1_sustainability-report-2016

1_sustainability-report-2016
Mitie Group plc Sustainability Report 2016
Mitie is the outsourcing partner of choice. Ourfocus is on delivering services that help clients be more efficient today and tomorrow. We’re all about developing people to excel at what they do, challenge how things are done and inspire change. Introduction
In this report Highlights from the year 29% We’ve reduced our carbon footprint since 2010 21% Our net promoter score is 1% higher than last year 3,095 Mitie Star nominations 91% of our employees say they are treated fairly 81% of employees surveyed say they’re proud to work for Mitie 76% Our engagement score is 2% higher than last year 3 star Restaurant Association Award 0.9% of our profit is invested back into local communities Contents 02 Message from the CEO 04 Our strategy 05 Governance and stakeholder engagement 07 Materiality 10 Targets to 2020 11 Ethics 15 Health and Safety 19 Engagement 23 Talent 27 Our clients 31 Diversity 35 Environment 39 Communities 43 Suppliers 48 Appendices Visit ourwebsite for more information: mitie.com/sustainability 1www.mitie.com
Message from the CEO Sustainability matters to everybody It’s our people, our clients, our valued suppliers and the communities and environment we work in, that make us who we are. The term sustainability can mean different things to different people. For me it’s about the long-term success of Mitie, from a commercial point of view, of course, but more importantly from a human perspective. What will people be saying about Mitie in 10 or 20 years’ time? What will our reputation be as an employer, a supplier, a partner? I want everyone at Mitie to think about this in their day-to-day job, which is why sustainability underpins our strategy and is ingrained in the way we do everything. The results of our materiality analysis this year have shown that we are in line with our stakeholders’ needs in terms of priorities. It was good to see that ethical behaviour and health and safety, two topics I am passionate about, are also at the top of our stakeholders’ concerns. Our ethical business framework A responsible company is one that will succeed and continue to grow, which is why we take our ethical business framework very seriously. Introduced in 2014, our code of conduct, One Code, provides the guidance and support necessary for everyone at Mitie to behave in the right way. It helps our people understand Mitie’s values and the responsible behaviours that underpin them. One Code remains a key part of our induction programme as well as a priority in our internal communication plans throughout the year, and we operate a confidential Speak Up service for anyone wishing to make a complaint outside the usual management channels. Health and safety Health and safety remains a key priority for the group. This year we delivered further enhancements through continued promotion of our award-winning Work Safe Home Safe! employee engagement programme. This has resulted in improvements in all our health and safety measures. RIDDOR reportable rate: 3% improvement Over 7 day reportable rate: 4% improvement Over 7 + Over 3 day rate: 6% improvement Total recordable rate (Major, 7 and 3 day): 6% improvement Total days lost: 14% improvement Near miss reporting: 22% improvement 2 Mitie Group plc | Sustainability Report 2016
Carbon Trust Certification The Carbon Trust provides independent verification and certification services that recognise real achievements in sustainability and identify improvement opportunities. This year we decided to submit our impacts for external verification and we are delighted to have obtained the Carbon Trust Standard for Carbon with a qualitative score of 77. We are now one of a few FM organisations in the UK to hold company-wide certification, cementing our position as a leader in the sustainability arena. The certification provides us with a framework to continue on our sustainability journey – enhancing our operational activities, improving energy efficiency and cutting costs at the same time. Message from the CEO “A responsible company is one that will succeed and grow.” Our people are our greatest asset Employee engagement, and employee satisfaction and retention were also top of the list in our materiality analysis – both for the business and for our stakeholders. This shows our stakeholders truly understand that Mitie is a people business; without engaged and motivated employees, we would not be the business we are today. We put a lot of time and effort into understanding our employees better this year – with the addition of a culture team and a more in-depth employee survey – and thanks to the insight we now have, we will be working on various projects to enhance employee engagement and satisfaction over the coming months. Environmental impact This year we have decided to put more focus on the evaluation of our environmental impact and we have been working with the Carbon Trust to assess our policies, processes and performance. I am delighted to report that we have received certification from the Carbon Trust for the whole of Mitie which demonstrates the quality of our approach in this key area. I’m really proud of our people who continue to work hard to help us meet our targets. Together, we’re building a business that is all about long-term relationships with clients, our people and the communities in which we work. Ruby McGregor-Smith CBE, Chief Executive Visit our corporate website to download the full copy of the One Code booklet mitie.com/onecode 3www.mitie.com
Our strategy Sustainability underpins everything we do at Mitie Sustainability runs through our clear six pillar strategy to deliver stakeholder value through a focus on sustainable profitable growth. Our business incorporates our sustainability agenda into the way it operates every day. We realise that having satisfied clients, employees who are engaged, safe and respected, a community that recognises our contribution to society, minimum impact on the environment and an aligned supply chain is fundamental to our success. Our culture is about ‘doing the right thing’, supporting each other and being a positive force in our local communities. This approach is enabled by rigorous policies in areas such as health and safety and diversity, together with a commitment to reducing the impact of our operations and helping our clients achieve their own environmental targets. This approach is ingrained in the way we do everything. Download ourAnnual Report for our full strategy mitie.com/investors/2016annualreportandaccounts Maintain our position as the leading provider of FM services in the UK Increase the range and scale of services we provide to our top 200 clients, in the UK and internationally Attract, retain and develop the best people in our industry Increase the provision of technology-led services Grow our public services businesses by developing relationships with key clients Expand the scale and breadth of our higher value consultancy services 1 4 2 5 3 6 Our strategy is underpinned by sound business processes and a commitment to fulfilling our responsibilities to the wider community. Our six pillar strategy to deliver stakeholder value through a focus on sustainable profitable growth Sustainability Risk Management Governance 4 Mitie Group plc | Sustainability Report 2016
Governance and stakeholder engagement We believe in doing the right thing all of the time How we manage sustainability Mitie’s strategic objective is to achieve sustainable profitable growth. We include the word sustainable because what matters is not just our financial performance, but how we achieve it. We believe in doing the right thing all of the time, allowing us to operate in an environment that delivers long-term results. Sustainability structure We have a sustainability steering group, made up of representatives from across the business who are involved in either operational delivery or support functions. The steering group develops the sustainability strategy for Mitie. It proposes targets which are then approved by the Board. The steering group meets quarterly to monitor progress against targets and prepares both internal and external reports. The group reviews performance annually and evaluates whether the sustainability objectives for the year have been achieved. The day-to-day activity happens within our operating businesses. The businesses are supported by specialists in HR, health and safety, supply chain management and environmental management where appropriate. Mitie Group plc Board Sustainability steering group Operating businesses Clients People Communities Environment Suppliers Activity Approval of strategy and targets Performance review Activity Development of sustainability strategy Setting targets Measuring and maintaining performance Review and reporting Activity Action plans Activities Measurements Review Sustainability governance 5www.mitie.com
Governance and stakeholder engagement Stakeholder Importance to Mitie Examples of engagement activity Investment community Providers of capital Assess/rate our performance Influence our reputation IR programme 121 meetings Results presentations CDP survey completion Website investor section Governments and regulators Influence macro and political framework we operate in Influence work we secure (public sector) Direct meetings Participation in initiatives, regulation and policy working groups Trade associations Employees Core asset Present and future delivery of our business Service quality Influence our reputation Internal communications (email/publications/intranet/extranet) Annual employee survey Annual appraisal meeting Employee roadshow events Speak Up/Whistleblowing service Social Media Local communities Supporting our operations Partnering opportunities Influence our reputation Community programmes (The Mitie Foundation) Community Liaison officers (Social Housing) Events and publications Website and Social Media Suppliers Help us deliver quality services Partnering for innovation Influence our reputation Formal and informal meetings Annual supplier forums Ecodesk emissions auditing Website and Social Media Modern slavery assessment Clients No business without them Push us to innovate Influence our reputation Formal and informal meetings Executive Research Programme surveys and events Annual satisfaction survey Publications Website and Social Media Completion of CDP supplier surveys Stakeholder engagement We use stakeholder engagement to develop and improve the way we do things. From policies and commitments to operational activities, engaging with all our stakeholders helps us build on our strengths and address our weaknesses. We communicate with our stakeholders in a variety of ways, choosing those most appropriate for the audience and the message at any given time. “We make sure we communicate with all our stakeholders to understand and meet their needs.” 6 Mitie Group plc | Sustainability Report 2016
