Carillion’s industry-leading environmental programme, initiated in 1994, has delivered significant business benefits and been a catalyst for innovation. In 2000, we have broadened and extended our environment programme to form the foundations of a sustainable development programme.
We have received acclaim across a range of our activities, some of the highlights include:
2000 Targets and Indicator Performance
As an integral part of our sustainability programme we set targets each year. We are pleased to report that we substantially achieved 79% of our targets (of which 69% were fully achieved) in 2000. This compares with 70% substantially achieved and 55% fully achieved in 1999. For the first time we have developed and reported on the key indicators that support our targets and are most relevant to our business activities. These include the level of our investment in environment protection, CO2 emissions, waste reduction and participation in the Considerate Constructors scheme. In 2001 we will be revising these indicators in the light of our experience this year to optimise their relevance to our activities. Our indicator performance and target achievement are presented separately.
Audit of 2000 targets
Of the 71 targets set across all the Carillion Businesses 49 (over 69%) were fully achieved and a further 7 (more than 9%) were substantially achieved (scoring more than 8‡ out of 10). On this basis the number of targets which were fully or substantially achieved amounted to 56 (79%). 2000 Target achievement of each target is presented separately. High level of target achievement is attributable to Carillion experience in, and commitment to, working to achieve target performance as well as to the commitment of business group environment representatives. Non achievement of targets is attributable to the following factors:
32% of Carillion’s 2000 targets were verified to ensure that target audit results are a true reflection of Carillion’s level of attainment in achieving its targets. The verification statement with recommendations is presented separately.
Evaluation of our progress
Detailed information on our environment, economic and social impacts are presented in the Performance Section. Our contribution to sustainable development is a mixture of economic, social and environmental impacts. Not only do we need to understand our impacts in isolation, we also need to know how they interrelate with each other.
Our impact on the Economy
Indirectly our infrastructure, construction and facilities management activities support economic activity in a range of different sectors. Construction also plays a crucial part in regeneration, and, in support of the Government’s activities to revitalise brown field sites, this year we have published our contaminated land policy.
Through our partnerships with other companies we have leveraged in capital for the provision of public sector infrastructure for 14 Private Finance Initiative (PFI) projects financially closed to date.
Carillion’s direct economic impact involves the distribution of the cash value generated by our activities. Payment is made to employees and suppliers which, along with community donations, supports the economies of local communities. National economies are supported by the payment of taxes. The distribution of Carillion’s cash also impacts the financial sector through the operation of our pension schemes, debt repayments, dividend payments and the investment of our insurance premium(s).
At a human level
We recognise the importance of working with local communities and that our employees are our most important resource and we were pleased to be asked to participate in the Business in the Community ‘Winning with Integrity’ initiative. This two year initiative builds upon the findings of the BITC’s Business Impact Taskforce and will be measuring and reporting our performance under five main headings:
To support this initiative and to improve our understanding of sustainability issues 6 business groups (Carillion Professional Services, Carillion Building, Infrastructure Management + Capital Projects, Carillion Services, Carillion Private Finance) have developed stakeholder dialogue plans to action in 2001. Implementation of these plans will enable Carillion to learn practically how it is best positioned to contribute innovatively to improving quality of life.
| Our key social impacts | Our activities and innovations in 2000 |
|
|
|
|
|
|
|
|
On the environment
We initially focused on the environmental impacts of our construction activities and developed an environment programme because the environmental impacts of construction can be significant. Carillion is not solely responsible for these impacts, but is the most visible because of our presence on sites or at facilities.
2000 saw the proportion of business turnover certified to ISO 14001 increase to [75%]. We were placed top of the Major Contractors Group survey and in the top quintile of companies in the West Midlands Business in the Environment survey of corporate environmental engagement.
The evolution of our environment to sustainability programme has resulted not only in the improved management of our environmental impacts but also in innovation. Some are listed below.
| Our impacts | Our innovations and activities |
|
|
|
|
|
|
Supply Chain Innovation Contributing To Sustainable Development
At the Princess Margaret Hospital Relocation project in Swindon, a PFI 56,000sq.m acute general hospital, the project team is using sustainability principles to stimulate innovation. The project’s key subcontractors and suppliers were involved in the design of the project and were encouraged to improve the sustainability performance of their products.
In collaboration with a concrete cladding company and a window supplier, we developed an innovative new building facade system with environmental, health and safety and cost benefits. Instead of brickwork facades, pre-cast concrete panels were specified. These are supported and fixed to the frame from inside the building. Both windows and glazing were installed off-site at the concrete cladding manufacturer’s yard. Pre-casting the concrete increases its recyclability and saves material costs. On site, this system eliminated the need for scaffolding, a significant health and safety hazard, and the need for scarce skilled bricklayers. Further efficiencies resulted in less on site labour, as well as a reduced number of vehicle deliveries associated with faÁade construction.
Progressing towards a sustainable business
In summary, we made good progress towards undertaking our activities in a way that contributes to sustainable development in 2000. We recognise the need to enhance quality of life for all those on whom we impact because this will be crucial to Carillion’s survival in the long term.
Through setting objectives and targets and increasing our engagement with our stakeholders we are improving our understanding of our sustainability impacts. A greater understanding will enable us, as a business, to foresee potential risks and capitalise on the opportunities that will arise as the UK and the world moves towards more sustainable patterns of consumption.
