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<strong>Persimmon</strong> Plc<br />

Sustainability Report 2007


<strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

About <strong>Persimmon</strong><br />

<strong>Persimmon</strong> is the UK’s leading housebuilder. In 2007, we sold 15,905 new homes. We have<br />

34 operating businesses from Exeter to Edinburgh building a variety of homes across the<br />

UK, from affordable starter homes to large family properties. We are committed to a<br />

sustainable future, with environmental issues at the heart of what we do. This includes<br />

protecting and improving local surroundings and adopting new technologies.<br />

Our business operates under three main brands, <strong>Persimmon</strong> <strong>Homes</strong>, Charles Church<br />

and Westbury Partnerships. The <strong>Persimmon</strong> <strong>Homes</strong> business is our core operation, with<br />

24 regional <strong>Persimmon</strong> offices. Charles Church operates from a further nine regional<br />

offices. Westbury Partnerships focuses on social housing, in conjunction with Space4,<br />

our timber frame manufacturing operation.<br />

Our strategy and approach<br />

We aim to be a responsible housebuilder and embed the concept of sustainability into<br />

our core operations. To facilitate this process we have defined six key responsibilities:<br />

To build sustainable homes<br />

(see page 2)<br />

To operate efficiently to<br />

minimise our impact on the<br />

environment<br />

(see page 12)<br />

To develop close relationships<br />

with local communities<br />

(see page 16)<br />

To promote skills within the<br />

house building industry<br />

(see page 22)<br />

To ensure a healthy and safe<br />

working environment<br />

(see page 28)<br />

To care for our customers<br />

(see page 32)


Page 1 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Chief Executive’s welcome<br />

Sustainability issues are becoming increasingly important<br />

to our business. Our stakeholders expect us to behave in<br />

a responsible manner and we have a duty to demonstrate<br />

to them how we are discharging our responsibilities.<br />

In particular, local authorities and planners expect us to<br />

consider sustainability issues when we plan our developments<br />

and build new homes.This is why I am pleased to introduce<br />

our 2007 Sustainability Report.<br />

We have strengthened our governance of sustainability<br />

issues. In particular I am pleased that Neil Davidson, CBE,<br />

a non-executive Director of <strong>Persimmon</strong> has agreed to chair<br />

our Corporate Responsibility (CR) Committee. He brings<br />

a wealth of business experience that I am sure he will apply<br />

to help to develop our approach to sustainability across<br />

the Group.<br />

First and foremost we are a house building company.<br />

We build good quality homes, at the right price and in<br />

surroundings that people want to live and with features<br />

that will enhance their quality of life. I believe that by taking<br />

sustainability issues into account as we build our homes and<br />

run our business, it will enhance the quality of our homes,<br />

generate value for our investors and enable our customers<br />

to reduce their impact on the environment.<br />

However, as a business we must still apply the same level<br />

of rigour and pragmatism that has made us so successful.<br />

We must embrace the concept of sustainability, whilst being<br />

commercial and taking our decisions based on the benefits to<br />

our business and our customers. Sustainability at <strong>Persimmon</strong><br />

is about making good decisions and managing our risks.<br />

This year has seen improvements in our performance,<br />

but perhaps more importantly it has seen a shift in emphasis<br />

towards sustainability issues within our business. We have<br />

developed a new Sustainability Policy that outlines six<br />

sustainability responsibilities. These are the guiding principles<br />

by which we undertake our business. They provide us with<br />

the clarity we need to embed sustainability throughout<br />

the Group and respond positively to stakeholders’<br />

expectations of us.<br />

We continue to promote innovation, particularly the use<br />

of modern methods of construction techniques, such as<br />

our innovative Space4 system and technology such as those<br />

trialled at our award winning Living-i project, to improve<br />

the sustainability of the homes we build.<br />

We are recycling more of the waste generated than ever<br />

before, reducing our impact on the environment, whilst<br />

also reducing our costs.<br />

We built 40% more affordable homes in 2007, supporting<br />

the Governments aim to build communities that are inclusive<br />

and to provide affordable homes for those that need them.<br />

We have launched our Safe Teams Avoid Risk (STAR)<br />

health and safety campaign across the Group to raise the<br />

awareness of safety and risk to our employees working<br />

on sites. Consequently, despite growth in our business the<br />

number of reportable incidents has not increased.<br />

Our focus on customer care and quality control has<br />

<strong>continued</strong> to benefit our business. 86% of our customer’s<br />

responded to our customer satisfaction survey saying they<br />

would recommend us to a friend, continuing the trend<br />

of the past three years.<br />

We have made significant progress during 2007 and 2008<br />

will be no different. I am committed to our sustainability<br />

responsibilities in the knowledge that by taking these into<br />

account as we manage our business, in a pragmatic and<br />

commercial way, it will contribute to future growth and<br />

prosperity of the Group and its employees.<br />

Mike Farley Group Chief Executive<br />

25 February 2008


Page 2 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building sustainable homes<br />

The way we design and build our homes affects<br />

how people choose to live and consequently their<br />

impact on the environment and society.


