater employee wellbeing strategy is supported by communities for shifts of key NHS staff, including some regional wellbeing champions, and incorporates bespoke NHS services in South Yorkshire, ■■ both physical and mental wellbeing initiatives. Targeted engagement plans Scotland and Hampshire. and activities We recognise that good mental health enables Avanti, GWR and TPE have released ■■ Regular dialogue, events and direct our employees to work safely and provide employees with vital skills in order to support engagement activities great service to our customers. In the UK, we partner organisations during the pandemic, have introduced mental health first aiders, who ■■ Stakeholder reports and surveys including NHS volunteers, pharmacists, police have been trained to recognise the signs that ■■ Community investment, charitable drone pilots, armed services reservists, someone may experiencing an issue, to offer engagement and employee volunteering paramedics and special constables to help the initial support and direct them to appropriate response efforts, providing hundreds of hours help if required. We now have mental health Board engagement on of support for the communities we serve. first aiders across First Bus and the majority communities this year After a pioneering trial that included GWR, the of our rail franchises. In addition, all of our ■■ Monthly updates by the Chief Executive Rail to Refuge scheme, designed in partnership businesses offer employees access to ■■ with Women’s Aid to provide free assistance free, confidential counselling. Specific updates from the Group Corporate Services Director and to those fleeing abuse in their own home Mental health at work the Group Director of Corporate during lockdown, went nationwide and was Responsibility on community issues adopted by all rail companies for the duration Chris Gunns, a Sheffield train guard, has as required of the coronavirus lockdown period. spoken publicly about his own battles with ■■ Updates from divisional leadership Our TOCs are also donating food and other mental health issues in a bid to encourage teams as required supplies that can no longer be served on board. other men to talk – particularly those in the Donations so far have gone to organisations rail industry. Since being diagnosed with including South Western Ambulance Service, clinical depression in 2006, Chris has Supporting our communities during North Bristol Food Bank, Fareshare South launched his own blog and now campaigns the coronavirus pandemic West, Torbay General Hospital, Derriford to raise awareness of mental health issues. We are proud of the community support our teams have provided during the coronavirus Hospital Plymouth, Cheltenham Hospital pandemic, going above and beyond to help and Quwwat-ul-Islam Mosque in London. our communities in the most difficult of times. More information on our community response This has included the distribution of food to the pandemic can be found on pages 2 supplies to vulnerable families; the movement and 3. of medical supplies and safety kits around our Community engagement strategies networks; the delivery of schoolwork for Throughout the year across the Group our students; donations of food and supplies; and teams have continued to establish community enabling employees to take time away from engagement plans at a local level, ensuring duties to volunteer for charities, community that they are going beyond their daily contact groups and other organisations. with our direct customers, and are listening, In Greyhound, we launched ‘Rides for understanding and responding to the needs Responders’, a programme that provides free of our communities and wider stakeholders. It’s important to take that first step travel for medical personnel and first responders and talk to people about mental We continue to offer tools such as structured, who need to travel during the coronavirus standardised community engagement plans, health – once you’ve done it you’ll pandemic. We have also supported the feel a weight off your shoulders. and training on engagement techniques to National Guard with transportation to cities employees at the local level across the Group. that are building temporary hospital facilities. Chris Gunns, TransPennine Express
FirstGroup Annual Report and Accounts 2020 51 Strategic report continued
Our stakeholders continued
We conduct regular surveys to seek the views More information about the impact of our CCIF of our communities, such as our annual funding can be found on our First Rail websites. stakeholder satisfaction surveys in First Rail. Our UK Charity of Choice partnership We use the results of these surveys to enhance 2018-2021: Action for Children our community engagement activities and Now two years into our three-year employee- deepen the partnerships we have with our Strategic partners chosen charity partnership with Action for stakeholders and the customers and Children, the partnership is valued at over and suppliers communities we serve. £2.1m in corporate donations, employee Working with charities fundraising and the commercial value of Our key partners help us to understand We also commit our