Our Sustainability Priorities: Creating long-term value through collaboration
We have long recognised that our ability to create long-term value is inextricably linked to how we manage the risks and opportunities that arise from Environmental-Social-Governance (ESG) factors.
This year we have made a step-change in how we report on these issues – improving our transparency and increasing our disclosures. In this report, we discuss our management approach and publish the KPIs by which we measure our material ESG issues (see pages 8 to 15 for our ESG Scorecard).
Our ESG improvement strategy is the responsibility of our Placemaking and Sustainability Committee, and is one of its core areas of focus. The Committee is led at Executive level by our newly created post of Group Communities Director.
Our strategic commitments: Building Responsibly, Thriving Communities and Valuing People help us manage ESG risks and drive long-term sustainable value for our stakeholders. As a business, our aim is to operate in a responsible way, and to create value across a defined range of benchmarks that will ensure we benefit the communities we work in; the landscapes that we develop and the people who help us deliver our new communities.
Our Material Issues
Through ongoing engagement with our stakeholders we identify the issues which matter most to them, along with understanding the factors that influence their decisions. This enables us to consider both the potential impacts of sustainability issues on the business - how they may impact our value-chain, as well as how our activities have the potential to outwardly influence wider sustainability trends.
In 2022 we will undertake a strategic ESG review and positioning where we will re-assess our material issues and determine their priority. This will be informed by feedback from our stakeholders and undertaken in-line with the Materiality Principle. We shall simultaneously explore which of the many reporting standards and frameworks are the best fit for our approach. The adoption of a reporting framework will both guide our decision-making and inform our approach to ESG governance.
As of 2021, Redrow received an MSCI ESG Rating of AA.
Business Principle
Creating better places to live
Material Issues
- Sustainable Communities/the impact the development has on the community
- Environmental homes – product design & lifecycle management
- Land use
- Biodiversity
Objectives
- Community Engagement
- Customer focused design
- Placemaking
- Healthy lifestyles
- Community infrastructure
- Nature for People
KPI (see scorecard overleaf unless stated)
- HBF survey: recommend a friend
- Net promoter score
- Social value contributions1
- Biodiversity Net Gain2
- Post completion Redrow 8 reviews3
- Community Collaboration training4
Business Principle
Working safely and considerately
Putting our customers first
Managing our resources efficiently
Material Issues
- The health and safety of employees, customers and contractors
- Environmental homes – product design & lifecycle management
- Whole-life carbon and materials sourcing
- Product Quality
- Climate change – carbon reduction and climate adaptation/business resilience
- Resource efficiency & waste
Objectives
- Safety
- Service excellence
- Responsible sourcing
- Quality and productivity
- Environmental Impact
KPI (see scorecard overleaf unless stated)
- Number of notifiable accidents
- HBF survey: recommend a friend
- Net promoter score
- Average Trustpilot Review score
- Supply chain – Modern Slavery
- Supply chain – payments on time
- Average Considerate Constructors Scheme score
- NHBC Construction Quality Review score
- Average Reportable Items from the NHBC
- Group GHG emissions scope 1 & 2
- Total GHG emissions/100m2 build
- Operational energy use
- Embodied carbon5
- % of electricity procured from renewable sources
- Tonnes of construction waste/100m2
- % of waste diverted from landfill
- Water use/100m2 build
- % of timber certified
- Average SAP rating
- Average EPC rating
Business Principle
Valuing and developing our people
Inspiring the next generation to build
Material Issues
- Business Ethics; bribery and corruption
- Remuneration policy
- Human capital and the skills shortage
- Human rights in the supply chain
- The health and safety of employees, customers and contractors
- The wellbeing of employees & customers
Objectives
- Training and development
- Colleague & partner advocacy
- Wellbeing & inclusiveness
- Education partners
- Positive impact on communities
- Create life chances
KPI (see scorecard overleaf unless stated)
- Overall Employee Engagement score
- Employee turnover rate
- Number of internal promotions
- % of direct employees that are trainees
- Number of training days delivered
- Average number of training days/person
- % of Black, Asian and Minority Ethnic (BAME)
- Diversity and inclusion - % of female employees - overall and by three management categories
All of the FY2021 ESG data contained in this scorecard has been assured at a limited level of assurance according to ISAE3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information, to evaluate the veracity of the specific KPIs.
