THE GYM GROUP PLC SUSTAINABILITY REPORT 2020
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LITY AT
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The Gym Group plc
SUSTAINABILITY REPORT 2020
30 THE GYM GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2020
ITY
STRATEGIC REPORT
IL
SUSTAINABILITY
AB
AT THE GYM
US TA IN
S T
REPO R
Our purpose is to ‘Break Down Barriers to We also acknowledge and commit to
Fitness for All’, and fitness has a vital role to understanding and addressing the
play in the UK’s recovery from COVID-19. The immediate and longer term challenges to
social value generated through exercise now our business and public health posed by
sits at the heart of the Government’s climate change. We are committed to further
investments into sport and physical activity. improving our environmental performance
Improving people’s physical and mental and promoting the good health of our
health are the most established reasons for communities through sustainable practices,
this focus, but engaging in regular exercise and we discuss this in detail on page 38.
can also help individuals steer clear from
crime and improve educational attainment. In the area of charitable contributions, we
Our purpose naturally aligns us with SDG 3 continued to partner with Movember, this
– ensuring healthy lives and promoting year supported by our digital fitness partner,
wellbeing for all. For the first time, the social Fiit. Despite the restrictions of national
I am pleased to present our value generated by The Gym Group over the lockdown in Q4 2020, we raised £32,500.
Sustainability Report for past five years has been analysed; this is Separately, over £23,000 was also donated
2020. While this has been a explored further on page 32. by members to various causes during the
joining process.
year of significant disruption Good jobs, quality education and life-long
for our business, our purpose learning for the benefit and development of As CEO of The Gym Group, I have ultimate
and our passion have not our people remain central to The Gym responsibility for sustainability performance,
changed. Sustainability has Group and, throughout the pandemic, we
have maintained our commitment to
and we have strengthened our governance
arrangements with the introduction of the
always been at the core of supporting our people. For example, we new Health & Safety and Wellbeing Board
The Gym Group, and these launched our communications platform, Committee, which I chair. ESG matters are
pages set out our approach CORE, to ensure our employees – whether regularly discussed by the Board and its
working or furloughed – remained Committees (for example, diversity matters
to and actions on connected, and that they understood what are considered at the Nomination
sustainability through 2020 and how the business was doing. We are Committee). More information on our
and as we move into 2021. glad to report on our efforts in this area on sustainability governance is on page 36
page 34. and in our Corporate Governance Report
Our strategy and activities on page 59. This is our first full sustainability
are aligned with the United Although our Gender Pay Gap has increased report to be prepared to the GRI Standards
Nations SDGs in several slightly, our gap is still low in comparison to – the global standards for sustainability
areas, as set out in the table the national average of 15.5% in 2020 (from reporting. Last year, we reported our
Office of National Statistics), which is commitment to continually improve our
opposite and described detailed on page 37 and in our Gender Pay sustainability reporting, and we are pleased
through this report. Gap Report, available on our website: www. to build on that with this significant step
tggplc.com. We continue to take action to ensure our reporting is clear, accessible
through improvements in recruitment and to our stakeholders, and reflects our
training, and through our focus on diversity commitment to sustainable business.
and inclusion. We have made progress in As we continue to develop our reporting,
this area by launching The Gym’s Diversity we welcome feedback on this report and our
and Inclusion Manifesto, which sets out our sustainability performance, and are happy
commitment to celebrating diversity and to continue to engage with our stakeholders
making our gyms more inclusive, accessible and interested parties.
places to be. Our members, as well as our
people, are key to ensuring this, and our Richard Darwin
manifesto has been shared on our website. Chief Executive Officer
You can read more about our work on 18 March 2021
diversity and equal opportunity on
page 36.
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 31
OUR PURPOSE: TO BREAK DOWN
BARRIERS TO FITNESS FOR ALL.
GOOD JOBS,
QUALITY
EDUCATION DIVERSITY RESPONSIBILITY
OUR FOCUS GOOD HEALTH AND LIFELONG AND EQUAL TO THE
AREAS AND WELLBEING LEARNING OPPORTUNITY ENVIRONMENT
THE SDGS WE
ADDRESS
COMMUNITY, SHAREHOLDERS,
WHO THIS MEMBERS AND MEMBERS ENVIRONMENT
IMPACTS EMPLOYEES EMPLOYEES AND EMPLOYEES AND COMMUNITY
WHY IS IT We break down barriers to The wellbeing of our people is We make a positive We continually seek out
fitness, which contributes to vital for success and is at the contribution to our community opportunities to improve our
IMPORTANT?
promotion of good physical heart of our decisions. by being a fair and environmental performance
and mental health We invest in our people, with inclusive space. and to contribute to the
and wellbeing. increased employee Our Diversity & Inclusion wellbeing and sustainability
The safety of our members engagement through new Manifesto sets out our of the communities in which
is of paramount importance. forums and an online commitments to listen, we operate.
We operate according to communication platform for commit and act.
our COVID-secure operating both furloughed and working
protocols in all our sites. teams, and schemes such as
Kickstart to support young
people in their fitness
careers.
