Governance

To ensure that we deliver our corporate objectives an appropriate governance structure is in place. This is vital given that each and every development faces a wide range of economic, social and environmental risks and opportunities. Our risk adverse approach to sustainability is underpinned by a clear and robust understanding of our direct and indirect impacts.

We have identified these impacts in our sustainability related policies and systems, and accordingly we regularly measure the Group’s performance and that of individual projects, to ensure that we continually improve against Industry and internal benchmarks. To ensure that our objectives are future-proofed we systematically review them to ensure they meet the demands of our business and its stakeholders, as well as being compliant with evolving Government policy.

In light of the increasing demands being placed on Governments and corporate cultures globally we believe that the transparency and accountability of companies such as ours is critically important. Indeed, we believe it is imperative to be open and communicative through public reporting. Accordingly, this is our ninth consecutive year of publishing our sustainability performance and achievements which is longer than anyone in our peer group.

Additionally, we have always sought independent assurance of our reporting and we continue to have our quality, environmental, health and safety management system assessed by the British Standards Institute and the British Safety Council. Our ESE reporting is assured by RPS Group PLC. We encourage each party to be objective, yet challenging when working with us.

Furthermore, we seek the input of our partners and peers, and within our business we apply a rigorous discipline in testing our practices, with particular focus on our governance structures, reputation and sustainability objectives and targets. We believe a high level of disclosure is important and this greatly contributes to meeting our values of integrity, professionalism, respect, collaboration, innovation and the highest standards of delivery.

Leadership and risk management

Our Main Board is wholly committed to maintaining high standards of integrity, accountability and corporate governance. The Executive Board is supported by the Corporate Management Committee, the Health, Safety, Environmental and Quality (HSEQ) Committee, the Risk Management Committee, the Audit Committee and a number of Advisory Groups and Forums.

Organisational structure

The HSEQ Committee is responsible for Health, Safety, Environmental and Quality throughout the Group. It is chaired by our Chief Executive and its high-level attendance includes each of the operating division’s Managing Directors and the Directors for Health and Safety and Sustainability. This ensures that the Group’s policies, management systems and corporate objectives are fully embedded and actively progressed.

In light of increasing regulatory burden, the importance of developing and maintaining an effective risk management strategy and systems cannot be overstated. Obvious sustainability examples such as flood risk mitigation are generally better understood and are being fully incorporated into land acquisition strategies. However, accounting for climate change adaptation and mitigation strategies is less well understood, primarily because policies are still in their infancy. Nevertheless, given our project experiences at schemes such Greenwich Millennium Village, we have gained invaluable knowledge in how to deal with such challenges through the future proofing of masterplans, buildings and the public realm.

In spite of this experience, the materiality of such innovative sustainability practices are being appraised by our sector, insurers and the many interrelated statutory consultees whose requirements are being more clearly stated. Examples of this include the forthcoming DEFRA Floods and Water Management Bill, and the introduction of the new Sustainable Urban Drainage National Standards, and the consultation (dated March 2010) on a new Planning Policy Statement: Planning for a Low Carbon Future in a Changing Climate. The road map below outlines the key national trajectories that we are working towards.

Given the constant flow of evolving policy, we endeavour to engage with the respective policy makers so that the risks to which we may be exposed can be conceptually assessed. This early engagement helps us to enhance or put in place controls that can help alleviate the inevitable resulting economic, environmental and social impacts.

The Group’s collaborative attitude helps us to address climate change impacts, which in turn enhances our reputation and brand value, improves our differential and competitiveness in the marketplace. Furthermore, it enables us to navigate the planning system more effectively and we believe in the medium to long-term that climate proofed developments should increase customer demand and create a premium.

At an operational level, the responsibility and the management of HSEQ and our corporate objectives are incorporated into subsidiary companies’ business plans and central service departments (non-operational) requirements. These requirements are assigned to project teams and individuals, to ensure their delivery. For example, site teams are set ESE targets which they are monitored against, and performance is measured and remuneration is set to encourage improvements. Evidence of how such targets are being successfully implemented is the Group’s reduction in site waste, which has resulted in a £1.3 million cost saving. Each company and the respective departments, have ‘sustainability champions’, who are responsible for supporting the delivery of the Group’s objectives.

We regularly update and continuously embed our corporate policies into all aspects of our business including sustainability, environmental, social and ethical, health and safety, training and development, and equal opportunities.

Certified management systems

Our accredited Management Systems provides us with a framework to manage each of our identified impacts. Underpinning these systems is an identification of key impact areas and the associated risks, and then implementing policies and procedures to manage and monitor these aspects. Alongside appropriate long-term and short-term targets and robust data collection systems, each of our health and safety, environmental and quality systems helps us identify areas of improvement. It assists us in driving performance in key areas, as well as establishing a clear audit trail and signalling commitment to stakeholders.

Each of our systems is subject to a regular audit which is undertaken by experienced practitioners and directors, whom report directly to the HSEQ Committee and the Group’s Chief Executive. Our management systems have continually delivered cultural, financial and operational benefits, and all of them have been re-registered, including Quality, Environmental and Health and Safety during the reporting period. The Investors in People Standard is subject to audit during the Autumn of 2010.

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Peckham Partnership, London

St Mary’s Island, Chatham Maritime, Kent

Accordia, Cambridge

Westfield Place, Bishop’s Stortford, Herts