MITIE Group PLC CR Report 2009

MITIE Group PLC

8 Monarch CourtThe BroomsEmersons GreenBristol BS16 7FH

T: 0117 970 8800F: 0117 302 6743E: [email protected]

Corporate Responsibility Report 2009MITIE Group PLC

Visit our website to download a copy of this report and access our expanded BITC CR Index performance statistics and GRI Index.

mitie.co.uk/cr

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We’re the strategic outsourcing and asset management company.What does that mean?Providing everything from strategic consultancy, to facilities and project management, to world-class delivery on the ground.We work with our clients in three ways:– Strategy and consultancy– Facilities and project management– Service deliveryIn other words we:Think:Our Corporate Responsibility (CR) strategy is fully integrated into our long-term mission to responsibly deliverquality services, opportunity for our people and sustainable growth.

Manage:Our CR activities draw on professionalsfrom across the whole MITIE Group with a diverse range of skills, qualifications and experience. Together they bring a wealth of good ideas on how we canact responsibly, and deliver sustainably to our stakeholders.

Deliver: At MITIE it’s everyone’s responsibility to support and contribute to our CRobjectives; working hard to improve their surroundings, and upholding ourreputation as a world-class businessdelivering world-class services.

Group profile

Our success is built on the dedication and passion of our people supported by our sustainableand ethical business model:

Revenue

Number of employees

Profit before tax

Order book

Listed on the London Stock Exchange

MITIE Group PLCCorporate responsibility report 2009

Community

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MITIE Group PLCCorporate Responsibility Report 2009

Overview

01

Contents

OverviewChief Executive’s welcome 02

CR highlights 2008 03

How we set priorities 04

Stakeholders’ engagement strategy 06

PeopleIntroduction 08

Approach and achievement 10

Data, measures and analysis 13

Service deliveryIntroduction 14



EnvironmentIntroduction 18



Health and safetyIntroduction 24



CommunityIntroduction 28




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Chief Executive’s welcome

“Our commitment to CR remainsundiminished and undeterred despite the challenging global economic situation. CR is a key differentiator for us.Our commitment to, and delivery of our CR strategy is not only part of being aresponsible organisation – it makes soundbusiness sense too.

MITIE’s CR initiatives and achievementshave only strengthened our reputation as an attractive, ethical and moral business partner to both the public and private sector. MITIE endorses theBusiness for Social responsibility definition of Corporate Responsibility (CR) as;‘achieving commercial success in waysthat honour ethical values and respectpeople, communities, and the naturalenvironment.’ Adopting this holisticapproach and the consultation we havewith our various stakeholders guides ourstrategy and helps us to establish our short- and long-term priorities and targets.

This year we’ve successfully retained ourSilver status in the Business in the Community(BITC) CR Index model with an overall scoreof 81.5%. The focus on enhancing the skillsof our people and evolving our businessto meet the changing demands of ourstakeholders, continues to open up excitingnew markets and opportunities for MITIE.”

Ruby McGregor-SmithChief Executive

CR is a key differentiator for us andour commitment to, and delivery of our CR strategy is not only partof being a responsible organisation, it makes sound business sense.


03

CR highlights 2008

458 days spent volunteering for local charities and initiatives

390 people trained in a recognised IOSH course for managing health and safety

150 low CO2 emission, fuel efficientvehicles purchased

100% of business operations certifiedto ISO:9001&BS OHSAS 18001

42% of workforce are female

£3,463,297 invested on training courses

66% of our vegetable cooking oil reprocessed into bio-diesel

51% increased volume of Fairtrade sales to our clients


Overview

Big Tick re-accreditation

We achieved two BITC Big Tick Re-accreditation Awards 2009

Financial Times Top 100 Companies that Count 2009 – Silver category

Listed in the FTSE4GoodIndex 2009

BITC Corporate Responsibility Index 2009

343 apprentices employed across our three divisions



How we set priorities

At MITIE, we know that our clientsexpect us to add value to ourservices by implementing initiativesthat complement their own CR agenda.We don’t see these commercialdrivers as an additional burden, but rather as an opportunity for us to demonstrate the added value thatour services bring to our clients.We’re committed to taking astructured approach to managing CR at MITIE. This allows us to focus on the social, ethical and environmental factors, opportunities and risks that affectour business, and to ensure they are efficiently managed. MITIE’s CR strategy is implementedat every level of our organisationusing the five pillars of :PeopleService deliveryEnvironmentHealth and safetyCommunity

Suzanne Baxter

Group Finance Director

Focus: CR sponsor on our Board of Directors

Why is CR important to MITIE? Responsible business practice is core to our strategic aim of delivering sustainableprofitable growth. Acting responsibly and consciously adopting a structuredapproach to CR is the right thing to do forMITIE. Clearly, there are moral and ethicaldrivers that tell us that this approach is right,but critically, we believe this is the rightthing to do for commercial reasons. Further, it also ensures that we have clearly communicated the way in whichwe want to conduct our business to our people internally, as well as to ourextensive external stakeholder group –from our clients and shareholders, to the public and local communities.

A responsible business is a sustainablebusiness and it is no surprise to us that our continued growth and success isaligned with our corporate responsibilityperformance. A sustainable business has to anticipate and address the various challenges and drivers affecting its operations. We have been able tobalance our continued growth andcommercial success by making a positivecontribution to society through ourcommunity investment, and by makingsignificant efforts to mitigate the effect that our business has on the environment.

Will the current global economic downturn affect MITIE’s commitment andinvestment to CR?These certainly are challenging times butour commitment and investment to CRremains focused on commercially relevantactivity that contributes to the Group’sstrategic objectives. In particular, we arefocused on those areas that affect ourpartnerships and relationships with keystakeholders, including our people who will underpin our continued success. Talk to us!

Do you have a question on our CR activities?Email us at: [email protected]



Overview

05

Jane James

Employment Regeneration Director

Focus: Employability and Real Apprentice scheme

What is your role? There isn’t a standard day, but I work intwo core areas; the first is employabilityprogrammes such as the Real Apprenticescheme which mentors and supportsunemployed, disadvantaged people from all backgrounds into permanentsustainable work with MITIE, our clients and supply chain. I also co-ordinate some of MITIE’s ‘World of Work’ events in schools that help students improve their employability skills. The second core area of my role is representing MITIE on employability issues with Central and Local Government, which includesworking with members of the House of Lords and the House of Commons.

Why does MITIE get involved in employment regeneration?MITIE’s ethos is to enable people toachieve their full potential. EmploymentRegeneration is one proven tool where we can support those who need help inthe local communities we work in. There isa very real business case for MITIE to beinvolved in Employment Regeneration.Through the Real Apprentice programmeMITIE has saved in excess of £250,000 inrecruitment costs since the programmebegan in October 2005.

Joanne Bacon

Group Human Resources Director

Focus: Overall responsibility for CR

Who is responsible for CR in MITIE?Although it sounds like a bit of a cliché, I genuinely believe that all our people have an important part to play in runningthe Group in a responsible manner. While we have CR professionals operatingthroughout the business and a clear strategyand policies surrounding our CR aspirations,unless those ideals are reflected in our day-to-day behaviour then they have littlerelevance to our clients, our communitiesand to the organisation we represent.

Ruby McGregor-Smith, our Chief Executive,has ultimate responsibility for our approachto CR and she is supported in this role by our Executive Board, which comprises theGroup’s functional specialists, includingmyself and Suzanne Baxter, as well as theremaining Executive Directors and thesenior directorate from our three divisions.

Does MITIE contribute to thenational CR agenda?We certainly do – Ruby is Chair of Race for Opportunity and Suzanne is an Advisory Board member of OpportunityNow, the race and gender diversitycampaigns of Business in the Community(BITC). Our Corporate ResponsibilityManager Stephen Barthorpe is also activelyinvolved promoting CR with BITC andsustainable development forums within the Business Services Association and BritishQuality Foundation, as well as publishingacademic papers on CR. Our EmploymentRegeneration Director, Jane James also represents MITIE on the All PartyParliamentary Group for CR.