Page 3 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Eco<strong>Homes</strong> assessments on homes built<br />

(%) 10<br />

<strong>Homes</strong> assessed against Eco<strong>Homes</strong><br />

Other homes built<br />

The homes we build last for a long time and the way they<br />

are designed and built has an impact on how people choose<br />

to live and consequently their impact on the environment<br />

and society around them.<br />

Whilst we do not wish to tell our customers how they<br />

should live, we do have a responsibility to make sure that<br />

the homes we build are efficient and enable their occupiers<br />

to live in a sustainable way.<br />

A home needs to be heated and kept warm, but the more<br />

energy used to do this, the more carbon dioxide will be<br />

emitted into the atmosphere contributing to climate change.<br />

Building homes that are thermally and energy efficient helps<br />

to reduce energy use. From a social point of view, we can<br />

no longer assume that a family home is the ‘one size fits all’<br />

solution it used to be and the modern homes we build need<br />

to be flexible and adaptable to accommodate a variety of<br />

family circumstances.<br />

We design and build beyond current legislative standards and<br />

building regulations, when it is appropriate. A good example<br />

of this is our award winning Living-i project in Irlam, near<br />

Manchester (described on page 10). This project, fully funded<br />

by <strong>Persimmon</strong>, investigated the use of different technologies<br />

and building techniques to build homes that are sustainable.<br />

This has spearheaded our thinking and provided a testing<br />

ground for new building concepts that we can apply to the<br />

rest of our operations.<br />

Moreover, local authorities and planners increasingly<br />

expect us to take sustainability issues into account when we<br />

plan our developments and build new homes. In this respect,<br />

sustainability is now a key part of the way we do business.<br />

Our risk management takes these impacts into account in<br />

protecting and enhancing our reputation.<br />

90<br />

1,539 Eco<strong>Homes</strong> built<br />

Eco<strong>Homes</strong> assessments<br />

(1,539 homes assessed)<br />

(%)<br />

Pass or below<br />

Good<br />

Very good<br />

Excellent<br />

Eco<strong>Homes</strong> and the<br />

Code for Sustainable <strong>Homes</strong><br />

The way we incorporate sustainable features into our homes<br />

often depends on a variety of local factors. We work closely<br />

with each local planning authority to understand these when<br />

planning, designing and developing the communities we build.<br />

Our regional structure allows us to be flexible, as many of<br />

these factors can vary considerably between different local<br />

planning authorities.<br />

We do not try to apply a universal definition of what a<br />

‘sustainable home’ is to our operating businesses, although<br />

we do encourage them to share best practice of what<br />

innovations work and which do not.<br />

In many cases, we found that the Building Research<br />

Establishment’s Eco<strong>Homes</strong> standards very useful in<br />

benchmarking our homes. This Eco<strong>Homes</strong> standard balanced<br />

the homes environmental performance, with the need<br />

for the occupants quality of life and a safe and healthy<br />

internal environment, whilst being flexible enough to take<br />

into account a number of different factors, from energy use<br />

to the transport infrastructure.<br />

Consequently, Eco<strong>Homes</strong> provided ourselves, housing<br />

associations and local authorities, with confirmation that the<br />

homes we build are sustainable. In 2007, 1,539 of our homes<br />

were assessed against the Eco<strong>Homes</strong> standard, of which 43%<br />

achieved either a very good or excellent rating. Eco<strong>Homes</strong><br />

represented almost 10% of all the homes we built.<br />

39<br />

4<br />

12<br />

45


Page 4 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building sustainable homes<br />

