81023 Sus.Rep Txt - Berkeley Group...Average SAP ratings for all dwellings completed Average carbon dioxide emissions from our fixed offices (kgs of carbon dioxide per m2) Average

Berkeley sustainability report 2005

Advisers’ statementThe Berkeley Group has askedUpstream to comment upon itssustainability strategy and its disclosureconcerning sustainability issues.As the company’s external sustainabilityadviser, this statement has beenprepared on the basis of our long-standing knowledge of the company’sapproach to sustainability.

The Berkeley Group’s focus on urbanregeneration means that sustainabilityis at the heart of its business and is nowa material consideration for many of theGroup’s major projects.

The Berkeley Group has continuedto develop its corporate sustainabilitystrategy and has detailed within thereport progress in relation to its keyprinciples. The implementation of theLand Purchase Risk AssessmentSustainability Checklist is an importantstep forward in understandingsustainability risks and opportunitiesat the earliest stage of the developmentprocess. As detailed within this report,the company has also undertaken anextensive review of its Key PerformanceIndicators (KPIs) to ensure that they addvalue to the business. We look forwardto future reports against these new KPIs,

including the development of quantifiableperformance targets, and hope that theywill be helpful in enabling the companyto better understand the relationshipbetween sustainability issues andbusiness performance.

At a project level, this report providesgreater depth and detail concerningThe Berkeley Group’s approach tosustainability during each phase of thedevelopment process. In additionto its ongoing focus on regeneratingbrownfield sites, the company’scommitment to achieve an ‘Excellent’EcoHomes rating on one of its projectsrepresents significant progress. This willprovide a valuable insight into themeasures required to reach suchstandards, which are becoming anincreasingly important aspect of bothpublic and private sector development.The company’s commitment tocontinuous improvement is alsoillustrated by its review of wastemanagement, the examples of innovationin construction techniques and thetrialling of new sustainability technologies,including renewable energy.

For the house building sector, upholdingsustainability standards whilst respondingto the increased demand for housing

presents a significant challenge. TheBerkeley Group’s focus on environmentaltargets for the coming year will becrucial in ensuring that the company’scommitment to the environment iscomplementary to the provision of goodquality, affordable housing.

Finally, it is particularly encouraging tonote the company’s sense of long-termresponsibility to the communities inwhich it works, through the legacy thatits projects leave behind. An importantaspect of this is engaging withcustomers to encourage sustainablebehaviour in the occupation ofdwellings. In this regard, The BerkeleyGroup has made good progress duringthe past year and has set targets tofurther develop this aspect of itssustainability strategy in the year ahead.

Based upon our knowledge of thecompany, we are satisfied that thisreport provides a balanced account the company’s progress andachievements during the past year. We look forward to the company’scontinued progress.

Sarah RatcliffeDirectorUpstream

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Building for

the future

The Berkeley Group Holdings plcBerkeley House19 Portsmouth Road, CobhamSurrey KT11 1JGUK

Telephone +44 (0)1932 868555Facsimile +44 (0)1932 868667Website www.berkeleygroup.co.uk

Average RIDDOR incident rates per 1,000 employees on all sites (principal contractor and client only sites)

Average percentage of site managers completing the CITB 5 day safety training course

Average SAP ratings for all dwellings completed

Average carbon dioxide emissions from our fixed offices (kgs of carbon dioxide per m2)

Average water consumption in our fixed offices (m3 per employee)

Average percentage of dwellings fitted with dual flush WCs

11.410.2

6.87.4

90 93 85 93

79.4 79.0 74.7 79.6 95.883.6

97.6

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22.620.4

11.714.4

51

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02/03 03/04 04/0501/02 02/03 03/04 04/0501/02 02/03 03/04 04/0501/02

02/03 03/04 04/0501/02 02/03 03/04 04/0501/02 02/03 03/04 04/0501/02

Berkeley is continuing to explore ways in which it canmove towards a higher average SAP rating. Someof its new build houses have achieved average SAPratings of over 90, but the high proportion ofapartments and refurbished dwellings that Berkeleybuilds reduces the overall SAP ratings.

In context, the environmental impacts associated with Berkeley’s occupation of property are only a small partof its overall impact. However, Berkeley’s efforts to reduce these impacts is an important demonstration of itscommitment to sustainability and is particularly important when communicating with employees. Many ofBerkeley’s fixed offices have resource efficiency programmes in place and Berkeley has reduced its energyconsumption by 38%, and water consumption by 36% over the past four years.

This data only covers buildings where we have direct control over utilities purchasing.

The trend over the last four years shows thatBerkeley is gradually increasing the potential waterefficiency of its dwellings with almost 90% of alldwellings completed having dual flush WCs installed.Berkeley expects its performance against thisindicator to continue to improve as this is now astandard specification for all new dwellings.

This data includes those sites where the companyis the principal contractor and those where it doesnot have primary management responsibility forhealth and safety. Berkeley has a target to reduce itsRIDDOR incident rate by 10% per annum. Over thepast four years Berkeley has decreased the averageincident rate by a total of 35%.

Training is crucial to the effective delivery of Berkeley’shealth and safety strategy and targets. This indicatorrefers to the five day CITB Site Managers trainingcourse on health and safety issues. The Groupcontinues to be at the forefront of health and safetyinitiatives in the sector (see page 24 for more details).

In addition to these targets, Berkeleyremains committed to developingits sustainability strategy to drive acontinuous improvement in performance.Berkeley has therefore set itself thefollowing targets:

Strategy• Implement the Land Purchase Risk

Assessment Sustainability Checkliston all new sites.

• Audit the company’s four main divisionsusing its Sustainability PerformanceManagement Tool, which includesongoing targets from previous years.

• Participate more proactively in industry-wide sustainability initiatives.

Performance• Gather data in relation to Berkeley’s

recently revised Sustainability KeyPerformance Indicators (SKPI).

• Set performance targets in relationto selected Sustainability KeyPerformance Indicators.

• Pilot new sustainability indicatorsrelating to transport, timber andrenewable energy in selected divisions.

Communications• Ensure the divisions have appropriate

sustainability training programmesin place.

• Improve the communicationof sustainability issues to customers.

• Review the sustainability contentof Berkeley’s corporate website.

• Increase the proportion of wasterecycled on those major projects withdata gathering already in place.

• Review the waste and energy savingsarising from the ‘Evolution’ project,which uses ‘Modern Methods ofConstruction’ and draft a case studyto be distributed to other divisions.

Transport• Draft a briefing note on the

implementation of car clubs using casestudies from various divisions withinthe Group.

Supply chain management• Ensure that environmental requirements

are included in the tendering process,contractual requirements and ongoingmonitoring of major suppliers’performance.

• Seek verification from suppliers thatthe ‘Berkeley Timber Policy’ is beingadhered to.

Berkeley is a leader in the business of urban regenerationin Britain. The company has an unrivalled understandingof the land development market and has become an expertin creating mixed-use communities in towns and cities.This is now the principal focus of its activities.

Berkeley is a public company. It is led by Tony Pidgley,who – with Jim Farrer, the company’s Life President –founded the business some 30 years ago.

The marketing suite atSt James’ GrosvenorWaterside development.

Contents

2 Chairman and Managing

Director’s introduction

4 Legacy

5 Sustainability strategy

8 Development process

8 Land acquisition

12 Planning and concept design

16 Construction

18 Detailed specification

22 Sales and marketing

24 Workforce

26 Target progress 2004/05

28 Sustainability targets 2005/06

Back Advisers’ statementcover

is elemental to ourbusınessSustainability

2005FinancialhighlightsEarnings per share(p)

The return to shareholders

92105

116

130121

01 02 03 04 05

Net assets per share adding back B share redemptions (p)

01 02 03 04 05

Operating profit including joint ventures (£m)

178

213232 235

215

01 02 03 04 05

628717

829

944

558

2004 B share £5 paid on 3rd December 2004

2006 B share £2 expected on 29th December 2006

2008 B share £2 expected on 31st December 2008

2010 B share £3 expected on 31st December 2010

Total £12

B share redemption

Payment to shareholders First £604.1 million (£5 per 2004 B Share) made in December 2004

Strategic review On target to meet next tranche (£2 per share) in December 2006.Further payments scheduled for December 2008 (£2) andDecember 2010 (£3)

Net debt £255.1 million net debt from £145.2 million net cash at last year-end, with gearing at 38%

Cash flow £239.9 million of cash generated before financing and dividends

Operating margins Group house-building operating margins, excluding land sales,up to 18.6% from 17.5%

Pre-tax profits Down 11.7% to £202.9 million

Earnings per share Reduced by 7.2% to 121.0p

Net asset value per share Up 12.5% to 1,062p if 2004 B Share payment (500p) is included. Down 40.9% to 558p following B Share redemption

Return on capital employed Increased to 22.2% from 21.4%

Land holdings 27,278 plots – up from 26,654

Forward order book £948.0 million compared to £945.3 million last year-end

Crosby disposal Disposal of Crosby for £235.7 million and £15.0 million in respect(post year-end) of working capital provided to Crosby since 30th April 2005,

completed on 8 July 2005

2 www.berkeleygroup.co.uk

Evolvingour sustainabilitystrategy

Chairman and Managing Director’s introduction

Alongside good health and plentifulfood, a home ranks as one of the coreessentials of life. In Britain, our economy,transport, employment and qualityof life are all linked to the availability,affordability, location and quality of ourhomes. A thriving market for housingprovides the economic means by whichwe create new communities and givenew life to old ones.

