Our strategy

Sustainability is an integral part of our business: it is embedded in all our decision-making and it is fundamental to how we create long-term value for our stakeholders.

Our value model

Our business is underpinned by our 2020 sustainability strategy, which gives us a competitive advantage through long-term efficiency, responsible business and effective partnerships.

Our goal?

To be the trusted partner for providing services, delivering infrastructure and creating places that bring lasting benefits to our customers and the communities in which we live and work.

How will we achieve this?

By creating and sharing value for our economies, for society and for the environment.

Value Enablers: what we rely on

  • Financial and natural resources (ethically and responsibly sourced and used)
  • Skilled, committed and engaged people
  • Long-term customer, community and supplier relationships
  • Corporate governance and operational excellence
  • Strong (risk) management systems and processes

Value Adding: what we do

  • Support Services

    Provide maintenance, facilities management and energy services for buildings and infrastructure.

  • Project Finance

    Arrange funding for Public Private Partnership projects to deliver public sector buildings and infrastructure.

  • Construction Services

    Deliver a wide range of buildings and infrastructure.

Outcome: our six positive outcomes

  • Better Business

    • Building a successful business
    • Leading the way with customers and suppliers
  • Better Society

    • Providing better prospects for our people
    • Supporting sustainable communities
  • Better Environment

    • Enabling low-carbon economies
    • Protecting the environment

Value Created and Shared

  • Financial stability and profitability
  • Economic growth and local development
  • Diversity and skills
  • Legacies in communities
  • A low-carbon, protected environment

How do we know we’re making a difference?

We track performance monthly with detailed economic, environmental and social key indicators – set by our Board and senior leadership at the start of our 2020 strategy. For the first time in five years, all of our Sustainability key performance indicator targets were independently verified by Bureau Veritas in 2015. This is a unique and powerful milestone in the credibility and governance of our sustainability strategy.

We did not meet all of our targets in 2015, because we set exceptionally ambitious targets in almost every area of our strategy. We wanted to see how quickly we could accelerate our progress towards our overall 2020 goals and objectives. In almost every area, this helped us to outstrip our 2014 performance and make inspiring headway in responsible business.

Targets and performance

Value for the economy

2015 target2015 performance2016 target2020 target
Carillion will contribute £32.5 million to profitability through sustainability actions£33.8 million [2014: £27.2 million]£34 million£40 million
Achieve Level 5 of Sustainable Procurement Task Force Flexible FrameworkLevel 5 [2014: Level 4]Level 5Start to implement the principles of new ISO 20400 Sustainable Procurement standard
40% of suppliers to respond positively to sourcing materials and products from responsible and ethical sources25% [2014: 35%]40%100%

Value for society

2015 target2015 performance2016 target2020 target
56% reduction in All Accident Frequency Rate (AAFR) against a 2011 baseline51% [2014: 49%]56%70%
75% of employees feel proud to be part of Carillion (Your Say survey)69% [2014: 65%]76%80%
22% of employees utilise the Carillion special leave policy for volunteering in areas where we work18% [2014: 14%]25%50%
60% local spend including small and medium enterprises (SMEs) in the UK58% [2014: 51%]60%Maintain at 60%
90% of UK Carillion apprentices who complete their framework will have an employment outcome89% [2014: 87%]91%95%
100% contracts to have a Community Needs Plan199% [2014: 96%]100%Maintain at 100%
1% pre-tax profits donated to community activities either in cash or kind1% [2014: 1%]1%1%
10% of schools, unemployed and hard-to-reach groups2 to develop skills to enter employment7% [2014: 4%]10%Maintain at 10%
  1. A period of three months is permitted during mobilisation of a new contract before a Community Needs Plan is required and any contracts with a duration of less than six months are excluded from the Community Needs Plan requirement provided that employees are engaged in community engagement via an existing contract or their business unit. The IMS Director must approve any additional exclusions for exceptional reasons, such as only one person working on contract.
  2. Hard-to-reach covers a wide range of groups and are those with real or perceived barriers to engagement/employment.

Value for the environment

2015 target2015 performance2016 target2020 target
20% reduction in our carbon footprint (against a 2011 normalised baseline)31% [2014: 17%]33%Target met ahead of time. Revised target being developed
20% reduction in gas consumption from Carillion offices in the UK (against a 2011 degree days normalised baseline)28% [2014: 11%]20%Maintain
20% reduction in electricity consumption from Carillion offices in the UK (against a 2011 baseline)4% [2014: 25%]20%Maintain
100% contracts to have a Carbon Reduction Plan199% [2014: 96%]100%Maintain at 100%
97% waste diverted from landfill (zero waste)294% [2014: 95%]97%97% (effectively zero waste to landfill2)
25% reduction in water consumption (against a 2012 normalised baseline)3Operations 40% [2014: 28%]
Own estate 24%
28%Maintain at 28%
100% sourced timber in the UK will meet Forest Stewardship Council or equivalent standards498% [2014: 99%]100%Maintain at 100%
  1. A period of three months is permitted during mobilisation of a new contract before a Carbon Reduction Plan is required and any contracts with a duration of less than six months are excluded from the Carbon Reduction Plan requirement. The IMS Director must approve any additional exclusions for exceptional reasons, such as only one person working on contract.
  2. 3% of our waste is hazardous or non-recyclable. Therefore a 97% diversion rate is equivalent to zero waste to landfill. In 2015, we amended this diversion rate target from 98% to 97% to reflect the fact that 3% rather than the predicted 2% was hazardous or non-recyclable.
  3. Operational water reduction (using 2012 baseline and normalised turnover) was 40% and excludes Carillion Services and Canada. The water reduction on our own estate in the UK and Canada was 24% (using 2012 baseline and normalised by square footage).
  4. Timber performance data from 2014 report as 2015 data not available at time of publication.

If you want to find out more about how we’re creating a better tomorrow, download our full report.

What’s next

We will revisit our material issues in 2016, reviewing their significance against global trends, such as skills shortages, diversity, engagement and collective agreements, such as the United Nations Sustainable Development Goals. We will build on the fact that we achieved our carbon footprint reduction target five years early, aiming to cut even more and to tackle embodied carbon across the built environment.

“The increasing focus on the impact of employer engagement in UK schools, along with the scale and quality of apprentice training, offers significant rewards for both business and society. Specifically, Carillion must redouble its efforts through company-supported volunteering.”

Dame Julia Cleverdon DCVO, CBE, Vice President of Business in the Community