This has been undertaken by SGS United Kingdom Ltd in accordance with their Sustainability Report Assurance protocols, including the Global Reporting Initiative (GRI) Principles for Report Quality. The full Assurance Statement can be found on our corporate website: investors.redrowplc.co.uk/key-non-financials.
Our Targets
Our performance against the targets shown in the scorecard is fully disclosed on our website, along with the full suite of targets - redrowplc.co.uk/sustainability/our-commitments.
| KPI Theme | KPI Data Point | KPI Definition | Unit Reported | 12 Month Period This Data Relates To (for FY2021) | FY2021 | FY2020 | FY2019 | Target | Read More |
Health & Safety  | Number of notifiable accidents in financial year/Average number of live sites | RIDDOR notifiable accidents that result in an injury across the Redrow Group and sites divided by average number of live sites (both in the Redrow FY). | (No.) | 27 June 2020 to 25 June 2021 | 0.26* | 0.38 | 0.36 | Work towards becoming incident and injury free through a 10% year-on-year reduction (AIR) against 2017 baseline | Page 42 |
| Customer | Net promoter score (NPS) | NPS is a benchmark score that asks customers how likely they are to recommend a builder to a friend on a scale of 0-10. | (%) | 1 October 2019 to 30 September 2020 (results published annually for this period in following March) | 50.1%* | 52.3% | 50.3% | Achieve a minimum NPS score of 54% | N/A |
| HBF survey 8 week recommend - customers that would recommend Redrow to a friend | This metric is the percentage of customers that have moved into their home between 8-20 weeks ago that state they would recommend their builder to a friend in the HBF survey. | (%) | 1 October 2019 to 30 September 2020 (results published annually for this period in following March) | 92.6%* | 91.9% | 90.9% | Consistently deliver a 94%+ customer satisfaction; recommend to a friend (ongoing) | Page 45 | |
| Average Trustpilot Review Score | This score is a mean average of every review received on Redrow’s Trustpilot page during the reporting period. When reviewing Redrow on Trustpilot, customers choose a rating between 1 – 5 stars. | (No. 1-5 stars) | 29 June 2020 to 27 June 2021 | 4.54* | 4.31 | 3.72 | Excellent (>4.3) | Page 45 | |
| Build Quality and Considerate Construction | Average Considerate Constructors Scheme (CCS) score | This KPI demonstrates an average score, out of 50, from all visits carried out by the CCS in the reporting period. 1 | (No. out of 50) | 29 June 2020 to 27 June 2021 | 36.67* | 35.09 | 35.05 | Achieve a minimum CCS score of 38/50 on all sites in FY2022 | Pages 40 to 41 |
| NHBC Construction Quality Review (CQR) average score per inspection | The average score (1-6) taken from all scored areas within a CQR report. This KPI demonstrates the average score, out of 6, from all CQR visits carried out by the NHBC in the reporting period. The CQR visits are only applicable to sites that are registered with the NHBC for Building Control and Warranty. 2 | (No. 1-6) | 29 June 2020 to 27 June 2021 | 4.36* | 4.13 | 3.91 | Achieve a score of 4.5/6 in FY2022 | Pages 40 to 41 | |
| Average Reportable Items (RIs) from the NHBC | The Average RI is the number of all of the RIs received within the period divided by the number of inspections carried out on all sites registered with the NHBC. (An NHBC reportable item (RI) is any contravention of the NHBC technical standards or building regulations recorded at any key build stage or frequency visit). 3 | (No.) | 1 July 2020 to 30 June 2021 | 0.22* | 0.20 | 0.20 | N/A | Pages 40 to 41 | |
Employees  | Overall engagement score | Overall engagement score taken from annual survey report provided by Employee Feedback Ltd. 4 | (%) | Measurement taken from annual employee survey carried out February/March 2021 | 82%* | 81% | 81% | N/A | Pages 57 to 58 |
| Employee turnover rate | % of employees who leave the business in the year through voluntary attrition (resignation or retirement). | (%) | 29 June 2020 to 27 June 2021 | 14.3%* | 15.3% | 17.9% | N/A | N/A | |
| Number of internal promotions | Number of internal promotions during the financial year. | (No.) | 29 June 2020 to 27 June 2021 | 211* | 253 | 220 | N/A | Page 58 | |
| % of direct employees that are trainees | % of employees who are apprentices, graduate trainees or following a training programme, academic or professional qualification. | (%) | Measurement taken as at year end date of 27 June 2021 | 14.5%* | 14.0% | 14.5% | 15% of our employees being trainees year-on-year | Page 5 | |
