Corporate Responsibility Report 2011/2012 - umbraco.phs.co.uk › media › 2069 › phs-group-cr-report-2011-… · About PHS Our Priorities 5 KPIs 6 Q&A 9 Environment Carbon 12

It takes a big step......to leave a small footprint

Corporate Responsibility Report

2011/2012

Intro from CEO

About PHS Our Priorities 5KPIs 6Q&A 9

EnvironmentCarbon 12Energy 14Fuel 16Water 18Waste 20

Health, Safety & WellbeingHealth & Safety 24Wellbeing 26

PeopleWorking with us 30Recognition 32Training & Development 34

CommunityCustomers 38Suppliers 40Community Engagement 42

Contents3

4

10

22

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36

3Corporate Responsibility Report 2011/2012

During my time with the organisation, Ihave already seen evidence of the commitmentof our people to improve our environmentalperformance and a wide recognitionamongst employees at all levels that ourimpact on society is about more than ourfinancial performance. Naturally, whilst ourability to continue to be a profitable andstable economic business is essential, I canconfidently say that here at the PHS Groupwe also strive to have a broader role.

In this report you will find an update on theprogress we’ve made against the challengingtargets we set ourselves last year. I ampleased to say that in most cases we haveachieved, or are on-track to achieve, theseobjectives. However, I genuinely believe thatas a business which holds honesty as one ofits core values, it’s also important to recognisethose where we need to do more. Thisincludes areas such as health and wellbeing,where we recognise that our responsibilitiesextend beyond simple protection to playinga more active role in promoting the benefitsof a healthy and active lifestyle.

This report also represents an opportunityfor us, as an organisation which for 50 yearshas had environmental protection at theheart of its business proposition, to providean update on the latest developments inthis arena. PHS is proud to be working withsuppliers and partners to develop innovativeand sustainable solutions to challenges suchas the need to divert waste from landfill. Inaddition, successes such as the Carbon TrustCertification of a number of our services areleading the marketplace in providingdemonstrable evidence of our environmentalperformance. By focusing on identifyingbetter solutions and providing our customerswith the verified information they need tomake better choices, we aim to become areal example of how a growing business canalso be a sustainable one.

Gareth Rhys Williams, CEO

Intro from CEOHaving recently joined the PHS Group, I am delighted to be introducingthis report which provides a brief update on our aim of becoming amore sustainable business.

The PHS Group is the UK’s leading workplaceservice provider and now takes care of over250,000 customers at over 300,000 locationsthroughout the UK. The PHS Group consists of 10operating companies, offering a diverse portfolioof services aimed at improving people’s work andleisure environments, while making life easier forfacilities, building and people managers. Theseservices include everything from washroom andfloor care to landscaping, drinking water provisionand recycling services (and much more).

The PHS Group has grown rapidly since its foundation in 1963and its annual turnover for last financial year reached £419.1million with an operating profit before central costs of £102million. PHS is also a significant employer with over 5,000personnel operating from a network of over 100 regional servicebranches.

About PHS

4 PHS Group plc


This changed in 2010 when our 3 Year SustainabilityStrategy was launched and our ‘Footsteps’ targetswere given board approval. This strategy laid outour aim of becoming a more sustainable businessand set challenging targets in key sectors. Thesepriorities can be defined according to 3 simpleareas:

Corporate Responsibility• Recognising our responsibilities in the ‘4 pillars’

of Environment, Health & Safety, People andCommunity

Financial Profitability• Managing our resources effectively to ensure that

we remain a profitable, long-term businessproposition

Market Innovation• Driving innovation and leading the market by

offering a broad range of services that help andencourage our customers to better manage theirown environmental impacts

It goes without saying that as the UK’s leadingworkplace services provider and a trusted supplier tosome of Europe’s largest companies we arecommitted to acting responsibly. Not only do westrive to operate our own business in a moresustainable manner, we also recognise our role inhelping customers do the same.

Many of the services that PHS provide are essentialto the operation of a facility or subject to strict legalrequirements. However we strive to encouragecustomers to go beyond legal compliance and seethe many and varied benefits that a greater focus onenvironmental effectiveness can bring; services suchas our Flow-saver® Water Management System cansave up to 96% of urinal water use and our electricaland power-quality services can help customers toboth improve safety and cut their energy bills.

In a marketplace that can often appear to besaturated with environmental claims, we believein providing customers with the most robust andreliable information available to help them makebetter choices. In a world first for the industry, bothour sanitary disposal and drinking water dispenserrange now hold the Carbon Trust’s CarbonReduction Label.

Not only does this highlight our efforts to beginmeasuring and reducing the carbon impact of ourservices, it also demonstrates our commitment toproviding accurate and externally verifiedinformation that customers can trust.

