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Balfour Beatty - Sustainability User Guide

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1. Operational mobile plant fuel use e g generators excavators gritters cranes tampers etc Any emissions of fluorinated gases leakage losses of refrigerant gases from air conditioning and refrigeration equipment and emissions of SF6 to atmosphere caused directly by the operating business Scope 2 indirect emissions being released into the atmosphere associated with Balfour Beatty s consumption of purchased electricity heat steam and cooling These are indirect emissions that are a consequence of our organisation s activities i e purchased energy but which occur at sources we do not own or control Carbon Dioxide Equivalent or CO e is used to measure greenhouse gas emissions and express these in terms of CO based on their relative global warming potential GWP over 100 years Balfour Beatty uses Defra s CO e conversion factors that all provide international conversion rates A business case should capture the business justification for initiating an energy project It should provide a practical solution review other cost effective options quantify the energy and financial savings and calculate the return on investment Balfour Beatty uses the financial control approach to define its scope 1 and 2 emissions This means we capture emissions from operations that we are able to direct financially i e where we have the power to make investment decisions regarding the operations of our assets see Boundaries
2. Balfour Beatty clients and supply chain members are equal partners in achieving sustainability targets Balfour Beatty is recognised as the industry leader in managing and improving Its supply chain STRATEGIES Induct all tier one suppliers on the aims of the Roadmap and their role in achieving it Ensure all tier one supply chain partners have carried out their own self assessment against the Roadmap Create improvement plans with all tier one supply chain partners that address identified sustainability risks and opportunities Work across the supply chain to embed sustainability support the sharing of learning across the supply chain on sustainability Pls 2015MINIMUM 2015 EXPECTATIONS EXCELLENCE Percentage by value of 75 10096 tier one supply chain contracts where supplier self assessments have been completed Percentage by value of 50 100 tier one supply chain partners with improvement plans that address identified sustainability risks and opportunities Percentage by value of 25 90 Supplier audits conducted by operating business that make reference to sustainability Number of communication 1 6 pathways created for the sharing of sustainability best practice across the supply chain 2 8 SUPPLY CHAIN ENGAGEMENT THE USER GUIDE DEFINITIONS Tier 1 suppliers are classed as suppliers that are at the top of the supply chain supplying goods and services directly to Ba
3. Total number of short and medium term successors Evidence for audit Provide a record such as the relevant Organisation and People Review submission OPR of all identified short and medium term successors Keep records of all development plans for short and medium term successors 2 6 3 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Match or exceed the AGR standards for graduate retention rates at one and three years PI calculation l Number of retained graduates Percentage Total number of graduates that initially embarked on the graduate scheme Evidence for audit Keep records of graduate retention rates and calculate the average graduate retention rate for one year and three years Provide an analysis of the operating business s graduate retention rates and a comparison to industry benchmarks such as the AGR standard for graduate retention 59 SUSTAINABILITY a collective responsibility Identify people who have the potential to add value to the organisation and make a real impact on the business Develop run accelerated leadership programmes for future leaders and graduates Write development plans for short and medium term successors Carry out succession planning as part of the Group Organisation and People Review process and or the relevant development process for people with high potential Track retention levels of short term successors after one and three years Determine why
4. Where an operating business has been set up to deliver purely back office functions at an internal cost and is not client facing the external elements of the Roadmap do not normally apply In such cases the operating business would not be expected to deliver Roadmap Objectives 1 1 1 2 1 3 1 4 1 5 1 6 17 1 9 3 4 3 7 3 10 which are focused on delivering solutions primarily for clients However we do believe that operating businesses that deliver back office functions have a responsibility to help the external facing businesses achieve their Roadmap targets At all times all operating businesses should consider the spirit of the Roadmap in determining which of the Pls are applicable to the business THE USER GUIDE OPERATING BUSINESSES AND DIVISIONS Where several business streams have been grouped into one entity such as CSUK Balfour Beatty Communities and Parsons Brinckerhoff we will expect each business stream to meet the Roadmap targets individually and for any division e g CSUK to be audited externally The division would have to be responsible for ensuring that its business streams were progressing against the Roadmap and would in this case form the overall operating business ACQUISITIONS We appreciate that implementing the Roadmap in newly acquired businesses will be challenging particularly for smaller companies In recognition of this each newly acquired business is required to have developed an implementat
5. 3 1 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Scope 1 and 2 tonnes C0 e m revenue Pl calculation Calculate your operating business s CO emissions using Enablon and the Enablon guidance Obtain your operating business s annual turnover figure Calculate the percentage saving Current Scope 1 and 2 tonnes C0 e m revenue 2010 Baseline Scope 1 and 2 tonnes C0 e m revenue Percentage 1 Evidence for audit Provide up to date spreadsheets that list the total CO e emissions with a breakdown of the emission sources e g electricity kWh of a building and provide evidence of the source data such as invoices or meter readings It is important that there is a full audit trail The auditors may review the 2010 baseline data to ensure that the baseline data is reliable and that reductions have occurred It is up to the operating business which scope 1 and 2 emissions it reduces as long as it is able to achieve the minimum expectations in CO e reductions The reduction in GHG emissions relates to facilities sites plant and vehicles under our financial control Where energy consumption of project sites cannot be metered directly e g utilities projects using mobile generators then overall consumption data should be collected such as from invoice data The invoice data does not necessarily need to be broken down by each small site as the aim is to establish the overall carbon footprint and how thi
6. It does not include fleet vehicles as these would fall under scope 1 emissions nor taxi journeys or daily commutes to and from work for individuals It does include emissions from hired buses and minibuses used for dropping off gangs for projects where we do not pay for the fuel directly Although employee business travel may not be a significant source of scope 3 emissions we require operating businesses to capture this information as the data Is increasingly available and is directly linked to operating costs Furthermore stakeholder expectations are Increasingly moving towards these being quantified as standard Significant scope 3 emissions are defined as the top five largest sources of emissions The term where we have influence refers to our ability to influence scope 3 emissions For instance if a client requires the use of a particular type of cement we will not be in a position to change the specified materials and associated emissions Conversely where we are able to change consumption or use alternative materials we do have an influence 3 2 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Scope 3 tonnes C0 e m revenue PI calculation Current Scope 3 tonnes CO e m revenue 2013 Baseline Scope 3 tonnes CO e m revenue Percentage 1 Evidence for audit List of scope 3 sources and Enablon reporting data Measure the operating business s significant scope 3 emis
7. Canadian Standard s Association CSA National Standard for Sustainable Forest Management Sustainable Forestry Initiative SFI operating in the USA and Canada Malaysian Timber Certification Council MTCC Responsible sourcing schemes typically consider legal requirements together with a range of employment safety child labour community and environmental impacts Although some countries have a number of well recognised responsible sourcing schemes others do not Where no recognised responsible sourcing schemes exist for materials Balfour Beatty will adopt or develop appropriate sustainable procurement criteria for responsible sourcing and encourage our supply chain to adopt the same practice Depending on the operating business major materials can also encompass other major spends such as vehicles electronic components equipment labour and other goods and services It might procure BS 8903 formerly known as the Flexible Framework is a widely used self assessment tool which allows organisations to measure and monitor their progress on sustainable procurement over time The standard was designed so that it could be used by all organisations Verifying that the timber in a product is from a known licensed source involves checking that the timber originated from a forest management unit in which the harvesting entity had a legal right to harvest It requires the purchaser to a know the geographic source of t
8. Engage with operatives and staff to understand their common lifestyle challenges Work with the communications team to develop a healthy living communications plan Develop a programme for disseminating healthy lifestyle advice Run the programme Celebrate the achievements Monitor number of sick days on a monthly basis Review the results and compare these to sick day statistics for the current and previous years 45 6 SUSTAINABILITY momen AAA eile s a collective responsi bility 2 HEALTHY COMMUNITIES OUR PEOPLE VALUING EMPLOYEES AND THEIR CONTRIBUTION IN DELIVERING SUSTAINABILITY 2020 STRATEGIES Pls 2015MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 24 Balfour Beatty is Implement the Group and Percentage of senior 20 25 VALUING recognised internally and divisional action planson leadership positions externally forthe value diversity and inclusion held by women DIVERSITY it has obtained from its progressive diversity Percentage of workforce 30 40 policies that is female Percentage of divisional 70 100 diversity and inclusion targets and actions achieved 46 2 4 VALUING DIVERSITY THE USER GUIDE DEFINITIONS At Balfour Beatty we support diversity in its broadest sense including diversity of race ethnic origin age disability sexual orientation and gender In order to advance the diversity agenda the Group has compiled a three year action plan which covers a broad range of diversity re
9. PI Average FTEs paid leave taken for work on activities that benefit the wider community PI calculation Number days of paid leave taken for work on activities that benefit the wider community Average Total number employees Evidence for audit Record the actual number of employees or equivalents who take paid leave in the year and the amount of time spent volunteering One days paid leave should equate to 7 5 hours work on a project that benefits the wider community This could comprise two half day sessions 67 SUSTAINABILITY Pl Value of in kind donations to support the wider community Pl calculation level of in kind funding or equivalent local currency Evidence for audit Provide written documentation referring to the level of in kind funding that has been set by the operating business for the year e g calculate the number of working days in the year in the UK itis 365 days 104 days for weekends 25 days holidays 8 bank holidays 228 days Divide the annual salary by the number of working days to obtain a day rate and divide this by 7 5 hours and multiply by 1 4 to obtain the hourly rate cost to the business Operating businesses should use their own banding for different grades to simplify the calculations e g Director senior Manager Manager senior Staff General Staff Operative Capture and measure the level of in kind funding provided 68 A
10. Reducing waste Minimising waste over the life cycle of assets Minimising waste by using recycled materials Reducing direct water use Reducing indirect water use Managing the materials life cycle Sourcing responsibly Respectthe natural environment by protecting and enhancing ecological resources 80 84 88 92 94 96 100 104 108 THE USER GUIDE THE PURPOSE This User Guide has been developed to help operating businesses generate their individual action plans for sustainability and measure their performance ROADMAP OBJECTIVES Sections 1 3 of this User Guide are aligned to the numbering and sections of the Roadmap for ease of reference The User Guide provides a commentary to each objective under the following headings The User Guide should be read in conjunction with the Roadmap that provides an introduction and overview to Balfour Beatty s sustainability strategy Definitions Calculation Methodology and Evidence Requirements This User Guide is not a technical how to document It is a companion to the Roadmap designed to help operating businesses interpret the Roadmap objectives strategies and associated performance indicators Pls whilst leaving each business freedom to adopt its own approach for implementing the 2020 Vision Good practice DEFINITIONS The definitions clarify key terms used in the strategies and The Pls are numeric measures introduced by Group for Pls of the
11. Roadmap Objectives to avoid any ambiguity the operating businesses to track progress against the strategies The latter lay out how the individual Roadmap Objectives will be met HOW TO USE THIS GUIDE We recognise that this User Guide Is the first step to achieving our 2015 targets and there will be future iterations It is intended to be a living document to share knowledge and best practice as we Improve processes and standards over time We appreciate any feedback you can provide as you become more familiar with putting its principles into practice In the first instance such feedback should be provided to the Group Sustainability Manager see page 7 for contact details Where an operating business Is unable to apply a Pl a similar PI that captures the essence of the appropriate strategy must be applied by agreement with Balfour Beatty Group Sustainability team as the uncontrolled use of an alternative Pl may impact on our ability to qualify for international indices such as the Carbon Disclosure Project Dow Jones Sustainability Index or Business in the Community Corporate Responsibility Index TABLE 1 VERSION HISTORY Amendments Date Version Authors 1 Bekir Andrews Original 17 9 12 6 SUSTAINABILITY CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS This section outlines the calculations and evidence requirements that we recommend the operating businesses follow to maintain consistency with other opera
12. and self assessments that have been conducted Review progress against the Roadmap and sustainability Pls at Board level on a quarterly basis as a minimum Share the implementation plan resources such as templates policies procedures case studies innovation and lessons learnt with other operating businesses 33 SUSTAINABILITY 2 HEALTHY COMMUNITIES OUR PEOPLE VALUING EMPLOYEES AND THEIR CONTRIBUTION IN DELIVERING SUSTAINABILITY 2020 STRATEGIES Pls 2015 MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 2 1 Across Balfour Beatty Ensure all Roadmap Percentage of Roadmap 100 100 OWNING THE there is clear objectives have a board KPIs for which board accountability and director accountablefor director accountability SUSTAINABILITY responsibility for their delivery has been formally AGENDA delivering the Roadmap established objectives Include individual Percentage of appraisals 25 80 sustainability related that include individual objectives in appraisals sustainability related for staff objectives 36 THE USER GUIDE 2 1 OWNING THE SUSTAINABILITY AGENDA DEFINITIONS The term board director refers to operating business Board directors including the Managing Director Individual sustainability related objectives are defined as outcomes that staff are expected to achieve and against which performance will be measured These
13. carbon or in use emissions REDUCING SCOPE 3 it has an influence for the business and GREENHOUSE GAS develop an action plan EMISSIONS for reduction Balfour Beatty achieves a Measure emissions from 50 reduction in business business travel and travel greenhouse gas reduce by more efficient emissions against a modes of travel and 2013 baseline alternative technologies 80 Pls 2015 MINIMUM 2015 EXPECTATIONS EXCELLENCE scope 3 tonnes CO e scope 3 emissions 10 reduction m revenue where we quantified and action have an influence against plan for reduction a 2013 baseline prepared Business travel scope3 10 reduction 20 reduction tonnes CO e m revenue against a 2013 baseline THE USER GUIDE 3 2 IDENTIFYING AND REDUCING SCOPE 3 GREENHOUSE GAS EMISSIONS DEFINITIONS Under the GHG protocol scope 3 indirect emissions cover sources such as Extraction and purchase of construction materials embodied energy Employee business travel using non company owned transport e g trains and flights Energy consumed in the operational phase of assets e g during building occupation over its expected design lifetime Use of other services supply chain Waste disposal e g biodegradable waste in landfills releases methane CH4 a greenhouse gas Business travel in this context refers to flights train ferry and coach journeys as well as mileage that is claimed by staff for business travel
14. e g through in house medical staff Confidential blood tests Advice on healthy living dealing with stress nutrition staying fit smoking etc Advice on threats posed by pandemics e g swine flu If an operating business were to run two distinct healthy lifestyle programmes at different times of the year these would count as a total of two campaigns It is important to note that operating businesses are expected to have a number of initiatives for each Campaign in place Simply providing fruit or blood tests would not be sufficient Sick days are defined as time off from work paid or unpaid on account of an employee s temporary inability to perform duties because of sickness or disability Sick days do not include maternity leave but do include days lost to injuries FTE refers to full time employees or equivalent i e staff and operatives It is based on the number of man hours worked 2 3 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of healthy lifestyle campaigns run per annum PI calculation Number of healthy lifestyle campaigns annum Evidence for audit Details of healthy lifestyle campaigns on an annual basis 2 3 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Average number of sick days per FTE per year PI calculation Total number of sick days Average Total number of FTE Evidence for audit Sick day and staff records GOOD PRACTICE