So, housing is too precious a resourceto take lightly. It’s essential to our wayof life. Essential to economic progress.Essential to the raising of living standardsfor all in our society. At Berkeley, becausewe take housing seriously, we take ourresponsibilities seriously too. In how we

Berkeley HomesBerkeley Homes’ urban regenerationschemes reflect the company’s focuson bringing dynamic mixed-usedevelopments to brownfield land acrossLondon and the South-East.www.berkeleyhomes.co.uk

St George Operating solely in London, St Georgeis creating some of the capital’s leadingand most pioneering, large-scaleregeneration schemes.www.stgeorgeplc.co.uk

St JamesEstablished as a joint venture companybetween Berkeley and Thames Water,St James Homes has quickly forged animpressive reputation for the innovationand quality brought to bear on itsdevelopments in the South-East.www.stjameshomes.co.uk

Crosby HomesCrosby specialises in the urbanrenaissance of towns and cities acrossthe Midlands and the North of England,where its major developments haveestablished the company as a marketleader. www.crosbyhomes.co.uk

Berkeley FirstBerkeley First is believed to be the firstprivate sector developer focused solelyon affordable-led accommodation,delivering well-designed and attractivehomes to key workers and students.www.berkeleyfirst.co.uk

Our building blocksBerkeley operatesthrough a numberof strongly brandeddivisions. These aremanaged in anautonomous manner,but each draws onthe financial strengthand managementexperience at thecentre of thecompany.

Berkeley’s sustainability strategy coversall of the company’s divisions. The datapresented within this report, and the casestudies highlighted, relate to the company’sfive main divisions – Berkeley Homes plc,St George plc, Berkeley First, Crosby Groupplc and St James Group. Together theyrepresent 95% of the company’s value.

Who we are

www.berkeleygroup.co.uk 3

find land to build on. How we plan.How we build. How we make sure thecommunities we create thrive. And howwe help the communities that arealready there.

As demand for housing continuesto grow, we will not shrink from ourresponsibility to find ways to meet it –and ways to minimise the environmentalimpacts that this demand will inevitablycreate. It’s a huge challenge. The countrydemands more and more housing,but also wants a legacy for the builtenvironment of which this generationcan be proud. That’s why we are nowfocusing our expertise on the creation ofmixed-use communities on brownfield

land in towns and cities across Britain.More than any isolated office blocks,or a solitary residential development,large-scale mixed-use regenerationschemes can permanently and radicallytransform the heart and face of a town,and herald a new era of fortune andvitality. All public policy makers nowembrace this reality, and Berkeleyis proud that its business is recognisedas being in the vanguard of unlockingthis potential.

This creation of attractive and sustainablecommunities is at the heart of Berkeley’sbusiness. It ensures we maximise valuefor our shareholders. It reinforces ourcommitment to continuous improvement.

Brewery Square is a striking exampleof successful brownfield development.Built on the site of a former brewery,its 198 apartments, 6 town houses,and over 2,000m2 of retail space havecreated a whole new community in theheart of London.

Over 95% of our developments are on brownfield sites

Tony Pidgley, Managing DirectorRoger Lewis, Chairman

And it keeps us focused on theregeneration of redundant land.

This is our fourth Sustainability Report.We have worked hard this year to makethe policies outlined in previous yearspart of the very DNA of our business.We are succeeding, but are not yetsatisfied – and this year have setourselves a range of new targets todrive us further forward. We remainenthusiastic about meeting thesecontinuing challenges and being partof the cutting edge of land developmentin the United Kingdom. Housing is tooimportant to treat any other way.

Thank you for reading this report.And please do let us know your views – whether you are an investor,a customer or any other form ofpartner in our business.

Roger Lewis, Chairman

Tony Pidgley, Managing Director


This is Berkeley’s fourth annualSustainability Report. Each yearBerkeley has evolved its approach toreporting to ensure that it gives theclearest possible portrait of how itsSustainability Strategy and policies areput into practice throughout the group.

This year, Berkeley has concentratedupon the legacy that its projects leavebehind for the community and for futuregenerations. The intention is to providereaders with more comprehensiveexamples of the processes involved inbringing a site to development and theway in which Berkeley’s sustainabilitypolicies and expertise are appliedthroughout this process. The reportprovides information in relation to thekey stages of development for eachproject – land acquisition, planning andconcept design, construction, detailedspecification and sales and marketing.Each of these phases is illustratedby the use of detailed case studies,together with examples of otherinitiatives drawn from across the Group.

Legacy

Royal Arsenal, Woolwich, exemplifiesa mixed urban development. Ultimately,the 76 acre site will form a whole newneighbourhood in London, creatinga sustainable community in a historicriverside setting.

Sustainability strategy

Key sustainability impactsThe illustration below shows thefour principal objectives of thestrategy (see page 6).

indicated that Berkeley’s managementof sustainability risk is above theaverage for its peer group and is nowrated at BBB+.

2 Operating efficiently: Berkeley workshard to ensure that the constructionprocess is managed as efficientlyas possible. The review of wastemanagement practices (see page 16)and the Constructing Excellence projectat St George Wharf are two examplesof work in this area.

3 Creating new opportunities:Berkeley’s strategic decision to focus itsactivities in the field of urban regenerationprovided an emphatic demonstrationof its commitment to sustainablecommunities. This is where its expertisehas enabled Berkeley to build uponits strong skills base and create newbusiness and employment possibilities,maximising the opportunities from landin towns and cities and embracinga public policy agenda which favourssuch regeneration.

4 Engaging with stakeholders:Berkeley’s commitment to engage withits stakeholders remains central to itssustainability strategy. Berkeley remainscommitted to strengthening itsrelationships with all of its stakeholders,whether this is at a local, regional ornational level, and endeavours to workwith them to ensure that it can continueto provide both good quality homes forits customers and communities that willstand the test of time. > > >

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The sustainability strategy aims tomake a long-term contribution to theenvironmental, social and economicfabric of the communities in whichBerkeley works and to secure thebusiness advantages this offers.

Berkeley’s sustainability strategyhas four key principles at its heart.

1 Managing risk: Sustainability issuesform a crucial aspect of Berkeley’s riskassessment process for all projects,including at the initial stages ofpurchasing land. This year thecompany has introduced a detailedLand Purchase Risk AssessmentSustainability Checklist (see page 8for more details) to form part of thiskey process. This is implementedon all new sites, thereby ensuring thatsustainability objectives are integratedfrom the earliest stage. Berkeley hasalso been assessed each quarter usingthe SERM Risk Rating methodology.Initially an overall risk rating of BBBwas achieved. The SERM report

sustainability strategy (resulting in anew strategic sustainability plan).

• Monitoring, reviewing anddisclosing: All of the divisions arerequired to report on their progressin relation to Berkeley’s targets and KPIson a quarterly basis. This year, a newreporting format was developed toencourage greater consistency in thisreporting. Berkeley continues to discloseinformation in relation to sustainabilityin its annual report and accounts, on itswebsite and in this free standing report.

• Sharing good practice: With anincreasing number of projectsimplementing sustainability initiatives,Berkeley wants to ensure it learns asmuch as possible about the challengesand opportunities that arise. Thecompany has a number of formal andinformal mechanisms for sharing goodpractice, such as Sustainability andHealth and Safety working groups,the company Intranet, good practiceguidance notes and briefings.


• Understanding sustainability issues:The four principal objectives ofBerkeley’s strategy (see page 5) werebased upon a review of its mostsignificant sustainability impacts. Theseare reviewed on a regular basis. A fulllist of Berkeley’s specific impacts canbe found at www.berkeleygroup.co.uk,together with the previous sustainabilityreports which evolved Berkeley’sapproach to addressing each of theseimpact areas.

• Establishing our commitment:Berkeley’s sustainability policy is subjectto review each year. Together witha number of subsidiary policies coveringspecific issues such as environment,health and safety and equalopportunities, it sets out the keysustainability objectives for the company.From time to time Berkeley developscompany-wide policies concerningspecific impact areas where a consistentapproach can be taken across all of thedivisions. For example, last year itdeveloped a company-wide timber

policy and this year has developeda ‘working at height’ protocol.