<strong>continued</strong><br />

HydrO, St Neots<br />

Committed to building ‘living communities’, our East<br />

Midlands operating business is trialling Modern Methods<br />

of Construction techniques at its HydrO development<br />

in St Neots. Timber frames manufactured by Space4,<br />

are being used to construct apartments offering quicker<br />

construction and better thermal efficiency, compared to<br />

traditional brick and block building.<br />

In April 2007, the Code for Sustainable <strong>Homes</strong> replaced<br />

Eco<strong>Homes</strong> for the assessment of new housing in England.<br />

Whilst the Code is similar in some ways to the Eco<strong>Homes</strong><br />

standard, it is more comprehensive and requires mandatory<br />

minimum levels of performance across six key areas,<br />

including energy efficiency, water efficiency, waste<br />

management and use of materials.<br />

The Code has a scoring system of six levels. The different<br />

levels are assessed on achieving both the appropriate<br />

mandatory minimum standards and a proportion of the<br />

‘flexible’ standards. Code Level 3 is approximately equal to<br />

the Eco<strong>Homes</strong> very good score.<br />

During 2007, we set up a working group with representatives<br />

from across the business to review the implications of the<br />

Code and to understand the commercial and operational<br />

impacts of achieving each of the six levels. This work is<br />

ongoing and we hope to provide more information on this<br />

next year, particularly whether we may be able to set some<br />

Group wide standards in this area.<br />

Ridgeway Mews, Stoney Gate, Leicester<br />

At this Charles Church development we have trialled<br />

innovative new technology to promote energy efficiency<br />

by using Air Source Heat Pumps as a way of improving<br />

space heating. These pumps work on the same principle<br />

as domestic refrigerators but in reverse. Heat Pumps are<br />

efficient as they reuse heat, rather than convert it from a<br />

fuel as in conventional heating systems.<br />

Tackling Climate Change<br />

Climate change is a significant issue facing businesses today,<br />

and regardless of the science and uncertainty over the causes<br />

of climate change, there is an overwhelming consensus that<br />

the earth is warming. This could have impacts of global and<br />

local significance.<br />

Understanding the risks and impacts of climate change is<br />

playing a growing role in business. Greenhouse gas emissions<br />

are becoming more and more regulated, analysed and priced.<br />

It is important that we stay abreast of these changes and their<br />

implications for us as one of the UK’s leading housebuilders.<br />

Moreover, our stakeholders have an expectation of us to<br />

explain clearly how climate change may affect our business<br />

and how we are tackling this issue.<br />

In 2007 we developed our climate change position statement<br />

that explains the key risks and opportunities for our business<br />

from climate change, what we believe our responsibilities<br />

to be and the actions we are taking to address these. Our<br />

position statement can be found on our website at<br />

www.persimmonhomes.com.


Page 5 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

We have three responsibilities in this area:<br />

• Promoting efficient living:<br />

Building quality sustainable homes and communities<br />

for our customers, that are inherently energy efficient<br />

and that encourage people to live in a way that minimises<br />

their contribution to climate change.<br />

• Building for the future:<br />

Building homes that take into consideration the potential<br />

need to adapt to changes in our climate and subsequent<br />

impacts on the local environment in which they are built.<br />

• Reducing emissions:<br />

Minimising our contribution to climate change through<br />

the reduction of emissions from our operational use of<br />

energy and fuel.<br />

Throughout our operations we use energy and fuel,<br />

and consequently we generate carbon dioxide emissions,<br />

a greenhouse gas and contributor to climate change.<br />

We are in the process of measuring our own emissions<br />

and setting appropriate targets for their reduction.<br />

Cranbrook ‘Eco Town’, Exeter<br />

We are working jointly with other housebuilders to<br />

construct a new ‘eco town’ at Cranbrook in Exeter.<br />

This new community will initially provide 3,500 homes<br />

by 2016, of which 40% will be affordable and around<br />

17% of the towns energy will come from renewable<br />

sources. The new town – in which public buildings such<br />

as schools will be powered by biomass boilers – will also<br />

conform to the latest regulations on water use, building<br />

materials and waste and was one of the first developments<br />

in the UK to formally commit to meeting Level 3 of the<br />

Government’s Code for Sustainable <strong>Homes</strong>. The town<br />

will also have its own railway station to promote better<br />

use of public transport.<br />

However, our initial assessment has indicated that our carbon<br />

footprint is very small when compared to the collective<br />

emissions of all the homes we build each year. In 2007,<br />

we built 15,905 homes all of which use energy to heat, light<br />

and power them. As the homes we build are lived in for many<br />

years, the carbon emissions associated with them over this<br />

period will be far greater than our own operational emissions.<br />

Whilst we will continue to seek ways to reduce our<br />

operational emissions, we believe that the most significant<br />

way in which we can contribute to reducing the impact<br />

of climate change is to build houses that are efficient and that<br />

encourage their occupants to live in a way that minimises<br />

their contribution to climate change. Therefore, the main<br />

thrust of our approach will focus on promoting the efficient<br />

living element of our responsibilities in this area.