15. leading research institutions and Pls 2015 MINIMUM 2015 EXPECTATIONS EXCELLENCE Number of industry 1 per operating business 2 per operating business leading or technical bodies on which Balfour Beatty is represented by members of the operating business Number of formal alliances that exist for the purpose of bringing more sustainable solutions to market 1 per operating business 3 per operating business 1 1 INFLUENCING THE MARKET THE USER GUIDE DEFINITIONS Industry leading or technical bodies are defined as academic or membership organisations that further our collective knowledge of sustainability through the sharing of knowledge Typically such organisations will be unbiased and but have the involvement and or influence of on our clients peers stakeholders or the public for their contributions to sustainability Typically to be active on an industry leading or technical body an operating business would need to be involved in at least two activities such as Developing case studies Speaking at hosting or organising events Feeding back on draft legislation Participating in consultations Developing new tools or standards Participating in publications Writing articles A formal alliance is a contractual agreement or a terms of reference between a Balfour Beatty owned operating business and third party to bring a sustainability solution to market Such arrangements are
16. leavers are leaving Focus on recruiting and developing the best graduates Consider working with universities to run internships and attract talent early Track retention levels of graduates after one and three years Determine why graduates leave the organisation through exit interviews 56 THE USER GUIDE 6 SUSTAINABILITY a collective responsibility 2 HEALTHY COMMUNITIES OUR PEOPLE VALUING EMPLOYEES AND THEIR CONTRIBUTION IN DELIVERING SUSTAINABILITY 2020 STRATEGIES Pls 2015 MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 27 Balfour Beatty is known Employees confirm they Percentage of employees 70 80 INCREASE as the employer of choice are satisfied in the who confirm that they are EMPLOYEE by its employees company satisfied in employee Surveys SATISFACTION AND Employees are advocates Percentage of employees 70 80 ENGAGEMENT for the Group as an who are advocates for employer the Group as an employer in employee surveys 58 THE USER GUIDE 2 7 INCREASE EMPLOYEE SATISFACTION AND ENGAGEMENT DEFINITIONS GOOD PRACTICE Employee satisfaction levels are based on the feedback Keep employees informed on company developments provided by employees in regular employee surveys results and achievements through regular newsletters and briefings Advocates for the Group can be defined as employees that would recommend Balfour Beatty as an employer Conduct an anonymous employee survey on a regular to thei
17. logistics building information modelling modular assembly construction methods reuse initiatives and resource efficiency waste minimisation practices In such cases better design can lead to waste never being created This may lead to some operating businesses performing better on 3 3 1 than on 3 3 2 Percentage reduction in tonnes of waste to landfill refers to waste that has been diverted from landfill and instead sent for recycling composting anaerobic digestion aerobic digestion and energy from waste solutions where the heat Is used to create electricity and or heat premises It does not cover conventional incineration solutions i e those without energy recovery The waste management hierarchy should always be followed to maximise the use of raw materials Better design can often result in less waste being generated in the first place and significantly reduced cost Although this might result in lower recycling figures it will also reduce the total amount of waste generated on Enablon In developing countries where the recycling infrastructure Is not well developed operating businesses must strive to get close to the PI targets and document their efforts to recycle materials 3 3 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Reduction in tonnes of total waste generated Em revenue against a 2010 baseline PI calculation Current tonnes of total waste generated m revenue 2010 Baseline ton
18. may be set on a six monthly or annual basis with other objectives and must be reviewed as part of the performance and review process Sustainability objectives should be specific to the individual job roles and the Roadmap For instance an objective for a supply chain category manager may be to Work with 10 key suppliers to agree and set Pls to improve their sustainability performance Sustainability objectives may include broad objectives including safety and people development that relate to Roadmap Objectives for healthy communities and environmental limits Staff are paid employees who provide management supervision or support to operatives Although in many cases Staff are office based there are exceptions such as project managers and superintendents Typical functions include procurement supply chain finance HR communications IT Health amp Safety quality Group audit bid development project managers estimators design contract managers innovation and sustainability Operatives are paid employees who directly provide services or products for the operating business and do not supervise others work Typically these include functions such as builders technicians plumbers painters electricians carpenters cleaners welders and assembly line workers Supervisors charge hands or managers direct operative employees in their work and are classed as staff 2 1 1 CALCULATION METHODOLOGY AND E
19. number of apprenticeship schemes offered as part of the project The purpose of this Roadmap Objective Is that sustainability performance is managed and discussed at Board level Operating businesses have a choice on how they present general progress on all Roadmap Objectives Not all Roadmap areas have to be covered quarterly Operating businesses may also want to report on aggregate sustainability Pls for individual projects such as the scope 1 and 2 emissions number of local staff employed etc 1 10 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Board reports incorporating sustainability Pls PI calculation Number of quarterly Board reports that incorporate sustainability Pls Percentage 96 Total number of Board reports Evidence for audit Provide examples of Board reports and minutes confirming the nature of the resulting discussion that include sustainability Pls from across the business Project sustainability Pls may summarise a number of Roadmap Pls GOOD PRACTICE Speak to the sustainability leads within the functions Collate progress from the Board directors on their functions asking them to provide an update on the implementation plan for the individual Roadmap Objectives they are responsible for The implementation plan should include actions responsibilities completion dates and progress status Consider using a RAG Red Amber Green progress report as in the previous Roadmap reviews
20. of supplier audits that have been completed and which make reference to sustainability This indicator is applicable to the suppliers we audit Pl Number of communication pathways for the sharing of sustainability PI calculation Number of pathways created Evidence for audit Keep records of the number of pathways created for sharing sustainability best practice across the supply chain 62 Hold regular supplier supply chain workshops and one to one meetings with tier one suppliers Liaise with Tier 1 suppliers to ensure that supplier self assessments have been carried out as part of the contract negotiations Review supplier self assessments as part of the supplier meetings that are held Work with Tier 1 suppliers to develop improvement plans These should focus on the key sustainability risks and opportunities linked to the contract e g supplying more fuel efficient plant as part of a plant hire contract or increasing pulverised fuel ash content of cement The improvement plan should be material to the contract e g the fact that a granite supplier uses recycled paper has little bearing on their overall sustainability performance we would be far more interested if the mine were complying with international labour laws and taking proactive steps to improve safety and working conditions and minimise pollution Ensure plans are reviewed regularly and are challenging Identify suppliers that pose the greatest risk or where
21. one such market in new sustainable performance and life sustainability enables such markets to per annum MARKETS WHERE industries cycle knowledge performance and be identified SUSTAINABILITY are differentiators lifecycle knowledge IS A DRIVER OF are differentiators GROWTH THE USER GUIDE 1 2 WORKING IN MARKETS WHERE SUSTAINABILITY IS ADRIVER OF GROWTH DEFINITIONS New sustainable industries are markets that benefit society economy and the environment Typically they include the following Renewables Energy efficient refurbishment retrofits Energy management Carbon zero infrastructure Community Interest Companies Intermediate Labour Market programmes Sustainable building materials Waste management Water monitoring and efficiency Sustainability performance in this context refers to sustainability outcomes that we are able to measure Lifecycle knowledge is defined as the ability to understand and improve the sustainability impact of infrastructure buildings and assets over their whole life through to disposal This also includes the maintenance running and disposal costs Number of entries is defined as the number of projects orders won New markets refers to New sustainable industries that the operating business has not been previously active in By default this also includes new geographies and acquisitions where we are entering new sustainable
22. there are good opportunities to improve sustainability to conduct supplier audits Ensure that sustainability performance criteria are considered as part of the audit and recorded Facilitate the sharing of knowledge and good practice across the supply chain by setting up extranets running workshops holding meetings etc THE USER GUIDE E 6 SUSTAINABILITY a collective responsibility 2 HEALTHY COMMUNITIES SUPPLY CHAIN PARTNERING WITH OUR SUPPLY CHAIN TO DELIVER SUSTAINABLE SOLUTIONS 2020 STRATEGIES Pls 2015 MINIMUM VISION EXPECTATIONS 29 Balfour Beatty leads the Monitor invoice payments Percentage of invoices 95 CREATING market in paying Its and report variances to paid within 30 days of AN EQUITABLE supply chain promptly business Finance Director due date MARKET Balfour Beatty ensures Promote new supply Percentage of suppliers 25 supply chain chain opportunities to by value sourced locally opportunities are made local suppliers and report where locally available to local and local supply chain spend is defined by the client national suppliers alike to clients 64 2015 EXCELLENCE 10096 00 THE USER GUIDE 2 9 CREATING AN EQUITABLE MARKET DEFINITIONS Supply chain in this context refers to suppliers subcontractors and consultants In the case of subcontractors the point of certification approval will be used for invoicing purposes i e invoices that have been issued for wo
23. to engage stakeholders such as through newsletters townhall meetings information stands project websites Facebook pages project Twitter feeds Using local suppliers and subcontractors to support the delivery of the project Advertising vacancies locally Engaging with schools colleges universities and professional bodies institutes Supporting the development of local skills and training through the project Keeping the public up to date on the progress of the project Keeping the disruption to local businesses homes and organisations to an absolute minimum How the community could benefit from the project or local initiatives Raising safety or sustainability awareness Providing contact details of a local liaison officer or site manager so that can be easily contacted Providing appropriate opportunities for feedback Regularly review progress against the community engagement plan to ensure that it is being implemented Keep clients informed on the progress that is being made and invite them to participate in the community engagement plan 73 A SUSTAINABILITY a collective responsibility THE USER GUIDE 3 ENVIRONMENTAL LIMITS SUSTAINABLE DEVELOPMENT MEANS MAKING BETTER USE OF THE PLANET S FINITE RESOURCES BY LEADING ON ENVIRONMENTAL ISSUES SUCH AS ENERGY AND WASTE WE ARE REDUCING OUR COSTS AND HELPING OUR CUSTOMERS REDUCE THEIR OWN IMPACTS 6 SUSTAINABILITY 3 ENVIRONMENTAL
24. would be most relevant to the operating business s clients Consider how the operating business could offer support and approach the most relevant bodies Participate in the activities that will support the relevant bodies Make stakeholders aware of the operating business s involvement Identify formal alliance partners that the operating business may want to approach for developing new sustainable solutions These alliances can be formed regionally nationally or internationally Develop terms of reference and non disclosure agreements to discuss initial ideas Agree on a contract with the alliance partner to protect intellectual property to recover design and development costs and to address profit sharing and licensing agreements Develop the solution and run trials Improve the product and bring it to market Make clients aware of the solution Capture the benefits of the sustainable solution nen ane Produce press releases to increase awareness of the sustainability solution we are able to offer 6 SUSTAINABILITY 1 PROFITABLE MARKETS GROWING OUR MARKETS HELPING TO CREATE MARKETS FOR SUSTAINABILITY PRODUCTS AND SERVICES 2020 STRATEGIES Pls 2015 MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 1 2 Balfour Beatty is an Identify markets where Number of entries into Develop a business Market entry achieved in WORKING IN active participant sustainability new markets where planning process that at least
25. 2 8 and staff to reduce the amount of waste that is generated from our operations by at least 10 by applying resource efficiency waste minimisation techniques ufo lame wea LIE T LA E Suc m T Through the use of the waste management hierarchy identify waste materials that can be reused or recycled to achieve a reduction of 75 of waste to landfill normalised against revenue E Lo mmo amd aaa E amp Make arrangements for all sites for the segregation of waste materials such as plastics paper cardboard plasterboard rubble wood glass metals organic etc from general waste for reuse or recycling Recycling arrangements can be provided off site through materials sorting and recovery facilities for mixed waste streams where space does not allow for on site segregation ai i x 86 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS WASTE 2020 STRATEGIES Pls 2015MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 3 4 Balfour Beatty maximises Processes developed and Percentage of projects by 25 50 MINIMISING the reuse recycling and adopted to maximise value having a plan for WASTE recovery of materials material reuse and material reuse across all stages ofthe recovery at every stage and recovery at the end OVER THE project life cycle from of the life cycle from of the project s life LIFE CYCLE feasibility design feasibility and design to OF ASSETS construction operationto co
26. 4 Pls 2015 MINIMUM 2015 EXPECTATIONS EXCELLENCE Percentage of volume of 100 100 direct timber and timber product spend from recognised responsible sourcing schemes Percentage of volume of 50 100 indirect timber and but see User Guide timber product supply chain spend from recognised responsible sourcing schemes Percentage of value of 50 60 major materials directly procured from recognised responsible sourcing or equivalent schemes Percentage of value of 25906 50 major materials procured from recognised responsible sourcing or equivalent schemes by supply chain on our behalf 3 9 SOURCING RESPONSIBLY THE USER GUIDE DEFINITIONS Timber and timber products includes timber used in construction for hoardings and formwork furniture fittings in our offices and packaging used for our goods at our manufacturing facilities This covers products procured directly or indirectly by the supply chain on behalf of Balfour Beatty It also covers paper products that we procure directly but not the paper products that our suppliers procure For timber and timber products Balfour Beatty recognises the following responsible timber sourcing schemes where suppliers subcontractors are able to provide evidence of both the forest management certification and chain of custody certificates amp Forest Stewardship Council FSC Programme for the Endorsement of Forest Certification PEFC
27. ED QUESTIONS We will post answers to frequently asked questions on the knowledge sharing and collaboration portal POINT OF CONTACT For specific queries please contact the Group Sustainability Manager Bekir Andrews Balfour Beatty plc Group Head Office 130 Wilton Road London SW1V 1LQ Tel 0044 0 7772 631 409 E sustainability balfourbeatty com SUSTAINABILITY a collective responsibility THE USER GUIDE 1 PROFITABLE MARKETS OUR APPROACH TO SUSTAINABILITY IS ALIGNED WITH OUR STRATEGY OF BUSINESS GROWTH AS WE FOCUS ON GROWING MARKETS IN THE LOW CARBON ECONOMY WE CONTINUE TO WORK WITH OUR EXISTING CUSTOMER BASE TO HELP THEM ACHIEVE THEIR SUSTAINABILITY GOALS CLOSE COLLABORATION WITH OUR SUPPLY CHAIN AND THE CREATION OF UNIQUE INDUSTRY PARTNERSHIPS IS HELPING US TO INFLUENCE THE MARKET TO ACHIEVE MORE SUSTAINABLE OUTCOMES SUSTAINABILITY 1 PROFITABLE MARKETS GROWING OUR MARKETS HELPING TO CREATE MARKETS FOR SUSTAINABILITY PRODUCTS AND SERVICES 2020 STRATEGIES VISION 1 1 Authorities and regulators Active representation on INFLUENCING consult Balfour Beatty industry leading and THE MARKET ahead of other technical bodies organisations in respect of significant policy decisions on infrastructure development Balfour Beatty collaborates with research institutions and industrial partners other organisations to bring more sustainable solutions to market Collaborate with
28. EQUIREMENTS Pl Number of value generating case studies PI calculation Number of value generating case studies Evidence for audit Collate case studies and demonstrate that these have been shared on the knowledge sharing portal 1 8 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Percentage of projects by number where we seek regular feedback using a CRM tool PI calculation Number of projects where we seek regular feedback using a CRM tool Percentage Total number of projects Evidence for audit Produce a master list of all projects and collate information on the number of projects where a client relationship tool has been deployed Calculate the percentage of projects by number that have a CRM tool in place GOOD PRACTICE Identify suitable case studies from across the operating business Produce case studies and upload these onto the Balfour Beatty knowledge sharing and collaboration portal Share case studies with other operating businesses Promote examples of best practice internally within Balfour Beatty Deploy a CRM tool within the operating business Settargets for client satisfaction levels Develop an action plan for areas where satisfaction levels are poor or indifferent Engage personnel from senior management to project teams and include stakeholder and supply chain partners in the CRM process to continually imp
