During 2001 our sustainability
programme progressed to deliver continual improvement in the
management of our environmental, social and economic impacts.
We have received acclaim across
a range of our activities, for example, we received the following
awards:
Twelve Industry Awards
Five Communication Awards
Nine Safety Awards
Seven Client Awards
Nine Considerate Contractor
Awards
Three Training Awards
One Award for environmental
reporting
2001 Objectives and Targets
As an integral part of our sustainability
programme we set objectives and targets. 2001 saw the completion
of thirteen
two-year objectives, which were first
adopted at the beginning of 2000. Annual milestone targets
supported these objectives and in 2001, thirty-two targets
were adopted for delivery across Carillion.
In 2001 84% of our targets were
fully or substantially (scoring 8.5 or more out of 10) achieved,
this demonstrates an increase in performance when compared
to the 79% achieved in 2000.
The graph below
shows the consolidated results for the 32 targets for 2001.
Of these consolidated targets 31% were fully achieved and
53% were partially achieved. The target scores are reported
in this way to be consistent with reports made in previous
years. These consolidated targets were tackled by between
1 and 9 business units or functions. For example, 9 Business
Groups were targeted to deliver sustainability training to
10% of employees. This target was fully achieved by 8 of the
Business Groups, resulting in an overall score of 96%, therefore
substantially achieved overall, despite 8 of the 9 individual
targets being fully achieved.
If the analysis is broken down
into the 106 individual targets for 2001,76.4% were fully
achieved and a further 6.6% were partially achieved.
The high level of target achievement
is attributable to the continued implementation and growth
of our sustainability programme. The achievement of our targets
demonstrates that as a group and as individual businesses
that the principles of sustainable development are becoming
more embedded into everyday activities and therefore, becoming
part of our culture.
The achievement of the targets
was externally audited and verified by Casella
Stanger. A
verification statement, which includes
recommendations for improvement, was provided.
Key Performance
Indicators
The Carillion Sustainability
Operations Group selected and agreed several
Key Performance Indicators
(KPIs). The KPIs were taken from a range of sources, including
Carillion internal KPIs, Construction Industry Research and
Information Association (CIRIA) and the Global Reporting Initiative
(GRI). Several of the KPIs were a result of Carillion’s
involvement in the Business in the Community "Winning
with Integrity" Initiative. Carillion is a founder member
of this steering group of leading organisations focusing on
ensuring that business can be undertaken in a successful and
sustainable manner. The identification of KPIs that can be
accurately measured is a fundamental element of this process.
We have developed a Carillion
model
which we use to demonstrate how we can
derive value for the business through sustainability and also
become more sustainable in the process.
The model, which we are still
continuing to develop, is a result of our attempts to understand
how we can use our sustainability Key Performance Indicators
(KPIs) in a strategic way to help us deliver our Group objectives.
To bring a clear focus to the
business benefits to be gained from measuring our sustainability
performance, a review of each KPI was undertaken. The aim
of this review was to identify which KPIs could be used to
improve our management of business issues.
We identified that several of
our indicators are strategic to the business, whilst a number
of others help us to deliver business improvement in various
areas. A third set of indicators (which we will continue to
report as a matter of good practice) are important as part
of our corporate social responsibility performance and will
be necessary to continue to demonstrate that we meet our corporate
sustainability standards.
This exercise enabled us to recognise
that our KPIs do help us to improve our business and deliver
our group objectives. We also looked at how, by delivering
these KPIs, society and communities would benefit and hence
how the KPIs would help us to contribute to delivering sustainable
development.
We will continue to develop this
model with the help of a number of our stakeholders during
the course of this year to enable us to have a set of well
focussed KPIs for 2003.
Our Progress in 2001
We fully recognise
that to demonstrate our contribution to sustainable development
that we need to provide details of our environmental, social
and economic impacts and their associated interrelationship.
A significant
achievement during 2001 was the development and communication
of our sustainability policy. The policy provides a basis
upon which to further develop our strategy and targets and
has enabled us to align these with 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 provided
information on our environment, economic and social impacts
and performance within the following four sections of the
report:
We aim to minimise
environmental pollution and maximise environmental protection
in the areas in which we operate
We are committed to reducing
the amount of carbon dioxide we produce by minimising energy
consumption and looking at the use of renewable energy sources.
For example, 52 facilities (office and projects) are now fully
operated using hydroelectric energy and by operating our head
office buildings in Wolverhampton (Birch Street, Peal House
and Derwent House) using hydroelectric power supplies we save
1,275,335 kg of carbon dioxide from being generated.
Prudent Use of Natural Resources
We will minimise
the use of natural resources through the adoption of environmental
management systems, effective environmental supply chain management,
waste minimisation techniques and sustainable design.
A significant area of environmental,
social and financial concern is the control of supplied materials
and services. During 2001, Carillion spent approximately 85%
of our turnover on purchasing goods and services. This was
spent with approximately 9,000 suppliers and sub-contractors.
Therefore, we are developing systems to more closely control
our social impacts.
Social Impact
Carillion will improve the
quality of life for employees, their families and local communities
where we work
During 2001 the average number
of people employed was 18203, of which 3657 were overseas
and 3552 were involved in Joint Ventures.
During 2001 formal environmental
training courses were delivered to 1,021 employees.
Economic
Growth and Prosperity
We aim to maintain our position
as a leader in the Construction to Services Sector and use
sustainable development principles to deliver enhanced shareholder
value.
Our 2001 turnover was £1,889.8
million
During 2001 we supported and
assisted conservation groups and donated £25,000 to The Wildlife
Trusts (Ref
1) through a sponsorship campaign, called
Carillion Natural Habitats. This money was used to fund three
projects, for example, £8,500 was donated for work at Moorbridge
Pond Nature Reserve. This is a site of importance as it is
one of the few wetland areas remaining in Nottingham.
Over the next 12 months a further
£25,000 will be donated and regional branches of the Wildlife
Trusts can apply for money from the Carillion Natural Habitats
sponsorship, to fund specific projects to benefit wildlife.
The Future
The very nature of sustainability
is about making changes today to improve our tomorrows. The
processes highlighted in this report are designed to continue
and grow in a framework to guide all our activities. From
this framework we can think coherently about the way we move
forward and take greater responsibility for all our actions.
Carillion is a market leader
on sustainable issues, but we are not complacent about our
position and wish to continue with our leading role. Partnership
is a key factor in maintaining this status and we will need
to create and accommodate new relationships while consolidating
the old ones formed with groups such as The
Natural Step ,Business
in the Community ,The
Wildlife Trusts and
CIRIA.
Together we can spread and develop the ideas of sustainability.
Our sustainability programme
will continue to be driven by our Sustainability Committee.
The committee is chaired by our Chairman, Sir Neville Simms,
and consists of Roger Robinson, a main board Director whose
responsibilities include sustainability, and other members
of the senior management team. The Committee retains an external
perspective through membership of a new Independent Advisor,
Jonathan Porritt, who is also Chairman of the UK Government’s
Sustainable Development Commission.
Jonathan Porritt our external
advisor outlines his view of the future
challenges
facing Carillion.
(REF1) The Wildlife
Trusts, a national charity which operates through a network
of 46 local Wildlife Trusts, has 363,000 members and manages
more than 2,300 nature reserves.
