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Barratt Corporate Responsibility Update 2007

Corporate Responsibility Data

We present our CR data for the financial year ending in 2007.

During this period we reviewed and revised the data we collect and the key performance indicators that we use to monitor our progress. The data was revised to support all of our external reporting requirements, including FTSE4Good, BITC Corporate Responsibility Index, Carbon Disclosure Project and Next Generation.

We have been collecting data each year since 2004 from our fixed divisional offices and temporary construction developments. This year we have changed the way we collect data from developments so that we obtain data related to all units legally completed during the reporting period instead of just from developments that were finished during the period. This gives us the most upto date information that we can use to monitor and influence our behaviour.

For this reason data related to fixed offices is comparable from one year to the next but data related to developments is comparable between 2004, 2005 and 2006 but not generally comparable with 2007.

In April 2007, Barratt bought Wilson Bowden plc. To make the data comparable from year to year and because of the difficulty of collecting data from new divisions for such a short period of time we have only presented data for the original Barratt business for the financial year ending in 2007. In our next report we will report on the combined business.

The information presented is for all Barratt construction operations unless noted otherwise. In some cases data for all Barratt opperations is not available, in which case we have calculated the total figure for the business based on the data that is available.

In last years’ CR report we published targets related to our CR data. We report below on achievements against those targets for the original Barratt business only, excluding the newly acquired Wilson Bowden business. As we integrate the two businesses we will review our targets and publish revised targets in our next CR report.

Governance and Management Systems

We achieved both our targets for implementing certified environmental and health and safety management systems at original Barratt divisional offices during the year. During the integration of Wilson Bowden plc with our existing business, some new offices were created that were not certified and our target this year is to implement certified management systems at all these divisions.

Last year we also set a target of publishing data for our revised set of key performance indicators and to change the way we collect data to measure all information related to the homes we build during the current year. We have achieved these targets with the publication of the data table attached.

Stakeholders and Community

As well as setting targets on customer care performance, registering developments with the Considerate Constructors Scheme and raising our score in the BITC Corporate Responsibility Index, which were all achieved, we also set a target last year to publish case studies within the company to illustrate effective dialogue with local communities affected by our developments.

This target supports our second strategic CR objective, published in our 2006 CR Report, “To engage in open dialogue with all our stakeholders, including our customers and the communities in which we work”. During the year we produced a booklet describing case studies that illustrate effective community involvement and consultation based on best practice in consultation and believe this will help to ensure a more systematic approach to community consultation, which is specific to local requirements.

We also developed our Group communications framework, implementing a revised Group Memo procedure for quickly disseminating important information throughout the organisation, launching an email based company newsletter to inform employees of the progress on integrating the Wilson Bowden business and rolling out an intranet based document-viewing facility.

Managing Our Environmental Impacts

Our fourth strategic CR objective is “To minimise our environmental impacts in all areas of our operations and to focus on the restoration of degraded land”. Last year, in accordance with a target set in our 2006 CR report, we carried out a lighting design review for offices and show homes to identify energy saving improvements. We are now looking at ways of implementing the findings of this review to help us reduce our overall energy consumption and emissions of carbon dioxide.

Although we met last years targets to reduce the average volume of waste produced per unit and to increase the percentage of waste leaving site that is segregated into recyclable waste streams, we also identified some divisions still use licensed waste contractors provided outside our nominated waste management broker, resulting in a gap in performance data. We will be working this year to capture all waste data and make further improvements in waste minimisation.

Procurement and Design

We are currently drafting an Environmental Charter in which we will commit to install A rated domestic appliances where ever available. We will publish more details of our charter soon.

Last year we committed to provide information to our customers on the impacts of not using A or B rated domestic appliances. We didn’t achieve this target but we believe that our new charter will be a better solution to the problem of using non A rated domestic appliances.

Following a review of our typical house components in accordance with the “Green Guide To Housing Specification” we set a target to investigate the feasibility of raising the Green Guide score for typical C rated ground floor components. We are currently working with WRAP (Waste and Resources Action Programme) to look at the potential for using more recycled material in our homes, including foundations and groundworks, which we hope will lead to improved ratings.

Occupational Health and Safety

During the year to 30 June 2007 we were pleased to reduce our accident incident rate again from 672 to 643 (per 100,000 employees), which is in line with our long-term target to reduce our accident rate by 10% year on year from the baseline rate in 2004 to achieve a rate of 560 by 2010.

We also met our target to carry out phase 2 audits at all divisions for compliance with our occupational health and safety management system.

As part of the key objectives for continued improvement in Safety, Health & Environment (SHE) performance, the business has moved from a small SHE team supported by consultants to a full in-house provision. This increased the team from 6 to 24 with the overall aim of 1 manager supporting no more than 2 divisions. This has been enhanced by the further development of an IT based monitoring solution providing a comprehensive reporting and KPI tool. Each SHE manager is responsible for supporting and advising an average of 22 developments with a clear focus on applying consistent standards, which will improve our overall SHE performance.

The introduction of a full in-house team coincided with the launch of a revitalised integrated SHE management system, which reflects the diverse nature of the business. The management system will enable the business to deliver consistent standards via an easily understood format.

In 2006 we set a target to ensure that 100% of site management receives the 5 day CITB Construction Skills Health and Safety Management course within 6 months of joining the company. Because of the turnover of staff, of approximately 25%, we did not achieve this target and we are reviewing this target for the year ahead.

Employment and Diversity

During the last twelve months we have implemented a radical change in our management of human resources. We have further strengthened our HR team and restructured existing roles to create dedicated areas of responsibility.

This has allowed us to design and implement strategic programmes for talent management including graduate and apprentice recruitment, and leadership development.

We have designed and implemented a graduate programme to select the best candidates for our business needs and provide intensive, structured development over a two year period to equip the graduates with the skills needed to take on their first junior management roles and then progress into more senior positions. Over 50 graduates joined the first programme in September 2007.

We have also committed to implementing a leading edge national apprentice training programme during the next year, which will provide structured and standardised high quality apprentice training across the business. Apprentices will be selected on merit and will take part in an initial two year site and college based training programme before selecting either an additional training year which will take them through to NVQ level 3 or a further two years in our Apprentice Academy which will provide the skills to take on a role as an assistant site manager.

To further enhance our pipeline of talent for the future we have designed and implemented a Leadership Development Programme for senior management to ensure that they have the skills required for leading their teams, and to develop into our leaders of the future. We have also implemented structured training for Sales Negotiators and will role out structured training for Customer Services personnel and middle management in the near future.

As part of the integration process following the acquisition of Wilson Bowden we have harmonised the employment terms and conditions of approximately 7000 employees, making remuneration and benefits consistent across the combined business, benchmarked against both our own sector and equivalent sized businesses.

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Barratt Developments PLC (Company Number 00604574), a company registered in England whose registered office is at Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF