The Carillion Sustainability Operations Group selected and agreed 59 Key Performance Indicators (KPI's). The KPI's were taken from a range of sources, including Carillion internal KPIs, CIRIA and the Global Reporting Initiative(GRI). Several of the KPI's 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 KPI's 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 (KPI's) 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 KPI's 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 KPI's do help us to improve our business and deliver our group objectives. We also looked at how, by delivering these KPI's, society and communities would benefit and hence how the KPI's 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 KP'Is for 2003.