Identifying the most important issues To be successful, we can’t afford to ignore what the world thinks about us. All our stakeholders take an interest in our activities and the impacts they have on the world around them. Some stakeholders have very specific interests and identifying which issues to prioritise can be a challenge for us. That’s why we use a formal materiality process to identify the most important issues for our stakeholders and our business. The materiality process To identify the issues that matter most to our business and our stakeholders, we work with an independent organisation, using a formal materiality process. The first step of the process is a workshop with attendees from Mitie’s management team and various stakeholders. This year, we welcomed clients, suppliers, community organisations and Carbon Trust representatives for a full day materiality workshop and integrated their feedback with results from employee and client surveys to create our materiality matrix. After this extensive consultation, environmental, social and governance issues of concern are placed on a materiality matrix (see adjacent) that displays their position relative to the degree of importance to our stakeholders and importance to Mitie. Together, the results represent the material issues facing our business. Our most material issues Showing as major priorities for both Mitie and stakeholders, our three most material issues are: Labour conditions – People are at the centre of all that we do, and as such we are committed to protecting the human rights of all our employees. We strive to provide a workplace free of harm, discrimination, bullying and harassment and expect the same throughout our supply chain. We will provide fair reward and respect working hours legislation for every employee. Corruption prevention – We operate a zero-tolerance policy towards bribery and corruption and expect all our employees to comply with legislation and to take all reasonable steps to ensure our supply chain partners operate in the same way. This is clearly communicated in our ethical business framework, One Code, and our ethical business practice policy which forms part of our employee starter pack and induction. We operate a whistle-blowing service for anyone to call anonymously if they see anything untoward in their area of the business. Find out more about our ethical business framework on our website (mitie.com/onecode). Employee satisfaction and retention – Mitie is a people business, without our employees we would not be the successful business we are today. Employee satisfaction and retention is therefore a key priority for us – these areas are covered in depth in the talent, engagement and diversity sections of this document. Materiality 7www.mitie.com
Minor Moderate Major 8 21 22 16 15 14 24 4 11 10 20 23 17 18 19 2 3 13 12 6 9 7 1 5 1 Client enga 2 Integration (Client) 3 Service qu 4 Client sati 5 Cost effici 6 Communit 7 Impacts on (Communitie 8 Corporate 9 Diversity a 10 Employe (Engagemen 11 Employee 12 Environeme 13 use 14 Environeme 15 Ethics 16 Ethics 17 Ethics 18 Ethics 19 Ethics 20 HS Materiality Our material issues Importance to stakeholder Importancetobusiness Issue Section in the report 1. Ethical behaviour Ethics (PG 11) 2. Modern slavery prevention Ethics (PG 11) 3. Fair remuneration Ethics (PG 11) 4. Fraud prevention Ethics (PG 11) 5. Corruption prevention Ethics (PG 11) 6. Safety at work Health and safety (PG 15) 7. Labour conditions Health and safety (PG 15) 8. Employee engagement Engagement (PG 19) 9. Employee satisfaction and retention Engagement (PG 19) 10. Leadership development Talent (PG 23) 11. Employee training Talent (PG 23) 12. Cost efficiency Clients (PG 27) 13. Service quality Clients (PG 27) 14. Integration of multiple services Clients (PG 27) 15. Client satisfaction and retention Clients (PG 27) 16. Client engagement Clients (PG 27) 17. Diversity and inclusiveness Diversity (PG 31) 18. Carbon footprint Environment (PG 35) 19. Energy efficiency Environment (PG 35) 20. Optimal fleet selection and use Environment (PG 35) 21. Community investment Communities (PG 39) 22. Corporate volunteering Communities (PG 39) 23. Impacts on local communities Communities (PG 39) 24. Responsible supply chain Suppliers (PG 43) Our 24 material issues have been organised under nine categories. Each category is explored in depth in our sustainability report. 8 Mitie Group plc | Sustainability Report 2016
Materiality Issues not on the matrix The results show clear priorities shared by the both the business and the stakeholders – these are our core material issues, represented on the matrix. As expected, however, the results also show that some of the more material issues for our stakeholders were deemed less important for our business by the business representatives at the materiality workshop. We have not included those in the above matrix and instead address them here: There were also issues which Mitie’s management team considered high priorities but did not make the top list for our stakeholders and we address these here: • Fire safety • Toxic chemicals and materials • Hazardous waste management • Disease spread control While these areas are of operational importance to Mitie, they are tightly controlled via dedicated processes as part of our well-established health and safety management system. These processes are subject to regular internal inspection and audit, and third party review. As such, although important, we do not consider them to be material issues. • Payments to Government Mitie operates predominantly in the UK and is headquartered in the UK. We recognise our responsibilities as a UK business to pay the appropriate level of taxes to the UK government. Our tax strategy is to manage all taxes, both direct and indirect, such that we pay the appropriate amount of tax in each country where we operate, whilst ensuring that we respect the applicable tax legislation and utilise, where appropriate, any legislative reliefs available. This tax strategy is reviewed, regularly monitored and endorsed by the Board. • Local sourcing Our procurement teams consider all aspects of sustainability when selecting appropriate supply partners. Whilst local sourcing does come into play in certain decisions, health and safety, ethical business practices, commercial viability and supplier credentials will take priority in the decision to choose a vendor. • Recycling • Water efficiency • Renewable energy • Office waste minimisation Managing our environmental impacts is a priority for Mitie. The low scoring of these issues within the materiality analysis reflects the knowledge that 90% of our carbon footprint is due to our fuel emissions and the limited impact our recycling or water usage would make to our carbon footprint. We do, however, manage and report on these areas within our environmental section as whilst they are not material they are of interest to many stakeholders. • Confidential data treatment Ensuring that all of the data that we manage, process and store is secure is a high priority for Mitie and is embedded into how we operate as a business. We have robust processes for dealing with our responsibilities in this area. The fact that the treatment of confidential data was not seen as highly material by our stakeholders is mainly due to the fact that they see this as a given and part of business as usual. • Migrant workers management Managing the entitlement to work in the UK is an important issue for Mitie, as the potential fines for getting it wrong are up to £25,000 per employee. We have proven robust procedures in place to check people’s right to work and work closely with the relevant government departments in this area. In a similar way to the topic above, our stakeholders take this area of compliance as a given and accordingly did not perceive it to be material. Issues raised by stakeholders Issues raised by MitieHow we have addressed the issue How we have addressed the issue Using our materiality assessment We use the materiality assessment to refine our targets and identify areas for improvement. It is used by our Corporate Risk Management team to inform our risk matrix and by Senior Management to inform ongoing business strategy. The contents help us select the information contained in this report, providing data that responds to stakeholder needs. 9www.mitie.com
Targets to 2020 Our sustainability targets to 2020 Our business is focused on helping clients run their businesses more effectively. We’re all about developing people to challenge how things are done and inspire change. Ensure all our employees have read and understood our code of conduct This is a new target intended to reflect how material ethical conduct is to both Mitie and our stakeholders. The way we intend to measure this is to look at how many of our employees have completed the in depth e-Learning course about the code of conduct. Since its rollout, over 4,000 people have completed the course. Progress Achieve 100% confidence in management when it comes to Health and Safety In our last employee survey 89% of respondents agreed their line manager took their health and safety concerns seriously. Our target is 100%. Progress Achieve 90% employee engagement based on Mitie’s proprietary model Our score this year based on an employee survey is 76%. This is an increase of 2% on last year. Progress Improve client satisfaction to achieve a Net Promoter Score of 25% Our Net Promoter score is 21%, which is a 1% increase on last year. Progress Embed diversity in all our practices (achieve 90% diversity score based on Mitie’s proprietary model) 90% of employees surveyed agreed they have equal opportunities regardless of gender, ethnic origin, disability, religion, age or sexual orientation. Progress Reduce our carbon footprint by 35% So far we have achieved a 29% carbon footprint reduction. This is a 3% improvement on last year. Progress Dedicate 1% pre-tax profit to community investment, through the Mitie Foundation’s activities Our community investment for the year represents 0.9% of our pre-tax profit. Progress Embed our values and beliefs in our supply chain We continue to work with all our suppliers, collaborating with them to embed our values and achieve sustainable improvements that benefit them and us, as well as our clients. Progress NEW On track Clients SuppliersEngagement Environment Diversity Ethics Work to be done Talent CommunitiesHealth and Safety 10 Mitie Group plc | Sustainability Report 2016
Always doing the right thing Ethics Having the highest ethical standards and being able to show that we stick to them is fundamental to Mitie’s ability to succeed as a business over the long term. 11www.mitie.com
Ethics A responsible company is one that will succeed and continue to grow, which is why we take our ethical business framework very seriously. Introduced in 2014, our code of conduct, One Code, provides the guidance and support necessary for everyone at Mitie to behave in the right way. It helps our people understand Mitie’s values and the responsible behaviours that underpin them. One Code remains a key part of our induction programme as well as a priority in our internal communication plans throughout the year, and we operate a confidential Speak Up service for anyone wishing to make a complaint outside the usual management channels. Our code of ethics lays down our core values and the responsible behaviours that underpin them. We expect our people to follow the code at all times and we use our influence to encourage our suppliers and partners to observe its principles too. One Code covers all of the ethical issues that face our business every day. We have split the code into three areas and explain the issues and behaviours that we expect from our people. The first is “Our people” where we explain how we conduct our operations responsibly from the perspective of health and safety, sustainability, diversity and equality. The second is “Our business” which covers bribery and corruption, gifts and hospitality, conflicts of interest, responsible partnerships with our suppliers, competition and dealing in Mitie shares. The final area is “Our integrity” which includes sections on protecting our business assets, information management and security, data protection and the management of confidential information, political relationships, communicating with the outside world and financial and non-financial accounting and reporting. Our approach John Telling, Group Corporate Affairs Director and Chair of the Sustainability Steering Group “It was clear from the materiality work that we did this year that ethics is a really important area for our stakeholders. This doesn’t surprise me. In an era where the behaviour of corporates is increasingly coming under scrutiny every organisation needs to look at itself in the mirror. At Mitie this happens across our business. Whether it is training our people in our code of conduct or the Board reviewing our corporate governance structures and processes, our starting point is always to do the right thing. This stretches from reviewing the implications of modern slavery and human rights to equality in pay and the composition of our subsidiary boards. We may not get everything right, all the time, but we will always try to.” 12 Mitie Group plc | Sustainability Report 2016