29. G umo 2013 2015 USER GUIDE TO THE BALFOUR BEATTY SUSTAINABILITY ROADMAP PROFITABLE MARKETS Balfour Beatty f SUSTAINABILITY TABLE OF CONTENTS Section Roadmap areas 1 PROFITABLE MARKETS 2 HEALTHY COMMUNITIES 3 ENVIRONMENTAL LIMITS GROWING MARKETS CLIENT ENGAGEMENT EFFICIENT DELIVERY OUR PEOPLE SUPPLY CHAIN COMMUNITIES WE SERVE CLIMATE CHANGE WASTE WATER MATERIALS ECOLOGY Roadmap objectives 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 1 10 2 1 2 2 2 3 2 4 2 5 2 6 2 2 0 2 9 2 10 2 11 2 12 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 3 10 Influencing the market Working in markets where sustainability is a driver of growth Marketing and PR Working for the sustainability opinion leaders Influencing clients Assessing risks and opportunities Meeting their goals Delivering better value A consistent approach to the market Governance Owning the sustainability agenda Keeping people safe Promoting healthier lifestyles Valuing diversity Developing the skills and creativity of our people Attract and retain great people Increase employee satisfaction and engagement Supply chain engagement Creating an equitable market Behaving responsibly Employing locally and investing in skills Engaging with communities Reducing scope 1 and 2 greenhouse gas emissions Identifying and reducing scope 3 greenhouse gas emissions
30. LIMITS CLIMATE CHANGE 2020 STRATEGIES Pls 2015 MINIMUM VISION EXPECTATIONS 3 1 Balfour Beatty achieves a Implement efficiency scope 1 and 2 tonnes 20 reduction REDUCING 50 reduction indirect measures and alternative CO e m revenue and indirect greenhouse technologies Share against a 2010 baseline SCOPE 1 AND 2 gas emissions against a successful innovations GREENHOUSE 2010 baseline across facilities in our estate and projects under our control across the Group GAS EMISSIONS No of business cases developed within the operating business to reduce scope 1 or scope 2 emissions 2 per annum 76 2015 EXCELLENCE 30 reduction 10 per annum THE USER GUIDE 3 1 REDUCING SCOPE 1 AND 2 GREENHOUSE GAS EMISSIONS DEFINITIONS As outlined in the Enablon Guidance Balfour Beatty has aligned the measurement and reporting of its greenhouse gas emissions to the globally recognised GHG protocol Data should be provided for Scope 1 direct emissions from activities owned or controlled by Balfour Beatty that release emissions straight into the atmosphere They are direct emissions from sources or fuels that we purchase Examples of scope 1 emissions Energy used in furnaces and boilers such as natural gas LPG and fuel oil Company owned leased vehicle fleet diesel and petrol consumed by company cars HGVs and PCVs etc Use of bottled gas butane amp propane for vehicles and space heating
31. LIMITS MATERIALS 2020 VISION 3 8 Balfour Beatty uses low environmental impact materials as defined over the product life cycle as the default option for MANAGING THE MATERIALS LIFE CYCLE Its projects Balfour Beatty collaborates with its supply chain to lead in the development and trial of low impact materials 100 STRATEGIES Collaborate within the business to create a database of low environmental impact materials products used in projects and share across the Group Quantify the impact reduction of using lower environment impact materials Collaborate with the supply chain to research and develop new lower environmental impact materials products that deliver the greatest reduction in overall impacts in our projects Pls 2015 MINIMUM EXPECTATIONS spend on low 10 environmental impact materials as a proportion of total materials spend Number of trials 1 conducted of low impact materials per annum 2015 EXCELLENCE 25 THE USER GUIDE 3 8 MANAGING THE MATERIALS LIFE CYCLE DEFINITIONS Low environmental impact materials are defined as materials that have a lower environmental impact than those currently used by the operating business or ones that carry third party environmental certifications such as materials certified to BES 6001 the Nordic Swan Blue Angel the EU Ecolabel EU Energy Water label Energy Star the EU GPP criteria Euro 5 or Euro 6 engine standar
32. OUR PEOPLE DEFINITIONS The employee survey consists of core questions provided by Group HR and additional questions that the operating businesses may want to ask in order to provide flexibility to tailor the questions to their needs and obtain maximum benefit from the surveys However all surveys must include some core questions on opportunities for personal development and employee satisfaction see 2 7 Leadership development programmes are training programmes that are designed to develop leadership skills Development programmes may include training courses and other suitable approaches for management Although we encourage Balfour Beatty operating companies to enter external awards to promote our achievements awards in this context means internal award schemes to promote and reward positive behaviours on sustainable innovation Group awards such as our international Chairman s Graduate Prize for Innovation do not count towards this target The term sustainable innovation can include new products client engagement tools efficiency measures and improved social performance Other programmes may include other types of award such as a pay rise a promotion a commendation a speech or an internal or external announcement that are part of a framework for rewarding success 2 5 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Complete employee survey PI calculation Number o
33. RACTICE Track the payments of invoices and report variances highlighting items that have not been paid Ensure that the requisition process is followed so that invoices are always paid on time as many small businesses are dependent on cash flow in order to pay the wages of their staff Identify reasons for non payment Advertise supply chain opportunities locally Evaluate the merits of using local suppliers and subcontractors when awarding contracts and the impact this might have on the local community 65 SUSTAINABILITY 2 HEALTHY COMMUNITIES COMMUNITIES WE SERVE IMPROVING THE QUALITY OF LIFE FOR INDIVIDUALS AND COMMUNITIES 2020 STRATEGIES Pls 2015 MINIMUM VISION EXPECTATIONS 2 10 The majority of Balfour Our employees participate Average FTEs paid 1 Beatty s employees in local activities outside leave to work on participate in an activity work that benefits the activities that benefit that benefits the wider wider community the wider community community on an annual basis BEHAVING RESPONSIBLY Operating businesses Value of in kind oet annually by the provide in kind donations to operating business donations to support support the wider the wider community community 66 2015 EXCELLENCE 2 set annually by the operating business 2 10 BEHAVING RESPONSIBLY THE USER GUIDE DEFINITIONS Paid leave refers to paid volunteering time provided to employees to work on pr
34. TICE Monitor the quantity in tonnes of all timber timber products on a quarterly basis Where we specify the timber all timber and timber products must be sourced from FSC PEFC CSA SFI and MTC certified schemes Work with suppliers to ensures that all packaging materials such as cabling drums are from FSC PEFC CSA SFI and MTC certified schemes Where timber timber products are purchased indirectly at least 50 by value must be sourced from FSC PEFC CSA SFI and MTC certified schemes Where we do not specify the timber all timber and timber products must originate from legal forest management schemes In instances where we do not control the specification of such materials we should use our influence to encourage the client to procure materials from such schemes Monitor monetary value of concrete ready mixed and pre cast steel and aggregates plus other materials deemed significant by the operating business on a quarterly basis across all projects Monitor the value of materials directly procured from recognised responsible sourcing or equivalent schemes Monitor the value of recognised responsibly sourced materials or equivalent schemes procured through the operating business s supply chain Implement BS 8903 within your operating business Sources of further information World Wildlife Foundation http wwf panda org Central Point of Expertise on Timber http www cpet org uk THE
35. TY 1 PROFITABLE MARKETS CLIENT ENGAGEMENT WORKING WITH CLIENTS TO DELIVER THEIR GOALS 2020 VISION 1 7 Balfour Beatty works in MEETING partnership with its THEIR GOALS clients to help them align their sustainability goals to stakeholder expectations and environmental limits 26 STRATEGIES Apply a protocol to all projects to facilitate early involvement of stakeholders in confirming sustainability goals Collaborate with our clients and other stakeholders to achieve their goals through more sustainable solutions Pls 2015 MINIMUM EXPECTATIONS Percentage of projects by 50 number where we have formally confirmed the sustainability objectives with the client 2015 EXCELLENCE 100 1 7 MEETING THEIR GOALS THE USER GUIDE DEFINITIONS Projects are defined by the number of contracts For instance If an operating business were employed to maintain 10 buildings as part of a facilities management contract for one client this would count as one project Similarly if a rail business was installing a catenary system as part of a contract upgrade to a railway line and then won a contract for an extension on a neighbouring line this would be classed as a separate project to the original catenary system Formally confirmed sustainability objectives are defined as contractual clauses variations minuted actions or written correspondence for which the management team on the proj
36. USER GUIDE 107 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS ECOLOGY 2020 STRATEGIES VISION 3 10 Balfour Beatty designs Assess the effectiveness RESPECT THE constructs and maintains of our ecological NATURAL Its projects and own protection measures estate to enhance the ecology of the local environment delivering a net ecological gain on project sites through post completion monitoring and lessons learnt reviews Identify innovations and share knowledge within and outside the company ENVIRONMENT BY PROTECTING AND ENHANCING ECOLOGICAL RESOURCES Understand the ecological context of our projects to align our ecology enhancement measures with local and regional conservation objectives Where loss of ecology is unavoidable deliver offsetting in collaboration with conservation partners 108 Pls 2015 MINIMUM EXPECTATIONS Percentage of project 10 sites with ecological enhancement delivered No of ecology offsetting 25 projects delivered as a proportion of projects where on site ecology loss has been unavoidable 2015 EXCELLENCE 00 00 THE USER GUIDE 3 10 RESPECT THE NATURAL ENVIRONMENT BY PROTECTING AND ENHANCING ECOLOGICAL RESOURCES DEFINITIONS Ecological enhancements are defined as lasting improvements to flora and fauna that increase biodiversity and are often determined nationally Lasting in this context means that they are designed to survive for ov
37. VIDENCE REQUIREMENTS Pl Roadmap Pls for which board directors accountability has been formally established PI calculation Number of Roadmap Pls for which Board directors accountability has been formally established Percentage Total number Roadmap Pls Evidence for audit Produce an action plan identifying the actions required to achieve the 32 Roadmap Objectives with the action owners target dates and the accountable Board director We expect that the 32 Roadmap elements are divided up between the board directors and that the action plan makes specific reference to the individual directors 37 7 SUSTAIN Te ACHhHNHC ITV OLIVO I voDull SIDHITY ABILITY 2 1 OWNING THE SUSTAINABILITY AGENDA 2 1 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Appraisals that include individual sustainability related objectives PI calculation Number of appraisals that include individual sustainability related objectives Percentage 9o Total number of appraisals that include individual sustainability related objectives Evidence for audit Provide copies of staff appraisals demonstrating that sustainability objectives have been set Appraisals have to be available to auditors if required Auditors will generally want to review a cross section of staff objectives demonstrating that senior and middle managers as well general staff have sustainability objectives that are relevantto the
38. Value of major materials with recycled content Percentage 96 Total value of all major materials Evidence for audit Run a report on the key areas of spend for major materials illustrating the value of recycled content materials that have been procured Provide written evidence on how the recycled content of the materials were determined These should be provided by suppliers wherever possible Where this information Is unavailable we suggest using national averages In such cases always provide the source of the information summarise the value of major materials with recycled content against overall spend on materials Use procurement data to provide a breakdown by value of the key materials purchased by the operating business where we control the specification GOOD PRACTICE Identify the major materials that are purchased to construct and maintain buildings and infrastructure by value and identify and implement opportunities to replace 3596 with a recycled material or one that includes recycled content The intent here is to focus on major materials used by the operating business Review opportunities on a project by project basis Sometimes encouraging suppliers to provide high recycled content can have a negative overall effect as It will drive extra manufacturing processes and transportation miles which will have a greater net negative environmental impact than doing nothing Advise clients on the most sustainabl
39. acements for students running supporting training schemes and employment schemes Even though certain jobs may require staff to be flexible in terms of their working location they can still be advertised locally as most roles will be linked to regional hub office or a key project Local networks and media in this context may refer to local job centres employment opportunities at community days external meetings graduate presentations adverts in newspapers newsletters and websites It is not necessary that all of these communication streams are utilised 211 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl New vacancies for jobs that are advertised through local networks and media PI calculation Number of new vacancies advertised locall Percentage 96 locally and nationally Vacancies that are advertised both locally and nationally should still be counted as vacancies advertised locally as locals have the opportunity to apply for roles Evidence for audit Provide a breakdown of new roles that have been advertised locally against the total number of vacancies that have been advertised Total number of vacancies advertised GOOD PRACTICE Establish what you would consider as local by speaking to the client and other stakeholders Have a clearly defined process in place to optimise the use of the local labour force and local suppliers where these are available and where it is appropriat
40. address the specific issues identified in a bid These must include solutions that are over and above those provided by the core sustainability offering 1 9 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Bids incorporating core sustainability offering PI calculation Number of bids incorporating core sustainability offering Percentage Total number of bids Evidence for audit Produce a master list of all bids and collate information on the number of projects with a core sustainability offering Calculate the percentage of projects by number that have a sustainability offering Keep a register of bids including a core sustainability offering 1 9 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Bids incorporating added value sustainability offering PI calculation Number of bids incorporating added value sustainability offering Percentage Total number of bids Evidence for audit Produce a master list of all projects and collate information on the number of projects with an added value sustainability offering Calculate the percentage of bids by number that have an added value sustainability offering Keep a register of bids including and enhanced sustainability offering GOOD PRACTICE Develop clear marketing and promotional material to aid communication on sustainability with clients Develop a series of case studies including the development of a bid library for future
41. alfour Beatty embeds Employee and supply Percentage reduction in 10 REDUCING zero waste thinking in all chain engagement tonnes of total waste WASTE aspects of its operations monthly monitoring and generated m revenue and supply chain implementation of against a 2010 baseline innovative solutions Balfour Beatty generates and practices to design Percentage reduction in 75 zero waste to landfill from out and minimise tonnes of waste to its projects and offices waste across the project landfill m revenue life cycle against a 2010 baseline 84 2015 EXCELLENCE 20 90 3 3 REDUCING WASTE THE USER GUIDE DEFINITIONS Waste covers waste materials from all of our properties such as offices depots warehouses factories and other permanent facilities under our control and projects including waste from our subcontractors where we are the principal contractor that leave the site gate The objective of this section is to Reduce the amount of waste that is generated Increase the percentage of waste that is diverted from landfill Essentially a substance or object becomes waste when it is disposed of recovered e g energy from waste or recycled Waste does not include materials that never leave the clients site and are provided for by the clients e g railway ballast unless this transported from one site to another Reducing waste at source can be achieved through improved design stock control
42. ally graded SMR or above A graduate is defined as a person who is on enrolled on a graduate scheme graduate development programme operated by an operating business AGR standards for graduate recruitment refer to the Association of Graduate Recruiters http www agr org uk annual analysis of retention levels for graduates Similar standards may be used for international businesses A comprehensive development plan uses the Group or business unit pro forma and encompasses specific development opportunities Graduate schemes offered to graduates consist of a structured training programme for the first 18 months to two years of their employment 2 6 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS PI Retention rate for short term successors PI calculation Number of short term successors Percentage 96 Total number of short term successors identified at the start of the year Evidence for audit Provide records of retention rates for short term successors that have been identified and those that have been promoted since being identified employed at the end of the year 2 6 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Short and medium term successors that have development plans in place PI calculation Number of short and medium term successors with development plans Percentage 96
