Since publishing our first Sustainability
Report last year, we have made significant progress
with the development of our sustainability programme, which
has evolved from the environmental programme we started in
1994.
In 2001, we reviewed and updated our policy
on sustainability and communicated this throughout the Group.
Our new policy provides a better basis upon which to develop
our sustainability targets and has enabled us to link these
to the Group’s business strategy and objectives. This
link is vital if we are to embed the principles of sustainable
development into all our business activities to the benefit
of all our stakeholders.
We have also reconstituted our Sustainability
Committee, which I chair, to refresh and strengthen its role
in providing strategic focus, setting targets and driving
our sustainability programme. This Committee includes Roger
Robinson, the main board director whose responsibilities include
Sustainability, and other members of Carillion’s senior
management team. An external perspective is provided by an
independent member, Jonathan Porritt, who is also Chairman
of the UK Government’s Sustainable Development Commission.
In 2002, we intend to appoint a second independent member
with further experience in the area of corporate social responsibility.
In this report we have summarised our new
sustainability policy, the scope of our programme, how we
manage its implementation and our performance in 2001. Our
performance is reported against specific targets and in wider
qualitative terms in accordance with the UK Government’s
four objectives for sustainable development:
effective protection of the environment
prudent use of natural resources
social progress and
economic growth and prosperity
This web report is supported by a short sustainability
review of our performance in 2001, which is available on request
via email at sustainability@carillionplc.com.
I hope you find this report helpful in explaining
our achievements, our aspirations and our
commitment to developing a more sustainable business.
Chief Executive's Statement
John McDonough
My first year as Chief Executive has been one
of considerable progress and change for Carillion.
As our 2001 financial results show, we made
excellent progress with our strategy for growing good quality
earnings through changing the Group's business mix, increasing
efficiency and strengthening our focus on delivering solutions
that exceed our customers' expectations. Much of this progress
has come from changing the structure of our business and from
our efforts to create a culture for growth and success.
In May 2001, we restructured our senior management
team, including a reduction in the number of Executive Directors
from five to three and the introduction of a flatter more
efficient structure. Later in the year we launched a major
Business Improvement Programme. This extended the restructuring
to other areas of our business to create a more customer focused
and efficient organisation and introduced our Valuing the
Future programme to help our people to understand and "live"
our core Values. One of our Values is to focus on sustainable
growth, because we believe our ability to offer sustainable
solutions differentiates us from our competitors and enables
us to add value for our customers and our shareholders.
This year we fully or substantially achieved
84% of our sustainability targets, compared with 79% in 2000.
In comparing our year on year performance it is important
to note that we set increasingly demanding targets, which
involve our Business Groups working together in a more integrated
way. I am particularly pleased that we have been able to link
our sustainability key performance indicators directly to
our business strategy and objectives, thus demonstrating the
importance of sustainability to the overall success of our
business.
I should like to thank all our people for
their growing personal contributions to our sustainability
programme, which owes its success to their enthusiasm and
commitment to the sustainable development of Carillion's business.
