Allison Homes ESG Strategy

ESG STRATEGY 2024

CREATING GREAT PLACES TO LIVE

At Allison, we’re about building great communities and great relationships. Our focus is always about the customer, about teamwork, about pride and trust, about sustainability and biodiversity and creating great places to live.

COMMENTS FROM THE CEO

At Allison Homes, we embrace our ESG responsibilities as a home builder – to our customers, our communities, our partners and our people. And we mark our success by our ability to deliver on our obligations and promises.

Today, the importance of a clear approach to ESG has never been more apparent. Alongside a nationwide need for new, well designed, quality homes, there is a need for a more sustainable and considered approach to how we identify, plan, build and maintain them.

For our customers, this means delivering energy-efficient homes and actively promoting the use of responsible sourced and sustainable materials whilst, creating communities that support biodiversity and improve the local environment.

In our local communities, this means giving back - which is at the heart of all that we do. By supporting charities and local causes, both big and small, we can make a difference in the neighbourhoods we serve.

And for our people, it means governance that makes them feel valued, trusted and driven to succeed, ensuring we acquire and retain the best talent– giving them paths to grow, innovate and improve in their careers.

We have ambitions to grow as a business through multi tenure communities including much-needed affordable homes. Our mission is clear, to build long lasting communities with high quality sustainable developments using innovative technology and construction methods, delivered to exceed our customers’ expectations.

Our commitment to an ESG plan will help us deliver this mission and showcase the transparency and trust we aim to provide to our people, customers, and partners.

This is our ESG Strategy

JOHN ANDERSON Group Chief Executive

ABOUT ALLISON HOMES

Allison Homes is all about building great communities and great relationships. As an established and respected housebuilder, this is something we’ve been doing for over 30 years.

It means forging real and lasting relationships with our suppliers, partners, and the communities in which we build. It means we truly care about the needs and wants of our customers, so that we can be proud about creating quality homes and places to live that stand the test of time.

It means delivering on our promises.

INTRODUCTION TO OUR ESG STRATEGY

The Allison Homes ESG Strategy communicates how we aim to deliver Environmental, Social and Governance solutions throughout our business, sites, and homes in the next 5-10 years. The strategy is split into 3 key sections of influence:

ENVIRONMENTAL

We aim to influence our planet by protecting our resources, supporting climate action, and enhancing biodiversity.

SOCIAL

We aim to influence people by prioritising health, wellbeing, safety, and welfare, and ensuring that no one gets left behind.

GOVERNANCE

We aim to influence decision-making through robust management and transparency.

WHERE OUR ESG STRATEGY SITS

ALLISON PARTNERSHIPS

ALLISON HOMES EAST

ALLISON HOMES SOUTH WEST

ALLISON HOMES GROUP

ESG STRATEGY 2024

ALLISON HOMES ESG COMMITTEE

ALLISON HOMES EAST MIDLANDS

OUR ESG FRAMEWORK

We have several areas that we hope to influence within each Environmental, Social and Governance topic. Targeting our influence in these areas will enable us to identify specific aspects to measure and monitor, that will enable us to work towards setting, and therefore meeting more specific ESG targets over the next 5 years and beyond.

AREAS WE HOPE TO INFLUENCE

Our Business Management & Policies

Resources & Climate

ENVIRONMENT

Our Homes Business Design Standards

Energy & Climate

Biodiversity

Materials & Waste

Water

Transport

Our Business Safety

Health & Wellbeing

Employee Welfare

Philanthropy

SOCIAL

GOVERNANCE

Our Homes Supply Chain

Safety

Health & Wellbeing

Customer and Community Engagement

Development & Inclusion

Our Business & Homes Management

Reporting

Verification

Future Proofing

Track Record

HOW WE EXPECT TO MEASURE OUR PERFORMANCE

Energy Consumed

Waste Generated

Water Consumed

Employee Transport

GHG Emissions

EPC Ratings

Biodiversity Net Gain

No. of Environmental Product Declarations

% Materials Responsibly Sourced

% Satisfied Employees

No. of Trainings Provided

Health & Safety Certifications

Monetary Donations

No. of SMEs Supported

No. of Apprenticeships

% Affordable Homes Created

Annual Injury Incidence Rates

% Satisfied Customers

Amount of Public Space Created

ESG Incentives

No. of Homes Built

No. of Policies Created

Targets Achieved

% Post-Occupancy Surveys Completed

Reporting Disclosures Completed

MODERN, ENERGYEFFICIENT HOMES.

We take great care in the design of our homes and in hand-picking sites for development, because we know that finding the right home in the right location can be both life-changing and life-enhancing.