To expand our reporting for 2020, we have We also explore how the Board considers The HSW Committee is chaired by the
detailed our key focus areas in the table the interests of stakeholder groups in CEO, and its activities, including frequency
above. This explains why we consider decision making and promotes the success of meetings, are set out in the Corporate
these goals to be of material importance of the Company, with particular regard to Governance Report on page 64.
to The Gym Group and how we work the COVID-19 pandemic, on pages 26-29.
to promote them within the business. Specific sustainability issues such as health,
We have also included the stakeholder Sustainability governance safety and employee engagement are also
groups most significantly impacted – We continued to hold our Sustainability managed and overseen by issue-specific
though naturally many of the issues are Working Group (‘SWG’) during 2020, adding Committees reporting into the Board or
key to several stakeholder groups. new members and expanding its remit Executive Committee as appropriate.
to include employee volunteering. The
The table also shows how our goals align Committee is chaired by Cornelia Woschek, Reporting for the 2020 financial year
with the UN Sustainable Development our Head of Sustainability and Business As part of our work to continually improve
Goals (‘SDGs’). These 17 goals and Development, and includes representation our reporting, in 2019 we began the process
related targets to achieve by 2030 aim from the Executive Committee, through of adopting the Global Reporting Initiative
to address the challenges we face as David Melhuish, our Development Director. (‘GRI’) Standards on sustainability reporting.
a global society – related to health, The SWG draws its members from a
education, climate, environmental number of business functions to lead the This report has been prepared in
degradation, poverty, and peace and management of sustainability within the accordance with the GRI Standards:
justice. Throughout this report, we show the business and with our stakeholders. The Core option. In aligning with these global
actions we are taking to advance societal SWG reports to the Executive Committee standards, we ensure that we continue to
goals, with key SDGs and underlying which is chaired by the CEO, ensuring provide our varied stakeholders with clear,
targets highlighted where relevant. that it has a Board-level reporting line. concise information that demonstrates
how we are progressing with our material
Engaging with our stakeholders The PLC Board shares The Gym Group’s topics. The GRI content index can be
Our stakeholders are key to the success passion for a sustainable business and found on our website, www.tggplc.com.
of our business, and we engage with both the delivery of affordable fitness for
internal and external stakeholders, around all. It regularly and formally discusses All data included in this section was subject
our goals, progress and performance, to sustainability and ESG matters – as to internal validation and was prepared with
improve our reporting. We use a range our product evolves, as the rollout of support from specialist consultancy Simply
of methods to gather information about sites progresses and as our employee Sustainable. All references to ‘this year’
stakeholder expectations and feedback. numbers expand. In 2020, the Board in this chapter refer to The Gym Group’s
See page 3 for a summary of our key established a Health, Safety and Wellbeing 2020 financial year from 1 January to
stakeholder groups and engagement (‘HSW’) Committee with direct oversight 31 December 2020, unless otherwise stated.
methods, and the ‘Working with our of relevant policies and procedures.
Stakeholders’ spread on pages 26-29.
32 THE GYM GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2020
STRATEGIC REPORT
SUSTAINABILITY
&
AT THE GYM
EALTH
CONTINUED
GOOD H
LLBEING
WE One of the major factors in social value
generation is the socio-economic status of
our members. Those from more deprived
communities are more likely to suffer from
chronic conditions, and therefore the social
Our strategic approach The social impact of The Gym
Regular physical activity benefits both the In 2020, we commissioned 4Global, benefit to keeping these members active
body and mind. According to the World a UK-based data analysis company, will be higher than one from a less deprived
Health Organization, it can reduce high to determine the social impact of our community. 32% of The Gym Group’s estate
blood pressure, help manage weight and business over the last five years²,³. is located in the 20% most deprived areas
reduce the risk of heart disease, stroke, in the UK – reinforcing our commitment
type 2 diabetes and various cancers, Using the Social Value Model created to tackling inactivity in underrepresented
and increase mental wellbeing. by Sheffield Hallam University, 4Global and disadvantaged communities.
developed a Social Value Calculator
Our purpose at The Gym Group is to including demographic data from Prevention of non-communicable diseases
‘Break Down Barriers to Fitness for All’. Experian. The model determines the through exercise is one of the contributors
Through the provision of affordable, high social value of regular exercise on to social value as it significantly reduces
quality, well-equipped 24/7 facilities and a communities, through reduced risk of treatment cost and GP visits. The positive,
wide-ranging and growing gym network, non-communicable diseases; increased immediate impact exercise has on
we are breaking down those barriers to wellbeing; increased educational attainment; mental health is well documented and
fitness. In doing so, we are supporting and reduced crime. This methodology the fact that almost 45% of the cases we
the Government’s vision to get the nation is used extensively by Sport England, help to prevent every year are linked to
active. We are also directly contributing local authorities and Government. depression confirms the importance of
to target 3.4 of SDG 3 – Good Health and making gyms accessible and affordable.
Wellbeing: to reduce premature mortality The analysis shows that the social value
and promote mental health and wellbeing. we delivered increased from £246 million The COVID-19 pandemic has unfortunately
in 2016 to £553 million in 2019. Our number greatly impacted participation levels
The outbreak of COVID-19, the link of gyms almost doubled during this period, across the physical sector and fitness
between obesity and severity of the but this was not the only driver for the industry. Government-enforced closures
effects of the virus, and the importance increased value; over the same period, and restrictions on capacities and
of mental wellbeing throughout lockdown the average value returned by each gym activities have affected opportunities for
have further highlighted the crucial increased from £2.8 million to £3.1 million members to access facilities and as a
importance of physical exercise. as participation levels grew. By 2019, over result, the social value we generated in
1 million individuals were completing 2020 dropped by 48%, to £287 million.
Inactivity is a threat to the UK’s health with enough activity to elicit health and wellbeing
63% of adults overweight or living with improvements in our gyms, generating
obesity¹. an average value of £490 per person.
