Everyone’s talking sustainability… MITIE Group PLC Sustainability Summary 2011
Introduction
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When some companies talk about sustainability, it can feel like a bit of an afterthought. We’ve always believed that doing the right thing has created financial value for the company. To be sure that we’re working on the things that can make a real difference, we’ve developed an approach that directly links our sustainable business agenda with the strategic issues that make our business successful. In doing so, we’re defining what it means to be a sustainable business… …and I’m committed to making this happen. Ruby McGregor-Smith Chief Executive
Our approach to Sustainability
“ We’re taking a new approach…” Everyone expects more of companies now – higher standards of business ethics, more attention to social issues like fairness in the workforce, and real evidence of a commitment to tackling climate change. This is a challenge, there’s no doubt about that, but it’s one that MITIE is more than ready to meet. We’ve always believed that a more sustainable business is a better business, and we have plenty to show for that in terms of what we’ve achieved. Our environmental impacts have been reduced, as has our use of energy and water. We’ve helped bring about big improvements in the sustainability standards of our supply chain, and initiated genuinely valuable and multi award-winning community projects like the Real Apprentice programme. And we’ve developed the single biggest competitive advantage we have – our own people – by creating some of the best training programmes you’ll find anywhere in our industry. All of this is good – but we know we can do better. That’s what the new approach is all about.
We’ve been working with the Sustainability team at PricewaterhouseCoopers to benchmark what we’ve done in the past, identify where we could improve, and establish our new strategy for the future.
So what’s the big idea? From now on, sustainability won’t be just one aspect of the way we work at MITIE, but part of every decision we make. It’ll affect how we work with clients and how we select suppliers. It’ll guide us in our choice of technology, and the way we heat, light and power our buildings and, of course, fuel our vehicle fleet. It’ll underpin the work we do in the community, and the care we take to keep our employees safe. And – perhaps most important of all – it’ll be at the heart of a range of leading-edge products and services that make money for us, while helping our clients become more sustainable organisations themselves. From now on, our sustainability principles are going to be directly linked to our commercial priorities, so that the two become a virtuous circle. In other words, everything we do to make MITIE a more successful business should also help make it a more sustainable one – and vice versa.
2—3
“ MITIE’s success over the past 23 years has largely been the result of operating in a sustainable way and thinking about the long-term impacts of what we do. We’re committed to carrying on in the same way.” “ John Telling Group Corporate Affairs Director
“ With sustainability at the core of our strategy, we can strengthen MITIE’s reputation for being a great company to work for and with even further – helping to create more value for each and every one of our stakeholders.” “ Tori James Group Marketing and Sustainability Director
What does it mean in practice? MITIE now has six new focus areas for sustainability – each one clearly linked to our business strategy. Each has clear objectives, and clear targets so we can track our progress over time. Acquisitions, our seventh corporate strategy driver, has not been incorporated as a separate area of focus since the necessary sustainability considerations are carried out as standard during due diligence, and the relevant performance measures applied post integration. This approach means we can focus our energies on what matters most, and where we can make the biggest difference.
Looking after our clients properly
Operating our contracts smarter
Underpinning our group strategy:
Underpinning our group strategy:
Clients
Operational efficiency
4—5
Using fewer natural resources
6—7
Doing more for our clients with less, wherever they are in the world
Underpinning our group strategy:
Responsibility
Underpinning our group strategy:
8—9
New markets
10—11
Nurturing our people’s talents
Enabling our people to work safe, and go home safe
Underpinning our group strategy:
Underpinning our group strategy:
People
Risk
12—13 Turn the page to look at each of these in turn…
14—15
Looking after our clients properly
“ MITIE’s Facilities Management Skills Centres provide students with a valuable opportunity to combine class-based learning and practical work experience and obtain a newly accredited vocational qualification in Facilities Services at the same time. I’m committed to ensuring that a multi-service network of MITIE mentors is in place to support the students, enabling them to develop their potential and employability skills, which not only fulfils sustainable future workforce requirements, but also benefits our client relationships too.” “ Stephen Barthorpe Group Corporate Responsibility Manager
“ We’re committed to looking after our clients properly… Martyn Freeman Managing Director – Facilities Management
4—5
