Sustainability Report 2017

In keeping with previous years, we are pleased to report on our Sustainability activities over the course of 2017. Regular readers will know that, in compiling the report, we have regard to guidelines from the Global Compact and BITC as well as ISO26000 and its 7 core subjects. CEO Commitment Statement It is my intention that we have a positive impact on all our stakeholders, that we actively engage and contribute to our local communities, that we follow and help promote best practice as outlined by global authorities, that we have a positive impact on all those we touch; that observers should, with justification, say “as a Company and as individuals, McFT does the Right Thing”. Chris Craggs, CEO The Business With a healthy economy, another year of robust growth:

• First cohort of 6 trainees on our development pathway combining classroom and practical – earning recognition through the year at a number of Awards ceremonies capped by winning a Princess Royal Training Award.

• Continuing growth in the Gulf with growing recognition of the real difference and value delivered by our approach to systematic, structured training

Scope & Limitations With our spreading geographical locations, we recognise the need to extend our reach, assimilating local cultures and needs. Whilst our status both in the supply and procurement chains is not currently such that we can exert much influence, we continue to agitate in public fora, in print and in practice to advocate responsible sustainable procurement. Governance McFarlane Telfer is a privately owned limited company, managed by the majority shareholder, Chris Craggs, alongside an experienced senior team with line responsibilities. The company has regard to all its stakeholders – suppliers, community, the industry as well as staff and families. Direction and balance is given by recourse to external and experienced business advisors across various sectors – from HR & Finance to the Environment and Health & Safety. In order to ensure awareness and compliance, officers of the company keep abreast of Legislative, Trade and Governance issues by exposure to a regular and wide range of CPD and bring back the pertinent developments for implementation by the team. The company measures itself and seeks accreditation against global standards and best practice. Business Model The company focuses on provide commercial kitchen maintenance services (planned and reactive) for corporate customers, healthcare, education, the public sector and public venues. Operations are run from Head Office in Maidenhead, Berkshire with a team of technicians based around the UK. In the Gulf, we have our regional office in Dubai – from where, during the year, we carried out work in Jeddah, Amman, Beirut, Jeddah and Muscat - as well a team in Qatar, who despite the blockade, have continued to strengthen and grow. Risks Assessment The company conducts regular strategic reviews against the PESTEL matrix, is mindful of macro-economic and political conditions (the current business model has evolved in the light of previous recessions), customer concentration, the march of technology, regulatory reform and social change – and pro-active in managing those risks. In the course of 2017, the company obtained accreditation to the UK government supported Cyber Essentials security and will continue to enhance its competence in this area. Dummy exercises were also conducted to test Business Continuity plans – successfully proving generator back-up to continue operating phones and IT systems as well as downloading and restoring the entire ERP system.

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Labour Practices The company continues to be a member of the Living Wage Foundation and works to ensure benefits are among the best in their sector. (See McFT People website for current benefits.) Human Rights The company continues to operate in accordance with the principles of SA8000. MCFT had initial discussions with the UK chapter of the Global Compact with a view to joining but GC is not yet in a position to cater to SMEs. Nevertheless, the company is committed to the Sustainable Development Goals, in particular:

3 Good health and wellbeing – whilst not subject to the diseases and afflictions of the developing

world, this is still something we need to improve on.

4 Quality Education – see below not only for the work we carry out in-house but for the outreach

to schools and universities.

5 Gender Equality – we are very proud to have female technicians – almost uniquely in our

industry –and are very keen to develop more.

8 Decent Work and Economic Growth; we believe our rigorously debated strategies and values

will provide the basis for a sustainable, principled business.

9 Industry, innovation, infrastructure; allied to the point above and consistent with our ISO

accreditations, we constantly seek improvement – from all parts of the business.

11, 12, 13: sustainable cities, responsible consumption, action on climate change – see below for

report on our environmental actions.

We also engaged with Business in the Community during the course of the year to see how we might help

re-start their recognition and support for SME’s. For the moment their priorities are elsewhere.

