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Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

Sustainability is...

We are making tomorrow a better place


We continue to build a sustainable and
successful business by delivering on our six
positive outcomes, which support profitable,
responsible growth and underpin our values
as a responsible business.

Our positive outcomes

Building a successful business

Leading the way with our customers and


suppliers

Providing better prospects for our people

Supporting sustainable communities

Enabling low-carbon economies

Protecting the environment

It makes business sense

Sustainability in action
Linking sustainability to the bottom
line
27.2M SUSTAINABILITY CONTRIBUTION TO PROFIT IN
2014

Engaging and collaborating with the


industry supply chain
FUNDING PARTNER OF THE SUPPLY CHAIN
SUSTAINABILITY SCHOOL

2014 Sustainability Review with Richard Howson

Sustainability is so important to Carillion because


it makes a fundamental difference to our
business success. We estimate that it
contributed 27.2m to our profit in 2014. Given
our local commitments across contracts and
projects, this also created many wider benefits
for our communities, for our own people and for
our suppliers and partners.

An inclusive workplace
FAIR OPPORTUNITIES FOR EX-OFFENDERS WHEN
APPLYING FOR JOBS

Investing in future skills


5,000 APPRENTICESHIPS TO BE OFFERED DURING THE
NEXT FIVE YEARS

Climate performance A-list


99A SCORE IN CARBON DISCLOSURE PROJECT

RICHARD HOWSON, Chief Executive

Waste no more

READ MORE

WASTE-REDUCING INITIATIVES IN CANADA

Our key impacts

27.2m

51%

net profit contribution through


sustainability efficiencies

local spend including SMEs

49%

87%

reduction in our All Accident


Frequency Rate since 2011

of apprentices found
employment or pursued further
education

17%

95%

reduction of our carbon


footprint since 2011
(normalised)

waste diverted from landfill

VIEW OUR KEY FIGURES AT A GLANCE

VIEW OUR FULL PERFORMANCE AGAINST TARGETS

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

Carillion is...
building a successful

Sustainability makes us
more profitable: fact
BUILDING A
SUCCESSFUL
BUSINESS

About us
2014 at a glance

It helps us to win and deliver profitable work responsibly


and encourages collaboration around innovation, safety,
the efficient use of resources and the creation of social
value. Increasingly, this is what our customers and society
expect from leading sustainable businesses, which is why
we choose to operate to standards that go well beyond
minimum requirements.

Welcome from
our Chief
Executive and
Chairman

Sustainability in action
Materiality review

Views from our


Chief
Sustainability
Officer and
independent
advisors

WHAT MATTERS MOST TO OUR


STAKEHOLDERS?

Investing in integrity

Our 2020 strategy


Targets and
performance

Our Board Sustainability


Committee

Governance and
risk

Chairing the Board Sustainability


Committee is an important
opportunity to make sure that
Carillions award-winning

INSTITUTE OF BUSINESS ETHICS


AWARDS CARILLION THE INVESTING IN
INTEGRITY CHARTER MARK

Broker research note


IMPRESSING ANALYSTS WITH OUR
WORK AT BATTERSEA POWER
STATION

Integrity and
ethics
About this report

sustainability progress to date


remains ambitious and relevant.
Resilience and balance will become
ever more fundamental to
responsible and forward-thinking
businesses.
DR CERI POWELL, Carillion NonExecutive Director
READ MORE

Our key figures


2014 performance highlights

5.1bn

216.9m

of new and probable


orders
2013: 4.9bn

underlying profit from


operations
2013: 214.3m

Progress against targets

27.2m

contribution to net
profit through
sustainability strategy
Targets

2014: 25m
2020: 40m
Target achieved
VIEW OUR FULL PERFORMANCE AGAINST TARGETS

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

ABOUT US
TRIED/TESTED/TRUSTED

BUILDING A
SUCCESSFUL
BUSINESS

OUR VISION AND VALUES


OPERATING SEGMENTS
HOW DO WE CREATE ECONOMIC VALUE?

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report

Carillion is one of the UKs leading integrated support services companies,


with a substantial portfolio of Public Private Partnership projects,
extensive construction capabilities and a sector-leading ability to deliver
sustainable solutions.

TRIED/TESTED/TRUSTED
We have a track record of delivering sustainable, cost-effective
solutions for our customers safely and of creating positive
legacies for the communities where we work and live. Whether
it is providing facilities management services for over 100,000
buildings, the management and maintenance of transport and
utility networks or delivering award-winning cultural,
residential, commercial or community developments we
strive to deliver high-quality services that make a positive
difference to people and communities.
We have continued to respond decisively to challenging market
conditions to create a leaner, stronger business, capable of
delivering growth over the medium term. As well as rescaling
some of our existing businesses to ensure they are aligned in
size to their markets, we have strengthened our positions in
markets that offer opportunities for growth. Strong corporate
governance, together with rigorous risk management
processes and our efficient central operating platform, help us
to deliver the most complex projects successfully.
We are a trusted partner when trust matters most. We provide
mission-critical facilities management services to public and
private sector customers, notably in the health, defence,
secure accommodation, financial services and energy sectors.
We keep transport and utility networks operating 24/7 and

4.1bn

Groups annual revenue

42,000
employees

deliver new hospitals, schools, roads, railways and other


landmark buildings and structures. We build long-term
partnerships based on delivering value for money services that
our customers know they can rely on.

OUR VISION AND VALUES


Our Vision: To be the trusted partner for providing services,
delivering infrastructure and creating places that bring lasting
benefits to our customers and the communities in which we
live and work.
Our Values help us build trust and set the standard for
sustainability in our sector:

We care: we respect each other and we do things safely


and sustainably. It is good for our people, our business
and our local communities.
We achieve together: we value the contribution of each
individual and we work together to build strong, open
and trusting partnerships.
We improve: we listen, we learn and we adapt our ideas
and experience into better solutions and service for our
customers.

Working and
achieving together,
caring and improving
these values help
us to deliver
outstanding support
services for our
clients, and to build
real trust and
strength in our
teams.
NIGEL TAYLOR,
Managing Director,
Services UK

We deliver: we set ourselves stretching goals and we


take pride in doing a great job and helping our
customers and partners to succeed.

OPERATING SEGMENTS

Business units
At Group level, we report our financial results in four business segments.

Support services
Including our facilities management, facilities services, energy services, rail
services, utility services, road maintenance and consultancy businesses in the UK,
Canada and the Middle East.
Order book plus probable orders

14.1bn
Underlying operating profit

135.9m

Public Private Partnership (PPP) projects


Including financial returns generated by the investments we make in Public Private
Partnership (PPP) projects in the UK and Canada, including those from the sale of
equity investments.
Order book plus probable orders

1.2bn
Underlying operating profit

34.5m
Middle East construction services
Including our building and civil engineering activities in the Middle East and North
Africa.
Order book plus probable orders

0.9bn
Underlying operating profit

25.1m
Construction services (excluding the Middle East)
Including our UK building, civil engineering and developments businesses and our
construction activities in Canada.
Order book plus probable orders

2.4bn
Underlying operating profit

41.5m

How do we create economic value?


m

2012

2013

2014

Total revenue (excluding Joint Ventures)

3,666.2 3,332.6 3,493.9

Operating costs

2,689.7 2,414.7 2,507.8

Employee wages and benefits

761.0

751.0

777.7

Payments to providers of capital

94.7

100.7

103.5

Payments to Government (taxes)

5.7

7.8

7.7

Charitable and community giving through a combination of employees time, cash,


and in-kind donations

2.2

1.9

1.8

115.1

58.4

97.2

Economic value retained

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

2014 AT A GLANCE

BUILDING A
SUCCESSFUL
BUSINESS

About us
2014 at a glance

We are proud to be making progress on our sustainability journey that


began when Carillion was formed in 1999. From our first Sustainability
Policy in 2001; BITC Company of the Year in 2003, ISO 9001 and 14001
accreditations in 2004; and Platinum status in the BITC Corporate
Responsibility Index, we have shown we are serious about making
tomorrow a better place. These are some of the highlights from the
reporting period:

Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors

4.1bn
Group revenue

27.2m

+37

99A

profit contribution
through
sustainability
strategy

49%

reduction in All
Accident Frequency
Rate (AAFR)

Our 2020 strategy


Targets and
performance
Governance and
risk
Integrity and
ethics
About this report

Net Promoter Score


measuring customer
satisfaction

near-perfect score for


carbon disclosure
through the Carbon
Disclosure Project

Building Public Trust


Award (PWC)
retained for a 2nd
year for FTSE 250
Sustainability
Reporting

17%
Investing in Integrity
Charter Mark

reduction of our
carbon footprint
since 2011
(normalised)

28%

51%

reduction in water
use since 2012

local supplier spend

95%

of waste diverted
from landfill

1%

pre-tax profit
donated to
community
activities

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

WELCOME FROM OUR CHIEF EXECUTIVE AND


CHAIRMAN
BUILDING A
SUCCESSFUL
BUSINESS

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report

PHILIP GREEN, CHAIRMAN


RICHARD HOWSON, CHIEF EXECUTIVE OFFICER

Business-critical sustainability, local responsibilities and long-term trust:


our Chairman and Chief Executive reflect on performance over the last 12
months.

PHILIP GREEN, CHAIRMAN


Our markets remained challenging in 2014 although we began
to see signs of improvement that we expect to continue this
year, subject to there being a sustained economic recovery.
We continued to be very selective in terms of choosing the
contracts for which we bid, as we have done throughout the
economic downturn, and this was reflected in our underlying
operating margin, which remains unchanged at 5.6%.
The Groups total revenue was also unchanged at 4.1 billion,
with underlying profit before tax marginally lower at 172.9
million (2013: 174.7 million) and underlying earnings per share
at 33.7 pence (2013: 34.7 pence). Basic earnings per share
increased by 20% to 28.0 pence (2013: 23.3 pence) and the
Board is recommending a 1% increase in the full-year dividend
to 17.75 pence.
Overall, we delivered another solid performance, but recent
history tells us that we need to remain totally focused on
strong corporate governance, high standards of ethical
behaviour and rigorous risk management. Our balanced and
ambitious commitments to economic, social and
environmental responsibility underpin our drive to become
and remain a leader in sustainability.

Our balanced and


ambitious
commitments to
economic, social and
environmental
responsibility
underpin our drive to
become and remain a
leader in
sustainability.
PHILIP GREEN,
Chairman

RICHARD HOWSON, CHIEF EXECUTIVE


OFFICER

2014 Sustainability Review with Richard Howson


Sustainability is so important to Carillion because it makes a
fundamental difference to our business success. It is not all
about the bottom line as the health, safety and welfare of our
people and those touched by our operations always comes
first. However, economic responsibility is a key element of a
balanced sustainability strategy, and we estimate that it
contributed 27.2 million to our profit in 2014. Given our local
commitments across contracts and projects, this also created
many wider benefits for the communities in which we operate,
for our own people and for our suppliers and partners.
We are helping to regenerate deprived neighbourhoods,
offering employment where its most needed and training
people to have the right skills to enter and stay in the job
market. We are also tackling carbon emissions from our sites,
offices, vehicle fleets and supply chains and I am pleased to
report a further 17% reduction in carbon emissions since 2011,
when normalised by turnover.
All these achievements are down to the skills and commitment
of our diverse workforce, which drives the creativity and
innovation we need to compete across all our markets and
geographies. Investing in safety, training and diversity is not
optional, but business critical, and we remain focused on our
target of zero accidents.
It is easy to say that ethics and integrity are of paramount
importance, but at Carillion we really mean it. In particular, we
were proud to win the PWC Building Public Trust award for the
second year in succession the first time that a FTSE 250
company has done so and gain the Investing in Integrity
Charter Mark from the Institute of Business Ethics.
I believe the breadth, depth and success of our sustainability
programme confirms that Carillion is a recognised leader in
sustainability. In this report we have set out the evidence to

It is easy to say that


ethics and integrity
are of paramount
importance, but at
Carillion we really
mean it. In particular,
we were proud to
win the PWC Building
Public Trust award
for the second year in
succession the first
time that a FTSE 250
company has done
so.
RICHARD HOWSON,
Chief Executive
Officer

support our claim. At the same time, we know we still have a


great deal to do to deliver our sustainability strategy and its
positive outcomes, but I am confident we will do so.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

VIEWS FROM OUR CHIEF SUSTAINABILITY OFFICER


AND INDEPENDENT ADVISORS
BUILDING A
SUCCESSFUL
BUSINESS

DAVID PICTON, CHIEF SUSTAINABILITY OFFICER


A VIEW FROM DAME JULIA CLEVERDON
A VIEW FROM JONATHON PORRITT

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report

DAVID PICTON, CHIEF SUSTAINABILITY


OFFICER
Now, more than ever, sustainability is not a nice-to-have, it is
critical for long-term business success. That critical nature
extends to making sustainability a strong, balanced approach
and delivering on the Three CBs integrated approach to drive
impact: changing behaviours, commercial benefit and
challenging balance.
Changing behaviours: in order for sustainability initiatives to
take root and make a longterm impact on both business and
the community, they have to change behaviours. In the
business sense, this begins internally by encouraging best
practice, responsibility and personal commitments among our
people. It means achieving positive change by acting early and
through regular commitment.
Commercial benefit: profit can have negative connotations but
profitable businesses are in the best position to share their
value not only with shareholders but with communities, the
environment, employees and supply chains. Evidence
emerged in 2014 specifically linking sustainability with
profitability and building positive customer relationships. We
took the step a few years ago to include sustainability metrics
in our financial reporting, demonstrating that a streamlined,
responsible, ethical business can (and should) also be a
profitable one for the long term. This year weve made
steady progress in measuring the value of sustainability against
our Sustainability 2020 targets.
Challenging balance: to achieve lasting change for itself, for
organisations and for communities a truly sustainable

Now, more than ever,


sustainability is not a
nice-to-have, it is
critical for long-term
business success.
Sustainability needs a
strong, integrated
approach which
delivers on the Three
CBs: changing
behaviours,
commercial benefit
and challenging
balance.
DAVID PICTON, Chief
Sustainability Officer,
Carillion

business must be ambitious, challenging preconceptions and


entrenched beliefs. In sustainability terms, that also needs to
be balanced across economic, social and environmental
responsibilities. Traditionally green or environmental
considerations remain high on the sustainability agenda, but
social responsibility creates longterm legacies in the
communities where we work and live.
This year weve made steady progress in measuring the value
of sustainability and aiming for our Sustainability 2020 targets.
In sectors like construction and services, which rely
fundamentally on working with partners, its important to
recognise that collaboration is key to success. Managing
resources wisely, developing new and competitive
innovations, engaging credibly with local communities and
building long-term economic success all require learning and
skills development. This fundamentally is at the heart of our
Sustainability 2020 strategy, and we know that there is a lot still
to tackle as we work to make tomorrow a better place.
Looking ahead, were still ambitious with what we want to
achieve through our sustainability expectations and targets.
The achievements to date have set a firm platform of evidence
and benchmarks in place so much so, that we often overlook
things that we now take for granted as our daily business and
values. Its the way that we do business, but were not
complacent.
Our new Sustainability Committee will bring even greater focus
to our strategic leadership, and we will continue to test and
develop what we believe it means to be leading the way in
sustainability. Our target to achieve a 40 million contribution
to profit from sustainability by 2020 is stretching, but this is
how we will build a successful business and continue to make
sustainability business critical. Well need to make it as easy as
possible for our people to volunteer and capture that
evidence if were to get 50% of them involved by 2020, so
well develop a mobile application and continue to link them to
practical, relevant opportunities with our strategic community
partners.
For carbon, we need to continue reducing our footprint to a
minimum, and to understand how we can address and
minimise embodied carbon together with clients and suppliers.
As we look ahead to 2020 and beyond, we need to implement
a carbon strategy that delivers clear business relevance and
appropriate impact, as our business continues to evolve and
develop in a dynamic marketplace. As we close in on an
effective zero waste to landfill, we also need to remain focused
on reducing our absolute waste production, and particularly in
the Middle East where recycling infrastructure is less
advanced.
Collaboration can often be a clich, but our support for the
Supply Chain Sustainability School is anything but that it is a
clear commitment to raising sustainability skills and working
with our suppliers across the built environment. Building on

that, we will continue to develop regional stakeholder


engagement to understand what matters most in sustainability
to the people who buy, deliver, advise on and supply to our
business. Of fundamental importance will be the need for
responsible resource management, including FSC timber,
water and materials, capturing and working with suppliers
innovations and implementing regionally appropriate ethical
sourcing plans.
Turning finally to people, we need to be sure that were
engaging both our own people and those who are outside our
immediate business. Much effort is focused on implementing
the recommendations from the Great Debate, and to further
develop the knowledge we gained from our Materiality
Review. Sustainability comes to life through our people, their
actions, commitments, behaviours and impacts, so well
continue to make sustainability as inspiring as possible for and
through them.

WHAT NEXT?
Here is a snapshot of just some of the areas we will be working
on during 2015.

Building a successful

business
Reduce costs and increase efficiency to improve
margins and deliver 32.5 million to profitability
Deliver cash-backed profit
Embed the new Board Sustainability Committee
Undertake focused stakeholder engagement to
further understand the most important issues
across our regions, including a specific materiality
review in Canada
Understand better what matters to our clients in
sustainability, and how that can help improve
customer satisfaction

Leading the way

Increase expenditure with local UK suppliers to 60%


Install a further 16 EcoPods to serve 644 homes and
save 50,000 tonnes of carbon
Prepare for the introduction of Business Information
Modelling (BIM) across UK Public Service
Procurement including technical and project team
training; share experiences with suppliers and
customers; and roll out whole-life contracts in the
Middle East
Engage supply chain partners in skills development

and innovative, sustainable solutions


Enhance our understanding of ethical sourcing and
implement region-specific ethical sourcing plans

Providing better prospects

for our people


Be a recognised leader in health, safety and
sustainability
Develop and attract excellent people to create a
vibrant, diverse and flexible workforce
Develop a Stress and Mental Health Charter,
accompanied by tools and a training module to
reduce work-related stress and promote positive
mental wellbeing
Make ePOD learning available in the Middle East;
extend it to suppliers, partners and clients
Address challenges to releasing our people to
participate in volunteering

Supporting sustainable

communities
Measure and monitor actions that will have the best
positive impact for the communities where we work
and live
Ensure every site has a community needs plan,
bringing our total to 100%
Continue rolling out our plan to create 5,000 new
apprentice places across the 5 years to 2020

Enabling low-carbon

economies
Develop and implement our plan for carbon
reduction towards 2020, such as green energy
production and consumption; addressing the
embodied carbon of our projects; and helping
customers reduce their carbon
Continue our focus on transparency and climate
change adaptation under CDP aiming to maintain
our lead of the Industrials sector

Protecting the environment

Tackle our target of sending effectively zero non-

hazardous waste to landfill by the end of 2015


Strengthen relationships with waste removal
providers
Maintain our focus on sourcing FSC timber, and
wider ethical sourcing initiatives

A VIEW FROM DAME JULIA CLEVERDON


In this tough year for business competitive advantage, Carillion
have made some important gains in the long-term
sustainability of the business not just in the UK but in the
Middle East and Canada as well. Visiting the Carillion team in
Canada I was impressed to see, at first hand, both the progress
on sustainability auditing through their supply chain and the
potential for leadership in ensuring quality aboriginal
employment and training opportunities. The acquisition of a
49% interest in the Bouchier Group will give an incredible
opportunity to develop more high-quality employment
practices for the First Nation people.
In the UK, Carillion are increasingly able to illustrate, measure
and monetise the benefits of employee engagement and
community impact, and investors are taking note. Richard
Howsons strategic leadership on the Board of Business in the
Community is driving forward the Business Connector
programme showing the social value of high-powered
business secondees building private, public and community
partnerships in some of the UKs most deprived communities.
The social value for Carillion in pioneering the Community
Needs plans for all major contracts is clear Liverpool,
Battersea and Kings Cross are flagships already delivering
replicable results. Construction and rail businesses are
increasingly able to share the evidence of work winning
through collaborative partnerships with clients impacting on
communities. The target of employing 1% of all army reservists,
announced this year, in partnership with the MOD is both
strategic in attracting talent and builds our reputation as a
values-driven business.
Last year, I applauded our progress towards achieving the
target that the Board should be 25% female by 2015. However
important non-executive directors are as role models, what
has been termed pink parachute silk is not going necessarily
to build the executive pipeline. We need to achieve 29% female
executives by 2020 to achieve our goal so it is encouraging
that as a result of focused internal leadership we have made it
for the first time into the Times Top 50 employers for women.
A critical part of Carillions long-term sustainability will come
from winning the war for talent and skills and progress has
really been made this year!