PERCENTAGE OF CASES PREVENTED
DEPRESSION 44.8% SOCIAL VALUE GENERATED
CORONARY HEART DISEASE BY THE GYM GROUP IN THE
& STROKE 35.7% PAST FIVE YEARS (£M)
£1.8bn
TYPE 2 DIABETES 13.5%
DEMENTIA 5.5%
COLON CANCER 0.3%
BREAST CANCER – FEMALES 0.2%
553
416
49% £3.1m
306 287
246
2016 2017 2018 2019 2020
Our network of 183 operating Average social value
sites in the UK affords access per gym pre-COVID
to over 49% of the population
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 33
THE SOCIAL VALUE CALCULATOR MODEL
Volume of Participants, Frequency of Activity,
Demographics and Socio-economic Profile
Access to the gym
Making gyms accessible is central to our
purpose at The Gym Group. Our network
HEALTH SUBJECTIVE EDUCATION CRIME of 183 operating sites in the UK affords
WELLBEING access to over 49% of the population4
Reduction in Increased Life Increased Crime reduction (up from 46% in 2019). These sites have
likelihood of Satisfaction and educational for young men been specifically selected to be easily
developing: Happiness attainment and
accessible, close to public transport,
Heart Disease Improved
Breast Cancer starting salaries with free car parking where necessary.
Colon Cancer Our 24/7 operation allows members to
Type 2 Diabetes use the gym when it suits their lifestyle.
Dementia
Depression The average monthly headline rate of £18.81
makes The Gym Group the best value, high
quality proposition in the market, and with
our ‘no contract’ model, members need
only pay for the months they intend to use
Social Value Generated the gym, further increasing accessibility.
During national and local lockdowns in
Factors driving social value aligned with commercial value: 2020, we automatically froze membership
expansion, membership levels, visit frequency and tenure payments. Also, to ensure our members
could continue to do regular physical
activity, we provided a large number
of free online exercise classes as
INTERVIEW WITH RACHEL, well as discounted memberships to
Fiit, our digital fitness partner.
MEMBER OF THE GYM STOURBRIDGE Safety at the gym
The safety of our members and staff is
How did you cope without The Gym at the heart of our operation and as the
during the closure periods in 2020? business has grown, we have continued to
When it was announced that gyms were evolve our health and safety management
closing again, I actually had a little cry. We system. A clear understanding and
all need our routine and I thrive on continuous review of our risk profile
certainty and just as I found happiness ensures our processes are compliant and
and confidence again, it seemed like it mitigate risk, while remaining functional
was going to be taken away. and fit for purpose. Our external health
and safety auditors deliver a consistent
However, whilst it is harder not to have the and transparent review of performance
safe environment of The Gym in the Winter at site level, including the physical safety
when it’s cold and dark outside, I have of equipment and the building facilities
been coping a bit better this time as I together with audits of our wider safety and
This is a stock image as we were unable to photograph
the member due to COVID-19 restrictions turned to your free online workouts. I building maintenance systems. We have
usually arrange with some other members recently launched our digital health, safety
How have the pandemic and lockdowns that I met at The Gym to join the same and compliance portal, which provides
affected you over the past year? classes and we have a bit of a banter central visibility of compliance as well as
From being an incredibly active person afterwards online. I even got my parents advanced reporting and management data
with a demanding job and a great social who are in their 70s to join in sometimes to support us in quickly identifying and
life, I went to being stuck on my own in the and they love it – it makes us all happy! responding to key health and safety trends.
house. Being at home all day, working
long hours and not seeing people really What role does The Gym play in your
This year, the pandemic has brought
got me down, impacted my confidence general wellbeing?
additional safety challenges. In response,
and my mental wellbeing. Going to The Gym is not just about having
we have implemented COVID-secure
access to great equipment for my fitness
protocols to enable our gyms to operate
What motivated you to join The Gym routine, it is about having a safe and
safely throughout the pandemic. We
Stourbridge? friendly place that I go to where I am with
have consulted scientists from the
When The Gym opened in August 2020 like-minded people. Becoming part of that
Advanced Wellbeing Research Centre
after the first lockdown, I was so excited to community and doing online workouts
at Sheffield Hallam University to support
join. I found a new and exciting community with live instructors when gyms were
our in-depth work on preparing these
led by incredibly friendly and caring staff. closed is essential to my health and
protocols to keep our members and
Knowing I can go to The Gym makes me mental wellbeing and saved me from
communities safer in our gyms.
excited in anticipation. It lifts my mood having to seek professional help to get
when I go and the feeling of happiness is me through these incredibly tough times.
on an upward trajectory throughout my
workout. When I leave The Gym I feel 1 Public Health England, Better Health Campaign 2020.
relaxed and nothing seems as big a 2 The Gym Group – Social Value 2016–2020 by 4Global.
problem for me any more. 3 Datahubclub – Physical Activity A Social Solution 2017.
4 % of adult population living within 15 minutes drive time
of a The Gym Group site.