• Measuring our impacts: Berkeleyhas been measuring its sustainabilityperformance since 2002 againsta number of Key Performance Indicators(KPIs). This year it carried out anextensive review of its KPIs and will beintroducing a number of new indicators,and amending or dropping some of itsexisting indicators. More informationis provided on this at the end ofthis report.

• Implementing managementsystems: Berkeley operates a devolvedmanagement structure. This year thedivisions have made substantial progressin developing their sustainabilitymanagement systems. Examples includethe development of an environmentalmanagement manual for St George,St James’ review of their managementmanual to incorporate sustainabilityissues and Berkeley Homes’ andBerkeley First’s strategic review of their

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sustainability strategy have twofundamentals at their heart:communication with stakeholdersand an ongoing commitmentto improvement.

GovernanceThe governance procedures in placerelating to sustainability issues include:

• Board reports – Berkeley’s quarterlyBoard reports include details ofperformance in relation to itssustainability KPIs and additionalqualitative information concerning theimplementation of the Company’ssustainability strategy.

• Heads of Divisions meetings –The Heads of Divisions meetings haveplaced significant emphasis onsustainability issues this year, particularly in light of Berkeley’s long-termbusiness strategy to focus on urbanregeneration projects.

• Sustainability Working Group (SWG)meetings – Sustainability WorkingGroup meetings are held once a quarterand are made up of Board and seniormanagers from across the main divisionsof the company. The SWG reviewsprogress towards targets, performance

in relation to the sustainability KPIsand shares good practice in relationto sustainability issues. Externalindependent strategic sustainabilityadvisers attend the meetings to provideindependent counsel on Berkeley’sstrategy and the SWG also occasionallyinvites outside speakers to makepresentations to the Group.

• Divisional Sustainability WorkingGroups – Berkeley Homes, St Georgeand St James have their own internalsustainability working groups, whichmeet on a regular basis in orderto ensure that the divisions areimplementing their own sustainabilitystrategies. These report into theGroup SWG.

Benefiting from stunning landscapedareas, water features and a uniquesetting, at Chelsea Bridge WharfBerkeley Homes are developing aninnovative mixed-use scheme toregenerate an important site adjacentto Battersea Power Station.

For more detailed information aboutspecific impact areas, please referto the website:www.berkeleygroup.co.uk or contact Berkeley at:[email protected] full statement of Berkeley’scorporate governance is containedin its annual report.



An imaginative approach to landacquisition The site of Charter Quay in Kingston-Upon-Thames had been left derelictfor a number of years and this hadadversely impacted on Kingston’sancient market square, which wasspiralling into decline. St George boughtthe land, and following extensive publicconsultation, an imaginative design wasagreed that met stakeholderaspirations. St George went on tosecure planning permission and thescheme’s success reflects theexceptional partnership that has beenforged between the public, private andcommunity sectors. The resultingsocial, environmental and economicbenefits to the neighbourhood will beimmense. It was a complicated site,with much to consider. Two key areaswere the site’s past and heritage, aswell as the site’s natural environment.

Respect for the pastRespect for the past was a key themein the planning and design of thedevelopment. St George provided time,logistical support and funding fora successful programme of majorarcheological excavation on the site.Important insights were gained into howthe town of Kingston developed froman Anglo-Saxon settlement to the townit is today. Public exhibitions were heldand a book published to show theimportance of the site, and artefactsfrom excavation are now on permanentexhibition at the Kingston Museum.To retain these important links to thepast, St George worked closely withEnglish Heritage, Kingston Council,the Environment Agency and localconservation groups to create a highquality design that included extensivereference to the town’s history. The new

The process in action

Charter Quay Seeing the potential

Understanding the risks and opportunitiesBerkeley’s years of experience have seenit steadily build a bank of knowledgethat has informed its approach to sites,and has created the very sustainabilitychecklist that is now used to assistthe acquisition process. Whetherit is ensuring that a site’s heritageis preserved, or its natural environmentprotected, understanding the risks –or, as importantly, the opportunities –at its sites is one of Berkeley’shighest priorities.

For each plot of land Berkeley acquires,rigorous investigations are undertakento ensure that it has fully understoodthe risks and opportunities associatedwith the potential development.Sustainability issues have alwaysfeatured prominently in this process.This year, as part of the continuousprocess of embedding its sustainabilityprocedures, Berkeley has introduceda new sustainability checklist to beused during the acquisition process.This is now being implemented on all

“It may seem difficult to believe that this onedevelopment could be soimportant to a town that manyconsider the epitome of awell-off Surrey market town.However, Kingston has beenan industrial town and hometo many famous hightechnology names. Thismanufacturing base has nowgone and Charter Quay is abenchmark example of howregeneration flows from theimaginative use of redundanttown centre sites.”Graham P McNallyKingston Town Centre Manager

new sites as a mandatory requirement.Structured according to Berkeley’ssustainability objectives, the checklistcovers a wide range of sustainabilityissues and demonstrates the breadthof investigative work that Berkeleyundertakes on all of its developments.

This checklist enables Berkeley to makean assessment of risks involved andto determine opportunities to implementbest practice initiatives. Furthermore,

where Berkeley go on to acquire thesite, the checklist provides an excellenttool to effectively address sustainabilityissues in the planning, design,construction and marketing ofthe development. > > >

Sustainability Objectives Key Risks/Opportunities

Protecting and enhancing the Pollution, Land Use, Energy,natural environment: Ecology, Waste, Materials, Transport,

Flooding/Water.

Building Communities: Local Economy & Employment,Housing Choice, Community Investment, Accessibility, Safety & Security, Historic Conservation.

Engaging with Stakeholders Identification of key stakeholders and their interests.

Contributing to a safe and Potential health and safety risks andhealthy workforce requirements.

Development process

Land acquisition


St George provided the means fora major, successful archeologicalexcavation at the historically significantCharter Quay site.

Many of the exciting finds are now on permanent display at theKingston Museum.

design incorporated a mix of styles, withquality contemporary design frontingthe River Thames and the historicmarket square frontage incorporatingmedieval, Stuart and Georgian features,reflecting the historic urban landscape.A Jacobean staircase was carefullyrestored and was incorporated into oneof the new shops providing a tangiblephysical link between the old Castle Inn,where the original staircase stood, andthe new Charter Quay development. > > >

• Providing significant new areasof open space.

• The creation of new habitats,particularly wetland habitats.

• Opening up riverside walkways andproviding access to the River Thames.

• Increased public permeability.

• Retaining and protecting existingmature trees.

• Encouraging diverse planting schemesappropriate to specific locations.

• Interpretation of habitats to contributeto education and raising the awarenessof the importance of biodiversity.


Land acquisition> > >

Protecting and Enhancing theNatural EnvironmentAs the majority of its developments areon brownfield land Berkeley can makea significant contribution to protectingand enhancing local ecological diversity.Not only does this enable the companyto make a positive environmentalcontribution, but it can also be animportant factor in improving the qualityof life for local residents. Berkeley’sapproach to site surveys thereforeembraces the many responsibilitiesdevelopers have towards the naturalenvironment. Such duties are wide-ranging, and an extensive site surveyis vital in ensuring that all risks areunderstood and all opportunitiesconsidered. Understanding the natureof this task at site survey stage ensuresthat the design and constructionprocesses can be managed with thesekey issues in mind. And they are largeissues indeed. Whether it is timing buildprogrammes to minimise disruptionduring nesting seasons, or creatinglandscaped designs that introduce

new species of plants and trees,environmental concerns can alter thefuture face of Berkeley developments.

When ecological and environmentalissues are to be considered, Berkeleyfrequently seeks to marry its ownexperience of site development withthe knowledge of external experts.Recently, St George commissionedan independent consultant to undertakea detailed review of the contributionmade to biodiversity on some of itsmajor projects. Such a review isemblematic of Berkeley’s approach tosustainability. By working in partnershipwith a wide range of external bodiesand authorities, Berkeley can ensurethat the diverse issues surrounding theirdevelopments can be catered for.This review highlighted the importantcontribution made to:

A haven for wildlifeCharter Quay had been derelict formany years and a whole host of floraand fauna had emerged where formerbuildings had stood. An ecologicalconservation plan was produced,detailing how the ecology of the sitecould be saved and enhanced. Plansincluded: the formation of a wetlandarea with reed beds to providea spawning habitat for fish; theincorporation of breeding and roostingsites for bats and birds with holes andperches for Kingfishers; and undertakingriverwall treatments to enable plantsand vertebrates to thrive. Extensivework was undertaken on the nowestablished wetland area to insure itsconservation. This included a newfloating reed bed, a variable depthchannel and extensive erosion control.Roof gardens were also created on twoof the blocks, providing additionalwildlife habitats and extra open spacesfor residents.

