We aim to ensure
that our economic impact on others is a positive one
We fully recognise that we have
the potential to impact upon others. This can be from the
provision of adequate salaries to ensuring that shareholders
receive value. Therefore, to truly understand our economic
impact on other please refer to the following:
We spent approximately
85% of our turnover on purchasing goods and services
with approximately 9,000 suppliers and sub-contractors
Carillion have been recognised
externally for our performance. We were the only top Construction
to Services Company featured in the first issue of the FTSE4
Good Index, a financial index of companies achieving certain
standards in corporate social responsibility.
We received an excellent 4* rating
(maximum is 5*) in the national Green Card Survey (carried
out for institutional investors, representing £440 billion
in investments). The survey assesses performance in the areas
of environment, health and safety, social and ethical behaviour.
Our sector average was 3*.
Delivering Shareholder value
To deliver true shareholder value
we must focus on developing long-term profitability, to be
achieved by developing long-term relationships, watching developments
in the marketplace and acting with the whole group in mind.
With the ever-changing marketplace
we understand that to sustain profits we need to be fast,
flexible and willing to respond to change.
By more clearly highlighting
the economic benefits of environmental protection we hope
to increase the value we provide to shareholders.
"The University has high
expectations in the context of sustainability. We were pleased
to find that Carillion's proposals met those expectations
and this was an important factor in Carillion's selection
as our private sector partner in the development of the de
Havilland Campus."
Professor Ann Smith, Co-ordinator
of the University of Hertfordshire's
Environmental Strategy
This indicates that environmental performance
can positively influence the economic performance of the group.
Environmental Accounting
As our sustainability programme
continues to grow and become fully embedded into our business
culture there is a need to identify the true business case
for sustainability. Therefore, we are continuing to develop
Environmental Accounting within Carillion.
We were the first in our sector
to publicly produce an Environmental Financial Statement in
2000 and we have continued to further research and implement
the principles of environmental accounting. Indeed in order
to communicate the best practice knowledge in environmental
accounting that we have gained, Casella
Stanger delivered an environmental accounting
presentation on behalf of Carillion at an Environment Agency
and Association
of Chartered and Certified Accountants(ACCA)
sponsored event.
The aim of the environmental
accounting programme is to ensure the link between financial
and environmental performance becomes more visible.
We are currently involved in
a Partners in Innovation Project focusing on Sustainable Accounting,
which will be completed in December 2002.
The project involves input from
Carillion, Casella Stanger, Forum for the Future, and CIRIA.
The objectives
of the project are to:
Develop a
method for assessing the business case for sustainable
construction
Disseminate
findings widely to encourage the use of sustainability
accounting techniques and methods
Contribute
to encouraging the adoption and use of more sustainable
construction activities and practices
The following are extracts from
the outline financial statements currently being generated
within the group:
details of
the operating costs of the new facility in Wolverhampton
Our project
staff can have a positive financial impact on the communities
in which we work. For example:
At the Dartford and Gravesham
Hospital contract, construction staff donated a cheque
for £1,649 to the Ellenor Foundation. The foundation
looks after the needs of cancer patents. This was one
of many cheques raised by the staff during the construction
of the hospital.
The new Norfolk
and Norwich Hospital received money raised by Crown
House Engineering site staff. The majority of the funds
raised were donated to the Contractors Help Improve
Children’s Surroundings (CHICS) fund. The money
(which has totalled approximately £12,000 – including
contribution from the main and other contractors) will
provide medical equipment, colour TVs, other leisure
items and toys.
Please refer to the following
case studies which give examples of financial implications
of environmental initiatives:
Government Communications
Headquarters – Cheltenham
