SUSTAINABILITY STRATEGYWorld Class Civil EnginEEring

ocialconomical

nvironmentthe future

Introductionsustainability and environmental performance are often used interchangeably. To have a truly sustainable business, we must not only achieve (and exceed where possible) key social, environment and quality standards, but also meet key financial commitments such as cash flow and profit.

The business has recognised for some time that our best performing projects not only have an excellent health, safety, environment and quality record but also perform well financially.

In response to the sustainability challenge, in January 2013 Taylor Woodrow launched its Sustainability Matrix. The matrix is part of core business strategy and performance against each element of the matrix is discussed and reviewed monthly at the divisional management meetings. The matrix is comprised of a range of key performance indicators (KPIs) split into three areas:

• Economic• Social • Environment

As referenced in Inside Civils, a competition was launched to create a logo which would help bring the strategy to life and capture the essence of Taylor Woodrow’s commitment to being a sustainable business; resilient and successful in the long term. Ella Secker (Consents Manager at NET) came up with the winning entry ‘SEE the future’ – the logo which is shown on the front cover.

This brochure has been produced to demonstrate the full list of KPIs which are measured on a monthly basis and also introduce some case studies where projects have succeeded in this area.

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Graham StanleyManaging DirectorCivil EngineeringTaylor Woodrow

Our Mission:

Providing a sustainable business for the delivery of excellent projects

Our Vision: To be the market leader in civil engineering

Our Values and Behaviours: We aim to inspire all employees to meet our high standards and values in the execution of their duties, to act safely, to be environmentally and socially responsible through:

InnovationPartnershipsPeople and PassionStrength, Diversity and Dependability

CoNTENTS

2 Introduction to the matrix 3 Economic, Social and Environmental KPIs 6 Case studies from Victoria Dock Portal (Economic), Connaught

(Social) and Nottingham Express Tramway [NET Phase 2] (Environment)

EConoMiC

Aspect KPI Project/ Divisional

Units Threshold Expected Aspira-tional

PMR Frequency Owner

Ec01 Profit margin Contract gross profit as a % of turnover

Project (Transport)

% Available on request Yes Monthly Chris Boothroyd

Project (Energy)

% Available on request Yes Monthly Chris Boothroyd

Ec02 Turnover Total annual turnover Sector (Transport)

£million 240-249 250-254 ≥255 No End of year Chris Boothroyd

Sector (Energy)

£million 30-49 50-99 ≥100 No End of year Chris Boothroyd

Ec03 Order book The percentage of work in the order book (Year 1)

Divisional % 63-69 70-99 ≥100 No End of year Chris Boothroyd

Ec04 Customer satisfaction

% of feedback surveys undertaken [on-time]

Project % 100 100 100 Yes Quarterly Fred Garner, Dave Williams

Ec05 Supplier performance

Supplier assessments completed per project

Project % 90 100 100 Yes Bi-annual Gareth Wagland, Fred Garner, Dave Williams

Eco06 Winning Work PRQUAL success rate Divisional % 70 80 90 No Monthly Gareth Wagland

Eco07 Tender Success Rate

% of tenders won, by value and number of bids

Divisional % 25 33 50 No Monthly Gareth Wagland

Eco8 Cash Flow All payments received on time, contractual terms

Project Number of days late

0 0 -7 Yes Monthly Chris Boothroyd

Eco9 EVA All projects to undertake EVA

Project % 100 100 100 Yes Monthly Fred Garner, Dave Williams

Eco10 Overhead % of turnover Divisional % Available on request No Monthly Chris Boothroyd

Eco11 Productivity End forecast staff costs as a % of total costs

Project % Available on request Yes Quarterly Chris Boothroyd

Eco12 Productivity Turnover per overall hours worked

Project Rate per hour

Available on request Yes Quarterly Chris Boothroyd

Eco 13 Quality – NCR NCR cost (£) as % percentage of turnover

Project % Available on request Yes Monthly Fred Garner, Dave Williams, Emma McNab

