customers & suppliers - carillion sustainability report 2014
TRANSCRIPT
Carillion is…
the way with our customers and suppliers
Effective and innovative collaboration
We work together with customers and suppliers to find mutually beneficial and dynamic solutions, which will help us to win repeat business and gain new clients based on our proven delivery credentials.
Launching our Small Business Charter
We are currently exceeding the UK Government‘s goal of 25% SME spend for government contracts with 27% of our spend going to SMEs. In 2014, we launched a charter to engage 3,700 small
Prompt payment
£977.6M IN EARLY SUPPLIER PAYMENTS IN 2014
Engaging and collaborating with the industry supply chain
FUNDING PARTNER OF THE SUPPLY CHAIN SUSTAINABILITY SCHOOL
Our hospital is one of the best for cleanliness
CLEANLINESS AND FOOD IMPROVEMENT RECOGNISED AT DARENT VALLEY
Sustainability in action
LEADING THE WAY WITH OUR CUSTOMERS AND SUPPLIERS
Customer experience
Sustainable innovation
Supply chain management
Collaborating with suppliers
OUR BUSINESS CUSTOMERS & SUPPLIERS
PEOPLE COMMUNITIES LOW-CARBON ECONOMIES
ENVIRONMENT
Making tomorrow a better place
SUSTAINABILITY REPORT 2014
and medium suppliers.
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Sustainable timber
100% RESPONSIBLE TIMBER POLICY WITH WWF
+37 Net Promoter Score measuring customer satisfaction2013: +33
6,783 international suppliers accredited to MyRegister2013: 6,442
2014: 10% 2020: 100%
35% of suppliers responded positively to sourcing materials from ethical sourcesTargets
2014: Achieved2015: Level 5
Level 4 of the Sustainable Procurement Task Force Flexible Framework maintainedTargets
Target achieved
Our key figures2014 performance highlights
Progress against targets
VIEW OUR FULL PERFORMANCE AGAINST TARGETS
Our hospital is one of the best for cleanliness
Patients have rated Darent Valley Hospital as among the best in England for cleanliness. Recent results from the annual Patient-Led Assessments of the Care Environment reflect how the environment at the hospital supports patient privacy and dignity.
Cleanliness, food and building condition are now above the national average, with scores for cleanliness in the upper quartile for England. Food provision as also commended since the Carillion team introduced fresh soup, improved
+37 Net Promoter Score(2013: +33)
1m calls, emails, SMS and social media contacts taken by our Customer Experience Centre each year
CUSTOMER EXPERIENCE
OUR HOSPITAL IS ONE OF THE BEST FOR CLEANLINESS
FACILITIES MANAGEMENT SUPPLIER OF THE YEAR
CLIENT–CONTRACTOR AWARDS
HIGHWAYS AGENCY UNVEILS TOP SUPPLIERS
Listening to, speaking with and investing in clients is a priority. Exceeding customer expectations is the best way to win new and repeat business.
To help drive our customer strategy, we joined the Institute of Customer Service (ICS) in 2014 – a forum that shares ideas and initiatives to improve customer service experience in the UK. We went on to support the ICS in establishing an all-party Parliamentary group on customer service and attended the inaugural meeting in the Houses of Parliament.
We measure satisfaction through the Net Promoter Score (NPS). This international standard allows us to measure customer satisfaction and benchmark performance against other organisations, based on how likely customers are to recommend Carillion’s services. NPS scores range from –100 to +100. Carillion scored +37 in 2014 (up from +33 in 2013), comparing very favourably with other companies in our market sectors and giving us first-hand feedback and information to continue improving the services we provide for our customers.
Our Sheffield-based Customer Experience Centre is a centre of excellence. It provides a wide range of contact and administration services for customers and internal teams including facilities management and support helpdesks and international safety reporting.
LEADING THE WAY WITH OUR CUSTOMERS AND SUPPLIERS
Customer experience
Sustainable innovation
Supply chain management
Collaborating with suppliers
OUR BUSINESS CUSTOMERS & SUPPLIERS
PEOPLE COMMUNITIES LOW-CARBON ECONOMIES
ENVIRONMENT
Making tomorrow a better place
SUSTAINABILITY REPORT 2014
the presentation and quality of sandwiches and salads and amended the ordering system so that more patients were able to receive their first-choice meal.
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FACILITIES MANAGEMENT SUPPLIER OF THE YEAR
In 2014, we won the Facilities Management Service Provider of the Year at the British Institute of Facilities Management Awards, in recognition of the outstanding service delivery and excellence provided on our long-standing contract with Centrica and British Gas.
