Berkeley, Sustainability, Risks and Opportunities

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.

RiskFinancial impactManagement 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:

  • 10% reduction in operational carbon emissions intensity by April 2018
  • 10% construction waste reduction by April 2018
  • 5% reduction in site water use per operative by April 2018

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

OpportunityFinancial impactManagement approach

Improving operational efficiency

Lower operating costs, and reduced vulnerability to fluctuating prices, due to efficiencies and lower waste disposal costs

Performance targets, including:

  • 10% reduction in operational carbon emissions intensity by April 2018
  • 10% construction waste reduction and re-use or recycle at least 90% of total waste produced on site by April 2018
  • 5% reduction in site water use per operative by April 2018

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