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CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Sustainability is...
Sustainability in action
Linking sustainability to the bottom
line
27.2M SUSTAINABILITY CONTRIBUTION TO PROFIT IN
2014
An inclusive workplace
FAIR OPPORTUNITIES FOR EX-OFFENDERS WHEN
APPLYING FOR JOBS
Waste no more
READ MORE
27.2m
51%
49%
87%
of apprentices found
employment or pursued further
education
17%
95%
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Carillion is...
building a successful
Sustainability makes us
more profitable: fact
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Sustainability in action
Materiality review
Investing in integrity
Governance and
risk
Integrity and
ethics
About this report
5.1bn
216.9m
27.2m
contribution to net
profit through
sustainability strategy
Targets
2014: 25m
2020: 40m
Target achieved
VIEW OUR FULL PERFORMANCE AGAINST TARGETS
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
ABOUT US
TRIED/TESTED/TRUSTED
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report
TRIED/TESTED/TRUSTED
We have a track record of delivering sustainable, cost-effective
solutions for our customers safely and of creating positive
legacies for the communities where we work and live. Whether
it is providing facilities management services for over 100,000
buildings, the management and maintenance of transport and
utility networks or delivering award-winning cultural,
residential, commercial or community developments we
strive to deliver high-quality services that make a positive
difference to people and communities.
We have continued to respond decisively to challenging market
conditions to create a leaner, stronger business, capable of
delivering growth over the medium term. As well as rescaling
some of our existing businesses to ensure they are aligned in
size to their markets, we have strengthened our positions in
markets that offer opportunities for growth. Strong corporate
governance, together with rigorous risk management
processes and our efficient central operating platform, help us
to deliver the most complex projects successfully.
We are a trusted partner when trust matters most. We provide
mission-critical facilities management services to public and
private sector customers, notably in the health, defence,
secure accommodation, financial services and energy sectors.
We keep transport and utility networks operating 24/7 and
4.1bn
42,000
employees
Working and
achieving together,
caring and improving
these values help
us to deliver
outstanding support
services for our
clients, and to build
real trust and
strength in our
teams.
NIGEL TAYLOR,
Managing Director,
Services UK
OPERATING SEGMENTS
Business units
At Group level, we report our financial results in four business segments.
Support services
Including our facilities management, facilities services, energy services, rail
services, utility services, road maintenance and consultancy businesses in the UK,
Canada and the Middle East.
Order book plus probable orders
14.1bn
Underlying operating profit
135.9m
1.2bn
Underlying operating profit
34.5m
Middle East construction services
Including our building and civil engineering activities in the Middle East and North
Africa.
Order book plus probable orders
0.9bn
Underlying operating profit
25.1m
Construction services (excluding the Middle East)
Including our UK building, civil engineering and developments businesses and our
construction activities in Canada.
Order book plus probable orders
2.4bn
Underlying operating profit
41.5m
2012
2013
2014
Operating costs
761.0
751.0
777.7
94.7
100.7
103.5
5.7
7.8
7.7
2.2
1.9
1.8
115.1
58.4
97.2
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
2014 AT A GLANCE
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
4.1bn
Group revenue
27.2m
+37
99A
profit contribution
through
sustainability
strategy
49%
reduction in All
Accident Frequency
Rate (AAFR)
17%
Investing in Integrity
Charter Mark
reduction of our
carbon footprint
since 2011
(normalised)
28%
51%
reduction in water
use since 2012
95%
of waste diverted
from landfill
1%
pre-tax profit
donated to
community
activities
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report
WHAT NEXT?
Here is a snapshot of just some of the areas we will be working
on during 2015.
Building a successful
business
Reduce costs and increase efficiency to improve
margins and deliver 32.5 million to profitability
Deliver cash-backed profit
Embed the new Board Sustainability Committee
Undertake focused stakeholder engagement to
further understand the most important issues
across our regions, including a specific materiality
review in Canada
Understand better what matters to our clients in
sustainability, and how that can help improve
customer satisfaction
Supporting sustainable
communities
Measure and monitor actions that will have the best
positive impact for the communities where we work
and live
Ensure every site has a community needs plan,
bringing our total to 100%
Continue rolling out our plan to create 5,000 new
apprentice places across the 5 years to 2020
Enabling low-carbon
economies
Develop and implement our plan for carbon
reduction towards 2020, such as green energy
production and consumption; addressing the
embodied carbon of our projects; and helping
customers reduce their carbon
Continue our focus on transparency and climate
change adaptation under CDP aiming to maintain
our lead of the Industrials sector
A critical part of
Carillions long-term
sustainability will
come from winning
the war for talent and
skills and progress
has really been made
this year!
DAME JULIA
CLEVERDON DCVO,
CBE, Vice President
of Business in the
Community and
Special Advisor to
The Princes Charities
Sustainability is a
many-splendoured
thing! And todays
sustainability
reporting reflects
that, getting both
more comprehensive
(in overall scope) and
more forensic (in its
detail) all the time.
Carillions report is a
model of its kind,
embracing the full
gamut of
environmental, social
and governance
issues, with constant
connectivity back to a
core economic
rationale.
JONATHON PORRITT,
Founder Director of
Forum for the Future
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report
A structured plan and stretching targets: these are what our stakeholders
expect of us and what drive tangible benefits to our bottom line. Thats
why we launched our vision and strategy in 2011 and our six positive
outcomes to guide our work.
Building a successful
business
We will increase shareholder value through our sector
leadership and focus on profit contribution through
sustainable efficiencies, value creation and waste
elimination.
27.2m
profit contribution
through sustainability
strategy
Carillion is a member of
the FTSE4Good Index,
which measures the
performance of
companies that meet
globally recognised
corporate responsibility
standards.
Supporting sustainable
communities
Our leadership in creating employment and skills
opportunities, coupled with our understanding of
communities needs, will have a significant and net
positive contribution everywhere we work.
Enabling low-carbon
economies
Our services will help Carillions customers work towards
minimising carbon, so together we become the lowest
carbon producers in our respective sectors.
We are a member of
Business in the
Community (BITC) and
participate in the BITC
Corporate Responsibility
Index, which ranked us a
Four Star company.
The profit
contribution from our
Sustainability 2020
strategy is significant
and growing all the
time, proving that
far from simply being
nice to have
building a sustainable
business is critical for
shareholder value
and long-term
commercial success.
RICHARD ADAM,
Group Finance
Director
STAKEHOLDER PRIORITIES
In 2014, we conducted our first materiality review to
understand our stakeholders most significant priorities and
report on what matters to them. The independent review
included workshops, interviews and an international online
survey for employees, clients, governments, investors,
suppliers, community groups and sustainability organisations.
