Stakeholder Engagement - Sustainability - Investor Information

Sustainability Header - Stakeholder Engagement

Stakeholder Engagement

At Berkeley we understand that our stakeholders are fundamental to the success of our business and we work hard to understand their opinions and gather their feedback. The success of our Vision2020 strategy is dependent on us engaging with and learning from our stakeholders to ensure that we continue to understand and respond to the issues that are important to them.

During 2010/11, we have engaged with our stakeholders through various methods. The key outcomes have either directly or indirectly informed the evolution of Vision2020. For example, you can read about how we engaged with our stakeholders as part of our materiality review here.

Please click on the headings below to find out how we communicate with each of our key stakeholders:

Employees

We have an Employee Policy which sets out the standards of how we work with our employees. We have committed to providing a safe and healthy working environment, treating all employees fairly, encouraging and supporting our employees in their development and provide adequate reward and recognition. We also have Business Ethics and Whistle Blowing policies. An Equality and Diversity Policy also operates across the Group, which bans discrimination of any type.

All staff working on site are given training through a formal induction process and regular tool box talks. Several also take day release to study for B-TEC or NVQ qualifications while they work.

In order to embed Vision2020 into our working practices, it has been communicated to all employees through webmails, training and conferences.

This year we engaged with our employees as part of the materiality survey and their opinions and suggestions have been incorporated into our Vision2020 review.

"The working environment is fantastic; I am lucky to work in such a well appointed and pleasant office, in lovely surroundings. The flexibility to work effectively and autonomously is wonderful and encourages me to think 'outside of the box', particularly in respect of Office Management and Sustainability issues."

Joanne Hope, PA to one of the Managing Directors, St George

Customers

As a mixed use, mixed tenure developer, our customer reputation is critical to the success of the business. We sell homes and commercial space to a wide variety of customers, including:

  • Individual purchasers
  • Registered Social Landlords
  • Major property investors
  • Financial institutions
  • Commercial operators

Every operating company has a Customer Service Department, which, in conjunction with our Sales department, ensures that we look after customers from the initial reservation through to legal completion and then onto post occupation maintenance. Berkeley has in place a number of mechanisms to ensure that we maintain the standard of customer care to which we aspire. Customer care and customer service forms an important part of our Main Board Agenda and every quarter a substantial report is discussed at the Board Meeting. 

Communicating with Customers about Sustainability

Sustainability is becoming an increasingly important issue for our customers. We actively promote sustainable development to our customers to encourage them to live more sustainable lifestyles. We have an interactive tool on our website to provide tips to customers on how to reduce the environmental impact of their homes. In addition, sustainability information is increasingly being provided in our sales centres and on project websites through tailored marketing materials including sustainability posters and brochures.

During 2010/11 we have undertaken research with existing customers regarding sustainability. We sought to understand the extent to which sustainability affects purchaser's decisions, and what particular sustainability features customers find attractive. The results of our customer sustainability survey can be found here.

"I would definitely recommend Berkeley Homes and Royal Arsenal Riverside to any of my family and friends who are seeking a new home."

"I felt very well taken care of by Berkeley Homes throughout the purchase of my home. As a first-time buyer this was especially important to me. The Berkeley Homes team were able to answer any questions that I had. What made the biggest difference for me were that even after the sale they still as helpful and friendly to me which is fantastic. I would definitely recommend Berkeley Homes and Royal Arsenal Riverside to any of my family and friends who are seeking a new home. Berkeley Homes is undoubtedly the leading housing developer as they provide excellent quality homes and service."

Greg Hall, Resident at Royal Arsenal Riverside

Suppliers

We outsource much of the development process and work with approximately 4000 contractors and suppliers across the Group, with an estimated value in excess of £450million (excluding land purchases). This makes the potential scale of our sustainability impacts considerable, but this purchasing power also gives us the ability to drive sustainable innovation within the industry.

Our Sustainable Procurement Policy commits us to selecting those suppliers, services and products with the lowest possible environmental and social impact, where practicable and within the framework of commercial value. We have identified timber as a particularly high risk material and therefore also have a separate Timber Policy. This states that we will seek reassurance from our suppliers that the forests from which they obtain timber are sustainably managed.

During the project tender process, all suppliers and contractors are sent copies of our sustainability policies, including our Sustainable Procurement and Timber policies. We continue to work with our suppliers to obtain sustainable products which perform and are of the quality that our customers expect. This happens many times on each development, from sourcing baths with lowered capacity to meet Code for Sustainable Homes water consumption requirements, to sourcing site hoarding with sustainable timber certification.

Management rules are also sent out which outline the specific standards we expect from the companies we work with, in relation to financial performance, health and safety, insurance and sustainability. We select only those companies with the highest standards to do business with, and reserve the right to terminate any contracts with contractors found to be undermining our sustainability objectives. All subcontractors are contractually obliged to meet basic statutory employment requirements.