Stephen Barthorpe

Group Corporate Responsibility Manager

Focus: Development of CR strategy, polices and procedures

What is MITIE’s CR strategy, and how effective is it? Our CR strategy is based around a businessmodel with a focus in five areas; Health andsafety, People, Service delivery, Environmentand Community. For the last four years wehave used the Business in the Community CRIndex as a management and reporting toolto measure our performance. I’m pleasedto say that each year we have madesignificant progress and we are currentlylisted in the silver category of ‘Top 100Companies that Count’ survey published inthe Financial Times, in which we have beenlisted for the last three years. I am pleasedthat our CR achievements have beenrecognised nationally and I see CR as beingone of MITIE’s key business differentiators.

How does MITIE implement its CR strategy?We have a CR Champions Forum of around forty people throughout the UK, utilising a diverse range of skills,qualifications and experience across the Group. We have experts in health and safety, employability, procurement,environment, diversity and communityengagement who all contribute to this activity and the achievement of our strategy.

Each year MITIE’s Executive Board reviews and authorises the CR strategy,objectives and targets. Our CR professionalsand CR Forum are then responsible fordelivering the programmes and activitiesacross the Group to achieve theseobjectives and targets.



Stakeholders’ engagement strategy

Our strategy is to deliver value to all our stakeholders including our shareholders, investors, clients,people and the wider community. We have an uncompromisingcommitment to deliver value to our clients by providing them withquality services, and demonstratingresponsible business practice to enhance our relationships. We also take measures to minimise and mitigate the impact that our business has on the natural environment and work with our clients and suppliers to improve their environmentalperformance too.

Stakeholder group

People

Suppliers

Clients

Investors and shareholders

Society

Visit our website to get more information:mitie.co.uk/cr



Overview

07

– Regular account meetings and performance reviews with our clients enable us to monitor and manage our relationships and service levels.

– Our Real Apprentice employability programme, offering training and employment opportunities has been successfully supported, and in some cases replicated, by our clients for a number of years.

– We engage with our clients formally and informally. Formal client satisfaction surveys are undertaken as well as regular account meetings and performance reviews.

– Informal engagement with clientsincludes joint participation in MITIE’semployee volunteering communityprojects.

– We also respond directly and indirectly to investors and shareholders via surveys and information about MITIE that is held by investment analysts and CR research data bases compiled by FTSE4GoodIndex, EIRiS and PIRC.

– We’re seeing increasing interest in our CR credentials from our shareholders, and have held a number of meetings with our shareholders’ ethical investment and CR teams.

– We communicate with our investors andshareholders in several ways. The mostvisible of these are through our Investorroad shows, AGM, Annual Report andAccounts, our CR reports and throughour website www.mitie.co.uk

– We believe in demonstrating ourreputation as a responsible business by putting something back into themany communities where we work. Our main community investmentactivities include providing support for schools, appropriate charities and third sector organisations.

– We have responded to the construction skills shortage by creating seven Skills Centres in schools throughout the UK where around 460 students are currently studying vocational certificates and diplomas.

– Our employee volunteering programme focuses on providing ‘World of Work’ challenge days that prepare the students for their work experience and future careers.

How we respond– Our Employee Forum provides the platform for dialogue and consultation

between elected employees and the main Board.

– MITIE’s award-winning internal communications inform employees about a wide range of key business initiatives, events and reward schemes. Our publication MITIE Life is sent to every one of our 50,000+ people and actively encourages them to contribute and feel part of the MITIE community.

– A comprehensive intranet is also available and covers all aspects of the business.

– A whistle-blowing facility is in place to deal with any issues requiring investigation.

How we engage– We treat our people with respect

and are passionate about providingopportunities to help them reach their full potential. We achieve this by delivering extensive training anddevelopment programmes and offeringan experienced support network.

– We undertake reviews with our key suppliers to ensure that they are aligned with our CR principles and standards and also help them to promote social,environmental and ethical accountability within their own supply chain.

– We see our suppliers as partners and work with them in delivering quality servicesand in promoting business opportunities and sustainable growth.

– MITIE engages with key suppliers and subcontractors via our SupplierImprovement Programme to promotemutually beneficial trading relationshipsbuilt upon trust, ethical businesspractices and cooperation.

– Our Sustainable Procurement Forum,which comprises of procurement andCR specialists, promote best practicewith our key suppliers.



PeopleMITIE is dedicated to implementing a comprehensive and proactivepeople strategy with policies toensure that all employees are treatedequally, fairly, and in a responsiblemanner. We’re committed toproviding an environment thatenables our people to reach their full potential.

How we measure our progress


For the third successive year we haveimproved our management retention rate, retaining quality people to deliverworld-class service for our clients.

Our people priorities, within our CR strategyalign with MITIE’s founding philosophy thatwas established over two decades ago to create opportunities and provide theright environment to enable our people to reach their full potential. We achieve this by providing appropriate training and learning development support for all levels of employees via structureddevelopment programmes.

Our talent management strategy is alsoinfluenced by external commercial driversto ensure that we provide the world-classservice our customers expect.

At MITIE, we make a significant investmentin the training and career development of our people and offer a comprehensiverange of courses linked with nationallyrecognised programmes. These range from NVQ literacy and numeracyqualifications via our Skills Pledgecommitment, cultural awareness anddiversity training to a wide range oftechnical and professional qualifications to make sure that our people are fullycapable of meeting the challenges they face at work.

What is our objective?To provide opportunities and the rightenvironment to enable our people todevelop to their full potential.

How are we going to achieve it?1. We will continue our Skills Pledge

commitment to offer access to Skills for Life and other learning anddevelopment opportunities within our Talent Management programme to all of our employees;

2. Deliver eight CR Awareness trainingseminars for employees by April 2010;

3. We will deliver a suite of bespokediversity training courses to our people by April 2010 including; seven managing and valuing diversity courses, three diversity in bids courses,and at least two recruitment andselection programmes that have an emphasis on disability; and

4. During 2009 we will run a pilotemployability programme inconjunction with Wellness to Working,London based on our successful RealApprentice model for people with mildto moderate mental health issues.

%

91.4

2007 2008 20092006

Not measured

92.0 93.0


09MITIE Group PLCCorporate Responsibility Report 2009

People

ThinkThe long-term success of any business comes down to having the right people for the right joband opening up opportunities for all. By investing in our people, we’re investing in our future. A keypart of our Talent Management programme is ouraward-winning Real Apprentice scheme whichhelps take away the barriers to employment faced by young people from disadvantaged areas. In the last four years the scheme has wonprestigious Business in the Community Big TickAwards for Excellence, the 2006 PFM Partners with People Award and the Greater London Training Award.

ManageBy working with the East London Business Alliance(ELBA) and a number of clients in the financial and professional services sector including our client PricewaterhouseCoopers LLP (PwC), our Real Apprentices all aged between 17–25, are each given 12 weeks of training and workexperience on one of MITIE’s contracts. At the end of the 12 week period, the apprentices areguaranteed an interview for a full-time job aftersuccessfully completing the full course.

DeliverSince October 2005, 78 people have securedpermanent roles with MITIE and our clients directlythrough the Real Apprentice scheme which has an 80% retention rate after six months’ employment. The scheme’s successful model has now beenimplemented by PwC who have also facilitated ajoint venture Real Apprentice programme with someof their other suppliers. In 2009/10 we plan to adaptthe programme to more diverse participants acrossLondon. Working in partnership with specialistorganisations from the fields of mental health todisability, we hope to run tailored programmesacross our business to ensure an equal and diverseopportunity for all members of our communities.

The Real Apprentice scheme

“The long-term success of any business comes down to having theright people for the right job andopening up opportunities for all.”Real Apprentice graduates Shazmin Begum,

Jamil Ahmed and James Day



Working Links Scotland In the past 18 months Working LinksScotland has developed an excellentrelationship with MITIE’s security businessin Scotland. The relationship hasproduced outstanding results andcreated many job opportunities forpeople looking to get back to work in Scotland. Working Links has recentlyplaced their 100th client with MITIEwhich is a fantastic achievement.Moving people into work through Local Employer Partnerships has beenparticularly successful and MITIE andWorking Links received an award for ‘best practice in recruitment’ at an evening of celebration andpresentation organised by Job CentrePlus on 12 March 2009 in Glasgow.

Talent managementEmployee development and training isessential for us to maintain our competitiveedge in our challenging market sectors,and MITIE offers a comprehensive range of career and personal developmentprogrammes. In 2008/09 we spent over £3.4m on training courses, providing over 35,134 delegate days across 445 different courses, which averages outat 4.2 hours training for every employee.Our training centre at Frimley Green, Surrey was used on 200 days during thesame period, hosting training courses and meetings for over 2,604 people,including six Corporate ResponsibilityAwareness seminars.