Training & Development The company was a finalist and winner in a number of externally verified awards during the year, none more prestigious than to be one of only 40 recipients of a Princess Royal Training Award.

We continue to be members of the 5% Club - in fact far exceeding the minimum requirement, not least when we started our first cohort of 6 trainees in January 2017; these undertake a mix of external and internal training, with classroom lectures as well as practical exercises at one of our Client sites – benefiting from the mentoring of a senior engineer allocated to oversee their development and progress. And we continued our recognition for those senior engineers with another 6 qualified to EngTech – still unique in our industry.

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The office team weren’t left behind – three of the team on the service desk getting their Business Administration NVQ level 3 awards. Senior execs attend a wide range of CPD events, keeping abreast of developments in all sorts of areas – and particularly enjoy taking groups of interns and grads to these events, including the Monday evening Henley Business School sessions on Entrepreneurship – with Chris invited to contribute to a panel on Business Intelligence. Those interns and graduates came from US, UK and Dutch universities

in 2017 – with return visits from the senior team to give guest lectures and build relationships. We were also delighted to welcome school students on work experience – a programme which works well for all parties and we will look to develop and extend. Less successfully, Chris had signed up as an Enterprise Advisor – a well-intentioned

scheme to pair senior managers and business owners with schools in order to help with strategizing a more aligned careers education programme. Without resources for the schools and with no buy-in from non-careers teachers, for the moment, this is not a programme which is going anywhere. Watch this space for 2018 developments… International We believe one of the key opportunities in this now-international business is to provide opportunities for multi-cultural awareness – simply put, to break down barriers and to open minds. We are delighted that this opportunity extends from those who have developed in the UK going out to help create and run businesses in the Middle East to the annual inter-company social built around the Dubai 7’s – where there are now real exchanges of common experiences – Alex and Raymond swapping stories on the joys of ice machines – to the change to take a group on motorbikes – including a couple of complete novices - from Saigon to Hanoi along the Ho Chi Minh trail in Vietnam. Beautiful country, great people – life-enhancing experience. And during the year, Dan Geisel attended CFESA and IFMA events in Texas.

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Health and Safety OHSAS 18001 Our over-arching aim is for all our people to regard Health and Safety as a Good Thing – getting home in the same condition as they came to work. Regrettably, the authorities have contributed to contempt for ‘Elf & Safety gone mad” – and the current HSE structure makes no effort to assist – it’s strictly punitive. It is therefore our mission to have all our people see Health & Safety as a Positive, inseparable from carrying out a professional job – and a great differentiator when it comes to customer perception and evaluation. Risk assessment: Road safety: we identify this as our single biggest risk area; to that end, we were one of first van fleets in FORS – then the Freight Operators Recognition Scheme – and are so far, the Trade fleet to have an approved Vulnerable Road Users training programme. Chris sits on the General Standards and Light Commercial Vehicle steering groups – working towards enhanced and practical standards for vans.

Further acknowledgement of our Fleet Management came in December when Louise was runner-up in the What Van Fleet Manager of the Year Award.

Utilities: Our inherent trade activities working with gas, electricity, water and refrigeration systems all involve significant risks which we ensure are covered with our compliance training (records available to all via Human Focus) as well as by regular field assessments of our team. Other significant risks: include working at height, manual handling, hot works and lone working as well as the nature of the kitchen environments we work in – slips, trips, burns, fumes, congested work areas. We train, review and field assess our people to make sure all are mindful. Training: All staff have comprehensive induction with a variety of introductory e-learning modules; all engineers take the BSC Risk Assessment and Approved Person First Aid. The intention is that ownership of Safety in the Work Place should belong with the individual – empowered to assess and respond according to guidelines and their own informed judgement. Operations: all tasks are preceded by a recorded dynamic risk assessment which is submitted in advance of work starting – we believe it’s the most comprehensive and immediate solution in our industry. Audit: We undertake quarterly site audits, spending a day in the field with H & S advisor, Company Director and technician reviewing colleagues. The Process is always well received; findings are documented, circulated and actioned. We can never be complacent – but the circumstantial behavioural evidence provided by our declining driving misdemeanours as well as feedback from customers give us hope that we are making significant progress.

