SECTION 172(1) STATEMENT
In line with Section 172(1) of the Companies Act 2006, the Directors of the Company must act in a way which they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole, and in doing so must have regard to a number of other key matters. There must therefore be a careful balance of sometimes competing interests of different stakeholder groups, and it is the duty of the Directors to act in such a way that should promote the long-term success of the Company as a whole.
Likely long-term consequences of decisions (Section 172(1)(a))
Given the nature of the business, the Board takes a long-term approach to its decision-making to ensure that the Company is able to deliver its strategy of creating long-term sustainable value for all of our stakeholders by developing thriving communities with high quality homes that provide a better way to live.
There has been considerable emphasis on resource efficiency, use of sustainable materials, placemaking and biodiversity as these are aspects that are key to creating a long-term sustainable business and value to our stakeholders. See pages 28 to 55 of the Strategic Report for an overview of the sustainability practices of the Group.
Effective risk management systems are also imperative to understanding the likely long-term consequences of actions. The Board plays a key role in reviewing the Company’s approach to risk, including an assessment of its emerging and principal risks. See pages 66 to 77 of the Strategic Report for a description of the identified risks, procedures for identifying risks and an explanation of how these are being controlled or mitigated.
At least annually, the Board conducts an assessment of the prospects of the Company, taking into consideration the Company’s current position and principal risks. This year the Directors selected a three year timeframe over which to assess the viability of the Company. The Viability Statement can be found on page 78 of the Strategic Report.
Maintaining a reputation for high standards of business conduct (Section 172(1)(e))
The Company has in place a Code of Conduct which acts as a guide for employees to doing the right thing in business, focusing on the values and behaviours deemed most important for the Group and seeking to guide employees in their good judgement to act in the Redrow way. The Company also has well-embedded policies in place which assist with ensuring high standards of conduct, including in respect of the following key areas: Health, Safety and Environment; Whistleblowing; Anti-Bribery and Corruption; Human Rights; and Modern Slavery. The Environmental, Social and Governance Disclosures section of the Directors’ Report, from pages 156 to 163, provides further insight into measures put in place by the Board to assist with maintaining a reputation for high business conduct standards.
Acting fairly between members of the Company (Section 172(1)(f))
The Directors have regard to the need to act fairly between members of the Company, aiming to understand their views and act in their best interests. The ownership of the Company follows a ‘one share, one vote’ structure, which assists with promoting parity in shareholder rights. The Board ensures that there is fair and equal dissemination of information to all shareholders and has a dedicated investors section of the Company’s website which is available to all shareholders. This provides easy access to RNS announcements, key financial dates, dividend details and reports and publications. In the ordinary course, and outside of the prohibition on meeting attendance previously in force by the Government due to the COVID-19 pandemic, all members are invited to attend the Annual General Meetings of the Company, offering an opportunity for members of any size shareholding to have a conversation with, and ask questions to, each of the Directors. For any Annual General Meetings where in-person attendance is prohibited due to Government regulation, all shareholders will be offered the opportunity to submit questions to the Board ahead of the meeting with answers being made available to them.
Having regard to specific stakeholder groups (Section 172(1)(b) to Section 172(1)(d))
Pages 84 to 89 identify the priorities of our key stakeholders and display how the Company has engaged with them during the year and the impact they have had on Board decisions.
SECTION 172(1) DUTY IN ACTION
| Decision |
| Development of the new Equality, Diversity and Inclusion (“ED&I”) agenda, which saw the introduction of the new Equality, Diversity and Inclusion policy (“ED&I Policy”) and programme of initiatives to communicate and drive forward the agenda. |
| Context |
| During the year, the Board focused on the importance of ED&I to the business and set to move forward the ED&I agenda. This involved releasing the new ED&I Policy and implementing a programme of key initiatives to embed this policy and highlight the importance of ED&I within Redrow, demonstrating the Board’s strong commitment to continuously promoting ED&I throughout the business. |
| Stakeholder considerations |
|
• Employees - will benefit from working in an inclusive and respectful environment, supported by inclusive leaders, which will provide people from all types of backgrounds with the opportunities to develop and flourish. • Investors - will benefit from a more productive, engaged and innovative workforce leading to better problem solving and decision-making. • Suppliers - will benefit from the sustained culture of ED&I as the ED&I Policy applies to preferred supplier agency workers, contractors and individuals working for and on behalf of Redrow. The ED&I Policy was shared with subcontractors, preferred supplier agencies, consultants and suppliers to ensure that the principles were also embedded by our third party partners and provided them with an opportunity to offer feedback, allowing us to continue to work together and improve our working relationships. • Community and Environment - will benefit from a company whose employees truly understand the value of ED&I through the awareness and training programme put in place as part of driving forward the ED&I agenda. • Government and Regulators - compliance with our duties under the Equality Act 2010 by eliminating discrimination, harassment and victimisation, promoting equality of opportunity and fostering good relations between people from different groups and going beyond compliance by embedding ED&I into everything we do. • Customers - will benefit from conducting business with a company which understands and supports the unique and diverse needs of customers and their communities, thereby improving the customer experience. |
| Non-stakeholder considerations |
|
• Long-term consequences – embedding a culture of inclusion and equality will have a positive impact on the long-term success of the Company as it will make way for a more diverse workforce which will lead to a more creative and innovative way of thinking and working. • Maintenance of high standards of business conduct – embedding this initiative within the Group’s Policy and Procedures manuals will ensure that the policy governing the ED&I agenda remains an active framework kept under review by the Company. • Acting fairly between members of the Company – information relating to this initiative was released to all members at the same time with the publication of this Annual Report. |
| Strategic actions supported by the Board |
|
• Approved the communications programme to raise awareness of the ED&I Policy throughout the business. • Ensured that the ED&I training programme was rolled out across the business. • Approved specific diversity targets (focusing on females and people from BAME backgrounds) within the Company’s recent recruitment campaign for new graduate employees. • Ensured that the ED&I Policy was shared with sub-contractors and third party partners to ensure they actively supported the Group’s agenda. |
| Expected outcomes |
|
• Increased diversity at senior management levels as a result of a more diverse pipeline which will allow for a variety of different perspectives to be heard at all levels across the business. • A high performing business with strong competitive advantages as a result of a cognitively diverse workforce being faster at problem solving due to reduced conformation pressures. • Embedment of a culture of inclusion and equality whereby the workforce is supported by inclusive leaders who actively value difference. • A more engaged and innovative workforce which should result in increased creativity and productivity. |
| Link to strategy and culture |
| Valuing People is a vital part of the Company’s strategy and the initiative demonstrates that ED&I is championed by leadership and helps to embed a culture that is inclusive to all, actively values difference and ensures everyone is treated fairly. |