THE SUSTAINABLE DEVELOPMENT GOALS

Allison Homes aims to align its business and activities with the United Nations Sustainable Development Goals (SDGs). Throughout our Environmental, Social and Governance targets we have identified key SDGs which we want to support through our operations and developments. This helps us to develop a sustainability vision and ESG strategy that aligns with best-in-class sustainability targets designed to create a better world. Our targets seek to support the following SDGs*:

OUR TARGETS: ENVIRONMENT

Climate change is having a devastating impact on fragile ecosystems and economies across the globe. To ensure we actively understand and aim to mitigate our impact, we plan to develop and implement a detailed ESG data capture process throughout our business activities. Once implemented, we will be able to benchmark our emissions, and set reduction targets against an industry leading thirdparty benchmark, to improve our environmental performance year on year.

FOCUS AREA

Management & Policies

WHAT WE DO TODAY

We have an ESG Committee. We share environmental initiatives and information to our colleagues.

OUR BUSINESS

Resources & Climate

We collect data related to our leased company cars, electricity consumption and business travel to calculate our Scope 1 and 2 greenhouse gas emissions under the Streamlined Energy and Carbon Reporting Requirement (SECR) process.

OUR FUTURE TARGETS

Our ESG Committee aim to meet quarterly to monitor our ESG policies, strategy, and targets.

Implement a robust environmental management system to improve environmental performance across our business operations.

Where possible to influence, adopt a Renewable Energy Guarantee of Origin (REGO) certificate for our offices’ energy supply.

Consider implementing a cycle to work scheme to reduce colleague transport emissions.

Use eco-paper when printing is necessary.

Create and implement a detailed ESG data capture process through all business activities by 2025. Once created, set specific environmental reduction targets for each resource and area of the business.

Research and identify the most appropriate third party benchmark to adopt, to measure and reduce our greenhouse gas emissions against by 2025.

Once data capture infrastructure is setup and third party benchmark adopted, consider developing a detailed Net Zero Roadmap for the business, identifying key emissions reduction strategies within defined target timescales.

Develop and implement a recycling and waste strategy within our offices.

Create a policy to ban single use plastics in our offices.

Building Design Standards

Energy & Climate

All our new homes have an EPC rating of A or B. We consider the application of sustainable design features including:

-Energy efficient boilers

-Thermostatic radiator valves

-LED lights

-Wiring for EV charger points

Our homes are aligned with the Chartered Institute of Building Services Engineers (CIBSE) TM59 overheating requirements.

We consider the application of sustainable design features including:

-Energy efficient boilers

-Thermostatic radiator valves

-LED lights

-Wiring for EV charger points

100% of new homes to meet the Future Homes Standards requirements from 2025 in line with UK requirements.

Seek to complete a physical climate risk analysis prior to acquisition of a new site, identifying potential short and long term insurance risks to be considered in potential designs.

Report the average energy use intensity and space heating demand in as many homes as possible once the correct data collection infrastructure is set up.

Consider moving towards modern methods of construction.

Where permission is granted, monitor annual energy consumption and renewable energy generation in new homes.

Biodiversity

Materials & Waste

Where gardens are provided, residents are encouraged to enhace their outdoor ecosystems post-occupancy.

We introduce hedgehog highways, bird and bat boxes where possible.

We are committed to preventing pollution through reducing waste and ensuring the efficient use of materials, as well as using sustainable, reusable or recyclable products when possible.

Waste management policies are in place during construction across all our sites.

We procure 100% of FSC certified or sustainably sourced timber.

Water We ensure efficient use of water and energy.

We collect information on the average l/p/d water consumption for our homes designed in the past year.

Transport We seek to acquire housing development sites close to key amenities and public transport modes.

In new homes and estates, target a biodiversity net gain of 10% across developments maintained for the next 30 years.

Prioritise brownfield sites during construction, to minimise biodiversity impact.

Have the infrastructure in place to report the % of construction materials that are responsibly sourced in future.

Monitor and audit 100% of waste during construction.

Achieve 95% of waste diverted from landfill during construction from the end of 2025.

Ban single use plastics on site after 2025.

Challenge our supply chain to provide environmental product declarations for at least 50% by cost from 2025, encouraging them to select products with a lower carbon intensity.

Provide facilities in homes for at least 3 waste streams (landfill, recycling and organic).

Develop and implement a sustainable procurement policy.

Implement monitoring systems to measure water consumption of our homes.

Aim to achieve 100 l/p/d water consumption or less through design of our new homes, with a target of 75 using low flow fixtures.

Implement rainwater harvesting where possible. Consider wastewater heat recovery for all future properties.

Where possible, provide room for at least 1 bicycle storage space for each property, (or for 50% of residents in community sites) within 100ft walk distance from the home.