34 THE GYM GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2020
STRATEGIC REPORT
IT Y
SUSTAINABILITY
AT THE GYM
, QUAL
BS
CONTINUED
O
GOOD
CA
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TION
EDU
Our strategic approach to ensure our teams could work from
Our people are our biggest asset, and we home comfortably were provided.
are committed to providing a workplace
where they can thrive personally and Our focus on people aligns with and
grow professionally. Throughout 2019, contributes to the SDGs as we strive for
we successfully launched and rolled Quality Education (SDG 4) and Good
out the New Gym Team employment Jobs and Economic Growth (SDG 8),
model, embedded our values across the directly in our organisation and, more
business, and established our employer widely, through our members.
brand. As part of this programme, several
initiatives were planned for 2020 but early Employment
on it became clear that the year would To support our employees who were
take us on a very different course. furloughed, as well as those working from
home, in March 2020 we launched a new
From late March, approximately 95% of our communications and engagement platform
colleagues were furloughed as gyms were – CORE – two months earlier than initially
required to close in line with government planned. This formed part of our People First
policy. Throughout this challenging period, plan, as we sought to support the mental
our priority has been supporting the health and wellbeing of our teams through
wellbeing of our people, and our People increased communication. New employee
First campaign was launched to ensure our forums have also been established to
ensure employees have a vehicle to express
MPLETE
employees had support where and when
M OST CO R they needed it. The strength of our values their thoughts, ideas and opinions about the
“ IT’S TH E NG FO
TR AINI S I
and culture has enabled us to support our current situation, and all business decisions
N E SS
BUSI AI N E R people effectively throughout this time. have been made with the aim of keeping
NAL TR T 12
PERSO N IN THE LAS R
as many people employed as possible.
EE FO We believe it is vital to provide regular
HAVE S THANK YOU During our closure period, and due to a
ET E R ,
opportunities for our people to share
S … H
Y E AR TH IS TOG L their experiences, ideas and feedback. lack of new gym openings and a need to
N G
PUTTI TENTIA In September 2020, we ran our first ever consider the sustainability of our operations,
H A S THE PO ERSONAL engagement survey to gain thoughts on there were a small number of redundancies
IT YP
P EVER ”
TO HEL TO SUCCEED!
energy levels, recognition and our COVID-19 in The Gym Group’s head office, in roles
R response. The overall engagement across related to business growth. Through the
TR AIN E
the business was 51% (SMG benchmark employee assistance programme and by
across health and fitness industries across assessing what roles were needed for the
ER
S TR AIN
FITNES Europe, America and Australia is 44%), and a future, half of the roles at risk were able to
major positive takeaway from the survey was be fully mitigated by moving the employees
the trust in the leadership and management to other vacant roles. Sadly, 15 people in
in dealing with COVID-19 and ensuring full-time roles were made redundant. For the
people felt safe to return to work. The main impacted group of employees, an employee
area of focus following the survey is the assistance programme was established to
motivation levels of our teams that have provide people with support for their health
been affected by furlough and the general and wellbeing during this time, and also to
COVID-19 environment. A positive work-life assist with practical skills such as CV writing,
balance and emphasis on recognition are interview workshops and job search support.
key areas being implemented to support
this. Keeping Connected guidelines were Training and development
introduced in June 2020 for head office To support our employees while gyms
employees to ensure that our teams could were closed, we launched an e-learning
keep connected whilst working from home. platform. The platform was integrated into
Guidelines were introduced to support our core HR system, Workday, and meant
the health, safety and wellbeing of our that all our employees could undertake
teams working from home and allowances online learning from wherever they were
for required furniture and technology and via any device. Through this, we
OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 35
were able to train all our employees on Case study
the new COVID-secure measures to
ensure we could keep our teams and KICKSTART SCHEME
our members safe when we reopened.
For the initial cohort of 30, we received
As well as mandatory compliance and safety around 900 referrals, and following a video
e-learning modules, we also launched screening and interview stage, we offered 30
a new ‘Set for Success’ Personal Trainer roles to begin in December 2020, with a
programme. This is designed to support our further 11 on hold until more roles are
Fitness Trainers so they can build effective approved by the Government. We have
businesses and increase their client base. recently had our application approved for a
So far, 34% of our Fitness Trainers have further 120 Kickstart Fitness Trainees for
completed the programme and feedback 2021, which we will introduce in a further
has been very positive. We are continuing three cohorts.
to expand this and are collecting thoughts
on further areas of improvement. We are also taking our commitment one step
further than required by the scheme, and
Reward and recognition reinvesting the government grant into each
As part of CORE, a reward and recognition individual to ensure they are all Level 2 and
scheme (‘Your Personal Bests’) was As soon as gyms reopened, we applied to Level 3 Personal Trainer qualified, First Aid
launched in July 2020. This allows for the Government’s Kickstart scheme to trained, and have full Personal Trainer
peer-to-peer e-card recognition. Since recruit 30 new Kickstart Fitness Trainee insurance – so that they are set up to
the launch in July, 1,600 peer-to-peer roles. The scheme provides funding to succeed in their own business on completion
e-cards have been sent, with 80% of all employers to create job placements for of the scheme. At the end of the six-month
employees receiving a recognition moment 16–24-year-olds on Universal Credit who are placement, we envisage these young people
from their peers. We also introduced at risk of long term unemployment. will transition into an employed Fitness Trainer
Spotlight awards, given by the Executive role with The Gym Group.
Committee team to reward exceptional
performance, which have a monetary
value attached. Both initiatives have been
extremely popular with our employees. JOANNA GOODHEAD, KICKSTART FITNESS
Throughout 2021, we will refocus on our
TRAINEE, TELLS US WHY SHE APPLIED FOR
Coaching for Performance programme, THE SCHEME AND WHAT ADVICE SHE HAS
which supports transparency in progression
paths, promotions and pay reviews. FOR OTHER KICKSTART COHORTS
Human rights, anti-bribery and Having completed my coaching experience better but you will be a more
anti-corruption qualification and a coaching placement at attractive employee. Even if Personal
We conduct our business honestly and University I always knew that some form of Training isn’t your chosen career, the six
ethically wherever we operate. We recognise coaching was what I wanted to do in the months will provide you with invaluable skills
the risks of modern slavery and take active future, and I love the satisfaction you get and experiences that are transferrable to
steps to assess and manage them. We when others achieve their goals. Fitness has your dream career.
comply with the Modern Slavery Act and always played a big role in my life and I
our statement, including further information OF
INKING TS
have always taken a lot of time in my
on our activity to mitigate risks related
N E TH
activities.