43. amputation such that the person Is unable to continue in the same job A major non permanently disabling injury is one that does not result in significant long term loss of physical capability Examples of major injuries include Any fracture other than to the fingers thumbs or toes any amputation that is not classified as permanently disabling Dislocation of the shoulder hip knee or spine Loss of sight whether temporary or permanent Any injury leading to unconsciousness requiring resuscitation or requiring admittance to hospital for more than 24 hours An over three days away from work injury is one that leads to the injured person being away from work for more than three consecutive days not including the day the injury occurred Industry refers to competitors and suppliers operating in representative similar sectors Long term harm to health is measured by the number of new cases of work related ill health classified with level 3 4 or 5 health consequences as defined in our Zero Harm programme 2 2 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS PI AFR Pl calculation Major injuries over three day injuries x 100 000 AFR Total hours worked Evidence for audit Monthly statistics and board reports on AFR rates 2 2 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Fatalities PI calculation Number of fatalities Evidence for audit Monthl
44. and ensure that a comprehensive development plan is in place for these individuals to provide the development and experiences necessary to fulfil their potential and progress their careers Establish leadership against appropriate standards for graduate retention in the external market particularly in relation to female graduates Pls Retention rate for those identified as short term successors to senior management positions Percentage of those identified as short or medium term successors to Group or divisional leadership positions that have a comprehensive development plan in place Match or exceed the AGR standards for graduate retention rates at 1 and 3 years 2015 MINIMUM EXPECTATIONS 70 60 Match the AGR or local equivalent standards 2015 EXCELLENCE 80 90 Match the AGR or local equivalent standards THE USER GUIDE 2 6 ATTRACT AND RETAIN GREAT PEOPLE DEFINITIONS Future leaders are defined as people that have been identified as having high potential to take up senior management positions in the future Short term successors are future leaders that are likely to take up senior management positions within the next two years Medium term successors are future leaders that are likely to take up senior management positions within the next two to five years Senior management positions are defined as those staff in substantial management roles typic
45. and life cycle knowledge are differentiators Review business plan on a six monthly basis Identify products services that could be offered Research competition and assess the risks and benefits of the sustainability products services they offer identifying opportunities for improvement Develop modify products and services Identify key potential clients Identify clients that would benefit from a new offering Collate case studies on where sustainability performance and life cycle knowledge are differentiators 6 SUSTAINABILITY 1 PROFITABLE MARKETS GROWING OUR MARKETS 2020 STRATEGIES Pls 2015 MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 1 3 Balfour Beatty is Incorporate the Number of articles 6 per operating business 10 per operating MARKETING perceived asa leader In Sustainability benefits published promoting business AND PR delivering sustainable of products and services Balfour Beatty s solutions in all marketing and sustainability offering PR plans per annum 16 1 3 MARKETING AND PR THE USER GUIDE DEFINITIONS Sustainability benefits of products and services may relate to any of the Roadmap Objectives in the Roadmap Typically they will focus on financial social and environmental benefits There are often opportunities for Balfour Beatty to reduce operating costs and whole life carbon waste or water through improved designs and solutions such as remote monitoring condition bas
46. ate a claim if not already publicly available be made available on reasonable request e g enforcement authorities Sources of further information Defra s green claims code http www defra gov uk publications files pb13453 green claims guidance pdf 17 f SUSTAINABILITY 1 PROFITABLE MARKETS CLIENT ENGAGEMENT WORKING WITH CLIENTS TO DELIVER THEIR GOALS 2020 STRATEGIES Pls 2015 MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 1 4 Balfour Beatty is the Identify and secure work No of significant peroperating business 5 per operating business WORKING partner of choice for for the sustainability projects commissions FOR THE sustainability opinion opinion leaders in each of for sustainability leaders in each of our our key markets opinion leaders per SUSTAINABILITY key markets DE OPINION LEADERS THE USER GUIDE 1 4 WORKING FOR THE SUSTAINABILITY OPINION LEADERS DEFINITIONS An opinion leader is defined as a strategic or influential client that has a track record in running their organisation sustainably or an organisation that influences or sets sustainability policies Typical opinion leaders may include multinationals listed on the Dow Jones Sustainability Index FTSE4Good STOXX Global ESG Leaders or Business in the Community Index government departments or agencies national and international not for profit organisations or large privately owned companies that are successfully improving their sustainabilit
47. ater use PI calculation Number of new water technology Innovations deployed Evidence for audit Provide evidence of water saving solutions that have been successfully deployed by the operating business such as by working with its suppliers to reduce the embodied water in products 3 7 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Reduction in indirect water use m m revenue PI calculation Current indirect water use m m revenue 2010 Baseline indirect water use m revenue Percentage 1 97 98 SUSTAINABILITY Using Balfour Beatty s water footprinting tool identify the most water intensive products and work with suppliers to determine the amount of water used in the manufacturing process Review water stress maps if available annually to prioritise solutions Localising the water footprint is important as products with a high embodied water footprint that are manufactured within a region suffering from water stress shortages will have a higher impact on the environment than one manufactured in an area with an abundant fresh water supply Review indirect water consumption and prioritise solutions to reduce consumption for major materials In conjunction with clients specify products services controls that use less water over the life cycle of a project e g water efficient dual flush cisterns for hotel refurbishments THE USER GUIDE 6 SUSTAINABILITY 3 ENVIRONMENTAL
48. centage of projects 50 100 consistently seeks to relationship management by number where we understand its clients tool in all of our businesses seek regular feedback success criteria and on our performance deliver against them using a formal customer relationship management tool 28 1 8 DELIVERING BETTER VALUE THE USER GUIDE DEFINITIONS Value generating case studies are defined as sustainable case studies that demonstrate clear quantified financial and other sustainability benefits The knowledge sharing and collaboration portal is another term for Balfour Beatty s intranet which allows different operating businesses to share knowledge and collaborate A client relationship management CRM tool is designed to monitor and set quantitative targets to improve client satisfaction levels throughout the life cycle of the project checking satisfaction levels at the start beginning and end The term regular will vary depending on the type of project being undertaken In this context we would expect client feedback to be collated at least on a six monthly basis Typically clients set the criteria by which Balfour Beatty Is judged based on their objectives and their own expectations Feedback is then provided at regular intervals throughout the life of the project as the CRM permeates every aspect of delivery and every level of the operating business 1 8 1 CALCULATION METHODOLOGY AND EVIDENCE R
49. climate change Pls 2015 MINIMUM EXPECTATIONS Percentage of bid and 25 project risk registers by number that make explicit reference to a broad range of sustainability topics 2015 EXCELLENCE 100 THE USER GUIDE 1 6 ASSESSING RISKS AND OPPORTUNITIES DEFINITIONS Risk and opportunity reviews assess and balance the client s expectations with sustainable development Issues such as local economic needs social aspects and skills development The intention is that we offer sustainable project outcomes in addition to the sustainable delivery of projects Where clients do not want a sustainable project we will still quote for works and accept orders Our role is to provide sustainability options to clients and our expectation is that over time more and more will take on board our suggestions for more sustainable outcomes By broad range of sustainability considerations we require thatthe value of atleast one aspect from each of the three areas of the Roadmap is articulated Risk and opportunity reviews of sustainability issues should be undertaken in a risk assessment style process Projects are defined by the number of contracts For instance if an operating business were employed to maintain 10 buildings as part of a facilities management contract for one client this would count as one project similarly if a rail business was installing a catenary system as part of a contract upgrade to a ra
50. d implement Recycled content of major 35 plan to maximise the use materials by value of locally sourced recycled and secondary materials for use within projects where we control the specification 2015 EXCELLENCE 60 THE USER GUIDE 3 5 MINIMISING WASTE BY USING RECYCLED MATERIALS DEFINITIONS The purpose of this objective is to stimulate the recycling market through demand for recycled content materials Major materials in this context are the main materials by spend that the operating business purchases e g sheet steel cabling aggregates concrete ballast plastic rebar etc Our aim is that at least 35 of all major materials we procure have recycled content or are substituted with a recycled material The term recycled content can include secondary aggregates materials such as pulverised fuel ash PFA rather than virgin aggregates materials where there is an environmental benefit Recycled aggregates are derived from reprocessing materials previously used in construction Secondary materials are by products of other industrial processes not previously used in construction Materials which typically have recycled content include steel rebar copper asphalt aggregates medium density fibreboard ballast concrete insulation and plasterboard 3 5 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Recycled content of major materials by value PI calculation
51. ds Depending on the operating business materials can also encompass vehicles equipment and other goods it might procure Typically these materials have one or more of the following benefits such as being Nottoxic Energy and water efficient Low embodied carbon and water From non finite sources i e readily replaceable Fully biodegradable reusable or recyclable Product life cycle refers to the concept design manufacture use and disposal phases of a material Where Balfour Beatty both constructs and operates a project the relevant businesses will need to work together to produce a whole life assessment of low environmental impact materials spend Databases of such materials include www thegreenguide org uk www greenbooklive com http ec europa eu environment gpp eu gpp criteria en htm 3 8 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS PI Spend on low environmental impact materials over the project as a proportion of total materials spend PI calculation Total spend on low environmental impact materials on a project Percentage pro Total spend on materials on a project Evidence for audit Provide evidence of the benefits of the low environmental impact materials used e g changing from using X tonnes of volatile organic compounds and associated emissions to using water based paint Provide details of the total spend on low environmental impact materials again
52. duce indirect water consumption over the project life cycle Balfour Beatty achieves industry best practice in its indirect water use STRATEGIES Undertake assessments of our indirect water footprint to identify the most significant areas of water embodied in the products and materials procured and used within our supply chain as a basis for innovation Measure and reduce indirect water consumption over the project life cycle by using materials and products with low embodied water footprints and services with improved water efficiency rates Pls 2015 MINIMUM 2015 EXPECTATIONS EXCELLENCE Number of significant 1 per annum 2 per annum new technology innovations deployed that achieve reduced indirect water use reduction in indirect Operating business Whole life water water use m m revenue measures indirect water footprint prepared for against a business use for major materials 2 projects per annum defined baseline THE USER GUIDE 3 7 REDUCING INDIRECT WATER USE DEFINITIONS Indirect water use refers to fresh mains water used to produce materials and products procured by the operating business e g water used to manufacture a construction material such as concrete products and services procured for instance road sweeping or gully cleansing Significant new technology innovations are solutions that reduce indirect water consumption by over 5 for a specific activity to which that t
53. dvertise and organise volunteering opportunities to employees Where possible employees should be encouraged to get involved in the Balfour Beatty Building Better Futures BBF community engagement programme and to engage with our selected charitable partners in participating in their volunteering opportunities where itis possible to do so Encourage employees to participate in volunteering opportunities Where possible link these to team building exercises or projects giving employees the opportunity to work with different teams and members of the wider community Keep records of the number of volunteering days and events staff have participated in set an annual monetary target for the amount of in kind donations offered Identify materials and equipment from projects that could be reused and donated to the wider community and establish the value of these Work with the community to identify suitable projects ideally but not solely promoting the BBF themes that we could support Where possible link volunteering opportunities or donations to projects to demonstrate the benefits to the community over and above the contractual specifications Incorporate activities to benefit the wider community Seek ways in which the Group s community engagement programme BBF can be utilised to help to broaden graduate and leadership development activities Include within the annual appraisal process the encouragement of managers employee
54. e auditors come up with a different result that is statistically significant you are likely to fail You therefore need to be confidentthat your sample is robustly constructed using appropriate statistical sampling with adequate coverage across the strata of different classes We suggestthat operating companies set up electronic folders with evidence in the form of soft copies for each of the Roadmap Objectives Where the User Guide makes reference to percentages we expectthe exact percentage value to be met For instance on the requirement for using 100 certified timber we would expect all timber to meet this requirement A 98 compliance rate would not meet our expectation as the risk of using illegal timber would still remain GOOD PRACTICE This section provides guidance on the typical actions one would need to take in order to achieve the 2015 minimum expectations However the good practice Is not mandatory and an operating business may choose other methodologies as an alternative route to achieve the same outcome NOMENCLATURE CATEGORISATION Each Roadmap Pl is identified by a three digit reference 1 The focus area 2 The Roadmap objective 3 The Pl s For example the second PI for Influencing clients is 1 5 2 1 Focus area Profitable markets 1 5 Roadmap objective Influencing clients 1 5 2 Percentage of clients that would place Balfour Beatty in the top three sustainable businesses in their ma
55. e choice of materials especially where we do not control the specification n cases where we do not specify the materials purchased e g rail and road clients operating businesses need to engage with the client to seek and where possible trial alternative materials that have a recycled content Itis recognised that on some occasions we do have not direct control over material specifications but instead should influence the decision makers to specify materials with recycled contents where an environmental benefit can be demonstrated Contact suppliers and ask for innovative products which have recycled content Share information on new recycled content materials with other operating businesses and make information available on the knowledge sharing and collaboration portal 93 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS WATER 2020 VISION 3 0 Balfour Beatty exceeds REDUCING relevant industry benchmarks in the oe USE reduction of water use 94 STRATEGIES Pls 2015 MINIMUM EXPECTATIONS Implement efficiency Reduction in potable 20 measures and alternative water use m m revenue technologies Share against a 2010 baseline successful innovations across the Group 2015 EXCELLENCE 30 3 6 REDUCING DIRECT WATER USE THE USER GUIDE DEFINITIONS Potable water refers to mains water that operating businesses procure from a water supplier directly Typically this will include water us