“ The Real Apprentice programme is a perfect example of how MITIE nurtures its relationships with clients. Entering into enriching partnerships with customers is at the heart of what we do. In this case it’s to give back to the communities in which we operate, creating opportunities for local unemployed talent, whatever their background and personal circumstances.” “ Jane James Employment Regeneration Director
“ The role businesses play in improving the employability skills of people facing barriers to work is essential. It has a huge impact on the lives of the individuals, their families, their communities and society as a whole. We’re committed to recognising the wonderful contributions of businesses and the millions of volunteers from across Europe by delivering the first European Employee Volunteering Awards and rewarding businesses like MITIE for their strength in this area.” “ Sue Adkins International Director, Business in the Community
…because that builds better partnerships, makes us more profitable, and delivers what our customers want.” We’ve built our success on the quality of our service, and that will never change. What is changing is what our clients need from us, and the everincreasing number of ways we can respond to those needs and put our know-how to work to help them. There’s no more obvious example of this than our pioneering and award-winning Real Apprentice programme: where we have not only reached into the communities in which we work together with our clients to create opportunities for local unemployed talent, but we’ve also entered into an enriching longer term relationship. Looking after our clients properly underpins the following part of our group strategy: Clients | Operational efficiency | Responsibility | New markets | People | Risk | Acquisitions
Operating our contracts smarter
“ Our flexibility as an outsourcer not only allows us to work with our clients to identify best practice, but also to establish the most environmentally preferable option when it comes to managing waste sustainably. I’m committed to ensuring that we continue to develop commercial models, which align us and our clients with the waste hierarchy to ultimately reduce the production of waste at source.” “ Michael Taylor Managing Director – Waste and Environmental Services
“ Energy and sustainability KPIs are targeted through a dynamic sharedsavings CarbonCare business model that encourages a perpetual drive for ongoing savings. Over the term of the nine-year contract MITIE is committed to a goal of year-on-year energy reduction – currently the target being 10%. So far savings have exceeded £250,000.” “ Jonathan Lovejoy Director, Property Management, Capita Symonds
“ Our supply base is a natural extension of us, so we need to share learning and experiences with each other. One common area for all supply partners is sustainability. We are committed to developing and assisting our supply chain to come on the MITIE sustainability journey.” “ Romeo Effs Group Supply Chain Manager
6—7
“ Lean Six Sigma promotes and creates an operational and cultural environment that is highly conducive to waste reduction, pollution prevention and sustainability. It’s all about better use of resources to generate less chemical and energy usage and less wasted activity per contract. I’m committed to raising awareness of the importance of environmental issues. We all have an exciting opportunity to leverage Lean Environment processes to be smarter, greener and save money too.” “ Jon Lightowler Director, Lean environment, Facilities Management
“ We’re committed to operating our contracts smarter… Martin Holt Managing Director – Technical Facilities Management
…because that makes us more productive, which in turn makes us more sustainable, and puts the influence we have on our supply chain to work in a positive way.” We’re promoting more efficient and sustainable business practices across our whole business, and encouraging the firms in our supply chain to follow our example. We want all our suppliers to have the same high sustainability standards we do, and we’re prepared to put our own expertise and experience to work to help them do that. Operating our contracts smarter underpins the following part of our group strategy: Clients | Operational efficiency | Responsibility | New markets | People | Risk | Acquisitions
Using fewer natural resources
“ We’re committed to using fewer natural resources… Lynda Simmons Group Sustainability Manager
“ When we use less energy we not only cut our greenhouse gases (GHG) emissions, but we also save money. For carbon you should read ‘cash’. Using fewer natural resources touches more than just the sustainability agenda. It’s fundamentally a sound, economic business model in its own right.” “ Mike Sewell CarbonCare Director
“ We consistently monitor the vehicle market and the choices available to meet the needs of the environment and the demands of the business. I’m committed to developing our focus on the use of hybrid, electric and low emissions vehicles to decrease our CO2 emissions throughout our vehicle fleet and to ensure that we use the most innovative technologies to track our vehicles. By managing our fuel volumes and positively influencing our driver behaviour we’ll decrease our impact on the environment.” “ Justin Patterson Group Fleet Manager
8—9
“ I’m committed to putting a robust system in place to collect the data and identify the areas we need to focus on to reduce this impact and to investing time educating our people to use less energy and create less waste. We can’t rely solely on technology and plant – behavioural change is equally important.” “ Andrew Windsor Group Property Manager