NYO HOR
to modern slavery, can be found on our “ TO A G FUTURE CO O
website: www.tggplc.com/modernslavery. So I started to look into getting my Personal JO IN I N JUST G
O U L D SAY
Trainer qualification. I found lots of –IW
We take a zero-tolerance approach to !”
FOR IT
companies that offered it but due to the
bribery and corruption and are committed pandemic, it was all online with very few
to implementing and enforcing effective practical elements. So when my work coach H E AD
A GOOD
systems to prevent and detect bribery from Universal Credit suggested I look at JOANN
and corruption. We have an Anti-Bribery The Gym Group Kickstart Fitness Trainee
Policy, which is available to all employees role and what The Gym were offering, it
via our intranet. We do not consider bribery seemed very attractive as it included both
and corruption to be a principal risk to our the theory and practical elements of being
Company because we only operate within a Personal Trainer. As soon as I had finished
the UK and have a low level of discretionary reading the job description, I knew that it
spend due to our fixed cost base. was a role I wanted to apply for and had
everything crossed I would be successful!
We are not aware of any business
relationships in place which are likely to To anyone thinking of joining Future Cohorts
have an adverse impact on human rights, – I would say JUST GO FOR IT! However, be
anti-bribery or anti-corruption matters. prepared to work hard – ‘you get out what
No such matters have been identified you put in’. If you throw yourself into the
under the Anti-Bribery Policy to date. working environment and ask lots of
questions, not only will you enjoy your
36 THE GYM GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2020
STRATEGIC REPORT
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SUSTAINABILITY
AT THE GYM
& EQUA
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CONTINUED
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DIVERS
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OPPOR
Our strategic approach Through this strategy, we seek to align Inclusion at The Gym Group
Diversity and inclusion are crucial to our and contribute to the SDGs, particularly A key focus in 2020 has been improving
culture, our values and our behaviours. by promoting SDG 5 – Gender Equality, the quality of our data insights to better
As our business continues to grow, we and SDG 10 – Reduced Inequalities. understand our workforce demographic,
are committed to nurturing a diverse in line with the first pillar of our Diversity
and inclusive culture, both for our We recognise the importance of and Inclusion Strategy. Through a data
members and our employees. This collaboration and we remain active collection drive, we have successfully
commitment is fundamental to achieving members of Women in Hospitality, Travel enhanced the accuracy of our equal
our purpose of ‘Breaking Down Barriers and Leisure, regularly contributing to cross- opportunities monitoring. We have also
to Fitness for All’ and ensuring that The industry discussions and initiatives. In July developed a diversity and inclusion
Gym Group is a place for everyone. 2020, we also became proud signatories dashboard, which enables us to assess
of the Business in the Community Race and regularly review our progress in the
Throughout 2020, and led by our Diversity at Work Charter, committing to its five attraction, progression and retention of
& Inclusion Strategy, we have focused calls-to-action for businesses to prioritise diverse talent at The Gym Group. Through
our actions on three core pillars: action on race and improve equality this work, we have been able to identify
of opportunity in the workplace. key areas in need of improvement.
Our recently formed Employee Diversity
and Inclusion Group, led by our Chief
Commercial Officer and Executive sponsor,
Barney Harrison, has played a crucial role
INSIGHTS TALENT CULTURE in raising the agenda for discussions and
positive action on diversity. Throughout the
– to understand – to ensure we attract, – to embed our
our workforce develop and retain diversity, equality and year, the Group ran an ongoing series of
demographic. a diverse workforce. inclusion initiatives. internal podcasts focusing on topics such as
International Women’s Day and Black History
Month. This has evolved into a valuable
platform to celebrate the achievements and
experiences of our diverse workforce, and
to encourage conversations about diversity.
At the end of 2020 we launched our
This year, our Chairwoman Penny Hughes was identified Diversity & Inclusion Manifesto, outlining
The Gym Group’s stance on inclusion
as an Advocate for Change within Women in Hospitality, and building upon the culture we have
Travel and Leisure, as an acknowledgment of her and continue to nurture. The manifesto
commitment to driving change and promoting equality, provides transparency for our employees,
members and all those who interact with
inclusion and diversity. The Gym Group on our commitments
DIVERSITY
BOARD
BOARD
1
EXCO
EXCO SENIOR LEADERSHIP TEAM ALL ALL
EMPLOYEES
STAFF
SENIOR LEADERSHIP TEAM
1 1 1
1
2
1. MALE: 5 1. MALE: 5 1. MALE: 32 1. MALE: 1,406
71.4% 83.3% 2 76.2% 72.6%
2 2. FEMALE: 2 2. FEMALE: 1 2. FEMALE: 10 2
2. FEMALE: 530
28.6% 16.7% 23.8% 27.4%
1 Includes two Executive Committee Directors.OVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 37
to improving diversity, inclusion and Gender pay gap Wellbeing
equality within the business, how we The fitness industry has historically As a ‘people-first’ business, the health and
aim to achieve this, and the individual struggled to attract women. Through our wellbeing of our employees remain a key
responsibilities in championing this. Diversity & Inclusion Manifesto and Pledge, priority. This year we focused on raising
brand awareness, improved standardised awareness of mental and physical wellbeing
Our Executive Committee have pledged recruitment practices, unconscious bias and providing the required support to those
their personal commitment and training and targeted recruitment strategies, who need it. Our Wellbeing Strategy, led by
accountability to this agenda by signing we will strive to break down this barrier. our Chief People Officer, Ann-marie Murphy,
The Gym Group Equality, Diversity & focuses on four key areas:
Inclusion Pledge, which sets out the Our mean gender pay gap has increased • Prevention
principles, ambitions and targets for 2021. this year, as we have seen more men than • Development of Health and Wellbeing
women in senior roles, which attract a higher Champions
We state our ambition to meet the following salary. Our median gender pay gap has • Leadership
targets which will be reported monthly reduced as we now employ over 1,200 more • Expanding our vocational health offering.