We received 360 responses to our online survey. The majority
(80%) of responses were from employees, and most of these
were based in the UK. We will be looking to diversify this going
forward. Some of the most material issues identified were:
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
BENCHMARKING
EVOLVING PRIORITIES
KEY
Target achieved
Integrity and
ethics
Behind schedule
Verified by Bureau
Veritas
Verified by other
external party
LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
27.2
million
32.5
million
40
million
by
2020
suppliers
LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
Achieved Level 5
Level 5
by 2015
35%
100%
by
2020
READ MORE
40%
READ MORE
LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
49%
56%
70% by
2020
65%
75%
80% by
2020
14%
22%
50% by
2020
READ MORE
LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
51%
60%
Maintain
at 60%
87%
90%
95% by
2020
96%
100%
Maintain
at 100%
READ MORE
1% pre-tax profits donated to
community activities either in cash or
kind
1%
1%
1%
4%
10%
Maintain
at 10%
READ MORE
LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
17%
20%
24% by
2020
11%
20%
20%
reduction
by 2015
24%
20%
20%
reduction
by 2015
96%
100%
Maintain
at 100%
READ MORE
LONG2014
2015
TERM
PERFORMANCE TARGET TARGET
95%
98%
(zero
waste)2
Zero
waste to
landfill
28%
25%
25%
reduction
by 2015
99%
100%
Maintain
at 100%
READ MORE
1. Hard to reach covers a wide range of groups and are those with real or perceived barriers to
engagement/employment.
BENCHMARKING
We also participate in benchmarking exercises, to understand
our performance against best practice and be the leader in our
industry sector. We are proud to be listed in leading indices,
including the FTSE4Good Index Series and Business in the
Communitys (BITC) Corporate Responsibility Index.
BITC CR Index
2013
2014
2015
Carillion score
96
96
97
90
85
91
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
MANAGING SUSTAINABILITY
Our sustainability governance ensures our operations, targets
and plans are managed and delivered in a consistent,
responsible and transparent way. Richard Howson, Carillions
Chief Executive, is responsible to the Board for sustainability,
while Chief Sustainability Officer, David Picton, is accountable
for sustainability across the Group. A Board Sustainability
Committee has been introduced, chaired by Dr Ceri Powell, a
Carillion Non-Executive Director, and is now in operation. This
will provide oversight on behalf of the Board for priorities,
targets and challenges material to the Sustainability 2020
Strategy and its management across the Group.
Our Board and Executive leadership teams are also advised by
a Sustainability Advisory Committee, which includes directors
from our business units as well as two independent external
advisors Dame Julia Cleverdon DCVO, CBE (Vice President of
Business in the Community and Special Advisor to The Princes
Connecting
industry and
Parliament
Carillions Chief
Sustainability Officer
David Picton was
appointed Commissioner
to the Industry and
Parliament Trust
Sustainability
Commission in
CSR Label
Al Futtaim Carillion has
recently been accredited
with the Dubai Chamber
CSR Label award
recognising our
commitment to operating
responsibly.
BOARD OF DIRECTORS
The Board reviews progress monthly. Richard Howson,
Chief Executive, has Board-level responsibility for
sustainability while Chief Sustainability Officer, David
Picton, has overall accountability for sustainability across
the Group.
auditors;
sustainability legislation and regulations; and
engagement with internal and external stakeholders
on sustainability.
REMUNERATION
In 2014, the Chief Executives objectives included, to lead the
Groups health and safety and sustainability strategies and aim
to deliver continuous improvement in performance.
Our target is to achieve by 2020 a 40 million contribution to
profit as a result of our sustainability programme. It is also one
of our Chief Executives annual bonus targets, sitting alongside
other social, environmental and governance measures to
create a balanced sustainability programme.
Our policy is to ensure that remuneration and other benefits
attract, motivate and retain Executive Directors and senior
managers of the calibre required to achieve the Boards
objectives, including economic responsibility and growth in
shareholder value. Our remuneration policy is derived from
our strategic objectives, which specifically include achieving
leading standards of sustainability, health and safety,
environmental and social performance.
We aim to ensure that pay is fair, consistent and appropriate to
our culture and community. For our full statement and more
details on remuneration, see our 2014 Annual Report and
Accounts (PDF 5.7 MB).
SHAREHOLDER RELATIONS
We welcome and encourage engagement with shareholders.
Our contact details are available on our website. The Board
and senior management team communicate regularly with our
shareholders through:
RISK MANAGEMENT
The Board is ultimately responsible for ensuring that the
Groups risk management systems are suitable for identifying
and evaluating significant sustainability risks. Alongside our
legal obligations and anti-corruption measures, we invest in
integrity with our rigorous business integrity policies and
procedures. Managing social, environmental and ethical risks
is also an integral part of delivering contracts successfully.
We evaluate risk at every stage, from initial thought processes
to assessing how suppliers and subcontractors are likely to
perform through our supply chain management safeguards.
For our people, risk management is practical and structured
but also a reflection of their attitudes. We use the following
processes to manage risk correctly:
SUSTAINABILITY RISK
Reduction in public spending on
construction contracts
MITIGATION
Potential growth in our services business as
governments look to subcontract work to help
deliver cost savings
New business opportunities in sustainable
products and services with new and existing
clients
suppliers
SUSTAINABILITY RISK
MITIGATION
SUSTAINABILITY RISK
MITIGATION
SUSTAINABILITY RISK
MITIGATION
SUSTAINABILITY RISK
MITIGATION
SUSTAINABILITY RISK
MITIGATION
Biodiversity:
Biodiversity:
Waste to landfill:
Financial implications as costs rise
Reputational risk of not taking enough
action to tackle waste
Resource management:
Loss or decline of resources needed for
our business, specifically timber and
water, and consequent price rises
Waste to landfill:
Reduce costs by diverting waste and assess
scope to realise value from waste
Increase engagement with key stakeholders and
advisory groups to target an effective zero waste
to landfill and minimise waste overall
Resource management:
Building mutually beneficial partnerships with
organisations such as the Forest Stewardship
Council (FSC-UK)
Investigate and invest in appropriate alternative
resource use
Pollution prevention:
Prosecution for failure to comply with
local legislation
Ethical sourcing:
Purchasing products and materials that
havent been responsibly and ethically
sourced
Lack of waste recycling facilities in
some of our Middle East operations
and geographical dispersal of our
operations in Canada
Pollution prevention:
Environmental management policies, backed up
by specific, targeted training and systems for
managers and operational teams
Ethical sourcing:
Timber strategy and policy through WWF Global
Forest & Trade Network, targets and evidence
for local spend with small and medium
enterprises, alignment to UK Flexible Framework
principles
Investigating opportunities to create the
infrastructure to support our operations in these
areas, or to partner with appropriate specialist
organisations
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
Our 2020 strategy
Targets and
performance
Governance and
risk
Integrity and
ethics
About this report
Investing in Integrity
Our international operations were awarded the Investing in
Integrity (IiI) Charter Mark following a rigorous
accreditation process involving 3,000 of our people. The
Charter Mark enables us to reassure stakeholders that we
commit to acting with integrity at all times: we are the only
business in our sector to achieve it.
The independent accreditation included site visits,
interviews and surveys carried out by an independent
1,500
hours
By signing up to
Investing in Integrity,
Carillion has begun a
journey which will be
challenging and
rewarding. They have
worked hard across
the UK, Middle East
and Canada to gain
accreditation. By
achieving IiI, Carillion
has demonstrated
they are serious
about behaving
ethically.
PHILIPPA FOSTER
BACK CBE, Director,
Institute of Business
Ethics
PwC Building
Public Trust
Award
first FTSE company to
retain the FTSE 250
Sustainability Reporting
Award for a second
consecutive year
WHISTLEBLOWING
We actively encourage our people to raise concerns about
fraud, corruption, or any other malpractice at the earliest
possible stage. They can do this by talking to their managers or
through monthly Team Talks and feedback sessions. We also
have a confidential whistleblowing hotline provided by an
independent third party. Details of our approach are in our
Whistleblowing Policy.