56. e in buildings depots industrial units and use of water on projects The definition includes tankered water The definition also includes the use of abstracted groundwater i e from boreholes that meets drinking water standards such as a spring without additional treatment It does not cover rainwater recycled greywater or freshwater sources such as rivers streams and lakes Although there are differences in water quality throughout the world with mains water being suitable for drinking without the risk of acute or chronic ill health in developed countries and requiring additional treatment in developing countries the purpose of this section is to reduce our impact on water reserves 3 6 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS PI Reduction in potable water use m m revenue against a 2010 baseline PI calculation Current direct water use m m revenue 2010 Baseline direct water use m revenue Percentage 1 Evidence for audit Provide up to date spreadsheets that list the total operating business s water consumption with a breakdown of the locations at which the water is being used and provide evidence of the source data such as invoices or meter readings It is important that there is a full audit trail The auditors may review the 2010 baseline data to ensure that the baseline data is reliable and that reductions have occurred The reduction in water relates to facilities sites and plan
57. e to do so Provide training and skills to support the development of and build capacity in the local community such as by running apprenticeship programmes or running training programmes for local suppliers Consider how the skills and knowledge base of local communities could be improved when tendering for new contracts Advertise employment and training opportunities locally Set up a system for tracking the number of employees that are employed locally Monitor the number of staff that are employed locally 7 f SUSTAINABILITY 2 HEALTHY COMMUNITIES COMMUNITIES WE SERVE IMPROVING THE QUALITY OF LIFE FOR INDIVIDUALS AND COMMUNITIES 2020 STRATEGIES Pls 2015 MINIMUM VISION EXPECTATIONS 2 12 Balfour Beatty delivers Each operating business Percentage of locations 75 demonstrable long term develops a community positive impacts by engagement plan and engagement plans and engaging with local sets clear targets to associated monitoring in communities in allareas deliver tangible financial place where it operates and non financial benefits including through charitable giving to local communities and monitors progress against the same projects with community ENGAGING WITH COMMUNITIES 12 2015 EXCELLENCE 100 THE USER GUIDE 2 12 ENGAGING WITH COMMUNITIES DEFINITIONS A community engagement plan is a document that describes the key activities that will be carried over a 12 mont
58. echnology applies such as suppliers using filtering systems to reuse water in the manufacture of concrete masts the use of microfiber cloths that reduce the need for water for a cleaning contract or reducing total indirect water use for all damping down by subcontractors on a site Materials are the main materials by spend that the operating business may purchase such as cement concrete plastic flooring metals plastics quarried material timber building elements paints polyurethane foams steel enamel baths and shower trays and wall and ceiling coverings A more detailed breakdown of these material categories Is available on Parsons Brinckerhoff s water footprinting tool which is available for download Check that main areas of spend i e the top 20 materials by value have water footprinting calculations Should these not be covered by conversion factors on the Parsons Brinckerhoff tool please contact Group sustainability This tool accounts for water throughout the supply chain For indirect water consumption we are only interested in the water used in the top 20 materials products by spend Whole life water footprint refers to a methodology chosen by the operating business to measure the indirect water use i e beyond major materials of a project 3 7 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of significant new technology innovations deployed that achieve reduced indirect w
59. ect is accountable Goals are objectives and needs that our clients and stakeholders may have These do not necessarily have to have a sustainability focus The solutions we offer however do 1 7 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Projects that have formally confirmed sustainability objectives with the client PI calculation Number of projects with formally Percentage Total number of projects Evidence for audit Produce a master list of all projects and collate information on the number of projects with formally confirmed sustainability objectives Calculate the percentage of all projects where formally confirmed sustainability objectives have been set confirmed sustainability objectives GOOD PRACTICE Define sustainability objectives for all projects at the outset of engagement with the client identifying how delivery will best be achieved as well as reaching the end point objectives and propose sustainability objectives if none exist Ensure that these objectives are being met Review each project to identify all potential sustainable solutions and prioritise against budget long term benefits to society and the environment payback and practicality and ensure the findings are shared and discussed Agree the sustainable solutions to be applied on the projects and communicate across delivery teams as early as possible in the project cycle e g tender design and va
60. ed by offering new solutions and different ways of working Offer the client an enhanced sustainability offering identifying key sustainability and cost benefits Demonstrate and communicate Balfour Beatty s capability to deliver expertise and our experience of delivering sustainable solutions and how this can be integrated with our client s own business needs Develop a client satisfaction survey see also 1 8 Delivering Better Value to capture client feedback 22 Operating businesses may wish to set targets to continually improve satisfaction levels Balfour Beatty will develop further guidance during 2013 on core questions that the client satisfaction survey CRM tool should include such as whether the client would place Balfour Beatty in the top three sustainability businesses in their market sector Obtain feedback from our clients through market surveys feedback questionnaires and verbal communication etc and seek permission to use such information within promotional material 7 SUSTAINABILITY 1 PROFITABLE MARKETS CLIENT ENGAGEMENT WORKING WITH CLIENTS TO DELIVER THEIR GOALS 2020 VISION 1 6 Sustainability risks and ASSESSING RISKS AND management OPPORTUNITIES 24 opportunities form a core part of all bid and project STRATEGIES Include a broad range of sustainability considerations in all project opportunity and risk reviews including asset life cycle risks such as resilience to
61. ed monitoring planned preventative maintenance and sustainable building designs Articles published is defined as the number of editorial entries in journals magazines newspapers and websites They do not include adverts or advertorials If the same press release results in several articles this only counts as one article Where two or more different operating businesses contribute to one press release the same press release can be counted by each operating business 1 3 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of articles published promoting Balfour Beatty s sustainability offering PI calculation Number of articles published per annum Evidence for audit Provide examples of articles published that highlight the operating business s sustainability offering on an annual basis Articles do not have to focus on sustainability but need to highlight specific sustainability benefits offered by a product or service GOOD PRACTICE Identify media streams and publications that the operating business could approach to publish its sustainability offering Identify the sustainability benefits of key products and services that the operating business would like to promote to its clients Work with project leads to capture and quantify the sustainability and commercial benefits of our products or services such as identifying the kWh CO maintenance and financial savings that for example
62. ent management activities Provision of diversity training for senior leaders Establishment of a Group Diversity and Inclusion Skills Committee Renewal of the Group websites from a diversity inclusion perspective External awards and recognition for progress on diversity 2 4 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Percentage of senior leadership positions held by women PI calculation Number of senior leadership positions held by women Percentage Total number of senior leadership positions Evidence for audit Organisational chart 2 4 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Percentage of workforce that is female PI calculation Number of FTE women in the workforce Percentage Total FTE workforce Evidence for audit HR Statistics 4 SUSTAINABILITY Pl Percentage of divisional diversity inclusion targets and actions PI calculation Number of divisional diversity and inclusion targets and actions achieved Percentage Total divisional diversity and inclusion targets and actions Advertise jobs transparently Advertise development opportunities transparently Have mixed gender recruitment panels Offer flexible working arrangements Appoint mentors for female employees to provide support in their career development Implement the divisional action plans on diversity and inclusion identifying clear action ow
63. er 50 years Where possible ecological enhancements should be on the project site However where the enhancement might be compromised on site ecological offsetting can be used to either deliver an enhancement or achieve no net ecological loss i e supporting or improving habitats off site For instance on a road widening project we may choose to support an existing nature reserve These are only appropriate to projects where we are interacting with flora and fauna e g we would not expect an M amp E contract to incorporate ecological offsetting features Balfour Beatty has established guiding principles on ecological offsetting that are applied at project sites where on site ecology loss is unavoidable and an offset approach would deliver greater conservation benefit These principles are to ensure that our offset projects are appropriate aligned with international standards and deliver long term benefit for nature conservation Our guiding principles on ecological offsetting are Only when ecological resource loss is unavoidable Ona like for like basis where possible and appropriate n order of priority locate the offset within the locality of the project at a regional level or a national level additional compensation required for national sites Balance the trade off between a like for like offset and its proximity to the project according to the best outcome for nature conservation Where possible to go bey
64. ers consumption for which Balfour Beatty is charged Leased Rented Balfour Beatty is billed 1 amp 2 Whenever we purchase energy directly from an energy supplier this becomes a scope 1 or 2 emission In the case of submetering the landlord effectively becomes the energy supplier THE USER GUIDE If for example we were a tenant in a multi let building which had a central boiler plant which operated on gas and submetered electricity supply the gas supply would be reportable under our scope 3 emissions and the electricity supply would be reportable under our scope 2 emissions For the gas supply a further calculation would be needed to apportion the amount of gas used by Balfour Beatty and the number of other tenants For instance if in the above scenario the property was a four storey building of which we occupied two floors we would apportion half of the gas consumption to our operations under scope 3 see Section 3 2 DEFINITION OF PROJECTS Projects are defined by the number of contracts For instance if an operating business was employed to maintain 10 buildings as part of a facilities management contract for one client this would count as one project Similarly if a rail business was installing a catenary system as part of a contract upgrade to a railway line and then won a contract for an extension on a neighbouring line this would be classed as a separate projectto the original catenary system FREQUENTLY ASK
65. f employees that confirm that they are receiving opportunities to develop Percentage 96 Total number of employees Evidence for audit Survey returns amp calculations 2 5 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Development programmes PI calculation Number of development programmes with sustainability content Percentage 96 Total number of development programmes Evidence for audit Development programmes that make reference to and include all of the three Roadmap areas 2 5 3 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Internal awards and other programmes that recognise sustainability PI calculation Number of awards Evidence for audit Examples of internal awards and other events that recognise staff contributions for sustainable innovation Where a pay rise or promotion Is used as evidence there needs to be a clear paper trail illustrating that these were in at least part due to sustainable innovation 51 9 SUSTAINABILITY a collective responsibility THE USER GUIDE 2 5 DEVELOPING THE SKILLS AND CREATIVITY OF OUR PEOPLE GOOD PRACTICE Conduct an anonymous regular employee survey This may be phased throughout the year and be used as a barometer on monthly satisfaction levels Some operating businesses carry out the annual employee survey on an alphabetical basis tackling different surnames in different months but using the same questions Analyse t
66. h period and or lifespan of a project to engage with the community Community engagement plans are project specific and need to be tailored to local needs and the length of the project These can then feed into an overarching community engagement plan for the operating business They only cover operations that fall under our direct control Further guidance for developing a community engagement plan will be provided in 2013 Operating business may decide to develop one community engagement plan identifying suitable locations and calculating the number of locations projects participating in the plan Engagement plans may not always be applicable especially where we are a subcontractor working for another principle contractor and are not empowered to liaise with stakeholders 2 12 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Locations projects with community engagement plans and associated monitoring in place PI calculation Number of locations projects that have a community engagement lans in place Percentage 96 E Evidence for audit List of all locations projects that have a community engagement plans in place Keep electronic records of community engagement plans Provide examples of associated monitoring Total number of locations projects GOOD PRACTICE As part of the local community engagement plan at the outset of each project consider where the client permits Using different methods
67. he operating business knows that the information they have been provided with is reliable Where no responsible sourcing scheme has been used provide evidence that the timber and timber products have been legally sourced by using WWF s known licensed source definition 106 3 9 3 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Value of major materials directly procured from recognised responsible sources PI calculation Value of major materials directly procured from recognised responsible sources Percentage Total value of major materials Evidence for audit Provide a breakdown of the value of materials directly procured from recognised responsible sourcing or equivalent schemes 3 9 4 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Value of major materials directly procured from recognised responsible sources by our supply chain PI calculation Value of major materials procured from recognised responsible sources by our supply chain Percentage 96 Total value of major materials procured by our supply chain Evidence for audit Provide a breakdown of the value of materials procured from recognised responsible sourcing or equivalent schemes by our supply chain This will need to include information on the relevant schemes and traceable evidence from our suppliers demonstrating that the materials meet the relevant responsible sourcing criteria 3 9 SOURCING RESPONSIBLY GOOD PRAC
68. he timber and b confirm that the harvesting entity had a legal rightto harvest 3 9 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Volume of recognised responsibly sourced direct timber and timber products PI calculation Volume of direct timber and timber product spend from recognised responsible sourcing schemes Percentage 96 P 3 Total volume of direct timber and timber product spend Evidence for audit Keep Chain of Custody records for all directly sourced timber and timber products Where we control the specification produce a table database illustrating all timber and timber products bought the quantity in tonnes and the responsible sourcing scheme 105 6 SUSTAINABILITY 3 9 SOURCING RESPONSIBLY 3 9 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Volume of recognised responsibly sourced indirect timber and timber products PI calculation Volume of indirect timber and timber product spend from recognised responsible sourcing schemes Percentage J Total volume of direct timber and timber product spend Evidence for audit For where we do not control the specification and for where timber is bought indirectly produce a table database illustrating all timber and timber products bought the quantity in tonnes the responsible sourcing scheme Keep records of the information provided by the suppliers so that it can be traced back Auditors may also challenge how t
69. he results from employee surveys and identify underlying trends that may or may not need addressing Share results and communicate to employees actions that will be taken to address any issues Review current development programmes and include sustainability content where appropriate Provide opportunities for staff to suggest innovative solutions Offer staff opportunities to pursue innovations with suppliers and clients Run awards and competitions to reward recognise and promote sustainable innovation ideas from employees within the operating business These may form part of a wider awards ceremony that the operating business may undertake Consider celebrating successes through internal publications staff magazines etc Mentoring and project based learning can offer good development opportunities 52 6 SUSTAINABILITY nnllnyetnwin rnc a LU GU L IVD G 9 ponsibility 2 HEALTHY COMMUNITIES OUR PEOPLE VALUING EMPLOYEES AND THEIR CONTRIBUTION IN DELIVERING SUSTAINABILITY 2 6 ATTRACT AND RETAIN GREAT PEOPLE 54 2020 VISION Balfour Beatty has a market leading career and development proposition for future leaders Balfour Beatty is recognised as leading standards in the retention of graduates in the relevant sectors particularly in regard to female graduates STRATEGIES Formally identify leaders with high potential consistently across the Group