Our PrioritiesHere at PHS we have always tried to minimise our impact on the environment. From the very beginning this approach hasbeen inherent in the way we manage our licensed sites and control our use of natural resources. However, like manyorganisations, this was accepted as ‘just something we do’ and not necessarily defined as a robust and considered strategy.

CORPORATE RESPONSIBILITY

HEAL

TH &

SAFE

TY

PEO

PLE

ENVI

RON

MEN

T

COM

MUN

ITY

PROFESSIONALISM TEAMWORK TRUST HONESTY

PHS VISION

PHS Group GHG Emissions by Source (2011-2012)

78%

11%<1%

Fuel

Gas

10%Electricity

Air Travel

KPIs

14.86

Scope tCO2e %Scope 1 39,155 89%Scope 2 4,609 10%Scope 3* 162 <1%

Total 43,926 100%

PHS Group GHG Emissionsby Scope (2011-2012)

Financial

6 PHS Group plc

Carbon

Last year we set ourselveschallenging targets in eachof the areas of CorporateResponsibility.

The following charts detail ourperformance in each of these keyindicators. Further detail on ourachievements last year and ourongoing plans can be found ineach of the relevant sections.

*currently air travel only

PHS increased turnover by 6.2% to £419.1m(2011: £394.6m) but saw a small reduction inoperating profit before central costs by 0.4%to £129.0m (2011: £129.6m).

Central costs increased by 8.8% to £26.7m(2011: £24.8m), leading to a decrease of2.6% in operating profit before exceptionalcosts and impairment loss to £102.0m (2011:£104.8m).

115.12001/02

139.92002/03

Turnover £m

165.32003/04

188.22004/05

305.42007/08

360.42009/10

355.12008/09

2232005/06

394.62010/11

2722006/07

419.12011/12

IOSH Managing SafelyTraining Target 2011-12

Outstanding 6%

Complete 94%

14.86Accident Rate

2007/08 151.42008/09 142.62009/10 144.92010/11 133.72011/12 121.2

Training


Health &Safety

Group Training Performance

0

100

200

300

400

500

600

700

800

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13

Training Events

Trainer Days

Attendees

Training Days

14.86Volunteering Total Hours

2010/11 201 hours2011/12 564 hours

4% 15% 24% 33% 24%

Length of Service Profile

20+years

10-20years

5-10years

2-5years

0-2years

8 PHS Group plc

Length of Service

Community

2010/11PHS Donation£67,900

2010/11Staff Supported

Donation£10,638


Donation£11,779

2011/12PHS Donation

£79,078

Community Engagement

What are your three CorporateResponsibility highlights from lastyear?There are quite a few I could mention but if I hadto pick three I would say:

• Being well on track to achieving our 10%carbon reduction target (6.7%) in only our2nd year of a 3 year target

• Achieving 2 world firsts by gaining the CarbonTrust’s Carbon Reduction Label for our PHSWashrooms sanitary disposal service and PHSWaterlogic water dispensers range

• Successfully diverting nearly a quarter of oursanitary waste from landfill to a facility thatrecycles 95% of the component materials ofthis difficult waste stream

• And I know it’s one more than you asked forbut I must also mention the amazing increasein our employee volunteering levels from 201hrs to over 564 hrs, or the equivalent of over70 working days!

What is your most important taskfor next year?From an internal perspective it’s definitely toimprove our carbon management, particularlyfuel. Fuel accounts for 78% of our carbonfootprint and is currently fundamental to all the

services we offer so any ‘to-do list’ that doesn’tinclude this is missing the biggest opportunity ofall. However, more broadly it’s definitely to graspthe opportunities that this area presents and‘nudge’ our customers to understand the benefitsthat our better products and services can bring.

What would you say is the Group’sbiggest challenge in thesustainability arena?In all honesty, I would say that we have onlyscratched the surface in recognising the criticalrole that the supply chain plays in sustainabledevelopment. I think our biggest challenge is tofind a practical way in which we can understandour supply chains and how we can work with oursuppliers and customers to address some of thebigger issues.

Finally, what’s your generalimpression of the Group’sperformance?I think we’re probably our own worst critic and asan organisation we need to recognise andpromote the great work that we have always donein this area. Clearly, there’s lots more we can do toimprove but we should also be very proud of ourachievements to date.

Q&AEmma Wood, Group Sustainability Manager, answers a few questions aboutthe PHS Group’s performance over the last 12 months and how the businessviews its broader responsibilities.


Environment

CarbonEnergyFuelWaterWaste

Growth with a positive

outcome

Corporate Responsibility Report 2011/2012

12 PHS Group plc

Carbon

Although our target reduction period does not enduntil 2013, we are pleased to report that our focuson energy and fuel management already looks to bepaying dividends. When compared against our baseline year of 2009 – 2010, the quantity of carbongenerated per £ of turnover has reduced by 6.7%.