Page 6 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building sustainable homes<br />

<strong>continued</strong><br />

Design for Manufacture Competition, Prewit Park<br />

Work has commenced on the Park Prewit ‘Design for Manufacture’ site. The Design for Manufacture Competition,<br />

run by English Partnerships on behalf of the Department for Communities and Local Government aims to<br />

demonstrate it is possible to build a high quality home for a construction cost of £60,000. We are building adaptable<br />

homes that can change according to their occupier’s circumstances, in accordance with the ‘Lifetime <strong>Homes</strong>’ principles<br />

(www.lifetimehomes.org.uk). These homes will also be built to the Eco<strong>Homes</strong> ‘very good’ standard. We are also monitoring<br />

the environmental impacts of the house building process, such as the way we manage waste and encourage recycling,<br />

and reviewing the development’s ‘carbon footprint’.<br />

Fairfield Park, Stotfold, Bedfordshire<br />

This development has been built to accommodate changes<br />

to the way that modern families live their lives and how<br />

they use their homes. For example all homes have<br />

additional telephone and power sockets to enable residents<br />

to work more easily from home. We have also provided<br />

bicycle storage and constructed a series of cycle ways.<br />

To encourage and enable residents to use other forms of<br />

transport and reduce car journeys, we established a website<br />

with relevant travel information, including bus timetables<br />

and car sharing guidance.<br />

Kingsway, Quedgley, Gloucester<br />

Set on the southern boundary of Gloucester, Kingsway<br />

is part of a consortium development offering customers<br />

modern village living. As well as a new school, community<br />

centre, shops, health and sport facilities it also includes<br />

extensive play areas and parklands. Sustainability features<br />

are high on the agenda for the homes built there, and all<br />

homes have been built with waste separation bins<br />

incorporated to encourage more recycling with the<br />

minimum amount of inconvenience.


Page 7 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Average SAP rating<br />

– 2004 to 2006 scale 0-120<br />

– 2007 scale 0-100<br />

92.3 93.5 94.5<br />

Promoting energy efficiency<br />

90.6<br />

2004 2005 2006 2007<br />

We have improved the average energy efficiency of our<br />

homes in three ways: using energy efficient building<br />

techniques, such as our innovative Space4 system, installing<br />

innovative new technologies to prove their benefits, such<br />

as at the Living-i project and adopting proven and cost<br />

effective energy efficient technology across the Group.<br />

To determine the energy efficiency of the homes we build<br />

we monitor their Standard Assessment Procedure (SAP)<br />

ratings. SAP ratings are essentially based on the energy<br />

costs for space and water heating. They establish a means<br />

for both the home owner and purchaser to understand the<br />

running costs and environmental impact of the property.<br />

SAP ratings also form the basis for calculating energy<br />

efficiency for a Home Information Pack and the requirement<br />

for us to provide our customers with Energy Performance<br />

Certificates. We welcome this simplification and a more<br />

straightforward way for us to communicate the energy<br />

efficiency of our homes, akin to the A to G rating structure<br />

for electrical appliances.<br />

In 2007, we achieved an average SAP rating of 90.6.<br />

However, it is important to note that the way SAP ratings<br />

are calculated has recently been revised. Prior to this year,<br />

SAP ratings were calculated on a scale from 0 to 120.<br />

This has been changed to a scale of 0 to 100. Based on this<br />

new scale, our average SAP rating is 90.6. It is likely that a<br />

number of the homes we built were assessed against the<br />

previous scale. Although we expect this to be a small<br />

proportion, it may have increased our average rating. With<br />

this caveat, we continue to be encouraged that the energy<br />

efficiency of our homes remains high.<br />

We monitor the energy efficiency of the appliances we<br />

install, which are all rated A or B in terms of energy use,<br />

with the minor exception of some washer/dryers.<br />

There are a number of technologies that have now become<br />

standard in the majority of <strong>Persimmon</strong> homes, as they have<br />

become more cost effective to use. For example, as boilers<br />

account for around 60% of all domestic carbon dioxide<br />

(CO2) emissions, by fitting as standard a new high efficiency<br />

condensing boiler with heating controls, we can help cut<br />

CO2 emissions.<br />

Another example is the installation of low flush toilets in our<br />

bathrooms. These use significantly less water than traditional<br />

WCs, and indirectly reduce CO2 emissions as less water<br />

passes through energy intensive water processing. Other<br />

examples of energy saving measures we have used, along with<br />

other eco-efficient features, can be found in the cases studies<br />

included in this report.<br />

Our customer Masterfile explains our sales process and<br />

introduces customers to their new home. On some new<br />

developments, we have also included literature in Masterfile<br />

on how our customers can save energy. We are investigating<br />

whether this can be rolled out across the Group.