…because that helps tackle climate change, and gives us valuable environmental expertise we can pass on to our clients.” If there’s one area where we can make a real difference to sustainability, then this is surely it. We know what we need to do to improve our environmental performance: by continuing to challenge our own culture we’ll cut our use of energy and transport fuel, reduce our carbon emissions, and create less waste. We also want to limit carbon by using more low, no-emission and hybrid vehicles in our fleet, and by helping our supply chain to drive out waste in manufacturing, transportation and packaging. Using fewer natural resources underpins the following part of our group strategy: Clients | Operational efficiency | Responsibility | New markets | People | Risk | Acquisitions
Doing more for our clients with less, wherever they are in the world “ We facilitate funding from energy companies into energy saving measures for public buildings and social housing to ensure clients can maximise the impact of their capital funds. I’m committed to ensuring that behavioural change is as much a focus as the innovative technologies that we install.” “ Peter Griffin Energy Services Director
“ MITIE is working with us to provide decentralised community energy to over 1,200 homes. This will provide cheaper and greener energy, reducing fuel poverty and delivering tangible economic benefits to the Cardenden area.” “ Nicholas Clark Business Development Manager, Ore Valley Housing Association
“ I’m committed to developing highly efficient, low-carbon energy centres that generate power and heat for private and public sector organisations. This viable and proven alternative to grid supplies takes sustainability beyond simple cost and carbon savings. It offers more energy security and greater price certainty for less capital outlay, with guaranteed availability and performance over terms of 10 or 15 years. We can connect our customers to their local communities, providing surplus energy that enables everyone to share in the real benefits, and potentially making a significant impact on fuel poverty in the surrounding area.” “ Mike Tivey Managing Director – Asset Management
10—11
“ We’re committed to doing more for our clients with less, wherever they are in the world… Jeff Flanagan Group Corporate Development Director
…because our range of sustainability products and services will be one of our biggest competitive advantages going forwards, in the UK and abroad.” No-one else has better or more innovative low carbon technologies than we do, can match our expertise, or can offer as many environmental services together in one place. Which means we’re best placed to help our clients cut costs, use fewer resources, and become more sustainable as we grow our own business at the same time. We don’t like jargon, but this really is win-win. Doing more for our clients with less, wherever they are in the world underpins the following part of our group strategy: Clients | Operational efficiency | Responsibility | New markets | People | Risk | Acquisitions
Nurturing our people’s talents
“ By nurturing talent, our people and their passion differentiate us from our peers and help us outperform them. I’m committed to creating an environment in which individuals are valued and talent is exposed, nourished and allowed to flourish, making MITIE and its people fit for the future.” “ Amanda Lees Support Services Manager – Property Management
“ We’re committed to nurturing our people’s talents… Katherine Thomas Group HR Director
12—13
“ The graduate leadership programme is a great example of MITIE’s commitment to developing talent. I’ve had the opportunity to explore different business areas and received continuous support in doing so. I’ve received lots of training including leadership and finance management and I know that there will be more to come. The projects that I’ve managed or been part of have not only taught me how the business operates but more importantly that people in MITIE are always there to help.” “ Jamie Hall Graduate Leadership Programme 2010
“ I’m committed to working with MITIE to deliver world class service to Cable & Wireless Worldwide. We have seen a huge improvement in the service delivered and this is down to nurturing the talent within the team. We promote internally and reward for individuality with our award scheme.” “ Sue Lewis Head of Facilities, Cable & Wireless Worldwide
…because we can only give clients the best service if we have the best people on the case.” This is all about finding the right people, motivating them in the right way, and coming up with the right development plans. And of course communicating with them every step of the way wherever they work. We won’t achieve our ambitions without the best people, whether they’re on-site providing cleaning or security services, helping our clients implement complex new systems and innovative resource strategies to help run their businesses better, or leading from the top at MITIE itself. Nurturing our people’s talents underpins the following part of our group strategy: Clients | Operational efficiency | Responsibility | New markets | People | Risk | Acquisitions
Enabling our people to work safe, and go home safe
“ MITIE has a proactive approach that adds value to the business and protects stakeholder assets. MITIE manages risk with robust integrated management systems managed by technically proficient managers. NQA regularly assesses these systems against internationally recognised standards.” atherine Golds C Head of NQA