A critical part of
Carillions long-term
sustainability will
come from winning
the war for talent and
skills and progress
has really been made
this year!
DAME JULIA
CLEVERDON DCVO,
CBE, Vice President
of Business in the
Community and
Special Advisor to
The Princes Charities

A VIEW FROM JONATHON PORRITT


Sustainability is a many-splendoured thing! And todays
sustainability reporting reflects that, getting both more
comprehensive (in overall scope) and more forensic (in its
detail) all the time. Carillions report is a model of its kind,
embracing the full gamut of environmental, social and
governance issues, with constant connectivity back to a core
economic rationale.
As the report says: Sustainability makes us more profitable:
fact. And a 27.2 million contribution to net profit in 2014
makes for a good starting-point for the companys new Board
Committee for Sustainability itself an important and
innovative affirmation of the centrality of sustainability to
Carillions future success.
But theres a lot more than profit that has to be taken into
account when thinking about long-term value creation. Many
companies in the UK are now working hard on the metric of
social value, systematising the diverse ways in which big
companies can support the communities in which theyre
working (Carillion has very nearly reached its target of 100% of
big projects having a Community Needs Plan), their suppliers
(for whom the simple story behind prompt payment matters
enormously), and the local economies they can enrich by
guaranteeing high levels of local spend in Carillions case,
an average of 51% across all projects, and an outstanding 60%
at the Royal Liverpool Hospital.
All of which, and all its core project delivery in the UK and
internationally, has to be done in ways that keep driving down
Carillions overall carbon footprint. The results show how
stretching this can be, especially with its operations in Canada.
Overall, a reduction of 17% in carbon intensity (the amount of
greenhouse gas emitted per million dollars of turnover) is
impressive. But theres a long way to go before these relative
reductions are turned into absolute reductions, as part and
parcel of Carillions ambitious and still crucially important
target of becoming carbon neutral by 2020.
Ambitions of this kind can only be delivered through consistent,
top-down leadership from the Board and the CEO, combined
with opportunities for all Carillions staff, in whatever role, to
play their part in blazing this particular low-carbon trail.

Sustainability is a
many-splendoured
thing! And todays
sustainability
reporting reflects
that, getting both
more comprehensive
(in overall scope) and
more forensic (in its
detail) all the time.
Carillions report is a
model of its kind,
embracing the full
gamut of
environmental, social
and governance
issues, with constant
connectivity back to a
core economic
rationale.
JONATHON PORRITT,
Founder Director of
Forum for the Future

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

OUR 2020 STRATEGY


SUSTAINABILITY IS DRIVING PROFIT

BUILDING A
SUCCESSFUL
BUSINESS

ENGAGING WITH OUR STAKEHOLDERS


BROKER RESEARCH NOTE
STAKEHOLDER PRIORITIES

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report

A structured plan and stretching targets: these are what our stakeholders
expect of us and what drive tangible benefits to our bottom line. Thats
why we launched our vision and strategy in 2011 and our six positive
outcomes to guide our work.

Building a successful

business
We will increase shareholder value through our sector
leadership and focus on profit contribution through
sustainable efficiencies, value creation and waste
elimination.

27.2m

profit contribution
through sustainability
strategy

Leading the way with our

customers and suppliers


We will be recognised as the benchmark in sustainability
and innovation, in turn driving demand as the service
provider of choice for our customers.

Providing better prospects

for our people


We will maximise the prospects of our people by offering
opportunities for continual learning and development, and
create safe, healthy places to work.

Carillion is a member of
the FTSE4Good Index,
which measures the
performance of
companies that meet
globally recognised
corporate responsibility
standards.

Supporting sustainable

communities
Our leadership in creating employment and skills
opportunities, coupled with our understanding of
communities needs, will have a significant and net
positive contribution everywhere we work.

Enabling low-carbon

economies
Our services will help Carillions customers work towards
minimising carbon, so together we become the lowest
carbon producers in our respective sectors.

We are a member of
Business in the
Community (BITC) and
participate in the BITC
Corporate Responsibility
Index, which ranked us a
Four Star company.

Protecting the environment

We will work with our customers and suppliers to be best


in class in reducing waste, managing use of water and raw
materials, and protecting biodiversity wherever we
operate.

The strategy is owned by our Board of Directors and delivered


at all operational levels through tight governance controls. We
set clear targets for each of the outcomes, which we review
annually. Read more in Targets and performance.

Sustainability is driving profit

Our first Materiality


Review gave us some
valuable insights into
the views of key
stakeholders well
build on that to
develop our
understanding and
focus our efforts as a
sustainable, forwardlooking business.
JOHN PLATT,
Strategic Growth
Director

The sustainability initiatives and practices followed across


our businesses made a net contribution to profit of 27.2
million in 2014. Our target is to achieve 40 million by
2020. The target is a personal performance measure,
linked to remuneration, for our Chief Executive and for the
Board. This Key Performance Indicator is reported through
monthly trackers, approved by each Business Unit Finance
Director. It is built through cost efficiencies which include
fuel and travel cost reduction, waste management, lean
operational excellence, contract efficiencies and material
reuse.

The profit
contribution from our
Sustainability 2020
strategy is significant
and growing all the
time, proving that
far from simply being

nice to have
building a sustainable
business is critical for
shareholder value
and long-term
commercial success.
RICHARD ADAM,
Group Finance
Director

VIEW ALL CASE STUDIES

ENGAGING WITH OUR STAKEHOLDERS


At Carillion, our stakeholders include our people, clients,
shareholders and investors, supplier partners, charities,
industry organisations and people living in the communities
where we operate. We use a stakeholder framework to:

understand why engagement is required;


identify relevant stakeholders and impacts; and
decide on forms of engagement and record the
outcomes.
We involve stakeholders in developing and reviewing our
2020 sustainability strategy; in deciding which issues to focus
on; and in sustainability initiatives through the year (see case
studies).

Broker research note


The following summary is taken from a research note
published by Liberum after one of its analysts attended the
launch of last years sustainability report at Battersea
Power Station, where Carillion is building the first phase of
this major redevelopment.

Impressive site visit to Battersea Phase 1


Construction project. Potentially more to come.
Sustainability clearly helped Carillion win the bid.
We also believe that Carillion has had a strong
period of contract news and is gradually moving
up the value chain.
The site visit coincided with the launch of Carillions
sustainability report. It is easy to be cynical about
this. However, having spoken to the customer,
sustainability was very important to the customer,
as it was at the Royal Liverpool.

The new Royal Liverpool Hospital is a Public Private


Partnership Project being delivered by Carillion.

VIEW ALL CASE STUDIES

STAKEHOLDER PRIORITIES
In 2014, we conducted our first materiality review to
understand our stakeholders most significant priorities and
report on what matters to them. The independent review
included workshops, interviews and an international online
survey for employees, clients, governments, investors,
suppliers, community groups and sustainability organisations.
We received 360 responses to our online survey. The majority
(80%) of responses were from employees, and most of these
were based in the UK. We will be looking to diversify this going
forward. Some of the most material issues identified were:

people engagement: people want to hear more about


what were doing, and see even more progress around
diversity, retention and recruitment. Additionally, safety,
health and wellbeing were particularly significant
factors;
building a successful business: our financial
performance clearly matters, and we need to help
people see both the role that they can play and the clear
link to our strategy and reputation;
supply chain: continued progress on our early payment
facility, supplier relationship management and
sustainability upskilling through the Supply Chain
Sustainability School;
waste: making progress on the overall reduction of
waste produced to build on our achievements to date
with diversion from landfill;
skills and local engagement: people want to see the clear
delivery of local solutions for and with local companies
and their communities with a focus on providing
apprenticeships, education, employment and skills;

human rights: we need to remain committed to and


investing in appropriate management processes to
deliver responsible labour, welfare and employment
practices; and
governance and management of sustainability: people
want to understand how our sustainability strategy is
managed throughout the various levels of the business.
The materiality review also included eight in-depth interviews
with key clients across both commercial and public sector
contracts. They told us that:

competence and delivery are critical to building trust,


creating long-term relationships and when selecting
suppliers;
sustainability is important in tenders but price remains
the dominant factor;
Carillions senior team are good at conveying
sustainability, its relevance to clients and sustainability
as business as usual;
we need to challenge our contract partners and clients
to drive sustainability consistently from tender through
to design, delivery and service management.
The Materiality Review was reviewed in depth by our Integrated
Management Strategy (IMS) teams across the business units,
and by Carillions Group Sustainability Committee which then
helped to inform and determine the content of this report, as
well as re-focusing sustainability priorities, targets and
challenges.
Further to the Group process, in 2015 we will be undertaking
focused stakeholder engagement to further understand the
most important issues across our regions, starting with a
materiality review in Canada.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

TARGETS AND PERFORMANCE


EVOLVING PRIORITIES

BUILDING A
SUCCESSFUL
BUSINESS

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk

BENCHMARKING

Communicating performance is key to transparency and we update on


progress in areas that matter to our stakeholders. By celebrating
achievements and understanding where we can do better, we continually
shape our strategy to be even more ambitious.
Our key performance indicators (KPIs) are developed in collaboration with stakeholders as part of
our 2020 sustainability strategy, and data and other information for measurement against our
business unit KPIs is gathered and stored by our Capture system to enable accurate international
tracking and performance analysis.

EVOLVING PRIORITIES

KEY
Target achieved

Halfway through our 2020 strategy, our strategy continues to


evolve. This year, we have modified our targets and results
table to encompass new targets and set others aside where
they have now been achieved. Some original targets have also
evolved to reflect the dynamic nature of conducting our
business (for example, absolute fuel consumption, as detailed
in Enabling lowcarbon economies). Other targets have run
their natural course and are fully embedded and implemented
as policy.

Integrity and
ethics

Behind schedule
Verified by Bureau
Veritas
Verified by other
external party

Building a successful business

About this report

VERIFIED 2014 TARGET

Carillion will contribute 25 million to


profitability through sustainability
actions
READ MORE

LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
27.2
million

32.5
million

40
million
by
2020

Leading the way with our customers and

suppliers

VERIFIED 2014 TARGET

Maintain Level 4 of Sustainable


Procurement Task Force Flexible
Framework and work towards Level 5

LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
Achieved Level 5

Level 5
by 2015

35%

100%
by
2020

READ MORE

10% of suppliers to respond positively


to sourcing materials and products
from responsible and ethical sources

40%

READ MORE

Providing better prospects for our people

VERIFIED 2014 TARGET

39% reduction in All Accident


Frequency Rate (AAFR) against a 2011
baseline

LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
49%

56%

70% by
2020

65%

75%

80% by
2020

14%

22%

50% by
2020

READ MORE

75% of employees feel proud to be


part of Carillion (Great Debate survey)
READ MORE

15% of employees utilise the Carillion


special leave policy for volunteering in
areas where we work
READ MORE

Supporting sustainable communities

VERIFIED 2014 TARGET

45% local spend including small and


medium enterprises (SMEs) in the UK

LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
51%

60%

Maintain
at 60%

87%

90%

95% by
2020

96%

100%

Maintain
at 100%

READ MORE

88% of Carillion apprentices who


complete their framework will have an
employment outcome
READ MORE

100% contracts to have a community


needs plan
READ MORE


1% pre-tax profits donated to
community activities either in cash or
kind

1%

1%

1%

4%

10%

Maintain
at 10%

READ MORE

4% of schools, unemployed and hard


to reach1 groups to develop skills to
enter employment
READ MORE

Enabling low-carbon economies

VERIFIED 2014 TARGET

11% reduction on our carbon


footprint (against a 2011 normalised
baseline)

LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
17%

20%

24% by
2020

11%

20%

20%
reduction
by 2015

24%

20%

20%
reduction
by 2015

96%

100%

Maintain
at 100%

READ MORE

19% reduction in gas consumption


from Carillion offices (against a 2011
degree days normalised baseline)
READ MORE

15% reduction in electricity


consumption from Carillion offices
(against a 2011 baseline)
READ MORE

100% contracts to have a Carbon


Reduction Plan
READ MORE

Protecting the environment

VERIFIED 2014 TARGET

96% waste diverted from landfill

LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
95%

98%
(zero
waste)2

Zero
waste to
landfill

28%

25%

25%
reduction
by 2015

99%

100%

Maintain
at 100%

READ MORE

15% reduction in water consumption


(against a 2012 normalised baseline)3
READ MORE

100% sourced timber will meet


Forest Stewardship Council or
equivalent standards4
READ MORE

1. Hard to reach covers a wide range of groups and are those with real or perceived barriers to
engagement/employment.

2. 2% of our waste is hazardous or non-recyclable therefore a 98% diversion rate is equivalent to


zero waste to landfill.
3. Operational water reduction (using 2012 baseline and normalised by turnover) was 28%. The
Carillion Estate water consumption increased by 12% (using 2012 baseline and normalised by
square footage).
4. Timber performance data from 2013 report as 2014 data not available at time of publication.

BENCHMARKING
We also participate in benchmarking exercises, to understand
our performance against best practice and be the leader in our
industry sector. We are proud to be listed in leading indices,
including the FTSE4Good Index Series and Business in the
Communitys (BITC) Corporate Responsibility Index.

BITC CR Index

2013

2014

2015

Carillion score

96

96

97

All index participants

90

85

91

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

GOVERNANCE AND RISK


MANAGING SUSTAINABILITY

BUILDING A
SUCCESSFUL
BUSINESS

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors

OUR BOARD SUSTAINABILITY COMMITTEE


REMUNERATION
SHAREHOLDER RELATIONS
RISK MANAGEMENT

Effective corporate governance is the basis of how we do business. It


provides confidence in what we are trying to achieve for the shareholders,
customers, partners, suppliers and the communities within which we
work.
Carillion has put in place comprehensive policies, management structures and processes that are
applied rigorously to ensure that the company complies with the requirements of the UK
Corporate Governance Code (September 2012). Furthermore, our Chairman and Company
Secretary conduct a formal and rigorous annual evaluation of the Board, its committees, their
procedures and performance. Read more about corporate governance in our 2014 Annual
Report and Accounts (PDF 5.7 MB).

Our 2020 strategy


Targets and
performance
Governance and
risk
Integrity and
ethics
About this report

MANAGING SUSTAINABILITY
Our sustainability governance ensures our operations, targets
and plans are managed and delivered in a consistent,
responsible and transparent way. Richard Howson, Carillions
Chief Executive, is responsible to the Board for sustainability,
while Chief Sustainability Officer, David Picton, is accountable
for sustainability across the Group. A Board Sustainability
Committee has been introduced, chaired by Dr Ceri Powell, a
Carillion Non-Executive Director, and is now in operation. This
will provide oversight on behalf of the Board for priorities,
targets and challenges material to the Sustainability 2020
Strategy and its management across the Group.
Our Board and Executive leadership teams are also advised by
a Sustainability Advisory Committee, which includes directors
from our business units as well as two independent external
advisors Dame Julia Cleverdon DCVO, CBE (Vice President of
Business in the Community and Special Advisor to The Princes

Connecting
industry and
Parliament
Carillions Chief
Sustainability Officer
David Picton was
appointed Commissioner
to the Industry and
Parliament Trust
Sustainability
Commission in

Charities) and Jonathon Porritt (Founder Director of Forum for


the Future).
Philip Green was appointed to the Carillion Board in June 2011
and was elected Chairman in May 2014. Philip is also Chairman
of both the Nominations and Business Integrity Committees.
Philip was awarded a CBE in the 2014 Queens Birthday
Honours List. He received the award for services to business
and to charity in the UK and South Africa. Philip is the
corporate responsibility advisor to the UK Prime Minister,
David Cameron.
The operational delivery of the Sustainability 2020 strategy is
overseen by the Group Sustainability Committee which
includes our operational Managing Directors, as well as key
functional heads from our corporate teams. The work of these
committees is underpinned by a rigorous set of policies,
procedures and operational tracking processes to deliver
business unit plans, each of which also has a steering group to
track progress against Sustainability Leadership Plan targets.
Our sustainability management systems are fully integrated
across the business. They govern our 2020 strategy, help
provide assurance for clients and suppliers, and support risk
management processes. All our operations in the UK, Middle
East and North Africa are certified to the ISO 14001
international environmental standard, as is Carillion Canadas
Roads Maintenance division in Ontario.

September 2014. The


Commission explores
how business and
governments can work
together to promote
more sustainable
business practices.

CSR Label
Al Futtaim Carillion has
recently been accredited
with the Dubai Chamber
CSR Label award
recognising our
commitment to operating
responsibly.

Chairing the Board


Sustainability
Committee is an
important
opportunity to make
sure that Carillions
award-winning
sustainability
progress to date
remains ambitious
and relevant.
Resilience and
balance will become
ever more
fundamental to
responsible and
forward-thinking
businesses.
DR CERI POWELL,
Carillion NonExecutive Director

BOARD OF DIRECTORS
The Board reviews progress monthly. Richard Howson,
Chief Executive, has Board-level responsibility for
sustainability while Chief Sustainability Officer, David
Picton, has overall accountability for sustainability across
the Group.

SUSTAINABILITY ADVISORY COMMITTEE


The Sustainability Advisory Committee makes
recommendations to the Board. It is made up of
representatives from our business units as well as two

independent external advisors. See Independent Advisor


statements.

BUSINESS LEADERS SUSTAINABILITY


COMMITTEE
The Board also engages with the Business Leaders
Sustainability Committee, which is chaired by the Chief
Sustainability Officer and oversees the delivery of our
2020 sustainability strategy. The Chief Sustainability
Officer implements the strategy via workstreams covering
the six outcomes, interfacing with working groups in each
of the business units.

BUSINESS STEERING GROUP


Each of our businesses also has a steering group to track
progress against Sustainability Leadership Plan targets.

POLICY, PROCEDURES AND MANAGEMENT


SYSTEMS
Sustainability is embedded across the Carillion Group via a
number of policies, procedures and use of our
management systems, which are certified to OHSAS 18001
and ISO 14001. In 2012, we launched Capture, a web-based
data collection system for each contract to report safety
and sustainability progress. See Health and Wellbeing and
Environmental Management.
However, the Board recognises that on their own policies
and procedures are not enough and, in order to achieve
consistently high standards of governance and service
excellence, we have to ensure that our values are at the
heart of everything we do. Our values are helping to shape
the culture, character and beliefs of our business. For
more information on our values visit About us.

Our Board Sustainability Committee


Dr Ceri Powell was appointed to the Carillion Board as a
Non-Executive Director in April 2014. Ceri is a member of
the Audit, Remuneration, Nomination and Business
Integrity Committees and Chair of the Sustainability
Committee. Ceri is also a member of the Advisory Board of
the United Nations Sustainable Energy for All initiative,
chaired by the Secretary General of the UN, Ban Ki-moon.
From 2015, Dr Powell will chair a new Board Committee for
Sustainability, set up to assess strategic issues, the delivery
and future development of Carillions sustainability
outcomes and advising on:

sustainability strategy, values and policies;


annual sustainability report;
annual management report from our sustainability

auditors;
sustainability legislation and regulations; and
engagement with internal and external stakeholders
on sustainability.

VIEW ALL CASE STUDIES

REMUNERATION
In 2014, the Chief Executives objectives included, to lead the
Groups health and safety and sustainability strategies and aim
to deliver continuous improvement in performance.
Our target is to achieve by 2020 a 40 million contribution to
profit as a result of our sustainability programme. It is also one
of our Chief Executives annual bonus targets, sitting alongside
other social, environmental and governance measures to
create a balanced sustainability programme.
Our policy is to ensure that remuneration and other benefits
attract, motivate and retain Executive Directors and senior
managers of the calibre required to achieve the Boards
objectives, including economic responsibility and growth in
shareholder value. Our remuneration policy is derived from
our strategic objectives, which specifically include achieving
leading standards of sustainability, health and safety,
environmental and social performance.
We aim to ensure that pay is fair, consistent and appropriate to
our culture and community. For our full statement and more
details on remuneration, see our 2014 Annual Report and
Accounts (PDF 5.7 MB).

SHAREHOLDER RELATIONS
We welcome and encourage engagement with shareholders.
Our contact details are available on our website. The Board
and senior management team communicate regularly with our
shareholders through:

our Annual Report and Accounts;


our half-year report;
regulatory announcements;
presentations and site visits;
meetings with current and prospective shareholders;
and
our Annual General Meeting.

RISK MANAGEMENT
The Board is ultimately responsible for ensuring that the
Groups risk management systems are suitable for identifying
and evaluating significant sustainability risks. Alongside our
legal obligations and anti-corruption measures, we invest in
integrity with our rigorous business integrity policies and
procedures. Managing social, environmental and ethical risks
is also an integral part of delivering contracts successfully.
We evaluate risk at every stage, from initial thought processes
to assessing how suppliers and subcontractors are likely to
perform through our supply chain management safeguards.
For our people, risk management is practical and structured
but also a reflection of their attitudes. We use the following
processes to manage risk correctly:

independent, external auditors review financial controls


and other business systems to ensure they are
operating effectively;
peer reviews are carried out within each business unit
by teams of impartial representatives from other parts
of the business empowered to ensure compliance with
comprehensive guidelines;
all our people are encouraged to raise genuine concerns
about malpractice at the earliest possible stage,
including a confidential whistleblowing hotline; and
robust anti-bribery and corruption policies. (PDF 95 KB)
See below for our table of sustainability-specific risks.