Page 8 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building sustainable homes<br />

<strong>continued</strong><br />

We planted more than five trees<br />

for every house we built<br />

Total trees planted<br />

('000 trees)<br />

Structural planting<br />

Base planting<br />

Land use<br />

2005 2006 2007<br />

It is important that we preserve our local heritage and<br />

landscape, so we aim to build in a way that is sympathetic<br />

with the local area. In many cases this means using local<br />

materials and adopting building styles that fit in with the<br />

local vernacular.<br />

Many of the environmental impacts of the house building<br />

process can be addressed through good preparation and<br />

adherence to planning guidance and regulations. As part<br />

of our planning process, we look to identify the potential<br />

environmental impacts associated with any development.<br />

This includes impacts from remediation of contaminated<br />

land, impacts on the local surroundings and habitats, and the<br />

impacts of the construction process itself. On many of our<br />

larger sites, this will involve an Environmental Impact<br />

Assessment (EIA) being undertaken by specialist contractors.<br />

This informs our thinking and allows us to develop proposals<br />

and designs which minimise possible environmental damage<br />

and where possible enhance the local surroundings.<br />

When appropriate, particularly for our larger developments<br />

we will join the Considerate Constructors Scheme which<br />

assesses our performance against an eight point Code of<br />

Considerate Practice. The categories are: Considerate,<br />

Environment, Cleanliness, Good Neighbour, Respectful,<br />

25.8<br />

31.7<br />

32.4<br />

24.1<br />

67.8<br />

17.7<br />

Trees planted per home<br />

4.6<br />

3.4<br />

5.4<br />

2005 2006 2007<br />

Safe, Responsible and Accountable. For example, <strong>Persimmon</strong><br />

Partnerships achieved excellent scoring under the scheme<br />

for its developments at Tweed Street and Allan Crescent<br />

in Dunfermline.<br />

When we are remediating contaminated land this is often<br />

a very positive improvement to the local environment.<br />

However, we recognise that remediation can be a very<br />

emotive issue, and we are sensitive to local opinion when<br />

we are planning and designing such developments.<br />

Our impact in improving the local environment is difficult<br />

to measure as the amount of work we do to protect and<br />

enhance the landscape of the communities we build varies<br />

so much from scheme to scheme. However, to give us a<br />

broad understanding of the contribution we are making we<br />

review the number of trees we plant and the ratio of trees<br />

planted per house. Of course this does not give us the whole<br />

picture, for example, it says nothing about the trees and<br />

natural features we have preserved, but it helps to inform<br />

us of the level of activity around the Group.<br />

In 2007, we planted 85,472 trees equating to 5.4 trees per<br />

home sold. This includes trees planted as part of structural<br />

landscape planting on the open space on our developments.<br />

In addition, we planted 157,000 young trees known as whips.


Page 9 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building on Brownfield land<br />

In town or city locations, we often build on sites that<br />

have previously been developed, known as ‘brownfield land’.<br />

These sites often require extensive remediation and<br />

decontamination. Suitable brownfield sites are more readily<br />

available in large conurbations for historical reasons and<br />

redevelopment is often encouraged by local planning<br />

authorities. We continue to monitor our use of brownfield<br />

land to ensure that our portfolio of sites remains balanced<br />

rather than having a policy to specify a fixed percentage.<br />

However, we are pleased to report that some of our regions<br />

saw over 80% of completions on brownfield land, well ahead<br />

of the Governments 60% target. As a Group, over 56% of the<br />

homes we built were on brownfield land.<br />

Mitchell’s Brook, Cape Hill, West Midlands<br />

The Mitchell’s Brook development is on the former<br />

Mitchells & Butler Brewery in Cape Hill, Birmingham.<br />

This new urban village will create feature up to 900 new<br />

homes when complete. A quarter of these will be affordable<br />

homes for housing associations.<br />

We recognised the sensitive nature of the bond between<br />

the local community and the former brewery, and<br />

consulted widely with the local community on how best<br />

the site should be developed. For example, the road names<br />

have been selected after consulting with the Smethwick<br />

Local History Society and artefacts found on the site have<br />

been donated to the Bass Museum. A memorial situated<br />

by the main entrance to the site, which commemorates<br />

<strong>Homes</strong> built on brownfield land<br />

(%)<br />

50<br />

51<br />

57 56 56<br />

2003 2004 2005 2006 2007<br />

Mitchell & Butler employees who died in the war, has been<br />

restored and rededicated. An old fire station on the site has<br />

also been refurbished by a team of our apprentices, and this<br />

will be used as a community building. To complement the<br />

residential element of the site Deersleap Wood, a nine acre<br />

conservation area located on the site has been restored and<br />

enlarged, together with additional public open space.<br />

Through consultation with Birmingham City Council,<br />

Sport England and local sports teams the existing sports<br />

and social club will be retained and completely<br />

refurbished to provide local facilities for the community,<br />

including an all-weather, full size football pitch, tennis<br />

courts and a pavilion. <strong>Persimmon</strong> will also fund a centre<br />

manager to look after these facilities.