70. ilway line and then won a contract for an extension on a neighbouring line this would be classed as a separate project to the original catenary system 1 6 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Bid and project risk registers by number that make explicit reference to a broad range of sustainability topics PI calculation Number of bid risk registers that explicitly reference sustainabilit P1 Percentage 96 Bla eae eet bal el Total number of bid risk registers Number of project risk registers that explicitly reference sustainability P2 Percentage 96 2 Total number of project risk registers Overall PI Percentage P1 P2 2 Note Bids and projects have to be calculated separately as not all projects will have sustainability risk assessments carried out at bid stage Similarly not all bids will become projects Evidence for audit Produce a master list of all bid projects and collate information on the number of projects that make explicit reference to sustainability in their risk registers GOOD PRACTICE Conduct a sustainability risk analysis in the project risk and opportunity review for all new tenders and measure the operating business ability to Perform the contract Compete against its competitors Ensure it takes a leading sustainability position when responding to its clients on such issues as defining resilience to climate change 25 6 SUSTAINABILI
71. impacts on ecological resources have been implemented before offsets are considered Ideally these should contribute to local or regional conservation priorities that will be set by the government or local authorities Where loss of ecological resources is unavoidable identify local conservation partners to support by undertaking ecological offset projects based on our guiding principles Use a government approved metric tool to measure ecology loss from the project calculate the level of offsetting required and quantify ecological gains from the offset Demonstrate the balance between the project s impact and benefit achieved through the offset Confirm with client that funds are available to carry out offsetting projects 110 Balfour Beatty C recycle www balfourbeatty com Think before you print Please do not print this Balfour Beatty plc 2012 User Guide unless you really need to
72. industries New markets does not include offering the same service we offer one client to another client as this would not be new e g offering same service to a private sector client that we already provide to a public sector client would not count as a new market However if a different operating business were to replicate the sustainable offering of an existing operating business this would count as a new market In this context the business planning process is a precursor to a business plan that is used for identifying sustainable industries markets and products and services where sustainability performance and life cycle knowledge are differentiators 1 2 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of entries into new markets where sustainability performance and life cycle knowledge are differentiators PI calculation Number of entries into new markets Evidence for audit Demonstrate that a suitable business planning process has been developed to identify sustainability industries This may include emails memos draft processes and procedures that make reference to identifying sustainable industries or a draft business plan identifying relevant markets and products and services where sustainability performance and life cycle knowledge are differentiators GOOD PRACTICE Develop a business plan that identifies demand for products and services where sustainability performance
73. inesses should only report on metrics that they have financial control over This means we capture data from operations that we are able to direct financially i e where we have the power to make investment decisions regarding the operations of our assets For Instance we would not expect an operating business to report on the energy consumption of the housing it maintains for residents unless it pays for the utilities in which case it would be worthwhile investing in measures to improve energy efficiency In the case of buildings where we are a tenant and pay for our utilities as part of a service charge such as for waste or water we do not expect operating businesses to capture consumption data In many of these cases the consumption data would be influenced by the consumption patterns of other tenants and the landlord Table 2 illustrates the reportable scopes for Balfour Beatty under different circumstances in the case of energy For leased and rented properties the same principles apply whether or not they are single let or multiple let buildings They key difference Is that some supplies such as the central heating plant are likely to be paid for by the landlord TABLE 2 REPORTABLE SCOPE Building Billing Reportable Scope type for Balfour Beatty Owned by Balfour Beatty Is billed 1 amp 2 Balfour Beatty Leased Rented Landlord is billed 3 Balfour Beatty pays a service charge Leased Rented Landlord is billed 1 amp 2 but submet
74. ion plan within its first year in the Group We require all newly acquired businesses to achieve the minimum expectation within a further three years of acquisition 6 SUSTAINABILITY BASELINES TARGETS AND REPORTING As Peter Drucker first observed what gets measured gets managed Measurement is an essential precursor to performance improvement A number of areas require operating businesses to measure and track key aspects of their performance on a monthly or quarterly basis This information is for use within the operating business and not for reporting monthly or quarterly to Group Annual reporting of Pls to Group for the Sustainability Report will continue through the Enablon system A number of improvement targets are outlined under Environmental Limits Depending on the Roadmap Objective baseline years of 2013 or 2010 have been specified here which should be used for operating businesses in establishing their targets However we recognise that some operating businesses already have robust baselines in place for some components of their environmental performance and in these cases an earlier baseline year can be used We strongly advise operating businesses to use one set of baseline figures for each metric Operating businesses will already have systems in place to measure some of the Pls identified in the User Guide Where 2010 baselines do not exist or where there are gaps in the data operating businesses should use
75. ir day to day roles and the Roadmap Calculate the percentage of staff that have individual sustainability objectives and provide an explanation as to how this has been calculated The target percentage is for those staff that have appraisals i e if out of a workforce of 5 000 employees 3 500 have appraisals 2596 of these should have sustainability related objectives in their appraisals Where operating businesses take on new staff or acquire new businesses they have 12 months before the new members of staff have to be included in the above appraisal process 38 GOOD PRACTICE Agree at Board level the director responsible for delivering each Roadmap PI to the standard set by the operating business Ensure that the senior management team have sustainability objectives that are cascaded down through their teams Provide evidence that Board directors are formally engaged in ensuring that their relevant Roadmap areas are being implemented Evidence may include minutes from meetings emails and memos job descriptions quarterly reviews of the action plan and press releases Measure the percentage of the 32 Roadmap Objectives that have been incorporated into the objectives of Board directors amp Setindividual sustainability objectives in appraisals for staff not operatives Review progress against staff objectives 2 iis E i i au i a PN ji E S 21 u u v a Oi a THE USER GUIDE u
76. ity KSC intranet site After avoiding and reducing those emissions as much as possible carbon offsetting is a means of compensating for your remaining scope 1 and 2 emissions by making an equivalent carbon dioxide saving elsewhere Carbon offsetting involves calculating emissions and then purchasing credits from emission reduction projects Only Gold Standard offsets under the Clean Development Mechanism CDM should be used All potential offsetting should be referred to Group Offsetting should never be the first choice Review monthly scope 1 and 2 emissions to identify trends and opportunities to reduce consumption Develop business cases to reduce emissions After calculating the ROI we recommend developing a short paper outlining benefits costs resources and timescales for Board approval Once approved ensure that the project is carried out according to the specification and monitor the savings This information is particularly useful for case studies Feeding this information back will help you develop further business cases in the future For further guidance on business cases refer to the 121 Energy Saving Guide For further guidance visit http www ghgprotocol org 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS CLIMATE CHANGE 2020 STRATEGIES VISION 3 2 Balfour Beatty achieves a Quantify significant scope IDENTIFYING AND X Significant reduction in 3 emissions e g embodied scope 3 emissions where
77. lated initiatives and targets The achievement of these targets Is referred to explicitly in our expectations in the Roadmap In order to make a broad impact on diversity over the next three years however we have developed a further two primary indicators focused on increasing the representation of women in the Group generally and in senior leadership positions within the organisation Improving our gender diversity in the organisation in particular is a clear priority for us in terms of improving our access to talent in the market and reflecting our clients and the communities we serve inthe make up of our staff We recognise at the same time that improvements in gender diversity will also create an environment in which we can make inroads into our broader diversity objectives Senior leadership position is defined as one that is a maximum of two levels away from the CEO MD or comparable position for the operating business Workforce is defined as all directly employed staff and operatives The divisional diversity and inclusion targets and actions are those set out by Balfour Beatty Group in the Group and Divisional three year action plan These currently include Year one targets and actions for The appointment of female non executive Board members Number of women in Group leadership positions External benchmarking on diversity and inclusion Monitoring female promotion rates and participation in tal
78. lfour Beatty Including contractors these are members of our supply chain that we place an order or contract with Tier 1 supply chain contracts are Tier 1 suppliers that make up 80 of Tier 1 spend Self assessment is an evaluation that is conducted by suppliers on their own progress against the BB Roadmap or a similar proforma to benchmark and improve their sustainability Improvement plans outline the targets tasks and deadlines that individual suppliers will undertake to improve their sustainability performance such as reducing the emissions of engines over time steadily increasing the PFA content in cement or taking on X number of apprentices The improvement plans are based on the suppliers key risks and opportunities that are generally identified through face to face meetings Supplier audits are defined as audits to help Balfour Beatty understand the performance and compliance of suppliers with environmental standards verify claims and identify opportunities We expect these to focus on objectives from the Healthy Communities and Environmental Limits sections of the Roadmap Supplier audits are typically conducted by supply chain leads within the business and form part of a wider audit i e focus on other aspects of the supplier client relationship as well as sustainability Communication pathways refers to communication channels for Tier 1 suppliers that fall within the Tier 1 supp
79. lue engineering stages A sustainable solution does not necessarily mean increased costs Review the options with the client and appraise based upon short and long term added value Engage all relevant parties to ensure that agreed sustainability targets to meet their aspirations Ensure that the products of success and lessons learned are shared across all operating businesses through appropriate communication channels such that they become embedded throughout our culture so we learn from and build on our successes and avoid repeating mistakes Establish and offer costed and funded alternative options that meet or exceed objectives providing payback to all stakeholders and explain why these options may be preferable to the original proposals 2 f SUSTAINABILITY 1 PROFITABLE MARKETS EFFICIENT DELIVERY TAKING A CONSISTENT AND FORWARD LOOKING APPROACH 2020 STRATEGIES Pls 2015 MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 1 8 Balfour Beatty brings Deliver improved value to Number of value 5 per annum 10 per annum DELIVERING sustainable thinking to our clients through generating case studies bear on all its projects deploying sustainable produced by the business BETTER VALUE with the objective of solutions evidenced and uploaded to the improving client value through case studies Balfour Beatty through a whole life knowledge sharing and approach to infrastructure collaboration portal Balfour Beatty Deploy a customer Per
80. ly chain contracts definition Such pathways include seminars and exhibitions supplier newsletters bulletins regular scheduled face to face meetings etc which facilitate the sharing of knowledge between Balfour Beatty and its supply chain 2 8 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Tier 1 supply chain contracts where supplier self assessments have been carried out PI calculation Total value of Tier 1 fetalfierispend x 80 supply chain contracts 100 Value of Tier 1 supply chain contracts where suppliers have completed self assessments Percentage Total value of Tier 1 supply chain contracts Evidence for audit List of Tier 1 suppliers with completed self assessment 2 8 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Tier 1 supply chain contracts where improvement plans have been completed PI calculation Value of Tier 1 supply chain contracts where improvement plans have been completed Percentage Total value of Tier 1 supply chain contracts Evidence for audit Keep records of the improvement plans that have been completed and the assumptions used for the calculations 61 A PI Value of supplier audits conducted that make reference to sustainability PI calculation Value of supplier audits conducted that make reference to sustainability Percentage Total value of supply chain audits conducted Evidence for audit Keep records
81. n to how easily it is to decommission the building or infrastructure asset and what proportion of materials can be reused or recycled to reduce waste arising at the end of its natural lifespan Check with clients that the plans can be implemented as Intended Set project targets of recoverable materials to maximise reuse and recycling of materials following decommissioning The key principles to reduce the waste from projects are e Design for reuse and recovery Design for off site manufacturing e Design for materials optimisation e Design for waste efficiency procurement Design for deconstruction and flexibility Closed loop thinking on the project should be adopted and not limited to the site boundaries If possible look to set up or work with local material exchange programmes so that materials not required by the project can be used elsewhere For example soil removed as part of ground works should be stored for later use on the site or at another site For further guidance visit Wrap Designing out waste guides http www wrap org uk 90 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS WASTE 3 5 MINIMISING WASTE BY USING RECYCLED MATERIALS 92 2020 VISION Balfour Beatty supports innovation in the use of new materials and techniques to apply closed loop thinking to reduce waste in conjunction with its customers and supply chain STRATEGIES Pls 2015 MINIMUM EXPECTATIONS Develop an
82. nd calculate the percentage of ecological offsetting projects using Balfour Beatty s offsetting methodology that have been delivered as a proportion of projects where on site ecology loss has been unavoidable 109 e SUSTAINABILITY a collective responsibility Ensure ecological protection measures are in place on all projects and monitor their effectiveness and efficiency Establish the ecological features on site that could be affected by the works before the start of the project such as by using the cHECK tool Where an operating business is notthe principal contractor ensure legal requirements are still being met and discuss with the principal contractor how enhancement activities could be undertaken Calculate the ecological biodiversity units of a project site using a government approved metric tool such as Defra s Guidance for Developers 2012 and identify ecological features on site that could be affected by works Establish the overall ecological value of the project site for example see Ecological Value Criteria by Chris Britton Analyse the effectiveness and efficiency of protection measures and collate Ecology Lessons Learnt Reviews on a central portal as an evidence database that is easily accessible Review local conservation masterplans to identify how local ecology could be improved with stakeholders If appropriate Adhere to the ecological mitigation hierarchy by ensuring that all efforts to avoid and minimise
83. ners and implementation dates Run diversity training courses Set up systems to collate relevant diversity data 48 6 SUSTAINABILITY a collective responsibility 2 HEALTHY COMMUNITIES OUR PEOPLE VALUING EMPLOYEES AND THEIR CONTRIBUTION IN DELIVERING SUSTAINABILITY 2020 STRATEGIES Pls 2015 MINIMUM 2015 VISION EXPECTATIONS EXCELLENCE 2 5 A passion for coaching All employees receive Percentage of employees 50 70 DEVELOPING and developing others is sufficient opportunities that confirm that they are THE SKILLS AND embedded throughout for personal development receiving sufficient Balfour Beatty and seen opportunities for personal CREATIVITY OF as a key requirement for development in the OUR PEOPLE leaders in the Group employee survey Sustainability awareness All leadership development Percentage of 50 100 is a key element of Balfour programmes include development Beatty s development explicit reference to our programmes with agenda and is recognised sustainability agenda and sustainability content as a requirement of its objectives current and future leaders Promote and recognise Number of internal 1 3 sustainable innovation awards and other as a positive behaviour programmes within the for all Balfour Beatty operating business employees and instil a that recognise innovation commitment in our leaders in sustainability to support innovation 50 THE USER GUIDE 2 5 DEVELOPING THE SKILLS AND CREATIVITY OF