Building a successful business

SUSTAINABILITY RISK
Reduction in public spending on
construction contracts

MITIGATION
Potential growth in our services business as
governments look to subcontract work to help
deliver cost savings
New business opportunities in sustainable
products and services with new and existing
clients

Difficulties operating in existing or new


overseas regions and markets where
there is potential for political unrest or
change

Employing people with appropriate experience


when tackling new markets and regions
Deploying high-quality project directors in new
regions
Ensuring that key joint venture partner
relationships are managed at the highest level in
Carillion

Carillion employees involved in


allegations of bribery or corruption,
leading to potential prosecution and
damage to reputation

Bribery and governance policies for all senior


management and operational teams, backed up
by specific, targeted training

Volatility affecting price predictions for


the duration of a contract

Hedging against price increases, assessing scope


for risk mitigation or sharing and continuing to
focus on optimising cost efficiencies

Leading the way with our customers and

suppliers
SUSTAINABILITY RISK

MITIGATION

Losing or failing to win contracts as a


result of poor customer service

Winning and retaining contracts through our


proactive service and sustainable products

Reputational damage by association


with a supplier with poor sustainability
performance

Working with suppliers to enhance their


sustainability performance and continuing as a
funding partner to Supply Chain Sustainability
School

The financial stability of our customers,


partners and suppliers

Applying rigorous selectivity criteria in relation to


financial stability, security of project funding and
contractual terms and conditions; provision of
Early Payment Facility

Failure to support local and SME


businesses, resulting in loss of work
with public sector organisations and
lack of diversity in supplier base

Targets set for local and SME spend; SME charter


and support through initiatives such as Supply
Chain Sustainability School

Providing better prospects for our people

SUSTAINABILITY RISK

MITIGATION

Moral, legal and financial risks through


accidents or incidents to our people or
subcontractors

Continue to embed, develop and enforce our best


in class health and safety standards and practices
across our business

Employee dissatisfaction, leading to a


reduction in retention and our ability to
deliver on contracts

Great Debate survey and follow-up actions to


deliver upon feedback given

Risks to health and wellbeing among


our people, affecting their welfare and
ability to perform their roles

Providing opportunities for a better work-life


balance through flexible working and Health Like
Safety campaign

Lack of diversity among employees not


reflecting customer base

Investment in diversity programmes, action plan,


targets and advisory programmes such as
Business in the Communitys Opportunity Now

Lack of compliance with local labour


laws, appropriate welfare and human
rights standards, evolving anti-slavery
legislation and employment practices

Ensure that our HR and procurement policies,


guidance and practices adhere to the
International Labour Organisations core
conventions, align with international ISO
standards and regional laws, and can align with
Carillions values

Recruiting and retaining key people


throughout our businesses

Address key issues arising from employee


engagement; using the Carillion Leadership
Programme as a pipeline for future leadership
talent

Supporting sustainable communities

SUSTAINABILITY RISK

MITIGATION

Reputational damage in the


communities where we work, leading
to a reduction in repeat business

Enhancing our reputation in the community with a


strategic programme of investment in
sustainability and community engagement

Youth unemployment and skills


shortages

Ensuring a future pipeline of skilled individuals


through our education and training programmes,
plus our commitment to national initiatives such
as YourLife in the UK

Safeguarding when working with young


and vulnerable people

Increasing awareness on safeguarding through


training available to employees

Failure to understand our clients and


local community requirements and to
respond to them

Tailoring our community needs plans and


programme delivery to suit the local needs and
appropriate expectations

Enabling low-carbon economies

SUSTAINABILITY RISK

MITIGATION

Trailing behind the market for lowcarbon products and services

Innovate and launch services that deliver financial


and carbon savings to clients

Climate change impacts affecting our


business

Continued commitment to climate change


mitigation and business continuity plans to
mitigate localised regional risks

National carbon targets being set

Continued commitment to carbon reduction and


minimising our footprint

Increase in costs as energy costs


increase

Investigate and invest in appropriate renewable


energy opportunities and other means to
optimise energy security

Protecting the environment

SUSTAINABILITY RISK

MITIGATION

Biodiversity:

Biodiversity:

Failure to comply with local legislation


or contract biodiversity requirements

Waste to landfill:
Financial implications as costs rise
Reputational risk of not taking enough
action to tackle waste

Resource management:
Loss or decline of resources needed for
our business, specifically timber and
water, and consequent price rises

Building mutually beneficial partnerships with


organisations such as The Wildlife Trust to
develop environmental management policies,
backed up by specific, targeted training and
systems for managers and operational teams

Waste to landfill:
Reduce costs by diverting waste and assess
scope to realise value from waste
Increase engagement with key stakeholders and
advisory groups to target an effective zero waste
to landfill and minimise waste overall

Resource management:
Building mutually beneficial partnerships with
organisations such as the Forest Stewardship
Council (FSC-UK)
Investigate and invest in appropriate alternative
resource use

Pollution prevention:
Prosecution for failure to comply with
local legislation

Ethical sourcing:
Purchasing products and materials that
havent been responsibly and ethically
sourced
Lack of waste recycling facilities in
some of our Middle East operations
and geographical dispersal of our
operations in Canada

Pollution prevention:
Environmental management policies, backed up
by specific, targeted training and systems for
managers and operational teams

Ethical sourcing:
Timber strategy and policy through WWF Global
Forest & Trade Network, targets and evidence
for local spend with small and medium
enterprises, alignment to UK Flexible Framework
principles
Investigating opportunities to create the
infrastructure to support our operations in these
areas, or to partner with appropriate specialist
organisations

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

INTEGRITY AND ETHICS


INVESTING IN INTEGRITY

BUILDING A
SUCCESSFUL
BUSINESS

ZERO TOLERANCE APPROACH TO CORRUPTION


WHISTLEBLOWING
FALSE CLAIMS ABOUT BLACKLISTING

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report

A range of policies and procedures mandate that everyone who works at


Carillion does so with high ethical and moral standards.
Our Board also expects suppliers and customers to share this commitment, as outlined in our
Ethics and Business Integrity Policy. An independent committee of the Board, the Business
Integrity Committee, reviews and oversees the implementation of the Groups Ethics and
Business Integrity Policy. It also monitors Carillions compliance with relevant legislation, such as
the Bribery Act 2010 and the Competition Act 2006.
The Business Integrity Policy applies to all Carillions businesses through a series of detailed
procedures. They allow us to maintain our reputation for conducting business to the highest
ethical standards, which are essential to its relationships with customers, business partners, our
people, shareholders and the public.
Our Ethics and Compliance Office provides dedicated support for this work, and our Directors
and senior managers complete annual compliance returns to ensure our approach remains
appropriate.
Carillions Ethics and Business Integrity Response Plan outlines the actions that should be taken in
the event of a suspected policy breach. It ensures investigations are conducted fairly and
decisions are taken by suitable individuals.

Investing in Integrity
Our international operations were awarded the Investing in
Integrity (IiI) Charter Mark following a rigorous
accreditation process involving 3,000 of our people. The
Charter Mark enables us to reassure stakeholders that we
commit to acting with integrity at all times: we are the only
business in our sector to achieve it.
The independent accreditation included site visits,
interviews and surveys carried out by an independent

1,500

hours

training delivered to 330


senior employees in
competition, ethics and
business integrity
policies in 2014

assessor (the Good Corporation), alongside analysis of


ethical policies, procedures and practices.

By signing up to
Investing in Integrity,
Carillion has begun a
journey which will be
challenging and
rewarding. They have
worked hard across
the UK, Middle East
and Canada to gain
accreditation. By
achieving IiI, Carillion
has demonstrated
they are serious
about behaving
ethically.
PHILIPPA FOSTER
BACK CBE, Director,
Institute of Business
Ethics

VIEW ALL CASE STUDIES

ZERO TOLERANCE APPROACH TO


CORRUPTION
We absolutely prohibit bribery or corruption of any kind,
including both the offering and accepting of bribes, through our
Disciplinary Policy. We mandate our people and others to
come forward if they witness or suspect unethical behaviour
that is in potential breach of our policy. Gifts and hospitality and
conflicts of interest must be declared and documented.
We continue to provide our people with face-to-face and online
training on our competition, ethics and business integrity
policies. In 2014 we delivered face-to-face training to over 330
senior employees, as part of a company-wide training rollout.
Carillion has a zero tolerance approach to fraud and
corruption. Internal Audit works alongside independent
managers to investigate allegations and prevent and detect
improper behaviour. Carillions Audit Committee receives
regular updates on all allegations reported, and investigation
outcomes.

RESPECT FOR HUMAN RIGHTS


We believe that human rights are universal and we support the
United Nations Declaration on Human Rights, as laid down in
our Ethics and Business Integrity Policy (PDF 98 KB). Employees
are trained on this policy and we report performance through
the Competition Act training statistics. All suppliers have to sign
up to the policy and monitoring compliance is the
responsibility of our Group Compliance Office.
We work hard to ensure that in all areas of interaction with
employees, clients, suppliers, third parties, interviewees and
joint venture parties, that everyone is protected and treated

Now more than ever,


the public rightly
expects businesses
to behave
responsibly and
openly. For Carillion
people, this is exactly
how we operate
across our
international
operations and this
was key to us
achieving the
Investing in Integrity
Charter Mark.
RICHARD TAPP,
Company Secretary
and Legal

PwC Building
Public Trust
Award
first FTSE company to
retain the FTSE 250
Sustainability Reporting
Award for a second
consecutive year

absolutely fairly. See the Promoting diversity section for more


information.

WHISTLEBLOWING
We actively encourage our people to raise concerns about
fraud, corruption, or any other malpractice at the earliest
possible stage. They can do this by talking to their managers or
through monthly Team Talks and feedback sessions. We also
have a confidential whistleblowing hotline provided by an
independent third party. Details of our approach are in our
Whistleblowing Policy.
In 2014, 210 whistleblowing cases were reported across
Carillion. Of these cases, 122 related to fraud, 59 related to HR
and 29 cases were categorised as other.
As at 31 December 2014, 164 cases have been investigated and
closed, and among these closed cases, 51 resulted in either
disciplinary action taken against our people, the
reimbursement of losses or the implementation of control or
process improvements to prevent or reduce the likelihood of
the impropriety occurring again. The remaining 113 cases were
either unfounded or required no action. As at 31 December
2014, 46 whistleblowing investigations were in progress.

FALSE CLAIMS ABOUT BLACKLISTING


Along with other companies in the construction industry, over
the past few years Carillion has been accused of being
involved in the illegal blacklisting of workers. This is not true.
Blacklisting relates to the use of the Consulting Association
database many years ago by companies in the industry. At
Carillion, we pride ourselves on our strong Values and high
standards of corporate governance and we do not condone or
engage in blacklisting. A former Carillion subsidiary did access
this database but this practice was stopped, voluntarily, over a
decade ago and before it became unlawful. Since then we have
apologised for our use of the database and any damage it may
have caused. To provide an accurate picture we have set up a
section of our website with regards to false claims about
blacklisting.

We apply the same


globally recognised
standards of excellence
to all our operations,
whatever the
jurisdictions. See how we
have done this in Qatar.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

ABOUT THIS REPORT


SCOPE

BUILDING A
SUCCESSFUL
BUSINESS

About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors

GLOBAL REPORTING INITIATIVE


ASSURANCE

This is our 15th sustainability report. It is structured around the six positive
outcomes of our 2020 strategy and aligned to our material issues, as
guided by our stakeholders. This report, alongside our sustainability
strategy and policies, is available on our corporate website.

SCOPE
The report covers Carillions international operations during
the 2014 calendar year, encompassing the UK, Canada, the
Middle East and North Africa (MENA).

Targets and
performance

We have reported on activities and projects undertaken as part


of our various joint ventures, depending on our influence on
their operations and the size of our shareholdings in them.
Where Carillion people are seconded to a joint venture, we
include them in the data but exclude the Joint Ventures
operations.

Governance and
risk

GLOBAL REPORTING INITIATIVE

Integrity and
ethics

This report has been prepared in accordance with the GRIs G4


guidelines at core level, reporting against self-selected
indicators based on material aspects.

Our 2020 strategy

About this report

See our GRI Index. (PDF 224 KB)

ASSURANCE
Bureau Veritas, an independent professional services and
compliance specialist, has assured our performance against
specific sustainability targets, factual statements and

We welcome your
feedback on this report
and our approach to
sustainability. If you have
any comments or
questions please contact
us

Carillions 2013
sustainability report
demonstrated that
sustainability is an
integral part of its
core business and
the company wants
to communicate the
issues in an open and
accessible way. The
report demonstrates
a clear understanding
of the sustainability
impacts of the
business and how
this links to future
viability of the Group,
especially around
resource usage. In
addition, Carillion
demonstrated some
interesting and
innovative ways of
presenting

performance data related to the targets within the content of


this report. See the assurance statement below.

BUREAU VERITAS INDEPENDENT


VERIFICATION STATEMENT
To the stakeholders of Carillion plc.

INTRODUCTION AND OBJECTIVES


Bureau Veritas has provided independent verification over the
stated achievement of a selection of Carillion plcs (Carillion)
2014 sustainability targets against a 2011 baseline, as reported
in its 2014 Sustainability Report (the Report), the methodology
and approach for gathering carbon footprint data. The
objective of our work is to assurance to Carillions
stakeholders over the level of achievement of the selected
targets and of the reliability and accuracy of the supporting
performance data.

SCOPE AND METHODOLOGY


The information and data reviewed for this verification process
cover the reporting period: 01 January 2014 31 December
2014, and all the Carillion businesses across the UK, Middle
East and Canada.
In order to form its conclusions, Bureau Veritas conducted the
activities outlined below:

Phone interviews with key Carillion personnel (Head


Office and Regional Staff);
Review of data management and data accuracy through
interrogation of spreadsheets and sampling of select
datasets;
Review of supporting documentation (including: policies,
procedures, minutes of meetings, email
correspondence, presentations, invoices);
Review of consolidated site and business unit
sustainability data sets.
Carillions sustainability targets and their stated level of
achievement, as subject to the verification, are presented in the
table below.

Leading the way with our

customers and suppliers


WHAT CARILLION SAID

2014

Maintain Level 4 of Sustainable Procurement


Task Force Flexible Framework and work
towards Level 5

Achieved

information and
engaging
stakeholders, such as
their 2020
Sustainability Vision
brochure and the
Sustainability Talk &
News initiative.
ALAN MCGILL,
Partner, Sustainability
and Climate Change,
PwC

Providing better prospects

for our people


WHAT CARILLION SAID

2014

39% reduction in All Accident Frequency


Rate (AAFR) against a 2011 baseline

49%

Supporting sustainable

communities
WHAT CARILLION SAID

2014

45% local spend including SMEs in the UK

51%

100% of contracts to have a community


needs plan

96%

1% of pre-tax profits donated to community


activities either in cash or kind

1%

Enabling low-carbon

economies
WHAT CARILLION SAID

2014

11% reduction in carbon footprint (against a


2011 normalised baseline)

17%

19% reduction in gas consumption from


Carillion offices (against a 2011 degree days
normalised baseline)

11%

15% reduction in electricity consumption


from Carillion offices (against a 2011
baseline)

25%

Protecting the environment

WHAT CARILLION SAID

2014

96% of waste diverted from landfill

95%

15% reduction in water consumption (against


a 2012 normalised baseline)

28%

BUREAU VERITAS OPINION

It is Bureau Veritas opinion, based on the verification activities


as per the scope and methodology above, that the stated level
of achievement reported by Carillion against the selected
targets is a fair reflection of its performance.
Nothing came to Bureau Veritas attention that would indicate
any material error or omission in the information reported, that
would affect stakeholders ability to make informed judgments
on Carillions performance in 2014.

LIMITATION AND EXCLUSIONS


The preparation of the Report is the sole responsibility of
Carillion. The verifier has an obligation to stakeholders and
users of the report and is exclusively responsible for the
content of this verification statement. Carillion has provided
access to the documentation and data required to undertake
the verification process and Bureau Veritas is confident that no
material information has been withheld.
Excluded from the scope of our work is:

Any information not directly linked to the selected


targets;
Activities outside the defined reporting period;
Company strategy and position statements (including
any expression of opinion, belief, aspiration,
expectation or aim);
Financial data which is taken from Carillions Annual
Report and Accounts.
A limited sample of site specific source data and records were
reviewed as part of this assessment.
This independent statement should not be relied upon to detect
errors, omissions or misstatements that may exist within
Carillions reported information. The scope of our work was
defined and agreed in consultation with Carillion. Our work
covers global operations and relies upon the accurate collation
of information at Carillions worldwide locations and its UK
offices.

STATEMENT OF INDEPENDENCE
Bureau Veritas is an independent professional services
company that specialises in quality, health, safety, social and
environmental management advice and compliance with over
180 years history in providing independent verification and
assurance services. Bureau Veritas has implemented a code of
ethics across its business which ensures that all our staff
members maintain high standards of integrity and
independence. We believe our verification assignment did not
raise any conflicts of interest. Our team completing the work
has extensive knowledge and experience of conducting
verification over sustainability information and systems.
London, 18th of March 2015

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

Carillion is

the way with our customers and suppliers

Effective and innovative


collaboration
LEADING THE WAY
WITH OUR
CUSTOMERS AND
SUPPLIERS

Customer
experience
Sustainable
innovation

We work together with customers and suppliers to find


mutually beneficial and dynamic solutions, which will help
us to win repeat business and gain new clients based on
our proven delivery credentials.

Sustainability in action
Prompt payment

Supply chain
management

977.6M IN EARLY SUPPLIER PAYMENTS


IN 2014

Collaborating with
suppliers

Engaging and collaborating


with the industry supply
chain
Launching our Small
Business Charter
We are currently exceeding the UK
Governments goal of 25% SME spend for
government contracts with 27% of our
spend going to SMEs. In 2014, we
launched a charter to engage 3,700 small

FUNDING PARTNER OF THE SUPPLY


CHAIN SUSTAINABILITY SCHOOL

Our hospital is one of the


best for cleanliness
CLEANLINESS AND FOOD
IMPROVEMENT RECOGNISED AT
DARENT VALLEY

and medium suppliers.

Sustainable timber

READ MORE

100% RESPONSIBLE TIMBER POLICY


WITH WWF

Our key figures


2014 performance highlights

+37

Net Promoter Score


measuring customer
satisfaction
2013: +33

6,783

international suppliers
accredited to MyRegister
2013: 6,442

Progress against targets

35%

of suppliers responded
positively to sourcing
materials from ethical
sources
Targets

2014: 10%

2020: 100%

Target achieved
VIEW OUR FULL PERFORMANCE AGAINST TARGETS

Level 4

of the Sustainable
Procurement Task Force
Flexible Framework
maintained
Targets

2014: Achieved
2015: Level 5

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

CUSTOMER EXPERIENCE
OUR HOSPITAL IS ONE OF THE BEST FOR CLEANLINESS

LEADING THE WAY


WITH OUR
CUSTOMERS AND
SUPPLIERS

Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers

FACILITIES MANAGEMENT SUPPLIER OF THE YEAR


CLIENTCONTRACTOR AWARDS
HIGHWAYS AGENCY UNVEILS TOP SUPPLIERS

Listening to, speaking with and investing in clients is a priority. Exceeding


customer expectations is the best way to win new and repeat business.
To help drive our customer strategy, we joined the Institute of Customer Service (ICS) in 2014 a
forum that shares ideas and initiatives to improve customer service experience in the UK. We
went on to support the ICS in establishing an all-party Parliamentary group on customer service
and attended the inaugural meeting in the Houses of Parliament.
We measure satisfaction through the Net Promoter Score (NPS). This international standard
allows us to measure customer satisfaction and benchmark performance against other
organisations, based on how likely customers are to recommend Carillions services. NPS scores
range from 100 to +100. Carillion scored +37 in 2014 (up from +33 in 2013), comparing very
favourably with other companies in our market sectors and giving us first-hand feedback and
information to continue improving the services we provide for our customers.
Our Sheffield-based Customer Experience Centre is a centre of excellence. It provides a wide
range of contact and administration services for customers and internal teams including facilities
management and support helpdesks and international safety reporting.

Our hospital is one of the best for


cleanliness
Patients have rated Darent Valley Hospital as among the
best in England for cleanliness. Recent results from the
annual Patient-Led Assessments of the Care Environment
reflect how the environment at the hospital supports
patient privacy and dignity.
Cleanliness, food and building condition are now above the
national average, with scores for cleanliness in the upper
quartile for England. Food provision as also commended
since the Carillion team introduced fresh soup, improved

+37

Net Promoter Score


(2013: +33)

1m

calls, emails, SMS and


social media contacts
taken by our Customer
Experience Centre each
year

the presentation and quality of sandwiches and salads and


amended the ordering system so that more patients were
able to receive their first-choice meal.

VIEW ALL CASE STUDIES

FACILITIES MANAGEMENT SUPPLIER OF


THE YEAR
In 2014, we won the Facilities Management Service Provider of
the Year at the British Institute of Facilities Management
Awards, in recognition of the outstanding service delivery and
excellence provided on our long-standing contract with
Centrica and British Gas.
Since 2002, we have worked extremely hard to build a true
partnership and introduced a business model specifically
tailored to the client, ensuring we meet the needs of their
people and the environment. The award acknowledged
Carillions training, customer service and implementation of an
effective single Facilities Team. The team unites 600
individuals from seven supplier organisations and is driven by
shared behaviours, values and commitments to benefit
Centrica and British Gas.