In 2014, 210 whistleblowing cases were reported across
Carillion. Of these cases, 122 related to fraud, 59 related to HR
and 29 cases were categorised as other.
As at 31 December 2014, 164 cases have been investigated and
closed, and among these closed cases, 51 resulted in either
disciplinary action taken against our people, the
reimbursement of losses or the implementation of control or
process improvements to prevent or reduce the likelihood of
the impropriety occurring again. The remaining 113 cases were
either unfounded or required no action. As at 31 December
2014, 46 whistleblowing investigations were in progress.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
BUILDING A
SUCCESSFUL
BUSINESS
About us
2014 at a glance
Welcome from
our Chief
Executive and
Chairman
Views from our
Chief
Sustainability
Officer and
independent
advisors
This is our 15th sustainability report. It is structured around the six positive
outcomes of our 2020 strategy and aligned to our material issues, as
guided by our stakeholders. This report, alongside our sustainability
strategy and policies, is available on our corporate website.
SCOPE
The report covers Carillions international operations during
the 2014 calendar year, encompassing the UK, Canada, the
Middle East and North Africa (MENA).
Targets and
performance
Governance and
risk
Integrity and
ethics
ASSURANCE
Bureau Veritas, an independent professional services and
compliance specialist, has assured our performance against
specific sustainability targets, factual statements and
We welcome your
feedback on this report
and our approach to
sustainability. If you have
any comments or
questions please contact
us
Carillions 2013
sustainability report
demonstrated that
sustainability is an
integral part of its
core business and
the company wants
to communicate the
issues in an open and
accessible way. The
report demonstrates
a clear understanding
of the sustainability
impacts of the
business and how
this links to future
viability of the Group,
especially around
resource usage. In
addition, Carillion
demonstrated some
interesting and
innovative ways of
presenting
2014
Achieved
information and
engaging
stakeholders, such as
their 2020
Sustainability Vision
brochure and the
Sustainability Talk &
News initiative.
ALAN MCGILL,
Partner, Sustainability
and Climate Change,
PwC
2014
49%
Supporting sustainable
communities
WHAT CARILLION SAID
2014
51%
96%
1%
Enabling low-carbon
economies
WHAT CARILLION SAID
2014
17%
11%
25%
2014
95%
28%
STATEMENT OF INDEPENDENCE
Bureau Veritas is an independent professional services
company that specialises in quality, health, safety, social and
environmental management advice and compliance with over
180 years history in providing independent verification and
assurance services. Bureau Veritas has implemented a code of
ethics across its business which ensures that all our staff
members maintain high standards of integrity and
independence. We believe our verification assignment did not
raise any conflicts of interest. Our team completing the work
has extensive knowledge and experience of conducting
verification over sustainability information and systems.
London, 18th of March 2015
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Carillion is
Customer
experience
Sustainable
innovation
Sustainability in action
Prompt payment
Supply chain
management
Collaborating with
suppliers
Sustainable timber
READ MORE
+37
6,783
international suppliers
accredited to MyRegister
2013: 6,442
35%
of suppliers responded
positively to sourcing
materials from ethical
sources
Targets
2014: 10%
2020: 100%
Target achieved
VIEW OUR FULL PERFORMANCE AGAINST TARGETS
Level 4
of the Sustainable
Procurement Task Force
Flexible Framework
maintained
Targets
2014: Achieved
2015: Level 5
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
CUSTOMER EXPERIENCE
OUR HOSPITAL IS ONE OF THE BEST FOR CLEANLINESS
Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers
+37
1m
Clientcontractor awards
Carillion Alawi was named Contractor of the Year at the
Construction Week Oman Awards 2014 in the Grand Hyatt
Muscat. The award recognised Carillions ability to deliver
projects within tight timescales, while maintaining a zero
tolerance approach to accidents. It has also managed to
maintain a steady growth despite challenging markets in
recent years.
In the UK, the Library of Birmingham was named
Construction News Project of the Year (over 50 million).
Judges praised clientcontractor collaboration through the
six-year project. The library was also shortlisted by RIBA
Chartered Architects for the prestigious RIBA Sterling Prize
11.6m/
95,000t of
CO2
Manager, Facilities
and Services,
Canadian Natural
Resources Limited
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
SUSTAINABLE INNOVATION
IMPROVING LIVES AND SAVING CARBON WITH ECOPODS
Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers
Our people are continually looking for ways in which we can do things
differently and create even more benefits for customers, communities and
the environment.
Our Sustainability Investment Fund has helped to support this thinking across the company,
providing up to 120,000 for research, innovation or implementation in a variety of projects.
Funds are awarded to support the delivery of one or more of our six positive outcomes, and we
look for proposals that could improve our work or even develop new products and services. For
example, in 2014, our construction services applied for funding to reduce waste by upgrading
machinery and purchasing materials to develop a recycling area.
See Sustainable design for examples of how we are integrating innovative ideas and practices
from the outset of our construction work.
experiences and to
learn from others
through the NHS
Sustainability Day
programme of
events.
NUALA GILMARTIN,
Business
Development,
Carillion Health
See NHS Sustainability
Day in action
Manchester and
Birmingham
energy savers
A partnership between
Carillion and Birmingham
City Council will see 24
EcoPods installed across
the city. The significant
energy savings, together
with Energy Company
Obligation funding, will
help fund the project.
The first phase of six
EcoPods was completed
late in 2014, comprising
350 homes and saving a
total of 17,000 tonnes of
CO2 over the lifetime of
the system. 2015 will see
a further 16 EcoPods
serving a further 644
homes and saving
50,000 tonnes of
carbon.
VIEW ALL CASE
STUDIES
140,000
and 12,500t
CO2 savings
at the Four Seasons
Hotel project in Abu
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers
977.6m
paid to 396 suppliers
6,783
accredited suppliers
internationally against
commercial, health and
safety, quality and
sustainability indicators
100%
UK CONTRACTORS GROUP
We are members of the UK Contractors Group. Membership
commits around 30 companies to work with their supply chain
to reduce waste and greenhouse gas emissions.
We support the Governments construction industry strategy
(Construction 2025) for greater resource efficiency and a 50%
reduction in greenhouse gas emissions in the built
environment by 2025. It supports a number of WRAP Built
Environment Commitments to take actions through the supply
chain that contribute to a lower-carbon, resource-efficient built
environment.
Procurement
Pledge
Carillion signed the
Governments
Procurement Pledge
Carillion in Qatar
Carillion sets best-in-class standards for our peoples
health, safety, human rights and working conditions
wherever we work. We also set high standards of
corporate governance, supported by policies and
procedures that are applied rigorously across our
business. These are not just standards we set for the
benefit of those we employ directly, but also standards
from which our supply chains people should benefit.
In regions such as the Middle East, where we have operated
for over 40 years, we make strenuous efforts to ensure
that our supply chain aligns with ISO standards, as well as
local laws. We make it clear to all our subcontractors that
they must comply with Carillion health and safety standards
on our sites the same as those applied in the UK. In
addition, we require our subcontractors to comply with the
requirements set within Qatar Labour Law in respect of
payment of wages, living conditions and employment
rights.
We work closely with our suppliers, and where we identify
inappropriate practices or subcontractors/sub-suppliers
not meeting our standards we will work with them to help
them improve. If they are either not prepared or unable to
do this, we will engage alternative suppliers who are able to
do so.
