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CORPORATE RESPONSIBILITYREPORT 2006
COMMITTED TORESPONSIBLEMANAGEMENT
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BALFOUR BEATTY HAS A FIRM AND EXPLICIT COMMITMENTTO FULFILLING ITS RESPONSIBILITIES TO ALL OF ITSSTAKEHOLDERS.
THE LONG-TERM SUCCESS OF OUR BUSINESS DEPENDS NOT JUST ON THE CONTINUING DELIVERY OF THE HIGHESTQUALITY TECHNICAL SKILLS AND DISCIPLINES, BUT ALSODEMONSTRABLE COMMITMENT TO, AND ACHIEVEMENT IN,FULFILLING OUR WIDER RESPONSIBILITIES.
WE CREATE AND CARE FOR ESSENTIAL ASSETS – HOSPITALS, SCHOOLS, ROAD, RAIL AND UTILITY SYSTEMS AND STRUCTURES OF ALL KINDS. WE SEEK TO BENEFIT THECOMMUNITIES IN WHICH WE OPERATE, NOT ONLY THROUGHOUR WORK BUT ALSO BY ENGAGING POSITIVELY ANDHELPING DELIVER ADDITIONAL SOCIAL BENEFITS.
OUR FRAMEWORK FOR MANAGING AND REPORTING SAFETY, HEALTH, ENVIRONMENTAL IMPACTS, PEOPLE ANDCOMMUNITY INVOLVEMENT IS AN INTEGRAL PART OF OURBUSINESS PROCESSES.
This year our full report on how we manage our responsibilitiescan be found online.
Please visit www.balfourbeatty.co.uk/bbeattycr06/cr06/index toread the details of our policies, processes and performance.
This document is a summary review to provide you with the keyheadlines and highlights in an easily accessible and digestibleformat, designed to explain, simply, what corporate responsibilitymeans to Balfour Beatty.
Validation statementThe safety, health and environment data and associatedstatements in this summary report have been validated by Sd3. To read Sd3’s validation statement on the full web report please go to:www.balfourbeatty.co.uk/bbeattycr06/cr06/assurance/assurance
To provide feedback on our report please go to:www.balfourbeatty.co.uk/bbeattycr06/cr06/utilities/feedback
Or if you would prefer, write to:Corporate CommunicationsBalfour Beatty plc, 130 Wilton Road, London SW1V 1LQ
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SAFETYAND HEALTH
It’s our responsibility to protect ouremployees and the general public fromthe potential hazards involved in theconstruction process and its products.Safety is our number one priority.
> page 06/07
ENVIRONMENT
Being efficient in the way we useresources creates savings for ourbusiness and is value-adding for our customers. We continue to drive environmental best practicethroughout all of our operations.> page 08
PEOPLE
Construction is a people business andit is vital that we attract, retain andmotivate the best talent to ensure we deliver what our customers need.This means supporting and investing in our employees.> page 09
COMMUNITY
The projects we build have significantimpacts on the communities we serve.We work to maximise the benefits ofour involvement in local communities.
> page 10
03
24%Group-wide reduction in accidentfrequency rate during 2006
96%Balfour Beatty operatingcompanies undertakeoccupational health screening
£15MILLIONinvested in training in 2006
11%reduction in voluntary employeeturnover in 2006
12%reduction in absenteeism in 2006
£220THOUSANDraised for Marie Curie CancerCare over two years as ourpreferred corporate charity
25,000+
schoolchildren compete in the Balfour Beatty sponsoredLondon Youth Games
27%reduction in our relative UKcontribution to global warmingover the last four years
78%of UK timber spend procured fromcertified sources in 2006
76%less hazardous waste generatedthan in 2005
18628_BBeatty_CR 15/5/07 1:31 pm Page 1
CORPORATE RESPONSIBILITY IN BALFOUR BEATTYAN OVERVIEW
This is Balfour Beatty’s sixth CorporateResponsibility Report. The Group has a firm and explicit commitment to fulfilling itsresponsibilities to all of its stakeholders andreporting on its progress. Our major customers not only demand excellence in operationalperformance, technical skills and projectmanagement. They also want to be sure that their partners and suppliers meet or surpass their own high standards of responsible conduct.