Clientcontractor awards
Carillion Alawi was named Contractor of the Year at the
Construction Week Oman Awards 2014 in the Grand Hyatt
Muscat. The award recognised Carillions ability to deliver
projects within tight timescales, while maintaining a zero
tolerance approach to accidents. It has also managed to
maintain a steady growth despite challenging markets in
recent years.
In the UK, the Library of Birmingham was named
Construction News Project of the Year (over 50 million).
Judges praised clientcontractor collaboration through the
six-year project. The library was also shortlisted by RIBA
Chartered Architects for the prestigious RIBA Sterling Prize

The improved results


have been achieved
through hard work by
both the Trust and
ourselves providing
the facilities
management
services. We are
extremely happy with
these results and this
is testament to the
partnership approach
that we have with
Carillion.
CHRIS FORSTER,
Director of Estates
and Facilities, Darent
Valley Hospital

11.6m/
95,000t of
CO2

saved for our customer


the Ministry of Defence,
over the last three years

Bouchier Carillion has


the right attitude to
take risks and make it
win-win. We have
work that needs to be
done and they have a
workforce that can
do it. They
understand what the
client wants and they
try to execute it to the
best of their abilities
to make sure were
happy. Its mutual
they do work, we pay
them fair value. But
its an open
relationship and very
transparent. We only
succeed with both of
us.
CHAD BEATON,

for the best building in the UK.

VIEW ALL CASE STUDIES

Highways Agency unveils top


suppliers
The Highways Agency announced Carillion as winners of
the Customer Experience Award as part of its Supplier
Recognition Scheme. The award recognised our work to
involve the local community during the A23 Handcross to
Warninglid scheme.
We also received the Supply Chain Management Award as
part of a Collaborative Procurement Working Group by
implementing effective strategies through the supply chain
to avoid road-user delays.

VIEW ALL CASE STUDIES

Manager, Facilities
and Services,
Canadian Natural
Resources Limited

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

SUSTAINABLE INNOVATION
IMPROVING LIVES AND SAVING CARBON WITH ECOPODS

LEADING THE WAY


WITH OUR
CUSTOMERS AND
SUPPLIERS

Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers

STRENGTHENING SOLAR ENERGY IN THE MIDDLE EAST


MOD PROJECT SAVES 11.6 MILLION

Our people are continually looking for ways in which we can do things
differently and create even more benefits for customers, communities and
the environment.
Our Sustainability Investment Fund has helped to support this thinking across the company,
providing up to 120,000 for research, innovation or implementation in a variety of projects.
Funds are awarded to support the delivery of one or more of our six positive outcomes, and we
look for proposals that could improve our work or even develop new products and services. For
example, in 2014, our construction services applied for funding to reduce waste by upgrading
machinery and purchasing materials to develop a recycling area.
See Sustainable design for examples of how we are integrating innovative ideas and practices
from the outset of our construction work.

Improving lives and saving carbon


with EcoPods
Carillions EcoPod technology is already reducing energy
costs and cutting carbon emissions in more than 40 highrise buildings across the UK.
EcoPod is a Smart energy and controls system for multioccupancy buildings that provides highly efficient, safe and
controllable heating and hot water for building owners,
operators and occupiers.

The creation of the EcoPod Technology Centre puts


Carillion at the forefront of energy-efficiency
innovation. We will test installations at our test
centre which will also support the creation of new
jobs in research and development, renewable
energy systems and building automation.

We are very pleased


to continue our
support for NHS
Sustainability Day.
Sustainability has
become an
increasingly
important part of all
aspects of Carillions
business activities.
We are delighted to
have the opportunity
to share our

PHIL SHEPLEY, Managing Director of Corporate


and Central Government Services, Carillion
Services

experiences and to
learn from others
through the NHS
Sustainability Day
programme of
events.
NUALA GILMARTIN,
Business
Development,
Carillion Health
See NHS Sustainability
Day in action

VIEW ALL CASE STUDIES

Strengthening solar energy in the


Middle East
We are installing a Concentrated Solar Power (CSP)
technology power plant in Dubai and the wider Middle East
region for Dubai Electricity and Water Authority. This trial
project will be used as a learning tool for larger-scale
deployment of CSP installations in Dubai to help strengthen
the local solar industry. This is an important step for the
solar energy sector and to encourage environmental
sustainability by using renewable energy.
We have also been testing recycled PVC plywood in place
of traditional plywood for shuttering on one of our projects
in Dubai where we have demonstrated that it saves time
and money, and can be 100% recycled. On the same
project, the team also hired a concrete crusher to produce
approximately 7,000m3 of aggregate for use on other
project areas, reducing additional virgin material costs.

Manchester and
Birmingham
energy savers
A partnership between
Carillion and Birmingham
City Council will see 24
EcoPods installed across
the city. The significant
energy savings, together
with Energy Company
Obligation funding, will
help fund the project.
The first phase of six
EcoPods was completed
late in 2014, comprising
350 homes and saving a
total of 17,000 tonnes of
CO2 over the lifetime of
the system. 2015 will see
a further 16 EcoPods
serving a further 644
homes and saving
50,000 tonnes of
carbon.
VIEW ALL CASE
STUDIES

140,000
and 12,500t
CO2 savings
at the Four Seasons
Hotel project in Abu

VIEW ALL CASE STUDIES

MoD project saves 11.6 million


Over the last three years, our work in the Regional Prime
Central contract has achieved excellent, long-term
sustainability results with savings of 11.6 million and
95,000 tonnes of CO2.
The works were aimed at introducing new technology and
driving down energy consumption and carbon levels on all
major sites. We also focused on upgrading the
infrastructure to harness, manage and optimise fuels and
carbon emissions across the estate.
The CarillionAmey Joint Venture responsible for the
contract was named Sustainable Business of the Year at the
MOD Sanctuary Awards in 2014 and has also won a
number of major industry awards for its work.
Meanwhile, in the National Housing Prime Contract, the
CarillionAmey team worked with the client to secure
energy company funding for energy improvements and
technologies across service family accommodation. As a
result, the standard of accommodation has been improved
and, in many cases, reduced fuel costs for our forces
personnel and their families.

VIEW ALL CASE STUDIES

Dhabi thanks to our


engineers replacing
ordinary cement with a
concrete with smaller
manufacturing carbon
embodiment

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

SUPPLY CHAIN MANAGEMENT


MYREGISTER SUPPLIER ACCREDITATION SYSTEM

LEADING THE WAY


WITH OUR
CUSTOMERS AND
SUPPLIERS

Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers

SUSTAINABLE PROCUREMENT STEERING GROUP


PROMPT SUPPLIER PAYMENT
UK CONTRACTORS GROUP
TRAINING OUR SUPPLY CHAIN MANAGERS
CARILLION IN QATAR

Our supplier relationship management aims to build a two-way


relationship that supports and encourages supplier business, helps us to
deliver our client operations and expects the same standards of
responsibility as we set for ourselves.

MYREGISTER SUPPLIER ACCREDITATION


SYSTEM
We set best-in-class standards for health, safety and working
conditions wherever we work. We also set high standards of
corporate governance, and our supplier partners are assessed
against commercial, health and safety, quality and sustainability
indicators. MyRegister, our supplier accreditation system,
captures information on capability from all our suppliers,
assessing against health, safety, quality and sustainability
indicators. Based on their responses to the My Register
questions, suppliers are graded from A to D with A being the
highest. This assessment informs our purchasing decisions,
ensuring that the most capable supplier is selected for a given
project. We also use this information to actively engage with
our supply chain, sharing knowledge and encouraging
development of their capability as appropriate.
We have 6,783 accredited suppliers internationally, with the top
10% achieving an A grade in 2014. Working with the Supply
Chain Sustainability School we are actively encouraging our
suppliers to undertake further training. This should in turn
improve the quality of responses to the MyRegister question
set and therefore enhance the overall sustainability capability

977.6m
paid to 396 suppliers

6,783

accredited suppliers
internationally against
commercial, health and
safety, quality and
sustainability indicators

100%

of supply chain teams


completed the ethics
module of the Chartered
Institute of Procurement
and Supply

of our supply chain.


We manage our preferred supplier list through categories of
supplier, which strengthens our relationships, innovation and
development of supplier sustainability credentials. By sharing
information about future business demand, we can also help
our suppliers to plan and grow in line with forecasted work.
We also regularly audit and measure supplier performance
using our Supplier Performance Improvement tool. This
enables us to manage category-specific sustainability risk
assessments, helping us to understand and mitigate risks for
that category. The average supplier sustainability score from
the many thousands of reviews carried out in 2014 was 69%,
down from 71% in 2013.

SUSTAINABLE PROCUREMENT STEERING


GROUP
This is made up of senior representatives from across our
business units, who work to develop and govern best-practice
approaches to supply chain sustainability. A key objective is to
assess suppliers against ethical sourcing standards, with the
aim of achieving 100% compliance by 2020. The steering
group also oversees our Ethical Sourcing Plan, Timber
Procurement Policy, SME spend ratios and Sustainability
School relationships.

PROMPT SUPPLIER PAYMENT


396 Carillion suppliers (150 SMEs) are now using our Early
Payment Facility (EPF) and we paid nearly 977.6 million in
2014. The EPF allows suppliers to access early payment in
advance of their agreed terms at no additional cost, which
improves their cash flow. We plan to further expand this facility
in 2015, with a target to pay 1 billion through this mechanism,
equivalent to almost 50% of our UK supplier spend.

UK CONTRACTORS GROUP
We are members of the UK Contractors Group. Membership
commits around 30 companies to work with their supply chain
to reduce waste and greenhouse gas emissions.
We support the Governments construction industry strategy
(Construction 2025) for greater resource efficiency and a 50%
reduction in greenhouse gas emissions in the built
environment by 2025. It supports a number of WRAP Built
Environment Commitments to take actions through the supply
chain that contribute to a lower-carbon, resource-efficient built
environment.

Procurement
Pledge
Carillion signed the
Governments
Procurement Pledge

TRAINING OUR SUPPLY CHAIN


MANAGERS
Our internal Supply Chain Academy has delivered its most
successful training year to date with more than 3,000 hours
completed by our supplier teams, the equivalent to four days
per person. More than 30 courses are available, including Data
Gathering and Market Analysis, Customer Service Skills, IOSH
and NEBOSH qualifications and Women in Leadership.

Carillion in Qatar
Carillion sets best-in-class standards for our peoples
health, safety, human rights and working conditions
wherever we work. We also set high standards of
corporate governance, supported by policies and
procedures that are applied rigorously across our
business. These are not just standards we set for the
benefit of those we employ directly, but also standards
from which our supply chains people should benefit.
In regions such as the Middle East, where we have operated
for over 40 years, we make strenuous efforts to ensure
that our supply chain aligns with ISO standards, as well as
local laws. We make it clear to all our subcontractors that
they must comply with Carillion health and safety standards
on our sites the same as those applied in the UK. In
addition, we require our subcontractors to comply with the
requirements set within Qatar Labour Law in respect of
payment of wages, living conditions and employment
rights.
We work closely with our suppliers, and where we identify
inappropriate practices or subcontractors/sub-suppliers
not meeting our standards we will work with them to help
them improve. If they are either not prepared or unable to
do this, we will engage alternative suppliers who are able to
do so.
In Qatar, Carillion is contracted to deliver phase 1B of the
Downtown Doha project, a mixed-use development
comprising retail, commercial, residential, leisure, cultural
and community facilities. Our work on this scheme has won
a key industry Sustainability Project of the Year Award.
While this was principally in recognition of our
achievements in minimising environmental impact, it also
reflects Carillions leading role as a responsible contractor
and employer in the region.
You can find out more about our standards and practices in
Qatar in this section of our corporate website.
VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

COLLABORATING WITH SUPPLIERS


SUPPLY CHAIN SUSTAINABILITY SCHOOL

LEADING THE WAY


WITH OUR
CUSTOMERS AND
SUPPLIERS

Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers

LOCAL SOURCING AND SUPPORTING SMES


MEETING LOCAL SME SUPPLIERS
SUSTAINABLE TIMBER

With an international supplier spend of around 3 billion, we can make a


tangible positive impact on sustainability alongside our supply chain
partners.
Our Sustainable Supplier Charter ensures our commitment to sustainable procurement is
embedded in supplier management, applying the principles of the UK Chartered Institute of
Purchasing and Supplys (CIPS) Policy on Purchasing Ethics and the Canadian Institute for Supply
Management (CISM) principles.
We put our efforts into building relationships with local businesses that share our values. For
example, in the Middle East, we have trained 350 subcontractors in estidama (sustainability)
workshops to factor sustainability into project planning and tenders.

SUPPLY CHAIN SUSTAINABILITY SCHOOL


We are a Funding Partner of the Supply Chain Sustainability
School the award-winning collaboration initiative designed to
offer free skills, training and action plans to suppliers across
the full built environment. The School is an online virtual
learning facility, and one of the most successful sustainability
education initiatives in the history of the built environment.
David Picton, our CSO, has been a member of the Leadership
Council since 2013, and the School has made exceptional
progress in upskilling supply chain companies and people.
Throughout 2014, we also chaired the expansion of the School
beyond its original coverage of just the construction sectors,
branching out to include Facilities Management (FM) and
Services. More than eight months of hard work came to
fruition at the end of the year having managed to secure partfunding from the UK Commission for Employment and Skills
with the public launch of the expanded FM and Services arm of
the School.

Ethical
Supplier
Collaboration
Award
For Carillion Services
contribution to
Nationwides supply
chain

In the fields of sustainability, theres little chance of achieving


progress without collaboration and the School offers:

best-practice resources to help FM suppliers and subcontractors develop their sustainability knowledge and
competence;
self-assessed action plans to demonstrate
benchmarking, and routes of progress towards greater
skills;
e-learning modules, plus unique management systems
to track progress;
opportunities for involvement at supplier development
days and sustainability workshops; and
access and input to other groups, events and initiatives
within the wider Supply Chain Sustainability School
(including groups focused on construction,
infrastructure and research).
We ran our first Supplier Day with the School at Liverpool in
April 2014, linked to our operations to build the Royal
Liverpool University Hospital, with just over 110 delegates
attending from 90 different companies. We covered
perspectives from Carillion, from other partners in the School,
from suppliers and from the Business in the Community
regional teams who we work with to engage local communities
and develop social value for the region.
We are also members of the Schools Horizon Group
comprising industry main contractors and partner universities
specialising in the built environment. The group aims to
improve the supply chains capability to deliver a sustainable
built environment through collaborative research, and we are
driving the first significant project to review ethical sourcing
competence, knowledge and skills among the supplier base.
Watch the video.

LOCAL SOURCING AND SUPPORTING


SMES
We aimed to place 45% of our UK supplier spend with local
business last year, and we exceeded that to achieve 51%.
Working with smaller local businesses has generated
employment, boosted local economies and helped us to
engage with the communities in which we work.
We have also exceeded the UK Governments goal of directing
25% of spend towards SMEs for government contracts, with
our current SME spend at 27%.
Our Small Business Charter was launched in 2014, showing
how working with our 3,700 accredited SME businesses will
support the UK economy and what our suppliers can expect
when working with us, including access to our Early Payment

We are working hard


to extend our
sustainability values
across our supply
chain in the Middle
East, with a particular
focus on the
standards we expect
in health, safety and
welfare for
everybody that is
working on our
contracts. This is a
real challenge but
one that we are
determined to deliver
upon.
ANDY JONES,
Managing Director,
Middle East and
North Africa

750 lorry
movements
and 45t of CO2 saved on
the Battersea Power
Station Phase 1 contract,
by collaborating with our
supplier Groundworks to
remove waste by barge

Funding
Partner
for the Supply Chain
Sustainability School

51%

of supplier spend to local


businesses (target: 45%)

Facility.

Meeting local SME suppliers

3,700
SME suppliers

Carillion held a business event for companies to discuss


local opportunities and benefit from the Finningley and
Rossington Regeneration Route Scheme. In partnership
with Doncaster Council, a meet the buyer day allowed
businesses to scope requirements with the Carillion buying
team and find out about planned developments.

This is a wonderful business development


opportunity for Doncaster firms and a great chance
for them to network with some of the biggest firms
in the country. By meeting these decision makers it
could open doors to new work, jobs and growth;
ensuring the borough and our economy benefit at
every opportunity.
ROS JONES, Mayor of Doncaster
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Sustainable timber
Carillion has become one of the first British businesses to
sign up to WWF-UKs new forest campaign. The pledge
commits companies to responsible forest trade and 100%
sustainable timber and wood products by 2020, and we
will continue to work with suppliers to develop our Timber
Procurement Policy. In Oman, Carillions joinery workshop
was the first in the country to have Forestry Stewardship
Council (FSC) chain of custody certification, providing
assurance on responsible sourcing of timber products.

Illegal and unsustainable logging contributes to


deforestation and degradation across the worlds
most important international forest regions. We
will continue to direct concerted efforts at
understanding and tracking the sourcing of all our
forest and wood products in line with the WWF
pledge.
DAVID PICTON, Chief Sustainability Officer,
Carillion

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Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

Carillion is providing
better prospects for our

Bringing out the best in our


people
PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE

Safety
performance

Our 42,000 people come to work at Carillion to apply


their talents in a safe and inclusive work environment. We
continue to invest in developing and attracting excellent
people to create a vibrant, diverse and flexible workforce.

Sustainability in action

Health and
wellbeing

Aboriginal relations

Recruiting,
retaining and
engaging
excellent people

FIRST NATION INITIATIVES IN CANADA


ARE VITAL TO LONG-TERM DIVERSITY

Your Life campaign and


STEM subjects for girls

Promoting
diversity
Performance data

Employing ex-offenders

Business has a huge opportunity and


responsibility to make the
workplace more accessible to
talented ex-offenders who simply
want to contribute their skills to
society.
CATHERINE SERMON, Employment

SHOWCASING CAREER CHOICES TO


YOUNG WOMEN IN EDUCATION

Supporting the armed forces


CREATING OPPORTUNITIES FOR EXFORCES PERSONNEL AND RESERVISTS

Director, Business in the


Community
READ MORE

Our key figures


2014 performance highlights

28%

women on our Board


2013: 25%

23%

of our people are female


2013: 23%

Progress against targets

49%

reduction in All
Accident Frequency Rate
Targets

2014: 39%

2020: 70%

14%

of our people use the


Carillion special leave
policy for community
engagement
Targets

2014: 15%

Target achieved

Behind schedule

VIEW OUR FULL PERFORMANCE AGAINST TARGETS

2020: 50%

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

SAFETY PERFORMANCE
MANAGING AND IMPROVING PERFORMANCE

PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE

Safety
performance
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data

CARIBBEAN, ALAWI AND CANADA SAFETY


LOOKING AHEAD

Our target is zero. Zero accidents, zero incidents. We do everything we


can to remove the risk of accidents from our business.
However, when an accident does occur, we investigate the root causes fully and make changes to
processes to ensure it does not happen again. We share our findings and take concrete actions
to improve and we constantly measure our progress to improve performance and adopt best
practice.
In 2014, we launched ONE, a health and safety campaign based around one team with one goal:
zero ill health and accidents caused by work. We know that one accident is one too many, so we
keep up momentum towards our target.

Lost Time
Incident
Frequency Rate

0.24

All Accident
Frequency Rate

2.31

(2013: 2.81)

(2013: 0.29)

Our performance data

LOST TIME INCIDENT FREQUENCY RATE


ALL ACCIDENT FREQUENCY RATE

We are transparent about our health and safety performance,


both when things go right and also, crucially, when they do not.
We deeply regret that we suffered two fatal accidents in Oman
and Qatar in 2014. In the first, a person fell several metres
when he stood on an unfixed panel he had just placed into
position and it tipped. In the second, a subcontractors
employee was struck by a vehicle while crossing a highway as
part of a maintenance activity.

Safety award
Our excellent safety
record in Canada was
recognised with a Safest
Employer Silver Award at
the Canadian
Occupational Safety
Awards. The national
awards programme
recognises Canadian
companies that are
making a difference in
protecting the health and
safety of their people,
through initiatives such

In addition to these accidents, a vehicle carrying five workers


collided with a broken-down vehicle on the M4 in England.
Two of the passengers died instantly and a third died later in
hospital. A fourth passenger was seriously injured.
Our thoughts remain with the relatives and friends of the
people affected by these tragic incidents.

MANAGING AND IMPROVING


PERFORMANCE
We are certified to the BS OHSAS 18001 standard for health and
safety management systems across our operations in the UK,
the Middle East and North Africa. Meanwhile, every contract is
assessed for health and safety risks, from design and delivery
to final use. Senior managers regularly visit contracts to review
health and safety.
We make sure that everyone understands our health and safety
policy (PDF 816 KB). This is done through communications
campaigns and formal training. In the UK and Canada we have
a dedicated phone number for reporting any incident or near
miss.
We have a range of risk evaluation processes from design
through delivery and right up to Point of Work Risk
Assessments. These address risks to both the health and
safety of our people and those working for us through our
supply chain.