Ethics Since we introduced One Code we have included it in all of the induction sessions for our new people and have trained our existing people as well. Our people survey Misay has shown that we are making progress. 86% of our people said that they were treated fairly by the people they work for. However, 39% of our people said that they did not feel that their pay was fair for the work that they do. This is an area we need to look at and over the next year we will be working out what is behind this result and looking at what we can do to change our people’s feelings in this area. In addition to the code there are other issues that have been addressed this year. National Living Wage As a top ten private sector employer, we welcomed the announcement that a new National Living Wage (NLW) would be introduced in the UK in April 2016. We are supportive of this move, which ensures that those of our people who are affected, are better rewarded and feel more motivated to do the jobs they do. It will also improve retention rates across our business. Modern Slavery Act We recognise our responsibilities to society in relation to our supply chain. We actively engage with our suppliers to ensure that they share our values and comply with relevant legislation. We welcomed the introduction of the 2015 Modern Slavery Act and the provisions within Section 54 covering supply chain transparency in the Home Office guide. We will not tolerate human trafficking, slavery or forced labour of any type. We will be producing our slavery and human trafficking statement in accordance with Home Office guidelines by September 2016. Human rights Mitie is committed to the UN Guiding Principles on Business and Human Rights and the International Labour Organization convention. Protecting and preserving human rights in every territory we operate in is embedded in our culture and fundamental to our company values. This is reflected in our policies and actions towards our people, suppliers, clients and the communities and countries where we do business. What we achieved “One of the things that attracted me to working for Mitie in the first place was that it was clear from their website that they are a company that has a clear set of values that really encourages its employees to behave in the right way. That’s really important to me and I was delighted when I started working here to find that was the case. It makes me feel good about the work that I do and the company that I am a part of.” Jamie McGeoghegan Business graduate 13www.mitie.com
Ethics As the materiality review showed that ethics was an important area for both our own people and our stakeholders we have introduced a new 2020 target this year: Ensure all our employees have read and understood our code of conduct This is a new target intended to reflect how material ethical conduct is to both Mitie and our stakeholders. The way we intend to measure this is to look at how many of our employees have completed the in depth e-Learning course about the code of conduct. Since its rollout, over 4,000 people have completed the course. Our One Code is two years old this year and we will be refreshing it to make sure that it covers everything that it needs to. We will then develop a communications plan and an e-learning programme to make sure that it reaches as many people as possible. Because of the importance of ethics to our clients we will be incorporating it into our Executive Relationship Programme for the next year. This will take the form of white paper research followed by an event at which a number of our key clients will discuss the issues raised by the research. We will also share the results of the research with the wider market via the website “Workplace Strategy” which is a forum for the best new thinking in our markets. Looking ahead 14 Mitie Group plc | Sustainability Report 2016
Delivering excellence in health and safety Health and Safety Wherever we work and whatever we do, the health and safety of our employees is an absolute priority. This year we’ve focused on engaging with colleagues across Mitie to continue to bring home the crucial importance of assessing the risks around us, making the right decisions and always working safely. 15www.mitie.com
What we achievedOur approach Health and Safety We have a defined strategy to deliver excellence in health and safety performance, based on a clear vision of what “good” looks like and how this will be achieved. We strive to achieve this excellence in performance by focusing on the following areas: Leadership Health and safety management begins at the top with strong leadership. Our leadership development programme has focused on providing our leaders with the ability to prioritise the things that really matter in keeping our people healthy and safe, by focusing on the significant risks, understanding the root causes of unplanned events and, ultimately, embedding our core values: excel, challenge and inspire. Management system Our management system is designed to provide a strong framework for managing risk, aligned with the requirements of the international standards for quality management (ISO 9001), environmental management (ISO 14001) and health and safety management (OHSAS 18001). We aim to keep our processes and procedures as simple and pragmatic as possible to ensure they are readily understood and followed by all our employees. Employee engagement Underpinning everything that we do is our employee engagement programme, based upon our core values: Excel – we set clear expectations. We are open and honest, and welcome ideas to improve our QHSE performance; Challenge – we challenge people when they don’t do the right thing, no matter who they are, and Inspire – we take pride in working safely and are committed to setting new QHSE standards. We want all of our 62,000+ employees to be passionate about working for Mitie and to go home safely at the end of the working day – we call this our Work Safe Home Safe! programme. This programme has operated for over six years, constantly evolving to meet the needs of our people and the work they carry out for our clients. Throughout the many varied activities that our people undertake, in the varied working environments that this work is carried out in, looking after our people remains of paramount importance. Reviewing our targets Looking at our materiality analysis, and as part of a review of our performance within the sustainability steering group, it was felt our health and safety target ‘Embed our Work Safe Home Safe! behaviours’ was not strong enough. We have therefore decided to amend this target and measure both awareness and leadership within health and safety. We will now therefore measure our employees’ confidence in their management with regard to health and safety concerns. From this year onwards, our aim is to achieve 100% confidence – this will be measured via our employee survey and the score we receive on the following statement: “The person I report to takes my health and safety concerns seriously”. We are delighted to have achieved 89% this year. During 2015/16, approved by our Chief Executive, we reviewed, revised and refocused our QHSE strategy – providing a simplified and clear vision and mission on which to build our QHSE activities. The strategy was developed in a straightforward and simple manner, to make sure that the things that really matter will be delivered, providing the following key strategic aims: To continually improve our performance measured through the right set of key performance indicators; To provide meaningful employee engagement through targeted programmes; To ensure people are competent to do their job effectively; To ensure the right leadership and ownership in the right places; To engage with our clients on QHSE management and ensure a high level of satisfaction – giving Mitie a competitive advantage. 3% improvement on RIDDOR reportable rate 89% of our employees feel their manager takes health and safety concerns seriously 4% improvement over 7 day reportable rate 16 Mitie Group plc | Sustainability Report 2016
Health and Safety | what we achieved Employee engagement Our long-established Work Safe Home Safe! engagement programme continued to be the cornerstone of our efforts to ensure all our employees, at every level, are aware of their safety and wellbeing responsibilities when at work. Our ‘One lapse can last a lifetime’ series of short dramatic films, supported with additional learning material, ran throughout the year. Increased use of social media to release the WSHS! films and supporting material has enhanced our ability to track, in real time, the uptake of this material. Since its launch, we have had over 41,000 downloads of our material for use during team meetings, toolbox talks and team training. During 2015/6 focus was given to employee engagement via a range of specific risk- based workshops and ‘safety stand down’ days, addressing specific business risk profiles including road risk, work at height and occupational health. Award winning campaign Our commitment to workplace safety was rewarded this year with a Royal Television Society award for our employee engagement programme, Work Safe Home Safe! One of our Work Safe Home Safe! films, ‘The Penalty’ was the only corporate film to be nominated and went on to win ‘Best Short Film’. The films are relatable and powerful, and place an emphasis on improving people’s overall safety awareness, at work and at home. “Employee engagement and management leadership in health and safety continue to be our focus.” 6% improvement over 7 + Over 3 day rate 6% improvement on total recordable rate (Major, 7 and .3 day) 14% improvement on total days lost 17www.mitie.com
Health and Safety | what we achieved Looking ahead Having refreshed and re-communicated our QHSE strategy during the year, with a three-year time frame to achieve our aims, we will continue to focus on delivering the programmes to achieve these aims. We will continue to deliver the ‘One lapse can last a lifetime’ phase of our Work Safe Home Safe! programme, and develop further materials to make sure the message is understood across all our operations, using a wide range of communication tools. We will develop consistent measures of what ‘good’ looks like to help us achieve our vision of QHSE excellence. Innovative ways to communicate key health and safety messages Part of the reason our Work Safe Home Safe! employee engagement programme has been so successful is that each area of Mitie is able to customise the programme to the services they deliver and the areas they work in. The autonomy the teams have means they can respond to local issues very quickly and adapt to varying needs as they arise. One such example is within our specialist services business where senior management invited engineers and technicians to discuss safety and suggest new ideas of communicating existing content. The team came up with new stickers they could put on the inside of their vans and on work equipment as they felt they needed to be reminded of health and safety at busy times, whilst they were working. The stickers have proved extremely successful, not just in reducing the frequency of accidents but more importantly in engaging the front line team in safety discussions, with the teams now feeling they have greater opportunities to make their voice heard and put their ideas forward. 18 Mitie Group plc | Sustainability Report 2016
Engaging with our employees Engagement 19www.mitie.com There’s nothing more important to us than our people, so ensuring they feel fully engaged with Mitie is a key priority for us.