We set ourselves demanding targets in these areas and over the last six years have substantiallyreduced our accident frequency rate, greatlyimproved the management of our impacts on theenvironment and made significant strides in allaspects of good citizenship. We welcome theopportunity to differentiate ourselves in terms of safety, environmental management and widersocial responsibility.
Our progress has been recognised in a number of ways. For example, we were again voted the “most admired” construction sector company inManagement Today’s 2006 annual survey and were rated sixth in the overall publicly quotedcompany league table. We also won the Quality in Construction Award for the best corporateresponsibility programme in the industry.
Governance and managementIn 2006, we were able to continue the progress wehave made over recent years. Our policies, internalcontrols and reporting processes and managementsystems were reviewed and confirmed. To ourexisting corporate principles and individualemployee behaviour guidelines, we added codes of practice, which set key objectives and minimumstandards for our operating companies’ dealingswith customers, employees, suppliers and thewider community. In 2007, we will begin a majortraining programme to embed these codesthroughout the organisation.
SafetyContinuing management emphasis on our principalcorporate responsibility – keeping our employeesand the public safe – continued to bear fruit, with a further 24% reduction in our accident frequencyrate despite rapidly increasing numbers of full-timeemployees and on-site subcontractors. We continueto focus on improving standards and to ensure allour operations match the highest standards whichwe achieve in the UK.
Sir David John, KCMGChairman
The Group willcontinue to be judged by itsstakeholders not just on itsprofitability but also on how well it manages its affairs beyondfinancialperformance.
”
“
HealthThe rigorous standards applied in the Group tosafety management are increasingly also beingapplied to occupational health. Although the issuesare less immediately tractable, we are makingsatisfactory progress in this regard.
EnvironmentWe continue to work systematically to preventnegative environmental impact from our activitiesand to improve our environmental performance atevery stage of our work. Annual measures of ourenergy usage, resource usage, waste generationand recycling, water consumption and our impacton environmentally sensitive areas are used toformulate policy and inform appropriate initiatives.
The wider communityBalfour Beatty’s business is the creation and careof social capital – schools, hospitals and transportsystems, for example. In so doing, it makes asubstantial contribution to society. In addition to this contribution, we believe that it is ourresponsibility to engage fully with the communitiesand individuals impacted by our project work and to add value to our work by delivering widercommunity benefits.
We have taken a number of initiatives to deliver on these objectives. Our sponsorship of the LondonYouth Games and our football coaching andcompetition programme in Stoke-on-Trent increasethe opportunities available to young people inareas where our operating companies are active.
Our sponsorship of Building Better Lives, inconjunction with the Prince’s Trust, brings anincreasing number of disadvantaged young peopletraining and employment opportunities in theconstruction industry. Through our leadinginvolvement in Engineers Against Poverty and theAnti-Corruption Forum, we are helping to tackletwo big issues in which our industry can make apositive impact. During our two-year associationwith Marie Curie Cancer Care, over £220,000 wasraised by the company and its employees tosupport the work of the charity.
The futureThe Group will continue to be judged by itsstakeholders not just on its profitability but also on how well it manages its affairs beyond financialperformance. You can rest assured we will beworking hard to maintain our forward momentum.
Ian TylerChief Executive
Continuingmanagementemphasis on ourprincipal corporateresponsibility –keeping ouremployees and the public safe –continued to bearfruit during the year, with a further24% reduction in our accidentfrequency rate.
”
“
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SUSTAINABLE CONSTRUCTION>
Sustainable construction is the way inwhich a profitable and competitive industrydelivers built assets to enhance quality of life and stakeholder satisfaction – now and in the future.
In 2002, we explored the key role that the constructionindustry has to play in the quest for a sustainablefuture. The industry has an opportunity to transformthe way that infrastructure is created, by rethinkingthe way it designs and uses resources to build andmaintain assets that meet the needs of society.
Key concepts are partnership and innovation. By engaging with customers, end-users and localcommunities, a shared understanding of the needs
and impacts of schemes can be created, alongside aview of what is technically possible and affordable.