In Qatar, Carillion is contracted to deliver phase 1B of the
Downtown Doha project, a mixed-use development
comprising retail, commercial, residential, leisure, cultural
and community facilities. Our work on this scheme has won
a key industry Sustainability Project of the Year Award.
While this was principally in recognition of our
achievements in minimising environmental impact, it also
reflects Carillions leading role as a responsible contractor
and employer in the region.
You can find out more about our standards and practices in
Qatar in this section of our corporate website.
VIEW ALL CASE STUDIES
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Customer
experience
Sustainable
innovation
Supply chain
management
Collaborating with
suppliers
Ethical
Supplier
Collaboration
Award
For Carillion Services
contribution to
Nationwides supply
chain
best-practice resources to help FM suppliers and subcontractors develop their sustainability knowledge and
competence;
self-assessed action plans to demonstrate
benchmarking, and routes of progress towards greater
skills;
e-learning modules, plus unique management systems
to track progress;
opportunities for involvement at supplier development
days and sustainability workshops; and
access and input to other groups, events and initiatives
within the wider Supply Chain Sustainability School
(including groups focused on construction,
infrastructure and research).
We ran our first Supplier Day with the School at Liverpool in
April 2014, linked to our operations to build the Royal
Liverpool University Hospital, with just over 110 delegates
attending from 90 different companies. We covered
perspectives from Carillion, from other partners in the School,
from suppliers and from the Business in the Community
regional teams who we work with to engage local communities
and develop social value for the region.
We are also members of the Schools Horizon Group
comprising industry main contractors and partner universities
specialising in the built environment. The group aims to
improve the supply chains capability to deliver a sustainable
built environment through collaborative research, and we are
driving the first significant project to review ethical sourcing
competence, knowledge and skills among the supplier base.
Watch the video.
750 lorry
movements
and 45t of CO2 saved on
the Battersea Power
Station Phase 1 contract,
by collaborating with our
supplier Groundworks to
remove waste by barge
Funding
Partner
for the Supply Chain
Sustainability School
51%
Facility.
3,700
SME suppliers
Sustainable timber
Carillion has become one of the first British businesses to
sign up to WWF-UKs new forest campaign. The pledge
commits companies to responsible forest trade and 100%
sustainable timber and wood products by 2020, and we
will continue to work with suppliers to develop our Timber
Procurement Policy. In Oman, Carillions joinery workshop
was the first in the country to have Forestry Stewardship
Council (FSC) chain of custody certification, providing
assurance on responsible sourcing of timber products.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Carillion is providing
better prospects for our
Safety
performance
Sustainability in action
Health and
wellbeing
Aboriginal relations
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data
Employing ex-offenders
28%
23%
49%
reduction in All
Accident Frequency Rate
Targets
2014: 39%
2020: 70%
14%
2014: 15%
Target achieved
Behind schedule
2020: 50%
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
SAFETY PERFORMANCE
MANAGING AND IMPROVING PERFORMANCE
PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE
Safety
performance
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data
Lost Time
Incident
Frequency Rate
0.24
All Accident
Frequency Rate
2.31
(2013: 2.81)
(2013: 0.29)
Safety award
Our excellent safety
record in Canada was
recognised with a Safest
Employer Silver Award at
the Canadian
Occupational Safety
Awards. The national
awards programme
recognises Canadian
companies that are
making a difference in
protecting the health and
safety of their people,
through initiatives such
49%
reduction
BS OHSAS
18001
standard for health and
safety management
systems for the UK,
Middle East and North
Africa
Winner
Royal Society for the
Prevention of Accidents
Occupational Health and
Safety Award, Carillion
Training Services
Award
LOOKING AHEAD
In 2015, in addition to continuing our focus on our key risks
such as work at height, electricity and moving vehicles and
plant, we will be focusing on reviewing and improving safety
when our people are driving or travelling on the road.
In Canada, for example, we will be working with the Ontario
Ministry of Transportation to improve winter lighting on heavy
maintenance equipment and testing prototypes to inform a
potential new standard.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE
Safety
performance
Looking after our people and contractors is not just a moral obligation, it
makes clear business sense. Our people being well and healthy is vital to
our success.
In 2014, we launched our new Occupational Health strategy, Health Like Safety, which aims to
raise the status of health as a key component of our overall objectives and strategy. Health Like
Safety includes a dedicated health plan and health champion at all locations in order to:
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
promote wellbeing and healthy lifestyles while recognising that this remains a matter of
personal choice; and
prevent work-related cancers and other chronic health conditions caused or made
worse by work;
optimise our approach to dealing with sudden cardiac arrest in the workplace.
Promoting
diversity
38%
Performance data
62%
Employee assistance
Employee assistance, offering
services such as free education
advice, childcare guidance and
employee counselling, with a 24-hour
telephone support service
Health Matters
Health Matters, a monthly information
service, in partnership with our
occupational health provider, aimed
at giving good-quality information on
personal health issues. Feedback
from employees has been extremely
positive
RoSPA Award
Carillion Training Services was a winner at the Royal Society
for the Prevention of Accidents (RoSPA) Occupational
Health and Safety Awards 2014. The Education & Training
Services Sector Award recognises commitment to
continuous improvement in accident and ill health
prevention at work. Judges consider entrants overarching
occupational health and safety management systems,
including practices such as leadership and workforce
involvement.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Safety
performance
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data
COMMUNICATING SUSTAINABILITY
AN EXEMPLAR EMPLOYER
Supportive employers
are essential to
ensuring that
reservists are able to
contribute effectively
to the safety and
security of the UK.
Carillion is an
excellent example of
that. They
understand the
benefits that
reservists can bring
RECRUITING TALENT
We aim to recruit from our existing staff where possible and
advertise all roles internally for a minimum of two weeks. Our
next step is to recruit people locally, supporting local
economies, reducing costs and carbon through commuting
and strengthening community relationships.
We strive to treat all job applicants fairly and to eliminate any
bias or unlawful discrimination. All our managers receive
guidance and training on how to tackle unconscious bias and
consider each applicant on merit alone.
to their organisation,
and are prepared to
go the extra mile to
ensure that their
reservists are able to
meet their training
commitments.
MAJOR GENERAL
JOHN CRACKETT,
Assistant Chief of
Defence Staff
(Reserves and
Cadets)
BITC Sieff
Award
Elena Gonzalez, Carillion
Corporate Responsibility
Manager, received the
Business in the
Community West
Midlands Sieff Future
Business Leaders Award,
which recognises the
next generation of
sustainability leadership.
14%
COMMUNICATING SUSTAINABILITY
We deploy a variety of methods and local languages to convey
our sustainability priorities. Formally, business Unit Steering
Groups and Working Groups make sure businesses have a
plan to implement the 2020 strategy, while informally, a
highlight was our Group-wide Sustainability Week. In Oman,
Carillion Alawi supported the Environment Society of Oman on
their environmental projects and the Speciality Work Division
and United Engineering project teams installed 30
environmental awareness boards at Masirah Island to help
protect loggerhead turtles and other endangered species
found on the island.
An exemplar employer
Carillion has been commended for its commitment to the
Armed Forces with a Gold Level Award under the MODs
new Employer Recognition Scheme.
Described as an exemplar employer we were one of the
first 50 companies to sign up to the Governments
Corporate Covenant, which pledges to help, support and
champion the military, as well as the communities and
families of defence workers.