> > >

The long-term environmental impactsassociated with the development werealso a key feature in the design, whichfocused on minimising car use andencouraging residents and visitors towalk or use public transport. CharterQuay is close to the town centre, withaccess to shops and facilities, as wellas numerous bus stops and Kingstontrain station. There are five routesthrough the development linking thehistoric market square and the newtheatre (provided as part of thedevelopment) to the river walkway.There are public bike stands on the site,


Charter Quay

The ecological conservation planadopted at Charter Quay led toextensive work that has ensured theimportant wetland area thrives.

as well as five secure compounds forresidents within the basement carparks providing just less than one cyclespace per dwelling. Some of thedwellings were also able to achieveSAP ratings of over 100, a reflectionof their energy efficiency.

Original features are blended withmodern settings at Charter Quay, wherethis Jacobean staircase was carefullyrestored and incorporated.


Protecting our InheritanceThere are few places in the worldwith such a rich architectural heritageas Britain. Preserving that heritagefor future generations is a nationalresponsibility, which is why conservationand restoration are so importantto Berkeley. In a recent publication,‘Protecting our Inheritance’, Berkeleysummarised the contribution that theyhave made to bringing historic buildingsback to their former magnificence.These developments range formindividual buildings such as the Grade II Listed Burford Lodge inDorking and Milford House in Surrey(designed by the architect Tom Smithin 1735), to major sites such as RoyalClarence Yard in Gosport, GunwharfQuays in Portsmouth, Smithfield Marketin Manchester and the Royal Arsenalin Woolwich.


Berkeley is committed to listeningto the concerns and aspirations of thecommunities in which it works.Stakeholder engagement forms a centraltheme in all Berkeley developments.Planning Policy Statement 1: DeliveringSustainable Development, placesa strong emphasis upon stakeholderengagement in the planning process,particularly with local communities. TheHungate site at York, where Berkeleyis the lead developer, provided a uniqueopportunity to create a new urbanneighbourhood within the heart of ahistoric city. Crosby Group recognisedat a very early stage in the project thatthe local community should playa crucial role in helping to shape thenature of the development.

A community visionTo ensure that the community isfully involved in the design process,a community engagement strategywas developed. Central to this wasa Community Planning Weekend,

facilitated by independent experts.The weekend involved two days ofworkshops and hands-on planningsessions looking at the future of Yorkand the site itself. Over 250 peopleattended the event and the mainconsensus points were analysedand evaluated by the Masterplannersbefore an overall vision for Hungatewas developed.

It is consultation, and partnerships suchas these, that ensure that the hugepotential of sites like Hungate can berealised. The Community PlanningWeekend ensured that all of theconcerns of the local community werevoiced and addressed.

Crosby Group’s response to thecommunity consensus points wascarefully formulated to meet all of thesepriorities and the design vision forHungate addressed them fully. Fromthe creation of a new crossing overthe River Foss, to the types of tenureto be built, the breadth of consultationat Hungate is typical of Berkeleydevelopments. It is only by suchpartnership with the local communities

that the design solution can be madethe best possible for all involved, andit is how the vital details are workedout. For instance, at Hungate, theMasterplan was revised to preservea medieval church and cemetery, whilea new riverside walkway and River Fosscrossing will be provided. It is listeninglike this that makes Berkeley succeed.

Long-term neighbourhoodmanagementFor Berkeley, it is vital that consultationdoes not end at the planning anddesign stage. One of the mainrecommendations from Hungate’sCommunity Planning Weekend wasthat community involvement should beongoing during the development of theMasterplan. The Hungate CommunityForum was created and met ona monthly basis to discuss theproposal. The Forums have beenregularly attended by between 50 and70 people and groups have beenformed to discuss further areas suchas urban design and housing, transport,environment, culture, enterprise, mixeduses and archaeology. The Forum hasmade an ongoing and important

The planning and design processes arecrucial to the effective delivery ofsustainability objectives, for it is duringthis phase of the development that thestrategic objectives for the site aretranslated into the design. What isequally crucial is that the concerns andaspirations of the local communities arerecognised, and addressed, especiallyas sustainability issues are becomingan increasingly important considerationin the planning process.

Berkeley believes that its approachto consultation and sustainabilityis instrumental in its ability to maximisethe planning potential of its sites. ManyLocal Planning Authorities now havesustainability Supplementary PlanningGuidance and Checklists, and Berkeleyensures that it not only respondsto these, but also demonstrates howit implements best practice. Forinstance, St James introduceda sustainability checklist for projectssome time ago and, more recently,Berkeley Homes and Berkeley Firsthave introduced a checklist based uponthe sustainability model produced

by the South East England DevelopmentAgency (SEEDA). By introducing thesechecklists at an early stage in theplanning process, Berkeley ensuresits design teams and consultantsincorporate sustainability principlesinto the concept design.

However, it is the combination of suchmeasures and checks with communityconsultation that ensures the planningand design of Berkeley sites meetsthe aspirations of all involved. Berkeleyengages at an early stage with thevery people at the heart of theirdevelopments – local communities.By listening to their concerns for theirareas Berkeley is able to incorporatetheir views on such diverse mattersas the types of tenure involved,protection of the environment,and sites’ existing heritage. > > >

Planning and concept design


Hungate


Topic Community Engagement Consensus

Mixed Use A wide variety of uses would generate a sustainable,Neighbourhood vibrant and attractive new quarter for York City Centre.

Mixed Tenure A range of new housing units, including some affordable Neighbourhood units, would help to create an integrated community.

Urban Form The development should respect and complement the existingurban grain of the city centre, generally reflecting its street andpublic space patterns.

Pedestrian & Cycle The car should not dominate the public spaces, which Priority should reflect the quality of the pedestrian priority areas

in the city centre.

Access There should be new pedestrian and cycle routes acrossthe River Foss from the south and east to increase thepermeability through Hungate to the city centre and localcommunities.

Heritage New streets and public spaces in the area should reflect thehistorical patterns of this quarter of the city.

Ecology The River Foss and Foss Islands Nature Reserve should becleaned up and properly maintained. Edges should beenhanced to encourage a diversity of wildlife.

Community/Cultural/ A new building should be provided for community, Leisure Building cultural and leisure uses.

Archaeology The archaeology of the area should be documented andrespected. The location of a former medieval church andcemetery offers the opportunity for creating a new publicspace over the site of the former burial ground.

contribution to the Master planningprocess and in defining the characterof the proposed new neighbourhood.

A ‘Hungate Community Trust’ hasalso been formed by local people andinterested parties, the role of whichis to manage community, enterpriseand environmental matters. It is justone of the many ways that Berkeleyensures it discharges its duties andresponsibilities to the local communityat Hungate, and all of its otherdevelopments.

Above: Lyme Wharf, Camden.

Shopping Centre

Library

Cultural Centre

Sports Centre

Recreation Park

park, are recognised as contributingto the increased diversity and growthof local economies, while creating newopportunities and facilities forcommunities. Berkeley is delightedto be in the vanguard of this change.


Following the relocation of the existingsewage works to a nearby site, ManorFarm in Reading provided St James withthe opportunity to secure theredevelopment of a major urban siteand a unique opportunity to work withReading Borough Council and theirstrong emphasis on sustainability issues.The Council has identified a specific needto address a real housing shortagewithin the area of the town. St James’development aims to meet this need,by providing good quality housing witha broad mix of tenure types, the designsof which will incorporate ‘Lifetime Homes’criteria. Indeed, some 850 dwellings,including 30% (255) affordable units,will be delivered in association with theRegistered Social Landlord.

Beyond housing, St James and ReadingBorough Council were eager to secure

a fully sustainable community andto ensure that the town, as a whole,feels the benefits of the development.A full socio-economic assessmentis being undertaken to ensure that thefacilities meet local needs andcomplement and enhance existingfacilities within Reading. The townis a key location for over 17 nationaland international businesses, including9 business HQs in the financial andcommercial sectors. There is a heavyemphasis on the technology sector,and the Manor Farm development willcontribute towards increased diversityof the local economy. Including 11,150m2

of commercial office space and a 200bedroom hotel, the developmentwill seek to capitalise on the closeconnection with other employmentcentres and seek to attract further inwardinvestment into the area.