The PHS Group has been measuring its carbonfootprint for many years and during that time ourreporting processes have undergone considerableimprovement and development in line with theGreenhouse Gas (GHG) Protocol. We are confidentthat our Scope 1 and 2 emissions now represent arobust measure of our carbon impact and followingthe publication of standardised guidelines, we arehoping to expand this next year to includesignificant Scope 3 emissions.

Our Objective

How we’re doing

In 2010 we set ourselves the target of reducing ourorganisational carbon intensity by 10% in the next3 years. Reporting year 2011-2012 was our secondyear of working towards this target.

Carbon Trust Wales have been

working closely with the PHS Group

since 2010 and have been impressed

with their comprehensive approach to

carbon management. Our newly

commissioned project at PHS Group

Head Office looks set to be an

innovative and exciting proposal that

could deliver significant carbon savings.

“

”Lee Evans,Account Manager, Carbon Trust Wales

14.86

Scope tCO2e %Scope 1 39,155 89%Scope 2 4,609 10%Scope 3* 162 <1%

Total 43,926 100%

PHS Group GHG Emissionsby Scope (2011-2012)

*currently air travel only

In a marketplace saturated with claims, ourapproach is always to provide our customerswith the latest and most robust data available.For this reason, both the PHS Washroomsanitary disposal service and the PHS Waterlogicdrinking water dispenser range now hold theCarbon Trust’s Carbon Reduction Label.

In a world first for their respective industries,The Carbon Reduction Label identifies thatthese services have had their carbonfootprints calculated and then independentlycertified by the Carbon Trust against aninternationally recognised standard. Acarbon footprint is the total amount of

carbon dioxide (CO2) and other greenhousegases emitted by a product or service duringits entire life-cycle, including production,transportation, use and disposal.

However, measurement is just oneimportant area and action to supportgenuine improvement is equally important.By displaying the Carbon Trust’s CarbonReduction Label, PHS is also making acommitment to measure and reduce thecarbon footprint of these services over thenext two years.

The PHS Group recognises that accurate and verifiable informationregarding the carbon impact of our services is critical to our customers.


Case Study

We continue to work hard towards our 3year factored Scope 1 + 2 target and areconfident that this will be achieved. Inaddition, the Sustainability Team has beentasked with examining the quality of ourOrganisational Footprint, with particular

reference to our Scope 3 emissions. Whilstthe PHS Group is a complex business madeup of a large number of supply chains, thisyear we will begin the difficult task ofidentifying, highlighting and managing ourmost significant Scope 3 impacts.

Our aims for next year…

14 PHS Group plc

Energy

Our carbon reduction target underpins our approach to energymanagement and our encouraging reduction of 6.7% whenfactored against revenue has been driven primarily by our effortsto reduce gas and electricity at our operational sites. Whilst werecognise that a relatively mild winter has contributed to a slightreduction in energy related emissions, we believe that theimproved visibility provided by our smart metering project hasachieved genuine savings.

Our ongoing programme to install smart meters, which began in2011, has led to the provision of half-hourly data at over 60 of ourlargest sites. Having access to detailed half-hourly usage profileshas already helped identify issues with an estimated annualisedcost of over £20,000.

Our Objective

How we’re doing

In 2010 we set ourselves the targetof reducing our organisationalcarbon intensity by 10% in the next3 years. Reporting year 2011-2012was our second year of workingtowards this target.

The PHS Group faces a number of significant

challenges when it comes to managing their energy but Evolve

Energy have been working hard to provide them with easily

accessible data via the OneView platform. The results speak

for themselves and we’re delighted that we can support their

genuine commitment to improve energy effectiveness

“”Bob Millar,

Head of Energy Information Services, Evolve Energy Limited


Our Head Office in Caerphilly is one of ourlargest premises and with over 350 people onsite is a significant electricity consumer. Unlikemost of our locations, where operationalprocesses account for the majority of utilitycosts, this site poses energy awareness andbuilding management challenges which arecommon to many organisations.

Case Study

We are currently working on 2 complementary programmesto help tackle energy use at this site. The first is a projectwith Carbon Trust Wales to examine the complete buildingenvelope and identify the most appropriate solutions forlighting, heating and ventilation on site. The second is anenergy awareness programme in conjunction with Businessin the Community that will encourage employees to focus onenergy costs, both at work and at home. It is hoped thatthese co-ordinated efforts will enable PHS to better manageenergy costs at this location and demonstrate what can beachieved.

Our 3 year carbon intensity target continuesto drive our approach to energy management.

However, we also recognise the need tomake absolute reductions in our establishedbusinesses. For this reason, every existingsite within the business will this year betasked with making a 5% absolute reductionin their electricity and gas consumption.


Specialist

Car

Van

HGV

91

868

1596

290

16 PHS Group plc

Fuel

Fuel emissions contributed 78% of our totalorganisational carbon footprint this year and fuel isalso one of our largest external costs. As such, fuelmanagement is critical to PHS, both from anenvironmental and financial perspective.

