Responsible Business, Positive Outcomes - Strategy for a sustainable business - Kier
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Responsible Business, Positive Outcomes Strategy for a sustainable business
Contents
02
Strategy for a sustainable business
03
Identifying risk and opportunity
04
Our 2020 roadmap
06
Governance
08
People and communities
10
Marketplace
12
Environment
GOVERNANCE PEOPLE AND COMMUNITIES MARKETPLACE ENVIRONMENT
Business in the Accident incidence Customer Reduction in carbon
Community (BITC) rate (AIR) satisfaction dioxide emissions
91% 130 91% 14%
(2016: 87%) (2016: 211) (2016: 90%) (2016: 27%)
Kier Group plc | Strategy for a sustainable business 2018 1
Strategy for a Identifying risk
sustainable business and opportunity
Operating a safe and sustainable business is one of Kier’s six strategic priorities. Kier is in a strong position to meet the demand within our sectors. We must
The material choices we make can have a lasting impact on the world around us; we continue to be dynamic in our approach to risk management.
strive to make this impact a positive one.
By seeking innovative means of delivery – share and expand our services. This Our changing world presents risks and will also require more homes, and these to risk management, to ensure Kier is a
and working collaboratively with our will deliver enhanced returns for our opportunities for Kier. The population will need to be served by physical and robust and thriving business.
suppliers, contractors and clients – we shareholders and create value for society of the UK is set to grow; by 2024, the digital shopping facilities.
can maximise the generation of positive and the environment. We developed this number of people aged over 75 will With the increasing importance of
social impact and minimise our negative strategy with stakeholder engagement, have increased by 35%, and the number Kier has the capability to build retail and sustainability in the bidding process – and
environmental impact. Our strategy for allowing us to understand the issues of children in the 5 to 15-year bracket distribution centres, and to provide the ethical business practice being important
a sustainable business, Responsible most material to them and address their by 13%. Investment in infrastructure – digital infrastructure to support home and to our stakeholders – sustainability
Business, Positive Outcomes (RBPO), priorities in our decision-making. including social infrastructure, such business broadband connections. All of requirements were included as a new
outlines our plans to achieve this. It has as hospitals and schools – is critical this puts us in a strong position to meet principal risk and uncertainty for Kier in
four key themes, (see page 1 and 4/5), This update to RBPO comes midway to support economic prosperity for our the demand within our sectors. We must 2017. This also reflects the fluid regulatory
which support the financial targets set for through Vision 2020. We have reviewed expanding population. A larger population continue to be dynamic in our approach environment in which we operate.
the group’s business strategy. our progress against our commitments
and outline our next steps. We have made
Kier is a leading investor, builder and significant progress against our strategy
maintainer of the UK’s essential assets. and met six of our targets ahead of plan;
We operate across a wide range of these targets have been revised to drive Strategic priorities Key performance indicators
sectors, including defence, education, further performance improvements and
Claudio Veritiero health, highways, housing, industrial, enhance our positive impact.