CEO Health and Safety Best Practice Award to Qatar FM Shell

Caribbean, Alawi and Canada Safety


Carillion Caribbean has been recognised by its client Massy
Wood Group for its contribution to reaching two million
work hours with no Lost Time Incidents, while in Oman,
Carillion Alawi received a Platinum Target Zero Award for
four years without a Lost Time Incident.

as our Dont Walk By


programme.
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STUDIES

49%

reduction

in All Accident Frequency


Rate
(2011 baseline)

BS OHSAS
18001
standard for health and
safety management
systems for the UK,
Middle East and North
Africa

Winner
Royal Society for the
Prevention of Accidents
Occupational Health and
Safety Award, Carillion
Training Services

In Canada, the construction crew at the Toronto Union


Station Revitalisation project reached one million hours of
work with no Lost Time Incidents and Bouchier Group,
partowned by Carillion, received a Platinum Target Zero
Award for reaching over six million hours without a Lost
Time Incident.

CEO Safety Excellence Winner: The Bouchier Carillion


Group
VIEW ALL CASE STUDIES

Our ARK performance model assessment allows us to evaluate


our systems and behaviours against our vision of excellence. It
measures performance in three key areas:

PEOPLE, including leadership, engagement, culture,


competence, supply chain, health and wellbeing;
PROCESS, including governance, compliance and
continuous improvement; and
PERFORMANCE, including health and safety
performance against key performance indicators.
We use ARK to benchmark current performance in a particular
part of the business and to set targets and plans for
improvement.

Mike Francis, winner of our CEO Health and Safety People

Award

LOOKING AHEAD
In 2015, in addition to continuing our focus on our key risks
such as work at height, electricity and moving vehicles and
plant, we will be focusing on reviewing and improving safety
when our people are driving or travelling on the road.
In Canada, for example, we will be working with the Ontario
Ministry of Transportation to improve winter lighting on heavy
maintenance equipment and testing prototypes to inform a
potential new standard.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

HEALTH AND WELLBEING

PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE

Safety
performance

Looking after our people and contractors is not just a moral obligation, it
makes clear business sense. Our people being well and healthy is vital to
our success.
In 2014, we launched our new Occupational Health strategy, Health Like Safety, which aims to
raise the status of health as a key component of our overall objectives and strategy. Health Like
Safety includes a dedicated health plan and health champion at all locations in order to:

Health and
wellbeing

ensure safety-critical workers are fit for work;

Recruiting,
retaining and
engaging
excellent people

promote wellbeing and healthy lifestyles while recognising that this remains a matter of
personal choice; and

prevent work-related cancers and other chronic health conditions caused or made
worse by work;

optimise our approach to dealing with sudden cardiac arrest in the workplace.

Promoting
diversity

38%

Performance data

of our people reported


an increase in
productivity as a result of
the Global Corporate
Challenge health initiative

62%

weight loss reported by


our people in the Global
Corporate Challenge

Health Like Safety at the Thameslink Programme team


In 2014, Carillion joined the Global Corporate Challenge, a
corporate health and wellbeing initiative aimed at increasing
physical activity and establishing sustainable habits for
sedentary workers. Highlights include:

62% reported a weight loss, with an average of more


than 9lbs;
65% reported a decrease in stress levels;

38% reported an increase in productivity;


85% reported their health as good, very good or
excellent compared with 42% pre-event; and
57% reported that the event had encouraged their
friends and family to get out walking more.
In 2015, we are launching a Stress and Mental Health Charter.
This will be accompanied by tools and a training module to
reduce work-related stress and promote positive mental
wellbeing.

Our health and wellbeing programmes


include:

Employee assistance
Employee assistance, offering
services such as free education
advice, childcare guidance and
employee counselling, with a 24-hour
telephone support service

Worklife balance policies


Worklife balance policies covering
issues such as parental leave, flexible
and part-time working, and special
leave

Licensed medical clinics


Licensed medical clinics in Dubai,
Muscat and Cairo supporting more
than 20,000 employees

Health Matters
Health Matters, a monthly information
service, in partnership with our
occupational health provider, aimed
at giving good-quality information on
personal health issues. Feedback
from employees has been extremely
positive

RoSPA Award
Carillion Training Services was a winner at the Royal Society
for the Prevention of Accidents (RoSPA) Occupational
Health and Safety Awards 2014. The Education & Training
Services Sector Award recognises commitment to
continuous improvement in accident and ill health
prevention at work. Judges consider entrants overarching
occupational health and safety management systems,
including practices such as leadership and workforce
involvement.

I am proud of the sheer hard work, dedication,


innovation and commitment to health and safety
by our staff and apprentices. It is they who make a
significant difference and allow us to continually
improve our occupational health and safety
performance.
RAY WILSON, Director and General Manager

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Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

RECRUITING, RETAINING AND ENGAGING


EXCELLENT PEOPLE
PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE

SUPPORTING THE ARMED FORCES


RECRUITING TALENT
BAN THE BOX

Safety
performance

LEARNING AND DEVELOPMENT

Health and
wellbeing

THE GREAT DEBATE

Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data

E-LEARNING TAKES OFF

COMMUNICATING SUSTAINABILITY
AN EXEMPLAR EMPLOYER

We occupy a competitive sector when it comes to attracting and keeping


talented people. To find the calibre of people we need, we have to think
differently.
This means demonstrating that we mean business when we talk about inclusivity, learning,
developing, engaging and rewarding.
Within our refreshed strategy, investing in our people and capabilities remains our top priority.
Developing and attracting excellent people to create a vibrant, diverse and flexible workforce has
the greatest impact on the success of our business.
Our new recruitment website includes a focus on flexible working practices to appeal to a wider
talent pool, and we continue leading the way alongside Business in the Community to champion
opportunities for young women in engineering, exoffenders, vulnerable women and reservists.

Supporting the armed forces


Supporting those connected to the armed forces has been
formally recognised by the Ministry of Defence with a
Martello Tower Award in 2014.
We currently employ around 400 former service personnel
and are provide resettlement opportunities for those
leaving the Forces. Last year, 94 personnel took advantage
of Carillions placements, and we aim to employ 300

Supportive employers
are essential to
ensuring that
reservists are able to
contribute effectively
to the safety and
security of the UK.
Carillion is an
excellent example of
that. They
understand the
benefits that
reservists can bring

reservists by the end of 2016 offering them two additional


weeks paid leave during the year.
We have also signed up to an Armed Forces Pathways to
Employability programme. This enables young people on
job seekers allowance to attend a General Army Insight
Course and secure a placement with reservist-friendly
companies such as Carillion. Carl Smith was the first to
complete work experience with us. He has since secured a
full-time job with Heyrod one of our subcontractors.

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RECRUITING TALENT
We aim to recruit from our existing staff where possible and
advertise all roles internally for a minimum of two weeks. Our
next step is to recruit people locally, supporting local
economies, reducing costs and carbon through commuting
and strengthening community relationships.
We strive to treat all job applicants fairly and to eliminate any
bias or unlawful discrimination. All our managers receive
guidance and training on how to tackle unconscious bias and
consider each applicant on merit alone.

Ban the box


Carillion is part of a pioneering employers group that has
banned the criminal conviction tick box from job
application forms. Banning the box enables ex-offenders to
compete fairly for jobs based on an assessment of their
skills first, alongside regulated Disclosure and Barring
Service checks. Participating employers are able to find
people from a wider pool of talent, while also contributing
to reducing the estimated 11 billion annual cost of
reoffending.
It is so important to maintain a steady flow of

to their organisation,
and are prepared to
go the extra mile to
ensure that their
reservists are able to
meet their training
commitments.
MAJOR GENERAL
JOHN CRACKETT,
Assistant Chief of
Defence Staff
(Reserves and
Cadets)

BITC Sieff
Award
Elena Gonzalez, Carillion
Corporate Responsibility
Manager, received the
Business in the
Community West
Midlands Sieff Future
Business Leaders Award,
which recognises the
next generation of
sustainability leadership.

14%

of our people utilise the


Carillion special leave
policy, which enables
them to engage in
community and charity
activities for up to six
days a year on full pay

skilled, engaged people into our workforce and


promote opportunities within our business to a
wider pool of talent. Not having a criminal record
tick box is one of the ways we meet this aim.
JANET DAWSON, Carillions HR Director

Business has a huge opportunity and responsibility


to make the workplace more accessible to talented
ex-offenders who simply want to contribute their
skills to society.
CATHERINE SERMON, Employment Director,
Business in the Community

VIEW ALL CASE STUDIES

LEARNING AND DEVELOPMENT


Carillions tailored learning activities are developing and
inspiring our people to fulfil their potential. The Carillion
Academy continues to offer elearning and quality assurance
of the apprenticeship programmes. We now have apprentice
development schemes for both technical and soft skills and
have launched a new graduate development programme, with
31 graduates involved in 2014.

E-learning takes off


2014 saw a 70% increase in the number of modules
completed using our e-learning system ePOD, which
represents over 30% of all training recorded centrally.
There are now over 85 modules available, with 12 new titles
added during 2014. These included training on finance,
sustainability, health and safety and IT skills. Demand for
new modules is growing rapidly, with 10 new modules
already planned for 2015. We have expanded this to
colleagues in Canada and plan to roll it out in the Middle
East in 2015 following a systems upgrade in the region.

The new ePOD platform we launched in 2015 will save


200,000 over the next three years and will allow us to
make training available to suppliers, partners and clients in
the future. It will only become more useful as flexible
working increases and we strive to cut our business travel
footprint.

VIEW ALL CASE STUDIES

We also have a number of leadership development


programmes to identify and develop our future leaders and
have seen a strong increase in the number of specific business
group leadership, management and supervisory programmes
being run. Feedback from our internal engagement survey, the
Great Debate, indicated a need for soft skills training for frontline managers and so we launched the Facilities Management
Supervisory Development Programme. Over 2,100 people in
72 different contracts have taken part and, as the programme
was delivered internally, it has saved 850,000.

THE GREAT DEBATE


Our Group-wide employee survey, the Great Debate, gives
participants the opportunity to vote on big issues that will
influence the future of the company, and let senior
management know what really matters to them, anonymously.
The overall feedback is reviewed by the Chief Executive
Leadership Team, with each business unit developing action
plans for improvement.
This year, we worked with research specialists ORC
International, who gave us an employee engagement index
score, designed to measure employee commitment and
understand why they want to stay with the company. Our
engagement score was 63% compared to a private sector
worldwide benchmark level of 72%. Key issues raised included
the visibility of our business leaders, employee recognition and
clearer communication of business direction to everyone all
of which we have already started to address.

COMMUNICATING SUSTAINABILITY
We deploy a variety of methods and local languages to convey
our sustainability priorities. Formally, business Unit Steering
Groups and Working Groups make sure businesses have a
plan to implement the 2020 strategy, while informally, a
highlight was our Group-wide Sustainability Week. In Oman,
Carillion Alawi supported the Environment Society of Oman on
their environmental projects and the Speciality Work Division
and United Engineering project teams installed 30
environmental awareness boards at Masirah Island to help
protect loggerhead turtles and other endangered species
found on the island.

An exemplar employer
Carillion has been commended for its commitment to the
Armed Forces with a Gold Level Award under the MODs
new Employer Recognition Scheme.
Described as an exemplar employer we were one of the
first 50 companies to sign up to the Governments
Corporate Covenant, which pledges to help, support and
champion the military, as well as the communities and
families of defence workers.
We are a lead employer in support of the MOD and
Department for Work and Pensions Armed Forces
Employability Pathways programme, and are pioneering
the provision of work placements for job seekers who
commit to joining the Reserves.

VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

PROMOTING DIVERSITY
YOUR LIFE CAMPAIGN AND STEM SUBJECTS FOR GIRLS

PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE

Safety
performance
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data

CAN YOU PROGRAMME A ROBOT?


GENDER PATHWAYS
WOMEN ON OUR LEADERSHIP DEVELOPMENT PROGRAMME
ABORIGINAL RELATIONS

A workplace that is inclusive and reflects the make-up of our communities,


is critical to providing the range of perspectives and approaches
necessary for our future competitiveness.
We know that by recruiting and nurturing a diverse workforce we are better able to meet the
needs of our diverse customer base and the communities in which we operate. We monitor
recruitment across Carillion, including applicant diversity and new recruits, through our Groupwide recruitment system and our in-house, experienced professionals.
This enables us to tackle barriers to diversity that may exist within the recruitment process.
SkyBlue, our recruitment arm, works closely with our customers and local employment partners
to reach marginalised groups. This includes empowering minority ethnic groups and those from
socially deprived backgrounds. The team, under the guidance of Inclusion Manager David
Massingham, has also achieved the Equality and Clear Assured status for the second year
running, following the annual European Quality Assurance audit.
In Canada, we are giving significant programme support for aboriginal communities and
businesses, while in the UK we are tackling industry gender stereotypes through schools,
apprenticeships and Board-led Gender Pathways programmes. We believe that inspiring more
women to pursue careers at Carillion will help us grow our business through a range of
programmes.

EMPLOYEE PROFILE BY GENDER, ALL


EMPLOYEES
Male

77%
Female

23%

Equality and
Clear
Assured
status
for the second year
running, following the
annual European Quality
Assurance audit

Our performance data

EMPLOYEE PROFILE BY GENDER, ALL


EMPLOYEES

42,000
people

YOUR LIFE CAMPAIGN AND STEM


SUBJECTS FOR GIRLS

of whom 17,000 are


female and 25,000 are
male

We are one of eight companies backing the Your Life campaign.


This high-profile, three-year campaign is aimed at 14 to 16 year
olds and showcases the inspiring career opportunities that can
lead on from studying science, technology, engineering and
maths (STEM) subjects.
Carillion is the lead corporate partner for the construction and
business services sectors and has committed to:

increase female apprentices from 1% to 5% over the next


five years;
create an introduction to engineering and technology
for girls module for local schools; and
improve the retention rate of female engineers in the
business by creating a womens support network.

We welcome this campaign as part of a drive to


ensure that young people are equipped with the
maths and science skills the country requires to
remain competitive on a global level. We also see this
as an important part of our long-term strategy to help
develop the skills that will enable our business to
succeed in 10 years time.

A diverse workplace
is not simply about
ticking boxes or
finding token role
models; it is the
prime route to better
thinking through a
powerful mix of skills,
attitudes and
capabilities in a highperforming, inclusive
culture.
JANET DAWSON,
Group HR Director,
Carillion

RICHARD HOWSON, Carillions Chief Executive


Watch our video for more information.

Can you programme a robot?


Carillion Telent is making STEM subjects come alive in
Cumbria with their support of the STEM programme in the
region. We were asked to support an enterprise day for
girls from schools in the Barrow in Furness area where we
are installing superfast broadband.
Cumbria University Campus hosted 40 year nine girls from
five Barrow schools who were taught how to programme
Lego robots. By the end of the day they had succeeded in
programming their robots to speak and dance.

Chicks with
Bricks
As part of our work in
2014 we sponsored
inspiring industry events
such as Chicks with
Bricks, alongside active
membership of other
initiatives such as
Women on Boards and
Business in the
Communitys
Opportunity Now

programme.
We also have a team of
female Construction
Ambassadors who work
with the Construction
Industry Training Board
to inspire female
students in the range of
opportunities that the
industry can offer
women.
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STUDIES

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GENDER PATHWAYS
We believe that inspiring more women to pursue senior
management roles will help us to significantly grow our
business. Currently, 12% of our leadership population are
female (25% on the Board), and were aiming for 30% across
our senior management teams. This will reflect the same
female representation we have at operational levels. Were
trying to inspire women into senior roles by providing targeted
support through groups such as the Women in Leadership
Network and the 200strong Working Mums Network.
Our Leadership Team has set detailed and grade-specific
Gender Pathways targets including:

an additional 50 female leadership appointments;


increasing female graduate intake to 50%;
reaching our female alumni population to attract them
back; and
developing a female succession forum and targeting the
development of 312 female middle managers.

WOMEN ON OUR LEADERSHIP


DEVELOPMENT PROGRAMME
The number of women on our Leadership Development
programme is monitored and there has been a steady increase
over the last four years:

Women on our Leadership


Development programme

%
2011 2012 2013 2014
Women on our Leadership Development
programme

22

23

25

32

We also held our fifth Women in Leadership event to unite


women across the business to share their challenges,
experiences and successes. We invited coaches and
motivational speakers from Women on Boards, BT OpenReach
and Lloyds Banking Group to share their experiences and
advice on career progression.

Aboriginal relations
Carillion Canada has become a Patron Member of the
Canadian Council of Aboriginal Businesses, which is
dedicated to promoting Aboriginal communities within the
Canadian economy, has signed up to the Progressive
Aboriginal Relations programme and is a major sponsor of
a First Nations employment training camp. It is part of our
strategy to be the partner of choice for Aboriginal
communities and businesses across Canada.
Over 300 employees received training in cross-cultural
awareness in 2014 (1,000 to date) and sponsorship of
Canadas First Nations Natural Resources Youth
Employment programme supports the education and
employment of Aboriginal youths. In the 14 years since the
programme started, 93% of participants completed it,
compared to only 58% of Aboriginal youths who graduate
from high school.
A focus remains on inspiring young aboriginal women into
education and employment. Petrina Fudge, Executive
Director at Bouchier, has been personally involved in the
Applauding Aboriginal Women in Business initiative with
Nicole Bourque-Bouchier, CEO at Bouchier. Together, in
their leadership roles they seek to inspire and support
Aboriginal women from across Alberta in entering, and
working successfully in, a business environment.

CEO Social Sustainability Award: The Bouchier Carillion


Group
VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

PERFORMANCE DATA
TOTAL EMPLOYEES

PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE

Safety
performance
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data

ETHNICITY PROFILE, ALL EMPLOYEES


ETHNICITY PROFILE, UK EMPLOYEES
ETHNICITY PROFILE, MENA EMPLOYEES
EMPLOYEE PROFILE BY GENDER, ALL EMPLOYEES
GENDER PROFILE OF OUR LEADERSHIP DEVELOPMENT PROGRAMME
EMPLOYEE PROFILE BY AGE, ALL EMPLOYEES
HIRES BY GENDER BY REGION
HIRES BY AGE BY REGION
TURNOVER BY GENDER BY REGION
TURNOVER BY AGE BY REGION
LOST TIME INCIDENT FREQUENCY RATE (LTIFR)
ALL ACCIDENT FREQUENCY RATE (AAFR PER 200,000 HOUR WORKED, EMPLOYEES AND SUBCONTRACTORS)
ACCIDENTS ON CARILLION CONTRACTS INVOLVING CARILLION AND SUBCONTRACTOR
EMPLOYEES
HEALTH AND SAFETY ENFORCEMENT DATA (UK ONLY)

Note: MENA stands for Middle East and North Africa.

Total employees
%

2012

2013

2014

UK

50

45

50

MENA

43

48

42

Canada

Total employee numbers (including ethnicity and gender) and numbers from the leadership
population are extracted, almost in their totality, from the HR system across Carillion. However, other
similar HR systems are used for particular contracts.

Ethnicity profile, all employees


%

2012

2013

2014

Asian

47

44

46

Black

White

34

41

41

16

Mixed race or other


Declined to state

This data excludes Canada: data is not currently captured in this region due to legislation
requirements.

Ethnicity profile, UK employees


%

2012

2013

2014

Asian

Black

White

61

71

73

30

16

13

Mixed race or other


Declined to state

Ethnicity profile, MENA employees


%

2012

2013

2014

Asian

96

94

92

Black

White

Mixed race or other

Declined to state

Employee profile by gender, all employees


%

2012

2013

2014

Male

81

77

77

Female

19

23

23

Gender profile of our leadership development programme


%

2012

2013

2014

Male

77

75

68

Female

23

25

32

Employee profile by age, all employees1


%

2012

2013

2014

1625

11

11

2635

32

29

30

3645

25

24

25

4655

20

22

23

5665

11

13

13

66+

1. Excludes employees in the UK Joint Ventures and people employed in our healthcare contracts
under the Retention of Employment model.

Hires by gender by region


%

UK

MENA

CANADA

Male

35

98

84

Female

65

16

Hires by age by region


%

UK

MENA

CANADA

1625

16

15

18

2635

26

17

51

3645

23

19

23

4655

24

26

5665

10

18

66+

Turnover by gender by region


%

UK

MENA

CANADA

Male

62

98

76

Female

38

24

Turnover by age by region


%

UK

MENA

CANADA

1625

19

2635

23

48

17

3645

23

28

20

4655

24

12

25

5665

18

15

66+

Lost Time Incident Frequency Rate (LTIFR per 200,000


hours worked, employees and subcontractors combined)
Rate

Rate
2012

2013

2014

0.53

0.29

0.24

This key performance indicator is calculated as the total number of incidents that result in one day or
more (not including the day of the accident) off work per 200,000 hours worked for both employees
and subcontractors combined. As per OSHA definition, restricted work or light duties do not count as
lost time for the purpose of this indicator.

All Accident Frequency Rate (AAFR per 200,000 hour


worked, employees and subcontractors)
Rate

Rate
2012

2013

2014

3.62

2.81

2.31

This KPI is calculated as the total number of injury incidents that are recorded, regardless of the
severity of the injury that results, per 200,000 hours worked for both employees and subcontractors
combined. It measures the frequency of incidents lower down the accident triangle, which are a
predictor of the likelihood of more serious events.