In 2011 the PHS Group commissioned the EnergySaving Trust to undertake a comprehensive ‘GreenFleet Review’ (GFR). This detailed audit looked atthe entire PHS fleet from company cars and the so-called ‘grey fleet’ through to all vans under 7.5tonnes. The audit highlighted a number of keyareas for improvement; such as data availability,route optimisation and vehicle specification and hasproven to be invaluable in helping us to develop amore strategic and co-ordinated approach to fleetand fuel management across all Divisions.

Our Objective

How we’re doing

In 2010 we set ourselves the targetof reducing our organisationalcarbon intensity by 10% in the next3 years. Reporting year 2011-2012was our second year of workingtowards this target.

With over 2,800 vehicles, the PHS Group is exactly

the kind of company that we hope could make significant

savings following a comprehensive Green Fleet Review. We

look forward to seeing the impact of our recommendations

and are confident that PHS will benefit greatly from their

commitment to fuel management

“”Chris Endacott,

Director, Gfleet Services Ltd

PHS Group Fleet Profile 2011 – 2012


In Divisions that operate a specialised fleet, fuelmanagement has always been a business priority.PHS Datashred is one such example and their effortsto reduce their fuel consumption were recentlyrecognised by the National Recycling Awards.

Case Study

The judges in the Fleet Initiative of the Year category were highlyimpressed with PHS Datashred’s fuel management project whichresulted in annual savings of nearly 350,000 litres. However, it wastheir ability to gain buy-in from all levels of the business that reallydifferentiated PHS Datashred and has been fundamental in theachievement of such ambitious fleet management targets.

Fuel represents the single most significantpart of our carbon footprint and as such our3 year carbon intensity target continues tobe our primary focus. However, as withenergy consumption, we also recognise theneed to make absolute reductions in ourwell established businesses. For this reason,each Division will this year be tasked withmaking a 5% absolute reduction in their fuelconsumption.


18 PHS Group plc

Water

The PHS Group is acutely aware of the need toconserve water, with many of our Divisions usinghigh volumes of water as a result of their serviceoperation. However, finding a cost effective meansof monitoring real-time water usage has proven tobe a difficult task.

Our efforts this year have therefore focused onidentifying leaks and ensuring that our baselinewater consumption figures are accurate andappropriate. In order to achieve this, we have beenworking with Cadantis Associates Ltd, waterauditing and analysis experts, who are undertakinga detailed investigation at our largest Divisionalsites. Rather than this being a simple billingverification exercise, on-site water audits will becompleted to ensure that we have a robust andreliable measurement on which to build our futureautomated metering solution.

Our Objective

How we’re doing

To create improved visibility of water usageto enable accurate reporting and monitoringat both site and Group level.

Cadantis is pleased to have

been selected to work with PHS

Treadsmart to investigate opportunities

for more sustainable water use. Water

is often the forgotten utility but for a

business like PHS, the cost of ignoring

problems, such as leaks and mis-billing,

can be significant

“”Glen Collins,

Director, Cadantis Associates

Divisionalhigh waterusers 80,000m3

Treadsmart

24,000m3

Besafe

10,000m3

Teacrate5,000m3

Greenleaf

21,000m3

Washrooms


Poole Stadium, owned by Stadia UK, is just oneexample of how the PHS Group is helping customersto reduce their water usage.

Case Study

The stadium, which on race nights can accommodate up to 4,000speedway fans, estimates that they have saved the equivalent of nearly£15,000 per annum by replacing their old urinal water control unitswith PHS Flow-saver® intelligent water management systems.

The PHS Flow-saver®, which can save up to 96% of water comparedto an uncontrolled urinal cistern, also outperforms traditional controlsby utilising an infra-red sensor to detect movement and flush onlyaccording to use. This ensures that maximum water savings aremade without ever compromising hygiene.

We have challenged each of our sites toreduce their water usage by 5%. To helpsupport them in these efforts, we will berolling out a programme of site water auditsto those Divisions that represent our Top 5largest water consumers.


20 PHS Group plc

Waste

PHS Washrooms is the UK’s largest commercialcollector of sanitary waste and is therefore acutelyaware of the need to find an environmental andcost effective alternative. Whilst sanitary and nappywaste accounts for only 2% of the UK’s total landfillwaste, it is clear that this disposal route is not anenvironmentally sustainable option.

During 2011, PHS has been working closely withKnowaste, the UK’s only sanitary and nappy wasterecycling facility. This plant in the Midlands iscapable of processing 36,000 tonnes of absorbenthygiene products into consistently high-qualityreclaimed plastics and fibres for re-use in newproducts. 23% of our total washrooms offensivewaste from 4 locations has been sent to Knowaste,which equates to nearly 1.6 million kg of wastethat would otherwise have been sent to landfill.