Eco 14 Quality – Documentation Submission

% of documents accepted first time e.g. ITPs

Project % 90 99 100 No Monthly Fred Garner, Dave Williams, Emma McNab

Eco 15 Quality Defect Free

% of inspections completed defect free

Project % 75-90 90-99 100 Yes Monthly Fred Garner, Dave Williams, Emma McNab

Eco 16 Programme - SPI

SPI (cumulative) Project % 1 1 >1 Yes Monthly Fred Garner, Dave Williams

Eco 17 Programme – accepted by client

Number of weeks since accepted pro-gramme

Project Number of weeks

< or = 8 weeks

< or = 4 weeks

< or = 4 weeks

Yes Monthly Fred Garner, Dave Williams

Eco 18 Programme (Improve-ments to CPI)

CPI (cumulative)

Project % Improve-ment on previous month

Improve -ment on previous 2 months

Improve- ment on previous 2 months and CPI >1

Yes Monthly Fred Garner, Dave Williams

Sustainability Matrix

The sustainability KPIs were launched in January 2013, and several ‘core’ KPIs are monitored and measured via the Project Manager’s Report (PMR).

These core KPIs are collated into a league table to show the best and worse performing projects based on the information provided by the project managers. Some of the core KPIs are also linked to performance related incentives on the project, so there is a personal financial incentive to perform well for the project’s senior management team.

Performance against the KPIs is split into: Threshold, Expected and aspirational.

Threshold: Minimum, required level to avoid threat to business.

Expected: Level required for assured sustainability in line with our best performing competitors.

aspirational: Challenging but achieveable level of performance - differentiation of performance in relation to competitors.

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soCial

Aspect KPI Project/ Divisional

Units Threshold Expected Aspirational Frequency Owner

S01 Close Calls and PIs

Number of CCs/PIs raised

Project Number of PIs/CCs raised

Available on request Yes Monthly Fred Garner, Dave Williams, Ian Williams

SO2 Safety - accidents

Single lost-work day/shift frequency rate (LTI)

Project Number per 100,000 man hours based on 1 lost shift

1 0.2 0 Yes Monthly Fred Garner, Dave Williams, Ian Williams

S03 H&S - implementa-tion performance

Inspection – BRAG rating

Project BRAG rating (Section)

Available on request Yes Monthly Fred Garner, Dave Williams, Ian Williams

S04 Strong visible safety leadership

Senior Management audits

Divisional % of actual VS planned

80 100 >100 No Monthly Fred Garner, Dave Williams, Ian Williams

S05 Corporate citizenship - charitable donations & contributions

Charitable donations in kind, e.g. time, materials

Project £ equivalent contribution as a % of turnover

Available on request Yes Monthly Fred Garner, Dave Williams

S06 Employee engagement

Overall satisfaction - employee satisfaction index

Divisional % 83-85 85-89 ≥90 No Annual Fred Garner, Dave Williams, Elaine Grant

S07 Staff turnover [attrition]

Total number of leavers [resigna-tions last over 12 months / by average total head count over the 12 months]

Project % 12 9 6 No Monthly Fred Garner, Dave Williams, Elaine Grant

S08 Community Involvement

% people undertaking Stand Out Make a Difference days (SOMAD)

Project % 20-50 50-74 ≥75 Yes Monthly Fred Garner, Dave Williams, Elaine Grant

S09 Considerate Constructors Scheme

CCS score [note new scoring system]

Project Score 37-41 41-44 ≥45 Yes Monthly Fred Garner, Dave Williams

S10 Development of our staff

% of completed 1:1s against planned [in line with new system]

Project % [com-pleted vs planned]

70-80 80-99 100 No Six-monthly Collected by engagement representative

Fred Garner Dave Willimas

EnvironMEnT

Aspect KPI Project/ Divisional

Units Thresh-old

Expected Aspira-tional

PMR Frequency Owner

Env01 Preventing environmental pollution & nuisance

Number of environmental incidents (Level 1 and 2 - VCUK definition)