What we achievedOur approach Engagement Why engagement matters We introduced a new culture team into the business, dedicated to improving the motivation and engagement of our people. Why? Because we’re a people business and research shows that employee engagement levels correlate with better financial performance and higher levels of innovation. The stats speak for themselves: 59% of engaged people say work brings out their most creative ideas, while only 3% of the disengaged agree (Gallup); 67% of engaged employees advocate their organisations, with only 3% of the disengaged doing the same (Gallup); engaged employees take 2.7 sick days per year, while those considered disengaged take 6.2 (Gallup). Engaged employees are also 87% less likely to leave an organisation than the disengaged. Some estimates put the cost of high turnover among disengaged employees and the cost of replacing each employee at equal to an annual salary (Engaging for Success, Macleod et al). Employee engagement has always been a high priority but had an even keener focus this year. This was most noticeably underpinned by our investment in a new culture team, responsible for reinforcing Mitie’s culture, improving the motivation and engagement of Mitie people and measuring employee satisfaction. Employee satisfaction Introduced half-way through the year, the team’s first major project was the rollout of a brand new engagement survey, Misay, to create a new benchmark when it comes to employee engagement. We invested in an independent format to provide total 76% engagement score, based on our independent employee survey assurance of confidentiality and to highlight how strongly we value full and honest feedback. We also involved over 1,000 of our people in creating the survey – from setting up dozens of workshops to brainstorm survey topics and questions, and pilot testing the new format, to acting as champions to help roll out communications, feedback and project ideas. We had a significant rise in respondents this year, from 7 % in 2014 to 13% in December 2015 and a greater percentage of front line employees (74%) vs salaried employees (10%), giving them a louder voice. But what’s been invaluable is the addition of free commentary boxes, providing us with over 80,000 individual comments and suggestions for improvements to help us become an even stronger people business. 81% of employees surveyed say they are proud to work for Mitie. 80,000+ individual comments from employees in this year’s survey 20 Mitie Group plc | Sustainability Report 2016
Recognising and rewarding those who go above and beyond Fraser was a true hero for a family who lost control of their car last year. After the car plummeted, landing 50 feet below in a loch, Fraser not only rescued the four members of the family who were on their way to the airport, but their luggage, too! His bravery and cool head earned him the gratitude of the family, and a position in last year’s Stars awards final. Engagement | what we achieved The results have highlighted the areas in which we excel and need to maintain, as well as those we need to address in each business over the coming year. We are currently responding to this feedback with our business leaders to ensure ownership and collaboration are maximised. Our employees told us that they feel supported, safe and happy with the way they are treated by the people they report to, but would like even more face-to-face time with them and more regular performance reviews. Employee induction was a common topic across this year’s survey. Our regional induction programme, which was introduced last year, has been well received at all of our employee roadshows. We will now focus on improving the induction of new employees at a local level and a group level, doing so on a more personal and consistent basis. Recognition was another key theme; our Stars scheme continues to go from strength to strength with an increase of 629 nominations from the previous year (3,095 in total). But feedback suggests that we need to work harder at instantly recognising the hard work and achievements of our people, as well as acknowledging and rewarding our long-serving employees. And lastly, we’ll be exploring ways to improve our current payroll process and the support provided for our employees with payroll queries. To maximise the output from this exercise, we are discussing ideas with our people through a variety of events and will be hosting focus groups, pulse surveys and working forums to agree definitive projects for development and roll-out over the next year. 3,095 Mitie Star nominations 480 Mitie Stars were nominated by our clients 21www.mitie.com
Engagement | what we achieved Looking ahead We will be developing a comprehensive approach to wellbeing over the next year to help improve the financial, physical and mental health of all 62,000+ Mitie people. Personal wellbeing, in particular mental health, was mentioned frequently in this year’s Misay survey – a trend supported by the World Health Organisation which estimates that one in four people will be affected by mental health illness at some stage in their lives. The Health and Safety Executive also estimates that stress costs business £3.8 billion a year. As well as developing a robust wellbeing and occupational health strategy over the next 12 months, we will be progressing with our newly-established wellbeing calendar to help promote the main health awareness days world-wide, and the ways our employees can prevent, identify and treat disease. We will also continue to drive awareness of and engagement in our employee assistance programme (EAP), providing free, confidential and independent advice and guidance on a range of topics including home life, work life and wellbeing for our people and our confidential Speak Up service for employees who become aware of issues relating to bullying and harassment, discrimination, health and safety, and fraud. What did our people say? 86% positively agreed with the statement: “The person I report to treats me fairly.” This rose to 91% when asked if they are treated with respect. 90% of employees agree they have equal opportunities regardless of gender, ethnic origin, disability, religion, age or sexual orientation. 22 Mitie Group plc | Sustainability Report 2016
Retaining and developing our people Talent 23www.mitie.com The development and retention of our employees is a constant priority. It helps us grow our business to be the best it can be, in a responsible, sustainable manner and in a way that stays true to the Mitie ethos of providing opportunity for all.
Our approach Talent Development opportunities are made available to all our people, enabling them to meet the core requirements of their role, to maximise their performance, and to enable their future career progression within Mitie – whoever they are. Each business area, working in partnership with HR, identifies and implements initiatives to ensure all its people receive the training they need to be effective in their roles, ensuring full compliance with legislative and regulatory requirements and providing access to opportunities to further develop their careers. We focus particularly on management and leadership development so that individuals at every level are equipped with the knowledge and skills needed, from first line supervisors, to middle managers and into senior and executive management. An annual talent and succession review is led by the central HR team, with the CEO and each business MD, reviewing the performance and potential of the ‘top 100’ population. A structured talent and succession action plan is generated, owned by each business MD, detailing agreed actions to best develop and leverage capability and mitigate business risk arising from potential skills gaps. The recruitment of graduate talent is of critical importance to support fresh thinking in the business. Mitie has forged strong relationships with universities across the UK to attract candidates from broad and diverse backgrounds. The Mitie Graduate Programme involves candidates completing a number of structured placements over a 12-month period, in different business areas, gaining practical experience working closely with our client base. The programme has now been successfully delivered for seven years, with +70% retention to date. The Apprenticeship Programme is an essential element of the talent and succession strategy. It has significantly grown in size and reach over the past four years, with a broad range of apprenticeships available to existing employees, as well as to school leavers and other young people – with a focus on attracting applicants from under-represented groups (female and ethnic minorities). Once apprentices have completed their programmes, they are encouraged to consider a higher level apprenticeship as part of an agreed career development plan. All apprentices are employed in a permanent role on starting their apprenticeship and upon completion. To date, over 40% of apprentices have progressed to a managerial role within five years of completing their programme. We gained recognition at the Apprenticeship Careers Awards as a Top 10 Apprenticeship Employer in STEM (Science, Technology, Engineering and Mathematics) and as an overall Top 50 Apprenticeship Employer in the UK. From cleaning operative to co-ordinator Enzo is one of our many successful apprentices. Having joined Mitie in 2009 as a cleaning operative, he has been promoted twice and now works as an area co-ordinator. Throughout his career at Mitie, Enzo has not only progressed professionally, but also fast tracked his personal development by completing a variety of functional courses such as English, maths, and customer service training. “Mitie’s training and support have helped me to be better at my daily job, but also helped me improve my English. I understand my responsibilities more clearly and feel more confident to face everyday challenges.” 24 Mitie Group plc | Sustainability Report 2016
Talent The development and retention of leaders remains a key priority. We have made a significant investment in the independent, external assessment and development of the Senior Executive Team. This has provided the business and each individual with areas of strength and how to best leverage these, and areas of development, to ensure Mitie has the required skills and capability to realise future growth and business plans. This was an outcome of the annual Talent and Succession Review and is being used to actively inform succession planning. In addition to this, every business area has invested in the further development of its leadership population, to support the delivery of future business performance: A further Key Accounts Programme was delivered, in partnership with Manchester Business School, for 20 key individuals in roles including key account director, sector director and regional operations director, focused on developing strategic thinking, customer relationship management and commercial management. Now in its third year of delivery, five delegates have gained promotion to date. We have delivered 398 training days, with 379 delegates, across all levels of management, within Technical Facilities Management focused on developing skills and capability in core management fundamentals and improving awareness and understanding of areas such as mental health and wellbeing. We have continued to develop our account capability in effective customer relationship management, through the Journey to Service Excellence Programme, designed and delivered within our Integrated Facilities Management business, in partnership with Rolls-Royce. This modular programme, for c.800 people, in total, across all levels of employee includes elements such as: The Trusted Advisor Programme; three-day residential programme for Facilities Managers Leading the 1Team Way; four modules for Team Leaders The 1Team Way; four modules for in-house delivery teams Apprenticeships We have focused on promoting apprenticeship opportunities to address gender and BAME imbalances in certain sectors. In the last year, this has resulted in 20% of new apprentices in our engineering business being female and 8% within construction related apprenticeships. 13% of our new engineering apprentices have come from within the BAME community and 8% within our construction business. These figures compare favourably against national averages of 3.8 % female and c.4% BAME in Engineering and 1.7% female and c.3% BAME in Construction. What we achieved 104,003 Total training days delivered this year 57,859 E-learning courses completed this year Graduate programme statistics: 7 Years the programme has been running 32 Graduates 73% Retention vs 63% industry norm For the second successive year Mitie has had over 2,000 apprentices in training during the period, with 90% achievement level, against the national achievement average of 70%. 25www.mitie.com