We are a lead employer in support of the MOD and
Department for Work and Pensions Armed Forces
Employability Pathways programme, and are pioneering
the provision of work placements for job seekers who
commit to joining the Reserves.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
PROMOTING DIVERSITY
YOUR LIFE CAMPAIGN AND STEM SUBJECTS FOR GIRLS
PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE
Safety
performance
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data
77%
Female
23%
Equality and
Clear
Assured
status
for the second year
running, following the
annual European Quality
Assurance audit
42,000
people
A diverse workplace
is not simply about
ticking boxes or
finding token role
models; it is the
prime route to better
thinking through a
powerful mix of skills,
attitudes and
capabilities in a highperforming, inclusive
culture.
JANET DAWSON,
Group HR Director,
Carillion
Chicks with
Bricks
As part of our work in
2014 we sponsored
inspiring industry events
such as Chicks with
Bricks, alongside active
membership of other
initiatives such as
Women on Boards and
Business in the
Communitys
Opportunity Now
programme.
We also have a team of
female Construction
Ambassadors who work
with the Construction
Industry Training Board
to inspire female
students in the range of
opportunities that the
industry can offer
women.
VIEW ALL CASE
STUDIES
GENDER PATHWAYS
We believe that inspiring more women to pursue senior
management roles will help us to significantly grow our
business. Currently, 12% of our leadership population are
female (25% on the Board), and were aiming for 30% across
our senior management teams. This will reflect the same
female representation we have at operational levels. Were
trying to inspire women into senior roles by providing targeted
support through groups such as the Women in Leadership
Network and the 200strong Working Mums Network.
Our Leadership Team has set detailed and grade-specific
Gender Pathways targets including:
%
2011 2012 2013 2014
Women on our Leadership Development
programme
22
23
25
32
Aboriginal relations
Carillion Canada has become a Patron Member of the
Canadian Council of Aboriginal Businesses, which is
dedicated to promoting Aboriginal communities within the
Canadian economy, has signed up to the Progressive
Aboriginal Relations programme and is a major sponsor of
a First Nations employment training camp. It is part of our
strategy to be the partner of choice for Aboriginal
communities and businesses across Canada.
Over 300 employees received training in cross-cultural
awareness in 2014 (1,000 to date) and sponsorship of
Canadas First Nations Natural Resources Youth
Employment programme supports the education and
employment of Aboriginal youths. In the 14 years since the
programme started, 93% of participants completed it,
compared to only 58% of Aboriginal youths who graduate
from high school.
A focus remains on inspiring young aboriginal women into
education and employment. Petrina Fudge, Executive
Director at Bouchier, has been personally involved in the
Applauding Aboriginal Women in Business initiative with
Nicole Bourque-Bouchier, CEO at Bouchier. Together, in
their leadership roles they seek to inspire and support
Aboriginal women from across Alberta in entering, and
working successfully in, a business environment.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
PERFORMANCE DATA
TOTAL EMPLOYEES
PROVIDING BETTER
PROSPECTS FOR OUR
PEOPLE
Safety
performance
Health and
wellbeing
Recruiting,
retaining and
engaging
excellent people
Promoting
diversity
Performance data
Total employees
%
2012
2013
2014
UK
50
45
50
MENA
43
48
42
Canada
Total employee numbers (including ethnicity and gender) and numbers from the leadership
population are extracted, almost in their totality, from the HR system across Carillion. However, other
similar HR systems are used for particular contracts.
2012
2013
2014
Asian
47
44
46
Black
White
34
41
41
16
This data excludes Canada: data is not currently captured in this region due to legislation
requirements.
2012
2013
2014
Asian
Black
White
61
71
73
30
16
13
2012
2013
2014
Asian
96
94
92
Black
White
Declined to state
2012
2013
2014
Male
81
77
77
Female
19
23
23
2012
2013
2014
Male
77
75
68
Female
23
25
32
2012
2013
2014
1625
11
11
2635
32
29
30
3645
25
24
25
4655
20
22
23
5665
11
13
13
66+
1. Excludes employees in the UK Joint Ventures and people employed in our healthcare contracts
under the Retention of Employment model.
UK
MENA
CANADA
Male
35
98
84
Female
65
16
UK
MENA
CANADA
1625
16
15
18
2635
26
17
51
3645
23
19
23
4655
24
26
5665
10
18
66+
UK
MENA
CANADA
Male
62
98
76
Female
38
24
UK
MENA
CANADA
1625
19
2635
23
48
17
3645
23
28
20
4655
24
12
25
5665
18
15
66+
Rate
2012
2013
2014
0.53
0.29
0.24
This key performance indicator is calculated as the total number of incidents that result in one day or
more (not including the day of the accident) off work per 200,000 hours worked for both employees
and subcontractors combined. As per OSHA definition, restricted work or light duties do not count as
lost time for the purpose of this indicator.
Rate
2012
2013
2014
3.62
2.81
2.31
This KPI is calculated as the total number of injury incidents that are recorded, regardless of the
severity of the injury that results, per 200,000 hours worked for both employees and subcontractors
combined. It measures the frequency of incidents lower down the accident triangle, which are a
predictor of the likelihood of more serious events.
2012
2013
2014
656
349
297
247
238
246
Fatal accidents
2012
2013
2014
Prohibition notices
Improvement notices
21
Prosecutions
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Carillion is...
supporting sustainable
A positive legacy
Employment and
training
Championing
apprenticeships
Sustainability in action
Volunteering
Performance data
Considerate construction
14%
87%
of apprentices found
employment or pursued
further education
2013: 86%
51%
2014: 45%
2015: 60%
Target achieved
VIEW OUR FULL PERFORMANCE AGAINST TARGETS
1%
2014: 1%
2020: 1%
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
A POSITIVE LEGACY
MAKING OUR MARK
SUPPORTING
SUSTAINABLE
COMMUNITIES
A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering
Performance data
Considerate
Constructors
Scheme
As a responsible operator
of construction sites, we
are proud to be an
Associate Member of the
Considerate
Constructors Scheme
(CCS), and are aligned to
the principles of its Code.
This sets out
requirements such as
minimising noise and
dust, and ensuring that
working hours reduce
inconvenience to the
local community.
During 2014, there were
127 CCS audits across the
78 projects registered
with the scheme. We
achieved a high score,
with a Carillion average
score of 39.9 against an
average score of 34.2.
The largest
apprentice trainer and
employer in our sector
96%
1%
Business Connectors
We seconded three people to Business in the Communitys
flagship Connector programme. Business Connectors are
trained by BITC to build partnerships that tackle community
issues in deprived neighbourhoods.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
SUPPORTING
SUSTAINABLE
COMMUNITIES
A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering
Creating local jobs for local people and buying our goods and services
from local communities is part of our positive contribution to thriving and
skilled communities.
Amid tough economic conditions and ongoing skills shortages, we work hard to drive
employment, training and education to build a diverse and resilient workforce. We specifically
support social mobility, especially among hard-to-reach groups, and we achieved our 2014 target
of at least 4% of our people engaging with schools, the unemployed and marginalised groups.
Below are some of the ways in which we met this target.
Performance data
Mentoring
women
Carillion Community
Services has joined
BITCs Womens
Mentoring programme to
help vulnerable women
reintegrate into
mainstream sustainable
employment and gain
economic independence.