Skills pledgeIn our CR report 2008 we reported ourcommitment to the UK Government’s Skills Pledge. Over the past year we’veestablished a dedicated Skills Pledge teamdrawing on the knowledge and expertiseof our HR, Training, and Communicationsspecialists. The team have developed theframework, established the relationships,and implemented the policies to offer our people some excellent learning anddevelopment opportunities.

MITIE’s Facilities Management division is the first to implement the Skills Pledge.Working in conjunction with our deliverypartner Jigsaw Training, we now offer ourpeople a number of Skills for Life courses to help them improve their Maths andEnglish skills, as well as gain access toNational Vocational Qualifications (NVQs)and apprenticeships.

Our challenging target is to deliver 8,700 National Vocational Qualifications by 2012. The investment brings with ittangible business benefits as we enhancethe literacy, numeracy and employability of our people, and in turn improve the levels of our service delivery and clientsatisfaction levels.

Diversity and equal opportunitiesMITIE respects the rights of its people and those of our stakeholder partners byendorsing the tenets of the InternationalLabour Organisation Declaration onFundamental Principles and Rights at Work, and the Ethical Trading Initiative ‘Base Code’. Our investment andcommitment to equality and diversity has increased significantly during the past year. We have continued to developnew initiatives and training opportunities to support our people.

We’ve also invested in a new e-learningpackage for equality and diversity tosupport our diversity training across thebusiness. The package is accessed via our intranet. We’re also running courses on Managing and Valuing Diversity acrossthe UK.

Our work has not gone unnoticed. We have recently attracted funding from the Women and Work Commission via Construction Skills for our women’slearning and development activities. The commission was impressed with ourofferings across all three of our divisions.

Opportunity NowWe remain committed to the work ofOpportunity Now, the BITC gender diversitycampaign of which our Group FinanceDirector Suzanne Baxter in an advisoryBoard member. We were delighted to have attained a Silver standard in thecampaign’s recent gender benchmarkingexercise. The result reflects the goodpractice undertaken around our businessand improvement on our previousachievements. At Board level 50% of our Executive Directors are female and we are committed to the development of our female talent base in the future.



People

11

Supporting disabilityAs part of our commitment to supportingthose with disability, MITIE has acomprehensive Occupational Healthservice provided by Managed OccupationalHealth Limited. We realise that it is onlythrough having access to such a serviceand implementing it correctly that disabilitycan be robustly identified and supportprovided as required.

In 2008/09 MITIE began working withRemploy, one of the UK's leading providersof employment services and employmentto people with disabilities and complexbarriers to work. Our relationship continuesto develop as we look to break down the traditional barriers to entering the workplace.

A key building block of our people strategy for 2009/10 is conducting a fullreview of how MITIE can recruit, retain and support employees with disabilities. This process demonstrates that we’redetermined to ensure we have the rightpolicies and procedures in place to support MITIE people with disabilities. In doing so we will:

– Set a clear vision for supporting existingand future employees with disabilities;

– Establish our strategic goals for disabilitymanagement;

– Publish a disability action plan; and

– Regularly monitor our performance in disability management.

Communication is key to the success of our plan and in the first half of 2009/10we’ll be assessing the accessibility andusability of our internal and externalcommunications tools, and wherenecessary engaging with specialistagencies to help us optimise their form and content for existing and prospectiveemployees with disabilities.

RemployMITIE’s Joe Fryer, who lives in Toxtethand has curvature of the spine worksfor our cleaning team at QueenSquare bus station in Liverpool citycentre. Joe is one of seven MITIEpeople in the city who’ve foundemployment through our relationshipwith Remploy.

Salaried employee seniority based on salary band; gender profile

Gender/Salary <20K 20–40K 40–60K 60–80K 80–100K >100K

Male 1,313 2,727 576 168 71 41

Female 1,871 1,070 86 17 9 6

Salaried employee seniority based on salary band; ethnicity profile

Ethnicity/Salary <20K 20–40K 40–60K 60–80K 80–100K >100K

White 2,008 2,063 323 98 39 30

Black Asian and Minority Ethnic 92 109 14 1 0 1

Ethnicity not disclosed 1,084 1,625 325 86 41 16

We started recording the ethnic origin of our people in 2006 so the majority of ‘ethnicity not disclosed’ refers to people employed before 2006.

MITIE Stars AwardsOur MITIE Stars Awards recognisepeople who show true passion for their work, going above and beyondthe call of duty. The winner of our first annual MITIE Stars award wasannounced in September 2008, and the lucky lady to take home the £15,000 first prize was Jan Roe. Jan works for our cleaning business as a Site Manager at ChesterfieldCollege and has been with MITIE since August 2006.



Race for OpportunityRace for Opportunity (RFO) is Business in the Community’s workplace programmethat focuses on race equality. It representsa growing network of private and publicsector employers who recognise thatworking proactively on race and culturaldiversity can have a positive impact on business performance in terms ofincreased efficiency and productivity. Our commitment to the programme comes from the very top of our organisationas MITIE Chief Executive Officer RubyMcGregor-Smith is the Chair for Race for Opportunity.

[Skills Commission report on Apprenticeships] On 18 March 2009, David Edwards, an apprentice engineer in MITIE’s Asset Management division made aspeech to an audience comprising ofsenior business leaders, and membersof the House of Lords and the House of Commons during the launch of the Skills Commission report onApprenticeships. The event in Londonwas hosted by Barry Sheerman, MP forHuddersfield, Chair Skills Commissionand Chair of the Children, Schools andFamilies Committee.

Workplace summary 2009Gender Male Female Total

29,871 21,615 51,486

58% 42% 100%

Ethnic Ethnicity notOrigin* Bangldeshi Chinese Pakistani White Black AC Indian Other disclosed Total

108 38 579 18,728 702 707 3533 27,091 51,486

0.21% 0.07% 1.13% 36.37% 1.37% 1.37% 6.86% 52.62% 100%

Age notAge <20 years 20–29 years 30–39 years 40–49 years 50–59 years 60–69 years >70 years disclosed Total

1,471 10,246 10,586 12,656 10,282 4,883 859 503 51,486

2.86% 19.90% 20.56% 24.58% 19.97% 9.48% 1.67% 0.98 100%

Service <2 years 2–4 years 5–9 years 10–19 years >20 years Total

25,656 14,160 7,482 3,488 700 51,486

49.83% 27.50% 14.53% 6.78% 1.36% 100%* We have recorded the ethnic origin of our people since 2006.

These percentages represent 24,395 (47.4%) of our total 51,486 people as at 30 March 2009.

“With MITIE’s invaluable leadership andcontribution we are positive that we willcontinue to set the stage for race equalityand progression in the UK.

I believe that MITIE should continue to becommended and recognised for theirleadership and for the outstanding workthey have done with young people toincrease their skills through apprenticeshipsand partnerships with schools.”

Sandra Kerr Campaign Director Race for Opportunity campaign



People

13

How we performed

Targets 2008/09We will expand our ‘Skills for Life’initiative and commit to delivering8,700 NVQ’s over the next three years;

We will demonstrate our commitmentto diversity in the workplace by issuing an Equality and Diversity policy statement, quality proofing our existing policies and proceduresand raising awareness in ourworkforce by April 2009;

In partnership with Opportunity Nowwe will undertake a benchmarkinggender survey and put together an action plan to address areas for improvement by April 2009;

We will run two new Real Apprentices programmes, offering 68 training placements with our clients during 2008.

How we performedContract signed with Learning Skills Council on 24 November 2008 and assessment and individual learning plans being developed for our Security and Cleaning businesses.

Equality & Diversity Policy published. Equality-proofing of existing policies andprocedures is ongoing with Equality Works consultants. 769 people have completed the online E&D training course.

The Opportunity Now benchmarking gender survey was submitted and achieved‘Silver’ status. An action plan will now be developed from a gap analysis of theOpportunity Now feedback report to identify areas for improvement for 2009/10.

Two Real Apprentice programmes were run although 15 placements were unfilled due to applicant funding and eligibility issues with our community partner.

Objective: To provide opportunities and the right environment to enable our people to develop to their full potential.