Developing the leaders of tomorrow In 2016, Mitie apprentice Isabelle Winter won the National Business Admin Apprenticeship Award. As part of her prize, Isabelle attended a day at 10 Downing Street where she met a Member of Parliament, took part in a QA session and had afternoon tea. “The Apprenticeship Programme gave me great opportunities and experiences that have helped me to grow, and I am extremely thankful for this.” Talent | what we achieved Looking ahead Developing leadership and management capabilities Our Cleaning business will invest significant time and resource developing middle managers in effective leadership and maximising employee performance, engagement and retention. Our Technical Facilities Management business will further expand the delivery of the ‘Manager Essentials Programme’ across UK sites, developing core leadership capability. Building on the success from FY15/16, our Security business will provide further development to Operations Managers and Site Managers, increasing cross-business knowledge and customer service ethos. Building on the success of the Key Accounts Programme, a next-level programme will also be designed and launched with Manchester Business School. At least twenty delegates will gain structured development in areas such as senior leadership, developing marketing-led strategy, commercial management and building effective relationships through networking. Developing young talent We will build on the previous success of the Mitie Graduate Programme, doubling the number of candidates that will join Mitie in September 2016, with the introduction of more specific Finance and IT-based graduate programmes. We intend to support the Government’s initiative to increase apprenticeship numbers, with particular focus on extending apprenticeship delivery in our Healthcare and Catering businesses, and continuing the emphasis on expanding diversity across all of our apprenticeship programmes. Additionally, we plan to encourage a greater number of people to commence a Higher Apprenticeship Programme, particularly at levels 4 and 5, and we have started discussions with academics and a number of our competitors to develop additional sector-specific programmes at these levels. We will continue to maintain our activity in a number of Apprenticeship Trailblazer initiatives across the sector to ensure that there are approved new standards relevant to our people in all the business sectors in which we operate. Additionally, we will continue with our efforts to encourage the adoption of apprenticeships amongst our supply chain. The year ahead is likely to see multiple announcements regarding detailed operation of the new Apprenticeship Levy. We are staying close to developments so that we will be ready to maximise apprenticeship participation when the future arrangements are known. 26 Mitie Group plc | Sustainability Report 2016
Exceeding our clients’ expectations Our clients What can clients expect from us – especially in relation to their social and environmental goals? The key to achieving our target is meeting, anticipating and hopefully exceeding our clients’ expectations. We do this through great relationship management, innovative thinking and clever use of technology, backed up by a culture of customer service. 27www.mitie.com
What we achievedOur approach Our clients Building our business isn’t simply about maintaining the status quo – our success and growth depend on building long-term relationships with our clients that position us as a trusted partner and strategic resource. Because of the way Mitie operates and the vast number of services and markets we work in, it can sometimes be hard to approach something in a ‘one size fits all’ manner – especially when dealing with so many different clients, each with their own requirements. However, we developed a client relationship management training programme that aims to professionalise the way we deal with clients at every level. The programme has five main themes our people need to understand and explore when engaging with clients: Knowledge – making sure we take time to understand our clients’ business, objectives and strategies; Value – focusing on those activities that add real value to the client, investing in innovation and pioneering new ways of working on the contract; Relationships – investing in and maintaining relationships throughout the length of the contract and beyond, not just at the point of sale; Capability – keeping up with and adapting to change as quickly and efficiently as possible to meet our clients’ needs at all times; and Development – sharing best practice throughout the organisation to make sure we’re developing our people, processes and services consistently and constantly, always learning. Client satisfaction Client satisfaction is measured informally throughout the year within contract management and business specific teams. We also measure satisfaction more formally once a year through an independently-run client survey. Using a different approach to previous client satisfaction surveys, this year we gave our key customers the opportunity to expand on their answers via comment boxes at the end of each question – resulting in 1,658 free expression comments. In addition to this, more than 10% of senior decision makers at our top 200 contracts were called for a one-to-one telephone interview, enabling us to consider their feedback in more detail. The quantitative data and qualitative feedback received from both the free expression comments and the telephone interviews have now been shared with the relevant teams to take action to ensure we are partnering with our clients in a way that works for them. Client relationship management In 2014, we launched the Miclient, our futures campaign, providing a platform for Mitie people to learn new ways to keep customers at the centre of our service. As part of the initiative, we introduced the Miclient Awards in 2015, which received over 91 nominations from across our business and recognised winners in three categories – ‘Best aligned to the Miclient pillars’, ‘Outstanding individual or team contribution’ and ‘Most inspiring retention success’. The results have been clear – our contract retention rate is 88%. Most notable successes include extensions with RWE npower, the Cumbrian Collaboration, and a landmark extension of our international service provision for Rolls-Royce. In an extensive research project, we investigated trends affecting the rapidly- changing modern workplace, including employee productivity, impact of new technology, and employers’ attitudes to wellbeing, the importance of effective data and the battle for talent. The results demonstrate significant differences across market sectors and between different employee age and gender profiles. Three ERP events: Two legal sector roundtables: One finance sector roundtable: Debate: How can FM impact productivity in the workplace? Workshop: How to create an outcomes- based model for FM delivery Debate: How can FM deliver workplace transformation? Optimising outsourcing in the legal sector Embracing workplace change Are people working in financial and professional services really unhappy with their workplaces? 21% Net promoter score Customer forums Now in its third year, our award-winning Executive Relationship Programme (ERP) focuses on a wide range of strategic workplace issues. 28 Mitie Group plc | Sustainability Report 2016
Our clients | what we achieved This research discovered that the quality of our clients’ buildings and facilities had a direct result on their employees’ productivity and satisfaction in the workplace and helped shape a number of the events throughout the year. Over 50 clients attended our ERP events during the year and we have had over 2,800 pageviews of our blogs on workplace topics. The ERP programme was externally recognised in the B2B Marketing Awards for the ‘Best corporate decision-maker-targeted campaign’ category in November 2015. The success of the programme has prompted us to roll it out to other regions within the UK and to other key sectors. Technology This year, we’ve continued to develop our management information tool, Miworld, improving functionality and ensuring that our people and clients have access to up-to-the- minute data for all facilities management services. The progress with Miworld over the last 12 months has been largely underpinned and enhanced by wider investments in technology from our individual service lines. We’ve witnessed dramatic innovations in our services over the last year, from the introduction of drone technology in our landscapes and security businesses, to the mobilisation of wearable technology for our cleaning teams. We have even launched new monitoring software that allows our compliance team to track the wear and tear of individual building components, enabling us to provide a more tailored level of service that truly reflects the lifecycle of clients’ property assets. As a result, we have had access to increasingly detailed FM and property data that can be collated and analysed to develop new, unique and exciting solutions for our clients. Sustainable development framework We have continued to work with key clients to achieve their sustainability objectives. Our initiatives to add value to our clients’ estates have included waste and recycling schemes and LED lighting projects, leading to multiple award nominations for the edie Environment Energy Awards including the Waste and Resource Efficiency Award, the Health and Safety Initiative Award and the Energy Institute Manager of the Year. We were also proud to win an award from Acre 365, a sustainability awards scheme, recognising the environmental impact of our energy work with Lloyds Banking Group, which has delivered more than £5 million in savings. Our sustainable development framework has been instrumental in helping us to examine our operations from the inside out, thereby enabling us to identify areas of improvement for sustainable operations and, subsequently, improve customer experience. Winners at the Business to Business Marketing Awards 2015 In its third year, our Executive Relationship Programme (ERP) won ‘Best corporate decision-maker-targeted campaign’ at the 2015 Business to Business Marketing Awards. The ERP was launched in 2013 to help Mitie build relationships with strategic level contacts across our top 400 clients and prospects, with the aim of changing the marketing model from reacting to tender invitations for fixed specification contracts to engaging C-level executives to influence their strategies and create new business opportunities. In 2014 over 100 senior executives took part in events and research. The average contract value signed by clients who had taken part in the programme is three- and-a-half times greater than companies that have not. Furthermore, the average contract renewal value is four times greater among those who have taken part than among those who have not. 29www.mitie.com
Our clients | what we achieved Looking ahead In addition to the great strides made by our Miworld team this year, we are excited about the launch of Edison, a workplace assistant tool that forms part of the wider Miworld suite. Targeted at end-users within the buildings that we service, Edison is a web-based platform that gives users access to building facilities and services at the tap of a button, helping them to make their work lives easier and enabling them to make the most of their workplace. Thanks to our Executive Research Programme, we have been able to generate a rich output of strategy documents and white papers which have been very well received. This has prompted us to sponsor an industry knowledge portal where this and other valuable content can reside and be shared with like-minded industry professionals. Called Workplace Strategy, the portal is run independently with its own editor. While we realise that the FM industry isn’t exactly short of publications, we believe that Workplace Strategy will fill a gap in this field by focussing on the strategic rather than operational dimension of facilities management. The content will span a wide range of subject matter including expert opinion, case studies of industry best practice and innovation, current industry issues, research and latest thinking. Furthermore, we believe that Workplace Strategy will have the added benefit of bringing Mitie closer to its clients and potential clients through a better understanding of the strategic issues they face and the drivers in their particular sphere. We believe that this understanding will allow us to develop more relevant solutions, tailored to the future needs of our clients. Recycling efforts at Birmingham Airport Our contract with Birmingham Airport created an opportunity to divert food waste from other streams, in order to increase recycling efforts and to prevent the contamination of recyclable materials. Following a small trial to get stakeholders fully involved and committed to the new process, food waste was successfully segregated and a full recycling scheme rolled out. Working within one of the larger offices at the airport, we have recycled almost 9,000 kg worth of goods, with further growth expected over the next few months. Mitie helps Network Rail achieve Carbon Trust accreditation Network Rail, under the management of Mitie, became one of the first organisations in the transport sector to be awarded the Carbon Trust Standard for Waste certification for all of its UK corporate offices and training centres. The Carbon Trust Standard for Waste provides a framework for organisations to measure, manage and reduce their waste outputs year on year, with independent verification of actual progress. Thanks to Mitie, Network Rail was awarded a particularly high score in the qualitative waste management assessment conducted as part of the certification, putting the business in the top 10 percent of all organisations assessed by the Carbon Trust. 30 Mitie Group plc | Sustainability Report 2016
Equal opportunity for everyone Diversity 31www.mitie.com Mitie’s employment practices and policies are designed to recruit, motivate, retain, train and develop the very best people, recognising that this can be achieved only through offering equal opportunities regardless of gender, race, religion, age, disability, sexual orientation or any other aspect of diversity.