power, property, transport and utilities. perate a safe and
O Shareholder
Group Strategy and Corporate sustainable business returns
With around 18,000 direct employees, Updates on the delivery of the targets d
Development Director veste
UK and overseas operations, and a in this strategy document can be found ccelerate growth to be
A l rein
it a Safety – Accident
large number of subcontractor and on our website, as well as in Kier’s annual p ated
a top-three player in our Ca cre Ca incident rate (AIR)
supplier partners working with us, it is of report and accounts, and corporate chosen markets pi ta l pit
fundamental importance to operate safely responsibility report. Ca al
Customer
Achieve top-quartile
em
and sustainably; this is one of our six experience
plo
performance and efficiency
strategic priorities. Services Property
yed
Employee
Provide sector-leading
engagement
Our vision is to be a world-class, customer- customer experience
Pe
ty
Safe
ople
focused company that invests in, builds, Capital Creating Value Employee
ttract and retain
A invested
maintains and renews the places where customer created retention
highly motivated, high- value
we work, live and play. To achieve this, performing teams Sustainability
we embarked on an ambitious plan
Embrace innovation Syste m s
– Vision 2020 – to grow our market
ed
Financial:
and technology across
loy
Construction Residential Six financial
mp
our business indicators
le
a
Ca pit
pit
al c Ca
reate d
d te
nv es
l rei
Capita
Customers Funding People
Operating model Sustainability Innovation
Market and sector performance Health and safety Contract management
Principal risks and opportunities
2 Kier Group plc | Strategy for a sustainable business 2018 Kier Group plc | Strategy for a sustainable business 2018 3
Findout
Find outmore
moreon
on our
our website
website at www.kier.co.uk
www.kier.co.uk
OUR 2020
2020 ROADMAP
ROADMAP 2018 2019 2020
Governance BUSINESS
BUSINESS ETHICS
ETHICS
Conduct completed
Rollout of Code of Conduct
Rollout completed Review and update training as necessary 100% of relevant employees
100% trained and
employees trained and aware
aware of
of Code
Code
Our governance processes
support Kier’s values and
STAKEHOLDER
STAKEHOLDER
and culture,
culture, and help
and help us
us deliver ENGAGEMENT
ENGAGEMENT
Annual submission
submission to
to Business
Business in
in the
the Community CR Index Annual
Annualsubmission
submissionto
toBusiness
Business in
in the Community CR
CR Index
Index Achieve 90% in
in BiTC
B TC CR
CR index
index
deliver2020
Vision Visionand
2020 and
Responsible
Responsible
Business, Business,
Positive Outcomes. Annual stakeholder engagement forum
forum Annual stakeholder engagement forum
forum
Positive Outcomes.
People and SAFETY, HEALTH
SAFETY, HEALTH
AND WELLBEING
WELLBEING
Enhanced supply chain partner training Additional frontline manager training. Introduction of leading indicators Zero accident incidence rate
communities Introduce
Introduce health
health risk surveillance
surveillance Review and improve health risk surveillance
Healthy people and
and
and sickness
sickness absence programme
programme and sickness absence programme 10% reduction in
10% in sickness
sickness absence
absence
communities are vital to the
success
the of our
success business.
of our business.
Kier, we
At Kier we work
work to
to develop
develop
workforce,
and protect our workforce
ENGAGEMENT
ENGAGEMENT Introduce career mapping and training for core skills Continue
Continue to
to widen
widen availability
availability and reporting of
of training
training 5 days training per employee
AND RETENTION
to deliver
and deliver positive
positive
RETENTION
5 days
social impacts. Full
Full employee survey and
employee engagement survey andresults
results survey –– review
Pulse survey review and
and revise
revise
rewards programme and other actions
as appropriate
Extend
Extend Kier’s
Kier’s flexible employee benefits
benefits 75% employee engagement
Embed our balanced business priorities
priorities
SOCIETY
SOCIETY world: train 200 Kier ambassadors
Shaping your World: Continued training and support on making a positive
Generate
Generate positive
positive social
social impact
impact equivalent
equivalent to 10% of
of turnover
turnover
and
and engage
engage with
with 10,000
10,000 school
schoolchildren
children per
per year
year social
social impact.
impact. Develop
Develop policy on social
social enterprise
enterprise
Marketplace
Marketplace SUSTAINABLE
SUSTAINABLE
SUPPLY CHAIN
CHAIN
Improved procurement and commercial processes Responsible
Responsible procurement
procurement audit:
audit: Responsible
Responsible procurement
procurement audit:
audit:
We work with a diverse to address Modern
modern Slavery
slavery 60%
60%of
ofexisting
existing preferred
preferred suppliers / 80% of new preferred suppliers
preferred suppliers 80%
80%of
ofexisting
existing preferred
preferred suppliers / 90% of new preferred suppliers
preferred suppliers
range of subcontractors and
80% 80% 90%
suppliers to deliver projects Develop and launch compliance audit programme Audit programme expanded to subcontractors 60%
and services. Our aim is to
maximise the positive social
and economic impact in the CUSTOMER
CUSTOMER
Review Group
group-wide
wide compliments and complaints procedure
SATISFACTION
SATISFACTION Customer
regions and communities
thatserve.
we we serve.