to the Board of Directors for review, and Fitness Trainers, who are all paid the same
as an Executive Committee team we will hourly rate. In addition to our Employee Assistance
constantly review the data and work to Programme, which provides a 24/7
understand the insights behind it. We will April 2019 April 2020 telephone counselling service, we have
review current employee and hiring targets Mean gender pay gap 2.0% 5.48% already taken the first step towards
for all populations. If in 2021 we are unable enhancing our Wellbeing Programme by
to achieve any of the targets below, we will Median gender investing in increasing our number of
explain why as part of our Equality, Diversity pay gap 11.7% 0.00% qualified Mental Health First Aiders. In the
& Inclusion Plan and the 2021 Annual Report. Mean bonus gender last quarter of 2020, we have increased the
pay gap 37.4% 46.93% number from three to 30. These Wellbeing
These are short term goals and by the Champions provide additional support and
end of 2021 we aim to have a minimum: Median bonus gender signposting, should employees have
pay gap 37.1% 27.25% concerns over their mental wellbeing. We
also have a new Wellbeing Hub, which
Although our Gender Pay Gap has increased provides employees and managers with
slightly, our gap is still extremely low in additional support through access to online
SENIOR LEADERSHIP comparison to the National average of 15.5% mental wellbeing toolkits, robust Wellness
TEAM DIVERSITY in 2020 (from Office of National Statistics). Action Plans, training resources and further
20%
guidance.
of the population will be from
a culturally diverse heritage
25%
of the population will be female
OUR NEW D&I MANIFESTO
GYM OPERATIONS
DIVERSITY
30%
of the population will be from
a culturally diverse heritage
30%
of the population will be female
RECRUITMENT
We will aim for female and
culturally diverse new hires to
represent the diversity targets. The D&I Manifesto clearly sets out our commitments to creating a more diverse and
inclusive workspace here at The Gym Group and the actions we are taking to achieve
Where possible, diverse shortlists will this. We want to ensure that The Gym Group is a place where everyone is welcome,
be provided for all interview panels. accepted for who they are and has equal opportunities to succeed.38 THE GYM GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2020
E
STRATEGIC REPORT
TH
SUSTAINABILITY
AT THE GYM
ILITY TO
IB
T
CONTINUED
NS
RESPO
ON ME N
ENVIR
Our strategic approach
We recognise that climate change is
waste align with SDG 12 – Responsible
Production and Consumption; and 100% OF
an important global challenge, and we our approach to reducing our carbon ELECTRICITY
SUPPLIED BY
support the commitments made by the UK emissions aligns with SDG 13 – Taking
Government to keep global temperature Urgent Action to Combat Climate Change.
rise well below 2OC and achieve net zero
carbon emissions by 2050. Clearly, meeting The pandemic has significantly impacted
RENEWABLE
this commitment will require all sections our business, with gym closures in line SOURCES1,2
of the economy to work together, and we with government policy and fewer new site
support the UK’s Net Zero Strategy and Ten openings than planned. Throughout this BIOENERGY
Point Plan for a Green Industrial Revolution. period, we have continued our commitment
to the environment, and from March to
We believe in taking a proactive, strategic July when gyms were closed, we ensured
approach to environmental management, energy and water consumption was at a
and we strive to be at the forefront of best
practice within the health and fitness sector.
minimum across our sites. As our gyms
reopen, and as a result of the additional
47.8%
As well as reducing our carbon emissions, safety measures we have introduced to
we are also fully committed to reducing protect our people and members, we are
waste from our operations and increasing facing new challenges. Specifically, we
the efficiencies of our gyms. As our growth have seen an increase in site-level energy
continues and we open more gyms, we aim consumption due to increased ventilation
to continue to reduce our carbon emissions requirements, and an increase in waste from WIND
and environmental impact through the cleaning materials. We are actively exploring
energy-efficient design of new sites as well how to reduce this impact while continuing
as investment into the existing estate. to keep our people and members safe.
Our commitment to the environment is
a significant way in which we align and
Climate and carbon
The world is facing a critical moment in
32.7%
contribute to the SDGs. In particular, tackling climate change. As a multi-site
our efforts to procure renewable energy operator with 183 gyms across the UK, we
and increase the energy efficiency of have a responsibility to minimise the impact
our gyms align with SDG 7 – Affordable of our operations. Our most significant
and Clean Energy; our efforts to reduce environmental impact comes from energy
use in our gyms. As such, the single biggest PHOTOVOLTAIC
improvement we can make is through
the procurement of renewable energy.