What we achievedOur approach Diversity The Board is responsible for driving the diversity agenda throughout the organisation, supported by an independently- chaired Diversity Steering Group comprised of senior business leaders from all business areas, as well as the chairs of our employee diversity networks. The Steering Group identifies group-wide strategy and facilitates business-specific diversity action plans to drive the diversity agenda. The Board remains committed to developing a culture that encourages the inclusion and diversity of all of the Group’s employees, respecting and appreciating their differences and promoting the continuous development of employees through skills enhancement and training programmes. Mitie is keen to ensure that all aspects of diversity are considered in the promotion, retention and development of the talent pipeline throughout the group as well as at Board level. We have recently introduced Board-level targets around gender, race and age for each of our businesses. Target achieved We are delighted to have achieved our 90% target with regard to diversity. Diversity week We are passionate about building a diverse and inclusive business, and we’re focused on supporting and developing all of our people, irrespective of gender, age, race, faith, sexual orientation, disability or culture. That’s why on 21 September 2015 we kicked off our second Diversity Week. Spread over more than a week due to the plethora of events taking place, we ran workshops, training and inspirational speeches all across the country, to celebrate the differences of our people and raise awareness and understanding of diversity and inclusion at work. Unconscious bias Unconscious bias is something that affects us all, unknowingly forming our opinions based on pre-conceived stereotypes about people based on their age, gender, race, sexuality or other aspects of diversity. To help promote a more inclusive culture at Mitie, we rolled out a training module in our online learning environment, available to all Mitie people, inviting them to challenge their thoughts so that our people can recognise each other’s talent and ability. 90% of employees feel they have equal opportunities 3,480 Mitie people completed unconscious bias training The training has been completed by 3,480 Mitie people in the last 12 months. Employee networks We have launched four employee networks in the past 12 months, to discuss issues and support all Mitie colleagues, specifically in areas including gender, race, disability and sexual orientation. Each network has an Executive Board sponsor, a Chair and Committee to support colleagues and further drive the diversity agenda, ensuring that all our networks are inclusive and accessible to all Mitie people. 32 Mitie Group plc | Sustainability Report 2016
Diversity | what we achieved The model of an employee-led, Board sponsored forum has proven successful, with the relaunch of the Engender network to support our male and female colleagues by promoting gender equality. During 2015, this model was replicated by the launch of further networks, namely: Kaleidoscope for Mitie’s Black, Asian and minority ethnic people (BAME), and Proud to Be for our lesbian, gay, bisexual and trans (LGBT) employees. In 2016, we intend to launch our disability network (Enable) which is aimed at supporting our disabled staff, by focusing on ability rather than disability. The network also aims to change perceptions of disability, by promoting awareness of invisible illnesses and mental health. Mitie’s employee networks have common aims and operating principles: raising awareness, improving understanding and providing support for all Mitie people, whilst recognising that some matters are of particular relevance and importance to certain groups of people. So far, our employee networks have: Delivered training materials relating to trans inclusion and awareness; Signed Mitie up as a Top Employer for workingmums.co.uk to show our commitment in the area going forward; and Worked in collaboration with West Midlands Police to empower and educate young people, parents and teachers on the dangers of social media, sexual exploitation and domestic violence. Working with Remploy Mitie continues to build successfully on its long-standing relationship with Remploy, which has been in place since 2006. Through this formal partnership, Mitie actively provides support for disabled people through provision of work experience and employment opportunities, with more than 700 disabled people employed to date since the start of our relationship in 2006, against our target of 400 new recruits by mid 2016. Partnership with Stonewall Stonewall is a lesbian, gay, bisexual and trans (LGBT) rights charity, renowned for its campaigning and lobbying. The Stonewall Diversity Champions Programme is Britain’s leading employers’ forum for sexual orientation and gender identity. The programme helps businesses, charities and public services to develop inclusive workplace cultures. Mitie is now a member of the Stonewall Diversity Champions Programme, which will see us benefit from consultancy from subject matter experts on LGBT inclusion and drive our diversity agenda forward. Diversity is key in our business At the 2015 Business in the Community Diversity and Wellbeing Benchmark, 98 public and private sector organisations submitted workforce data on gender and race. Mitie was one of these organisations and we were assessed on a range of key areas, including career progression, recruitment, supplier diversity, senior management and board representation of ethnic minorities and women. We were one of a niche group of organisations that completed multiple gender and race benchmarks across the group. In total we secured two Platinum, three Gold, one Silver and two Bronze bandings across four of our businesses. 33www.mitie.com
Diversity | what we achieved Looking ahead We are working on a number of innovative approaches to recruiting, supporting and developing disabled talent including a project to support people on the autistic spectrum in the construction industry, and supporting people with learning disabilities. Continuing to strengthen relations in the disability arena, we are hoping to pilot a traineeship scheme involving 60 people over the next 18 months, in partnership with the National Autistic Society and Remploy. We aim to benchmark our work in the disability arena in the next 12 months, by completing an externally validated disability benchmarking exercise. Following a highly successful Diversity Week in 2015, the Diversity Steering Group has agreed to promote quarterly diversity themes over the next 12 months: unconscious bias, disability, wellbeing and ethnic minority talent. Mitie’s four employee networks are also working together to hold relevant events to support these themes, and others, to promote awareness. The networks are also working on year-long plans, with measurable objectives and deliverables, such as reviewing Mitie’s people policies to ensure they are as inclusive as possible. We introduced targets for age, gender and ethnicity for each of our business boards this year. We intend to publish these targets and our progress in next year’s report. Employee network Engender has already achieved some success: 1. Mitie has signed up to the Scottish Government’s Partnership for Change. This is one of the Scottish Government’s key policies aimed at realising women’s equality and bringing greater diversity – both in terms of gender balance but more broadly too – to boardrooms up and down Scotland. 2. We have also signed up to the national Inspiring Women campaign. We will talk to girls in state schools about the ‘job we do’ and route we took. Inspiring Women’s ambition is to see people from a wide range of occupations going into state schools collectively talking to 500,000 young women. Promoting diversity in the STEM sector With one in five university students in the UK studying science, technology, engineering and mathematics (STEM) subjects coming from a black, Asian and minority ethnicities (BAME) background, the STEM sector has surprisingly low numbers of BAME employees. With 74% of BAME individuals in managerial positions spread over only three business sectors, there is a clear need to tackle the issue. With this in mind, Mitie organised a meeting with Business in the Community (BITC) and STEM business leaders to discuss how businesses can secure a more diverse workforce. Mitie’s Gary Zetter demonstrated how our apprenticeship and work placement programmes are working to recruit, retain and progress our BAME talent. Delegates were given the opportunity to hear from some of our BAME technical apprentices, whose enthusiasm for a career in the sector was immediately apparent as well as their confidence in Mitie, stating that “Mitie doesn’t just talk the talk, it walks the walk.” 34 Mitie Group plc | Sustainability Report 2016
Reducing our impact on the environment Environment 35www.mitie.com All human activity has an impact on the planet, and that includes our own business. We believe we have a responsibility to do everything we can to minimise that impact, and reduce our carbon footprint, and we are committed to doing that.