Project Number of 0 0 0 Yes Monthly Fred Garner, Dave Williams, Dawn Love

Env02 Waste minimisation / resource efficiency

Construction waste per 100k turnover

Project m3 per 100k turnover

5 3 <3 No Monthly (one month in arrears)

Fred Garner, Dave Williams, Dawn Love

Env03 Diversion of waste from landfill

% diverted (based on revised HMRC ruling)

Project % 90 94 ≥95 Yes Monthly (one month in arrears)

Fred Garner, Dave Williams, Dawn Love

Env04 Electricity use (Scope 2 emissions)

% electricity reduction (com-pared to baseline - rolling average)

Divisional % electricity reduction

No change to -5

-5 to -9 ≥-10 No Monthly (in arrears)

Fred Garner, Dave Williams, Dawn Love

Env05 Business Mileage (Scope 1 emissions)

Reduce business mileage (normal-ised to turnover)

Divisional % reduction (compared to baseline - rolling average)

No change to -5

-5 to -9 ≥-10 No Monthly (in arrears)

Fred Garner, Dave Williams, Dawn Love

Env06 Energy – im-plementation of manage-ment plan

Implementation of energy management plan- include electricity, red diesel

Project % of plans in place

100 100 100 Yes Monthly Fred Garner, Dave Williams, Dawn Love

Env07 Materials - timber products from legal & sustainable sources

% of legal and sustainable timber procured

Project % 100 100 100 Yes Monthly (in arrears)

Fred Garner, Dave Williams, Dawn Love

Env08 Water efficiency - construction phase

Reduce water use (normalised to turnover)

Divisional % reduction 0 -2 -5 No Monthly (in arrears)

Fred Garner, Dave Williams, Dawn Love

Implementation of water management plan

Project % of plans in place

100 100 100 Yes Monthly Fred Garner, Dave Williams, Dawn Love

Env09 Mayor of London GPC

Accreditation level

Divisional Level achieved Bronze Silver Gold No Quarterly Fred Garner, Dave Williams, Dawn Love

4 5

In March 2013 the team received the Taylor Woodrow's quarterly defect Free award in recognition of the excellence they had delivered.

HoW qualiTy rECords ManagEMEnT WErE ManagEd

our planning was started months in advance of the works being carried out, and comprised:

• Inspection and test plans (ITPs) in place and made available for DLR to review

• Regular meetings with all stakeholders to ensure documents in place• Agreed handover / handback folder contents• Dedicated staff allocated for the preparation of handover documentation • Dedicated ITP Room (ITP “red folders” provided with colour coded index

to ease filing)

The Hub provides a broad range of facilities right in the heart of the local community, including play and learning for pre-schoolers, life skills sessions for adults with learning difficulties, homework clubs, drama groups, music, media and photography sessions.

“The place looks and feels much cleaner and fresher thanks to the excellent work done by the team", said Tracy Smith, Hub Manager. “We’re very happy with the end results.”

Steve Devey, Health & Safety Advisor, said, “The painting experience was very rewarding. Tea and cake supplied by the Hub team really helped spur us on too!”

The project team were also able to improve the overall project sustainability score in areas of SOMAD and charitable donations with the time invested working on the community project.xc

suCCEssFul ouTCoME

76 of the planned inspections were Defect Free (91%), and the large number of other informal inspections undertaken as the work progressed raised no significant issues.

Through intensive planning and a professional approach from all concerned the railway was handed back to DLR on time.

In January 2013, we received a 93% customer satisfaction score from our client.

Taylor Woodrow employees working on the Crossrail Connaught Tunnel project spent three days and 170 man hours painting and decorating the interior of the local Asta Community Hub in Newham last week, as part of the SOMAD initiative.

6 7Victoria Dock Portal (C340) – Defect Free Christmas Possession Works Relevant to Sustainability KPIs: Eco 14, Eco15 & Eco 4

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Connaught Tunnel (C315) Stands out and Makes a Difference (SoMAD) Relevant to Sustainability KPIs: SO5, SO8

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During the period 23rd December 2012 to 2nd January 2013, the Taylor Woodrow team at Victoria Dock Portal realigned approximately 500m of twin track railway between Royal Victoria and Custom House Stations on the Docklands Light Railway (DLR).