We are proud to have purchased 100%
renewable power since October 2019*
for all of our sites where we control the
11.7%
purchase of energy. In doing so, we are
directly contributing to SDG target 7.2
(‘By 2030, increase substantially the
share of renewable energy in the global
energy mix’). The 2020 renewable fuel
mix of our power supplier, as certified HYDROPOWER
by EcoAct, is illustrated opposite.
1 We operate 21 sites (11% of the estate) where electricity is
provided centrally by the respective landlord and we do
not have purchasing control over the energy supplier
7.8%
and contract type.
2 Fuel mix disclosure statement by Haven Power (our
supplier) for 12 months ending 31.3.20, verified by EcoAct.
Our REGOcertificate can be found at tggplc.comOVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 39
Our renewable energy certificates are We recognise that we have more to do to
available on our website: www.tggplc.com reduce our emissions, and in 2021 we will set
long term, ambitious targets to reduce
As part of our environmental strategy, we carbon emissions in line with global climate
monitor energy consumption at each of our science and the UK Government’s Net Zero
sites and minimise it to make our buildings Strategy. We also acknowledge the
as efficient as possible. In 2020, we immediate and longer-term challenges to
implemented the requirements of the our business posed by climate change, and
Streamlined Energy and Carbon Reporting we are committed to understanding and
(‘SECR’) scheme. As part of this process, we managing these risks. In 2021, we will
have undertaken quarterly progress reviews, conduct a climate change materiality and
allowing us to identify and act on risk assessment in line with the Task Force
opportunities for increased efficiencies. on Climate-related Financial Disclosures
(‘TCFD’) requirements, to identify key
We also continued with our programme of physical and transition risks and
upgrading our lighting systems to high- opportunities to our business operations,
efficiency LEDs, completing work on 23 sites and to consider appropriate mitigation
during the year. 93% of our estate now measures.
operates with full LED lighting. (COVID-19
lockdowns prevented us from completing We will also commence site-level
the whole estate in 2020; we plan to energy audits in 2021 to provide insight
upgrade the remaining sites in 2021.) into consumption variations across the
estate and identify opportunities for
energy-reduction programmes.
Greenhouse gas emissions However, 2020 emissions have been TOTAL EMISSIONS & INTENSITY METRICS
Greenhouse gas (‘GHG’) emissions for significantly impacted by COVID and 14,000 400
the year ended 31 December 2020 have extended closure periods have reduced
12,000 350
been measured as required under the our overall energy consumption. For
300
Large and Medium-sized Companies consistency we have presented 2020 data 10,000
and Groups (Account and Reports) with the same intensity metric but, for fair 250
8,000
Regulations 2008 as amended in 2013. The and balanced reporting, we have included 200
6,000
main activity which releases GHG is the a second metric, tCO2e per million member 150
purchase and use of gas and electricity visits, to account for the time the business 4,000 100
to power our gyms. We have used the was closed and the occupancy restrictions 2,000 50
GHG Protocol Corporate Accounting and that have been imposed. Member visits 2017
2017 2018
2018 2019
2019 2020
Reporting Standards (revised edition) and and building occupancy are key drivers of
data gathered to fulfil the requirements energy consumption and representative
Total emissions
under the CRC Energy Efficiency of the intensity and use of our facilities. Intensity metric tCO2e per million member visit
scheme, to calculate the disclosures. Intensity metric1 tCO2e per gym
Emissions per gym have decreased
In previous years we have published an due to the extended closure period We have also presented data of total
intensity metric of tCO2e per trading gym, whilst emissions per member visit have consumption in kWh and transportation
due to the continued growth of the business. increased from the previous year due to which is generated by business journeys
the occupancy restrictions in place. undertaken in personal vehicles.
Year ending 31 December BASE YEAR TOTAL
TOTAL EMISSIONS (tCO2e) 2017 2018 2019 2020 CONSUMPTION (KWh) 2018 2019 2020
Direct Emissions Scope 1 (Gas) 10,602,020 11,071,196 8,710,907
from Operation (Scope 1) 1,267 1,950 2,035 1,602 Scope 2 (Electricity) 28,777,288 34,409,373 25,272,315
Indirect Emissions Scope 2 (Heat) 10,907 18,405
from Energy Usage (Scope 2) 8,023 8,841 9,542 5,892 Scope 3 (Transport) 263,430
Indirect Emissions
Total (kWh) 39,379,308 45,491,476 34,265,057
from Heat Purchased (Scope 2) – – 2 3
Transportation (Scope 3) – – – 62
Total Emissions 9,290 10,791 11,579 7,559
Intensity Metric1 (tCO2e per gym) 80 70 65 41
% Change from base year – -13% -19% -49%
Intensity Metric (tCO2e per
million member visit) 348 304 248 307
% Change from base year – -13% -29% -12%
1 Includes any gym open at any point during the year.40 THE GYM GROUP PLC
ANNUAL REPORT AND ACCOUNTS 2020
STRATEGIC REPORT
SUSTAINABILITY
AT THE GYM
CONTINUED
443
Waste We also found that single-ply sheet was
Eliminating waste and improving our suitable and reduced the volume of
recycling rates is an important area of paper used, and sourced coreless rolls,
which do not require cardboard inserts.