Our approach Environment Our reporting approach follows the Defra guidance on how to measure and monitor greenhouse gas emissions 2009. The guidance is based on the GHG protocol for scopes 1, 2 and 3. Defra/DECC’s UK Government conversion factors for Company Reporting 2015 have been used. Mitie’s emissions are not covered under the EU ETS, a Climate Change Agreement nor the Carbon Reduction Commitment Energy Efficiency Scheme. (CRC) Organisational boundary In the calculation of emissions, the financial control approach has been adopted, under which a company accounts for 100% of the GHG emissions from operations over which it has financial control. It does not account for GHG emissions from operations in which it owns an interest but has no control, which would include investments. The financial control approach is defined as follows: “A company has financial control over an operation if the company has the ability to direct the financial and operating policies of the operation with a view to gaining economic benefits from its activities.” Our emissions scope is confined to the UK where we have full financial control over our administrative offices and stores. This includes previous acquisitions of MiHomecare (Enara) and CreativEvents. Emissions from a small Scandinavian operation have been excluded from this report as its emissions are immaterial and data is not available. We have continued to report a relatively small office in Republic of Ireland within our UK reporting using UK conversion factors. The rest of our international operations take place in our clients’ sites so are outside of this reporting boundary. Scope 1 emissions comprise: Gas consumed in Mitie’s owned and leased administrative offices and stores through a Mitie managed energy contract. Vehicle fuel consumed in Mitie’s own fleet, as monitored through our contracted Shell fuel card system for both commercial and domestic vehicles. This includes a small element of fuel consumption for personal use, which inflates the reported emissions, but is consistent with previous years. We have not included a figure for fugitive emissions from air conditioning systems (refrigerant leakage). This is due to a lack of centralised data on refrigerant top-ups. This is expected to be a very small proportion of our total emissions. Scope 2 emissions comprise: Electricity consumed at Mitie’s owned and leased administrative offices and stores where purchased through a Mitie managed energy contract. Scope 3 emissions comprise: Vehicle fuel consumption for business travel in non-fleet vehicles (such as private cars), as recorded through expenses. This is outside the Shell fuel card system. It is recognised that a small amount of fuel included in this category constitutes scope 1 emissions. The remaining emissions in this category are assumed to be total fuel spend but in reality may be a mixture of HMRC levied expensed items and fully expensed items. This may in effect slightly understate the real position. Electricity and gas not consumed under a Mitie- managed energy contract i.e. through landlord serviced and invoiced arrangements. Indirect emissions for scopes 1 and 2 for electricity, gas and transport fuel. Water consumption in m3 from Mitie’s own administrative offices and stores (regardless of who manages the utility contract). Other data under scope 3 comprises: Created waste in tonnes = general waste + recycled waste (tonnes) from Mitie’s own administrative offices and stores (excluding client-generated waste). Waste is not included within the reported emissions. 36 Mitie Group plc | Sustainability Report 2016
Environment | what we achieved -21% We’ve reduced energy consumption by 21% since 2009/2010 What we achieved Energy Our total energy consumption (electricity and gas) in 2015/16 was around 41% lower for our Facilities Management business and 21% lower for the Group, compared to our 2009/10 base year. Our energy intensity (tonnes CO2 /£m revenue) was 29% lower than in the base year and 16% lower in terms of tonnes per employee. To improve our data quality we are investing in Automated Meter Reading technology (AMR) across the estate. This will help us more accurately measure and forecast energy data, and achieve up to 15% in energy savings. After an extensive energy audit, we found that our entire property estate is above band E in energy efficiency and that no new property is being acquired that is below band D. Ultimately our goal is to dispose of all band D or lower rated buildings. In our larger office sites we are running a Building Management System optimisation exercise to ensure the buildings run more efficiently. This exercise is expected to be completed by June 2016 with anticipated savings in energy use of 5 - 8%. Transport As the UK’s 11th largest fleet running over 7,000 vehicles across our car and commercial fleet, we are committed to reducing our impact on the environment. By the very nature of fleet size and geographic spread, Mitie’s fleet uses large volumes of fuel (approx 15m litres per annum) to deliver the needs of our clients and services. As in previous years, our total vehicle fuel consumption dominates our carbon emissions, representing 91% of total Scope 1 and 2 annual CO2 emissions. While our total fuel consumption has grown since the baseline year due to business growth and a corresponding increase in our fleet size, our total fuel consumption relative to our revenue has decreased by 27% from the base year; showing that our fleet is becoming more efficient each year. Innovative driver training to improve fuel efficiency Over the last few years, we have perfected our driver training through the introduction of a driving simulator. The innovative, fully mobile, driver training facility has been specifically designed and developed to improve the safety of all business drivers as well as educate them in carbon efficient driving. While the simulator teaches people about health and safety guidelines to ensure safe driving it also helps develop more economical driving behaviours and therefore reduce fuel cost and emissions. Since its introduction 1,200+ drivers have completed the simulator driver awareness training. 37www.mitie.com
Environment | what we achieved Looking ahead Energy awareness is our next focus. During 2016/2017 we plan to run a number of online awareness campaigns to ensure as many colleagues as possible are made aware of the impact of poor energy usage. Simple messages like switching off lights, computers or the air conditioning, alongside interesting usage statistics, will be communicated regularly in all Mitie offices and on private social media networks to reach more people/users. Where cost effective to do so we will replace light fittings for low energy units. We will also focus on the overall reduction in energy and waste by working towards a Hub and Spindle accommodation model, reducing the number of locations by 20-30% and investing some of the savings in the remaining estate to further support carbon reduction targets. In terms of focus areas in transport, we have carried out extensive trials of the next generation of vehicle tracking and telematics systems and now, having received the results, we are evaluating the benefits of installation across the complete commercial fleet, with the potential of also fitting to some of our core car fleet if deemed beneficial. We are also continually assessing the market place for new technologies, which will assist us in enhanced driver and vehicle management, whilst reducing the risk to our drivers and the general public. 31% We’ve increased our recycling rates by 31% since last year. Sustainable purchasing has enabled us to drive down emissions across our fleet with current average passenger vehicle emissions down to 108g CO2 /km, a 4g reduction on last year, against the European average of 119g/km. We continue to carry out driver simulator training for our drivers. This helps to enhance individual driver skills, reducing accident/ incident risk and improving fuel consumption. And we also continue with the utilisation of electric vehicles at viable locations, with continual assessment of future requirements. Water We’ve reduced our water consumption by 12.4% since last year, which per employee is 8.3% lower than in the base year. Waste Overall, recovery and diversion from landfill achieved on the sites we manage directly (ie using Mitie’s waste and environmental experts) is 95% but there is still scope for improvement through further recovery opportunities such as introducing food waste recovery on larger sites. Our recycling rates have increased by 31% compared with last year. This could be attributed to increased accuracy of our waste data where more sites have been able to provide us with data. Though we accept that there is still a degree of uncertainty in our waste volumes and recycling rates, the greater visibility achieved through less estimated data allows us to target where future reductions could be made. 38 Mitie Group plc | Sustainability Report 2016
Changing lives for people of all backgrounds Communities 39www.mitie.com We’re really proud of the work we do to strengthen the communities we work in. Reaching out to local communities, especially in partnership with clients and suppliers, enables us to optimise our contributions and expand our community footprint.