We rely on our supply chain to help us develop to the high standards we are known for and believe in developing long term relationships with our contractors. This relationship demonstrates their satisfaction with us as a client and encourages us to explore best practice solutions to sustainability issues through working together. We engaged with our key suppliers as part of our 2011 materiality review.

"We have found that the Berkeley Group are one of the more progressive clients with whom we work in terms of it's approach to sustainability, which is integral to it's procurement process and procedures on site. Notably at Chelsea Bridge Wharf we have worked with Berkeley to establish the source and environmental credentials of the supply chain for a number of materials that we are using in our facade....This approach to sustainability has been a factor in influencing Parry Bowen to look closely at it's own procedures and we now are working on a sustainability programme to improve our performance"

Tim Bowen, Finance Director, Parry Bowen

"Your commitment to supporting your contractors is very reassuring to us and in turn has helped us to understand your position as a major developer."

MA Hickey & JG Hickey, Joint Managing Directors, Coinfords

Industry Bodies, Trade Associations and Non-Governmental Bodies

Berkeley works with industry bodies and trade associations to promote good practice in sustainability. By working with these organisations, we are able to have a two way dialogue with the wider industry and ensure that we are aware of their response to, and influence over, the ever changing sustainability agenda. Examples of this include:

  • Working with CABE to develop our commitment to the Building for Life Silver Standard
  • Working with WRAP to develop material logistic plans at Holborough  
  • Participation in the UK GBC Task Group on Legal Frameworks for Sustainable Community Infrastructure
  • Associate member of the Considerate Constructors Scheme

Through engaging with NGOs as part of our 2011 materiality survey, we received valuable feedback further highlighting the need to focus on maximising the positive impact our work has in the long-term, whilst minimising our impact during construction.  

Investors

Our investors are interested in both Berkeley's financial performance, and the factors that may affect that performance in the short and long-term. Our share price performance reflects the confidence our investors have in our board members, management teams and business model. We continue to engage with our investors to demonstrate that our approach to sustainability adds value to our business. In addition to making regular presentations to mainstream analysts, Berkeley continues to engage actively with socially responsible investors. In November 2010, Berkeley was ranked first in the NextGeneration sustainability performance benchmark of the top 25 housebuilders for the fourth year running. Berkeley also maintains its listing within FTSE4Good.

Local Communities

Listening, understanding and responding to the needs of local people is essential in securing community support for development proposals and ensuring that we can deliver sustainable communities. People's interests vary from location to location, but local communities are unsurprisingly most concerned with how the development will affect their everyday lives. Berkeley is committed to listening to these concerns, as well as to the community's aspirations, and finding appropriate solutions in every development.

We believe our approach to sustainability, and our commitment to stakeholder engagement enables faster planning permissions and better designed schemes that meet the aspirations of the local community. Our comprehensive Community Engagement Guidelines have been re-written to reflect some of the best consultation strategies we have previously employed, taking account of the feedback we have received from our communities. These are used on all new projects and exceed statutory requirements, allowing us to enter into a genuine dialogue with those who can affect or may be affected by our developments. We use a range of engagement techniques including newsletters, websites, telephone helplines, regular meetings and community planning weekends.

We have many examples of where proactive dialogue has helped to deliver schemes which are supported by the local community. For example, at our planned development at West Kent Cold Store, we have attended monthly West Kent Cold Store Community Forum meetings involving all key local stakeholders, as well as numerous one to one meetings with neighbours, residents associations, ward and parish councillors, and we have held two public exhibitions. This year-long exercise resulted in the establishment of trust following years of distrust, a better local understanding of the scheme and enabled us to identify the key issues for the community. We were thus able to revise the application to address these issues and turn long-term objectors into supporters. The overwhelming community support for the improved scheme was key in obtaining planning consent.

More information on how we engage with local communities can be found here.

National and Local Government

The Government sets the context within which we operate through laws, regulations, general policy and strategy. Local Government set the specific parameters within which individual developments takes place. All of these levels of Government are placing an increasing emphasis on the role business can play in delivering sustainable development, and more specifically sustainable communities.

We aim to work with all levels of Government to inform their approach to sustainability. For example, we have engaged with national and local Government during 2010/11 on a number of issues including the impact that Building Regulations and local planning policies are having on building design and the comfort of homes. We hope this will result in a better policy and regulatory framework.

Affordable Housing Providers

Berkeley works with affordable housing providers, including housing associations, registered social landlords and English Partnerships to deliver mixed tenure developments.

"[Our] long term relationship has led to a very successful partnership, providing homes for all tenures, particularly large family homes for social rent, which are particularly difficult to deliver in London and the Home Counties. Our relationship with the Berkeley Group has made a significant contribution to meet the ever increasing housing needs of the communities in London and the Home Counties."

Darrell Mercer, CEO, Dominion Housing Group