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The Environment ISO14001 In line with our ISO accreditation and best practice, we regularly review our significant impacts: Emissions We make efforts to control our emissions - from selection of vehicles,

reporting and reducing consumption through driver feedback, measuring and controlling our utilities consumption which, while up overall, shows a downward trend proportional to our increasing numbers.

With the business growth – and expansion in geographical coverage – some costs inevitably go up (larger

premises, initially not fully occupied, mileage increases): we monitor, investigate and, where appropriate,

initiate remedial actions.

Waste We continue to monitor and account for our handling of waste, including that handled on behalf of customers – ensuring that WEEE is disposed of and accounted for in line with regulation. Fridges and freezers are properly recorded and accounted for – and we continue to be accredited to Refcom Elite – audited and compliant record-keeping on the safe handling and disposal of refrigerant. Trees And when we’ve controlled as much as we can, we work our carbon emissions in strict accordance with Carbon Trust rules – and then we ask the Heart of England Forest to plant trees to capture that carbon.

33

33.5

34

34.5

35

35.5

36

2013 2014 2015 2016 2017

Fuel Consumption Ave.

MPG

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Fair Operating Practices We have continued to develop our Customer Portal – Iris – one key element of which is the visibility of all jobs and their progress – but also the cumulative performance statistics (Key Performance Indicators) on response. . All complaints are brought to the attention of senior management, logged, investigated and formally closed out when completed.

Community Investment and Development The business looks to have a positive impact on all stakeholders – and none more than the communities we live, work in and serve; we are mindful of local needs, survey our own teams for causes close to them and seek to assist those less well off than we are. Young People and Careers Starting with support and opportunities for young people, we carried out the following activities:

University Careers: Southampton, Bournemouth, NHTV (Breda Netherlands x 2)

Schools Careers Fairs: Eton College, Ranelagh Work Experience: one person in the office team for a

week, inducted and observing the operation and delivering a useful project: Eton College, Windsor Boys

NCS The Challenge: 3 groups of 8-10 students in year 11 & 12 visited the office and spent time in all departments

And we provided work experience for our young adult friends at Parkside, whilst MD Mark Brooker also delivered a guest lecture on our world of work.

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We also ran a mini-practical-assessment day for 30 Year 10 students from Windsor Boys School over at East Berkshire College – similar tests which we set our own trainees when they start – and the same team of assessors – technical, HR and our MD, Mark Brooker. Practical tests, team-working and practice at interviews – feedback from the boys afterwards was great for the assessors. Projects

Aware that we recover equipment from our customers which, although no longer fit for their purposes, still has plenty of life, we’ve continued our re-homing scheme – not least in helping local sports teams.

We enjoy leveraging our contacts, experience and the hard work of our teams to make the very most of our projects – if they were bought through the usual challenges, they would cost many times more. Two main projects in 2017

More for the Magpies Nest… With promotion to the National League and ground changes which resulted, there was a sudden need for more food and beverage equipment – equipping the new T-Bar 3 with another fine Lincat snack suite – and plenty of chilled storage for drinks and food in the new Alan Devonshire Suite. (Left in LH pic above.) Smarden Sports Association And then a change to help a village Sports Association –Smarden in Kent upgrading a 40 year old and very tired cricked pavilion with a cracking brand multi-sport facility – and, of course, somewhere to prepare match teas.

Yesterday was brilliant. Your team did an

amazing job and the pupils who attended

all took some new skills and confidence

away with them.

Jo Lane, Head of Careers, Windsor Boys

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Thank you to Waine and Danny who did the installations. And we were pleased to help Parkside with some necessary equipment for their ongoing operations.