Double
winner
of Business in the
Communitys (BITC) Big
Tick Awards for our
Ready for Work initiative
and our apprenticeships
programme
118
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
CHAMPIONING APPRENTICESHIPS
CONSIDERATE CONSTRUCTION
SUPPORTING
SUSTAINABLE
COMMUNITIES
A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering
We are the largest apprentice trainer and employer in our sector, and
recently committed to creating more than 5,000 apprenticeships over the
next five years.
Carillion delivered over 1,000 NVQs and apprenticeships in 2014, with more than 87% of
apprentices going on to find employment or pursue further education. These individuals have
gained skills for life and work beyond their time with Carillion.
We were awarded a prestigious Business in the Community Big Tick for Inspiring Talent at the
heart of our apprenticeship programme, which trains around 2,000 students at any one time
across 13 centres in the UK.
Performance data
As part of our commitment to creating 5,000 apprenticeships over the next five years, we will
offer apprenticeship interviews to all young people who graduate from the National Citizen
Service (NCS), the voluntary programme for 1617 year olds. We will also encourage our other
apprentices to enrol on NCS first.
Back to business
As part of Carillions
commitment to deliver
services to Oxfordshire
County Council, we
identified 92 roles to
deliver the Universal
Free School Meals
programme. We
appointed 52% of
unemployed people into
Considerate construction
The 13-storey office at One St Peters Square in Manchester
was named the best in the country by the Considerate
Constructors Scheme (CCS). The team was praised for its
exceptional community involvement, including the
creation of 61 apprenticeships and working with local
charities to help long-term unemployed people into work.
CCS is a national initiative to improve the image of the
construction industry, meeting a robust Code of
Considerate Practice and initiatives that make it considerate
towards neighbours, the public, employees and the
environment.
1,000
NVQs and
apprenticeships
delivered by Carillion
87%
of apprentices went on to
find employment or
pursue further education
52%
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
VOLUNTEERING
PARTNERING WITH BARNARDOS
SUPPORTING
SUSTAINABLE
COMMUNITIES
A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering
Performance data
1,813,277
(2013: 1,820,047)
$1 million raised
for William Osler
Foundation
Group
UK
(2013: 236,780)
(2013: 1,383,031)
290,593
1,164,039
MENA
Canada
(2013: 82,660)
(2013: 117,577)
144,507
214,138
1%
6 days
of paid volunteering
leave annually for each
employee
Equivalent value
(CA$)
(2013: 2,570)
(2013: $188,124)
2,885
$391,410
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
PERFORMANCE DATA
Note: MENA stands for Middle East and North Africa.
SUPPORTING
SUSTAINABLE
COMMUNITIES
A positive legacy
Employment and
training
Championing
apprenticeships
Volunteering
Performance data
2012
2013
2014
282,730
236,780
290,593
1,549,096
1,383,031
1,164,039
MENA
291,324
82,660
144,507
Canada
28,630
117,577
214,138
TOTAL
2,151,780
1,820,047
1,813,277
Group
UK
Our total community giving exceeded our target of 1% of our pre-tax profit. The total includes cash
donated to communities, financial cost of employee time and total cost of donations in kind.
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
economies
Climate change
and our impacts
Sustainable design
Our carbon
footprint
Sustainability in action
Performance data
Green House
OMAN TEAM WINS NATIONAL DESIGN
COMPETITION WITH THE HIGHER
COLLEGE OF TECHNOLOGY
17%
5m+
litres
25%
reduction in electricity
consumption from
Carillion offices
Targets
2014: 24%
Target achieved
2015: 20%
Behind schedule
11%
reduction in gas
consumption from
Carillion offices
Targets
2014: 19%
2015: 20%
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
Climate change
and our impacts
Sustainable design
Our carbon
footprint
Performance data
Our goal is to bring low-carbon solutions to our clients and suppliers and
to be as lean and carbon-efficient as possible in our own operations.
Cutting carbon is essential to achieving long-term global economic, social, and environmental
sustainability for our business and society. We have an opportunity to innovate in the services
and products we offer to achieve a competitive edge, reduce costs, reduce the demand on
energy and deliver greater operational efficiency.
Alongside other industry leaders, we committed to cut 24 million tonnes of carbon from
infrastructure contracts by 2050 as a result of the UK Infrastructure Carbon Review. We made
good progress against this target in 2014.
In British Columbia, Canada, our Energy Conservation Assistance Programme (ECAP) has helped
8,000 low-income families through free energy advice, saving them $400,000 (219,000). We
have also won another ECAP contract to deliver energy conservation to three First Nations
communities near Penticton, BC.
CEMARS
Carillion UK is accredited
to the Certified Emissions
Measurement and
Reduction Scheme for
measured, managed and
verified carbon
emissions.
Carbon reduction
commitment
For our UK Carbon
Reduction Commitment
(CRC) reporting, in
compliance year 2013/14,
our emissions increased
by 4% on the previous
year. This is the result of
the expansion in UK
operations, including
acquisitions in 2013/14. In
the absence of this
expansion, Carillions net
CRC emissions for
2013/14 would have been
reduced by more than
5%.
Reviving water
power
A Carillion development
in Durham has been
awarded a BREEAM
excellent rating largely
due to using 2,000-yearold technology to
generate renewable
electricity. An
Archimedes screw water
turbine will supply 75% of
the electricity needs to a
new riverside office.
The screw design
incorporates a fish pass
allowing fish and elvers
to travel upstream. It also
counts numbers and
species of fish as they
pass through. The 26
million Freemans Reach
development will be
home to the National
Savings & Investments
bank and a new branch
of the Passport Office.
VIEW ALL CASE
STUDIES
Total Carillion
Group
-17%
MENA
-40%
UK
-34%
Canada1
+112%
Finding innovative
ways to meet the
2050 targets set by
the UK Infrastructure
Carbon Review will
need us to think and
act differently,
working closely with
clients and suppliers
to develop new
materials, techniques
and better long-term
resilience.
ADAM GREEN,
Managing Director of
Carillion Construction
UK
CARBON INNOVATION
We are committed to drive innovation in carbon management,
including:
Off-site
construction
saves CO2
Caledonian Building
Systems in
Nottinghamshire won a
contract from Carillion
worth 42 million to
construct eight new
accommodation blocks
for The Royal School of
Military Engineering,
Minley.
A large number of
vehicles commute to the
site but thanks to off-site
construction, deliveries
were reduced by 82%
during the monitoring
period, contributing to a
CUSTOMERS &
SUPPLIERS
PEOPLE
COMMUNITIES
LOW-CARBON
ECONOMIES
ENVIRONMENT
SUSTAINABLE DESIGN
BUILDING INFORMATION MODELLING
Climate change
and our impacts
Sustainable design
Our carbon
footprint
Performance data
GREEN HOUSE
MODULAR BUILDINGS ARE BETTER
Visual
planning
winners
Carillion was the winner
of the 2014 Visual
Planning Awards, for our
work on the A465 Head
of the Valleys contract.
The awards promote
innovation in
construction project
delivery and recognise
Carillions visual planning
capability to provide
more efficient and safer
highway schemes.
140,000
saved
and 12,500 tonnes CO2
savings at the Four
Seasons Hotel Project in
Green House
An eco home constructed by Carillion Alawi for the Higher
College of Technology swept the boards at a national
competition. The GreenNest house won the Eco House
Design Contest for its grid-connected solar photovoltaic
system, greywater recycling and heat-barrier plants that
provide organic produce.