What we achievedOur approach Communities The Mitie Foundation is an independent charity with a vision to change lives for people of all backgrounds by improving their opportunities to join the world of work, widening their aspirations and unlocking their true potential. The majority of community activities across Mitie are coordinated through the Foundation and fall under one of three themes: Education – Our community engagement calendar is populated with Foundation-run World of Work days, Business Challenge days and interview workshops. It also includes many educational business partnership days where Mitie volunteers attend alongside local employers. A volunteering schedule is issued three months in advance to allow volunteers to manage their diaries. Employment – The Ready2Work programme is the Foundation’s flagship employability programme which helps unemployed job seekers gain work experience within a Mitie business, with one of our clients, or a partner organisation with the ultimate goal of helping them secure full time employment. We provide pre-placement training to prepare and support candidates throughout the placement, and run programmes wherever Mitie has enough presence to provide a dozen real work experience places. Candidates are generally long-term unemployed and represent various disadvantaged groups. Enterprise – We support social enterprises with mentors, advice and route to market for their wares. We host ‘Entrepreneur of the Year’ awards each year at three academies in the Midlands, with the winners invited to a Mitie client site. The Foundation has a growing number of ambassadors; Mitie people who meet regionally each quarter to make sure all the Foundation’s activities are clearly communicated to the business, and encourage as many people as possible to support Foundation activity. This year the ambassadors, alongside other Mitie and client organisation volunteers, attended 239 events at over 163 schools, academies and sixth- form colleges, engaging with and inspiring over 27,000 future business leaders. Employment In the last 12 months our employability team has made a conscious effort to focus on those people furthest from the job market, rather than chase numbers of candidates going through our Ready2Work programme. As well as working closely with local Jobcentre Plus offices, the Foundation team has supported candidates with disabilities, with experience of the criminal justice system, with refugee status and other disadvantaged groups. To provide sustained and relevant support this has included working alongside organisations such as Remploy, Working Chance and Breaking Barriers, who all have expertise in their respective areas. The Foundation has also invited Mitie employees to nominate ‘friends and family’ for consideration for all Ready2Work programmes, which were run in Birmingham, Manchester, London, Leeds and Bristol this year. 0.9% community investment represents 0.9% of our pre-tax profit 39 candidates out of 62 completed the placement and 26 gained employment or returned to full time education Helping and changing lives. “There were many times that I felt I wasn’t good enough and even thought about quitting the programme when things didn’t go according to plan. But I didn’t, and with the help of the team at Mitie I persevered, and boy did it pay off. Not only did I complete the course, meet some incredibly inspiring people, and win a cash prize, I was offered a job as a contracts administrator for our client at Channel 4, and I couldn’t be happier!” Trevene Downie completed the Ready2Work programme in 2016. 40 Mitie Group plc | Sustainability Report 2016
Communities | what we achieved Out of 62 candidates this year, 39 completed the placement and 26 gained employment or returned to full time education. Education – skills centres Mitie opened the first construction skills centre, designed to teach construction skills to 14-16 year olds, in 2002, and now has six centres across the UK where over 4,300 students have gained valuable vocational qualifications and experience. Subjects covered include bricklaying, painting and decorating, carpentry and joinery. Each year we support over 300 14-16 year old students to attain BTEC/WJEC Construction Certificates and Diplomas. After the initial investment of up to £45,000 per skills centre, the Mitie Foundation has continued to provide support with PPE, work wear, tools and materials amounting to over £15,000 each year. Some of the skills centres also invite students from nearby schools, including students with special educational needs, to use the facilities, and provide DIY classes for the local community. Launched this year, our innovative ‘Customer Services Academy’ has nine students being paid whilst training to work in the Mitie Client Services business. In collaboration with Working Knowledge and Westminster College the students are gaining recognised qualifications and receiving on-the-job training too. The Foundation is supporting this targeted ‘Skills Centre’ model, and plans to encourage other Mitie businesses to address skills shortages in a similar way. Enterprise – inspiring people This year the Foundation has focused on expanding the coverage and variety of volunteering opportunities, by adding new challenging events including ‘Enterprise Skills’, ‘Employability Masterclass’ and ‘Stock Exchange’ days. We have also added opportunities to mentor people inside the criminal justice system. Foundation-led prison events have helped to remove barriers to employment and led to offers of work experience, guaranteed job interviews and employment upon release. Giving to the community, consistently. Over the past ten years, Head of Sustainability Neil Plant has made an impressive contribution to Mitie’s volunteering programme. Neil organises and runs activities, events and projects for young people up and down the country, and his continued hard work and dedication helped to grow the volunteering programme within his business into a national scheme that reaches almost 6,000 students and young people from diverse backgrounds all over the UK.“Over 4,300 students have gained valuable vocational qualifications in Mitie skills centres.” 41www.mitie.com
Communities | what we achieved Looking ahead Over the next 12 months we will be focusing on supporting people from disadvantaged backgrounds. This includes people with disabilities, with experience of being in care, ex-offenders, refugees and people from low socio-economic backgrounds. Employability Our Ready2Work programmes will be introduced to new locations to match the evolving Mitie business. Cities will include Derby, Edinburgh and Durham, usually with a group of 12 candidates in each city. Skills Centres As well as continuing to support the Mitie Skills Centres attached to schools, we plan to create our first ‘Local Networks Academy’ linked to a local prison and delivering training to meet local skills shortages. Community investment Our community investment for the year 2015/16 represents 0.9% of our pre-tax profit which demonstrates a positive move toward our 2020 target of 1%. We have a clear focus on how to build on this progress next year. The overall community investment for 2015/16 is up 7.5% to £986,466. The main contributors to this increase were the 19.2% increase in the value of employees volunteering and a 16.8% increase in the value of gifts in kind. Our donations to charities include donations made to the Mitie Foundation, including the salaries and expenses of four full-time employees as well as costs associated with running our award-winning Ready2Work programme and other initiatives. Our gifts in kind include materials we donate to our six skills centres across the country. Lambeth elderly not lonely with Mitie As part of our community involvement, Mitie’s social housing team provides digital tuition to older residents in some of the Lambeth sheltered housing schemes to tackle isolation issues. More particularly over the Christmas period, the team organised parties to get all the residents together at a time when they might feel extremely isolated. “Residents had a wonderful time and enjoyed all the old songs and carols along with the wonderful piano playing. Very much appreciated.” Mary Killoughery, Sheltered Scheme Manager For more information visit mitie.com/the-mitie-foundation to download the Mitie Foundation’s annual reportannual report 2016 +7.5% community investment from £917,481 to £986,466 1,309 volunteering days associated with improving employability and raising aspirations 0.9% community investment represents 0.9% of our pre-tax profit 27,000 students have engaged with Mitie volunteers at over 163 education establishments 42 Mitie Group plc | Sustainability Report 2016
Putting sustainability at the heart of procurement Suppliers 43www.mitie.com We want all our suppliers to share our own high sustainability standards, and we’re doing everything we can to help them improve their performance.
Our approach Suppliers Mitie is a large and diverse business. Our requirements for supply chain partners are as diverse as the services we offer our clients – and with 10,000+ partners we need a robust framework to make sure we’re working with the right people. Our approach to procurement is based on four principles: We uphold ethical business practices and comply with legislation; We understand the risks and complexities of the products and services we procure, and are able to respond to performance issues appropriately; We influence the priorities of our key suppliers so that they align with ours and those of our clients to ensure a sustainable service provision; and We ensure diversity is embedded throughout our supply chain. At the time of on-boarding new or prospective suppliers, or when an existing supplier updates their accreditation, we review their sustainability credentials and approach to managing their own policies in relation to sustainability, environment, health and safety. We also require suppliers to confirm acceptance of our code of conduct – One Code –, terms and conditions, and all other policies and procedures with which they are required to comply. All of these documents are available on our external website which makes our expectations clear, and improves the accessibility and transparency of our processes for suppliers. We remain mindful that not all suppliers have established structures and people in place to manage an equivalent corporate approach; so we tailor our needs accordingly and, where appropriate, support those suppliers in developing their own policies, procedures and good practices. Mitie works with all types of businesses, from sole traders and SMEs through to large blue chip organisations. We procure a broad and diverse range of goods and services and through our policies and procedure are able to offer clients value for money solutions without creating unnecessary risk to their business and operations. We encourage each business to achieve awards and accreditations specific and appropriate to their environment and industry, forgoing Mitie- wide accreditations. Human rights We endorse the tenets of the Global Compact Principals, International Labour Organization Declaration on Fundamental Principals and Rights at Work and the Ethical Trading Initiative ‘Base Code’, and will ensure that: employment is freely chosen; freedom of association is respected; working conditions are safe and hygienic; child labour shall not be used; wages are not lower than minimum wage; working hours are not excessive; no discrimination is practised; regular employment is provided; and no harsh or inhumane treatment is allowed. Compliance with these rules is a prerequisite for any business engagement. Modern Slavery Act We are undertaking a mapping exercise of our supply chain on risk-based criteria for modern slavery, such as the use of contractors and temporary labour, and overseas manufacturing. This will enable the focused approach to audits and due diligence work. Our existing sustainable supply chain audit form and procedure is being amended to include reference to modern slavery. 44 Mitie Group plc | Sustainability Report 2016
WildHearts Thanks to our work with WildHearts, 1,471 people’s lives have been transformed globally and 735 young people in the UK have taken part in WildHeart’s entrepreneurial training programme. We have joined Social Enterprise UK to clearly demonstrate we are big supporters of social enterprise. What we achieved Suppliers | what we achieved Following an extensive review of our processes and targets, we re-launched our procurement strategy, focusing on delivering value both for the group and for individual businesses, whilst keeping sustainability and diversity at its core. As part of the launch, we introduced a company-wide communications campaign to raise awareness of sustainable procurement and introduced a central purchasing help desk in our FM division. New on-boarding system Last year we introduced a centralised on-boarding system that has enabled us to capture more information on suppliers in a consistent way, whilst still remaining accessible to SMEs and suppliers from diverse backgrounds. The system replaces the desktop sustainability audits we carried out previously as, following a review, we felt the desktop audits were not thorough enough and we found it difficult to report on the results. The new system facilitates controls within our supply chain, makes it easier for existing and potential suppliers to do business with us, improves information management and reporting, and has given us transparency in our assessment process and risk management. Given our large and diverse supply chain, the complete migration and roll-out of the system across our historic supply base will take several months. To date, 30% of our suppliers have completed their profile on the system and we expect to have all our suppliers on the portal by April 2017. Based on those that have registered through the new portal so far, we are able to confidently provide an indicative picture of the makeup of our supply chain: 98% of suppliers are SMEs 21% of suppliers are registered as being under diverse ownership (ie. LGBT, BAME, women, disabled, social enterprise and charities) 91% have signed up to our code of conduct 19% operate an Environmental Management Scheme 34% operate a Quality Management System 17% have an established Sustainability Policy 45www.mitie.com

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