Berkeley, Sustainability, Risks and Opportunities

Risks and Opportunities

Key Risks Financial impact Management approach
Poor environmental performance during our operations Higher operating costs due to increased energy use, water consumption and waste production Performance targets such as 3% reductions in energy and water use

Undertaking regular site sustainability assessments
Increasing legislator/regulatory environmental requirements Increase in cost of building homes

Increase in research and development costs
Research undertaken to understand the implications of the Government's proposed zero carbon standard on our future developments
Key Opportunities Financial impact Management approach
Market differentiation of our product Higher sales due to unique product offering to customers

Increased market value of homes due to demand for good design
Develop minimum design standards on all homes including for sound insulation, space, storage and overheating

Commitment to design all new homes to at least Level 3 of the Code for Sustainable Homes
Key RisksFinancial impactManagement approach
Negative impact on local communitiesReduced likelihood of gaining planning permission within the same areaUndertaking regular site sustainability assessments
Failure to meet expectationsFailure to gain planning approval

Reduced market value of homes in poorly functioning communities which do not meet local needs
Commitment to apply Berkeley's Community Engagement Strategy on every planning application

Continuing to assess the social sustainability of our developments
Key OpportunitiesFinancial impactManagement approach
Creation of new successful placesHigher sales due to desirability of the location of our homes

Increased market value of homes due to the customer appeal of the location
Commitment to monitor our design against performance standards

Using our social sustainability framework to inform the planning and delivery of our places
CommunitiesIncreased likelihood of obtaining planning permission in the same areaAll sites are registered with the Considerate Constructors Scheme
Developing a highly skilled workforceA highly skilled and stable workforce has the potential to be more productiveProvide health and safety and sustainability training for employees
Have a positive impact on societyPositive reputational benefits

Operational costs of running the Berkeley Foundation
Invest £2 million by May 2014 to support young people and their communities through the Berkeley Foundation
Key OpportunitiesFinancial impactManagement approach
Disruption to the supply of materials or servicesCosts of finding alternative suppliers and/or delays to the build programmeIntegrating an assessment of sustainability into our selection process

Communicating our sustainability requirements to all contractors
Market changes
Reduced investment into the businessDeliver in line with the guidance given to the markets to achieve superior returns on Shareholder Equity for a given level of risk
Unsustainable returnsRestricted finance for further investmentContinue investment to grow and enhance through optimising our land bank to ensure that our returns are sustainable over the next 10 years
Key OpportunitiesFinancial impactManagement approach
Developing a reliable and stable supply chainReputational benefit of association with suppliers which demonstrate strong performance and approach to sustainabilityWork with suppliers to improve sustainability performance of their product or service

Integrate an assessment of the sustainability of products, suppliers and contractors in our formal assessment process
CommunitiesLower operating costs due to efficiencies and lower waste disposal costsRe-use and recycle 85% waste

Reduce carbon emissions and water usage by 3% on sites