Since 2002, we have worked extremely hard to build a true partnership and introduced a business model specifically tailored to the client, ensuring we meet the needs of their people and the environment. The award acknowledged Carillion’s training, customer service and implementation of an effective single Facilities Team. The team unites 600 individuals from seven supplier organisations and is driven by shared behaviours, values and commitments to benefit Centrica and British Gas.
Client–contractor awards
Carillion Alawi was named Contractor of the Year at the Construction Week Oman Awards 2014 in the Grand Hyatt Muscat. The award recognised Carillion’s ability to deliver projects within tight timescales, while maintaining a zero tolerance approach to accidents. It has also managed to maintain a steady growth despite challenging markets in recent years.
In the UK, the Library of Birmingham was named Construction News Project of the Year (over £50 million). Judges praised client–contractor collaboration through the six-year project. The library was also shortlisted by RIBA Chartered Architects for the prestigious RIBA Sterling Prize
“ The improved results have been achieved through hard work by both the Trust and ourselves providing the facilities management services. We are extremely happy with these results and this is testament to the partnership approach that we have with Carillion.”
CHRIS FORSTER, Director of Estates and Facilities, Darent Valley Hospital
“ Bouchier Carillion has the right attitude to take risks and make it win-win. We have work that needs to be done and they have a workforce that can do it. They understand what the client wants and they try to execute it to the best of their abilities to make sure we’re happy. It’s mutual – they do work, we pay them fair value. But it’s an open relationship and very transparent. We only succeed with both of us.”
CHAD BEATON,
£11.6m/95,000t of CO saved for our customer the Ministry of Defence, over the last three years
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for the best building in the UK.
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Highways Agency unveils top suppliers
The Highways Agency announced Carillion as winners of the Customer Experience Award as part of its Supplier Recognition Scheme. The award recognised our work to involve the local community during the A23 Handcross to Warninglid scheme.
We also received the Supply Chain Management Award as part of a Collaborative Procurement Working Group by implementing effective strategies through the supply chain to avoid road-user delays.
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Manager, Facilities and Services, Canadian Natural Resources Limited
“ The creation of the EcoPod Technology Centre puts Carillion at the forefront of energy-efficiency innovation. We will test installations at our test centre which will also support the creation of new jobs in research and development, renewable energy systems and building automation.”
Improving lives and saving carbon with EcoPods
Carillion’s EcoPod technology is already reducing energy costs and cutting carbon emissions in more than 40 high-rise buildings across the UK.
EcoPod is a Smart energy and controls system for multi-occupancy buildings that provides highly efficient, safe and controllable heating and hot water for building owners, operators and occupiers.
“ We are very pleased to continue our support for NHS Sustainability Day. Sustainability has become an increasingly important part of all aspects of Carillion’s business activities. We are delighted to have the opportunity to share our
SUSTAINABLE INNOVATION
IMPROVING LIVES AND SAVING CARBON WITH ECOPODS
STRENGTHENING SOLAR ENERGY IN THE MIDDLE EAST
MOD PROJECT SAVES £11.6 MILLION
Our people are continually looking for ways in which we can do things differently and create even more benefits for customers, communities and the environment.
Our Sustainability Investment Fund has helped to support this thinking across the company, providing up to £120,000 for research, innovation or implementation in a variety of projects. Funds are awarded to support the delivery of one or more of our six positive outcomes, and we look for proposals that could improve our work or even develop new products and services. For example, in 2014, our construction services applied for funding to reduce waste by upgrading machinery and purchasing materials to develop a recycling area.
See Sustainable design for examples of how we are integrating innovative ideas and practices from the outset of our construction work.
LEADING THE WAY WITH OUR CUSTOMERS AND SUPPLIERS
Customer experience
Sustainable innovation
Supply chain management
Collaborating with suppliers
OUR BUSINESS CUSTOMERS & SUPPLIERS
PEOPLE COMMUNITIES LOW-CARBON ECONOMIES
ENVIRONMENT
Making tomorrow a better place
SUSTAINABILITY REPORT 2014
PHIL SHEPLEY, Managing Director of Corporate and Central Government Services, Carillion Services
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Strengthening solar energy in the Middle East
We are installing a Concentrated Solar Power (CSP) technology power plant in Dubai and the wider Middle East region for Dubai Electricity and Water Authority. This trial project will be used as a learning tool for larger-scale deployment of CSP installations in Dubai to help strengthen the local solar industry. This is an important step for the solar energy sector and to encourage environmental sustainability by using renewable energy.