Translating this into reality means designers,contractors and suppliers working together toembrace new ideas and technology and to generate innovative solutions.
One phrase summarises our basic approach – doingbusiness with integrity. This means that we aim to:create shareholder value through meeting clients’expectations; ensure the safety and health of ourworkforce and others; engage with communities andthose affected by our activities; and protect theenvironment. Our day-to-day activities alreadyincorporate many aspects of good practice and
contribute to sustainable development. But buildingon this and integrating it into all our activities will becritical to our future success. In order to attract highcalibre employees, create long-term partnerships withasset owners, thrive financially, and maintain theconfidence and support of our shareholders, we needto embrace the sustainable construction andsustainable development agenda fully.
Full details of our progress on SustainableConstruction issues, including our work on PFI Projects can be found in our full report online.
> www.balfourbeatty.co.uk/bbeattycr06/cr06/managingcr/sustainableconstruction
MANAGING CORPORATE RESPONSIBILITY>
The Board sets policy and takes responsibilityfor Balfour Beatty’s performance in safety,health, the environment, business ethics, risk management, human rights and othersocial issues.
In early 2001, the Business Practices Committee ofthe Board was established to review policy, practiceand performance in these areas. It meets four timesa year. We produced our first set of CompanyPrinciples in 1986. Since then they have beenregularly reviewed and updated, most recently in2006. Two companion codes were also developed at the same time, “Business Conduct Guidelines” and “Stakeholder Codes of Practice.”
We have clearly stated policies for risk management,health and safety, environment, human rights, drugsand alcohol, equal opportunities and whistleblowing.
A Group-wide risk management framework providesa common system for reporting and escalating risksof all types. Safety and health issues are linemanagement responsibilities, are subject to rigorousmeasurement and external audit and are reviewedregularly by the Group Health and Safety Council.
Environmental issues are reviewed by anEnvironmental Strategy Group, performance is audited regularly and Group-wide statistics collated in respect of our major impacts. Communityinitiatives are driven at both corporate and operatingcompany level within a clear policy framework.
Operating companies are required to develop specificpolicies and practices relevant to their areas of workin respect of all aspects of corporate responsibility.
For a full description of how we manage corporateresponsibility please go to:
> www.balfourbeatty.co.uk/bbeattycr06/cr06/managingcr/managingcr
CORPORATE RESPONSIBILITY REPORTING>
We aim to do business with integrity, aspiring to the highest standards of safety and health,managing our environmental impacts and beingcommitted to delivering on our full range ofsocial responsibilities.
Our projects directly improve the lives of people andtheir communities. Understanding their expectationsis critical to our future as a business.
Our approach and management systems cover our global activities and we report on incidents and penalties on a global basis.
We collate safety data for all of our wholly ownedactivities and for those joint ventures where we have management control. Subcontractor safetyperformance is included for all activities apart from the US where it is not common practice.
Our environment data is reported for all wholly-ownedUK and European businesses. Our other overseasbusinesses are progressing towards reportingenvironmental performance to the same standards.We report on employee data for all our wholly-ownedbusinesses worldwide.
> www.balfourbeatty.co.uk/bbeattycr06/cr06/crinourbusiness/crinourbusiness
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SAFETY HIGHLIGHTS>
The safety of our employees and of others impacted by ouroperations and activities is ofcritical importance to our businesssuccess and is a fundamentalcorporate priority.
Aims and strategyBalfour Beatty’s stated aim is zerofatalities, zero permanent disabilityinjuries and to be accident free overall.We take a structured, risk-basedapproach to safety managementacross the Group.
Our strategy has three principalcomponents. First, to build around ourwell-developed safety managementsystems a positive safety culturethrough consistent demonstration ofleadership and employee engagementwhich changes fundamental attitudesand behaviour.
Second, to ensure that we apply thesame level of diligence to public safetyas we apply to occupational safety.
Third, to design both permanent and temporary works so that safetyrisks are eliminated at source orreduced substantially.
Management systemsOur Group-wide policy and our formalexpectations for management areclearly set out and communicated,
together with policy and guidancedocuments on a number of key issues.
The Chief Executive chairs a Healthand Safety Council which developspolicy, reviews performance andfacilitates the sharing of best practice across the Group.