Reading Gateway

Responding to local needs

Sustainability Beyond the Site:Sustainability is perhaps most oftenassociated with the many things thatare done on-site and in the homesBerkeley build. But that’s only part ofthe story. Berkeley knows that itsimpacts make a very real and verylasting difference to towns and cities asa whole. So, Berkeley works closelywith local and regional stakeholders,communities, and authorities to ensurethat sustainability principles are appliedbeyond its sites. What form this process

Planning and concept design

takes differs, of course, from placeto place. What is common, however,is the fact that the regeneration of majorurban sites can provide uniqueopportunities to drive the next stageof an areas growth. With local andregional authorities as keen as Berkeleyto place a strong emphasis onsustainability, such objectives quicklycome to underpin the whole of theDevelopment Framework. As a result,mixed-use developments, more thanany solitary housing block or business

In addition to a total of between 900 –1,000m2 of community facilities that areto be provided on site, a cultural strategyhas also been developed. This aimsto create a unique identity for thedevelopment through a ‘place making’approach that contributes towardsReading’s City 2020 vision. In additionto public art, discussions are takingplace with the University of Reading’sSchool of Fine Art, with a view toproviding a schools gallery to exhibitthe work of students, lecturers, visitingartists and travelling exhibitions. Thisgallery could form part of the communityfacilities to be incorporated within thedevelopment. It could offer studios,workspaces and performance rehearsalspaces for participative arts in line withReading’s aim of providing space andsupport for creative industries.

Right: Manor Farm, Reading Gateway, willbe a major redevelopment in partnershipwith Reading Borough Council.

> > >



Constructing excellence: St George Wharf is a landmark mixed-use development in Vauxhall, on thebank of the River Thames, andis a demonstration project under theGovernment’s Constructing Excellenceprogramme. The seven-acre site,dormant for 35 years, will be transformedinto a mixed-use developmentof 100,000m2, with over 900 residentialapartments, offices, restaurants, retailand leisure facilities. In three key areasBerkeley has worked to ensuresustainability principles are appliedto the construction phase.

Building a team: On this site, St Georgeacted as the client, developer andprincipal contractor, thereby controlling

the project and promoting a focuson collaborative enterprise. A projectteam, based on site, was created thatencompassed all the disciplinesof construction and ensured efficientproject delivery.

Construction innovation: The projectinvolved the construction of fivestepped towers with ‘gull wing’ roofsthat cascade down to the river. The keyelement of innovation related to theconcrete frame superstructure of thebuildings. Detailed site diaries of theconstruction process were kept anddata revealed that a large number ofhours were spent constructing thevertical elements of the building,providing a strong driver to consider

alternative methods. Working closelywith the Building ResearchEstablishment, St George was ableto incorporate the findings of theCardington Concrete frame project,resulting in a significant reductionof 39% in operative hour days fromPhase 1 to Phase 2. A steering groupwas set up to oversee the project andto ensure that the findings weredisseminated widely throughout theindustry. St George Wharf is alsoa safety success story and a modelfor putting people first, achieving overone million hours without a lost timesafety incident in 2001.

Building successSome years ago the Egan and LathamReports identified the inefficiencies withinconstruction, the most visible aspectof the development process. It isduring this time that the vision createdin the planning and design phasesbecomes reality. It is also Berkeley’smost public interface. It is, therefore,essential that the commitment tosustainability is effectively implementedand communicated. Thus, eligiblesites register with the ConsiderateConstructors Scheme and a communityliaison officer is appointed on allmajor projects.

These principles extend right the waydown to the suppliers Berkeley usesat its developments. Good relationshipswith these are critical to the effectivedelivery of projects and form a crucialaspect of Berkeley’s sustainabilitystrategy. Intelligent procurement is notabout aggressive tendering andBerkeley implements a commercialtesting process when procuring tradecontractors. This encompassesa comprehensive assessment of the

contractors’ ability and resources toensure that proper standards of quality,safety and sustainability performanceare achievable. It’s just one of the manyways that Berkeley dischargesits responsibilities.

Waste Management ReviewIn light of continuing increases in landfilltax, the changes in waste acceptancecriteria and the costs and environmentalimpacts associated with waste disposal,Berkeley commissioned an independentconsultant to undertake a review of thecompany’s waste managementpractices. The aim of the project wasto review existing waste managementpractices, highlight and recommend

Construction

Managing the construction process from the ground up

good practice and recommend highlevel waste policy and strategy.

The review made over 50 detailedrecommendations concerning wastepolicy, data, practical implementationand specific waste streams. One of theexamples of best practice highlightedwas the collection of waste data at theSt George Battersea Reach site, wherethe project team has been working witha specialist waste contractor toimplement an integrated wastemanagement strategy. This data typicallyshows that 20% of the site wasteis being sent directly for recycling,with a further 64% being sentto a Materials Recovery Facility (MRF).


St George Wharf

Average number of 7 yard skips removed per dwelling


Creating partnerships: At St GeorgeWharf, long-term relationships weredeveloped with suppliers, givingSt George security of control of itssupply chain and guaranteeingstandards of quality while delivering thesuppliers business and profit stability.By working closely with the supplierwho won the contract to provide andinstall the concrete wall panel systemand supply the balconies, St Georgewas also able to incorporate drain-hoppers, pipework and rainwatergoods, waterproof membrane tilingand the spigots for the balustradesinto the off-site fabrication process.By encouraging the same supplierto invest in IT and training, St Georgenow has an open-book pricing systemthat enables them to plan their costsmore effectively.

Measuring our performanceData that St George has collected fromits own KPI systems has been fed intothe Housing Forum demonstrationproject. It is often difficult to compare‘out-turn’ results with other residentialdevelopers building in greenfield sites as

the challenges and forms of constructionare so different. However, St George hasbeen able to demonstrate continuousimprovement by benchmarking its ownproduct, comparing its ‘out-turn’ resultsfrom building to building. From phase 1to phase 2, there was a 39% reductionin construction time plus a 16% increasein productivity.

“St George is at the forefrontof construction innovation.The industry recognisesSt George for theirconstruction excellenceand improved initiativeon delivering developments.” Paul Everall, Head of BuildingsRegulations Division, Office of theDeputy Prime Minister

Berkeley First’s ‘Paragon’ site in Brentfordis another example of innovative designand construction. The project consistsof 839 student en-suite rooms, 221 key worker apartments and a12,100m2 university teaching facility.Using modular design and constructionthe units come to site fully furnished,leaving only the mechanical andelectrical connections to be completed.This reduces waste, incorporates FSCcertified timber and minimises workingat height danger.

Preparing for a solar centuryThe increasing emphasis on theprovision of on-site renewable energyin the planning process has ledBerkeley to explore the feasibilityof a range of technologies on itsdevelopments. > > >

sunlighting and daylighting to maximisethe opportunities for passive solar gainand 33 out of the 35 houses will havesupplementary heating providedby solar water-heating panels. Theaverage Carbon Dioxide emissions arepredicted to be 24.85 kg/m2/yr. Allappliances will be A rated for energyefficiency. Water supply is treated withthe same level of care: lowerconsumption taps and dual flush WCswere considered as part of the design,while the average water consumptionis just 44.05 m3 per bed per year.

Well-being: In addition to meetingEcoHomes criteria, the majority ofdwellings are built as lifetime homesand the homezone areas ensure rampsare provided to aid accessibility.Furthermore, all housing associationunits will be built with ‘secure bydesign’ standards. The project is signedup to the Considerate ConstructorsScheme and has sought to support thelocal economy through the sourcingof goods and the employing oflocal labour.


Ropetackle, a Berkeley Homesdevelopment in Shoreham-by-the-Sea,is the flagship scheme at the heartof the Shoreham Maritime regenerationproject, spearheaded by the South EastEngland Development Agency (SEEDA).Ropetackle has a unique location, closeto the coast, river and town, andBerkeley is creating a wide variety ofnew homes. The scheme is an exampleof truly sustainable development, andin line with SEEDA’s aims, BerkeleyHomes is working to ensure a vibrant,mixed-use community.

Central to the detailed specificationof the development is a commitmentto deliver a project with an EcoHomes‘Excellent’ rating. This is notan insignificant aim – of the 976developments assessed by BREEAMsince 2000 only 19 have achievedan ‘Excellent’ rating, which not onlyencompasses environmental impact,but also helps to ensure a high qualityof life for residents. Such attentionto detail is just one of the many reasonswhy Berkeley is well on its way towardsachieving its goal for Ropetackle.Each of the EcoHomes creditsis gained through addressing a numberof sustainability impacts acrossa variety of areas:

Energy and water: All the housesin the development have been builtto a high-energy performance, withsome achieving Standard AssessmentProcedure (SAP) ratings of 110.The average improvement in buildingenvelope performance above buildingregulations is 32.39%. The developmentdesign took into account aspecting,

Attention to detailSome of the big steps towardssustainability are taken during theplanning design process, but equallyimportant are the small steps that can betaken through the detailed specificationof the dwellings. Once Berkeley hasachieved planning permission, it workshard to achieve its design objectivesand ensure that the projects implementthe standards set-out in the developmentbriefs. Berkeley sets company-widestandards on certain issues, whilein other areas it seeks to gaininformation to understand the mostappropriate sustainability solutionsfor particular projects. One of the keyemerging sustainability standardsis EcoHomes, which assesses anumber of sustainability features withina development and rates the projectas either pass, good, very goodor excellent.

