Risks and Opportunities
Understanding and addressing our sustainability risks and opportunities helps us operate as a successful and responsible business. Our key sustainability risks, and how we address each, are outlined in the table below. Further information on our corporate risks and opportunities can be found in the Annual Report.
Key Risks
| Risks | Financial impact | Management approach |
| Poor environmental efficiency during our operations | Higher operating costs due to increased energy use, water consumption and waste production |
Performance targets in place, including:
Regular site sustainability assessments undertaken |
| Pollution incidents on site |
Reputational damage and fines |
Regular site sustainability assessments undertaken |
| Increased frequency of extreme weather events such as flooding, water shortages and high winds |
Delays to the build programme |
Mitigating our impact on climate change Increase awareness of risks and adapt our production approach to minimise the risks |
| Disruption to the supply of materials or services due to extreme weather events |
Costs of finding alternative suppliers and/or delays to the build programme |
Integrating an assessment of sustainability into our selection process |
| Poor site management, including Health & Safety |
Reputational damage and higher operating costs |
Communicating our sustainability requirements to all contractors Having dedicated commercial teams who are able to monitor and respond to material availability |
| Increasing legislative/regulatory environmental requirements |
Increase in cost of building homes Increase in research and development costs |
Engaging with policy makers and keeping up-to-date with regulatory proposals and changes Provide consultation responses |
| Negative impact on local communities |
Reduced likelihood of gaining planning permission within the same area and poor reputation with potential customers |
Consultation with the community early in the planning stages so they are informed about the development Regular site sustainability assessments undertaken All sites register with the Considerate Constructors Scheme |
| Failure to meet expectations |
Failure to gain planning approval Reduced market value of homes which do not meet customer expectations |
Commitment to apply Berkeley's Community Engagement Strategy on every planning application Commitment to run a programme of engagement and research to further enhance our product and processes based on the needs of our customers Continuing to assess the social sustainability of our developments |
| Reduced availability of skilled labour |
Increase in cost of building homes Potential delays to production and reduced output |
Encourage apprenticeships and vocational training and invest in training and development of employees |
Key Opportunities
| Opportunity | Financial impact | Management approach |
| Improving operational efficiency |
Lower operating costs, and reduced vulnerability to fluctuating prices, due to efficiencies and lower waste disposal costs |
Performance targets, including:
|
|
Market differentiation of our product |
Increased market value of homes due to demand for good design and efficiency |
Homes designed to be resilient to climate change and built to a high standard |
| Creating new successful places |
Higher sales due to enhanced reputation and desirability of the location of our homes Increased market value of homes due to the customer appeal of the location |
Using our social sustainability framework to inform the planning and delivery of the places we create Commitment to implement community plans on our developments to facilitate thriving communities |
| Developing a highly skilled workforce |
A highly skilled and stable workforce has the potential to be more productive |
Provide health and safety and sustainability training for employees Invest in training and development through talent management programmes |
| Promoting a positive image of construction to address the skills shortage |
Helps to ensure future availability of the labour force |
Collaborating with external organisations, including schools and colleges |
| Having a positive impact on the environment |
Positive reputational benefits |
Commitment to create a net biodiversity gain on all new sites from May 2017 |
| Having a positive impact on society | Positive reputational benefits and increased likelihood of obtaining planning permission in the same area Operational costs of running the Berkeley Foundation |
All sites are registered with the Considerate Constructors Scheme Investing in the Berkeley Foundation through fundraising, Give As You Earn, and volunteering Providing services and facilities Delivering affordable housing |
| Developing a reliable and stable supply chain |
Reputational benefit of association with suppliers which demonstrate strong performance and approach to sustainability |
Work with suppliers to improve sustainability performance of their product or service Integrate a review of the sustainability of products, suppliers and contractors in our formal tender process |