“ I have been very pleased with MITIE’s management and control of health and safety at the hospital. Their performance is monitored and audited regularly and is supported by the positive health and safety culture that’s been adopted by the management team and embraced by the workforce. Incidents occur from time to time: we recently had an episode with asbestos but we are pleased to see a full and thorough investigation taking place to deal with the incident effectively and efficiently, minimising disruption to the hospital.” “ John Clarke Estates and Capital Services Manager, Nottinghamshire Healthcare NHS Trust
14—15
“ MITIE’s Work Safe Home Safe! campaign creates a safe working environment for me and my colleagues. It allows us to think about best practice behaviours when it comes to working safely and communicate our concerns about any situation we think may pose a risk. It truly shows how much MITIE cares about the health and safety of its people both in and out of the workplace.” “ Jeff Hilton Head of QHSE – Facilities Management
“ We’re committed to enabling our people to work safe, and go home safe… Richard White Group Quality, Health, Safety and Environment Director
…because our people are the greatest asset we have, and nothing is more important than their well-being.” We’ve always taken our health and safety responsibilities very seriously. We like to think we’re one of the leading companies in our sector at identifying and minimising workplace risks. But even with our great track record we appreciate there’s always more that needs to be done, and better processes to be developed – both for our clients and for ourselves. Enabling our people to work safe, and go home safe underpins the following part of our group strategy: Clients | Operational efficiency | Responsibility | New markets | People | Risk | Acquisitions
Performance and future objectives overview
“ We’re committed to monitoring and improving our performance.” W e’re proud of what we’ve achieved over the past 12 months. The table below outlines how we’ve performed against our most material objectives, categorised under our new six areas of focus to facilitate comparison going forwards. A full performance review and more detailed future targets can be found online at mitie.com/sustainability2011
Looking after our clients properly
Operating our contracts smarter
Using fewer natural resources
Make sure we have the right processes and systems in place to nurture relationships with clients and add the most value possible.
Make sure all our people and as many of the suppliers we work with as possible, understand the commercial impact of operating as efficiently as possible so that we can maximise value for all stakeholders.
Make sure our people understand MITIE’s environmental impact in terms of natural resource use and how important the reduction of this is – both from our own internal perspective and from that of external stakeholders, as well as the role they can play in improving it.
Performance 2011
Completion status:
Four joint MITIE and client employee volunteering events Two Real Apprentice employability programmes with 12 clients, offering 30 placements Three Top 50 client community projects
100% 100%
100%
+28.5%
Performance 2011
Completion status:
Four CR Awareness seminars and five inductions
100%
Undertake 20 CR audits of suppliers
100%
Develop and expand CarbonCare, TREEHUGGERTM and other MITIE sustainability initiatives
100%
In progress towards 2013 target: 10% fleet fuel reduction by 2013. 60% telematic tracker systems in our commercial vehicles. Reduce average CO2 vehicle emissions 15% office energy reduction by 2013 Achieve 80% recycling rate by 2013
-3%
-13.4%
MITIE has been awarded a Responsible Supply Chain Big Tick Award and is one of five to be shortlisted for the Examples of Excellence Award
39%
140g CO /Km
Future targets
Future targets
Future targets
1C lient relationship management: Survey our key clients on a rolling basis to measure and establish our net promoter score baseline, recording responses into our group-wide CRM system to enable maximum knowledge sharing;
1E mployee participation: Raise awareness of fuel consumption across the organisation via a dedicated comms campaign to help achieve 10% fleet fuel reduction by 2013;
1 T ransport optimisation: Incentivise alternatives through the introduction of a travel plan and optimisation of a sustainable fleet via further reductions in our average car fleet emissions to 135g CO2/km, and via procurement of ultra-low emissions, zero emissions and hybrid vehicles – increasing vehicle tracking ability to 60% of the commercial fleet;
Total community investment is up 28.5% to £534,015
% MITIE was delighted to receive the European Volunteering Award for Innovation with our Real Apprentice Programme
2C lient relationship management: Carry out one independent survey of our strategic clients to monitor key industry trends; 3E nriching partnerships: Share our innovative programmes to extend both our own and our clients’ community footprints via the Real Apprentice and our FM and construction Skills Centres.
16—17
Average annual fuel Overall energy consumption per consumption has vehicle down by 3% decreased by 13.4%
2E mployee participation: Increase management awareness of and participation in sustainable practices via e-learning programmes and interactive workshops; 3S upply chain management: Audit 40 major suppliers a year requiring 100% to meet or exceed our Sustainability Audit targets within 12 months; 4S upply chain management: Identify risk from climate change and hot spots in carbon emissions in the supply chain.