We have also been testing recycled PVC plywood in place of traditional plywood for shuttering on one of our projects in Dubai where we have demonstrated that it saves time and money, and can be 100% recycled. On the same project, the team also hired a concrete crusher to produce approximately 7,000m of aggregate for use on other project areas, reducing additional virgin material costs.
experiences and to learn from others through the NHS Sustainability Day programme of events.”
NUALA GILMARTIN, Business Development, Carillion Health
See NHS Sustainability Day in action
Manchester and Birmingham energy saversA partnership between Carillion and Birmingham City Council will see 24 EcoPods installed across the city. The significant energy savings, together with Energy Company Obligation funding, will help fund the project.
The first phase of six EcoPods was completed late in 2014, comprising 350 homes and saving a total of 17,000 tonnes of CO over the lifetime of the system. 2015 will see a further 16 EcoPods serving a further 644 homes and saving 50,000 tonnes of carbon.
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£140,000 and 12,500t CO savings at the Four Seasons Hotel project in Abu
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MoD project saves £11.6 million
Over the last three years, our work in the Regional Prime Central contract has achieved excellent, long-term sustainability results with savings of £11.6 million and 95,000 tonnes of CO .
The works were aimed at introducing new technology and driving down energy consumption and carbon levels on all major sites. We also focused on upgrading the infrastructure to harness, manage and optimise fuels and carbon emissions across the estate.
The CarillionAmey Joint Venture responsible for the contract was named Sustainable Business of the Year at the MOD Sanctuary Awards in 2014 and has also won a number of major industry awards for its work.
Meanwhile, in the National Housing Prime Contract, the CarillionAmey team worked with the client to secure energy company funding for energy improvements and technologies across service family accommodation. As a result, the standard of accommodation has been improved and, in many cases, reduced fuel costs for our forces personnel and their families.
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Dhabi thanks to our engineers replacing ordinary cement with a concrete with smaller manufacturing carbon embodiment
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MYREGISTER SUPPLIER ACCREDITATION SYSTEM
We set best-in-class standards for health, safety and working conditions wherever we work. We also set high standards of corporate governance, and our supplier partners are assessed against commercial, health and safety, quality and sustainability indicators. MyRegister, our supplier accreditation system, captures information on capability from all our suppliers, assessing against health, safety, quality and sustainability indicators. Based on their responses to the My Register questions, suppliers are graded from A to D with A being the highest. This assessment informs our purchasing decisions, ensuring that the most capable supplier is selected for a given project. We also use this information to actively engage with our supply chain, sharing knowledge and encouraging development of their capability as appropriate.
We have 6,783 accredited suppliers internationally, with the top 10% achieving an ‘A’ grade in 2014. Working with the Supply Chain Sustainability School we are actively encouraging our suppliers to undertake further training. This should in turn improve the quality of responses to the MyRegister question set and therefore enhance the overall sustainability capability
£977.6m paid to 396 suppliers
6,783 accredited suppliers internationally against commercial, health and safety, quality and sustainability indicators
100% of supply chain teams completed the ethics module of the Chartered Institute of Procurement and Supply
SUPPLY CHAIN MANAGEMENT
MYREGISTER SUPPLIER ACCREDITATION SYSTEM
SUSTAINABLE PROCUREMENT STEERING GROUP
PROMPT SUPPLIER PAYMENT
UK CONTRACTORS GROUP
TRAINING OUR SUPPLY CHAIN MANAGERS
CARILLION IN QATAR
Our supplier relationship management aims to build a two-way relationship that supports and encourages supplier business, helps us to deliver our client operations and expects the same standards of responsibility as we set for ourselves.
LEADING THE WAY WITH OUR CUSTOMERS AND SUPPLIERS
Customer experience
Sustainable innovation
Supply chain management
Collaborating with suppliers
OUR BUSINESS CUSTOMERS & SUPPLIERS
PEOPLE COMMUNITIES LOW-CARBON ECONOMIES
ENVIRONMENT
Making tomorrow a better place
SUSTAINABILITY REPORT 2014
of our supply chain.
We manage our preferred supplier list through categories of supplier, which strengthens our relationships, innovation and development of supplier sustainability credentials. By sharing information about future business demand, we can also help our suppliers to plan and grow in line with forecasted work.