Our Objective

How we’re doing

Recognising the need to develop an environmentallyeffective alternative to landfilling offensive waste,last year the PHS Group committed to identifying anew disposal route for sanitary waste.

We are delighted to be

working with PHS to develop an

absorbent hygiene product (AHP)

recycling scheme that offers a genuine,

environmentally friendly alternative to

landfill. With the support of waste

companies such as PHS, we look

forward to expanding our operations

to service the entire UK

“”Roy Brown,

CEO of Knowaste


PHS has been offering customersassured and reliable wastemanagement services for nearly50 years.

Case Study

Yet we recognise the need to practice whatwe preach, and as such have a stronghistory of ensuring that the products weoffer our customers are dealt with effectivelyat the end of their serviceable life. A fewhighlights of our enviable record in this areaare shown opposite.

PHS remains committed to finding a costand environmentally effective alternative tolandfill for all our sanitary and nappy waste.Whilst we must remain conscious of thewider environmental impact of transportingwaste, it is hoped that the opening of

additional processing facilities throughoutthe UK will allow us to successfully re-directfurther volumes in the near future.


30,500 components re-used

56tonnes of batteries

70tonnes of packaging

161tonnes of aerosols

125tonnes of metal

49 tonnes of sanitary

bin plastic

In-house product recycling 2011-2012

Health, Safety & Wellbeing

Health & SafetyWellbeing

Minding your step


24 PHS Group plc

Health & Safety

We believe that a safe environment is not merelyone in which there is an absence or low number ofserious injury incidents, but is the result of activeparticipation by management and employees inidentifying hazards and taking positive action toeliminate or control them. Recognising the criticalrole that managers play in fostering this culture, wehave focused our efforts on ensuring that ourmanagers are equipped with the knowledge andskills they need to ensure the safety of their teams.

At the beginning of 2011, 267 managers wereidentified as priorities for our IOSH accreditedManaging Safely course. By the end of thisfinancial year, only 16 managers have yet tosuccessfully complete the course All of these 16remaining managers will however complete theirtraining by the end of August 2012.

Our Objective

How we’re doing

Last year we committed to ensuring that every newmanager received their required, IOSH accreditedtraining within 3 months.

The Health and Safety of

employees, contractors and customers

is a critical concern for every company

but none more so than PHS. As a

company that operates in highly

regulated and often high-risk industries,

the commitment of PHS to this area is

evident at all levels of the business

“”Dr Nick Williams,

Safety, Health & Environment Manager,PHS Group

IOSH Managing SafelyTarget 2011-12

Outstanding 6%

Complete 94%


The effective management of Health and Safety is fundamental and anintegral part of the PHS Group. The Group launched its current Healthand Safety Initiative in May 2008 which set out to focus on ten key areas:

Case Study

In order to improve overall levels of Health& Safety at each of our locations, the Grouphas this year committed to increasing theminimum site audit KPI performance by10%, from 60% to 70%. These KPIs monitorDivisional compliance in a range of areasincluding the assessment of risk andimplementation of measures to combatthese risks, accurate completion of accidentrecords and investigations, H&S training andthe use of appropriately qualified contractors.


2007/08 151.42008/09 142.62009/10 144.92010/11 133.72011/12 121.2

Accident Rate

• Management commitment• H&S training• Risk assessments• Fire / site transport risk assessments• Slips, trips & falls• Accident reporting/investigation• Control of contractors• Permits to work• Work at height • Manual handling

Each of these areas is closely monitored andthe relevant Divisional Health & Safety

Champions are tasked with drivingperformance improvement within their ownbusiness.

The effectiveness of this focused approachcan be seen in the significant reduction ofour accident rate since the Initiative waslaunched. Whilst the accident rate(calculated per 1000 employees) hasremained relatively stable in the last 2 yearsit has decreased by nearly 20% whencompared against our baseline year of2007/08.

26 PHS Group plc

Wellbeing

Whilst our overall sickness rate of 3.1% iscomparable with other equivalent industries,absence represents a major cost and disruption forthe business. More importantly, as a serviceorganisation we recognise that our ongoingsuccess is reliant upon having reliable, well-trainedand engaged employees.

In 2011, the PHS Group undertook a review of ourcurrent wellbeing practices with the support ofBusiness in the Community. This reviewhighlighted the predominantly reactive nature ofour sickness policy and highlighted the potentialbenefits of a more pro-active strategy to promoteemployee wellness. In 2012 we hope to developthis approach further and ensure that the BestPractice evident in many of our Divisions is sharedacross the Group to create a consistent andcomprehensive approach to health promotion.

Our Objective

How we’re doing

As a new area to the Corporate Responsibility Report,no target was set last year.