Our operating companies are expectedto achieve certification to OHSAS18001. They are independently auditedby Det Norske Veritas (DNV).
The Group uses Tr@ction, a recordingand monitoring system, to report andanalyse accidents and incidents acrossBalfour Beatty to provide the data forthe development of policies andpractice. Subject-specific task groupsstudy and recommend solutions forissues such as temporary trafficmanagement, service strikes, drivingsafety and tower cranes.
Our accident and incident investigationsystem is thorough and structured. Bythe end of 2006, over 500 investigatorshad received formal training in theprocess. Serious accidents arereviewed by the Chief Executive.
AuditOur systems and performance are thesubject of both internal and externalaudit scrutiny. External audit againstOHSAS 18001 is required in all UK
businesses and is being extended tocover all businesses outside the UK.All operating companies maintainprogrammes for internal audit.
TrainingOur comprehensive trainingprogrammes to ensure the competenceof all job holders continued to beimplemented in 2006. In the UK, therewas a 71% increase in safety trainingwith more than a three-fold increaseoutside the UK.
Key performance indicators and benchmarkingOur accident frequency rate (AFR)improved for the fourth successive year,this time by 24%. Since 2002, our AFRhas been reduced by 58%.
During the year we were deeplysaddened by the loss of eightcolleagues, all in operations outside the UK.
We benchmark our safety performanceagainst industry norms in all theterritories in which we operate. Our performance in the UK, US,Germany and Hong Kong comparesfavourably with the relevant localindustry statistics.
58%reduction in accident frequency rate since the end of 2002
71%increase in UK safety training days in 2006
534principal investigators trained in accident root cause analysistechniques
> Group AFR down 24% in 2006and 58% since 2002
> AFR reduced by 67% in our USoperating companies
> 96% UK business units certified to OHSAS 18001
> Over 2 million man-hoursworked by Balfour Beatty Civil Engineering on the Forth Rail Bridge with zeroreportable accidents
> 170 schools visited with morethan 11,000 children givenpresentations on safety
> Reported injury rates 29% belowHSE industry averages
Related links
> www.balfourbeatty.co.uk/bbeattycr06/cr06/safetyandhealth/safetyandhealth
> www.balfourbeatty.co.uk/bbeattycr06/cr06/casestudies/casestudies
06
Improving safety performance despite rapid growth
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
0
1.0
Accident frequency rate
Acc
iden
t fr
eque
ncy
rate
(AFR
)
Wor
kfor
ce (1
,000
)
0.8
0.6
0.2
0.4
0
100
80
60
20
40
Workforce
18628_BBeatty_CR 17/5/07 12:34 Page 4
HEALTH HIGHLIGHTS>
The Balfour Beatty Group is nowseeking to apply the same rigorousstandards of management andmeasurement to the occupationalhealth of its workforce as it doesfor occupational and public safety.
Aims and strategyOur aim is to ensure that no harm toour employees’ health occurs as aresult of our activities and to improvethe monitoring and control of thoseactivities which have the potential to impact on health.
Cases of occupational ill-health are often the result of prolongedexposure to a condition or substance,or prolonged or repeated undertakingof an activity.
During 2002 we reviewed ourapproach to occupational health and, over the last three years, have increased the focus on managing occupational healthsystematically and effectively in our operating companies.
Management systemsOccupational health management issubject to the same structure as forsafety. There is a Group policy andformal expectations for managementare clearly set out and communicated,together with policy and guidancedocuments on a number of key issues.
The Health and Safety Council,chaired by the Chief Executive,develops policy and monitors progress as for safety. Severaloperating companies have contracted professional occupationalhealth service providers to reviewtheir own specific arrangements.
The Group measures sickness absencedata to provide a comprehensive viewof the nature and scale of healthissues amongst our workforce and to assist in setting priorities.
Health screeningIn the UK, 96% of operatingcompanies undertook occupationalhealth screening during 2006.
Across the Group, 5,233 employeesreceived occupational health screeningduring the year. Of those screened,4% were referred for further medicalexamination and 3.6% subsequentlyhad their duties restricted.