Accidents on Carillion contracts involving Carillion and


subcontractor employees

2012

2013

2014

Number of Lost Time Incidents (LTIs)

656

349

297

Hours worked (millions)

247

238

246

Fatal accidents

Health and safety enforcement data (UK only)

2012

2013

2014

Prohibition notices

Improvement notices

21

Prosecutions

1. One prosecution related to an accident in 2003.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

Carillion is...
supporting sustainable

We thrive when our


communities thrive
SUPPORTING
SUSTAINABLE
COMMUNITIES

A positive legacy
Employment and
training

Social value is all about creating lasting


legacies for and with the communities
where we work and live. We do this by
creating jobs and training, working closely
with community groups, supporting local,
smaller companies and inspiring our people
to become personally involved.

Championing
apprenticeships

Sustainability in action

Volunteering
Performance data

Investing in future skills


5,000 APPRENTICESHIPS TO BE
OFFERED DURING THE NEXT FIVE
YEARS

Partnering with Barnardos


OUR STRATEGIC PARTNER OF THE YEAR

Considerate construction

Considerate construction is not just


a slogan but a way of operating that
ensures the industry focuses on
being a good neighbour and good
employer. Construction sites are

Supporting good causes


OUR PEOPLE GAVE 1.8 MILLION IN
TIME, SKILLS AND CASH

not simply about the building but


about creating places that bring
lasting benefits to the users and
communities.
JOHN CURRIE, Project Director
READ MORE

Our key figures


2014 performance highlights

14%

of our people got


involved in volunteering
2013: 12%

87%

of apprentices found
employment or pursued
further education
2013: 86%

Progress against targets

51%

local spend including


SMEs in the UK
Targets

2014: 45%

2015: 60%

Target achieved
VIEW OUR FULL PERFORMANCE AGAINST TARGETS

1%

pre-tax profits donated


to community activities
either in cash or in kind
Targets

2014: 1%

2020: 1%

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

A POSITIVE LEGACY
MAKING OUR MARK

SUPPORTING
SUSTAINABLE
COMMUNITIES

A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering
Performance data

WINNING CONTRACTS BY THINKING LONG TERM


DELIVERING BEYOND THE CONTRACT
BUSINESS CONNECTORS
COMMUNITY WOOD PROJECTS

Thriving communities help to boost economic prosperity and contribute


positively to society. We are at the heart of many local communities
where we live and work, and we are committed to improving quality of life
and providing much-needed employment and training through our
construction, infrastructure and services contracts.
Our aim is to have a community needs plan for all our major contracts. These plans provide a
systematic approach to understanding local community priorities and meeting their needs. So far,
96% of all our projects in the UK, Middle East and Canada have a community needs plan in place.
Building on from our Community Needs Plans, we work with all sectors of the community and we
are helping commissioners respond to the UK Governments Public Services (Social Value) Act,
which requires them to take into account wider social, environmental and economic benefits
when procuring public services. Through our Sustainable Communities Strategy, we aim to leave
a long-lasting, positive legacy in the communities where we work.
Overall, we understand that the success of our business relies on the success of our supply chain,
our clients, our people and the communities where we operate.

Making our mark


In Egypt, Al Futtaim Carillion supplied materials and power
tools to build a classroom extension for the African Hope
Learning Centre, which offers school placements for
African refugees. In Dubai, we set up shelter scaffolding at a
school fete for 4,000 visitors to Jebel Ali Primary School.
In Canada, the William Osler Health Centre team in Ontario
has developed student placement opportunities with
different organisations. Led by Patient Food Services

Director Alan Acanne, the programme has supported 26


students with a 13-week volunteer placement programme
since 2012, nine of which went on to employment.
In the UK, we support Business in the Communitys (BITC)
Business Class, developing three-year partnerships with
schools to give careers advice, show positive role models
and offer volunteering and mentoring activities.
At Inverclyde in Scotland, we salvaged 19,000 worth of
bricks, fencing and an electric bed for Reach for Autism and
other charities following the strip and demolition of old
buildings.

VIEW ALL CASE STUDIES

Winning contracts by thinking long


term
We began our contract with the Royal Liverpool Hospital in
February 2014. This hospital project is a clear example of
creating lasting social value with and for a client (NHS) with
a clear sustainability vision: to improve lives and contribute
to the local economy through local suppliers and
contractors.
Carillion was selected as a preferred project partner, not
only because of its operational credentials, but also
because of its commitment to creating a social and
economic legacy for the community.
We are employing 60% of the workforce locally through
our supply chain, with 15% of the workers coming from
priority wards. A further 100 apprentice places will also be
provided, and we opened a Job Shop on site to help
promote local employment opportunities. As part of our
commitment to source 60% of our construction spend
locally, we have hosted meet the buyer events and a
Liverpool Supply Chain Sustainability School Day, which
received a 95% excellent feedback rating.

One of our key


responsibilities is to
invest directly in the
communities where
we work and live
not just to ensure that
they get a fair share
of the economic
benefits, but also to
bring about lasting
social change where
it is most needed.
SIMON BUTTERY,
Managing Director of
Carillion Canada

Considerate
Constructors
Scheme
As a responsible operator
of construction sites, we
are proud to be an
Associate Member of the
Considerate
Constructors Scheme
(CCS), and are aligned to
the principles of its Code.
This sets out
requirements such as
minimising noise and
dust, and ensuring that
working hours reduce
inconvenience to the
local community.
During 2014, there were
127 CCS audits across the
78 projects registered
with the scheme. We
achieved a high score,
with a Carillion average
score of 39.9 against an
average score of 34.2.

The largest
apprentice trainer and
employer in our sector

The project also provides a local three-year Regeneration


Fund of 100,000, which has allocated more than 31,000
to 20 local community groups in the first year of
construction.

96%

of our contracts have


community needs plans
in place

1%

of our pre-tax profits


were contributed to
community activities in
cash or through
employee time

VIEW ALL CASE STUDIES

DELIVERING BEYOND THE CONTRACT


We won two BITC Awards in 2014 for our work to improve
young peoples employment prospects in Wales.
Our A465 team won the Wales Education Award for our
Schools Engagement Programme in the Heads of the Valleys.
The project offered 32 weeks of work experience for local
students, while enhancing educational attainment through
delivery of over 60 curriculum support activities. The business
benefits were:

31% of Carillions Welsh workforce were engaged and


actively involved in supporting young people;
70 weeks of employee development opportunities
through work experience placements and mentoring;
and
recognition for Carillion by winning the South East Wales
CITB Construction Ambassador Employer of the Year.
We were also highly commended for tackling youth
unemployment in Blaenau, Gwent going beyond contractual
commitments and delivering employment, training and work
experience for young people.

Business Connectors
We seconded three people to Business in the Communitys
flagship Connector programme. Business Connectors are
trained by BITC to build partnerships that tackle community
issues in deprived neighbourhoods.

Charlie Topaz is a Carillion Performance Manager and is our


Business Connector in Wythenshawe. Seconded to the
area for 15 months, she has been building relationships to
tackle local issues including business engagement,
employment, education and social cohesion.

Ive already built a database with Manchester City


Council to identify the challenges faced by
companies in the area, identified best practice
between collaborating schools and businesses,
linked employment hubs and developed a network
of community groups so they can pool resources
and grow together.
CHARLIE TOPAZ, Carillion Performance Manager

VIEW ALL CASE STUDIES

One of Charlies key projects in 2014 was a Case for


Investment event in Wythenshawe, which connected business
and community leaders to discuss opportunities and
challenges for skills and employment. The event was oversubscribed, full of energy and saw speakers from Manchester
City Council, Business in the Community, Carillion and
Manchester Airport make the case for business and
community integration and more about BITC Business
Connectors

Community wood projects


Our 11 million rail contract in Brighton diverted 99.7% of
waste away from landfill, with an exemplary approach to
the wood used and additional community benefits.
As much as 80% of all shuttering was re-used from the
Thameslink Project at Selhurst and all wood was
responsibly sourced. Used wood was sent to the
Community Wood Recycling Project, a local not-for-profit
enterprise providing employment and training to long-term
unemployed and socially disadvantaged people.
We have also saved 20 tonnes of wood from landfill at

Kings Cross, again through Community Wood. The Kings


Cross project has created seven Business Action on
Homelessness placements, with three people now working
full time.

VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

EMPLOYMENT AND TRAINING


READY FOR WORK

SUPPORTING
SUSTAINABLE
COMMUNITIES

A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering

EMPLOYABILITY SKILLS IN SHEFFIELD


HOSPITAL SITE JOB SHOP

Creating local jobs for local people and buying our goods and services
from local communities is part of our positive contribution to thriving and
skilled communities.
Amid tough economic conditions and ongoing skills shortages, we work hard to drive
employment, training and education to build a diverse and resilient workforce. We specifically
support social mobility, especially among hard-to-reach groups, and we achieved our 2014 target
of at least 4% of our people engaging with schools, the unemployed and marginalised groups.
Below are some of the ways in which we met this target.

Performance data

Ready for Work


Through our Ready for Work partnership with Business in
the Community (BITC) we offered 118 placements and
trained 25 Carillion volunteer job coaches in 2014. Ready
for Work supports some of societys most disadvantaged
people to enter employment and in 2014, 82% of
placements were completed while 56% of people gained
work for the first time as a result of a Carillion placement or
support from a Carillion job coach.
We continue to support those with unspent convictions:
44% of the total placements we offered were to people
with unspent convictions, of which 80% completed their
Carillion placement and 58.5% went on to gain work.
Daniel Easthope, MD of Modern Housing Solutions
(Defence Business), represents Carillion on the Ready for
Work national leadership team. Barry Quatermass, IMS
Director (Carillion Construction), is a member of the
Operations Group that reports into that leadership team,
and our Chief Sustainability Officer David Picton chairs the
Ready for Work London Steering Group.

We know that over


the next five years the
construction sector
alone will grow by
2.2% annually,
creating 182,000 new
jobs across the
sector. We will need
talented people who
have STEM skills to
fill these jobs.
RICHARD HOWSON,
Carillion Chief
Executive

We are delighted that during the year a record


number of Carillion people volunteered to support
Ready for Work whether as job coach, placement
buddy, Ready for Work club volunteer or to
support programme logistics locally.
DEBRA FEARNSHAW, BITCs Head of Operations
on the Work Inclusion programme

Mentoring
women
Carillion Community
Services has joined
BITCs Womens
Mentoring programme to
help vulnerable women
reintegrate into
mainstream sustainable
employment and gain
economic independence.

VIEW ALL CASE STUDIES

Employability skills in Sheffield


In Sheffield, the Customer Experience Centre team held an
Employability Skills Day at Parkwood E-ACT Academy, for
60 Year 10/11 students. The event simulated a careers fair
environment as part of a series of initiatives designed to
improve students employability and provide local
company insight.
The event demonstrated how even within a single company
there are opportunities to interest people with completely
different skills, talents and aspirations. Carillion staff,
including two directors, were given their own stall, to
discuss topics covering construction, customer service, HR
and marketing, project management and project
coordination.
The event saw students writing a job application from which
the best candidates were selected for interview and
potential work experience placements at Carillion.

Double
winner
of Business in the
Communitys (BITC) Big
Tick Awards for our
Ready for Work initiative
and our apprenticeships
programme

118

Ready for Work


placements

VIEW ALL CASE STUDIES

Hospital site Job Shop


Carillions recruitment arm SkyBlue opened a new Job
Shop on the Royal Liverpool University Hospital (RLUH)
construction project.
Councillor Nick Small, Cabinet member for Employment and
Skills, officially launched the Job Shop in December 2014.
Construction of the new hospital will create around 750 fulltime jobs during the construction period. Carillion has
committed to 60% of these jobs going to local people and
15% of the workforce will come from priority council wards
in the city.
The Job Shop will be operated by Carillions recruitment
arm SkyBlue, in partnership with Liverpool in Work, and
will prove an accessible one-stop shop for both
employers and those looking for employment on the
project.

One of our key objectives is to maximise the


employment and training opportunities for local
people. We want to see jobs of all types and all
levels created during the construction period, and
filled as far as practicable by local people.
DAVID KENNEDY, Carillion Project Director

VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

CHAMPIONING APPRENTICESHIPS
CONSIDERATE CONSTRUCTION

SUPPORTING
SUSTAINABLE
COMMUNITIES

A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering

INTERNSHIPS IN QATAR AND CANADA

We are the largest apprentice trainer and employer in our sector, and
recently committed to creating more than 5,000 apprenticeships over the
next five years.
Carillion delivered over 1,000 NVQs and apprenticeships in 2014, with more than 87% of
apprentices going on to find employment or pursue further education. These individuals have
gained skills for life and work beyond their time with Carillion.
We were awarded a prestigious Business in the Community Big Tick for Inspiring Talent at the
heart of our apprenticeship programme, which trains around 2,000 students at any one time
across 13 centres in the UK.

Performance data
As part of our commitment to creating 5,000 apprenticeships over the next five years, we will
offer apprenticeship interviews to all young people who graduate from the National Citizen
Service (NCS), the voluntary programme for 1617 year olds. We will also encourage our other
apprentices to enrol on NCS first.

Back to business

CEO Social Sustainability Award: Oxfordshire County Council


Contract Team

As part of Carillions
commitment to deliver
services to Oxfordshire
County Council, we
identified 92 roles to
deliver the Universal
Free School Meals
programme. We
appointed 52% of
unemployed people into

Considerate construction
The 13-storey office at One St Peters Square in Manchester
was named the best in the country by the Considerate
Constructors Scheme (CCS). The team was praised for its
exceptional community involvement, including the
creation of 61 apprenticeships and working with local
charities to help long-term unemployed people into work.
CCS is a national initiative to improve the image of the
construction industry, meeting a robust Code of
Considerate Practice and initiatives that make it considerate
towards neighbours, the public, employees and the
environment.

This is a tremendous honour which recognises the


hard work and commitment of the whole team.
Considerate construction is not just a slogan but a
way of operating that ensures the industry focuses
on being a good neighbour and good employer.
Construction sites are not simply about the
building but about creating places that bring lasting
benefits to the users and communities.
JOHN CURRIE, Project Director

those roles, with over


half of these having been
long-term unemployed.
VIEW ALL CASE
STUDIES

1,000

NVQs and
apprenticeships
delivered by Carillion

87%

of apprentices went on to
find employment or
pursue further education

52%

of free school meals


roles at Oxfordshire
County Council delivered
by previously
unemployed people

VIEW ALL CASE STUDIES

Internships in Qatar and Canada


Carillion Qatar understands the importance of educating
young people. We have provided internships to two
Mechanical and Electrical Engineering students from Qatar
University, who both completed the programme.
In Canada, Shabbir Madraswala became the first Hammer
Head graduate from the Central Ontario Building Trade
team to be directly employed by Carillion Construction
when he joined the Union Station project. In Canada,

These roles allow me


to advocate
vocational training
and to ensure that we
can balance the
demands for
vocational and
academic training
while meeting the
needs of employers
and those young
people seeking a
career in
construction.
RAY WILSON,
Carillion Training
Services Director

Hammer Heads is a 12-week skills and employment-based


training programme that links young disadvantaged people
to apprenticeship career opportunities in the construction
industry.

To go from a struggling, confused teenager, to


becoming employed by a reputable contractor
such as Carillion has truly been a blessing. The
skills and life lessons I have learned from the
Hammer Heads program will stick with me
throughout my career.
SHABBIR MADRASWALA

VIEW ALL CASE STUDIES

Ray Wilson, Carillion Training Services Director, was appointed


to the Construction Industry Training Board in 2011. He is
already chair of the UK Contractors Group (UKCG) Training
Committee, a member of the UKCG Apprenticeship Group and
a Commissioner on the recently formed Commission on
Apprenticeships as part of the Governments Industrial
Strategy. Ray chairs the Common Gateway group on behalf of
the Department of Business, Innovation and Skills, which is
seeking to improve recruitment into the construction sector.
The group seeks to develop a common gateway through
which all interested parties can find information, jobs or work
experience in construction.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

VOLUNTEERING
PARTNERING WITH BARNARDOS

SUPPORTING
SUSTAINABLE
COMMUNITIES

A positive legacy

EMPLOYEE NOMINATION FUND


GIVE AND GAIN DAY
EMPLOYEE VOLUNTEERING PORTAL
VOLUNTEER OF THE YEAR
YOU HAVE ENRICHED OUR HOME

Employment and
training
Championing
apprenticeships
Volunteering
Performance data

Our volunteering programme benefits Carillion, our clients, our people


and the communities in which we work. It enhances morale and work
performance, supports training and development and helps to build local
relationships.
We encourage our people to volunteer with six days paid leave a year and gave the equivalent of
1% of our pre-tax profits to worthy causes through cash, time and in-kind donations in 2014. Our
people support multiple charities across our international operations and donate their time to
many causes, including food, health and nutrition campaigns, biodiversity projects, education,
helping underprivileged people, and supporting the UKs Armed Forces.

TOTAL FINANCIAL GIVING TO COMMUNITY


(CASH, TIME, DONATIONS),
TOTAL

1,813,277
(2013: 1,820,047)

$1 million raised
for William Osler
Foundation
Group

UK

(2013: 236,780)

(2013: 1,383,031)

290,593

1,164,039

Since the opening of the


Brampton Civic Hospital
in July 2007, Carillion
Canada has been
fundraising for the
hospitals William Osler
Foundation Fund and has

MENA

Canada

(2013: 82,660)

(2013: 117,577)

144,507

214,138

Our performance data

TOTAL FINANCIAL GIVING TO COMMUNITY

raised close to $1 million


(547,000) through
different fundraising
initiatives. This will
contribute towards a
Kidney Wellness Centre,
a Centre for Complex
Diabetes Care and a
Mental Health and
Addictions programme.
VIEW ALL CASE
STUDIES

Partnering with Barnardos


Carillion selected Barnardos to be its first national
together charity partner. Formed in 1867, Barnardos has
projects based in local communities across the country,
and helped transform the lives of 200,000 vulnerable
children, young people and their families across the UK in
2014.

1%

pre-tax profits equivalent


donated through
employees time, cash
and in-kind donations

This partnership aligns with our sustainability strategy, and


in particular our commitment to building sustainable
communities, and throughout the year we worked together
through volunteering (including Give and Gain Day) and
fundraising, providing opportunities for Carillion people to
play a part in their local communities and join together with
colleagues, customers, suppliers, friends and family to help
young people across the UK to the tune of 95,000.
Significant fundraising work was carried out across many
areas of Carillions UK operations, including a charity bike
ride across Cuba, toy donations, raffles, a Go Green for
Barnardos day and a bake-off. The Carillion Running Club
completed the BUPA Great North Run and the Winter Wolf
Run in support of the charity. In December for Giving
Tuesday three Carillion teams took on the Barnardos
Store Wars challenge to raise money by taking over and
running a Barnardos shop for the day. An engineering
team volunteered at a nursery in Hackney, where
Barnardos looks after approximately 100 children
identified as being at risk.
But it was the two-day Coast to Coast (160 mile) cycle
challenge, led by Richard Howson, that truly united
colleagues, customers and partners. The team endured
rain, punctures, steep hills and a tough course but managed
to complete the challenge as planned and raised nearly
32,000. In total, as a result of the combined efforts of
Carillion people, the first year of the together partnership
contributed nearly 95,000 to the charity with ambitions
to contribute further fundraising, more volunteering and in
kind resource support throughout the second year of the
partnership in 2015.

Carillion has a long-established commitment to


supporting charities and community organisations,
and I was delighted last year to launch our

I would like to thank


all the Carillion
employees who have
raised 95,000 in
their first year
partnering with
Barnardos. This is an
incredible
achievement. The
partnership has gone
from strength to
strength and with
Carillion looking to
provide employment
opportunities and
apprenticeships for
young people
supported by
Barnardos, they will
continue to make a
real difference. I look
forward to seeing
more exciting plans
rolling out over the
coming year.
JAVED KHAN,
Barnardos Chief
Executive

partnership with Barnardos. It was a great team


effort and despite a few punctures en route and
some stiff legs from some of the big hill climbs,
everyone made it successfully across the finish
line.
RICHARD HOWSON, Chief Executive, Carillion

VIEW ALL CASE STUDIES

EMPLOYEE NOMINATION FUND


Across the world, our people can nominate charities or
community organisations to receive a donation from the
Employee Nomination Fund. In two separate rounds of
funding, a total of 80,000 was distributed by awarding 500
each to charities across the UK, Middle East and Canada.
Employees were invited to nominate causes they wished to
support, and the final selection process was then managed by
an Appeals Committee Working Group. 160 charities were
chosen to benefit from the awards and employees gave
uplifting feedback on behalf of the charities involved.

GIVE AND GAIN DAY


From Board members to apprentices, our support for Business
in the Communitys Give and Gain day became an international
focus for volunteering, with 530 Carillion staff offering over
2,700 hours and skills to local projects including schools,
charities and other organisations.
Our Chief Executive Richard Howson joined 27 colleagues to
carry out a magical makeover at a Barnardos centre in
Leyland, Lancashire, while our Chairman Philip Green became
a job coach for the day, working with Ready for Work
candidates in London. Colleagues in the Middle East embraced
Give and Gain day by:

raising 2,000 for Operation Smile for children who are


in desperate need of operations, through fundraising

6 days

of paid volunteering
leave annually for each
employee

initiatives at Dubai, Head Office, Al Jalila Hospital project


and the New York University project in Abu Dhabi;
painting and maintenance at the Sheikh Mohammed
Centre for Multicultural Understanding;
donating blood at Ghala Clinic, Muscat; and
building a garden from our waste timber for the Eco Club
at the Qatar International School, Msheireb.