Key account management plans
Key
in place,
plans and
place Group-wide
group-wide
and managers
managers
satisfaction rate 90%
Develop
Develop and
and launch
launch quarterly
quarterly results dashboard
dashboard
Environment CARBON Reduce energy consumption by
Reduce 30%by
by 30% by2030
2030
Identify
Identify more
more opportunities
opportunities for energy
energy
Minimising the negative efficiency on projects 30 by 30
impact we have on the Deliver business cases for energy efficiency projects
environment can deliver
efficiency benefits that
75%
improve our operations
and stimulate innovative
WASTE Introduce
Introduce resource
resource management and circular economy
economy plans
plans 50% of
50% of projects
projects to have resource
resource management plansininplace
managementplans place 50% 75%75%
of projects to have
of projects resource
to have
management plansplans
resource-management in place
in place
solutions.
Identify
Identify packaging
packaging waste solutions
solutions Improve
Improve opportunities reduction in
opportunities for waste reduction in
design and through improved materials handling
4 Kier Group plc | Strategy for a sustainable business 2018 Kier Group plc | Strategy for a sustainable business 2018 5
Governance
Kier has embedded RBPO into the way it does business by developing
governance processes that support our values and culture. Our vision is to
continue working with our stakeholders to identify the issues for our business
and in our relationship with them. We will set clear strategic goals, report our
progress each year and subject this to external scrutiny and assurance.
STAKEHOLDER ENGAGEMENT 2020 target
Our 2020 target is a score of 90% in the Business in the
Community (BITC) Corporate Responsibility (CR) index. We 90% BITC
aim to maintain this performance and recognise potential
areas for improvement, to create better outcomes for our
business and stakeholders. 2017 performance:
Annual independent review by BITC, score
Continued stakeholder engagement is key to Kier, as it of 90%. This target remains, and our
allows us to recognise the issues our stakeholders see performance in 2017 was 91%
as material to their relationship with Kier. We meet with BUSINESS ETHICS 2020 target
Continue our process of stakeholder
stakeholders on an annual basis, to provide more detail
on these issues. engagement
Since the launch of the Code of Conduct in 2016,
all employees have had a copy and training made
All relevant employees
available to them. Training is now incorporated into trained on the
inductions for new starters. We will continue to
deliver training across the group through toolbox
Code of Conduct
talks, training sessions and online learning modules.
We remain committed to responding to any incidents 2017 performance:
reported to our whistleblowing service within our 6,000 employees have received in-depth
REPORTING AND ASSURANCE 2020 target efine response ti e
We have adopted the latest Global Reporting Initiative training so far
(GRI) standards. We will continue to adapt our Integrated reporting to
reporting and aim to reach our target of fully integrated GRI standards
reporting, with assurance, in our annual report and
accounts by 2020. Our reporting guidelines are
available on our website. Our corporate responsibility 2017 performance:
report summarises our performance, our future plans Standards adopted and reporting 2020 target
and our strategy. guidelines published Incorporate
REWARD SCHEME
During 2017, the remuneration policy for executive
non-financial measures
directors was reviewed, with input from our investors. in remuneration
As a result, there will be a revised policy in the next
financial year inclu ing a i er set of non financial
performance indicators.
2017 performance:
New non-financial measures
RISK AND OPPORTUNITY incorporated into executive directors’
ontinuous sta ehol er engage ent has i entifie
2020 target
remuneration policy
that safety and social value are of increasing
importance. We addressed this in our approach to risk
Quantify non-financial
management. Since 2017, sustainability requirements risks and opportunities
have been included as a new principal risk and
uncertainty by Kier. As a result, we have made good
2017 performance:
progress to ar s our target of uantifying non financial
risks and opportunities. New risk process introduced
6 Kier Group plc | Strategy for a sustainable business 2018 Kier Group plc | Strategy for a sustainable business 2018 7
People and communities
Our vision is to provide safe and sustainable outcomes for our employees, supply
chain partners, clients and communities. We want to make Kier a great place to
work, where all our employees feel included, supported to perform and can develop
professionally. We will support communities by providing jobs, interacting with
schools, supporting wellbeing, and giving to charities and voluntary organisations.