To get a full overview of all of our performance data visit our website:mitie.co.uk/cr

1

2

3

4

Key:

Achieved

Ongoing

Not achieved

Previously reported as ‘Workplace’

Corporate commitment

and disclosure (Q36)

69.0

MITIE Group PLCSupport Services SectorAll Sector Index

Workplace management %

71.0

68.0

86.0

83.0

81.0

100.

0

97.0

94.0

100.

0

95.0

90.0

Integration(Q37)

Employeeprogrammes

(Q38)

Measuring and

monitoring (Q39)

CR Index 2008 – workplace management

We outperformed the other CR Index participants in three of the four areas, scoring a maximum 100% in two of them. There is room for improvement however in two of the areas (Q36) Corporate Commitment and Disclosure and (Q37) Integration for us to focus on during 2009/10.



Service delivery

Our CR strategy for service delivery is driven by our desire to provide a world-class service and continuallyenhance our relationships with our clients and supply chain stakeholders. This strategy provides the platform forbusiness improvement initiatives that are identified in our four specific targets.

Through our CR activities we have beenable to add significant value to ourcommercial services by supporting ourclients’ own CR agendas. This has proven to be mutually beneficial in enhancing our business relationships, and developingcloser links with the communities in whichwe operate.

We strive for continuous improvement and by linking our CR activities with someof our supplier partners we are able toreinforce up-stream accountability withinthe supply chain. Our employee volunteerprogramme has also benefited from theparticipation of our clients and suppliers.

What is our objective?To demonstrate responsible businesspractice and enhance relationships withour clients and supply chain stakeholders.

How are we going to achieve it? 1. Conduct a further ten CR reviews

with key suppliers as part of our supplierimprovement programme by April 2010;

2. Continue to engage with our key clients, sharing best practice andproviding CR guidance and support;

3. Exhibit best practice sustainabilitysolutions at the London Climate Change Marketplace event on May Day 2009; and

4. Support relevant Government,professional and industry bodies,engaging with our stakeholders to promote CR best practice.

MITIE is committed to proactivelydeveloping mutually beneficialtrading relationships and promoting corporate responsibilitywith our commercial stakeholders,based upon a foundation of trust and cooperation.



of retained facilities managementcontracts. For the fourth successive year we have increased thepercentage of retained existing facilities management contracts,demonstrating the added-value service we bring to our many clients.

%

84 85

2007 2008 20092006

86 88

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Service delivery

15

ThinkWe have been working with RWE npower, since2002, providing integrated facilities services to their 40 main sites all over the UK. Since then wehave worked in partnership to deliver significantsavings. We have achieved these savings throughcontinuous improvement across the contract, which is delivered by a multi-skilled, ‘one-team’approach. This has not only supported RWE npowerin making savings across their buildings and facilities,it has also helped to support them in achievingmany of their non-financial objectives, especiallytheir environmental and CR objectives.

ManageRWE npower are committed to reducing CO2

emissions across their estate. Over recent years we have worked together to implement a range of initiatives and supported RWE npower inmonitoring and reducing energy usage across their buildings. This has been achieved through our on-site maintenance and engineering teamwho have identified areas where savings can be made, creating an action plan to achieve these savings. This has been combined with a drive to increase recycling across the buildings and significantly reduce the amount of waste going to landfill.

DeliverWe are very proud of our recycling operation on this contract. Whether it is plastic bottles and cups,cardboard, office paper, cans, food waste or tonercartridges, we have now introduced a varied list of waste streams and recycling facilities to help RWEnpower to increase recycling across their buildings.MITIE has also supported RWE npower on a numberof wider issues related to their own CR agenda.Karen Govier our Equality & Diversity Manager, is now working in close collaboration with Nick Smith,Head of Diversity & Inclusion at RWE npower, to share best practice. Practical examples of this arealready starting to emerge with the creation of ouronline Diversity training package which follows onfrom a similar e-learning tool used by RWE npower.

RWE npower

“Working together to implement a range of initiatives to monitor andreduce energy usage.”

Nick Smith, RWE npower’s Head of Diversity & Inclusionwith MITIE Account Director Rob Earnshaw



We achieved a 51% increased volume of Fairtrade sales to our clients.

In 2008/09 we recycled 410.6 tonnes of waste, that's about the typical weight of a commuter train.

Supplier Improvement ProgrammeMITIE collaborate with our key suppliers to enhance our social, ethical andenvironmental awareness andperformance. In 2007, we established a Supplier Improvement Programme toensure that our key suppliers are alignedwith our CR principles and apply ‘upstreamaccountability’ in their own supply chain.The Supplier Improvement Programmeincludes CR audit reviews of significantsuppliers undertaken by professionals from our Sustainable Procurement Forum. This has proven to be invaluable in sharingbest practice and also in identifying areaswhere further improvements can be made.

MITIE’s Sustainable Procurement Forum was established to:

– Adopt and share best practice inpurchasing and supply standards;

– Develop mutually beneficialcollaborative trading relationships; and

– Promote sustainable and ethical trading practices.

Our clients expect us to be able todemonstrate high levels of CR performanceand because of our commitment to CR weare able to respond well to prequalificationand tender requirements. We also utilise our considerable environmental experience and capabilities by providingsustainability related guidance for ourclients, helping them to reduce their impact on natural resources and increasecost certainty.

1 This number is based on audit results to 21 April 2009.

Continuous improvementIn order to provide our clients withconsistently high levels of service deliverywe’ve been working extremely hardtowards gaining certification across all our operational businesses to the ISO 9001 (quality management), ISO 14001 (environmental management)and BS OHSAS 18001 (Occupational healthand safety management) standards.

In 2008/09, we achieved certification across100% of our business operations to BS OHSAS18001 and ISO 9001, and 97% to ISO 14001. By the end of financial year 2009/10, we expect to have achieved certification to all three standards across 100% of our business operations and will continue our journey of continuous improvement.

One measure we use to identifyimprovement is the analysis of the numberof non-conformities (NCs) per audit day(third party audits). Since 2005/06 we haveimproved our performance by over twothirds, from 3.2 audit findings per audit dayin 2005/06 to 1.33 audit findings per auditday in 08/091.

The graph below demonstrates our qualityperformance improvement whereby total non-conformances have reducedyear-on-year:

The increase in the number of non-conformities over the last three yearsagainst the 18001 and 14001 standards was anticipated due to the increase in business certification. Based on the trends for the decline in findings against our Quality Management Systems, it is expected that findings against ourEnvironmental and Occupational Healthand Safety Management systems will also decline for 2009/10 as our practices are embedded into the businesses.

06–07 07–08 08–0905–06

ISO 9001

ISO 14001

BS OHAS 18001

160

140

120

Num

be

r of n

on-

co

nfo

rma

ties

100

80

60

40

20


17MITIE Group PLCCorporate Responsibility Report 2009

Service delivery

How we performedObjective: To demonstrate responsible business practice and enhance relationships with our clients and supply chain stakeholders.


Previously reported as ‘Marketplace’

Targets 2008/09We will engage with key clients andsupplier stakeholders, sharing CRvalues, knowledge and best practice;

We will increase the range of‘Fairtrade’ food products offered to our clients and increase volume by 20% by April 2009;

We will conduct another ten CR reviews with our suppliers by April 2009 as part of our supplierimprovement programme;

We will support relevant professionaland industry bodies in promoting CR-related issues.

How we performedWe engaged with key clients and suppliers throughout the year sharing our CR expertise at various seminars, roadshows, and workshops events.

By April 2009 we increased the Fairtrade product range and increased produce volume overall by 51% at our client sites.

Eleven CR supplier reviews were undertaken by April 2009 with satisfactoryoutcomes.

Our Chief Executive and Group Finance Director are Board members on Business in the Community programmes. Other Senior Managers hold responsible positions with Business Services Association and British Quality Foundation.

1

2

3

4

CR Index 2008 –marketplace management

We scored a maximum 100% in four of the five areas assessed, outperforming the other CR Index participants. However we under-performed compared to the other index participants in the remaining area (Q33) Influence over the rules so we will focus our attention on improving this area during 2009/10.

Product or Service impact

(Q30)

100.

0

%

96.0

93.0 100.

0

95.0

95.0

100.

0

82.0

80.0

100.