84. nes of total waste generated m revenue Percentage 1 Evidence for audit Enablon reporting data Provide up to date monthly spreadsheets that list the total amount of waste generated and provide evidence of the source data such as invoices weighbridge receipts or waste transfer consignment notes It is important that there is a full audit trail The auditors may review the 2010 baseline data to ensure thatthe baseline data is reliable and that reductions have occurred Achieve a 10 reduction in the amount of waste generated by December 2015 against a 2010 baseline 3 3 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pi Reduction in tonnes of waste to landfill m revenue PI calculation Current tonnes of waste sent to landfill m revenue 2010 Baseline tonnes of waste sent to landfill m revenue Percentage 1 Evidence for audit Enablon reporting data Operating businesses need to demonstrate at least 75 reduction in waste to landfill by December 2015 against a 2010 baseline or earlier 85 f SUSTAINABILITY ANg 1 THE USER GUIDE 3 3 REDUCING WASTE GOOD PRACTICE Monitor waste from all of our properties such as offices depots warehouses factories and other permanent facilities under our control and projects including waste from our subcontractors where we are the principal contractor on a monthly or quarterly basis Work with suppliers contractors as part of
85. ns or in the tender documentation Projects are defined by the number of contracts For instance if an operating business was employed to maintain 10 buildings as part of a facilities management contract for one client this would count as one project Similarly if a rail business was installing a catenary system as part of a contract upgrade to a railway line and then won a contract for an extension on a neighbouring line this would be classed as a separate project to the original catenary system An enhanced sustainable solution is a project where the operating business has agreed to providing more sustainable outcomes to the client than the client originally specified These would need to link to at least one of the Roadmap Objectives for healthy communities or environmental limits For instance having a refurbishment project carried outto a SKA Gold rating would be a good example as the SKA assessment methodology touches on several Roadmap Objectives of the environmental limits section of the Roadmap including scope 1 2 and 3 emissions recycled content materials waste water etc similarly a facilities management project that offers apprenticeships or supports local unemployment would be considered as an enhanced sustainable solution A value engineered solution that solely saves money for instance would not be classed as an enhanced sustainable solution The term top three sustainable businesses is
86. nstruction operation decommissioning and maintenance 88 THE USER GUIDE 3 4 MINIMISING WASTE OVER THE LIFE CYCLE OF ASSETS DEFINITIONS Assets see Roadmap Objective title refer to buildings infrastructure and mechanical and engineering components that we may build install or commission and the plant fleet and equipment used in the process e g tunnelling machines As the cost of raw materials will increase over time this element of the Roadmap will become more and more important Over our projects life cycle we aim to minimise waste through working with our clients and suppliers to ensure that the materials and products procured can be either reused or recycled at the end of their natural life Our aspiration is to ensure 100 of materials reuse or recycling at end of life for the asset The aim is to equip the client with a plan for material reuse and recovery This may be used long after the project has been completed or applied directly as part of the project delivery such as for refrigerant upgrade programme on cooling systems As a minimum they should include information on how hazardous and non hazardous materials can be segregated and recycled and be applied to the major materials used We do not expect operating businesses that only offer a service contract with no ownership or influence over assets to have a materials reuse or recovering plan in place e g a cleaning contract However where an o
87. ojects that benefit the wider community This includes projects that will improve the environment It does not include personal free time that staff might give up on weekends to support a good cause Employees are all people who are paid wages directly by the operating business to perform duties It does not include contractors or agency staff However operating businesses have the option of not including operatives in volunteering programmes Where this Is decided it must be formally documented Paid leave occurs in work time Credit for employees own volunteering in their own time shouldn t be taken into account It does not include project related activities such as presenting or attending a governors meeting at a school that we are building as these are activities that Balfour Beatty derives a profit from and that we would have to carry out anyway If however a member of staff took paid leave to volunteer for a school that Balfour Beatty was not delivering a project for this would qualify as paid leave In kind donations refer to the value of materials equipment or services that Balfour Beatty has provided to a good cause free of charge This can include the value of staff time on pro bono work Wider community does not necessarily mean local community Balfour Beatty has for instance supported projects in Africa in the past 2 10 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS
88. ond no net loss and deliver enhancements Work with conservation partners Consider and where possible deliver benefits to society from the offset Ecology offsetting projects are only applicable where permanent ecology loss is unavoidable Sites that are reinstated are not within scope Although there is no set de minimus rule for offsetting as damage to a relatively small area could still result in the destruction of endangered species risk assessments can be used to rule out sites where off setting is not applicable 3 10 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Project sites with ecological enhancement delivered PI calculation EE Number of project sites with ecological enhancement delivered Percentage Total number of project sites Evidence for audit Provide a table with a list of all the projects the operating business has completed during the year and calculate the percentage of projects that have had ecological enhancements delivered 3 10 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of ecology offsetting projects delivered as a proportion of projects where on site ecology loss has been unavoidable PI calculation Number of ecology offsetting projects delivered where on site ecology loss Percentage has been unavoidable Total number of project sites where on site ecology loss has been unavoidable Evidence for audit Provide a summary of projects a
89. op a plan to reduce the major impacts identified focusing on where we can make the most significant changes This may include specifying more durable materials to reduce waste over an asset s design life or selecting materials with lower embodied energy or reduced hazardous substance content or higher recycled content Work with suppliers to research and trial new solutions that deliver environmental impact reductions 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS MATERIALS 2020 STRATEGIES VISION 3 9 Where Balfour Beatty Ensure that timber and SOURCING controls the specification timber products are 100 of timber timber procured from recognised RESPONSIBLY products including paper responsible sourcing and card purchased schemes Influence the directly and through our supply chain to ensure supply chain for useon that the timber used for our projects comes from packaging around the recognised responsible goods supplied is from sourcing schemes recognised responsible sourcing schemes Balfour Beatty procures Implement Flexible all its materials from Framework both within recognised or equivalent Balfour Beatty and its responsible sourcing supply chain Where no schemes where It recognised responsible controls the specification sourcing schemes exist for materials we adopt or develop appropriate sustainable procurement criteria for responsible sourcing and encourage our supply chain to adopt the same practise 10
90. ose who choose not to follow our procedures Never repeat the same error Seek out best practice We adopt it we share it Challenge current practice and dare to innovate so we can eliminate all risk of serious harm from all our activities Insist everyone is involved Ensure everyone everywhere is informed trained and engaged 6 SUSTAINABILITY a collective responsibility 2 HEALTHY COMMUNITIES OUR PEOPLE VALUING EMPLOYEES AND THEIR CONTRIBUTION IN DELIVERING SUSTAINABILITY 2020 STRATEGIES VISION 2 3 Balfour Beatty is Offer a range of healthy PROMOTING recognised as an lifestyle advice and employer that actively options to our people HEALTHIER supports and promotes including benefits LIFESTYLES a healthy lifestyle for available to employees Its people Monitor and review sickness absence 44 Pls 2015 MINIMUM EXPECTATIONS Number of healthy 1 lifestyle campaigns run by operating business per annum Average number of sick 4 5 days per FTE per annum 2015 EXCELLENCE 2 40 THE USER GUIDE 2 3 PROMOTING HEALTHIER LIFESTYLES DEFINITIONS A healthy lifestyle campaign is a targeted programme that should contain at least two initiatives such as amp Subsidised gym sport membership amp Sportactivities for employees e g global corporate challenge badminton clubs or football leagues Selection of healthy snacks such as fruit bowls in offices Healthcare provision for operatives
91. perating business has influence over the cleaning materials it uses we would expect it still to identify solutions that maximise material reuse or recovery For our consultancy businesses we would expect the design stage of the project to consider relevant plans for reuse and recovery 3 4 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Projects by value having a plan for material reuse and recovery atthe end of the project s life PI calculation Value of projects having a plan for material reuse and recovery at the end of the project s life Percentage Total value of all projects Evidence for audit Provide a table with a list of all the projects the operating business is delivering by value and identify those projects that have material reuse or recovery plans in place The reuse or recovery plans must document which waste materials will be generated at key stages of the project and how these will be reused recycled or recovered The plans should also detail information for dealing with assets at the end of their life e g providing options for recovering old railway tracks or redundant equipment 89 6 SUSTAINABILITY 3 4 MINIMISING WASTE OVER THE LIFE CYCLE OF ASSETS GOOD PRACTICE Adopt opportunities for closed loop thinking by reusing materials on site within projects and ensuring the materials and products purchased can be recycled at end of life of the asset An appraisal must be give
92. r 6 SUSTAINABILITY a collective responsibility 2 HEALTHY COMMUNITIES OUR PEOPLE VALUING EMPLOYEES AND THEIR CONTRIBUTION IN DELIVERING SUSTAINABILITY 2020 STRATEGIES Pls 2015 MINIMUM VISION EXPECTATIONS 2 2 Zero Harm is a permanent Share best practice AFR 0 10 KEEPING reality within the Group internally within the and Balfour Beatty Group and externally Fatalities 0 PEOPLE SAFE continues to be a sector within our industry leader in Health and Hold management Permanently disabling 0 Safety accountable for the injuries competent identification and management of Injuries to members of 0 all risks Seek to lower the public the potential for injury through revised processes that reduce the number of people exposed to hazards Long term harm to health 0 40 2015 EXCELLENCE 0 0 0 2 2 KEEPING PEOPLE SAFE THE USER GUIDE DEFINITIONS Operating businesses are required to achieve our Zero Harm targets The Accident Frequency Rate AFR is defined as AFR Number of injuries classified as Major injuries or Over three days away from work per 100 000 hours worked The 100 000 hours are an approximation of the number hours an employee will work in their whole life Major injuries refers to permanently disabling and non permanently disabling injuries A major permanently disabling injury is a major injury that results in significant long term loss of physical capability e g an
93. r friends basis This may be phased throughout the year and be used as a barometer on monthly satisfaction levels Some operating businesses carry out the annual 2 11 employee survey on an alphabetical basis tackling CALCULATION different surnames in different months METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Percentage of employees who confirm that they are Satisfied Analyse the results from employee surveys and identify underlying trends that may need addressing Achieving standing in Best Places to Work surveys PI calculation Number of employees who confirm they are satisfied Percentage Total number of employees providing feedback in surveys Evidence for audit Records of employee surveys and analysis of the survey data 2 1 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Percentage of employees who are advocates for the Group as an employer PI calculation Number of employees who identify themselves as advocates Percentage Total number of employees providing feedback in surveys Evidence for audit Records of employee surveys and analysis of the survey data SUSTAINABILITY 2 HEALTHY COMMUNITIES SUPPLY CHAIN PARTNERING WITH OUR SUPPLY CHAIN TO DELIVER SUSTAINABLE SOLUTIONS 2 8 SUPPLY CHAIN ENGAGEMENT 60 2020 VISION
94. re trends by carrying out innovative projects trialling new solutions and feeding into policies directly or indirectly through trade associations and professional bodies Identify key upcoming projects commissions Keep abreast of the latest solutions Approach opinion leaders with appropriate sustainable solutions Provide examples of how you have engaged with opinion leaders on sustainability issues for significant projects or commissions 6 SUSTAINABILITY 1 PROFITABLE MARKETS CLIENT ENGAGEMENT WORKING WITH CLIENTS TO DELIVER THEIR GOALS 2020 STRATEGIES VISION 15 Current and potential clients Offer clients options that INFLUENCING and investors recognise exceed their own CLIENTS Balfour Beatty as sustainability goals leading best practice in sustainable infrastructure Obtain structured feedback on sustainability performance from clients across the business 20 Pls 2015 MINIMUM 2015 EXPECTATIONS EXCELLENCE Percentage by value of 15 25 projects where clients have selected an enhanced sustainable solution offered by Balfour Beatty Percentage of clients that 30 90 would place Balfour Beatty in the top three sustainable businesses in their market sector 1 5 INFLUENCING CLIENTS THE USER GUIDE DEFINITIONS Sustainability goals are short medium and long term sustainability targets aspirations that the client may have articulated directly during the tender in conversatio
95. rket sector ENABLON SUBMISSIONS Enablon will allow the use of different metrics to be used in some circumstances e g versus It is programmed to use conversion factors and can for instance calculate tonnes of CO emissions from kWh electricity data for different countries Most of the Pls will be entered onto Enablon using an online template Each operating business has its own unique log in details AUDITS amp ASSURANCE As part of the ongoing Balfour Beatty Group audit programme Operating businesses will be audited annually externally or internally by another operating business or group against their progress against the 2020 Vision We will also need to carry out additional third party assurance visits as part of the assurance programme for the annual report However these might not involve all operating businesses Operating businesses will only be assessed on Pls and not the wider strategies APPLICATION IN JVS AND CONCESSIONS The Vision and Roadmap together with this User Guide will apply to those Joint Ventures and Concessions where Balfour Beatty has control i e where we have a controlling interest at Board level and or a 50 stake or above in the business In JVs where Balfour Beatty does not have control and no sustainability objectives exist we should endeavour to apply appropriate elements of the Roadmap As a minimum such JVs must carry out an annual assessment against the Roadmap EXCEPTIONS
96. rks that have not been certified would be disputed and not form part of these statistics The 30 days period is measured between the date on which payment is due and the date on which payment Is made and is based on the total number of invoices received not the value of the invoices in order to support small suppliers The term local will be defined by the client and in most cases relate to the vicinity of a project site Where this has not been defined or where there is not a direct client the operating business should determine what it classes as local which is typically but not invariably 50 miles 80km in Europe or 300 miles 480km in America Some local authority and central government contracts will stipulate metrics on inward investment and require evidence of local spend 2 9 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS CPI Invoices paid within 30 days of due date PI calculation Number of invoices paid within f Percentage 30 days of due date Total number invoices processed Evidence for audit Provide ageing report for invoices 2 9 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Suppliers by value sourced locally PI calculation Value of local spend Percentage Total value of invoices processed Evidence for audit Provide spend analysis reports on the value of orders placed with local suppliers or site data capturing local spend GOOD P
97. rove performance Understand in detail what our clients and stakeholders think of our sustainability performance through use of variety of communication channels including surveys panels and conversations and act positively on this feedback 29 SUSTAINABILITY 1 PROFITABLE MARKETS EFFICIENT DELIVERY TAKING A CONSISTENT AND FORWARD LOOKING APPROACH 2020 VISION 1 9 Balfour Beatty A CONSISTENT consistently sells the added value of arp sustainable thinking across all its markets 30 STRATEGIES Maintain a core offering incorporating sustainability deliverables for each market in which we participate Provide an array of added value sustainability offerings for each market Pls 2015 MINIMUM EXPECTATIONS Percentage of bids 50 Incorporating core sustainability offering Percentage of bids 10 Incorporating added value sustainability offering 2015 EXCELLENCE 100 00 THE USER GUIDE 1 9 A CONSISTENT APPROACH TO THE MARKET DEFINITIONS Core sustainability offering refers to a minimum set of sustainability criteria that will be incorporated into all bids These will be determined by the individual operating businesses but should cover each of the Roadmap areas i e profitable markets healthy communities and environmental limits They may vary by project size An added value sustainability offering is a bespoke sustainability solution that is offered to a client to