Page 10 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building sustainable homes<br />

<strong>continued</strong><br />

Living-i – Promoting sustainability<br />

The Living-i project was conceived to help <strong>Persimmon</strong><br />

trial and assess various materials and Modern Methods<br />

of Construction for the future. We want to improve all<br />

areas of house building, with focus on quality control,<br />

increasing the speed of construction and addressing the<br />

skills shortages within the industry.<br />

At the same time, <strong>Persimmon</strong> also recognised that the<br />

project would provide an opportunity for the wider<br />

sustainable living agenda to be explored. Incorporating<br />

the best Modern Methods of Construction and design,<br />

the five homes boast sustainable features that could become<br />

common place over the next few years. Such features<br />

include under floor heating, micro-combined heat and<br />

power units, solar panels, sheepswool insulation, non toxic<br />

paint and cutting edge technology.<br />

Building on the success of this development,<br />

including an award for the best Techno Home at the<br />

Housebuilder Innovation Awards (organised by the<br />

Home Builders Federation) we have launched a website<br />

(www.living-i.co.uk/) aimed at explaining to our<br />

stakeholders some of the technology available and its<br />

applications. This includes detailed ‘drill downs’ that<br />

provide technical specifications of the technologies used,<br />

images and details of suppliers.<br />

This information not only helps our business to<br />

incorporate some of these features into our core building<br />

operations, but it also helps to promote sustainability to<br />

the wider industry and provides the feasibility for wider<br />

implementation.<br />

Using innovation to promote sustainability<br />

Modern Methods of Construction (or MMC) is the term<br />

used to embrace a range of technologies and processes<br />

involving various forms of supply chain specifications,<br />

prefabrication and off-site assembly. The benefits of MMC<br />

mean we can make more use of effective materials, speed up<br />

housing delivery, maintain high standards of design quality<br />

and reduce resource consumption. It is also increasingly<br />

regarded as a means of improving quality, reducing time<br />

spent on-site, improving on-site safety and overcoming<br />

skills shortages in the construction of housing.<br />

We are constantly trialling new technology at our sites<br />

to ensure that we are able to build the best quality homes<br />

possible. More often than not MMC offers us other benefits,<br />

particularly when improving the sustainability of the homes<br />

we build. This is well illustrated by our Living-i development<br />

in Irlam, near Manchester. Here we trialled a variety of<br />

innovative building techniques and technologies to create<br />

five different house types. We reported in detail on this<br />

project in our 2006 report (available on our website).<br />

However, we have now taken the innovative step to share<br />

this information with our peers and the general public.<br />

Dealing with suppliers<br />

We recognise that our environmental and social impact<br />

extends further than just our own direct impacts. However,<br />

as a large company we have a large number of suppliers that<br />

provide us with labour and materials. We recognise that these<br />

suppliers have impacts too and we have a role to play in<br />

encouraging them to behave in a responsible and ethical way.<br />

We therefore developed our Supplier Principles setting out<br />

minimum standards which we expect our suppliers to meet.<br />

These principles are included in the tendering process for all<br />

new suppliers at both a Group and local level, as part of our<br />

terms and conditions of supply. A copy of our Supplier<br />

Principles can be found on our website.


Page 11 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Space4 is the UK’s largest producer of fast track, precision<br />

engineered, off-site manufactured construction systems.<br />

Its unique and patented building system offers a fresh<br />

approach to the building process and has been developed<br />

to address the challenges of affordability, sustainability<br />

and a shortage of skills in the house building industry.<br />

At the heart of Space4 lies a unique, high performance<br />

wall and floor system. Key components are manufactured<br />

at our purpose built production centre at Castle Bromwich,<br />

then delivered to site for assembly. All the timber used is<br />

from sustainable sources, certified by independent<br />

organisations, such as the Forestry Stewardship Council.<br />

Inside and outside, a Space4 home has the look and feel<br />

of a traditional property with the added bonus that the<br />

build process is more efficient – the basic structure of a<br />

typical four bed home can be constructed in a single day.<br />

This means street scenes and developments are completed<br />

much quicker. On the outside, properties are faced<br />

using brick, stone and render features giving them the<br />

appearance of a traditionally constructed home.<br />

Space4 homes provide a whole host of environmental<br />

benefits – its patented manufacturing process means<br />

properties boast superior fire resistance, while the<br />

high-performance insulation built into the structural<br />

walls deliver superior standards of thermal efficiency.<br />

This, together with high quality windows and doors<br />

means lower energy consumption and an end to draughts.<br />

In the days of ever-escalating utilities costs, the benefits<br />

are considerable. Achieving an Eco<strong>Homes</strong> excellent rating<br />

is normally achieved using the Space4 system.<br />

The off-site prefabrication process also means that much<br />

greater clarity in terms of project specification and<br />

planning can be achieved, ensuring the efficient use of<br />

materials through accurate monitoring and waste control.<br />

Estimates suggest that using Space4 can provide up to<br />

10% efficiency saving over traditional building techniques.<br />

Further details on Space4 can be found on their website:<br />

www.space4.com


Page 12 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Environmental performance<br />

We are committed to minimising our<br />

environmental impacts through a robust<br />

approach to environmental management.