Where parking is provided, supply charging points for electric vehicles to encourage emission-free transport.

QUALITY HOMES BUILT ON KINDNESS AND COMMUNITY

OUR TARGETS: SOCIAL

At Allison Homes, we believe that social value comes from decision making that is centred on people’s needs, aspirations, and potential. We promote our colleagues’ welfare and work with communities and our supply chain to try and enhance inclusion, and socio-economic development.

Homes provide a sense of safety, belonging and stability which enable people to thrive. We actively work with our partners to provide affordable housing that maximise value.

OUR BUSINESS

FOCUS AREA

Safety

Health & Wellbeing

WHAT WE DO TODAY

Our site employees regularly receive health and safety training and awareness.

Our Mental Health & Wellbeing committee meet monthly to formulate our Wellbeing Strategy and arrange training and awareness initiatives.

OUR FUTURE TARGETS

Investigate becoming OHSAS 18001 or ISO 45001 certified.

Integrate health and wellbeing metrics into our annual employee survey.

OUR HOMES

Employee Welfare

Philanthropy

Supply Chain

Safety

We issue an Employee Engagement survey once per year, gathering key insights to inform policy and management decisions across the business.

93% of our employees said that they are motivated to do their best work.

82% of employees said that they were treated fairly, equally and with respect at work.

We provide career development and training opportunities for all employees.

Our General Team Committee provide employee support to all our colleagues.

We have an anonymous complaints and question process for colleagues to provide honest feedback.

Annual pay reviews are provided, benchmarked against industry.

We pay living wage as a minimum.

We reward excellence when teams or individuals have excelled with results.

We have policies in place to fully support people when they are suffering.

We have a diversity, inclusion and equity policy that provides equal opportunities in recruitment, training, and promotion.

Over the last 24 months, we donated more than £150,000 to local charities and community groups.

In 2023, we celebrated pride month and donated £2,000 to 4 LGBTQ+ charities.

We regularly donate furniture from our show homes to the British Heart Foundation.

We provide storytelling sessions to local Primary Schools for World Book Day, and are partnered with the Lighthouse Construction Industry Charity.

Our new division Allison Partnerships has committed to donating £100 for every home contracted through a partnership scheme to a local charity, targeting £200,000 in donations by 2027.

We work with leading local supply chain partner businesses, promoting local economic and employment opportunities.

The Health and Safety Management Team provide advice, knowledge, stability, and a continuous commitment to safety on every site.

The Site Management Team carry out daily Health and Safety Audits and inspections, and act upon and report any unsafe acts or conditions.

Our Health and Safety management system in line with ISO 45001 is externally audited.

Directors conduct site inspections and spot checks to ensure maximum safety.

We monitor monthly and annual injury incidence and fatality rates.

Monitor employee statistics including ethnicity and gender, with the aim of reporting diversity and inclusion within our organisation.

Introduce a philanthropy policy, that considers allowing colleagues to take a day off to volunteer at their chosen charity.

Continue to record and report philanthropic benefits, including financial donations as well as any time spent volunteering.

Create an ESG pre-qualification questionnaire for suppliers, that requires them to identify their ESG policies and disclose the performance they have achieved.

Aim to consistently reduce annual injury incidence rates.

Health & Wellbeing

Community & Customer Engagement

Where possible, our homes are located close to amenities and greenspaces to encourage relaxation, recreation, and physical activity.

Natural daylight and thermal and acoustic comfort are prioritised in our homes.

Almost all our homes have gardens, improving opportunities for rest, gardening, and social interaction.

We focus on internal and external air quality, limiting VOCs from paints, furnishing and any architectural and interior products.

All electronic products provided in homes are RoHS compliant.

89% of our home buyers were happy to recommend Allison Homes to family & friends.

Design of homes is driven by customer engagement, providing functional and desirable homes.

Our dedicated Aftercare service team helps customers with home issues.

Customers receive user guides and care packages, including information on energy savings, water use, waste and recycling, urban drainage systems, sustainable procurement, and emergency information.

Our Customer Liaison Service website allows us to engage with residents and keep them informed at all stages of their home journey.

Publicly available feedback and complaints policies are in place for receiving and acting on customer feedback.

In the last year, we provided over £2,000,000 of community infrastructure and around 50,000 SQM of public open space for communities and residents.

We engage with communities in 100% of our developments during the planning stage to minimise adverse impacts.

We are working on a placemaking strategy.

Our locations are carefully selected, to encourage integration with existing communities.

Development & Inclusion

We delivered 600 homes in the last financial year, of which almost 40% were affordable housing.

We continue to partner with not-for-profit housing associations to increase affordable housing across the country.