Detailed specification

The process in action:

Ropetackle

Part of the Building ResearchEstablishment’s EnvironmentalAssessment Method, EcoHomesis an assessment criteria that ratesthe environmental qualities of newand renovated dwellings. Ratedby independent experts, the schemerewards developers who improvethe environmental performanceof a project through good design,rather than through high capitalcost solutions. EcoHomesis designed to help tackle climatechange, resource use and impacton wildlife, balancing these issuesagainst the need to provide safeand healthy homes and a highquality of life.

A new dawn in housing


At St James’ development in WorcesterPark (the Hamptons), Berkeley isincorporating 1,240 solar photovoltaic(PV) Sunslates™ into the tiled roofof the central community building.The Sunslates™ convert sunlight intoelectricity and the average numberof electricity units generated by the PVsystem over a year is 14,408 kilowatt-hours. That is enough electricity to makeover 540,000 slices of toast or cookmore than 46,000 microwave meals.The installation of the PV panels hasbeen made possible through a 40%grant from the Energy Savings Trust.

At Berkeley Homes’ Ropetackledevelopment in Shoreham, 33 out of the35 dwellings will incorporate solar panels.The suntube converts sunlight into heatand uses that heat to raise the initialtemperature of the hot water system.

St George has received planningpermission for a fifty-storey tower as partof the St George Wharf development,which is supported by sustainableenergy systems. A wind generatoris planned to be fixed to the top of thetower to provide power for the commonparts. It is also planned that the heatingand cooling systems for the wholebuilding will use the London aquifer asa constant thermal source. The externalenvelope is a triple-walled, self-ventilatedglass façade designed to high insulationand thermal efficiency levels and actsas a natural thermal buffer.

Materials: To ensure that thedevelopment makes reference to thesurrounding historic street fabric 60-70% of all materials used on the sitecome from within a 25 mile radius.The scheme has been designedas a marine village to blend in with theother buildings in the locality by meansof cedar cladding and render flintworkon the facades and gateway building,substation and bin stores. To encouragethe recycling of materials an on-sitewaste management scheme has beenset up with waste being segregatedat source and sent for recycling whereappropriate. To date, 50% of all wasteproduced has been recycled.

Detailed specification

Transport initiatives are in place acrossthe Group and its many developments.They are as diverse as they arewidespread, and are alreadydemonstrating their worth acrossthose developments where they havebeen put into practice:

• Electric Green is a transport serviceat St George Wharf that offers thehire of electric cars on a daily or hourlybasis. The cars are designed for shortjourney use in London and the servicewill encourage residents to be energy-efficient and environmentally friendly.Added benefits include free parkingin central London and exemption fromthe congestion charge. The compactcars fit into small spaces makingparking both easy and convenient.

• A new railway station on the WestLondon Line at Imperial Wharf is tobe built.

• The Royal Arsenal site at Woolwichis located between the River Thamesand Woolwich town centre. The newdevelopment has opened up thispreviously publicly inaccessible area andintegrated it with its wider environment.New transport and pedestrian routeshave linked the Thames with the town,and a new park and walkway are beingconstructed. A new pier has been builtand is now a major addition to the city’swaterside resources.

• Pedestrian access to the ClarenceDock development, in Leeds, is beingimproved by the construction of a newbridge across the Aire and CalderNavigation, and by lifting two bridgesacross Clarence Dock. These bridgeswill also improve public access to thewaterway and improve the Pennine Wayfootpath alongside the Aire and CalderNavigation making it more accessibleto pedestrians and cyclists.

TransportAn important area of technologicaldevelopment is that of transportas Berkeley moves further into urbanregeneration. For example, reducingthe need to travel by locating homesand places of work and leisure closerto one another; encouraging the useof public transport by design; providingfacilities and incentives to reduce caruse; and reducing the environmentalimpacts of transport duringconstruction and thereafter.

Cycle paths and storage facilities arebeing built into the development andconsultation undertaken to implementthe Green Travel Plan envisaged byLeeds City Council. This will requireeach tenant who employs 50 or morepeople to show how they will encouragetheir employees to travel to work bypublic transport, foot, cycle, or car-share.

Driving down environmental impacts


Below: Electric Green, a transportservice at St George Wharf, offers thehire of electric cars to residents forshort journeys around London.

Right: Gunwharf Quays, the BURAaward-winning regeneration scheme inPortsmouth, is a high-quality mixed-usedevelopment situated adjacent to thecity’s harbour and encompasses anenhanced transport infrastructure.


Berkeley is always striving to improvethe quality of the homes it providesfor its customers and was interestedto read new research published last yearby the Commission for Architectureand the Built Environment, HBOS plcand the World Wildlife Fund. Thisrevealed that 87% of homebuyers wantto know how their homes rate in termsof environmental sustainability. So, whilethe demand for sustainable homes maynot yet be explicit, Berkeley knows thatits customers want to live in affordableand accessible homes with good qualitypublic realms and access to a widerange of work and leisure opportunities.Berkeley has, therefore, begun to ensurethat its commitment to sustainabilityis effectively communicated to itscustomers through its sales and

Sales & marketing

marketing suites and site hoardingsand through its corporate and salesliterature. Some examples of this arehighlighted here.

Carbon Dioxide emmissions from Berkeley’s fixed officeskgs of C02 per m2

2001/02 2004/05

95.8

59.7

Below: Bromyard Avenue, Acton.

Greenerhomes

CarbonNeutral® Bromyard Avenue,ActonBerkeley Homes has taken stepsto tackle the climate change impactsof its Bromyard Avenue developmentby making it CarbonNeutral®.

Climate change company Future Forestshas managed the initiative. As a first step,it involved calculating the CO2 createdduring construction and then identifyingopportunities to reduce emissions.As a consequence, Berkeley Homesswitched the site to ‘green’ energy andinstantly reduced CO2 associated withthe development by 1,350 tonnes (18%of total emissions).

Remaining emissions have been offsetthrough carbon credits from sustainableforestry, in Bedfordshire, and renewableenergy projects around the world,meaning that the development makesa zero net contribution to Carbon Dioxideemissions and is CarbonNeutral®.

As a refurbishment project, over 90%of the ‘building lifecycle’ CO2 will begenerated from the residents oncethey move into the building. As partof its programme, Berkeley Homesis connecting all new residents to a‘green’ energy provider, and thecontract is now out for tender. The518 homes at Bromyard Avenueconnected in this way representsaround a 1% uplift in the total numberof UK homes currently signed to greenenergy and could save around 20,000tonnes of CO2.



Ropetackle: A specific area of themarketing suite was set for sustainabilityissues including the SEEDA MissionStatement for Sustainability on the Site.

Ropetackle: Information on GreenEnergy providers is included in theHand Over Packs.

Imperial Wharf: Wildlife brochure


Equal opportunitiesBerkeley’s Equal Opportunities Policystrives to ensure that all employees,potential employees, and otherindividuals receive equal treatment(including access to employment, trainingand opportunity for promotion) regardlessof their age, colour, disability, ethnic ornational origin, marital status, nationality,religion, race, sex or sexuality. Forexample, St George contributed to theEQUAL Programme, a European Initiativewhich aims to test and promote newmeans of combating all forms ofdiscrimination and inequalities in thelabour market.To date over 120 peoplehave been helped through thisprogramme. Of these 61% have comefrom ethnic minority groups, 26% werewomen and 10% were older workers.

Occupational Health & SafetyEvery Berkeley site implements fullhealth and safety management systemscompliant with the Health and SafetyExecutives Guidance, HS(G)65 on allits sites, with zero-tolerance for non-compliance. These standards are auditedand reported on to the main Board.

Each division has its own dedicatedHealth and Safety management team.All of our staff receive a comprehensivesafety management training programme,the foundation of which is the five-dayCITB Site Managers course. Berkeleysupports the CSCS registration schemeand is progressively implementing theCSCS card scheme for site operatives.

This year, each operating division hasreviewed and updated their operatingprocedures, including supply chainassessments, site glove policy anda working at height protocol. Resultingfrom the introduction of new regulationsregarding work at height, a minimumstandard was agreed by the Health andSafety Working Group, in liaison withthe HSE. This standard has beenimplemented across all sites by alldivisions and forms the basis of thefuture work at height protocol acrossthe Group.