Page 13 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

We are a house building company and our activities<br />

have the potential to have a significant impact on the<br />

environment. We have a robust approach to environmental<br />

management to ensure that our impacts are identified and<br />

well managed, particularly on our sites.<br />

Our environment policy sets out our commitment<br />

to minimising our environmental impacts. We have six<br />

priority areas which are reviewed on an annual basis:<br />

• Minimising the amount of waste we produce through<br />

effective design and on-site management.<br />

• Making efficient use of materials during the house<br />

building process, including recycling existing materials<br />

on site when appropriate.<br />

• Protecting and enhancing the natural habitat and local<br />

surroundings throughout the development process.<br />

• Making the most efficient use of land, including<br />

the regeneration of derelict or contaminated land.<br />

• Designing our houses and developments to incorporate<br />

features that minimise the impact on the environment<br />

during their habitation where practicable and cost effective.<br />

• Preventing pollution occurring at our sites.<br />

Our environmental policy forms the basis of our formal<br />

Environmental Management System (EMS), which is<br />

implemented across the Group. This includes detailed<br />

guidance and procedures relating to our environmental<br />

impacts and how to minimise these during the planning,<br />

design and construction of our developments.<br />

We have taken the step to integrate our EMS with our<br />

Health and Safety management arrangements, so that we<br />

can combine both elements into our on-site audits and<br />

reviews. Consequently, as each site is audited against<br />

our Health and Safety procedures, they are also audited<br />

against environmental criteria.<br />

Combining environmental management with familiar Health<br />

and Safety practices ensures they are taken seriously on site<br />

and well understood. This is reinforced by regular ‘tool-box’<br />

talks and on-site briefings relating to environmental issues,<br />

such as waste management or reducing the likelihood of<br />

environmental incidents.<br />

Our Space4 operation, which manufactures prefabricated<br />

timber construction panels, is certified to the ISO14001<br />

environmental management standard.<br />

Our environmental performance is monitored and reviewed<br />

by the CR Committee, with the responsibility for<br />

implementing this policy resting with the Managing Director<br />

of each operating business. On each site, the Site Manager is<br />

responsible for the day-to-day management of environmental<br />

issues and ensuring adherence to our policy.<br />

We seek to develop proactive relationships at a Group and<br />

local operating business level with regulators in this area,<br />

to ensure that the arrangements we have in place are<br />

appropriate and effective. In the unlikely occurrence of an<br />

environmental incident on one of our sites we are quick<br />

to implement our emergency procedures and inform the<br />

relevant authorities, reducing the potential for any long term<br />

environmental damage.<br />

Unfortunately, we had two environmental prosecutions in<br />

2007. They both related to muddy surface water discharge<br />

into a stream from a site on a steep hillside during severe<br />

thunderstorms, which overwhelmed drainage interceptors<br />

previously inspected by the Environment Agency. However,<br />

given the size of our business, with over 500 working sites,<br />

and the scale of our operations, we believe that our approach<br />

is working.<br />

Environmental prosecutions 2003 2004 2005 2006 2007<br />

Number of environmental<br />

prosecutions 0 1 0 0 2


Page 14 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Environmental performance<br />

<strong>continued</strong><br />

Operational carbon footprint<br />

(Office electricity<br />

and vehicle emissions)<br />

(tonnes)<br />

Electricity emissions<br />

Transport emissions<br />

7,056<br />

Reducing operational CO2 emissions<br />

2,231<br />

For the first time this year, we have measured the CO2<br />

emissions from our own activities – our operational carbon<br />

footprint. This takes into account the emissions from energy<br />

used by the 34 regional offices and head office, and the fuel<br />

used by our vehicle fleet of 1,440 company cars and vans.<br />

At this stage we have excluded emissions from our on-site<br />

operations, which are difficult to measure accurately owing<br />

to the different phases of construction occurring on each<br />

site and the difficulty of obtaining accurate data from<br />

our suppliers.<br />

In 2007, we consumed 4.3 million KWh of electricity in our<br />

buildings and 5.0 million litres of fuel within our vehicle fleet.<br />

Gas consumption data from our offices is currently unavailable.<br />

Our operational carbon footprint was 9,287 tonnes of CO2.<br />

We will continue to monitor our emissions over the coming<br />

year and improve the coverage of the data we collect.<br />

68% of house building<br />

waste recycled<br />

Waste generated<br />

(tonnes)<br />

Recycled<br />

Landfill<br />

Waste and materials use<br />

2005 2006 2007<br />

<strong>Persimmon</strong> established its waste management policy in 2004.<br />