SAFETY, HEALTH AND WELLBEING
Safety is vital to Kier. To achieve a zero accident incidence
rate (AIR) by 2020, we will:
2020 target
› Reinforce the use of our improved Safety, Health and
Environment (SHE) management system
Zero AIR
› Drive our Visible Leadership programme, with a focus on
300 site and project visits per month 2017 performance:
› Provide enhanced training to our supply chain partners, so 130 AIR, 38% reduction TRAINING, EDUCATION AND
Kier standards and safe systems of work are understood
5,861 Visible Leadership tours APPRENTICESHIPS
› Extend our wellbeing programme and reduce sickness
To remain a leading investor, builder and maintainer
2020 target
absence by 10% each year to 2020
within our target sectors, we need a well-supported and
competent workforce. We need to offer our workers high-
5 training days
quality training and development, so they can strive to be per employee
their best and help drive the growth of our business.
EMPLOYEE ENGAGEMENT This year, we were below target, with 2.4 training days per 2017 performance:
AND RETENTION employee – but this will improve, as we have introduced 2.4 training days per employee
To meet our growth ambitions, we have to identify, recruit, 2020 target our Taleo recruitment and people management system to
help drive training.
retain and develop the best people. So we will:
› rovi e better in house training an benefits to retain 75% employee
employees, and enhanced programmes for new starters engagement
to encourage people to join
› Continue conducting pulse surveys and look to implement
this through the development of a new app 2017 performance: SOCIETY AND COMMUNITY 2020 target
56% employee engagement Social impact has become a central driver in the
› Focus on innovation, leadership and training
› Publish a wellbeing strategy to promote health and bidding process and is a key commitment for Kier. Generate social impact
wellbeing within our workforce, increasing engagement enefiting the co unities in hich e or is
essential to us building a better future. During the year,
equivalent to 10% of
we increased social impact to £52m. We also launched Kier’s revenue
Shaping Your World, as part part of our overall
approach to generating positive social impact. 2017 performance:
DIVERSITY Total social value was £52m
2020 target
In a highly competitive market, creating a balanced Since July 2016, the Kier Foundation has Launched Shaping Your World, aiming to
business, with an inclusive culture and a diverse,
talented workforce is essential. It is even more
70:30 male to female generated more than £300,000 to our partner,
the Alzheimer’s Society, and donated funds to
engage with 10,000 school pupils per
imperative given the skills shortages in the sectors in ratio for graduate, another 130 good causes. annum about careers in our industry
which we operate. We have set a goal to improve the trainee and apprentice
diversity of our graduates, apprentices and trainees,
against which we are making strong year-on-year recruits
progress. To meet our 2020 target, we continue to
expand our Balanced Business Network, which raises 2017 performance:
awareness of and promotes a more inclusive and
68:32 graduate recruitment
iverse or force o fin out ore about the net or
see our corporate responsibility report.
Balanced Business Network launched
8 Kier Group plc | Strategy for a sustainable business 2018 Kier Group plc | Strategy for a sustainable business 2018 9
Marketplace
We will deliver high levels of customer satisfaction, by working with the
best ualifie supply net or partners setting stan ar s for ethical an
responsible procurement and delivering lower impact projects and services.
2020 target
CUSTOMER EXPERIENCE 90% customer
We aim to continue providing high levels of customer satisfaction
satisfaction. We will focus on areas of low satisfaction
rates to increase our overall score further.
2017 performance:
Key account management plans and managers in 605 surveys were completed during the
place, group-wide. year and we scored a 91% customer
satisfaction rate, tracking ahead of our
LABOUR STANDARDS AND 2020 target
2020 target HUMAN RIGHTS Procurement audits
ur approach to responsible procure ent re ects
our aim to meet the principles of the United Nations for 80% of existing and
Declaration of Human Rights and the core areas of 90% of new preferred
the International Labour Convention. In addition, we
continue our actions to commit to complying with the suppliers complete
CITIZENSHIP AND 2020 target Modern Slavery Act, through audits of our preferred
COMMUNITY ENGAGEMENT New measure suppliers and the development of a mandatory, online
training module to raise awareness within Kier.