It’s encouraging to see an

organisation like PHS recognise the

value of workplace wellness. This is a

new approach for many organisations

and we’re delighted to be supporting

PHS to identify practical and productive

ways of achieving genuine business benefits

“”Simon Harris,

Wales Director for Business in the Community

3.1% sickness rate, average workforce of 5043


One example of our efforts to encourage a healthierlifestyle amongst our people was the recent HealthyTravel Fair held at our Caerphilly Head Office.

Case Study

This event was designed to encourage employees to utilise moresustainable and active travel on their daily commute. A number oflocal organisations attended including ‘Dr Bike’ who offered free bikeservicing, the County Council who provided information on walkingtrails throughout the area and a smoothie bike supplying healthydrinks for those willing to undertake a stint on the exercise bike.

The event followed on from the launch of the Head Office TravelPlan, which was recognised this year with a Bronze Award throughthe Welsh Travel Plan Award scheme and built upon a number ofexisting discount schemes with local organisations such as gymsand chiropractic services. Co-ordinated programmes that addressboth the health and environmental impacts of employee commutingare also in development at other sites throughout the Group.

At PHS we recognise the need to formaliseand improve our approach to wellbeing atwork. This year we will be undertaking astrategic review of this area to identify thebest ways in which to structure, support andcommunicate our commitments toemployees.


People

Working with usRecognitionTraining & Development

We’re a happybunch of soles...


30 PHS Group plc

Working with us

At PHS, we genuinely believe that ourpeople are at the heart of our continuedsuccess and their commitment and loyaltyhas helped make us the organisation we aretoday. We think it speaks volumes that,even though we have grown dramaticallyin recent years, more than 20% of ourworkforce have worked with us for tenyears or more. Here are just two examplesof what our people think of the PHS Group.

What do you enjoy about yourcurrent role?No two days are ever the same... I may bewith a customer reviewing a contract oneday, assisting the sales force pricing jobsanother day or sourcing new disposalroutes for our waste streams.

How has your careerprogressed? I joined PHS Washrooms as a Depot Manager15 years ago, then became General Managerand eventually Regional Manager. Then justover 4 years ago, I had the opportunity toapply for my current position.

In each of my roles PHS has supported meto improve my skills and gain professionallyrecognised qualifications. I was also luckyenough to take part in the Group’s seniormanagement development programme‘Aspire’.

What is the best thing aboutworking for PHS? The best thing about PHS is undoubtedlythe people. PHS people go out of their wayto be helpful and friendly and it’s amazingwhat you can achieve by simply asking forhelp. I’m very lucky because I work with a

great team of people that I have known formany years and who all genuinely careabout what they do and the service weoffer our customers.

What are your career hopes forthe future?Since I joined the Group over 15 years agoI’ve never been short of work oropportunity... I hope I’ll continue to keepbusy and see what the future holds!

Tony FilsonHead of Operations, PHS Wastemanagement (Healthcare)

Our Objective

How we’re doing

Our ultimate aim as a business, as outlined in our Vision Statement, has alwaysbeen to offer “a challenging, rewarding career for everyone in the Company.”


When I joined PHS almost 37 years ago, it was a

small family owned business with around 200 employees,

supplying and servicing one product. I firmly believe that

our growth from that small company to the business we are

today lies with its dedicated workforce and our commitment

to supply customers with the best service we can. I am

proud to be playing a small part in its continuing success

“”Diane Stagg

(one of our longest serving employees) FinanceDepartment, PHS Head Office

As an organisation, we recognise the needto better engage with our employees. Tofacilitate this we will therefore be developingan employee engagement framework tobetter monitor the satisfaction of our peopleand capture the enthusiasm andcommitment that exists within our teams.


32 PHS Group plc

Recognition

The quarterly ‘PHS Stars’ scheme was set up torecognise the outstanding contribution of ourpeople in support of our four core values –Professionalism, Teamwork, Trust and Honesty. In2011, there were over 100 nominations that weremade by grateful customers and appreciativecolleagues, from which the 16 “Stars” werechosen.

Last year, for the first time, this included winnersfrom PHS Direct, Fazeley and PHS Compliance. Ourwinners encompass roles as diverse as SalesSupport, Service Driver, Telesales, IT, MajorAccounts, Stock Control, Service Administrationand Marketing. Whatever the role, PHS Starsremains a vital element of our aim to reward andrecognise the outstanding contribution that manyof our people make to our business.

Our Objective

How we’re doing

Our ‘PHS Stars’ scheme was launched in 2010 andlast year, our aim was to encourage nominationsfrom more areas of the business, from across a widervariety of roles and also from colleagues as well ascustomers.

In a service business like ours,

it is our people who are the face of

the company. By demonstrating

outstanding commitment to our values,

our ‘PHS Stars’ have shown that they

are not only committed to our customers

but to supporting each other

“”Gareth Rhys Williams,

CEO, PHS Group


Many of our ‘Stars’ are worthy winners who have been nominated bycustomers because they exceed expectations.