EMPLOYEE TIME DONATED TO CHARITY


SINCE 2012 IN CARILLION CANADA
Hours
volunteering

Equivalent value
(CA$)

(2013: 2,570)

(2013: $188,124)

2,885

$391,410

EMPLOYEE VOLUNTEERING PORTAL


In 2014, we launched a volunteering website as part of our
long-term target to have 50% of our people taking up their sixday special leave entitlement by 2020. The site includes
information on how staff can get involved, case studies and
how to record volunteering.
We asked Richard Howson, Chief Executive, about his views on
the benefits of volunteering and hosted our own roundtable
with key stakeholders on employee volunteering.

Volunteer of the Year


For the past few years, Rajesh Kapil has been supporting an
orphanage in his native hometown of Deha, Himachal
Pradesh in India, where many of our people working in the
Middle East come from. With support from projects in the
Middle East and a donation from the Carillion Charitable
Fund, Rajesh has so far been able to raise around 4,000
for the orphanage. For his efforts, Rajesh has been
awarded Volunteer of the Year at the CEO Awards.

Rajesh Kapil, Sustainability Volunteer of the Year


VIEW ALL CASE STUDIES

You have enriched our home


Bouchier Group in Canada (part owned by Carillion) was
awarded the Fort MacKay Business of the Year Award by
the Fort MacKay First Nations Council. The accolade is for
financial and in-kind support for various causes.

We have chosen you as a winner because you


have committed to our community and excelled in
your pursuit of enriching our home through
dedication and hard work. We are all working
together for a better tomorrow through unity and
integrity. We thank you for being a contributor in
the past year as a devoted philanthropist and role
model for other businesses.
JIM BOUCHER, Fort Mackay regional Chief

VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

PERFORMANCE DATA
Note: MENA stands for Middle East and North Africa.
SUPPORTING
SUSTAINABLE
COMMUNITIES

Total financial giving to community (cash, time, donations)

A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering
Performance data

2012

2013

2014

282,730

236,780

290,593

1,549,096

1,383,031

1,164,039

MENA

291,324

82,660

144,507

Canada

28,630

117,577

214,138

TOTAL

2,151,780

1,820,047

1,813,277

Group
UK

Our total community giving exceeded our target of 1% of our pre-tax profit. The total includes cash
donated to communities, financial cost of employee time and total cost of donations in kind.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

Carillion is... enabling

economies

We see the potential in a


cleaner future
ENABLING LOWCARBON ECONOMIES

Climate change
and our impacts
Sustainable design

We are working collaboratively with our customers and


our suppliers to cut carbon emissions and deliver wider
environmental benefits. Economies built around lowcarbon services present a significant opportunity to
Carillion. So, as well as cutting carbon we are getting
more creative in sustainable design.

Our carbon
footprint

Sustainability in action

Performance data

Green House
OMAN TEAM WINS NATIONAL DESIGN
COMPETITION WITH THE HIGHER
COLLEGE OF TECHNOLOGY

Climate Performance A List

Travelling light at Heathrow

With the costs of electricity rising


and more demands for companies
to be sustainable, the installation
and the possibilities have been well
received by Heathrow, and we are
hoping to see more units installed

OUR HIGHEST EVER SCORE (99A) IN THE


CARBON DISCLOSURE PROJECT
GLOBAL RANKING

Reviving water power


ANCIENT TECHNOLOGY PROVIDES
POWER AND PROTECTS FISH

through the airport in the future!


PAUL WHITELY, Operations
Manager, Heathrow Terminal 3
READ MORE

Our key figures


2014 performance highlights

17%

reduction of our carbon


footprint since 2011
(normalised)
2013: 10%

5m+

litres

of fuel saved by Carillion


Canada Highway
Services since 2011

Progress against targets

25%

reduction in electricity
consumption from
Carillion offices
Targets

2014: 24%

Target achieved

2015: 20%

Behind schedule

VIEW OUR FULL PERFORMANCE AGAINST TARGETS

11%

reduction in gas
consumption from
Carillion offices
Targets

2014: 19%

2015: 20%

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

CLIMATE CHANGE AND OUR IMPACTS


CLIMATE PERFORMANCE A LIST

ENABLING LOWCARBON ECONOMIES

Climate change
and our impacts
Sustainable design
Our carbon
footprint
Performance data

RETHINKING CARBON NEUTRALITY


CARBON INNOVATION
CARBON REDUCTION IN OUR CONTRACTS
TRAVELLING LIGHT AT HEATHROW, TORONTO AND BRIGHTON

Our goal is to bring low-carbon solutions to our clients and suppliers and
to be as lean and carbon-efficient as possible in our own operations.
Cutting carbon is essential to achieving long-term global economic, social, and environmental
sustainability for our business and society. We have an opportunity to innovate in the services
and products we offer to achieve a competitive edge, reduce costs, reduce the demand on
energy and deliver greater operational efficiency.
Alongside other industry leaders, we committed to cut 24 million tonnes of carbon from
infrastructure contracts by 2050 as a result of the UK Infrastructure Carbon Review. We made
good progress against this target in 2014.
In British Columbia, Canada, our Energy Conservation Assistance Programme (ECAP) has helped
8,000 low-income families through free energy advice, saving them $400,000 (219,000). We
have also won another ECAP contract to deliver energy conservation to three First Nations
communities near Penticton, BC.

CLIMATE PERFORMANCE A LIST


We achieved a carbon leadership position in the top echelon of
the global Climate Performance Leadership Index, recognising
our commitment to reduce carbon emissions and mitigate the
business risks of climate change, as well as being open and
transparent in our reporting.
We were one of only 187 companies that were awarded a
climate performance A-grade in this global ranking of 2,000
publicly listed companies independently assessed against
CDPs widely respected scoring methodology. The Index
provides a tool for nearly 800 institutional investors and
stakeholders to evaluate and track corporate efforts to mitigate
climate change.

CEMARS
Carillion UK is accredited
to the Certified Emissions
Measurement and
Reduction Scheme for
measured, managed and

Carillion featured in 2013 as one of the leading UK companies


for climate change transparency in the FTSE 350 Climate
Disclosure Leadership Index scoring 92A and improved
that further in 2014 to achieve a near-perfect 99A at the head of
the Industrials sector for performance and disclosure of
climate-related information.

Global greenhouse gas emissions continue to rise and


we face steep financial risk if we do not mitigate them.
The need for data on corporate climate change
impacts and strategies to reduce them has never been
greater. For this reason we congratulate those
businesses that have achieved a position on CDPs
Climate Disclosure Leadership Index and the A List.
These companies are responding to the ever-growing
demand for environmental accountability and should
inspire others to follow suit.
PAUL SIMPSON, Chief Executive Officer of CDP

verified carbon
emissions.

Carbon reduction
commitment
For our UK Carbon
Reduction Commitment
(CRC) reporting, in
compliance year 2013/14,
our emissions increased
by 4% on the previous
year. This is the result of
the expansion in UK
operations, including
acquisitions in 2013/14. In
the absence of this
expansion, Carillions net
CRC emissions for
2013/14 would have been
reduced by more than
5%.

Carillions inclusion for the second year running in the


top echelons of both the UK and the global Climate
Performance and Disclosure Leadership Indices
demonstrates the vital importance that we place on
reducing and managing our carbon emissions. This
backs up our Sustainability Strategy to enable lowcarbon economies through work with clients, supplier
partners and our own people.
DAVID PICTON, Carillions Chief Sustainability Officer

RETHINKING CARBON NEUTRALITY


We are focused on reducing our carbon emissions to their
lowest possible levels, and have so far achieved a 17%
reduction normalised by revenue since 2011. In 2014, we
received further recognition for our carbon management
strategy by topping three of the Carbon Disclosure Projects
leadership indices for performance, disclosure and supply
chain.
Our materiality review in 2014 showed that stakeholders
remain positive about our original commitment to work
towards carbon neutrality, so we need to be clear now about
how best to achieve this for a balanced benefit. We need to
take advice, and work that through our sustainability
governance to understand how this investment aligns to our
ambition to lead the way in sustainability, and how best to
include a clear link to our international operations and to the
six positive outcomes of our 2020 strategy.
We remain committed to working towards carbon neutrality as
a long-term goal, and if we are to invest in offsets once we
have minimised our own carbon footprint, these must
resonate with our stakeholders. In 2015, we will develop and
implement our plan for carbon reduction and neutrality across

Reviving water
power
A Carillion development
in Durham has been
awarded a BREEAM
excellent rating largely
due to using 2,000-yearold technology to
generate renewable
electricity. An
Archimedes screw water
turbine will supply 75% of
the electricity needs to a
new riverside office.
The screw design
incorporates a fish pass
allowing fish and elvers
to travel upstream. It also
counts numbers and
species of fish as they
pass through. The 26
million Freemans Reach
development will be
home to the National
Savings & Investments
bank and a new branch
of the Passport Office.
VIEW ALL CASE

the remainder of our Sustainability 2020 journey, such as


green energy production and consumption; addressing the
embodied carbon of our projects; and helping customers
reduce their carbon (see our EcoPods).

STUDIES

CARBON FOOTPRINT (NORMALISED BY M


TURNOVER)
% change from 2011

Total Carillion
Group

-17%
MENA

-40%

UK

-34%

Canada1

+112%

1. The sharp increase in carbon emissions between 2012 and


2013 was due to improved data capturing and reporting
processes.

Our performance data

CARBON FOOTPRINT (NORMALISED BY M


TURNOVER)

Finding innovative
ways to meet the
2050 targets set by
the UK Infrastructure
Carbon Review will
need us to think and
act differently,
working closely with
clients and suppliers
to develop new
materials, techniques
and better long-term
resilience.
ADAM GREEN,
Managing Director of
Carillion Construction
UK

CARBON INNOVATION
We are committed to drive innovation in carbon management,
including:

working with other organisations, like the Department


for Transport, to establish the effectiveness of various
systems for improving vehicle fuel efficiency;
looking into the fuel profile of our operations to direct
fuel reduction activities;
assessing renewable energy use on major projects;
membership of the Highways Term Maintenance
Association Environment Group and a member of the
Rail Industry Environment Forum; and
energy Champions in our Middle East operation for each
project.
In 2014, we have maintained our focus on reducing fuel
consumption. Over 70% of our carbon footprint is made up of
fuel, mainly from commercial vehicles, company cars and plant
equipment.
We continue to measure and track fuel internally in order to
reduce our overall footprint and have achieved 28% reduction
in fuel across the Group (2013: 3%) against a 2011 baseline
normalised by turnover.

Off-site
construction
saves CO2
Caledonian Building
Systems in
Nottinghamshire won a
contract from Carillion
worth 42 million to
construct eight new
accommodation blocks
for The Royal School of
Military Engineering,
Minley.
A large number of
vehicles commute to the
site but thanks to off-site
construction, deliveries
were reduced by 82%
during the monitoring
period, contributing to a

We launched an internal campaign, Fuelling Profit, to


understand how we can reduce fuel use through changes to
our equipment, behaviour, contract design and operations, and
through regular communications campaigns. In 2015, we will
continue to implement initiatives across these key areas.
In Canada, 98% of our carbon footprint is produced by our road
business in Ontario and Alberta, delivering vital services such
as clearing heavy snow to keep communities mobile. Here, the
focus is on driver training for safe, fuel-efficient operations.

CARBON REDUCTION IN OUR


CONTRACTS
In 2013, we implemented bespoke Carbon Reduction Plans
(CRP) for contracts, linked to the operating segments overall
sustainability plan. Currently, 96% of our contracts are using
the CRP and in 2015 we aim to achieve 100%. The CRP helps
projects identify carbon-intense activities and provides action
plans for reduction initiatives.
Carillion Construction UK has identified a number of projects to
start trialling an embodied carbon tool produced by the
Environment Agency to measure the complete impact of our
contracts from design through to construction and operation.

Travelling light at Heathrow, Toronto


and Brighton
Cheap, sustainable electricity is the goal for many client
buildings, but at Heathrows Terminal 3, a new feature is
leading the way. Carillion installed 51 foot-pressure pads,
with each pad generating enough charge to light a onemetre-long strip of LED lights for just over two seconds. As
an interactive feature in the airport, this has been popular
both for the potential energy savings and the fun it can
generate, especially over the summer holidays.

With the costs of electricity rising and more


demands for companies to be sustainable, the
installation and the possibilities around it have
been well received by Heathrow, and we are
hoping to see more units installed through the
airport in the future!
PAUL WHITELY, Operations Manager at Heathrow
Terminal 3

In Canada, the Toronto subway terminus has replaced


original incandescent lighting bulbs with long-life
fluorescent lamps, which are more robust and use
significantly less power. Approximately 1,800 are saving
seven tonnes of CO2e per month, the equivalent of
CA$4,500 (2,300).

reduction of CO2 and


saving approximately 11
tonnes of CO2 from
reduced transportation.
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STUDIES

VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

SUSTAINABLE DESIGN
BUILDING INFORMATION MODELLING

ENABLING LOWCARBON ECONOMIES

Climate change
and our impacts
Sustainable design
Our carbon
footprint
Performance data

GREEN HOUSE
MODULAR BUILDINGS ARE BETTER

Great engineering must also be sustainable. We encourage design


intelligence through the project lifecycle, including design, construction,
occupancy and demolition.
Across our work, we aim for independent certifications where we can, such as the Building
Research Establishment Environmental Assessment Method (BREEAM), the Civil Engineering
Environmental Quality Assessment and Award Scheme (CEEQUAL), and Leadership in Energy
and Environmental Design (LEED) standards. In 2014, we had 53 projects targeting a BREEAM, or
similar rating such as DREAM, 20 to Excellent and 32 CEEQUAL, 10 to Excellent.

BUILDING INFORMATION MODELLING


(BIM)
BIM uses computer-aided modelling techniques and
information management practices to create safer, more
efficient ways of designing, constructing and maintaining
assets. UK public sector procurement will require our industry
to prepare for BIM by 2016. We are determined to be at the
forefront and prepare for the global rollout of this process. BIM
has already been deployed across 40 active projects. With
those contracts across the health, defence, residential,
education and rail sectors, we are investing significantly in:

1. process: investment in adapting our processes


to support a BIM Level 2 process adaptation and
adoption;
2. technology: new software and hardware to
enable our people to engage with the process;
and
3. people: 300 technical training days in 2014 and
increased awareness across senior
management teams and operational leads.

Visual
planning
winners
Carillion was the winner
of the 2014 Visual
Planning Awards, for our
work on the A465 Head
of the Valleys contract.
The awards promote
innovation in
construction project
delivery and recognise
Carillions visual planning
capability to provide
more efficient and safer
highway schemes.

140,000
saved
and 12,500 tonnes CO2
savings at the Four
Seasons Hotel Project in

In 2015, we will further raise awareness around the business;


offer technical and project team training; and share our
experiences with suppliers and customers. In the Middle East,
where BIM is subject to customer demand, we plan to roll out
whole-life contracts in these locations.

Green House
An eco home constructed by Carillion Alawi for the Higher
College of Technology swept the boards at a national
competition. The GreenNest house won the Eco House
Design Contest for its grid-connected solar photovoltaic
system, greywater recycling and heat-barrier plants that
provide organic produce.
The first ever Oman Eco House Design Competition is part
of a long-term plan of the Sultanate of Oman in energy
conservation, development of renewable energy and
environment sustainability.

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Modular buildings are better


Modular buildings used to construct accommodation blocks
in one of our construction contracts in Wales are saving
time, money, waste and carbon. During a buildings
construction, a high level of CO2 is normally emitted
through transport and use of materials. However, modular
buildings can be part-constructed off-site.
Modular buildings save around 30% of CO2e compared to
traditional building methods. This equates to 425,000
miles of travel in todays average family car. During the full
project, we estimate carbon emissions will be reduced by
around 31,000 tonnes.

Abu Dhabi thanks to our


engineers replacing
ordinary cement with a
concrete with smaller
manufacturing carbon
embodiment.

625t of CO2/
37,000
will be saved by using
LED lights at the Network
Rail and Thameslink
project over a 25-year
lifetime

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Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

OUR CARBON FOOTPRINT


A-GRADES FOR CARBON

ENABLING LOWCARBON ECONOMIES

Climate change
and our impacts
Sustainable design
Our carbon
footprint
Performance data

POWERING CARILLION
SMARTER WORKING

Carillions carbon footprint includes direct and indirect emissions from our
operations, across all our regions. We have reduced our carbon footprint
by 17% in 2014 against a 2011 baseline (normalised).
This is largely due to efforts across the business to reduce
energy consumption and emissions arising from the operation
of our facilities, fleet and business travel. Our Carbon Policy
(PDF 108 KB) outlines how we will reduce our energy and
consumption arising from the operation of our facilities,
vehicle fleet, business travel and from our customers and
supply chain. Our aim is to:

17%

reduction in normalised
carbon footprint since
2011

avoid unnecessary carbon emissions;


reduce unavoidable carbon emissions by introducing
technology and better planning;
provide efficiencies on client projects;
source low-carbon products and services, including
renewable energy; and
assess the embedded carbon of the products we use.
In 2014, we began giving quarterly presentations to the
business around our carbon performance against targets in
order to drive awareness to our businesses on their footprint
and encourage discussion around reductions.

CARBON FOOTPRINT (ACTUAL)


% change from 2011

Total Carillion
Group

-34%

UK

-45%

A pioneering
institution in
the Arab
World
Al Futtaim Carillion
recognised for its solar
energy installation, after
being nominated by the
Dubai Chamber. The
award was presented by
The Board of Trustees of
Tatweej Excellence

MENA

-39%

Awards Academy and


the Arab Organisation for
Social Responsibility.

Canada1

+26%

1. The sharp increase in carbon emissions between 2012 and


2013 was due to improved data capturing and reporting
processes.

Our performance data

CARBON FOOTPRINT (ACTUAL)

We report on scope 13 emissions from the following sources:

Scope 1
Gas emissions calculated using kWh data from
suppliers
Commercial vehicles, company cars, plant fuel and
business mileage emissions calculated from fuel
card returns

The achievement of
Al Futtaim Carillion in
being named a
pioneering institution
reflects the hard
work of all our
people to try new
ideas and find
creative solutions to
complex problems.
SIMON WEBB,
Managing Director, Al
Futtaim Carillion

Scope 2
Electricity from our offices and sites emissions
using kWh data from suppliers

Scope 3
Rail travel emissions calculated using data
showing total distance travelled
Air travel emissions calculated using data for three
categories (domestic, short haul and long haul)

Smarter PCs,
smarter thinking

Hotel stays emissions calculated based upon a


standard hotel stay of 48kg CO2e per person per
night

Carillion Canada is
investigating the
opportunity to source
green power, and this
process is ongoing. Initial
meetings have been held
to understand the scope
and viability.

Paper emissions calculated from total kg paper


purchased and multiplied by CO2e factors provided
by our paper suppliers
Water emissions calculated based on data
showing total volume of water used (including
some effluent data in the Middle East and North
America region)

Thin Client PCs have been


set up for 117
workstations at Carillion
Canada. The units are
46% cheaper and use
around 10% of the
energy required by
standard PCs. The
initiative will save 5,373kg
of CO2 a year and a total
of CA$60,000 (31,400).
Smart thinking has also

A-grades for carbon


Carillion is one of only 187 companies awarded a climate
performance A-grade in the Carbon Disclosure Project
(CDP) global ranking. 2,000 publicly listed companies are
independently assessed against the CDP scoring
methodology.
Carillion is also one of the leading UK companies for climate
change transparency in the FTSE 350 Climate Disclosure
Leadership Index, achieving 99A in the 2014 index for 2013
performance and leading the Industrials sector for
performance and disclosure of climate-related information.

VIEW ALL CASE STUDIES

POWERING CARILLION
In the UK, we procure Climate Change Levy-exempt energy
across our businesses where possible. Where it is not, we buy
energy from combined heat and power plants. For our Middle
East business, solar energy is gaining traction. Installing
photovoltaic panels on our Dubai head office has showcased
solar power and promoted our new energy services business.

SMARTER WORKING
Our Smarter Working Campaign in 2014 encouraged people to
adopt ways of working that saved time and natural resources,
lowered our impact on the environment and promoted a better
worklife balance. We also ran our 11th Sustainability Week,
which encompassed World Environment Day.
Wolverhampton head office: This is moving to a more efficient
building and our pilot campaign, Carillion Unplugged, has
reduced energy consumption by 10%, with 5% of the savings
going to a local charity. Following the success of this pilot, we
will be rolling similar schemes out across all UK offices at the

contributed to a CA$1.1
million (577,000) saving
by working with our
travel partner to reduce
company travel and
accommodation with
initiatives such as Travel
Blackout Weeks.
VIEW ALL CASE
STUDIES

beginning of 2015.
Building energy: Display Energy Certificates are placed in all
principal properties showing how they perform in terms of
energy efficiency. Trained Energy Champions are available at
many sites to drive energy-efficient behaviour and promote
best practice.
Plant fuel: We use a plant fuel calculator across all our civil
engineering sites. This simple tool gives us a much greater
understanding of where and when plant fuel is being
consumed. We also have telematics technology in our plant
machinery, giving site managers full visibility of when and why
machinery is using fuel, and with operators taking appropriate
steps to optimise performance.
Vehicle efficiency: Out on the roads, we encourage our
commercial drivers to drive with fuel efficiency in mind, helped
by a sophisticated telematics system which monitors speeds,
acceleration and braking, and relays data back to drivers and
managers. There are monthly competitions to reward the bestperforming drivers.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

PERFORMANCE DATA
CARBON FOOTPRINT (ACTUAL)
CARBON FOOTPRINT (NORMALISED)

ENABLING LOWCARBON ECONOMIES

Climate change
and our impacts
Sustainable design

CARBON FOOTPRINT BY SCOPE

Note: MENA stands for Middle East and North Africa.