2017 performance:
Training and audit process introduced
Engaging with the communities in which we work is to be in place
important to Kier. The measure we originally used for
being a thoughtful neighbour was the Considerate 2017 performance:
Constructors Scheme (CCS), and we set a target of Our Building UK business still uses CCS
80% CCS score. However, because of the growth of and, in 2017, registered 135 schemes,
our business – resulting in a lower proportion of our winning 41 awards (10 golds), hitting its
operations being construction-based – we revised target of 80% (40/50) compared with the MATERIAL STANDARDS
our target, to develop a new matrix or process that is
industry average of 72%. 2018: look to 2020 target
applicable across the whole group by the end of 2018. At Kier, we acknowledge that our choices can have an
develop a new process or matrix impact on the world around us. To minimise these, we
have seven material standards covering categories in
100% compliance with
hich e a e significant purchases an that have the material standards
highest risk. Our standards deal with human rights and
2020 target environmental issues, ensuring we remain compliant with
2017 performance:
SUSTAINABLE SUPPLY CHAIN industry standards and focus on operating a safe and
We employ the best supply chain partners, who
New pre-qualification sustainable business. Group procurement targets in place
understand our culture and can meet or exceed our requirements
clients’ needs. We also work collaboratively with
the to fin innovative solutions n a ition e
introduced and 80% of
continue to sponsor the Supply Chain Sustainability subcontractors to have
School and encourage our supply chain partners
to join e ill intro uce a ne pre ualification
completed the process
process for subcontractors, to take into account Kier’s 2017 performance:
enhanced requirements on human rights, social and In the last full reporting year, the number of
environmental standards. our supply chain partners who signed up to
the school increased by 18%
10 Kier Group plc | Strategy for a sustainable business 2018 Kier Group plc | Strategy for a sustainable business 2018 11
Environment
Our vision for the environment is to reduce our negative impacts by using
the least possible aterial resource in uencing asset esign an creating
processes to eliver projects ore efficiently hile increasing our profitability
2020 target
CARBON
As a result of achieving our 2020 target four years
Reduce energy
early, Kier launched a new, ambitious energy strategy, consumption in line with
30 by 30. This aims to reduce energy consumption by
30% by 2030. To achieve this, we will:
our 30 by 30 strategy
› Encourage the selection of hybrid cars
› or alongsi e our supply chain to fin ore energy 2017 performance:
efficient solutions 2020 target achieved ahead of plan 2020 target
› stablish ore efficient sites an offices
– updated target of 30% less energy
BIODIVERSITY Report the number of
consumed by 2030
Biodiversity is important to Kier. Changes in our BIG challenges delivered
dynamic business mean our original metric is now not
appropriate, but we continue to report on the number 2017 performance:
of projects delivered in line with the guidance from the
2020 target Biodiversity Interest Group (BIG) challenge.
Kier made 27 submissions and won three
WASTE awards – pollinator award; maintenance
New long-term waste and management award; and BIG
ur significant aste re uction is pri arily o n to
a better focus on material management, structural management strategy biodiversity champion
change within the business, recovery of waste material and resource efficiency
and improved waste-data capture. We will continue to
make waste reduction a priority, and have recast our
action plans
target in line ith our energy efficiency strategy ur
target is to intro uce resource efficiency action plans 2017 performance:
and achieve a 30% reduction in construction material We achieved a 27% reduction – a new
waste by 2030, with 2017 as our benchmark year. WATER 2020 target
target of a 30% reduction in construction
Water is a scarce resource in many places where
material waste by 2030 has been set we operate – hence our target to reduce water 10% reduction from a
consumption. We aim to:
› e ore ater efficient
2015 baseline
› Introduce water monitoring and establish a
ENVIRONMENTAL INCIDENTS robust benchmark 2017 performance:
Minimising the impact we have on our environment
2020 target › ten efficiency to our international operations Water consumption fell by 5%
remains key for Kier. To improve further and meet our
aim, we will:
All environment
› Ensure that we capture and monitor data incidence rate (AEIR)
effectively, using a data-reporting platform with
the ability to record both the type and impact of
– 20% year-on-year
environmental incidents reduction
› Inform environmental training programmes
› Report our successes and failures in preventing
2017 performance:
incidents, to learn from our experiences and
eliminate future failures
12% reduction in AEIR
12 Kier Group plc | Strategy for a sustainable business 2018 Kier Group plc | Strategy for a sustainable business 2018 13Consultancy, design and production by CPL www.cpl.co.uk Gareth Rondel Head of Group Corporate Responsibility Kier Group plc Tempsford Hall, Sandy Bedfordshire SG19 2BD Tel: 01767 355000 www.kier.co.uk
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