Vision and Strategy
Our Vision
Carillion has been operating successfully for 18 months since the demerger from Tarmac. Our vision and strategic objectives set out at the demerger include the vision we published in last years report:
"Our vision is to be a sustainable construction to services company which delivers growing shareholder value with transparency and accountability in our environmental and social performance. We also wish to explore opportunities to use sustainability as a driver for innovation and new business."
Framework for Innovation: Developing New Strategic Objectives In Line With Government and Best Practice
During 2001 we will be developing new strategic objectives to guide the business from 2002 onwards. These will be informed by our understanding of our sustainability impacts, external comment, corporate social responsibility best practice and will be consistent with Governments definition of sustainability. Their development will build upon the good ideas in the company, with a mixture of employee contribution along with Board level direction. Where possible stakeholder comment will be solicited on our strategic objectives, since we recognise the imperative of ensuring our business contributes to improved quality of life in the built environment. Chris Baines, an independent adviser on Carillions Sustainability Committee, presents his view of the sustainability challenges and opportunities Carillion faces.
In Line with Government
Our objectives will be consistent with the definitions of sustainability set out by the Government in its sustainable development white paper A Better Quality Of Life which are:
Beneath that definition, the Government defines sustainable construction as:
In Line With Corporate Social Responsibility Best Practice
Internationally the Global Reporting Initiative (GRI) sets out the areas of responsibility and the impacts that companies have on their stakeholders. In the UK, Business in the Community is an association that recognises corporate impacts and seeks to improve business impact on the community. Business in the Communitys (BITC) Business Impact Task Force reported on the main areas where business has a significant environmental and social impact on the world. Carillion is a pilot company participating in the follow up to BITCs initiative "Winning with Integrity." As part of our involvement we have undertaken to measure and report our performance against a range of indicators under five main headings:
These headings have synergy with the Global Reporting Initiatives guidelines and both will be used to assist our choice of strategic objectives.
Developing 2002 Strategic Objectives
In order to report in the way required for Winning with Integrity, we shall engage all our business in our strategic objectives, equating all activities to business objectives and the necessary monitoring and reporting of sustainability.
As a construction to services company our strategic objectives need to adopt a broader definition than sustainable construction to accommodate the services element of our activities.
Sustainable Built Environment
For the construction element of our business, we will seek to engage with planning authorities and clients when we consider that a proposed construction is an inappropriate use of resources, in an unsustainable location (e.g. flood plain, or heritage site), or if the resulting infrastructure does not enhance quality of life or enhance social inclusion. We advocate the use of sustainability assessments within the planning process to ensure proposed construction does contribute to both local and global quality of life.
Obstacles to overcome in the drive towards sustainability
These continue to be the focus on short term planning within traditional construction sector, lack of sustainability awareness, unknown or perceived cost, traditional cultural barriers as well as structural arrangements, such as contract incentives or British Standards. The targets set for 2001 will assist in helping to overcome these barriers to improving our sustainable development performance.
Carillion Values: Contributing to Innovation
Carillions values of Openness, Collaboration and Mutual Dependency are resonant with our drive to be a sustainable company. These values guide how we pursue our sustainable development activities. It is only by being open about our activities and their impacts, and recognising our mutual dependency on the earth and its lifes support systems (air, water, soil, and sunlight) and each other, that we will be able to collaborate effectively with others. Our collaboration with each other, internally and externally, to improve quality of life will initiate a process of innovation and lead to our provision of improved products and services.
Carillion has run Valuing the Future workshops with 90 of the senior management development programme which focused on how values link to business strategy and the behaviours required to make the values 'live'. As part of the workshops three implicit values arose and are being consulted on: Innovation; Professional Delivery; and Sustainable Profitable Growth. Workshops have resulted in action plans to take the values forward both internally and with customers and suppliers.