0

88.0

85.0

38.0

63.0

74.0

Customers (Q31)

Supply Chain Management

(Q32)

Influence over the

Rules (Q33)

Consistent Standards

and Governance

(Q34)


Key:

Achieved

Ongoing

Not achieved



Environment



As our business continues to grow and we strive to provide world-class services for our clients we also encounter increasing environmental challenges inminimising our impact on climate change.This is a key issue for us and we haveimplemented many initiatives to improveour own environmental performance, and also influence improvement for ourclients and suppliers too.

We have a large vehicle fleet whichcontributes around 90% of our carbonfootprint so one of our environmentalpriorities during 2009 is to purchase low emission, fuel efficient vehicles in our vehicle replacement programme.

We will also continue to makeimprovements in our measuring andmonitoring systems for fuel and energyconsumption, and utilise the extensiveknowledge and expertise we are fortunate to have among our ownenvironment and sustainability specialists.

What is our objective?To demonstrate continuous improvementin our environmental performance.

How are we going to achieve it?1. Organise, in conjunction with a client,

a road show on 5 June 2009 celebratingWorld Environment Day;

2. Reduce replaced vehicle CO2

emissions by 10% by purchasing at least 100 low emission vehicles as part of our replacement programme, and by further investment in on boardvehicle telematic tracker systems;

3. Develop a consistent approach forelectricity and gas reduction in MITIEoffices through improved monitoring,measurement and targeted projects;and

4. Continue our environmentalmanagement certification programmein accordance with the requirements of ISO 14001.

We are aware of the impact that our business operations may have on the natural environment. We endeavour to minimise andmitigate such effects where possibleby utilising environmentally benignmaterials and practices. We respectour environment, and share bestpractice with all of our stakeholdersas we strive to achieve ourenvironmental targets.

reduction in average vehicle fleet emissions.

tonnes equivalentCO2 per employee

0.70

2007 2008 20092006

Not measured

0.64 0.64



Environment

19

ThinkAs part of our sustainability strategy we participate in a number of exhibitions and seminars across the UK, including the May Day Business Summit on Climate Change in London on 1 May 2009. The events allow us to share best practice, and our specialist knowledge on environmental andsustainability innovations, including helping peopleto reduce their impacts. We’re also able to raise the profile of the importance of aligning corporateobjectives to an environmental plan by:– Assessing current status by environmental audits;– Setting benchmarks;– Building a sustainable programme;– Addressing compliance issues;– Engaging with stakeholders;– Zero landfill;– Delivering a Carbon Reduction Commitment

strategy and ‘greening’ the supply chain.

ManageDuring the day, our environmental specialists ran two roundtable workshops; ‘The Journey to Zero Carbon’ and ‘Thinking, Managing & Deliveringa Sustainable Business’ which were attended byclients and industry professionals.

Our experts were also on hand to advise thehundreds of people who came to this prestigiousevent, which was also attended by HRH The Princeof Wales and other dignitaries including, BorisJohnson, Mayor of London and Ed Milliband,Secretary of State for Energy and Climate Change. A live link broadcast was also made by explorer Pen Hadow from the Arctic, who demonstrated theextent of the polar ice melt due to global warming.

DeliverMITIE’s six market stalls featured; energy managementoptimisation, zero carbon journey, renewable energysolutions, sustainable pest control, waste management,recycling technology solutions and case studyexamples of some of our projects. Our pest controlbusiness demonstrated a range of environmentally-friendly conservation measures it adopts, includingone of its Harris hawks that is used to control pigeons.Two of our chefs were also on hand to provide a range of delicious, locally sourced canapés and refreshments.

Over the last two years we’ve improved themeasurement, monitoring and management of our fuel and energy consumption.

To see our 2009 May Day pledges please visitwww.mitie.co.uk/may-day-pledges

May Day Summit 2009

“We’ve improved the measurement,monitoring and management of our fuel and energy consumption.”MITIE’s Nicola Corderoy and Isabel Donovan

at one of our six market stalls



Vehicle fleet managementBetween April 2008 and March 2009 wehave purchased150 low CO2 emission, fuel efficient vehicles as part of our vehiclereplacement programme – helping todecrease our impact on the environment.We have achieved our aim to reduce our average vehicle fleet CO2 to below 160 CO2 g/km. Our fleet average emissionsfor 2008/09 are nearly 4% lower at 154 CO2 g/km.

This has seen a reduction of around 14% inCO2 emissions compared to the vehiclesthey replaced. We will continue to reducethe average vehicle fleet CO2 emissions by purchasing another 100 low emissionvehicles as part of our replacementprogramme and by investing in more on board telematic tracker systems.

We constantly seek to improve theenvironmental performance of our vehiclefleet by investigating alternative fuels andlower emission engine types.

Vehicle fleet fuel consumption accounts for around 90% of our CO2 emissions andimprovements in fleet management toreduce this impact have been prioritisedwith immediate improvements realised.New fleet vehicles purchased have thelatest Euro IV compliant engines and lower emissions ratings. Changes to fuelprocurement, the introduction of carsharing schemes and the installation of telematic vehicle trackers to optimisetravel distances has also reduced fuelconsumption and emissions. In 2008/09 we also made further investments intelephone and video conferencing facilitiesto help reduce business related travel.

Green Standards MITIE has established a mutually beneficialworking relationship with Green StandardsTrust – a charity that collects and redistributesredundant business assets to worthy causesin the UK and overseas. Unwanted, butuseable items such as computers andfurniture are redistributed via GreenStandards ‘Waste to Wonder’ warehouse in Swindon where items are sorted andshipped in their ‘School in a Box’ containersto schools in developing countries.

Between April 2008–2009 Green Standardscollected 304 tonnes of furniture from MITIEclient sites. 213 tonnes of this was recycledand 91 tonnes was redistributed to charitiesand schools in the UK, Romania, SierraLeone and Malawi.

MITIE’s car sharing scheme, initiated in the Midlands has already saved 8,560 miles of travel between January–March 2009, reducing CO2

emissions by 2.7 tonnes.



Environment

21

Environmental ImpactManagement (EIM)In 2008 we introduced an integratedImpacts reduction, EIM service for ourclients – offering a holistic approach toenvironmental management through an appreciation of the existing culture;consulting with client teams and ultimatelydelivering a package of impact reductions,cost savings, improved stakeholder relations and increased brand value.

Environmental sustainability is not limited to the procurement of raw materials interms of energy and water, and theirdelivery into a building. It’s a much widerrecognition of how these materials are then consumed in daily operations, as wellas the procurement and manufacture ofsupplies to service the building. EIM alsoextends to the transportation of equipment,materials and people to undertake theoperation, the consequence of use in the production of surplus waste, and finallythe delivery of products and services to the ultimate consumer. Only when all these activities are considered can we truly start to evaluate a building’s impacton its environment.

MITIE’s new EIM offering is ideally suited tomeet our clients’ requirements. Its purpose is to help clients navigate their way throughthe maze of what is required through a carefully planned programme of impact improvements, financial savings,compliance and stakeholder engagement.All of this is implemented in a whollysustainable manner, delivering true benefits in a financially viable programme of events.

The demand for EIM services in the public and private sector is substantial due to a constantly emerging and evolvinglegislation, including amongst others theClimate Change Bill 2008 with demands(and ethical imperative) to reduce the UK’s carbon footprint by 80% by 2050.

A quiet revolutionWe've installed over 20 quietrevolutionwind turbines across the UK. At only five metres high the elegant helical(twisted)design ensures a robustperformance even in turbulent winds – a single turbine can generate10,000kWh a year whichever way thewind is coming from. It is also virtuallyfree from all noise and vibration.

Fuel/Energy CO2 breakdown% CO2 FY2008/09 FY2007/08 Difference

contribution Tonnese Tonnese %

Gas 2.3 751 458 64.0

Electricity 6.5 2,077 1,795 15.7

Fuel (all types) 91.2 29,452 28,374 3.8

Total 100% 32,280 30,627 5.4

Although absolute CO2 emissions increased by 5.4% compared to the last reporting period, normalised CO2 emissions per employee remained the same and normalised CO2 emissions aligned with revenue reduced by 2.7%.