Some major projects employ resident occupational health nurses to carry out pre-employment andongoing health screening and general health promotion.
Screening is also conducted in our European and US businesses and Malaysia.
Action on occupational health hazardsThe Group has particular programmes for those health issues most relevant to our industry.These include, most notably hand arm vibration syndrome (HAVS),manual handling risks, audiometricdisorders, stress, drugs and the abuse of alcohol and handling andexposure to substances hazardous to health including asbestos. Whereuncharted asbestos is encountered,the issue is handed over to accredited experts.
Health promotionA growing number of Balfour Beattyoperating companies encourageemployees towards a healthy lifestyle outside the workplace.
PerformanceIn 2006, there were no UK fatalities or retirements arising from work-related ill-health. 2% of long-termabsence was attributable to work-related illness, less than 1% ofmedium and short-term illness was so attributable.
5,233employees screened for occupationalhealth issues in 2006
1%of all absence due to occupational ill-health
ZEROfatalities or retirements attributableto work-related ill-health
> Occupational health servicesprovider appointed UK-wide
> 10th year of absence causemonitoring
> Almost 9,000 drugs and alcoholtests carried out in the UK andthe US
> A 28% reduction in the numberof hand arm vibration casesidentified during the year
> Increased use of stressmanagement counselling,awareness and recognitionservices
> Further guidance issued on safemanual handling techniques
> Formal processes establishedfor supportive return-to-work processes for absent employees in a number ofoperating companies
Related links
> www.balfourbeatty.co.uk/bbeattycr06/cr06/safetyandhealth/safetyandhealth
> www.balfourbeatty.co.uk/bbeattycr06/cr06/casestudies/casestudies
Total health screening: 2004-2006
2004
2005
2006
1,647
4,365
5,233
07
18628_BBeatty_CR 15/5/07 1:31 pm Page 5
ENVIRONMENT HIGHLIGHTS>
> No environmental incidentsclassified as serious
> Fifth year of comprehensiveenvironmental impact data for the UK businesses
> Good progress made onachieving ISO 14001 orequivalent certification across the Group
> UK/EU inert material recyclingmore than doubled during the year
> Momentum maintained inreducing the relative impact of CO2 emissions from ourvehicle fleet
> Sixth year of participation in the Business in the Environment Index
> Independent audit of BalfourBeatty environmentalprogrammes and data in mostoperating companies
Related links
> www.balfourbeatty.co.uk/bbeattycr06/cr06/environment/environment
> www.balfourbeatty.co.uk/bbeattycr06/cr06/casestudies/casestudies
On behalf of ourselves and our customers, we take everyprecaution to prevent our activitiescausing environmental harm. We seek, where possible, toencourage more sustainabledesign options to enhance theenvironment through our work and measure our impacts.
Aims and strategiesOur environmental policy has three main goals:
to work with customers to achievemore sustainable design solutions; to be a leader in environmentalpractices on all our operational sites;and to progressively improve theenvironmental performance of our own offices, depots, manufacturingfacilities and vehicle fleet.
Measuring our impactsWhile the range and nature ofenvironmental risks varies widely ineach operating company, we reviewour overall progress by monitoring:
the robustness of environmentalmanagement systems; environmentalincidents and prosecutions; trends in specific environmental indicators,such as energy and global warmingcontribution, waste and recycling,resource usage, water consumptionand biodiversity.
Management systemsEnvironmental issues are monitoredand reviewed at the EnvironmentalStrategy Group, made up ofrepresentatives of the operatingcompanies under the chairmanship of the Director Safety, Health andEnvironment. Each operating companyhas a nominated board director withenvironmental responsibility and 96%of UK operating companies are certified to ISO 14001. We aim toachieve ISO 14001 or its equivalent inall of our operations and to audit andbenchmark performance regularly.
TrainingDuring 2006 we have continued toimprove environmental training toensure that our employees are awareof the environmental consequences of their activities and know how toprotect the environment.
Audit and benchmarkingAudit is a key element of managingenvironmental risk. As well as external benchmarking, our operationsare subject to both internal andexternal audit.