The first ever Oman Eco House Design Competition is part
of a long-term plan of the Sultanate of Oman in energy
conservation, development of renewable energy and
environment sustainability.
625t of CO2/
37,000
will be saved by using
LED lights at the Network
Rail and Thameslink
project over a 25-year
lifetime
CUSTOMERS &
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Climate change
and our impacts
Sustainable design
Our carbon
footprint
Performance data
POWERING CARILLION
SMARTER WORKING
Carillions carbon footprint includes direct and indirect emissions from our
operations, across all our regions. We have reduced our carbon footprint
by 17% in 2014 against a 2011 baseline (normalised).
This is largely due to efforts across the business to reduce
energy consumption and emissions arising from the operation
of our facilities, fleet and business travel. Our Carbon Policy
(PDF 108 KB) outlines how we will reduce our energy and
consumption arising from the operation of our facilities,
vehicle fleet, business travel and from our customers and
supply chain. Our aim is to:
17%
reduction in normalised
carbon footprint since
2011
Total Carillion
Group
-34%
UK
-45%
A pioneering
institution in
the Arab
World
Al Futtaim Carillion
recognised for its solar
energy installation, after
being nominated by the
Dubai Chamber. The
award was presented by
The Board of Trustees of
Tatweej Excellence
MENA
-39%
Canada1
+26%
Scope 1
Gas emissions calculated using kWh data from
suppliers
Commercial vehicles, company cars, plant fuel and
business mileage emissions calculated from fuel
card returns
The achievement of
Al Futtaim Carillion in
being named a
pioneering institution
reflects the hard
work of all our
people to try new
ideas and find
creative solutions to
complex problems.
SIMON WEBB,
Managing Director, Al
Futtaim Carillion
Scope 2
Electricity from our offices and sites emissions
using kWh data from suppliers
Scope 3
Rail travel emissions calculated using data
showing total distance travelled
Air travel emissions calculated using data for three
categories (domestic, short haul and long haul)
Smarter PCs,
smarter thinking
Carillion Canada is
investigating the
opportunity to source
green power, and this
process is ongoing. Initial
meetings have been held
to understand the scope
and viability.
POWERING CARILLION
In the UK, we procure Climate Change Levy-exempt energy
across our businesses where possible. Where it is not, we buy
energy from combined heat and power plants. For our Middle
East business, solar energy is gaining traction. Installing
photovoltaic panels on our Dubai head office has showcased
solar power and promoted our new energy services business.
SMARTER WORKING
Our Smarter Working Campaign in 2014 encouraged people to
adopt ways of working that saved time and natural resources,
lowered our impact on the environment and promoted a better
worklife balance. We also ran our 11th Sustainability Week,
which encompassed World Environment Day.
Wolverhampton head office: This is moving to a more efficient
building and our pilot campaign, Carillion Unplugged, has
reduced energy consumption by 10%, with 5% of the savings
going to a local charity. Following the success of this pilot, we
will be rolling similar schemes out across all UK offices at the
contributed to a CA$1.1
million (577,000) saving
by working with our
travel partner to reduce
company travel and
accommodation with
initiatives such as Travel
Blackout Weeks.
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beginning of 2015.
Building energy: Display Energy Certificates are placed in all
principal properties showing how they perform in terms of
energy efficiency. Trained Energy Champions are available at
many sites to drive energy-efficient behaviour and promote
best practice.
Plant fuel: We use a plant fuel calculator across all our civil
engineering sites. This simple tool gives us a much greater
understanding of where and when plant fuel is being
consumed. We also have telematics technology in our plant
machinery, giving site managers full visibility of when and why
machinery is using fuel, and with operators taking appropriate
steps to optimise performance.
Vehicle efficiency: Out on the roads, we encourage our
commercial drivers to drive with fuel efficiency in mind, helped
by a sophisticated telematics system which monitors speeds,
acceleration and braking, and relays data back to drivers and
managers. There are monthly competitions to reward the bestperforming drivers.
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PERFORMANCE DATA
CARBON FOOTPRINT (ACTUAL)
CARBON FOOTPRINT (NORMALISED)
Climate change
and our impacts
Sustainable design
Our carbon
footprint
Performance data
tonnes
2011
2012
2013
2014
% CHANGE
FROM 2011
265,743
211,796
201,206
175,709
-34
UK
126,465
86,827
63,680
69,260
-45
MENA
106,858
98,918
92,317
65,661
-39
32,420
26,051
45,209
40,788
+26
Canada1
1. The sharp increase in carbon emissions between 2012 and 2013 was due to improved data
capturing and reporting processes.
2011
2012
2013
2014
% CHANGE
FROM 2011
52
48
49
43
-17
UK
35
27
21
23
-34
190
203
173
114
-40
41
40
67
87
+112
MENA
Canada1
1. The sharp increase in carbon emissions between 2012 and 2013 was due to improved data
capturing and reporting processes.
tonnes CO2
2012
2013
2014
Scope 1
Combustion of fuel and operation of facilities
170,342
157,459
134,656
Scope 2
Electricity, heat, steam and cooling purchased for own use
26,804
27,059
25,116
Scope 3
Travel, paper and others
14,648
16,668
15,936
Total
211,794
201,206
175,709
The 2013 CO2e numbers shown on this page are actuals and have been restated from the estimates
published in the 2013 report. The 2014 CO2e numbers are subject to an adjustment as some of the actuals
for the last quarter of 2014 were not available at the time of publication and have been estimated based
on 2013 data. The non-financial figures reported in these tables have been reviewed by independent
external assurance provider Bureau Veritas. For details of the scope of work and opinion on the accuracy
of our stated performance, please see the full assurance statement.
What we include when we report
We report our greenhouse gas emissions (GHG) in tonnes of carbon dioxide equivalent (CO2e) from
the sources required under the Companies Act 2006 (Strategic Report and Directors Report
Regulations 2013). We have used the GHG reporting protocol to calculate our GHG emissions for 2014,
based on data gathered to fulfil our requirements under the CRC Energy Efficiency scheme and on
emission factors from the UK Governments GHG Conversion Factors for Company Reporting 2014.
We report on Scope 3 emissions from the following sources:
Business travel data is provided by Portman (our travel partner) which is responsible for booking
and tracking all rail, air and hotel base travel. Travel data from Canada is obtained from our travel
booking partners.
Rail travel emissions calculated using total distance travelled.
Air travel emissions calculated using data for three separate categories (domestic, short-haul and
long-haul flights) showing distance travelled.
Hotel stays emissions calculated based upon a standard hotel stay of 48kgCO2 per person per
night.
Paper use emissions calculated from total kg paper purchased and multiplied by CO2 factors
provided by paper supplier.
Water emissions calculated based on data showing total volume of water used.
Hire cars emissions calculated based on miles travelled and litres of fuel consumed.
Electricity and gas WTT emissions calculated based on kWh.
Electricity line losses emissions calculated based on kWh.