time, skills and resources gifts in kind. and respond to the needs of our to help those charitable causes that are In 2020, the success of our partnership was customers and stakeholders, through important to our communities, both locally recognised at the ThirdSector Business collaboration and the sharing of best and nationally. Charity Awards, winning in the Automotive practice. We work with more than 30,000 This year we supported hundreds of charitable and Transport category. suppliers globally across our business, organisations through corporate donations This award reflects the community spirit of and gifts in kind, including donating advertising spending around £4.4bn each year on FirstGroup colleagues across the UK who space and vehicle hires, event sponsorships goods and services that help us deliver continue to find innovative ways to raise and travel tickets. funds and awareness for the charity, including value to our customers and stakeholders. In North America, we have continued to use setting a Guinness World Record for skipping, our unique resources as a transport provider, sky dives, auctions, bake sales and How we engage with strategic volunteering drivers and vehicles to support Three Peaks Challenges. partners and suppliers projects for our community partners. Through our partnership, Action for Children ■■ Regular dialogue with key partners In the UK, we donate advertising space across benefits from gifted advertising space and our network to help our employee-chosen travel support across our bus and rail network, ■■ Collaboration in cross-industry forums charity partner, Action for Children, to share as well as the support of employee volunteers, ■■ Certified systems for collaborative their messages with millions of people. fundraisers and over 30 charity champions supplier relationships in our workplaces around the UK. Our employees provide further support, giving ■■ Clear ethical and sustainability standards their time and effort to fundraise and support Our fourth annual Graduate Charity Challenge Board engagement on the causes they are passionate about. In the achieved a fundraising total of over £13,000 for suppliers and partners this year UK, colleagues have donated to charity Action for Children this year, raising vital funds through their pay, with over £160,000 given and awareness to help young people on their ■■ Monthly updates by the Chief Executive through our Payroll Giving scheme this year. journey to better mental health. ■■ Updates as required by the Group Tax In total, FirstGroup and our employees Thanks to our support, Action for Children has & Treasury Director who leads on donated £3.7m during 2019/20, as measured been able to deliver more than 500 hours of procurement and supplier matters by the London Benchmarking Group model mental health interventions in our communities ■■ Updates from divisional leadership for community impact. See page 57 for a more and upskill more than 230 of their employees teams as required detailed breakdown of our contribution. around mental health. Our Community Rail Partnerships In the year ahead, thanks to FirstGroup Working with our strategic and local community investment funding, 3,500 primary school children will partners and suppliers during In First Rail, we work in partnership with benefit through the delivery of FRIENDS, an the coronavirus pandemic local councils, the Community Rail Network early intervention and prevention programme Like many organisations, we have responded (previously known as the Association of that builds mental health resilience in children rapidly and comprehensively to mitigate Community Rail Partnerships) and the DfT aged 4 to 11. potential disruption to our supply chain during to provide funding, advice and support for Action for Children protects and supports the coronavirus pandemic. Community Rail Partnerships (CRPs). vulnerable children and young people Public transport has played a vital role in Our CRPs work with their local communities to by providing practical and emotional care keeping essential workers moving during the encourage rail travel. They develop volunteer and support, ensuring their voices are crisis, and our swift and thorough support networks and help deliver station and heard and campaigning to bring lasting procurement efforts have supported the safe service improvements. improvements to their lives. and effective delivery of our services We also provide support through our With 476 services in communities across throughout this time. Customer and Communities Improvement the country, the charity helps more than Our efforts have been led by a dedicated Funds (CCIFs), investing in schemes along our 387,000 children, teenagers, parents and procurement taskforce, which was set up lines of route that demonstrate real benefit to carers a year. Find out more by visiting to review and manage coronavirus risks to the community, meet a social need, and are www.actionforchildren.org.uk. our supply chains across our divisions and not for commercial gain, in areas including the Group. education, social inclusion, transport integration, and the provision of better travel information.