During the period 23rd December 2012 to 2nd January 2013, the Taylor Woodrow team at Victoria Dock Portal realigned approximately 500m of twin track railway between Royal Victoria and Custom House Stations on the Docklands Light Railway (DLR).

In November 2012, heavy rain caused flooding across parts of the UK. The NET Phase 2 project had cleared an area including topsoil stripping at Clifton Park and Ride for archaeological investigations (see photo right). The site team had installed silt barriers, however these were ineffective and consequently the water burst over the silt fencing and washed into a nearby watercourse (Fairham Brook). The incident was registered as a Level 2 incident. The incident resolution below demonstrates how we prevented further incidents from occurring.

We have been part of the Mayor of London Green Procurement Code since 2011, however we were re-audited in July 2013 and achieved a 'Gold' level certificate, the highest rating achievable in the scheme.

Key initiatives undertaken in 2013:

In April 2013, Taylor Woodrow signed up for and supported the 'Supply Chain Sustainability School' CITB bid for funding www.supplychainschool.co.uk

The 'Supply Chain Sustainability School' is a virtual learning environment which aims to help construction suppliers and sub-contractors develop their sustainability knowledge and competence. The school provides suppliers with practical and free support.

By signing up to the scheme, we get access to information on our suppliers so we can benchmark performance. At the time of print there were 690 suppliers which supply VINCI Construction putting us in the Top Ten of major contractors who are part of the scheme.

There is also self-assessment area to gauge overall levels of performance and there is also a range of free learning e-modules: www.supplychainschool.co.uk/support/e-learning-modules.aspx

These modules cover subjects such as:

- Introduction to Waste

- Introduction to Sustainable Procurement

- Introduction to Environmental Management

Accessing the modules requires individual registration under the company name Taylor Woodrow. These e-learning modules can be set up to deliver facilitated classroom environment and are complementary to the existing suite of internal e-learning courses we offer.

As part of Taylor Woodrow’s commitment to sustainable procurement, we rolled out e-learning training for all our procurement staff (commercial and estimating).

In addition, we have created a sustainable procurement strategy which is linked to existing procurement documents and processes, and considers elements such as risk management, supplier engagement, performance assessment, and review.

suCCEssFul ouTCoME

The site installed some short term remedial works; two large water storage areas constructed to allow suspended solids to settle out, gravel weirs within Terram lined ditch varying in height, and overflow pipes with swan necks at varying heights to control water flow.

Clifton Park & Ride – with area cleared

Water breaching the silt fencing

However the lagoons were reaching capacity and the water sampled contained around 2,000mg/l and the discharge allowance was 50mg/l so the water would not be allowed to discharged into the Brook. so what could the team do? Tanker the water away? The estimated cost of this was around £500k! An alternative solution sought was the use of flocculation blocks which cost around £2,000. These are blocks which have flocculent chemical stored within a wax block to regulate chemical dosage. There are two blocks; one with a cationic charge which positively charges silt particles, and a second which has an anionic charge which negatively charges silt particles to remove any excess positive charge. This second block is required so that the use of block 1 does not harm aquatic species. The method was approved by Environment Agency and a discharge consent obtained for discharge using the flocculent blocks.

The team were extremely pleased with the results and said that in future they would recommend this approach over silt fencing as a cost effective and environmentally effective solution.

Turning an incident into an innovative solution – example from NET Phase 2 Relevant to Sustainability KPIs: Env01

3 Taylor Woodrow achieves 'Gold' in sustainable procurement audit Relevant to KPI: ENV09

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VINCI Construction UKAstral House, Imperial Way, Watford, HertfordshireWD24 4WW01923 233433

www.vinciconstruction.co.uk

+44 (0)1923 233433

Editor : dawn love Head of Environment & SustainabilityDawn.Love@vinciconstruction.co.ukMob: 07816-515568

Taylor Woodrow, the Civil Engineering division of VINCI Construction UK which forms part of VINCI,a world leader in concessions and construction.