Training & DevelopmentBerkeley is determined to ensure thatall its employees receive appropriatetraining. Each division’s training and

development programme is monitoredand reported upon.

Berkeley’s commitment to trainingextends beyond its workforce, anexample of which is the ‘ConstructionCareers in Action’ programme.Pioneered by Greenwich EducationBusiness Partnership and BerkeleyHomes at the Royal Arsenal in Woolwich,the scheme aims to raise awarenessin local schools of the employmentopportunities in the constructionindustry and the underlying trainingand qualifications required. To date,some 60 pupils from two schools haveattended the site activities.

CommunicationBerkeley’s policy of operating throughautonomous subsidiaries has ensuredclose consultation with employees at alltimes on matters likely to affect theirinterests. By means of regular meetings,each company keeps employeesinformed about their division, and of thegroup as a whole. Berkeley is firmlycommitted to the continuation andstrengthening of communication lines

Top right: A school visit in action at theRoyal Arsenal, Woolwich.

Right: Training and developmentin action.

Workforce

Investingin theindustry’sfuture


with all of its employees. Berkeley hasan Intranet to which all employees haveaccess. Individual divisions have theirown areas on the Intranet and also useother forms of communication suchas employee newsletters.

Berkeley is represented on a numberof national committees, includingThe Construction Industry AdvisoryCommittee. Berkeley CommunityVillages, for example, is representedon the Executive Committee of theSouth East Water resources forum,which comprises representatives fromthe water authorities, environmentagencies and the South EastDevelopment Agency (SEEDA).

Construction in progress at theRoyal Arsenal site.

RIDDOR* incident rate per 1,000 employees on all sites

2001/02 2004/05

* Reporting of Injuries, Diseases and Dangerous Occurrences Regulations

11.4

7.4


2004 Targets for the GroupContinue the proactive dialogue with investors and retain ourlisting in FTSE4Good.

Maintain the SWG structure including monitoring theimplementation of the divisions sustainability strategies andperformance against Berkeley’s KPIs.

Provide leadership on sustainability issues through the Headsof Divisions meetings.

Develop a Sustainability Checklist to be incorporated in thedivisions Land Risk Assessment Process.

Review Best Practice in Community Engagement formajor projects.

Review the divisions’ sustainability induction and trainingmaterials with a view to sharing good practice.

Monitor the percentage of sites using the company’s newwaste management tool.

Monitor the implementation of the company’s newtimber policy.

Publish monthly sustainability topics on the Intranet.

Publish five good practice briefing notes on currentsustainability issues for the SWG.

Issue a Sustainability Report for the year 2004/05 and reporton progress towards these targets.

Further development of the Sustainability PerformanceManagement Tool (SPMT).

Progress ReportBerkeley continues to be listed in the FTSE4Good.

The SWG continues to meet on a quarterly basis andto monitor progress to the company’s targets and KPIs.In 2004/05, two additional meetings were organisedto address specific issues in more detail.

Berkeley initiated Heads of Divisions meetings concerningsustainability issues.

This checklist has been completed and is included as partof the risk management process prior to the acquisition of all new sites.

A briefing has been provided to the divisions concerningtechniques for community engagement.

Copies of divisions’ sustainability induction materials havebeen distributed to all of the divisions for their review.

Each division has implemented the waste management toolon at least two major projects.

Monitoring of compliance with the timber policy has begun,with selected divisions writing to their timber suppliers andrequesting information concerning timber sourcing.

Sustainability topics are posted on the Intranet on a bi-monthlybasis. They are intended for all employees and this lessfrequent posting ensures that interest is maintained. Berkeleycontinues to investigate ways to improve the system.

Bespoke briefing notes have been provided to the divisionsconcerning The Mayoral Strategies, The Energy Strategy, andCommunity Engagement. These have been supplementedwith good practice guidance published by industry bodies andother organisations.

Berkeley remains committed to reporting the results of itssustainability programme on an annual basis and tosupplement this with additional reporting in its annual report& accounts and on its website.

The SPMT has been piloted and then reviewed with Berkeley’sindependent sustainability advisers. The tool has been furtherdeveloped and will be implemented during 2005/06.

Targetprogress2004/05


2004 Targets for the DivisionsContinue to implement the divisional sustainability strategiesand report progress to the SWG each quarter.

Record SAP ratings according to different dwelling types witha view to setting improvement targets for each type.

Gather data on the performance of all those dwellingsassessed using the EcoHome methodology with a viewto setting performance standards.

Continue to ensure that all dwellings are fitted with whitegoods with energy efficiency rating of B or above.

Explore the feasibility of integrating renewable energyon major projects.

Explore the feasibility of integrating SUDs on all major projects.

Explore the feasibility of integrating car clubs on allmajor projects.

Ensure that all landscape strategies for major projectsincorporate a consideration of the opportunities toenhance biodiversity.

Continue to ensure that major projects participate in the Considerate Constructors Scheme where it is operational.

Continue to monitor the percentage of local labour employedon all major projects.

Develop an on-site waste management programme to bebuilt into the sub-contractors work plan.

Progress ReportAll of the divisions have made significant progress in thedevelopment of their strategies and progress has beenreported to the SWG each quarter.

SAP ratings have been recorded in relation to new apartments,new houses and refurbished apartments. Berkeley hasreported its performance in relation to these ratings, but willnot be setting any targets until the review of the SAP ratingshas been implemented. Carbon Index data will also becollected to assist in eventual target-setting in this area.

Berkeley is currently gathering data on the numberof dwellings assessed using the EcoHomes standard.Research is currently underway within certain divisionsto understand the technical implications of setting targetsto achieve specific ratings.

This is now included in all standard specifications and somedivisions have made a commitment to specify only A ratedappliances (fridge freezers and washing machines).

With the introduction of the sustainable developmentrequirement in the London Plan and the Mayoral EnergyStrategy, this is now a key consideration on all new majorprojects within all divisions affected. Included within this reportare two examples of the successful integration of renewabletechnology into our developments.

SUDs have now been implemented at a number of Berkeley’smajor projects.

Car clubs have now been implemented at a number of ourmajor projects. Berkeley is monitoring their performance toensure that it communicates best practice across the Group.

Berkeley instructs its landscape consultants to includeopportunities to enhance biodiversity in any strategies thatthey prepare.

All major projects participate in the scheme whereit is operational.

Local labour is monitored in line with local planningauthority requirements.

A review of on-site waste management was undertakenthis year. Implementing the plans – following the nine stepsrecommended by the DTI’s voluntary code of conduct –has now been agreed by the divisions.

Water consumption in our fixed offices m3/employee

2001/02

22.6

2004/05

14.4

Average percentage of dwellings built on brownfield land

Average number of 7 yard skips removed per dwelling

98 96 98 98

6.7

4.83.7 4.7

02/03 03/04 04/0501/02

02/03 03/04 04/0501/02


Sustainability Key PerformanceIndicators (SKPI)Berkeley’s Sustainability KPIs are a vitalaspect of its sustainability strategyas they enable it to assess its successin addressing some of its keyimpact areas.

Berkeley has been gathering dataagainst these Sustainability KPIs since2002. This year, Berkeleycommissioned a detailed review ofthese KPIs themselves, comparingthem with those used by otherhousebuilders, good practicestandards and indicators developedby industry bodies and theGovernment. Berkeley also took intoaccount how successful its indicatorshave been in driving improvements inperformance and how practical it hasbeen to gather and analyse the data.

On this basis, Berkeley has retainedthe majority of its existing indicators,but has amended and dropped some.Berkeley has also adopted some newindicators and will be reporting againstthese next year.

The data set out here shows Berkeley’sperformance against its existing SKPIs:

• The data is the aggregated averagesfor the following divisions – BerkeleyHomes plc, Crosby Group, St Georgeplc, and St James Group.

• The figures for the financial year 2001/02are estimates based upon six monthsdata from Q3 and Q4 of that year.

• The red line on the graph shows thetrend over the past four years.

The management of waste continues to be a keypriority within Berkeley’s sustainability programme.The trend shows that Berkeley has reduced its wasteby 29% between 2001/02 and 2004/05. This yearBerkeley has undertaken a review of wastemanagement practices (see page 16 for more details)and following Berkeley’s SKPI review, it will be pilotinga new project specific SKPI over the next year.

Berkeley’s focus on the regeneration of redundantland in major cities across the UK means that it hasconsistently achieved a performance of over 95%against this SKPI, significantly exceeding theGovernment target of 60%.

This year, Berkeley has decided to focusits targets on a number of priority areas.A focus on urban regeneration meansthat in many cases Berkeley isimplementing good or best practicein relation to the socio-economicimpacts of its developments. For thiscoming year Berkeley has decidedto place greater focus on itsenvironmental performance.