| Total number of training days delivered AND | Total number of training hours delivered as face to face, e-learning or online seminars divided by six hours to give a number of training days. | (No. of days) | 29 June 2020 to 27 June 2021 | 4,083 * 5 | 5,925 | 7,195 | N/A | Page 58 | |
| Average number of training days per person | The average figure is obtained by dividing this by the average number of employees in the business during the year. | 1.81* | 2.53 | 3.01 | Invest in at least three training days per employee per year and work towards 80% of our in-house training being accredited | N/A | |||
| Diversity and Inclusion | % Black, Asian and Minority Ethnic (BAME) | % of those self-reporting who identify as BAME.⁶ | (%) | Measurement taken as at year end date of 27 June 2021 | 5.14* | 5.60% | 5.01% | N/A | Page 121 |
| % Female employees - overall and by management category: | % male/female employees overall. | (%) | Measurement taken as at year end date of 27 June 2021 | 34.06%* female | 33.90% female | 34.87% female | N/A | Page 121 | |
| Main Board (includes Non-Executives) | % male/female employees on Main Board. | 28.57%* female | 43% female | 33% female | Pages 102 | ||||
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| Executive Board | % male/female employees on Executive Committee. | 25%* female | 22% female | 22% female | Page 121 | ||||
| Executive Board Reportees | % male/female employees as Direct Reportees to Executive Committee (excluding PAs and those reporting to CEO who are also on the Executive Committee). | 27.27%* female | 33% female | 34% female | Page 121 | ||||
| Energy and Carbon | Group GHG emissions Scope 1 and 2 | Total Scope 1 and 2 GHG emissions from our operations (sites and offices). | Tonnes of CO₂e | 1 July 2020 to 30 June 2021 | 14,680* | 15,504* | 14,462* | N/A | Pages 157 to 158 |
| Total GHG emissions per 100m² of build | GHG emissions normalised per 100m² of build. | Tonnes of CO₂e/100m² | 1 July 2020 to 30 June 2021 | 2.84* | 3.01* | 2.42* | Reduce the carbon intensity of our direct operations by 10% by the end of FY2022 against 2017 baseline | Pages 157 to 158 | |
| Operational energy use | Total energy and fuel consumption used from sites and offices. | kWh | 1 July 2020 to 30 June 2021 | 64,294,472* | 37,032,239 | N/A | N/A | N/A | |
| % of electricity procured from renewable sources | Percentage of electricity used in our operations that is sourced from renewable sources. | (%) | 1 July 2020 to 30 June 2021 | 3.30%* | N/A | N/A | N/A | Page 47 | |
| Sustainable Homes | Average SAP rating | The average SAP rating reported is the mean value at design stage for the Group Core Portfolio. This is not the as built SAP rating recorded on completion, and includes homes in the portfolio recorded at year-end for operations in both England and Wales. 7 | (No. 1-100) | Representing the Group Portfolio at the end of June 2021 | 84* | 84 8 | 84 | N/A | N/A |
| Average EPC rating | The average EPC reported is the mode value at design stage for the Group Core Portfolio. This is not the as built EPC recorded on completion, and includes homes in the portfolio recorded at year-end for operations in both England and Wales. 9 | (A-G rating) | Representing the Group Portfolio at the end of June 2021 | B* | B | B | N/A | N/A | |
| Resource efficiency | Tonnes of construction waste per 100m² build | Construction waste produced per 100m² of build. | Tonnes of waste/100m² | 1 July 2020 to 30 June 2021 | 8.11* | 8.97* | 10.15* | Reduce construction waste intensity by 10% by the end of FY2022 against 2017 baseline | Pages 52 |
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| % of waste diverted from landfill | The % of waste which is diverted from landfill. This includes refuse derived fuel (RDF) as well as recycling. | (%) | 1 July 2020 to 30 June 2021 | 97.65%* | 97.4%* | 97.65%* | N/A | Pages 5 | |
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| Water use per 100m² build | Cubic metres of water used in our sites and offices per 100m² of build. | m³ per 100m² build | 1 July 2020 to 30 June 2021 | 33.06* | 18.50 | 12.47 | Reduce the water intensity of our direct operations by 5% by the end of FY2022 against 2017 baseline | Pages 49 | |