Environmental/financial KPIs trend analysisDifference

Unit FY2008/09 FY2007/08 %

Total revenue £m 1,521.9 1,407.2 8.2

Profit before tax £m 75.9 67.9 11.8

Average number of employees Number 50,054 47,959 4.4

Total CO2 emissions Tonnese 32,280 30,627 5.4

Normalised CO2/ave. employees Tonnese 0.64 0.64 –

Normalised CO2/£m revenue Tonnese 21.2 21.8 (2.7)

Total water consumption M3 17,843 17,103 4.3

Normalised water consumption/ave. employees M3 0.35 0.36 69

Total waste Tonnes 933.1 1042.0 (10.5)

Total waste/average employees Kg 18.64 21.73 (14.2)

Total waste recycled Tonnes 410.6 472.9 (13.2)

Percentage of recycled total waste % 44 45.4 (3.1)

CO2 equivalent was calculated using DEFRA conversion factors.

Neil Plant

Regional Health & Safety Manager & Environmental CR Champion

What does a CR Champion do andhow do you link this responsibilityinto your professional role?“The main part of my role is to co-ordinatea team of regional CR Champions whoundertake a wide variety of CR initiativeswith clients, suppliers, colleagues and thelocal community. This involves providingadvice and support to communicate the Group’s CR strategy and policies. I maintain links with local communities todemonstrate that we treat CR as a normalway of life at MITIE and I personally getinvolved in volunteering my health andsafety and environment expertise inschools, which I find very rewarding and keeps me on my toes! I have alsointroduced a car sharing scheme in theMidlands which has helped us reduce our travel costs and carbon footprint.

I really enjoy my role as a CR Champion, I have learnt a lot and I see it as a naturalextension of my professional role anyway –it’s the right thing to do.”

Sustainability strategySustainability is about maintaining anappropriate triple bottom line balance by integrating, measuring and managingeconomical, environmental and societalperformance. We are committed to theoperation of a responsible, sustainablebusiness model that underpins our ethicalprinciples and practice in our operations aswell as relationships with our stakeholders.

We have identified and assessed our key social, economical, ethical andenvironmental risks, and implementedappropriate initiatives to mitigate theirimpact. Our sustainability strategy 2009/10is available atwww.mitie.co.uk/sustainability_strategy

MITIE is a member of the Renewable Energy Certification Scheme, British WindEnergy Association and has BuildingResearch Establishments’ (BRE) micro-regeneration accreditation.

We have significant sustainability expertiseat every level of our organisation which is demonstrated in the comprehensiverange of services offered to our clients. This expertise and experience isunderpinned by formal academicqualifications and professional charteredstatus of many of our key people. In addition, we currently have 12 qualifiedLow Carbon Energy assessors and 21 going through the CIBSE approved trainingprocess to become qualified EnergyAssessors/Low Carbon Consultants toenable them to inspect buildings andauthorise them to issue Energy PerformanceCertificates (EPCs) and Display of EnergyCertificates (DECs).



Environment

23

How we performedObjective: To demonstrate continuous improvement in our environmental performance.


Objectives (Q23)

100.

0MITIE Group PLCSupport Services SectorAll Sector Index

%

94.0

94.0

81.0

67.0 75

.0

100.

0

97.0

96.0

100.

0

92.0

84.0

100.

0

81.0 86

.0

Targets (Q24)

Employee Environmental Programme

(Q25)

Communications with external Stakeholders

(Q26)

Environmental Management

System (Q27)

100.

0

88.0

80.0

Environmental Audit (Q28)

Targets 2008/09To undertake three environmentalprojects with our employee volunteerteams by April 2009;

To improve our measurement and monitoring systems for fuel and energy use and reduce our per capita consumption andcarbon footprint by April 2009;

To introduce an integrated carbonreduction commitment EnvironmentalImpact Management (EIM) serviceincorporating renewable technologyoff-set solutions by April 2009;

To recycle 60% of our officeconsumable materials waste by April 2009.

How we performedThree ‘eco-school’ projects have been undertaken and a World Environment Day event held with our client, HMT in Norwich.

Improvements continue and are ongoing; ‘all star’ fuel card was introduced to increase fuel purchase locations and reduce travel. Telematic trackers fitted to about 1,000 vehicles, investment made in telephone/video conferencingfacilities, SAFED (Safe and fuel efficient driving) courses run. The overall averagevehicle fleet emissions for 2008/09 is nearly 4% lower at 154 CO2 g/km.

EIM proposal approved in December 2008 and a dedicated team is now in placeto manage this service.

A comprehensive recycling audit was undertaken to identify waste stream typesand quantities disposed/recycled. 66% of used catering vegetable oil (49,000 litres)was reprocessed into biodiesel. Overall 44% of general waste was recycled, butapproximately 30% of all locations achieved a recycling rate of 90%. A further 30% of our locations achieved just below this level. We have seen a 10% reduction in the quantity of total waste generated by ourbusiness in the reporting period.

1

2

3

4

CR Index 2008 – environment management

We outperformed the other CR Index participants in all six of the areas assessed, scoring a maximum 100% in five of them. We will focus our attention in makingimprovements in the remaining area (Q24) Targets during 2009/10.

Key:

Achieved

Ongoing

Not achieved



Health and safety



The need to maintain a safe andhealthy workforce is of utmostimportance to MITIE and wecontinually strive to improve ourhealth and safety performance.

successive year we have reduced our reportable incident rate due to ourmanagement systems based approach to managing health and safety risk.

per 1,000employees

6.1

5.1

2007 2008 20092006

4.0 3.9

We operate in many challengingenvironments and our people are exposed to a wide variety of workplacehazards posing varying degrees of risk.Therefore managing this risk via formalhealth and safety management systems is key to our approach in maintaining safe working environments for our peopleand improving our health and safetyperformance on a continual basis.

Our management systems basedapproach provides a structuredprogramme to identifying hazards,assessing risk, implementing effectivecontrol measures and then reviewingperformance to ensure that we are always improving. Our businesses certifytheir health and safety managementsystems against the requirements of an internationally recognised standard(OHSAS 18001), via an independent thirdparty, to ensure that an objective view of our performance is undertaken andformal opportunities for improvement are identified.

We believe that health and safetyaccountability and responsibility begins at the top of the organisation and visibletop down commitment is critical in ensuringour systems and standards for health and safety management are adhered to throughout MITIE. For this reason wefocus on training all of our employees, at all levels throughout MITIE, to ensure that they have the required knowledge,competencies and skills to carry out theirwork in the right way. This year saw MITIEembark on a new approach to health and safety leadership that will, we believe,further embed the leadership skills of oursenior managers and strongly support the significant level of operational trainingthat we undertake every year.

What is our objective?To demonstrate continual improvement in health and safety performance.

How are we going to achieve it? 1. Develop a set of key performance

indicators to improve health and safety performance measurement and management and implementacross all MITIE divisions by April 2010;

2. Develop health and safety relatedvalues and related standards to supportMITIE’s corporate strategy, vision andvalues and implement across all MITIEdivisions by April 2010;

3. Deliver a health and safety leadershipprogramme to 80 operationalmanagers by April 2010;

4. Review, revise and implement three key Group health and safety relatedtraining courses to secure keycompetencies, by April 2010


ThinkWith a fleet of over 4,500 vehicles, we recognise that a comprehensive fleet management programme is an essential part of reducing occupational roadrisk. In 2008/09, a number of successful initiativeswere developed as part of our occupational roadrisk programme which is co-ordinated by JustinPatterson, Group Fleet Manager and his team,working with each MITIE business to share goodpractices. In March 2009, Justin received a ‘highlycommended’ award at the Fleet News Awardswhich recognises and rewards the best fleets,suppliers and manufacturers in the UK for theircommitment to best practice initiatives that provide efficient, safe and environmentally-friendlytransport solutions to drivers.

ManageIn conjunction with an increased move towardsavoiding travel via video conferencing, our Securitybusiness undertook a pilot programme to improvethe management of employee driver licences usingan online service provision. The pilot programme was successful in providing a robust, effective andefficient system for licence checking, thus providingan improved assurance system and a moreeffective method for identifying at-risk drivers and putting in place targeted corrective actions.

DeliverImproved communication is also critical in controlling this area of risk. Our PropertyManagement division introduced a bespoke driving handbook during the year, providing specific information on driving responsibilities,standards, safe driving and environmentalconsiderations, to over 2,500 drivers on companybusiness. A follow-up audit was carried out to ensure distribution and understanding of therequirements of the handbook.

Fleet Risk Management

“ With a fleet of over 4,500 vehicles, we recognise that a comprehensivefleet management programme is essential.”