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Fund Raising & Help for Charity Shouts We record our customer feedback (see Fair Operating Practice above) and reward the recipients with a cash contribution towards the overall CSR – and very pleased to note favourable feedback up over 50% year-on-year – all for good causes – see list on financial report below.

Challenges Operations Director Alistair Collins had an itch to scratch – Land’s-End to John-of-Groats no less. Successfully completed – and with company, friends and supplier assistance, raised a hugely impressive £10k for our friends at the Prostate Project. Itch fine, now to deal with the damage inflicted in the cause! Moonwalk The indefatigable Rosie, with the Treasured Chest Team and the assistance of MCFT interns (although of dubious Quiz Ability – here with wooden spoon), raised over £2500 for Breast Cancer Research. Support And we continue our support for local causes – Maidenhead Waterways bringing back the flow of water to the town centre – and the Heritage Centre, not least because of it’s association with our neighbours over the park, White Waltham Airfield. Industry

559 3 x 5 £ 2795

92 I-Shouts £ 920

£ 3715

Diabetes - the beneficiaries in July

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We’ve changed tack on industry support and “giving back” this year – with a greater involvement in organisations raising and monitoring standards across industry.

Chris has been honoured to be on the judging panel for two eminent business awards – the International Quality Awards and the British Quality Foundation UK Excellence Awards.

In the Gulf, Regional Director George Roberts-Smith, UK-qualified Recommended Quality Assessor, joined the panel of the Dubai Quality Awards for their annual assessment round – no small commitment – well in excess of a weeks’ worth of voluntary time in audit and report. We’ve sponsored the International Special Interest Group of the British Institute of Facilities Management as well, more parochially, the North West Home Counties group of the Chartered Institute of Building Services Engineers. And we continue our support for Hospitality Action. The year would not be complete without the Christmas Jumper Raffle, which this year, thanks to both our suppliers and our staff broke all records, raising well over £1000 for three causes close to the heart of our lead organiser, Alistair Collins. Finally, we are very proud to say that our team continues its payroll charitable giving – and contributes every month to the overall CSR fund – allowing us, in conjunction with money raising and company donations to support all these fantastic causes. Many thanks to all. And special thanks to those on the CSR committee who’ve given this aspect structure and process this year – Paul Temple, Matt Alderton, Dan Pryor, and Nessa Coker. The Committee meets every two months. (We have, in 2018, introduced an annual Social Impact Review – a summary will be included in future reports.)

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CSR Accounts 2017

Project, Equipment and Service Support

Smarden Sports Association £ 7,876.42

Parkside (Aldershot & Dist Mencap) £ 556.30

Foodshare Maidenhead £ 273.65

Maidenhead United £ 6,718.00

Total £ 15,424.37

Sponsorship

Support Alistair Collins' "LE-JoG" £ 3,340.13

Clink Restaurant Christmas Raffle £ 15.99

Total £ 3,356.12

"Shouts"

Jan - Thames Valley Adventure Playground £ 425.00

Feb - Tiggywinkles £ 325.00

Mar - Friends of the Elderly £ 400.00

Apr - Maidenhead Foodbank £ 420.00

May - CALM £ 305.00

June - NCS £ 310.00

July - Diabetes UK – Berkshire East UK Group £ 420.00

Aug - Younger people with Dementia £ 210.00

Sept - Thomley.org.uk £ 190.00

Oct - British Heart Foundation £ 300.00

Nov - Movember £ 235.00

Dec - Shelter £ 175.00

Total £ 3,715.00

The Environment

Maidenhead Waterways £ 400.00

Heart of England - Offsetting CO2 Emissions £ 5,558.62

Total £ 5,958.62

Total Expenditure £ 28,454.11

of which, employee salary deductions £ 1,548.47

Company £ 26,905.64

Employee fund-raising

Jeans for Genes £ 17.58

Save the Children £ 50.47

Xmas Raffle : Alzheimers, Homeless, Downs £ 1,147.00

Total £ 1,215.05