During 2006 we spent a total of 2,872days conducting internal environmentalaudits and inspections and 375 dayson external audit. For the sixth year insuccession, we participated in theBusiness in the Environment survey.
Our scores in strategy and assurancereached 100% and we maintained ourrating in assurance and disclosure.However, our overall score droppedfrom 88% to 80% as the scored model changed.
Key UK performance indicatorsBy the end of 2006, 96% of our UKoperations and the majority of ouroperations outside the UK hadachieved ISO 14001 or its equivalent.No serious environmental incidents and no prosecutions or convictionswere reported.
In 2006, the proportion of ourexpenditure on timber spent onmaterial from fully certified sourcesrose once again, this time to 78%(2005: 64%).
The total amount of waste generated in the UK per £million Net Sales Value(NSV) was in line with the 2005 figurefollowing a 30% reduction in 2005.76% less hazardous waste wasgenerated than in the previous year.
In 2006, Balfour Beatty consumed12% a year per £m NSV, less waterthan in 2005.
We have succeeded in reducing ourrelative contribution to global warmingby 27% over the last four years.
3,247man days spent conducting internaland external audits in 2006
12%less water used than in 2005
78%of UK timber spend from certified sources
57%increase in the number of UKenvironmental training daysin 2006
08
UK timber spend
Relative contribution to global warming from UK operations
0
60
50
10
20
30
40
2001
2002
2003
2004
2005
2006
UK total tonnes CO2 equivalent per £m NSV
2002
2003
2004
2005
2006
0% f
rom
cert
ifie
d s
ourc
es 80
60
20
40% of timber purchased from FSC sources
% of timber purchased from all certified sources
18628_BBeatty_CR 17/5/07 12:35 Page 6
PEOPLE HIGHLIGHTS>
Balfour Beatty seeks to utilise the full talents and skills of all its people and aims to create a safe, healthy, challenging,rewarding, participative, fairworking environment.
Aims and objectivesOur explicit objectives are:
to provide an open, challenging andparticipative environment; to enableall employees to utilise their talentsand skills to the full, throughappropriate encouragement, trainingand development; to communicate afull understanding of the objectivesand performance of the Group and theopportunities and challenges facing it;
to provide pay and other benefitswhich reflect good local practices and reward individual and collectiveperformance; and to ensure that allapplicants and employees receiveequal treatment regardless of age,origin, gender, disability, sexualorientation, marital status, religion or belief.
Employee attitudes and opinionsSurveys of employee attitudes, needsand opinions are conducted in thegreat majority of our operatingcompanies. In 2007, the first Group-wide employee survey will be undertaken.
Training and developmentThe Group invested over £15 millionin training during 2006 – representingan average of 3.7 days of training peremployee. Formal performance anddevelopment reviews, increasinglycommon throughout the Group,provide regular opportunities foremployees to identify and agreedevelopment objectives with their managers.
The Group has a comprehensiveorganisation and people reviewprocess which links the aspirations,talents and development plans ofindividual managers to the anticipatedfuture needs of the business.Wherever possible, we seek topromote from within the Group.
CommunicationsAll employees receive a six-monthlymagazine which covers in detail thelatest financial information, news and events from around the wholeGroup, including safety, health andenvironment topics and matters ofgeneral employee interest.
Individual businesses use a variety of methods to communicate keybusiness goals and issues toemployees and also consult andinvolve their employees.
DiversityIn 2006, 17% of our UK employeeswere women and 6% were of ethnicminority origins. In 1999, whenmeasurement first started theproportions were 13% and 4%respectively. Nearly 150 graduateswere recruited in 2006. 20% of thisintake were women and 15% fromethnic minorities.
Turnover and absenceThe retention of motivated, qualifiedstaff is critical to the future successof the business.
In 2006, voluntary employee turnoverwas reduced from 18% the previousyear to 16%. The absence rate wasalso reduced from 2.6% to 2.3%.
WhistleblowingThere is a Group-wide whistleblowingpolicy in place. During the course of2006, eight cases were raised and allthe cases raised have been addressedand successfully concluded.
PensionersWe have an assistance network in place for all our pensioners needing help and advice. We also hold regular roadshows around the UK for pensioners.