Health and safety

25

Justin Patterson, Group Fleet Manager with some of our new eco-friendly vehicles



Health and safety leadershipdevelopment workshopsWe recognise that for effectivemanagement of health and safety tooccur throughout MITIE, ownership andengagement begins at the highest level. Responsibility for health and safety is led at main board level by the ChiefExecutive, through the management team of each business, and supported by the Group’s Head of Health, Safety & Environment and a team ofexperienced and dedicated Health, Safety and Environment professionals.

In 2008/09 we commenced the first phase of a health and safety leadershipprogramme aimed at enhancing theknowledge of MITIE’s senior managers in modern health and safety riskmanagement. This was achieved throughupdating the senior teams on changingpractices in this area, reinforcing theimportance of leaders’ core values inhealth and safety, providing a toolkit for managing risk, and identifying andpromoting a number of key behavioursassociated with leading health and safety within MITIE.

The first phase of the programme wastargeted at the operating board of each MITIE business. 117 senior managershave taken part in the workshops; actively participating and committing to an improved re-focus on riskmanagement. Our significant investment of time and resource in this area is ademonstration of our commitment to achieving continual improvement in health and safety management. The second phase of our programme will be launched during 2009 and will beaimed at operational senior managers

Health and safety trainingAt MITIE our people are our greatest asset,and as such we place the highest priority in ensuring our people have the rightcompetencies to carry out their work safely.We have developed a prioritised approachto managing health and safety risks, with significant training focus and resourcedirected at key risks to the business, such as work at height, occupational road risk,slips and trips and manual handling. Our formal training programmes in supportof these areas continued during the year,with the following training achievements:

Course 2007/2008 2008/2009

Health and Safety Leadership – 117

IOSH Managing Safely 297 390

Managing Work at Height 138 423

Occupational health promotionAs a responsible employer we recognisethat we must not only safeguard, but also actively promote, our employees’health. Which is why we provide all of ourpeople with access to a comprehensiveOccupational Health (OH) service. We’ve built on our effective healthpromotion campaign by holding a total of 13 OH clinics in 2008/09, with a 36%increase in attendance compared to theprevious year, in addition to two specifichealth awareness days during the year. Our overall investment in OH andrehabilitation has increased exponentiallyover the last three years, underlining ourcommitment to achieving much more interms of healthcare support for our peoplethan just the basic statutory requirement.

The health clinics are held at both MITIE and client sites and allow our people to be seen by an expert ConsultantOccupational Health Physician in relation to specific OH concerns. They provide a prompt and effective mechanism forensuring follow-up of health issues, in theemployee’s workplace, with effectiveresolution. We are also committed toproviding a referral and rehabilitationservice to our people following workplaceincidents and injury. In 2008/09 our uptake of employee referrals increased by 10%,thus ensuring employees receive effectivehealthcare support in a timely manner.

The health awareness days are run as part of our commitment to promote allaspects of healthy lifestyles to our people.People attending the days saw them as an ideal opportunity to receive professionalmedical advice, and to take away sound, practical advice on managing theirlifestyles. The feedback on the awarenessdays was very positive and as a result weplan to increase this offering in 2009/10.

The Royal Society for the Prevention of Accidents (RoSPA) recognitionDuring the year our Cleaning andEnvironmental Services business picked up the prestigious RoSPA Gold Award for demonstrating excellence in health and safety management. Additionally, two of our people received a specialcommendation award in 2008/09 whenacting swiftly to contain a potential spillageincident on a client’s site, caused by thirdparty activity. Their actions demonstrate our ‘positive safety culture’ and prove thatMITIE people will always go the extra mile to protect themselves and the environment.

As a result of our significant effort incontinually improving our health and safetyperformance our total reportable incidentrate for 2008/09 was 3.9, compared to anincident rate of 4.0 in 2007/08 – a 2.5%improvement in performance. However,our major reportable incident rate slightlyincreased from 0.69 in 2007/08 to 0.70 in2008/09 and we are taking steps to reducethis moving forward.

In 2008/09 we trained 390 people in the recognised IOSH course for managing health and safety.



Health and safety

27

How we performedObjective: To demonstrate continual improvement in health and safety performance


Targets 2008/09We will ensure businesses acquiredduring the previous reporting periodimplement a health and safetymanagement programme andachieve certification to therequirements of OHSAS 18001;

We will develop and roll-out a senior management health and safety training programme to 60 senior managers by April 2009;

Every business will implement a health and safety improvement plan;

We will implement a targeted riskassessment and driver trainingprogramme to reduce road trafficaccidents by April 2009.

How we performedNewly acquired businesses were fully integrated into the MITIE health and safety management system during the year. External certification was completed during April 2009.

A health and safety leadership programme was developed and implementedduring 2008/09. 117 senior managers attended the workshops during the year.

To drive performance improvement, every business developed an improvementplan via formalised health and safety objectives and targets during 2008/09.

A programme of driver risk assessment and training was implemented during theyear (incorporating 642 drivers). The results of the programme will be used to drivefurther improvements in fleet risk management during 2009/10.

1

2

3

4

Reportable incident rates

3.94.0

5.1

6.1

08/0907/0806/0705/06 08/0907/0806/0705/06

0.70.69

0.9

1.29

Key:

Achieved

Ongoing

Not achieved



CommunityMITIE’s community investmentstrategy is not simply about makingfinancial donations to causes andcharities. We pride ourselves oncommitting our time, resources, and specialist skills to supportingthe communities we serve. In returnwe create long-term relationshipswith future MITIE clients, suppliersand employees.



total community investment.

£

116,650

2007 2008 20092006

Not measured

164,544

205,115

There are so many demands on businessesfrom charities and community groups forfinancial and in-kind support and MITIEprioritises these demands by implementinga community strategy that:

– Principally provides financial and in-kindsupport for six employee nominatedcharities over a two/three year partnership;

– Supports our seven MITIE ConstructionSkills Centre schools;

– Supports other charities that are local or relevant to our business operations;

– Internationally, supports the BansangHospital Appeal Charity in Gambia;

– Operates an employee volunteerprogramme to provide pro-bono expertisefor ‘World of Work’, ‘Community Challenge’and ‘Environmental Action’ events; and

– Supports organisations, including Prince’s Trust and Business in the Communitythat promote employability opportunitiesfor disadvantaged communities.

What is our objective?To provide support to the communitieswhere we live and work.

How are we going to achieve it? 1. We will maintain our support of,

and develop MITIE’s Construction Skills Centres;

2. We will continue our financial and in-kind support for MITIE’s elected six UK Regional Charities;

3. We will carry out four employeevolunteering team projects in thecommunity by April 2010;

4. We will deliver ‘World of Work’ events in at least six schools by April 2010.



Community

29

ThinkAt the cornerstone of MITIE’s community investmentstrategy is our extensive volunteering programme. In 2008/09 professionals from every level of MITIEparticipated in seven World of Work days across the UK. The days are a great way to share ourexperiences, knowledge and offer advice to thebright young minds of the future – all while raising the profile of our business and promoting the careeropportunities with MITIE to people from a diverserange of backgrounds.

ManageOn 31 March 2009 at Brentside High School, a specialist Arts College where we provide facilities management services, volunteers from our HR, Communications and Training teamssupported Ealing and Hillingdon Education BusinessPartnership in conducting a series of mock interviewswith over 150 pupils aged 14 to 16 in preparation of their work placements.

Deliver“MITIE’s volunteers always go above and beyondthe call of duty. The pupils find their passioninfectious and they play an integral role in showingthem that there is a whole world of jobs out there for the taking”, Les Prior, Work Related LearningProject Officer for Ealing and Hillingdon EducationBusiness Partnership.

World of Work Day – Brentside High School

“ MITIE believes in giving somethingback to the many communities wework in.”

Arun Madar, Les Prior and Anita Le-Gall, Work Related Learning Project Officers for Ealing and Hillingdon Education Business Partnership



MITIE makes a significant contribution to the communities we operate in throughoutthe UK. This contribution is demonstrated by numerous initiatives including;volunteering, in-kind donations, pro-bonosupport and sponsorships. It is our charitypolicy to focus our main fundraising supporton six regional charities although we alsoprovide support for other local, nationaland international charities that are ofparticular interest to our people. MITIE alsosupports the Prince’s Trust and is a foundingmember of its Construction and BusinessServices Leadership Group.