We also regularly audit and measure supplier performance using our Supplier Performance Improvement tool. This enables us to manage category-specific sustainability risk assessments, helping us to understand and mitigate risks for that category. The average supplier sustainability score from the many thousands of reviews carried out in 2014 was 69%, down from 71% in 2013.
SUSTAINABLE PROCUREMENT STEERING GROUP
This is made up of senior representatives from across our business units, who work to develop and govern best-practice approaches to supply chain sustainability. A key objective is to assess suppliers against ethical sourcing standards, with the aim of achieving 100% compliance by 2020. The steering group also oversees our Ethical Sourcing Plan, Timber Procurement Policy, SME spend ratios and Sustainability School relationships.
PROMPT SUPPLIER PAYMENT
396 Carillion suppliers (150 SMEs) are now using our Early Payment Facility (EPF) and we paid nearly £977.6 million in 2014. The EPF allows suppliers to access early payment in advance of their agreed terms at no additional cost, which improves their cash flow. We plan to further expand this facility in 2015, with a target to pay £1 billion through this mechanism, equivalent to almost 50% of our UK supplier spend.
UK CONTRACTORS GROUP
We are members of the UK Contractors Group. Membership commits around 30 companies to work with their supply chain to reduce waste and greenhouse gas emissions.
We support the Government’s construction industry strategy (Construction 2025) for greater resource efficiency and a 50% reduction in greenhouse gas emissions in the built environment by 2025. It supports a number of WRAP Built Environment Commitments to take actions through the supply chain that contribute to a lower-carbon, resource-efficient built environment.
Procurement Pledge Carillion signed the Government’s Procurement Pledge
TRAINING OUR SUPPLY CHAIN MANAGERS
Our internal Supply Chain Academy has delivered its most successful training year to date with more than 3,000 hours completed by our supplier teams, the equivalent to four days per person. More than 30 courses are available, including Data Gathering and Market Analysis, Customer Service Skills, IOSH and NEBOSH qualifications and Women in Leadership.
Carillion in Qatar
Carillion sets best-in-class standards for our people’s health, safety, human rights and working conditions wherever we work. We also set high standards of corporate governance, supported by policies and procedures that are applied rigorously across our business. These are not just standards we set for the benefit of those we employ directly, but also standards from which our supply chain’s people should benefit.
In regions such as the Middle East, where we have operated for over 40 years, we make strenuous efforts to ensure that our supply chain aligns with ISO standards, as well as local laws. We make it clear to all our subcontractors that they must comply with Carillion health and safety standards on our sites – the same as those applied in the UK. In addition, we require our subcontractors to comply with the requirements set within Qatar Labour Law in respect of payment of wages, living conditions and employment rights.
We work closely with our suppliers, and where we identify inappropriate practices or subcontractors/sub-suppliers not meeting our standards we will work with them to help them improve. If they are either not prepared or unable to do this, we will engage alternative suppliers who are able to do so.
In Qatar, Carillion is contracted to deliver phase 1B of the Downtown Doha project, a mixed-use development comprising retail, commercial, residential, leisure, cultural and community facilities. Our work on this scheme has won a key industry Sustainability Project of the Year Award. While this was principally in recognition of our achievements in minimising environmental impact, it also reflects Carillion’s leading role as a responsible contractor and employer in the region.
You can find out more about our standards and practices in Qatar in this section of our corporate website.
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SUPPLY CHAIN SUSTAINABILITY SCHOOL
We are a Funding Partner of the Supply Chain Sustainability School – the award-winning collaboration initiative designed to offer free skills, training and action plans to suppliers across the full built environment. The School is an online virtual learning facility, and one of the most successful sustainability education initiatives in the history of the built environment. David Picton, our CSO, has been a member of the Leadership Council since 2013, and the School has made exceptional progress in upskilling supply chain companies and people.
Throughout 2014, we also chaired the expansion of the School beyond its original coverage of just the construction sectors, branching out to include Facilities Management (FM) and Services. More than eight months of hard work came to fruition at the end of the year – having managed to secure part-funding from the UK Commission for Employment and Skills – with the public launch of the expanded FM and Services arm of the School.
Ethical Supplier Collaboration Award For Carillion Services’ contribution to Nationwide’s supply chain
COLLABORATING WITH SUPPLIERS
SUPPLY CHAIN SUSTAINABILITY SCHOOL
LOCAL SOURCING AND SUPPORTING SMES
MEETING LOCAL SME SUPPLIERS
SUSTAINABLE TIMBER
With an international supplier spend of around £3 billion, we can make a tangible positive impact on sustainability alongside our supply chain partners.