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| % of timber certified | % of timber responsibly sourced and credibly certified to FSC or PEFC.¹⁰ | (%) | 1 January 2020 to 31 December 2020 | 99.64%* | 99.90% | 99.92% | N/A | Page 52 to 53 | |
| Supply Chain – Payments on time 11 | Average time taken to pay invoices | The average time taken to pay supplier invoices and subcontractor applications from the date of receipt. | (days) | 27 June 2020 to 25 June 2021 | 23.5* | 25.5 | 26.5 | N/A | N/A |
| Invoices paid within 30 days | Percentage of invoices and applications paid during the reporting period within 30 days. | (%) | 27 June 2020 to 25 June 2021 | 79.1%* | 76.3% | 73.7% | N/A | N/A | |
| Supply Chain – Modern Slavery | % of material suppliers and manufacturers who have actively confirmed compliance with the Modern Slavery legislation and Redrow Code of Conduct | All suppliers and manufacturers must submit a detailed Supplier Appraisal Assessment for approval as part of our pre-tender qualification process. We have updated the appraisal forms to track the country of manufacture allowing us to identify materials supplied by manufacturers with a high risk profile. | (%) | 29 June 2020 to 27 June 2021 | 100%* | 100% | 100% | N/A | Pages 53 |
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| % of ‘temporary labour suppliers’ who have actively confirmed compliance with the Modern Slavery legislation and Redrow Code of Conduct | All suppliers of agency/temporary labour staff working on our sites are monitored for compliance by an external organisation named Datum RPO. | (%) | 29 June 2020 to 27 June 2021 | 100%* | 100% | N/A | N/A | Pages 53 | |
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* Figure verified by SGS.
1. Covers 100% of Redrow sites. A site is registered with the CCS once Redrow take over as Principal Contractor.
2. This covers 74 NHBC site inspection reports received from the NHBC in the reporting period. Excludes Greater London sites and some in the North West as these are not registered with the NHBC but with LABC for which the same data is not available.
3. This covers only sites registered with the NHBC. Excludes Greater London sites and some in the North West as these are not registered with the NHBC but with LABC for which the same data is not available.
4. The questions in the engagement index measure two factors important to employee engagement - are employees capable of high levels of performance and are they willing / keen to deliver? Similar sets of questions are used to determine other organisations’ engagement indices. The survey covered those employees who are paid monthly representing 81% of the total workforce.
5. The reason for the fall in number of training days compared to 2020 (5,925 days) is that in 2021 there was no face to face training and all sessions were e-learning or seminars which tend to be shorter in duration. In 2020 it was primarily face to face training.
6. Definition of BAME taken from Chartered Institute of Personnel and Development, and does not include those identifying as mixed heritage. Reporting must include disclosure of % employees who have self-reported. This is based on 88% of employees who have self-reported ethnicity information.
7. The Standard Assessment Procedure (SAP) is the methodology used by the Government to assess and compare the energy and environmental performance of dwellings. SAP quantifies a dwelling’s performance in terms of energy use per unit floor area, a fuel-cost-based energy efficiency rating (the SAP rating) and emissions of CO2 (the Environmental Impact Rating). The SAP rating is expressed on a scale of 1 to 100, the higher the number the lower the running costs. Source: https://www.bre.co.uk/filelibrary/SAP/2012/SAP-2012_9-92.pdf.
8. For FY2020 and FY2019 the SAP/EPC ratings have been reported as the design English SAP results reflecting the core Group portfolio.
9. Energy performance certificates (EPCs) set out the energy efficiency rating of a building. They are required when buildings are built, sold or rented. Buildings are rated from A to G, with A representing a very efficient building and G a very inefficient building. Source: https://www.gov.uk/buy-sell-your-home/energy-performance-certificates.
10. Prior to FY2021, our timber was verified as part of the WWF network for responsible timber and includes legal timber. In FY2021, the verified figure covers only timber certified to FSC or PEFC.
11. All ‘Payments on time’ KPIs cover 100% of Suppliers and Subcontractors.