Case Study

Such winners include Anthony Hamiltonfrom AWS, our Waterlogic business inDublin, who gave up his free time to takeownership of a weekend installation for acustomer. Stars who make an impact on thewider community are also recognised, suchas Stuart Bates, who raised over £1253 forChildren in Need by singing for Head Officestaff during lunchtime.

Other Stars are commended for theircommitment to the environment and theirdrive to make positive changes. Examplesinclude Jo Thomas from Head Office, whosuggested a change to our IT system thatreduced our paper usage by an estimated130,000 pieces of paper a year or RobGordon from PHS Compliance whointroduced a save water scheme that will cut39,000 litres of water a year at just one site.

To ensure that we are recognisingcontributions from across our Group, ouraim in 2012 is to increase our ‘Stars’nominations by 10% and to receivenominations from every division of ourbusiness.


34 PHS Group plc

Training &Development

In July 2011, a comprehensive external review comprising133 interviews at 17 sites and involving all of our divisionsresulted in us maintaining this valuable recognition. Thisexternal review complements the ongoing benchmarkingundertaken by Internal Reviewers as part of the IIP ‘healthchecks’. This ongoing focus on communication with ourpeople is fundamental to our approach to businessimprovement, providing senior managers with detailedinformation on areas for improvement.

During our external review, we were particularly pleased tohear of the positive feedback about the brand that wasreceived throughout the Group, in all of our operatingDivisions. It was also significant to note that many of ouremployees commented on the potential for PHS to grow.Despite the difficult economic conditions facing all businesses,it was positive to hear that our people are confident aboutthe future and believe that PHS is a secure, rewarding andsuccessful employer is these uncertain times.

Our Objective

How we’re doing

Last year, our objective was to continue to berecognised as an Investor in People, which we havebeen since 2000.

Once again, PHS Group plc has

demonstrated its genuine commitment

to realising the potential of its

workforce to achieve the business’s

ambitious objectives, by building

strategies, policies and procedures

based upon the best practice

standards contained within Investors

in People

“”Jenny Trickett,

IIP External Reviewer


As part of our continued investment in the development of our people,we have recently opened our state of the art Academy in Gloucester.

Case Study

The Academy is however more than atraining facility and is designed to play acentral role in defining and differentiatingPHS, supporting individuals and businesseswithin the Group and ensuring futuresustainable growth.

The Academy is a flagship site which willbecome the focal point for training,meetings, manager’s events, customer

presentations, national meetings and otherstakeholder events. We believe that thissignificant investment also demonstratesPHS’s commitment to service excellence andto the development of valuable skills andexpertise amongst our people.

At PHS we are committed to delivering anintegrated approach to developingexcellence. Our objective next year is toincrease our overall training activity by 10%.


Community

CustomersSuppliersCommunity Engagement

We walkthe walk


38 PHS Group plc

At PHS we have always believed that an open, ongoingrelationship with our customers is essential to anybusiness. For this reason, we are committed to creatingconsistent and uniform standards of customer servicethroughout the Group to ensure that our customers canexpect the same high level of customer service from eachof our operating Divisions. This approach was reinforcedthis year through implementing the ICS (Institute ofCustomer Service) ServiceMark™ process and audit withina number of our business areas.

The ICS project has been trialed at both Divisional andGroup sites including our largest customer service centreat Caerphilly Head Office. Having completed a recentreview and training programme, our first service centrehas already achieved the prestigious ICS ServiceMark™

accreditation and others are actively in progress. Thisprofessional accreditation, which enables companies toindependently assess their service levels and bebenchmarked against other organisations, is an importantstep in helping PHS to ensure a consistent and highquality approach to customer service.

Our Objective

How we’re doing

Given the diverse nature of the services offered bythe PHS Group, the business has previously workedtowards Divisional specific rather than headlineGroup targets in this area.

In 2011, the PHS Group was

named one of the nations top 500

‘Business Superbrands’. Compiled

following independent research by The

Centre for Brand Analysis, it was

judged that PHS possessed all the key

markers of a Business Superbrand

such as quality products, reliable

services and trust to consistently

deliver against its promises

“

”Andrew Johnston,Group Head of Marketing

Customers

ServiceMark™ accredited


In 2011, PHS Washrooms was awarded the hotly contested ‘Supplierof the Year Award’ at Interserve’s ‘Best of the Best’ Awards. The annualawards recognise Interserve’s suppliers for their ongoing support ofthe business’s operations.

Case Study

Interserve is one of the world’s foremostsupport services and constructioncompanies and PHS has been Interserve’spreferred supplier of washroom servicessince 2003. Throughout their longstandingrelationship PHS and Interserve have workedclosely together to maintain the higheststandards of service to all their customers.This strong partnership is just one exampleof how our ongoing approach to

outstanding customer care has helped towin business and maintain longstandingcustomer relationships.