Our Sustainable Supplier Charter ensures our commitment to sustainable procurement is embedded in supplier management, applying the principles of the UK Chartered Institute of Purchasing and Supply’s (CIPS) Policy on Purchasing Ethics and the Canadian Institute for Supply Management (CISM) principles.
We put our efforts into building relationships with local businesses that share our values. For example, in the Middle East, we have trained 350 subcontractors in estidama (sustainability) workshops to factor sustainability into project planning and tenders.
LEADING THE WAY WITH OUR CUSTOMERS AND SUPPLIERS
Customer experience
Sustainable innovation
Supply chain management
Collaborating with suppliers
OUR BUSINESS CUSTOMERS & SUPPLIERS
PEOPLE COMMUNITIES LOW-CARBON ECONOMIES
ENVIRONMENT
Making tomorrow a better place
SUSTAINABILITY REPORT 2014
In the fields of sustainability, there’s little chance of achieving progress without collaboration – and the School offers:
best-practice resources to help FM suppliers and sub-contractors develop their sustainability knowledge and competence;
self-assessed action plans to demonstrate benchmarking, and routes of progress towards greater skills;
e-learning modules, plus unique management systems to track progress;
opportunities for involvement at supplier development days and sustainability workshops; and
access and input to other groups, events and initiatives within the wider Supply Chain Sustainability School (including groups focused on construction, infrastructure and research).
We ran our first Supplier Day with the School at Liverpool in April 2014, linked to our operations to build the Royal Liverpool University Hospital, with just over 110 delegates attending from 90 different companies. We covered perspectives from Carillion, from other partners in the School, from suppliers and from the Business in the Community regional teams who we work with to engage local communities and develop social value for the region.
We are also members of the School’s Horizon Group – comprising industry main contractors and partner universities specialising in the built environment. The group aims to improve the supply chain’s capability to deliver a sustainable built environment through collaborative research, and we are driving the first significant project to review ethical sourcing competence, knowledge and skills among the supplier base.
Watch the video.
LOCAL SOURCING AND SUPPORTING SMES
We aimed to place 45% of our UK supplier spend with local business last year, and we exceeded that to achieve 51%. Working with smaller local businesses has generated employment, boosted local economies and helped us to engage with the communities in which we work.
We have also exceeded the UK Government’s goal of directing 25% of spend towards SMEs for government contracts, with our current SME spend at 27%.
Our Small Business Charter was launched in 2014, showing how working with our 3,700 accredited SME businesses will support the UK economy and what our suppliers can expect when working with us, including access to our Early Payment
“ We are working hard to extend our sustainability values across our supply chain in the Middle East, with a particular focus on the standards we expect in health, safety and welfare for everybody that is working on our contracts. This is a real challenge but one that we are determined to deliver upon.”
ANDY JONES, Managing Director, Middle East and North Africa
750 lorry movements and 45t of CO saved on the Battersea Power Station Phase 1 contract, by collaborating with our supplier Groundworks to remove waste by barge
Funding Partner for the Supply Chain Sustainability School
51% of supplier spend to local businesses (target: 45%)
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“ This is a wonderful business development opportunity for Doncaster firms and a great chance for them to network with some of the biggest firms in the country. By meeting these decision makers it could open doors to new work, jobs and growth; ensuring the borough and our economy benefit at every opportunity.”
ROS JONES, Mayor of Doncaster
“ Illegal and unsustainable logging contributes to deforestation and degradation across the world’s most important international forest regions. We will continue to direct concerted efforts at understanding and tracking the sourcing of all our forest and wood products in line with the WWF pledge.”
DAVID PICTON, Chief Sustainability Officer, Carillion
Facility.
Meeting local SME suppliers
Carillion held a business event for companies to discuss local opportunities and benefit from the Finningley and Rossington Regeneration Route Scheme. In partnership with Doncaster Council, a ‘meet the buyer’ day allowed businesses to scope requirements with the Carillion buying team and find out about planned developments.
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Sustainable timber
Carillion has become one of the first British businesses to sign up to WWF-UK’s new forest campaign. The pledge commits companies to responsible forest trade and 100% sustainable timber and wood products by 2020, and we will continue to work with suppliers to develop our Timber Procurement Policy. In Oman, Carillion’s joinery workshop was the first in the country to have Forestry Stewardship Council (FSC) chain of custody certification, providing assurance on responsible sourcing of timber products.
3,700 SME suppliers