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Carillion is...
protecting the
A changing
environment
Sustainability in action
Waste
Water
Biodiversity
Performance data
Waste no more
Protecting natural habitats
WASTE-REDUCING INITIATIVES IN
CANADA
99%*
100%
performance report)
* based on 2013 performance
95%
2014: 96%
Target achieved
2015: 98%
Behind schedule
28%
reduction in water
consumption since 2012
Targets
2014: 15%
2015: 25%
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ENVIRONMENT
A CHANGING ENVIRONMENT
PROTECTING THE
ENVIRONMENT
A changing
environment
Waste
Water
Biodiversity
Performance data
ENVIRONMENTAL MANAGEMENT
Our robust environmental management systems (EMS) are fully
integrated into our wider corporate risk management
processes and help us provide assurance to our customers
and suppliers. All our established operations in the UK, the
Middle East and North Africa are certified to the ISO 14001
international environmental standard, as is Carillion Canadas
Roads Maintenance business in Ontario.
The Carillion EMS (ISO 14001 certified), which includes our
Sustainability Leadership Plan and our environmental policies,
helps us to identify and manage our environmental impacts.
Central to managing environmental risks is our Environmental
Policy(PDF 104 KB), which shows Carillions international
commitment to environmental stewardship. It is used by each
unit to set targets based on overarching 2020 strategy targets.
Progress is monitored monthly within our wider sustainability
governance framework.
Since 2012, we have used a web-based data management
system, Capture, to collect, manage and analyse sustainability
and safety data. We are reviewing the information on a
monthly basis and using it to pinpoint risks and tackle issues as
they arise. We raise internal awareness through our wider
employee engagement channels, as well as dedicated
environmental management training.
100%
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WASTE
WASTE NO MORE
PROTECTING THE
ENVIRONMENT
A changing
environment
Waste
Water
Biodiversity
GREENER RAILWAYS
Performance data
2,411,509
tonnes
(2013: 1,141,246)
Waste diverted
1 million
2,278,712
tonnes
(2013: 1,043,192)
95%
Carillion is
consistently and
constructively
responsive to the
Thameslink
programme
sustainability agenda
and is an active
participant in
sustainability
activities, initiatives
and forums. Theyve
developed several
best practice case
Waste no more
The new Police headquarters at Niagara, Canada
incorporated a basement secure parking area. The waste
materials were turned into a resource and reused on site.
Any spare was used locally, saving more than CA$1 million
(590,000).
On the Alberta Roads project, 400 tonnes of waste was
diverted from landfill by stockpiling and reusing the
aggregate, and lorry movements as well as carbon have all
been reduced.
In Viking, Alberta, a vehicle salvage initiative is saving
money and reducing waste. When one fleet vehicle is
retired, the unit is kept as a donor vehicle to supplement
the working fleet with parts and tyres. A single donor
vehicle can often be used to maintain four or five others,
saving up to CA$5,000 (3,300) in replacement parts per
vehicle.
studies of an
innovative nature,
including that of the
LED lights, which has
already been shared
with another part of
Network Rail bringing
wider benefit to the
business. Overall
they have a proactive
can-do approach to
environmental and
sustainability matters
that instils strong
confidence in their
ability to deliver
against our
sustainability
agenda.
ANNAMARIE
COMPTON,
Environment
Manager, Network
Rail
Sustainability
Initiative
Award
for Carillion Alawis War
On Waste which
reduced waste to landfill
by 55% over two years
Greener railways
When the team at Cricklewood Railway Sidings reused
12,400 tonnes of virgin material, they saved 113,000 and
diverted 99% of waste from landfill.
As part of the Thameslink programme at Cricklewood, a
train-stabling facility was designed to crush on-site ballast
throughout the project. The materials were reused in
accordance with Carillions Material Use Plan to provide
type 1 gravel and sand for use on the site.
This smart thinking avoided 650 return lorry journeys
totalling 13,000km, reduced transport CO2 emissions by 10
tonnes and minimised the heavy-load impact on the local
community.
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ENVIRONMENT
WATER
SAVING WATER, CARBON AND WASTE
PROTECTING THE
ENVIRONMENT
A changing
environment
Waste
Water
Biodiversity
Performance data
Pressure on water resources is growing. While 2014 was a tough year for
flooding in the UK, drought prevailed in many of our operating regions
such as the Middle East and North Africa region.
We have active Water Audits and Reduction Plans across our business units on top of measuring
our international usage. Innovation in water use reduction leads to project efficiencies and better
returns for clients. In MENA, where water is scarce and desalinisation costly, we have conducted
audits and installed waterless urinals. We also continue to use a curing compound for concrete
across building projects, which significantly reduces water use and a network of trained water
champions drive behaviour change.
Harvesting
rainwater
At Harvey Hadden, we
are constructing a
swimming pool to
Olympic standards. Once
the pool structure and
balancing tanks were
complete, the team
considered how they
could reduce the amount
of mains water that was
required to fill the pool
ready for testing.
A worker engagement
idea resulted in
harvesting rainwater into
the balancing tanks, then
pumping the collected
water into the main pool.
The team pumped
450m3 of water from
balancing tanks, which in
simple terms was the
equivalent of flushing
the toilet 75,000 times.
7,500 plastic
bottles
0%
MENA
78%
UK
22%
WATER CONSUMPTION
We are constantly
seeking new ways of
working with
materials, technology
and clients, despite
often very
challenging
circumstances; its
critical that we do
whatever we can to
reuse waste material
and to continue our
significant progress
in reducing water
use.
SHAUN CARTER,
Group Strategy
Director, Carillion Plc
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BIODIVERSITY
WILDLIFE ALONG A RAILWAY
PROTECTING THE
ENVIRONMENT
A changing
environment
Waste
Water
Biodiversity
Performance data
Preserving
biodiversity in
Canada
Twelve of our staff
cleared debris in the park
in Black Creek, Toronto.
Thirty bags of garbage
were collected within a
2km radius as part of the
Great Canadian
Shoreline Clean-up
programme.
Our Forces Base Borden
project supported the
Bear Creek Sanctuary
through donations of
building materials and
will be extending their
volunteering in 2015.
Bear Creek provides a
safe haven for unwanted,
abused and injured
animals.
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435,000
awarded to 72 habitat
projects through the
Natural Habitats Fund
since 2001
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PERFORMANCE DATA
WASTE PRODUCED AND DIVERTED FROM LANDFILL
SIGNIFICANT SPILLS
PROTECTING THE
ENVIRONMENT
A changing
environment
Waste
WATER CONSUMPTION
Water
Biodiversity
Performance data
2013
2014
894,714
1,056,519
2,306,665
98,344
77,507
87,878
Canada
6,652
7,220
16,966
TOTAL
999,710
1,141,246
2,411,509
UK
MENA
2013
2014
807,770 (90)
1,004,196 (95)
2,218,038 (96)
MENA
50,155 (51)
36,428 (47)
47,745 (55)
Canada
5,002 (75)
2,568 (36)
12,929 (76)
TOTAL
862,927 (86)
1,043,192 (91)
2,278,712 (95)
UK
Significant spills
2012
2013
2014
Number of spills
10
314
24
53
281
m3
2012
2013
2014
UK
168,056
187,658
131,447
MENA
544,393
424,421
462,278
Canada
5,120
2,368
2,431
TOTAL
717,569
614,447
596,156
This data includes water used on our construction sites as well as on Carillion estate-owned
properties where we have direct control and influence over our water use.
Our water KPI is for water used on our construction projects, normalised by contract turnover. We
have achieved a 28% reduction in 2014 against a 2012 baseline. We have increased water
consumption by 12% on the UK and Canadian estate-owned properties.