EcoHomes• Increase the number of dwellings

certified using the EcoHomes ratingmethodology.

• Increase the number of dwellingscertified to EcoHomes rating of Goodor above.

Energy• Review detailed specifications with

a view to improving the energyefficiency of Berkeley’s homes.

• Complete Energy DemandAssessments for all new major projects,to include an assessment of thefeasibility of renewable energy.

• Increase the number of dwellings thatare connected to renewable energytariffs by default.

• Complete the pilot carbon offsettingprogramme at Bromyard Avenue,Acton, and draft a case studyto be distributed to other divisions.

• Complete the installation of photovoltaictiles at the Hamptons and solar waterheating at Ropetackle and draft casestudies to be distributed toother divisions.

Waste• Ensure all new sites are implementing

Site Waste Management Plansin accordance with the DTI’s VoluntaryCode of Good Practice.

• Expand waste data gatheringto all major projects.

Berkeley settingsustainability

targets 2005/06

Average RIDDOR incident rates per 1,000 employees on all sites (principal contractor and client only sites)

Average percentage of site managers completing the CITB 5 day safety training course

Average SAP ratings for all dwellings completed

Average carbon dioxide emissions from our fixed offices (kgs of carbon dioxide per m2)

Average water consumption in our fixed offices (m3 per employee)

Average percentage of dwellings fitted with dual flush WCs

11.410.2

6.87.4

90 93 85 93

79.4 79.0 74.7 79.6 95.883.6

97.6

59.7

22.620.4

11.714.4

51

77 7489

02/03 03/04 04/0501/02 02/03 03/04 04/0501/02 02/03 03/04 04/0501/02

02/03 03/04 04/0501/02 02/03 03/04 04/0501/02 02/03 03/04 04/0501/02

Berkeley is continuing to explore ways in which it canmove towards a higher average SAP rating. Someof its new build houses have achieved average SAPratings of over 90, but the high proportion ofapartments and refurbished dwellings that Berkeleybuilds reduces the overall SAP ratings.

In context, the environmental impacts associated with Berkeley’s occupation of property are only a small partof its overall impact. However, Berkeley’s efforts to reduce these impacts is an important demonstration of itscommitment to sustainability and is particularly important when communicating with employees. Many ofBerkeley’s fixed offices have resource efficiency programmes in place and Berkeley has reduced its energyconsumption by 38%, and water consumption by 36% over the past four years.

This data only covers buildings where we have direct control over utilities purchasing.

The trend over the last four years shows thatBerkeley is gradually increasing the potential waterefficiency of its dwellings with almost 90% of alldwellings completed having dual flush WCs installed.Berkeley expects its performance against thisindicator to continue to improve as this is now astandard specification for all new dwellings.

This data includes those sites where the companyis the principal contractor and those where it doesnot have primary management responsibility forhealth and safety. Berkeley has a target to reduce itsRIDDOR incident rate by 10% per annum. Over thepast four years Berkeley has decreased the averageincident rate by a total of 35%.

Training is crucial to the effective delivery of Berkeley’shealth and safety strategy and targets. This indicatorrefers to the five day CITB Site Managers trainingcourse on health and safety issues. The Groupcontinues to be at the forefront of health and safetyinitiatives in the sector (see page 24 for more details).

In addition to these targets, Berkeleyremains committed to developingits sustainability strategy to drive acontinuous improvement in performance.Berkeley has therefore set itself thefollowing targets:

Strategy• Implement the Land Purchase Risk

Assessment Sustainability Checkliston all new sites.

• Audit the company’s four main divisionsusing its Sustainability PerformanceManagement Tool, which includesongoing targets from previous years.

• Participate more proactively in industry-wide sustainability initiatives.

Performance• Gather data in relation to Berkeley’s

recently revised Sustainability KeyPerformance Indicators (SKPI).

• Set performance targets in relationto selected Sustainability KeyPerformance Indicators.

• Pilot new sustainability indicatorsrelating to transport, timber andrenewable energy in selected divisions.

Communications• Ensure the divisions have appropriate

sustainability training programmesin place.

• Improve the communicationof sustainability issues to customers.

• Review the sustainability contentof Berkeley’s corporate website.

• Increase the proportion of wasterecycled on those major projects withdata gathering already in place.

• Review the waste and energy savingsarising from the ‘Evolution’ project,which uses ‘Modern Methods ofConstruction’ and draft a case studyto be distributed to other divisions.

Transport• Draft a briefing note on the

implementation of car clubs using casestudies from various divisions withinthe Group.

Supply chain management• Ensure that environmental requirements

are included in the tendering process,contractual requirements and ongoingmonitoring of major suppliers’performance.

• Seek verification from suppliers thatthe ‘Berkeley Timber Policy’ is beingadhered to.

Berkeley is a leader in the business of urban regenerationin Britain. The company has an unrivalled understandingof the land development market and has become an expertin creating mixed-use communities in towns and cities.This is now the principal focus of its activities.

Berkeley is a public company. It is led by Tony Pidgley,who – with Jim Farrer, the company’s Life President –founded the business some 30 years ago.

The marketing suite atSt James’ GrosvenorWaterside development.

Contents

2 Chairman and Managing

Director’s introduction

4 Legacy

5 Sustainability strategy

8 Development process

8 Land acquisition

12 Planning and concept design

16 Construction

18 Detailed specification

22 Sales and marketing

24 Workforce

26 Target progress 2004/05

28 Sustainability targets 2005/06

Back Advisers’ statementcover

is elemental to ourbusınessSustainability

Berkeley sustainability report 2005

Advisers’ statementThe Berkeley Group has askedUpstream to comment upon itssustainability strategy and its disclosureconcerning sustainability issues.As the company’s external sustainabilityadviser, this statement has beenprepared on the basis of our long-standing knowledge of the company’sapproach to sustainability.

The Berkeley Group’s focus on urbanregeneration means that sustainabilityis at the heart of its business and is nowa material consideration for many of theGroup’s major projects.

The Berkeley Group has continuedto develop its corporate sustainabilitystrategy and has detailed within thereport progress in relation to its keyprinciples. The implementation of theLand Purchase Risk AssessmentSustainability Checklist is an importantstep forward in understandingsustainability risks and opportunitiesat the earliest stage of the developmentprocess. As detailed within this report,the company has also undertaken anextensive review of its Key PerformanceIndicators (KPIs) to ensure that they addvalue to the business. We look forwardto future reports against these new KPIs,

including the development of quantifiableperformance targets, and hope that theywill be helpful in enabling the companyto better understand the relationshipbetween sustainability issues andbusiness performance.

At a project level, this report providesgreater depth and detail concerningThe Berkeley Group’s approach tosustainability during each phase of thedevelopment process. In additionto its ongoing focus on regeneratingbrownfield sites, the company’scommitment to achieve an ‘Excellent’EcoHomes rating on one of its projectsrepresents significant progress. This willprovide a valuable insight into themeasures required to reach suchstandards, which are becoming anincreasingly important aspect of bothpublic and private sector development.The company’s commitment tocontinuous improvement is alsoillustrated by its review of wastemanagement, the examples of innovationin construction techniques and thetrialling of new sustainability technologies,including renewable energy.

For the house building sector, upholdingsustainability standards whilst respondingto the increased demand for housing

presents a significant challenge. TheBerkeley Group’s focus on environmentaltargets for the coming year will becrucial in ensuring that the company’scommitment to the environment iscomplementary to the provision of goodquality, affordable housing.

Finally, it is particularly encouraging tonote the company’s sense of long-termresponsibility to the communities inwhich it works, through the legacy thatits projects leave behind. An importantaspect of this is engaging withcustomers to encourage sustainablebehaviour in the occupation ofdwellings. In this regard, The BerkeleyGroup has made good progress duringthe past year and has set targets tofurther develop this aspect of itssustainability strategy in the year ahead.

Based upon our knowledge of thecompany, we are satisfied that thisreport provides a balanced account the company’s progress andachievements during the past year. We look forward to the company’scontinued progress.

Sarah RatcliffeDirectorUpstream

Designed by Tor Pettersen & Partners

Printed in England by Ingersoll Printers

This report is printed on Revive Special Silk.

At least 30% of the total fibre content comes from

well-managed forests independently certified according

to the rules of the Forest Stewardship Council, and

30% is from post-consumer recycled waste paper.

Building for

the future

The Berkeley Group Holdings plcBerkeley House19 Portsmouth Road, CobhamSurrey KT11 1JGUK

Telephone +44 (0)1932 868555Facsimile +44 (0)1932 868667Website www.berkeleygroup.co.uk

Documents

81023 Sus.Rep Txt - Berkeley Group...Average SAP ratings for all dwellings completed Average carbon dioxide emissions from our fixed offices (kgs of carbon dioxide per m2) Average