Research underpins our own experiencesthat clear business benefits result from employee supported volunteerprogrammes. Clients increasingly expecttheir suppliers to ‘add value’ above and beyond their contracted servicecommitments, and our communityinvestment programme is clearly able to demonstrate that we do this.

Community investment MITIE’s community investment increased by £11,527 (1.95%) compared to theprevious reporting period. For clarity andaccountability purposes we have reportedseparately the value of ‘gifts in-kind’ and‘expenses and leveraged funds’. Increaseddonations to charities (21.7%) and match-funding (57.6%) respectively are the mostnotable differences reported for this period.

Community challengesAn element of our award-winning Real Apprentice scheme is a CommunityChallenge. So far participants have worked alongside community leaders,clients and MITIE managers on a number of challenges including:

– Cleaning part of the Thames River;

– Converting two rooms at a communityhub into an IT and seminar facility;

– Adding colour and a herb garden at a primary school in Tower Hamlets; and

– Repainting changing rooms atHullbridge football club in Essex.

The projects help us build long-standingand rewarding relationships with ourcommunities and their leaders.

Construction Skills CentresMITIE’s Construction Skills Centres at sevenschools throughout the UK are providingcraft skills and vocational education toapproximately 500 students each year –significantly improving their employmentprospects. We were proud to host a ‘Seeing is Believing’ visit at our Skills Centre at Castle Vale School, Birminghamin 2008. This event demonstrated the value of employer engagement andhelped to increase understanding of social issues among business leaders and educationalists.

We feel our direction echoes Business in the Community’s statement that,‘Education, employability and economicrenewal are serious issues across the UK which impact on both business and society. They need to be top of the corporate agenda – it’s never been more important’.

The ‘Seeing is Believing’ visit inspired actionby encouraging other business leaders to work together to address serious issuesfacing society such as skills shortages and low aspiration levels. Our example was commended by HRH Prince Charles at St. James’s Palace in February 2009.

Our actions speak louder than words and we’re committed to embedding our corporate responsibilities into everydayoperations, policies, procedures andpractices, while remaining true to the core MITIE value that defines the business:providing opportunities for people todevelop to their full potential.

Days spent volunteering for localcharities and community events.

MITIE’s six regional charities are:



Community

31

Castle Vale School and SpecialistPerforming Arts College (CVS), and Grace Academy, Solihull (GAS) MITIE has facilitated collaboration betweenCVS and GAS. This has led to MITIE peopleworking with teachers in highly successful‘challenge days’ at the Grace Academiesin Coventry and Solihull in 2009, helping120year 8 and 180 year 7 students respectivelyenhance their entrepreneurial skills andrenewable energy knowledge.

“Our first MITIE day was a fantastic success.A day the young people of GraceAcademy Coventry will long remember.The interaction between the MITIE teamand Grace students was very positive. I believe the students were challenged,enthused and given an insight into theworld of work with a MITIE perspective.Same again next year please!”

Steve Allen Principal, Grace Academy

Employee supported volunteeringMITIE has continued to focus its employeesupported volunteering programme withthe Skills Centre schools. The results shown in the chart come from the feedback of 100 MITIE volunteers. The evidence is compelling and clearly demonstrates the significant business benefits thatvolunteering has brought to employee skills, development and motivation levels.

%

81% 83% 86%92%

My opinion of MITIE

has improved

I believe they bring real

business benefit to MITIE

I feel proudto be

involved with the

Skills Centre

I have a better

understanding of MITIE's CR

objectives

Community investment KPIs trend analysisKPIs trend analysis Unit FY2008/09 FY2007/08 Difference %

Donations to charities etc. £ 184,018 151,154 21.7

Match-funded donations to charities* £ 21,097 13,390 57.6

Value of employee time volunteered £ 103,160 102,963 0.19

Value of gifts in-kind donated £ 49,122211,095 (4.8)

Value of expenses and leveraged funds £ 151,816

Community Affairs management costs £ 94,446 113,530 (16.8)

Total Community investment £ 603,659 592,132 1.9

Community Investment as % of profit before tax % 0.80 0.87 (8.0)*Great Ormond Street Hospital.MITIE’s community investment increased by £11,527 (1.95%) compared to the previous reporting period. For clarity and accountability purposes we have reported separately the value of ‘gifts in-kind’ and‘expenses and leveraged funds’. Increased donations to charities (21.7%) and match-funding (57.6%)respectively are the most notable differences reported for this period.

Hullbridge FCIn 2009 our Real Apprentices completedtheir Community Challenge by paintingand decorating the home and awaychanging rooms at local footbal clubHullbridge FC.



How we performed


Objective: To provide support to the communities where we live and work.

Community Strategy

(Q17)

100.

0

%

91.0

90.0 10

0.0

68.0

81.0

100.

0

90.0

91.0 10

0.0

79.0

79.0

67.0

82.0

84.0

Targets (Q18)

Community Programmes

(Q19)

Community Partnerships

(Q20)

Monitoring (Q21)


Targets 2008/09We will maintain our support and develop MITIE’s Construction Skills Centres;

We will carry out four employeevolunteering team projects in thecommunity by April 2009;

We will continue our financial and in-kind support for MITIE’s elected sixUK Regional Charities: Great OrmondStreet Hospital, London; YorkhillChildren’s Foundation, Glasgow;Naomi House Hospice, Winchester;Christie’s Cancer Hospital, Manchester;CLIC Sargent, Bristol; and Acorn’sChildren’s Hospice, Birmingham.

We will deliver ‘World of Work’ events in at least six schools by April 2009.

How we performedSupport for our Skills Centres continues. Around 460 students study vocationalcertificate and diploma courses in our Skills Centres each year. Numerous studentsfrom other collaborative schools also utilise these facilities. We hosted an inspiring‘Seeing is Believing’ visit at our Birmingham Skills Centre school in March 2008.

More than four employee volunteering team community projects were undertakenby April 2009 at schools and care homes and with our regional charity partners.

Fund-raising, volunteering and in-kind support for our six regional charities is ongoing. The total value, including Company match-funding between 1April 2008–31March 2009 was £297,774.Our overall total community investment for the same period was £603,659.

Seven ‘World of Work’ events were undertaken by April 2009 involving nearly 100 of our employee volunteers. These events provided a range of challengingactivities that developed employability skills, careers guidance, environmentalawareness and business skills for over 800 students.

1

2

3

4

CR Index 2008 – community management

We scored a maximum 100% in four of the five areas assessed, outperforming the other CR Index participants. However we under-performed compared to the other index participants in the remaining area (Q20) Community Partnerships, so we will focus our attention on improving this area during 2009/10.

Key:

Achieved

Ongoing

Not achieved


We’re the strategic outsourcing and asset management company.What does that mean?Providing everything from strategic consultancy, to facilities and project management, to world-class delivery on the ground.We work with our clients in three ways:– Strategy and consultancy– Facilities and project management– Service deliveryIn other words we:Think:Our Corporate Responsibility (CR) strategy is fully integrated into our long-term mission to responsibly deliverquality services, opportunity for our people and sustainable growth.

Manage:Our CR activities draw on professionalsfrom across the whole MITIE Group with a diverse range of skills, qualifications and experience. Together they bring a wealth of good ideas on how we canact responsibly, and deliver sustainably to our stakeholders.

Deliver: At MITIE it’s everyone’s responsibility to support and contribute to our CRobjectives; working hard to improve their surroundings, and upholding ourreputation as a world-class businessdelivering world-class services.

Group profile

Our success is built on the dedication and passion of our people supported by our sustainableand ethical business model:

Revenue

Number of employees

Profit before tax

Order book

Listed on the London Stock Exchange

MITIE Group PLCCorporate responsibility report 2009

Community

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The CO2 emissions arising from the papermanufacture and printing of this individual report have been calculated by Carbon Ready Ltd. at 197 gms. which is nearly 5% lower than our reportlast year. That’s the equivalent emissions of a smallfamily size motorcar travelling one mile. We continueto work with our suppliers in measuring and reducingour combined carbon footprint.

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If you have finished reading this report and no longerwish to retain it, please pass it on to other interestedreaders or dispose of it in your recycled paper waste.Thank you.

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MITIE Group PLC

8 Monarch CourtThe BroomsEmersons GreenBristol BS16 7FH

T: 0117 970 8800F: 0117 302 6743E: [email protected]

Corporate Responsibility Report 2009MITIE Group PLC


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MITIE Group PLC CR Report 2009