Carbon footprint (actual)


tonnes

Our carbon
footprint
Performance data

tonnes
2011

2012

2013

2014

% CHANGE
FROM 2011

Total Carillion Group

265,743

211,796

201,206

175,709

-34

UK

126,465

86,827

63,680

69,260

-45

MENA

106,858

98,918

92,317

65,661

-39

32,420

26,051

45,209

40,788

+26

Canada1

1. The sharp increase in carbon emissions between 2012 and 2013 was due to improved data
capturing and reporting processes.

Carbon footprint (normalised by m turnover)


tonnes CO2e per m

tonnes CO2e per m

2011

2012

2013

2014

% CHANGE
FROM 2011

Total Carillion Group

52

48

49

43

-17

UK

35

27

21

23

-34

190

203

173

114

-40

41

40

67

87

+112

MENA
Canada1

1. The sharp increase in carbon emissions between 2012 and 2013 was due to improved data
capturing and reporting processes.

Carbon footprint by scope


tonnes CO2

tonnes CO2

2012

2013

2014

Scope 1
Combustion of fuel and operation of facilities

170,342

157,459

134,656

Scope 2
Electricity, heat, steam and cooling purchased for own use

26,804

27,059

25,116

Scope 3
Travel, paper and others

14,648

16,668

15,936

Total

211,794

201,206

175,709

The 2013 CO2e numbers shown on this page are actuals and have been restated from the estimates
published in the 2013 report. The 2014 CO2e numbers are subject to an adjustment as some of the actuals
for the last quarter of 2014 were not available at the time of publication and have been estimated based
on 2013 data. The non-financial figures reported in these tables have been reviewed by independent
external assurance provider Bureau Veritas. For details of the scope of work and opinion on the accuracy
of our stated performance, please see the full assurance statement.
What we include when we report
We report our greenhouse gas emissions (GHG) in tonnes of carbon dioxide equivalent (CO2e) from
the sources required under the Companies Act 2006 (Strategic Report and Directors Report
Regulations 2013). We have used the GHG reporting protocol to calculate our GHG emissions for 2014,
based on data gathered to fulfil our requirements under the CRC Energy Efficiency scheme and on
emission factors from the UK Governments GHG Conversion Factors for Company Reporting 2014.
We report on Scope 3 emissions from the following sources:
Business travel data is provided by Portman (our travel partner) which is responsible for booking
and tracking all rail, air and hotel base travel. Travel data from Canada is obtained from our travel
booking partners.
Rail travel emissions calculated using total distance travelled.
Air travel emissions calculated using data for three separate categories (domestic, short-haul and
long-haul flights) showing distance travelled.
Hotel stays emissions calculated based upon a standard hotel stay of 48kgCO2 per person per
night.
Paper use emissions calculated from total kg paper purchased and multiplied by CO2 factors
provided by paper supplier.
Water emissions calculated based on data showing total volume of water used.
Hire cars emissions calculated based on miles travelled and litres of fuel consumed.
Electricity and gas WTT emissions calculated based on kWh.
Electricity line losses emissions calculated based on kWh.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

Carillion is...
protecting the

Thinking globally, acting


locally
PROTECTING THE
ENVIRONMENT

A changing
environment

We make every effort to be a responsible global citizen by


driving down our use of natural resources, rethinking
waste and creating thriving, diverse wildlife habitats for
future generations.

Sustainability in action

Waste
Water

Saving water, carbon and


waste

Biodiversity

SUSTAINABILITY INITIATIVES THAT


SAVE WATER, CARBON AND COSTS

Performance data

Waste no more
Protecting natural habitats

The Carillion Natural Habitats Fund


demonstrates the companys
understanding of the importance of
our work and commitment to
ensuring that we can continue to
benefit from having wildlife in our
lives.
STEPHANIE HILBORNE OBE, Chief
Executive of The Wildlife Trusts
READ MORE

WASTE-REDUCING INITIATIVES IN
CANADA

Natural Habitats Fund


GLOW WORMS AMONG BENEFICIARIES
OF 435,000 SUPPORT TO THE
WILDLIFE TRUSTS SINCE 2001

Our key figures


2014 performance highlights

99%*

100%

of our sourced timber


meets Forest
Stewardship Council or
equivalent standards
2013: 97% (based on 2012

of our sites have been


assessed for biodiversity
risk
2013: 100%

performance report)
* based on 2013 performance

Progress against targets

95%

of waste diverted from


landfill
Targets

2014: 96%

Target achieved

2015: 98%

Behind schedule

VIEW OUR FULL PERFORMANCE AGAINST TARGETS

28%

reduction in water
consumption since 2012
Targets

2014: 15%

2015: 25%

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

A CHANGING ENVIRONMENT

PROTECTING THE
ENVIRONMENT

A changing
environment
Waste

We understand the balance between economic and environmental value.


Resource availability and climate change affect business decisions every
day. The increasing price of materials and energy puts resource efficiency
at the top of our agenda.
Ensuring the availability of key materials over the long term is a rising concern and that is why we
are looking at environmental impacts across our value chain. This includes responsible timber,
water management, minimising waste and preserving biodiversity.

Water
Biodiversity
Performance data

ENVIRONMENTAL MANAGEMENT
Our robust environmental management systems (EMS) are fully
integrated into our wider corporate risk management
processes and help us provide assurance to our customers
and suppliers. All our established operations in the UK, the
Middle East and North Africa are certified to the ISO 14001
international environmental standard, as is Carillion Canadas
Roads Maintenance business in Ontario.
The Carillion EMS (ISO 14001 certified), which includes our
Sustainability Leadership Plan and our environmental policies,
helps us to identify and manage our environmental impacts.
Central to managing environmental risks is our Environmental
Policy(PDF 104 KB), which shows Carillions international
commitment to environmental stewardship. It is used by each
unit to set targets based on overarching 2020 strategy targets.
Progress is monitored monthly within our wider sustainability
governance framework.
Since 2012, we have used a web-based data management
system, Capture, to collect, manage and analyse sustainability
and safety data. We are reviewing the information on a
monthly basis and using it to pinpoint risks and tackle issues as
they arise. We raise internal awareness through our wider
employee engagement channels, as well as dedicated
environmental management training.

100%

Certification to ISO 14001


international
environmental standard
at established operations
in the UK, the Middle East
and North Africa

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

WASTE
WASTE NO MORE

PROTECTING THE
ENVIRONMENT

A changing
environment
Waste
Water
Biodiversity

GREENER RAILWAYS

We strive to eliminate waste across our contracts and are determined to


send zero non-hazardous waste to landfill by the end of 2015.
We seek ways to reduce and reuse materials, from food waste anaerobic digestion to reused
materials. Waste reporting includes all activities undertaken within the Carillion Group and all
geographical regions in which we operate. We collect data on waste diverted from landfill (e.g.
waste reused and recycled thereby extending its lifecycle) from across our business units to
produce an international total.

Performance data

WASTE PRODUCED AND DIVERTED FROM


LANDFILL
Waste produced

2,411,509
tonnes

(2013: 1,141,246)

Waste diverted

1 million

saved using site and


accommodation cabins
as opposed to new
buildings at the Royal
Liverpool Hospital

2,278,712
tonnes

(2013: 1,043,192)

Our performance data

WASTE PRODUCED AND DIVERTED FROM


LANDFILL

In Oman, Carillion Alawi won the sustainability initiative for its


War On Waste campaign at the Construction Week Awards.
The campaign, which targeted waste from offices, bar
reinforcement, timber, polythene, rock breaking, excavation
work, clothing, pallets and packing material, was commended
for being a simple yet very effective initiative which achieved
great results reducing waste to landfill by 55% over two years.

95%

of waste diverted from


landfill

Carillion is
consistently and
constructively
responsive to the
Thameslink
programme
sustainability agenda
and is an active
participant in
sustainability
activities, initiatives
and forums. Theyve
developed several
best practice case

Waste no more
The new Police headquarters at Niagara, Canada
incorporated a basement secure parking area. The waste
materials were turned into a resource and reused on site.
Any spare was used locally, saving more than CA$1 million
(590,000).
On the Alberta Roads project, 400 tonnes of waste was
diverted from landfill by stockpiling and reusing the
aggregate, and lorry movements as well as carbon have all
been reduced.
In Viking, Alberta, a vehicle salvage initiative is saving
money and reducing waste. When one fleet vehicle is
retired, the unit is kept as a donor vehicle to supplement
the working fleet with parts and tyres. A single donor
vehicle can often be used to maintain four or five others,
saving up to CA$5,000 (3,300) in replacement parts per
vehicle.

studies of an
innovative nature,
including that of the
LED lights, which has
already been shared
with another part of
Network Rail bringing
wider benefit to the
business. Overall
they have a proactive
can-do approach to
environmental and
sustainability matters
that instils strong
confidence in their
ability to deliver
against our
sustainability
agenda.
ANNAMARIE
COMPTON,
Environment
Manager, Network
Rail

Sustainability
Initiative
Award
for Carillion Alawis War
On Waste which
reduced waste to landfill
by 55% over two years

VIEW ALL CASE STUDIES

Greener railways
When the team at Cricklewood Railway Sidings reused
12,400 tonnes of virgin material, they saved 113,000 and
diverted 99% of waste from landfill.
As part of the Thameslink programme at Cricklewood, a
train-stabling facility was designed to crush on-site ballast
throughout the project. The materials were reused in
accordance with Carillions Material Use Plan to provide
type 1 gravel and sand for use on the site.
This smart thinking avoided 650 return lorry journeys
totalling 13,000km, reduced transport CO2 emissions by 10
tonnes and minimised the heavy-load impact on the local
community.

In partnership with Network Rails supply chain, 100% of


concrete sleepers are being reused, which is expected to
save the project a further 176,000 and 400 tonnes of
embodied carbon.

VIEW ALL CASE STUDIES

CEO Environmental Sustainability Award to Chipping Campden


Cutting Reactive Works

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

WATER
SAVING WATER, CARBON AND WASTE

PROTECTING THE
ENVIRONMENT

A changing
environment
Waste
Water
Biodiversity
Performance data

SAVING WATER IN DROUGHT REGIONS


OUR WATER CONSUMPTION

Pressure on water resources is growing. While 2014 was a tough year for
flooding in the UK, drought prevailed in many of our operating regions
such as the Middle East and North Africa region.
We have active Water Audits and Reduction Plans across our business units on top of measuring
our international usage. Innovation in water use reduction leads to project efficiencies and better
returns for clients. In MENA, where water is scarce and desalinisation costly, we have conducted
audits and installed waterless urinals. We also continue to use a curing compound for concrete
across building projects, which significantly reduces water use and a network of trained water
champions drive behaviour change.

Saving water, carbon and waste


Thousands of plastic bottles and transport miles have been
saved thanks to clear thinking on the Shell project in Ras
Laffan Industrial City (RLIC) project north of Doha.
Water used to be delivered to workers in the plant in 30litre insulated containers and we were delivering in excess
of 7,500 bottles per day. With our water sampling
expertise, we determined that the water available from
RLIC was of drinking quality. Following blind tasting
sessions, tap-source water was favoured so we created a
worker drinking station in an old building. This follows the
earlier introduction of water dispensers against 350ml
bottled water.

Harvesting
rainwater
At Harvey Hadden, we
are constructing a
swimming pool to
Olympic standards. Once
the pool structure and
balancing tanks were
complete, the team
considered how they
could reduce the amount
of mains water that was
required to fill the pool
ready for testing.
A worker engagement
idea resulted in
harvesting rainwater into
the balancing tanks, then
pumping the collected
water into the main pool.
The team pumped
450m3 of water from
balancing tanks, which in
simple terms was the
equivalent of flushing
the toilet 75,000 times.

This simple idea really


showed that through
engagement we could
reduce the impact on
water usage by
harvesting the water
naturally.
VIEW ALL CASE
STUDIES

7,500 plastic
bottles

VIEW ALL CASE STUDIES

WATER CONSUMPTION (INCLUDES


OPERATIONAL AND CARILLION OFFICES)
Canada

0%

MENA

78%

saved thanks to a new


worker drinking station
on Ras Laffan Industrial
City project, Doha

UK

22%

Our performance data

WATER CONSUMPTION

Saving water in drought regions


The Madinat Jumeirah project in Dubai has implemented
several sustainability initiatives during construction,
resulting in water, carbon and cost savings. They include:

use of non-potable groundwater to meet the


moisture content requirements during backfilling,
reducing fuel consumption from water tankers and
saving approximately 462,962 gallons of fresh water
or AED 54,280 (10,000);
around 46,000m3 of excess excavated sand was
given to Dubai Municipality to replenish Umm
Suqeim beach; and
connecting to the Dubai Electricity and Water

We are constantly
seeking new ways of
working with
materials, technology
and clients, despite
often very
challenging
circumstances; its
critical that we do
whatever we can to
reuse waste material
and to continue our
significant progress
in reducing water
use.
SHAUN CARTER,
Group Strategy
Director, Carillion Plc

Authority mains, reducing fuel consumption


associated with using generators and saving
approximately AED 2 million (c. 360,000).

VIEW ALL CASE STUDIES

OUR WATER CONSUMPTION


We measure and record water use on a quarterly basis. Across
our operations, we have robust water reduction plans to help
each contract identify activities that use significant water and
develop an action plan to reduce consumption.
In our own offices we have direct control and influence over
our water use and have collected data on this across our
operations since 2012. The Carillion Estate water consumption
increased by 12% compared to 2012 baseline, due to the
acquisition of new buildings. Our focus for 2015 will be on
driving behaviour change among employees.
Our water consumption on construction sites decreased in
2014 by 28% compared to the 2012 baseline year, reflecting
our focus on using water-saving technologies more widely,
and continuing to recommend sustainable designs such as
rainwater harvesting to our design and construction clients.
Going forward, we will learn from successful water reduction
techniques applied in our Middle East business.

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


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COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

BIODIVERSITY
WILDLIFE ALONG A RAILWAY

PROTECTING THE
ENVIRONMENT

A changing
environment
Waste
Water
Biodiversity

NATURAL HABITATS FUND


FRESHWATER HABITATS TRUST

Our construction sites can have an impact on wildlife habitats. We try to


make our overall legacy a positive one by creating biodiverse
environments for a range of species to thrive.
Every single contract has to undertake a biodiversity risk assessment and our work with the UK
Wildlife Trusts has yielded some inspiring results from saplings along the UKs A1 to shoreland
clean-ups in Canada.

Performance data

Wildlife along a railway


Carillion was assigned to a large landslip in Gloucester,
involving excavated slip material to a gravel pit 30 miles
away. Working with Network Rail and Arup, none of the
44,000m3 slip material left the site, 326,000 miles of
vehicle movement were saved and 12,000 trees were replanted to form deciduous woodland on site. This improved
local biodiversity, supported a local forestry industry,
improved the area for residents and helped offset the CO2.
Existing non-native trees were also harvested during the
works with the tree stumps used to create a protective
structure, hibernacula, on site. The site has been awarded a
Network Rail Star Award for excellence in health, safety and
environment.

Preserving
biodiversity in
Canada
Twelve of our staff
cleared debris in the park
in Black Creek, Toronto.
Thirty bags of garbage
were collected within a
2km radius as part of the
Great Canadian
Shoreline Clean-up
programme.
Our Forces Base Borden
project supported the
Bear Creek Sanctuary
through donations of
building materials and
will be extending their

volunteering in 2015.
Bear Creek provides a
safe haven for unwanted,
abused and injured
animals.
VIEW ALL CASE
STUDIES

CEO Environmental Sustainability Award to Chipping


Campden Cutting Reactive Works
VIEW ALL CASE STUDIES

NATURAL HABITATS FUND


Now in its 13th year, Carillions Natural Habitats Fund has
helped 72 habitat and conservation work ventures, awarding
over 435,000 in grants to date. In 2014, over 20 applications
were received and after careful consideration, six grants of
5,000 each were awarded to biodiversity projects run by
Wildlife Trusts. These projects create opportunities for
volunteering, as well as bringing biodiversity and community
benefits:

Glow worms in Staffordshire: Working with Staffordshire


Wildlife Trust on Highgate Common Nature Reserve, we
are helping restore areas of heathland for wildlife
including solitary bees and wasps, as well as glow
worms. The reserve is now a Site of Special Scientific
Interest and we were awarded a gold membership
certificate for our contribution.
Wandle Wetlands: London Wildlife Trust worked to
improve the wetlands at Poulter Park and Spencer Road
Wetlands Nature Reserve in Sutton, South London.
Rainton Meadows: Our volunteers helped Durham
Wildlife Trust on their Rainton Meadows Nature
Reserve with a complete overhaul of a dilapidated bird
hide.
Willington Gravel Pits: A former gravel pit transformed
by Derbyshire Wildlife Trust into a 30-hectare Nature
Reserve, rich in bird life benefitted from new, accessible
viewing platforms.
Exeter Wild City: We worked with Devon Wildlife Trust
to enhance green spaces in Exeter and work with
schools to make their grounds more wildlife-friendly.

We all benefit from


having more contact
with the natural
world. Our mental
and physical health is
greatly improved by
spending time
outdoors and
enjoying the sights
and sounds of wildlife
whether in a city park
or on a beach. The
Carillion Natural
Habitats Fund
demonstrates the
companys
understanding of the
importance of our
work and
commitment to
ensuring that we can
continue to benefit
from having wildlife
in our lives.
STEPHANIE
HILBORNE OBE, Chief
Executive, The
Wildlife Trusts

435,000
awarded to 72 habitat
projects through the
Natural Habitats Fund
since 2001

Freshwater Habitats Trust


Freshwater plants and animals are among the planets most
threatened group of species, so we partnered with the UK
Freshwater Habitats Trust to help protect wildlife in ponds,
rivers, streams and lakes.
Through this new partnership, our people support projects
that benefit biodiversity and local neighbourhoods,
contributing to two of our positive outcomes in Protecting
the environment and Supporting sustainable
communities. Our work includes supporting pioneering
eDNA analysis to detect the presence of rare species in
freshwater areas, to improve both operational efficiency
and species protection.

Carillions 2020 sustainability strategy is leading


the way in demonstrating how companies can
make a significant contribution to addressing the
root causes of environmental decline, both
through their company practices and through the
positive engagement of their people. We are proud
to announce our new partnership with Carillion,
and believe that by working together we can start
reversing the current trends, and restore rich and
natural freshwater communities.
DR JEREMY BIGGS, Director, Freshwater Habitats
Trust

VIEW ALL CASE STUDIES

Making tomorrow a better place

SUSTAINABILITY REPORT 2014


OUR BUSINESS

CUSTOMERS &
SUPPLIERS

PEOPLE

COMMUNITIES

LOW-CARBON
ECONOMIES

ENVIRONMENT

PERFORMANCE DATA
WASTE PRODUCED AND DIVERTED FROM LANDFILL
SIGNIFICANT SPILLS

PROTECTING THE
ENVIRONMENT

A changing
environment
Waste

WATER CONSUMPTION

Note: MENA stands for Middle East and North Africa.

Waste produced and diverted from landfill

Water
Biodiversity
Performance data

WASTE PRODUCED (tonnes)


2012

2013

2014

894,714

1,056,519

2,306,665

98,344

77,507

87,878

Canada

6,652

7,220

16,966

TOTAL

999,710

1,141,246

2,411,509

UK
MENA

WASTE DIVERTED in tonnes (% of waste diverted in brackets)


2012

2013

2014

807,770 (90)

1,004,196 (95)

2,218,038 (96)

MENA

50,155 (51)

36,428 (47)

47,745 (55)

Canada

5,002 (75)

2,568 (36)

12,929 (76)

TOTAL

862,927 (86)

1,043,192 (91)

2,278,712 (95)

UK

All data is collated on a project basis and reported monthly.

Significant spills

2012

2013

2014

Number of spills

10

Litres spilled (major)

314

24

53

281

Number of minor spills1

1. Litres were not recorded because they were insignificant.

Water consumption (includes operational and Carillion


offices)
m3

m3

2012

2013

2014

UK

168,056

187,658

131,447

MENA

544,393

424,421

462,278

Canada

5,120

2,368

2,431

TOTAL

717,569

614,447

596,156

This data includes water used on our construction sites as well as on Carillion estate-owned
properties where we have direct control and influence over our water use.
Our water KPI is for water used on our construction projects, normalised by contract turnover. We
have achieved a 28% reduction in 2014 against a 2012 baseline. We have increased water
consumption by 12% on the UK and Canadian estate-owned properties.

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