98. s to explore developmental opportunities through involvement in the Group s community engagement programme SUSTAINABILITY 2 HEALTHY COMMUNITIES COMMUNITIES WE SERVE IMPROVING THE QUALITY OF LIFE FOR INDIVIDUALS AND COMMUNITIES 2 11 EMPLOYING LOCALLY AND INVESTING IN SKILLS 70 2020 VISION Balfour Beatty is recognised as a leader in supporting sustainable communities through its investment in local skills STRATEGIES Provide resources training and skills to build capacity in local communities to support a more competitive and capability ensuringa workforce and provide legacy from our commercial activity sustainable employment opportunities Pls 2015 MINIMUM EXPECTATIONS Percentage of new 50 vacancies for jobs with Balfour Beatty that are advertised through local networks and media 2015 EXCELLENCE 70 THE USER GUIDE 2 11 EMPLOYING LOCALLY AND INVESTING IN SKILLS DEFINITIONS The term local will be defined by the client and in most cases relate to the vicinity of a project site Where this has not been defined or where there is not a direct client the operating business should determine what it classes as local which is typically but not invariably 50 miles 80km in Europe or 300 miles 480km in America The purpose of this section is to support the local community by offering employment opportunities apprenticeships graduate programmes internships pl
99. s varies from year to year so that we can take steps to reduce costs and emissions such as through early connections 71 6 SUSTAINABILITY 3 1 REDUCING SCOPE 1 AND 2 GREENHOUSE GAS EMISSIONS 3 1 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of business cases developed to reduce scope 1 and scope 2 emissions PI calculation Number of business cases Evidence for audit In order to achieve tangible CO e reductions each operating business Is expected to put forward at least two business cases for approval on an annual basis These will need to be in written format and demonstrate the return on investment of taking measures to reduce CO e Typically these would be presented to senior management team or Board for approval Although we would like as many business cases to be successful as possible the focus here is to ensure that robust business cases have been developed 78 GOOD PRACTICE The carbon management hierarchy avoid reduce replace offset is applied across our operations To achieve a minimum 50 normalised reduction in our scope 1 and 2 emissions will require a culture change in our current approach to energy management investment in energy efficient technologies controls and renewables For further guidance and ideas for developing ideas to reduce scope 1 and 2 emissions and for taking a systematic approach refer to the 121 Energy Saving Guide available from the Sustainabil
100. sions and develop an action plan for reducing these by December 2015 as a minimum The action plan must identify key tasks individuals and provide target dates by which these deliverables will be achieved Operating businesses certified to ISO 14001 can use the action plan as one of their environmental programmes Focus on those areas activities products or services which are the major users of energy Consideration should be given to grouping similar project types together Most large suppliers will already have a good understanding of the scope 1 and 2 emissions that form part of Balfour Beatty s scope 3 emissions 81 SUSTAINABILITY PI Business travel in tonnes CO e m revenue PI calculation Current Business travel scope 3 tonnes C0 e m revenue 2013 Baseline Business travel scope 3 tonnes C0 e m revenue Percentage 1 Evidence for audit Monthly travel reports from their appointed travel agents Claimed mileage data can be obtained from the Finance department Monitor monthly business travel CO emissions and ensure that a 1096 reduction is achieved against a 2013 baseline or earlier as a minimum Business travel is a subset of scope 3 and must not include scope 1 emissions 82 Develop an inventory of your key scope 3 emissions across your operating business s activities Run a workshop to identify likely scope 3 GHGs Consult subject matter specialists to identify and focus on the large
101. st scope 3 emissions that need to be quantified more accurately Request key suppliers to provide information on the embodied carbon of the products they supply such as concrete steel asphalt aggregate etc Where this information is not directly available use national databases such as the UK University of Bath s carbon inventory to determine the embodied carbon in products Work with Tier 1 suppliers to develop an action plan to reduce the embodied carbon as part of Objective 2 8 within products and services including labour purchased by Balfour Beatty Review the scope 1 nd 2 emissions of key suppliers and develop an action plan to reduce these e g by switching to a more fuel efficient taxi operator using refrigerants with a lower global warming potential on cooling systems opting for more energy efficient buildings when signing leases Work with landlords and other suppliers to reduce your scope 3 emissions e g working with the landlord to improve recycling provision or energy efficiency within the buildings that you rent but do not directly control Maximise the use of computer to computer conferencing e g WebEx LiveMeeting GoToMeeting telephone conferencing or video conferencing to reduce the number of face to face meetings and associated business travel costs and carbon emissions THE USER GUIDE 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS WASTE 2020 STRATEGIES Pls 2015 MINIMUM VISION EXPECTATIONS 33 B
102. st the overall spend 3 8 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of trials conducted of low impact materials per annum PI calculation Number of trials conducted Evidence for audit Demonstrate the number of low impact material trials that have been conducted providing details of the project benefits risks results and conclusions 101 102 TN A major materials used by your operating E E CD ro um usiness TEN all im j mu f ME TN T Mi i X Identify which parts of the material life cycle have the ii m Ti T mI UM greatest environmental impacts and where and how Timm renz aaRS B I THEE z Er T E interventions can be focused to bring about the biggest I TIT E environmental benefits This will require an assessment of the principal environmental impacts of materials Use simplified life cycle assessment methodologies for major categories of materials Do not undertake lengthy detailed and costly life cycle assessment LCA on every single material streamlined LCA approaches should examine impacts during raw material extraction processing manufacture transportation use and disposal recovery at end of use Environmental impacts that may be considered include energy use and CO emissions water waste depletion of non renewable resources toxicity hazardous materials content and other pollution impacts Collaborate within the business to devel
103. subjective and dependent on the client s perception Ideally we would like the client to compare the operating business s sustainability performance against potential competitors or the client s competitors 1 5 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS PI Value of projects where clients have selected an enhanced sustainable solution PI calculation Value of projects where clients have selected an enhanced sustainable solution Percentage Total value of projects Evidence for audit Collate a list of projects by value and identify those projects where an enhanced sustainability offering has been provided Calculate the percentage of projects by value where an enhanced sustainable solution has been offered 1 5 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS PI Clients that would place Balfour Beatty in the top three sustainable businesses in their market sector PI calculation Number of clients that would place BB in the top three sustainability businesses in their market sector Percentage Total number of clients Evidence for audit Collate feedback results and calculate the percentage of clients that would place Balfour Beatty in the top three sustainable businesses in their market sector 21 SUSTAINABILITY RANI ARTINIA renoene nol A lity a collective responsibility Review the client s sustainability goals Identify opportunities on how these could be met and improv
104. t under our financial control Provide at least quarterly comparisons of year on year direct water consumption and Enablon reporting data Provide at least quarterly comparisons of year on year direct water consumption Normalise water consumption data against m revenue GOOD PRACTICE Ensure water meters are in place to capture direct water consumption Monitor direct water consumption from facilities and sites including offices depots construction sites warehouse and factories on a regular basis Compare year on year water consumption against m revenue Identify opportunities where water can be saved An audit or survey of how water is being used might be required Identify opportunities to reduce consumption and record progress e g detecting and repairing water leaks capturing rainwater for reuse collecting grey water for reuse installing water efficient plant appliances and processes reducing water pressure flow and desalination of salt water for use Eliminate the use of bottled water and use plumbed in water filtration systems as an alternative Demonstrate how water savings have been achieved e g water awareness campaigns water saving technologies solutions and process changes 95 6 SUSTAINABILITY 3 ENVIRONMENTAL LIMITS WATER 3 7 REDUCING INDIRECT WATER USE 96 2020 VISION Balfour Beatty works with its supply chain to lead and innovate in new technologies to re
105. tenders The case studies should demonstrate the clear financial and sustainability benefits of the different products Use the case studies to develop a core sustainability offer for all products and services Provide the client with incisive management information in support of the most sustainable solution educating delivery teams as well as client teams whilst ensuring we take a leading position Remember sustainable solutions cover positive social impacts as well as environmental considerations delivering long lasting products and services now and into the future Whole life cycle costing approaches should be used to demonstrate value over the project life SUSTAINABILITY 1 PROFITABLE MARKETS EFFICIENT DELIVERY TAKING A CONSISTENT AND FORWARD LOOKING APPROACH 2020 STRATEGIES VISION 1 10 Balfour Beatty has a Measure and report GOVERNANCE clear and effective sustainability KPls to process for embedding the board leadership sustainability across all team on a quarterly aspects of its business basis 32 Pls 2015 MINIMUM EXPECTATIONS Percentage of quarterly 50 reports submitted to the board of the operating business incorporating sustainability KPls 2015 EXCELLENCE 100 1 10 GOVERNANCE THE USER GUIDE DEFINITIONS Sustainability Pls include progress against the Roadmap Objectives as well as more project specific measures such as the value of contracts placed with local suppliers or the
106. the next available baseline year e g 2011 and document this All baselines are for calendar years and link to the Enablon reporting year i e 1 January to 31 December The time period over which performance metrics should be compared is also on a calendar year basis e g the minimum expectation for December 2015 is that six articles are published promoting Balfour Beatty s sustainability offering We would therefore expect the six articles to only cover the last 12 months i e the whole of 2015 Where percentages are involved the figures will be based on the most recent data at the time of the audit For instance the 2015 expectation for December 2015 is that 20 of senior leadership positions are held by women The auditor would review the percentage of senior leadership positions held by women at the time of the audit and not over previous months Most targets are normalised against sales revenue e g tonnes of CO or m of water per m sales to cater for growth in the business Roadmap Objectives for 2012 2015 and future dates are only closed off once they have been completed Where operating businesses are unable to complete an objective for reasons outside of their control they must notify BB Group Where an operating business states that the Roadmap is complete we expect that all Roadmap expectations have been met BOUNDARIES Unless explicitly stated such as in scope 3 emissions or indirect water use operating bus
107. ting businesses and retain an audit trail to demonstrate to any auditor how the numbers are arrived at Operating businesses will be assessed againstthese achievement criteria It is therefore essential that each business sets up systems early on to collate the relevant evidence We expectthat evidence is retained for every element of the Roadmap and thatthere is a clear audit trail which links source evidence to the reported data explaining any assumptions calculations estimations etc Where possible we recommend the data to be held centrally to make audits easier Where calculations are required e g for determining percentages please record both the calculations themselves and the source of information so auditors can trace the numbers from source to reported data For annual calculations please use the Enablon reporting timeframes and calculate the data at least Once a year Operating businesses certified to ISO 14001 may wantto use procedures or process flow diagrams to ensure that there is clear documentation of the processes followed This not only helps build resilience in the systems but also allows the auditors to see easily how the calculations are performed In some cases when collating the data a sampling approach may be warranted However it should be used as a last resort When preparing the evidence you need to bear in mind that the auditors will have to use a sampling methodology that will use a different sample If th
108. typically entered into to protect intellectual property rights recover design and development costs and distribute profits fairly 1 1 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of industry leading or technical bodies on which Balfour Beatty is represented by members of the operating business PI calculation Number of representations Evidence for audit Provide copies of minutes reports or online documentation that makes reference to individuals within the operating business being represented on industry leading or technical bodies Provide examples of what the operating business s contribution to the industry leading or technical body has been within the last 12 months 1 1 2 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of formal alliances that exist for the purpose of bringing more sustainable solutions to market PI calculation Number of formal alliances Evidence for audit Provide copies of the terms of reference or contract for each formal alliance that the operating business enters into Provide examples of the benefits that have been gained by entering into formal alliances These do not need to be new formal alliances as some operating businesses have already taken the initiative to engage third parties 6 SUSTAINABILITY 1 1 INFLUENCING THE MARKET GOOD PRACTICE Identify industry leading or technical bodies within your sector Consider which of these
109. we have been able to achieve through our new street lighting offer When making claims ensure that they follow Defra s green claims code or equivalents such as the US Federal Trade Commission s Green Guide Defra s green claims code sets the following tests for green claims e Do you have a clear idea of the main sustainability impacts of your product service or organisation els the claim relevant to these impacts and or your business and consumer interests Does the claim convey additional benefits to what is already happening or is required e f performance is compared to others on the market is the comparison fair and meaningful Is the basis for comparison clear els the claim a truthful and accurate representation of the scale of the environmental benefit or what is likely to happen in practice e Are the scope and boundaries of the claim clear Does it use plain language that is not vague or ambiguous or jargon that may be misunderstood e s the amount and type of supporting information clear and appropriate e s all imagery i e symbols pictures or labels relevant to the claim and not likely to be misinterpreted e s the evidence to substantiate a claim clear and robust or is there uncertainty Has it been tested using the most appropriate standard methods e Can claims of aspirations of future sustainability performance be substantiated by evidence and action e Can the information to substanti
110. y performance transparently Typical clients for Balfour Beatty that meet these requirements are national and regional government transportation bodies and national infrastructure operators Organisations that spend money on sustainability branding and that sponsor events are not necessarily opinion leaders Significant projects commissions refers to projects with values above the operating business s median project value Key markets are defined as professional services infrastructure investments support services and construction services 1 4 1 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Number of significant projects commissions for sustainability opinion leaders per annum PI calculation Number of significant projects commissions for sustainability opinion leaders Evidence for audit Provide examples of successful significant projects commissions where we have won work for sustainability opinion leaders These may be opinion leaders that the operating business Is already trading with GOOD PRACTICE Identify the sustainability trends within sectors and communicate across the Group to shape the way we work to match our future expectations Identify trends and act positively by tracking industry sector expectations directions and new developments In order to Identify key opinion leaders Ensure the operating business s continuous improvement programme is current Influence futu
111. y statistics and board reports of the number of fatalities 2 2 3 CALCULATION METHODOLOGY AND EVIDENCE REQUIREMENTS Pl Permanent disabling injuries PI calculation Number of permanent disabling injuries Evidence for audit Monthly statistics and board reports of the number of Permanent disabling injuries 41 SUSTAINABILITY Pl Injuries to members of the public PI calculation Number of injuries to members of the public Evidence for audit Monthly statistics and board reports of the number of Injuries to members of the public Pl Long term harm to health PI calculation Number of new cases of work related ill health classified with level 3 4 or 5 health consequences Evidence for audit Monthly statistics and board reports on IHFR Demonstrate examples of successful safety initiatives 42 Record all major injuries over three day injuries fatalities permanently disabling injuries and injuries to members of the public Share and benchmark our performance with competitors and suppliers Continue to implement Balfour Beatty s Zero Harm programme by running initiatives to minimise accidents through preventative action Make our commitment to Zero Harm highly visible Resist all pressure to compromise safety at any stage of the project Insist on excellence stay mindful Do nottolerate unsafe behaviour short cuts or unplanned work and support those who challenge these things Hold to account th

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