2 Working towards Average CO2 emissions our recycling target have been reduced to 140g CO2/Km of 80% by 2013
2U tility management: Decrease the quantity of estimated gas, electricity, water and waste data across our principal buildings by 50% and provide strategic, qualitative information to increase employee engagement in 2012 and support delivery of 15% office energy reduction by 2013; 3W aste management: Reach 80% recycling across our office estate by 2013, including a reduction in waste inputs from the supply chain by engaging with suppliers to reduce packaging waste and introduce paperless communication where possible.
A full performance review and more detailed future targets can be found online at:
mitie.com/sustainability2011
Doing more for our clients with less, wherever they are in the world
Nurturing our people’s talents
Enabling our people to work safe, and go home safe
Make sure all our businesses understand our high sustainability standards – including the use of innovative low carbon technologies – so our clients can benefit from them wherever they are in the world.
Make sure we have the right talent pipeline to fulfil all the business’ future needs.
Make sure the well-being of our people, and by extension our clients, is safeguarded while at work so they can all go home safe at the end of the day.
Performance 2011
Completion status:
MITIE Family Fun Day in line with UN International Year of Biodiversity
100%
Three environment-related volunteer projects
100%
Quarterly MI impacts reviews across MITIE offices
100%
Environmental Audits of MITIE’s Construction Skills Centres
71%
91%
Performance 2011
Completion status:
Pledge for 100 Apprenticeships, 530 NVQs and 120 Skills for Life qualifications by July 2010
100%
Performance 2011
Completion status:
10 Diversity Awareness training courses
100%
Achieve year-on-year reduction in incident rates
Record split of gender and ethnicity through the ERP system
Implement a health and safety competency framework
100%
100%
Four client-based Health Awareness days
25%
+31.3%
We’ve increased the number of training programmes we delivered by over 30%
526
100%
3.1/1,000
We have reduced reportable accidents to 3.1 per 1,000 employees
The number of apprentices has increased by 25.5% to 526
-33%
Future targets
Future targets
Future targets
1C lient awareness: Measure in what percentage of our markets around the world we are recognised as a ‘green’ brand via client surveys and establish a baseline by 2012;
1P erformance management: Set clear behavioural expectations via an updated performance management framework that’s clearly aligned with core values to ensure our people understand how best to manage their teams to help us achieve our goals by 2012;
1P erformance management: Provide improved MI through a new incident management platform across all operational business to enable more effective measurement of a better range of health and safety-related KPIs;
MITIE was awarded Gold in the BITC CR Index with an overall score of 91%. We were also awarded three Big Tick awards for Responsible Supply Chain, Workplace Inclusion and Skills in the Workplace
2E mployee awareness: Increase employee understanding of the group’s sustainability capabilities via internal marketing and communications, measuring extent of comprehension via employee surveys to set a baseline for 2012.
2 L eadership programme: Understand what the vital steps are for leadership and management development, defining what support is required at each level by 2012;
We achieved a 33% reduction in our major incident rate
2P erformance management: Introduce an improved incident root cause investigation methodology for all relevant incidents with a target of 100% during 2012;
3S uccessor planning: Identify the key roles for which we need to establish MITIE’s successor population by 2012;
3 L eadership and engagement: Launch the third phase of our health and safety risk management leadership programme to embed the correct leadership attributes within our management;
4E ngagement: Create a year-round people engagement plan that will establish a core set of measures pan-MITIE by 2012, against which future progress will be tracked;
4 L eadership and engagement: Launch the third phase of our Work Safe Home Safe! campaign in 2012 to deliver improved employee engagement.
5E ngagement: Run an internal volunteering campaign during 2012 to communicate volunteering opportunities and increase participation rates across MITE.
Our recent awards and recognition: “ MITIE truly embodies everything we stand for at Business in the Community. Their deep commitment to embedding responsible business practice across every part of a large and thriving business is clear. The progress they are making towards creating a business that is sustainable in every sense of that word is impressive. Examples of MITIE as an outstanding leader are plentiful – from their innovative Real Apprentice programme to their responsible supply chain work, the reductions they have made to their environmental impact and their excellent approach to developing their people. In 2010 we were delighted to welcome Ruby McGregor-Smith to the board of BITC and MITIE should be congratulated for moving from Silver to Gold in our CR Index. I look forward to further developing our strong relationship with MITIE as they continue to set and achieve their challenging targets.” “ Stephen Howard Chief Executive, BITC
Our memberships and affiliations:
MITIE Group PLC
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