52 FirstGroup Annual Report and Accounts 2020 Strategic report
This has included workstreams in the high speed and conventional rail services. make sure we work together in a fair, following areas: Specifically, our partnerships team within West consistent and transparent manner. Coast Development will work with HS2 Ltd ■■ Key supplier engagement – including Within First Rail we use the international to ensure smooth design and development, assessments conducted with all of our key standard ISO 44001 for managing our supplier mobilisation and delivery of services on the suppliers to identify the operational risks and relationships and this year we were recognised new HS2 line. More information on our impacts of the coronavirus pandemic on our as an ‘advanced leader’ by external community engagement strategies can be supply chain. This has been kept under benchmarking organisation State of Flux for found on page 51. constant review throughout the pandemic. the best practice we demonstrate in this area. We also engage in strategic high-level ■■ Regular dialogue with these key suppliers – We make sure that all payments to our partnerships through trade bodies to ensure including planning for the transition back to suppliers are made within the appropriate a coordinated response to industry-wide a ‘new normal’ operation as our bus and rail credit timeframe. The average credit period challenges. Most recently, we have worked services increase. taken for trade purchases across our business effectively through the RDG, CPT, NSTA and ■■ in 2020 was 28 days (2019: 31 days). We also Procurement activity to support the robust APTA, to secure essential government support provide our suppliers with clear governance safety measures that were implemented by for our operations as a consequence of and compliance standards and conduct the Group to help limit, as far as we possibly travel restrictions imposed to tackle the regular feedback meetings to share can, the spread of coronavirus – including coronavirus pandemic. the sourcing and supply of PPE and specialist knowledge and address challenges. We also engage in these forums to gain and equipment, with rigorous processes in place Sustainability in our supply chain share knowledge and expertise, as well as to ensure full validation of the authenticity It’s important to us that we work with our develop common industry positions in a range and certification of these critical products. suppliers to improve the environmental, of policy areas including Brexit or climate change. Securing the timely supply of antiviral social and broader sustainability impacts of products, disinfectants and other new In the US, First Transit President Brad Thomas the services they provide us. We expect our products developed to address the was appointed to the National Safety Council’s suppliers to observe business principles and coronavirus pandemic has been vital in (NSC) Board of Directors in November 2019, ethics consistent with our own and will not delivering enhancements to our already to inform and promote the NSC’s work on procure goods and services from sources stringent cleaning protocols for our vehicles workplace safety. that jeopardise human rights, safety or the and buildings across all divisions. For example, environment. Our minimum expectations In First Rail for example, we chair the Sustainable ozonation, which is a highly effective deep on anti-bribery, safety, environment, data Development Steering Group for our industry cleaning method for vehicles, has been protection and modern slavery are outlined representative body, the Rail Safety and deployed, as well as a number of innovative in our Group-wide Supplier Code of Conduct Standards Board (RSSB), to help set products that give extended protection from and Code of Ethics and incorporated into our sustainability goals for the rail industry and recontamination after cleaning. standard contracting terms and conditions. develop tools and guidance to support the In addition, we screen suppliers to assess the More information on risk in relation to the industry transition to a lower carbon future. coronavirus pandemic can be found on page 59, level of associated environmental and social and safety can be found on pages 42 and 43. Similarly, First Bus has led industry engagement risk, conduct audits and follow up issues with accessibility groups and disability NGOs identified where necessary. Strategic partners on the UK Government’s ‘It’s Everyone’s Where possible we work with partners and We work closely with our strategic partners Journey’ campaign, which launched in suppliers to find more innovative ways of across all our businesses. Our experience February 2020. and strong operational track record allow providing the highest standard of service us to maximise the potential of our key Procurement with an improved environmental impact. We work with more than 30,000 suppliers relationships, irrespective of scale. For instance, We continue to partner with a range of globally across our business, spending our TOCs work closely with small local user organisations across our divisions to drive around £4.4bn each year on goods and groups and Community Rail Partnerships innovation and the adoption of low- and services that help us deliver value to our to provide enhanced services to specific zero-carbon vehicles in our fleets. More customers and stakeholders. communities, whilst also developing long-term information on our Group-wide strategic strategic alliances with Network Rail, a national We have dedicated teams of procurement framework for sustainability, Mobility Beyond infrastructure supplier. specialists within our divisions that build and Today, can be found on page 38. maintain our relationships with our suppliers, Our local management teams are adept at Working with local businesses making sure they understand our needs and mapping and understanding the needs of their Our support of small and medium-sized can deliver the highest quality at the best price local stakeholders, as well as developing enterprises (SMEs) in the local communities whilst promoting innovation and managing partnerships which deliver enhanced services we serve is also a focus and of importance to supply chain risks. and value to both the business and the us at FirstGroup. This year we introduced a communities it serves. For instance, in our Building long-term relationships new analytical tool that provides us with a newest rail operation, West Coast Partnership, The long-term partnerships we build with our quicker way to understand our supply base we will transform engagement with local, suppliers are based on mutual trust. We have across our UK divisions. This tool enables us regional and national partners through an regular forums to share knowledge and best to easily identify areas for supplier consolidation independently chaired Economic Development practice with our suppliers and work to and increased value, as well as identify where Forum and an Integrated Transport Forum, continually build on our existing relationships and how we support SMEs and enable us to giving stakeholders a voice to shape future with clear systems and controls in place to do so more quickly and effectively.
FirstGroup Annual Report and Accounts 2020 53