At PHS, we know that our customers deserveexcellent service from every part of ourcompany. We have therefore committed toestablishing a Group-wide Customer Charterwhich will outline what our customers canexpect from us at each step of the customerexperience.


40 PHS Group plc

Whilst many of our purchasing teams alreadyconsider sustainability as a key part of theprocurement process, the challenge of integratinga co-ordinated and cohesive approach toprocurement across our diverse businesses remainsa significant task. The sheer range of suppliers,products and impacts makes the development of apractical yet relevant framework a complex andtime consuming process.

However, our work on both our organisational andproduct carbon footprints has enabled us toundertake a detailed review of our most importantsupply chains. The process of investigating ourbroader supply chain impacts has allowed us toprovide relevant and targeted information toprocurement teams to aid them in the task ofimproving the environmental impact of ourproducts and services.

Our Objective

How we’re doing

Last year we set ourselves the target of establishinga Group wide ethical procurement policy andensuring that all purchasers understood how theirdecisions could impact upon our aim of being amore sustainable business.

The recent Product Carbon

Footprint project undertaken by our

UK partner PHS Waterlogic has

really demonstrated how businesses

can work together to build environmental

improvements into the value chain. The

process has given us an important

insight into how a co-ordinated approach

can drive innovation to provide customers

with better products and services

“

”Chris Garner, Group Marketing Director,Waterlogic International

Suppliers


The PHS Group firmly believes that community engagementshould be about more that charity donations and we recognisethat our purchasing power can also be a force for good.

Case Study

We value our long-term suppliers,many of whom are local businessesand have recently begun to activelysupport social enterprises.

One such example is Arts FactoryDesign who have produced thisCorporate Responsibility Report. TheArts Factory Design Team is a fullservice creative agency based in theRhondda Valley, Wales that operates as

part of a social enterprise. Theorganisation’s strap line is “No morethrow-away people” and all profitsgenerated by the business are used toprovide opportunities to disadvantagedand marginalised people in localcommunities.

As part of our Scope 3 Organisation CarbonFootprint, we will seek to identify our mostsignificant suppliers and engage them in astructured approach to supply chaincorporate responsibility.


42 PHS Group plc

We’re delighted to say that our performance has farexceeded our targets in terms of both financial donationsand employee volunteering. In fact, we estimate that thetotal financial impact of all community contributions isequivalent to nearly £98,000.

This has been achieved through a mix of corporatedonations, supported employee fundraising andvolunteering. Our own company donations haveincreased by 16% this year, a figure of which we areparticularly proud of given the tough economic climate.

However, we are perhaps most encouraged by how ouremployees have welcomed the new Volunteering Policy.The number of employees regularly volunteering hasgrown significantly and total volunteering hours nowstand at more than double the figure for 2010-11.

Our Objective

How we’re doing

Last year we set ourselves the target of increasingour community engagement in 2 key areas; a 10%increase in our financial donations and a 20%increase in our supported employee volunteering.

I really want to take this

opportunity to say a big thank you to

everyone at PHS who took part in the

Oxfam Collects at Work Scheme. The

PHS collection was the largest scale

campaign we have undertaken so far and

the generosity of supporters, like those

at PHS, is absolutely critical to our work

“”Gary Henry,

Corporate Relationship Manager, Oxfam

CommunityEngagement

2010/11PHS Donation£67,900


Donation£10,638


Donation£11,779

2011/12PHS Donation

£79,078

Community Engagement

Volunteering Total Hours

2010/11 201 hours2011/12 564 hours


As part of our community engagement strategy, PHS has established astrong partnership with UnLtd, a charity foundation dedicated tosupporting and developing social entrepreneurs and helping thembecome a force for positive change in the UK.

Case Study

This partnership has seen a number of PHS’senior managers volunteer their time andexpertise to act as mentors to local charitiesand social entrepreneurs.

One highly successful match, which hasalready had a positive impact for bothparticipants, is between Paul McDonald,commercial manager with PHS Datashred,and BulliesOut founder Linda James.Working closely together, Paul and Lindahave developed a strategic plan to ensurethat this small charity has a secure financial

footing on which to grow and reach out tomore young people impacted by bullying.The benefits of this mentoring partnershiphave been felt as much by PHS as BulliesOut. Not only has Paul enjoyed the opportunityto work with a charity close to his heart, he’salso been exposed to a completely new sectorand faced organisational challenges whichhave stretched his skills and given him a re-newed sense of enthusiasm.

Our new community engagement strategywill be launched shortly, which will includea challenging new 3 year target. Our aimis to better co-ordinate our currentcontributions, engage employees at alllevels of the business and develop anapproach that encompasses skills andenterprise as well as financial donations.


PHS Group plcWestern Industrial Estate, Caerphilly CF83 1XH

02920 809 008

[email protected]

www.phs.co.uk

PH

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plc

Corp

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ort 2011/2012

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