The Group, through trustees, operatesa number of pension schemes. Thefunds are healthy and appropriatecontribution schedules are in place in order to ensure that this continues.
30,467full-time Balfour Beatty employees at the end of 2006
17%of UK employees are women
670UK graduates recruited between 2001 and 2006
12UK operating companies withInvestors in People accreditation
> Corporate Principles andBusiness Conduct Guidelinesdistributed to all employees
> Annual UK graduate inductionconference initiated
> Reductions in absence andvoluntary employee turnover
> Expenditure on and scope oftraining programmes furtherincreased
> Substantial furtherimprovements in safety and health management and performance
> Employment opportunitiesexpanding as Group continues to grow
> Accreditation under Investors in People continues to spreadacross the Group
Related links
> www.balfourbeatty.co.uk/bbeattycr06/cr06/ourpeople/ourpeople
> www.balfourbeatty.co.uk/bbeattycr06/cr06/casestudies/casestudies
09
18628_BBeatty_CR 17/5/07 12:36 Page 7
COMMUNITY HIGHLIGHTS>
Balfour Beatty regards goodcorporate citizenship as anintegral part of its businessmission. It seeks to create positiveand long-lasting relationships with all of its stakeholders and to engage proactively with them.
Aims and strategyBalfour Beatty seeks to engage fullywith the groups, communities andindividuals directly impacted by itsproject work and to add value to thework that it does in creating and caringfor infrastructure assets by deliveringadditional community benefits.
Its project staff are expected to engagewith the local communities in whichthey operate and to keep them fullyinformed of all issues which mightaffect them. Initiatives to bring addedbenefits to communities which weserve are initiated at every level in the organisation.
Stakeholder engagementEmployees There is a comprehensivecorporate and operating company-based communications programmeaimed at ensuring that all employeeshave access to the information theyneed and the opportunity to put theirviews forward.
Shareholders Balfour Beatty runs an active shareholder engagementprogramme involving regularroadshows, one-to-one meetings and webcasts.
Customers Most of the Group’soperating companies run regularcustomer attitude and opinionsurveys. A substantial proportion of the Group’s business is conductedwith organisations with which itsoperating companies have long-term relationships.
Suppliers An increasing proportion of the Group’s supply base is retainedin long-term relationships based on the compatibility of their values andbehaviour as well as product qualityand price.
Government and Regulators Over half of Balfour Beatty’s work is carriedout for governments. The Group seeksactive and positive relationships with governments, their officers andadvisers and relevant industryregulators.
Communities It is Balfour Beatty’spolicy that all of its major projectshave a dedicated community relationsteam. Typically, major projects will bepreceded by exhibitions, and regularnewsletters and letter drops will keepinterested parties informed at keyproject milestones. There will beregular visits to schools and otherlocal institutions. Key stakeholdersare offered direct access.
Community engagementBalfour Beatty has two parallelcommunity engagement programmes.
Building Better Communities In 2006, we launched a new £340,000football coaching programme forschoolchildren in Stoke, where we have the 25-year PFI schools’concession. We also increased ourinvolvement with Groundwork, thephysical amenities charity with newprojects commencing in Hertfordshire,Leeds, Sheffield, Manchester andLondon. We sponsored the LondonYouth Games in which over 25,000London schoolchildren participatedand also introduced a sportsdevelopment grant for the London boroughs.
Building Better Lives In 2006, we became a founding sponsor of“Get into Construction”, an initiativedesigned to offer disadvantagedyoung people training and jobopportunities in the constructionindustry, in conjunction with thePrince’s Trust. We chose NCH, the children’s charity, as our Charity of the Year and continued ourprogramme of training and employingreleased offenders.