tonnes
focus and we encourage our members
and colleagues to take an active role in
this. Our waste generation is limited to While we have seen a 13% decrease in the
of total waste removed
that brought onto the premises by our total weight of waste for the year, and a from our sites during 2020
members and cleaning materials, as reduction from 4.3 to 3.5 tonnes per site, we
we do not directly operate any food or were only open for approximately 55% of
90%
beverage facilities* and only have a limited our expected trading time. For the three full
offer for consumption through vending operating months after reopening (August,
machines. In 2020, we introduced an September and October) we saw the total
electronic solution to replace all paper- waste collected increase by over 90% due
based processes for staff in our gyms and to the additional cleaning materials required Proportion of waste
to keep our gyms COVID-secure. The total diverted from landfill
we will see a benefit in waste reduction
and the use of printer cartridges in 2021. waste removed from our sites during 2020
was 443 tonnes and the proportion of waste
As a result of the additional safety diverted from landfill was 90% for the year.
measures we have introduced to protect
our people and members from COVID-19, LANDFILL DIVERSION 2020
we have unfortunately seen an increase Landfill 10%
in general waste generated at our Recycled 54%
sites, mainly relating to the introduction Energy from waste
of intensive cleaning regimes. incineration 34%
Anaerobic
digestion 2%
Throughout this period, we continue
to actively explore how to reduce our
impact while keeping our people and * There are small cafes run by private third parties
members safe. For example, we have operating from two of our gyms.
* The Gym Group had direct responsibility for waste
provided our members with paper towels
removal at 128 operating sites in 2020 (70% of our
‘Blue Roll’ and sanitiser spray rather than estate). Data is provided from this cohort. At our
antibacterial wipes, as this is more easily remaining sites, waste collection is the responsibility of
recyclable or sent for energy generation. the respective landlord or local authority and we are not
provided with waste data. Landfill diversion is based on
overall waste depot performance.
Water directly to the drain, reducing the amount
The use of water at our sites is confined of mains water required for each flush. We
to typical shower, toilet, washbasin and are now installing this unit in all new sites.
cleaning requirements. All taps and showers
are either non-concussive or electronic for We will commence site water auditing
timed operation, reducing misuse and waste. during 2021 to provide insight into
consumption variations across the estate,
Prior to the pandemic, we operated to identify wastage, and to initiate a
a small number of saunas and steam monitoring and targeting programme.
rooms, located in gyms we had recently Historical water consumption data is
acquired. These were closed due to not sufficiently accurate for reporting;
COVID restrictions and are being fully however, we now have systems in place
decommissioned. One remaining installation to collate water data and plan to report
will be evaluated during the course of on water consumption moving forward.
2021 to determine if it should reopen.
We have never operated any swimming
pools or other similar ‘wet’ facilities.
During 2020, we trialled a revolutionary
toilet cistern at our new gym in Beverley,
which uses condensate from the air
conditioning units for flushing. This award-
winning product is continually topped up
with water produced by the air conditioning
system which would normally have goneOVERVIEW STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS 41
Case study
LOW CARBON GYM
Beverley is the location
of one of our first ‘small box
gyms’, which enable us to
open in towns that would
previously have been
considered too small
for our operation. As well as
developing a model to meet
the needs of the members
and delivering affordable
fitness, we took the Ventilation Air conditioning
Gyms require plenty of clean fresh air for the Our gyms are always fully air conditioned
opportunity to incorporate exercise that’s going on inside, as well as and we use the latest advanced, high-
energy and water-saving removing the stale air that’s generated by it. efficiency air conditioning systems. As we’re
measures to make this To keep it fresh, we don’t recirculate any of open 24/7, we need to keep close control
of our operations to make sure we’re not
gym one of the most the air from the gym, but instead of throwing
wasting our energy. The system at Beverley
away the energy we’ve used to heat or cool
environmentally friendly we the air from outside, we run it through a has a sensor on every unit, which scans
have opened. Some of these ‘plate heat recuperator’, to bring the outside the room to detect exactly how many
initiatives are outlined here. air in line with the temperature inside, with people are in the space and switches off
up to 85% temperature efficiency. The the air conditioning when it’s not needed,
We now have three small fans are direct drive using high-efficiency while ensuring the empty room isn’t too
catchment gyms – Newark, permanent magnet EC motors, which are hot or cold for the next occupant. The air
Beverley and Lowestoft – in a class of their own and allow stepless conditioning control system also offers full
control of the airflow and therefore power online reporting of both live and trending
and we will be rolling out during periods of low occupancy. power consumption and provides us with
more sites in 2021. full maintenance reports and alerts.
Hot water
The hot water provided to the showers and
basins is generated by an air sourced heat
pump connected to the air conditioning. By
absorbing the heat created from cooling the
gym and converting it into hot water for the
showers, the heat pump removes the need
for a gas supply, further lowering the carbon
footprint of the site. The high-efficiency
showers also result in lower hot water
consumption and therefore energy demand.
Water
The showers have automatic flow rate Lighting
regulation at the showerhead, and All of the light fittings in Beverley are high-
timed operation, providing an 80% water efficiency LEDs, including the external
saving in comparison to conventional signage. They are also installed to allow
lever control, without compromising 50% of the lights to be switched off
the shower experience. Taps are ‘non- automatically during overnight periods, even
concussive’ (self-closing) and require when operating 24/7. All individual rooms
no external power source, delivering a also have infra-red detectors to switch
timed flow of water and avoiding waste. lighting off when rooms are not occupied.
We have also installed a revolutionary toilet
50%
cistern that uses condensate from the air
conditioning units for flushing. This award-
winning product is continually topped up
with water produced by the air conditioning
system that would normally have gone
of the lights are switched off automatically
direct to the drain, reducing the amount during overnight periods, even when
of mains water required for each flush. operating 24/7THE GYM GROUP PLC 5th Floor OneCroydon 12-16 Addiscombe Road Croydon CR0 0XT www.tggplc.com www.thegymgroup.com
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