We naturally seek out ways to improve socio-economic sustainability of our homes during the planning process by engaging local communities.

Energy saving and water saving technologies are part of the home to reduce household bills of residents.

Over the last two years, we supported 18 apprentices through their early career through our Apprentice Programme and have partnered with education groups, providing education and knowledge to individuals.

We take inspiration from local heritage, culture and communities for our home design.

Aim to conduct air quality impact assessments that consider the lifecycle of developments.

Consider implementing air quality monitors that measure CO2, temperature and humidity, with capacity to monitor additional parameters if required in future.

Look into providing optional mental health training to all employees.

Become a certified living wage employer.

Analyse local deprivation data to identify design and operational strategies and further influence wider community health outcomes.

We will apply placemaking principles to enhance communities.

Implement a Living Wage policy for our Supply Chain partners, and encourage all supply chain partners to become Living Wage accredited.

Commence measuring and reporting the social value benefits of our activities, identifying the economic and employment opportunities we create for local communities.

OUR TARGETS: GOVERNANCE

Governance is about how we aim to embed our ESG Framework and Strategy into and across our business operations to provide trust, quality, and transparency to our customers, investors, and partners.

FOCUS AREA

WHAT WE DO TODAY

Management We are founded upon the Allison Family Values, providing six core principles which underpin our company culture. The company was recently rebranded Allison Homes, unifying all communication, marketing and branding guidelines.

We have reinvested significantly in our operations and team structures, recently launching our new East Midlands region and completing key senior team appointments to enhance our skills, experience and growth capabilities.

Our Governance Board oversee the development, review and implementation of all company policies and targets.

Our regional boards provide strategic insight between each region and our Governance Board.

We have a detailed, robust Ethics and Integrity Policy. We have a Disciplinary Policy and do not tolerate Gross Misconduct.

Our employees have access to all company policies and are informed of updates and can provide feedback to improve them.

OUR FUTURE TARGETS

Define specific employee responsibilities in relation to achieving our ESG targets.

Reporting

We publish an annual Allison Homes report available for the public and all stakeholders.

OUR BUSINESS & HOMES

Verification

Track Record

Directors conduct spot checks to ensure quality controls are achieved, including assessing whether environment and social targets are upheld.

We follow the quality-build process of the National Housebuilding Council (NHBC) to ensure quality building standards across all our homes are adhered to.

We have rigorous quality control processes through construction, snagging and handover to ensure quality.

Awarded an In-House Gold Award for achieving 94% Customer Satisfaction in 2022.

We are known for delivering high-quality affordable housing for first-time buyers as well as large, executive homes.

In challenging conditions, we successfully increased the number of homes built in the 2022/2023 financial year by 13% and delivered 326 affordable homes.

We have recently launched our new division Allison Partnerships, dedicated to delivering high-quality affordable homes to other private, rented and affordable housing providers and build-to-rent companies, so our homes can be available to all parts of the market.

We received ‘Highly Commended’ Award for The Large Apprentice Employer of the Year at The Peterborough Telegraph Apprentice Awards 2023.

We received the ‘Highly Commended’ Award for The Construction Apprentice of the Year at The Peterborough Telegraph Apprentice Awards 2023.

Received a ‘Site Recognition’ Award by the LABC in 2023 for our Harriers Rest development in Wittering, Cambridgeshire.

Our site manager Michael Ramsey won a Pride in Job award for quality housebuilding at the 2023 NHBC (National House Building Council) Pride in the Job Quality Awards.

In 2024 our Construction Manager Paul Vasey received LABC Warranty’s prestigious National Site Manager of the Year Award, for our Harriers Rest development.

Make our ESG Strategy publicly available.

Publish our first annual ESG Report, communicating the progress of our activities against our commitments and targets.

Align our processes with the Next Generation Sustainability Benchmark and if beneficial, consider possible membership and submission in the future.

Integrate our ESG performance into our annual company report.

Assess sustainability knowledge requirements and develop suitable sustainability training.

Continue to research and integrate ESG policy drivers into our business and operations in line with new legislation.

Conduct and report post-occupancy evaluation from 2025 on at least 10% of our new homes (with the aim of 25%) to assess at a minimum, energy, overheating and air quality against design intent.

Continue to record our house building statistics and awards won through the delivery of our homes.

THE BENCHMARKS

WE ADOPT

Benchmarking against industry best practice and using leading reporting standards will help us to define ambitious targets both in our business and homes. We aim to use these guidelines and reporting initiatives throughout our ESG journey:

HEAD OFFICE

Allison Homes Group Limited

Fleet House

Cygnet Park

Hampton

Peterborough

PE7 8FD www.allison-homes.co.uk

East Region

South West Region

East Midlands Region

Allison Partnerships