23new courses for the Prince’s Trust“Get Into Construction” schemeplanned for 2007
£340,000to be spent over three years on theGroup’s schools football coachingscheme in Stoke
33London boroughs received BalfourBeatty sports development grants in 2006
100shareholder meetings held during 2006
> Balfour Beatty wins the 2006Quality in ConstructionCorporate Social Responsibility Award
> NCH, the children’s charity,selected as corporate charitypartner for 2007/8
> Balfour Beatty becomes afounding sponsor of Prince’sTrust “Get Into Construction”programme for disadvantagedyoung people
> Balfour Beatty sponsorship of London Youth Gamesextended in 2007
> More projects undertakenaround major construction and concession sites withGroundwork UK
> Balfour Beatty football coachingscheme for young people at riskof social exclusion in Stokelaunched
> “Love My School” campaignlaunched in Rotherham toreduce vandalism, litter and graffiti
Related links
> www.balfourbeatty.co.uk/bbeattycr06/cr06/community/community
> www.balfourbeatty.co.uk/bbeattycr06/cr06/casestudies/casestudies
10
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RESPONSIBILITY IN ACTION
FACTS>
EnvironmentEnvironmental impacts have been kept to aminimum and managed within the content of asustainable construction plan which has planningauthority approval and local resident involvement.
A balanced earthworks plan was developed tominimise the generation of waste earth from site.Crushed demolition materials have been used to reduce the amount of virgin material imports.Modular construction and mandatory plasterboardrecycling has also led to reduced waste.
The building has been designed to allow theoptimum use of natural daylight and to maximiseenergy efficiency. In addition, the hospital hasachieved an excellent Building ResearchEstablishment Environmental Assessment Method rating.
Flora and fauna are being fully protected under the project plan, with the design incorporatingwildlife crossings, heated bat boxes and bird boxesto sustain and enhance the presence of a variety of species and other features.
The hospital is adjacent to the Metchley RomanFort – a scheduled ancient monument – and a fullexcavation, recording and recovery plan wasimplemented prior to construction.
Construction noise is being minimised with vehiclemovements being carefully planned, includingspecific routeing and timing to avoid trafficstacking and congestion in residential areas andthe installation of environmentally friendly fences.
CommunityThe hospital is located in the heart of a residential area and the project plan includes a comprehensive liaison programme to keep the community engaged and informed. Local people also have access to the employment and training opportunities created by the project,via a learning hub.
Building Health, a partnership of organisationsincluding Balfour Beatty, is serving as a clearinghouse for employment and training opportunities at the site.
Related links
> www.balfourbeatty.co.uk/bbeattycr06/cr06/managingcr/sustainableconstruction
> www.balfourbeatty.co.uk/bbeattycr06/cr06/casestudies/casestudies
1 MILLIONman hours workedwithout a reportableaccident
21%more beds in the newfacilities than thosereplaced
70%of training programmeparticipants go on toemployment or full-timeeducation
1,500employees on site at peak periods
The project hasreached themilestone of onemillion man hoursworked on sitewithout a reportableaccident or incident.
”
“
Birmingham HospitalThe construction of Birmingham’s first super acutehospital is well underway. At over £550 million, the scheme is the largest community healthcaredevelopment outside London. Mental Healthfacilities are due to open in 2008, followed by the main Acute facilities in 2010.
The construction is being carried out by BalfourBeatty Group companies, Balfour BeattyConstruction and Haden Young. Balfour Beatty staffand other employee numbers on site are predictedto peak at approximately 1,500.
The hospital project is due for final completion in 2012 when it will accommodate over 1,200 beds,21% more than the facilities it replaces, with 30 operating theatres and a daily footfall throughthe front entrance estimated to be between 2,000-3,000 people.
The project has developed an integrated partnershipwith its customers, local stakeholders, neighboursand suppliers to steer its overall direction.
SafetyThe project team has implemented a co-ordinatedprogramme to achieve its target of zero accidentson site. The components include safety awarenesssessions for all teams before they move onto site,safety suggestion schemes, school visits to alertlocal children to the dangers of a construction siteand safety award schemes for sub-contractors.
Great attention has been paid to Designing for Safety, with significant planning formodularisation and off-site fabrication, thus reducing on-site hazards.
The project has reached the milestone of onemillion man hours worked on site without areportable accident or incident.
11
18628_BBeatty_CR 17/5/07 15:27 Page ibc1
Corporate Communications www.balfourbeatty.comBalfour Beatty plc, 130 Wilton Road, London SW1V 1LQBalfour Beatty is a registered trademark of Balfour Beatty plc
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18628_BBeatty_CR 17/5/07 12:28 Page bc4