This policy sets out how we expect our operating businesses<br />

to handle waste on site, acknowledging that this represents<br />

our single biggest direct environmental impact. Our aim is<br />

to reuse as much material as possible on site, particularly<br />

bricks, soil and rubble from site demolition and segregate<br />

and recycle waste whenever possible. It also requires our<br />

operating businesses to think about how materials are<br />

ordered and used to reduce the amount of waste generated<br />

in the first instance.<br />

The ultimate aim of this policy is to reduce the amount<br />

of waste that we send to landfill each year. This has obvious<br />

benefits for the environment, but also reduces the costs<br />

of waste disposal to the business.<br />

In 2007, we generated 150,500 tonnes of house building<br />

waste. This represents 9.5 tonnes for every home we built.<br />

This is a small increase since last year (9.0 tonnes per home).<br />

However, the proportion of waste we recycled has increased<br />

to 68%. In other words only a third of the waste we generate<br />

now goes to landfill, approximately 3 tonnes per home.<br />

85.8<br />

42.3<br />

96.3<br />

54.4<br />

102.2<br />

48.3


Page 15 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Waste generated per home built<br />

(tonnes)<br />

10.8<br />

9.0<br />

9.5<br />

2005 2006 2007<br />

This year has seen us continue to promote responsible<br />

waste management throughout the Group. There is a greater<br />

awareness of these issues on our sites and waste management<br />

is now an integral consideration in planning our sites.<br />

In some instances, particularly on our larger developments,<br />

we have begun developing specific Site Waste Management<br />

Plans (SWMPs) in recognition of our obligations under<br />

the forthcoming Site Waste Management Plans Regulations<br />

scheduled to come into force in April 2008. SWMP’s will<br />

provide us with a formalised mechanism to record most<br />

of what we already do in reducing our site waste.<br />

The waste management services available to us affect<br />

whether we segregate our waste on site or whether this is<br />

done off site at a waste reprocessing unit. However, our well<br />

briefed site management teams are able to deal effectively<br />

with both situations to ensure we monitor the waste we<br />

generate and make sure the majority is recycled.<br />

Unless there are exceptional circumstances, all waste from<br />

remediation and ground working is recycled on site, for<br />

example by contouring and landscaping. If this is impossible,<br />

then we actively seek to transfer waste sub soil between our<br />

sites and it is only as a last resort that we send waste to landfill.<br />

As well as constantly looking for ways to improve our on<br />

site activities, we also consider waste issues during the design<br />

and planning process of our homes. Where we can, we look<br />

to order materials that are pre-specified to the size we need<br />

rather than cutting them on site – for example, most of the<br />

plasterboard we buy comes in made to measure sheets.<br />

Another good example is the use of pre-fabricated support<br />

beams instead of traditional timber joists. These use less timber<br />

and eliminate the need for on site measurement and cutting<br />

to size. These are used in virtually all of the homes we build.<br />

Medway Gate, Cuxton, Kent<br />

At this mixed use development we are aiding conservation by creating a specially designed conservation area<br />

and encouraging residents to participate in conservation initiatives. The development includes approximately<br />

six acres of new habitat that has been dedicated to help preserve a variety of wildlife, including an extensive<br />

Great Crested Newt population. This includes creating up to 13 pond areas, populated with local flora to encourage<br />

indigenous species. We have also provided residents with guidance on the role they can play, giving them a number<br />

of suggestions of specific actions they can take, for example, to plant particular plants and shrubs in their gardens<br />

that can provide nesting sites for birds.


Page 16 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building new communities<br />

With 34 regional businesses we understand local<br />

issues and can build developments where people<br />

want to live and communities can grow.


Page 17 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

We have 34 regional house building operating businesses.<br />

This local structure, with businesses located in the<br />

communities in which we build our homes, means we<br />

can be flexible during the planning and design process,<br />

engage with the local community and build developments<br />

in which people want to live. It also allows us to develop<br />

meaningful relationships with those authorities and other<br />

stakeholders that influence the design and layout of the<br />

developments we build.<br />

At a local level we contribute to the local economy by<br />

creating new jobs, supporting local businesses who supply<br />

labour and materials and developing better infrastructure.<br />

At a national level, we are working to meet the demand<br />

Greendykes, Edinburgh<br />

Planning applications for the construction/restoration<br />

of a new river channel and the residential development<br />

of approximately 22.5 hectares of land on the south-eastern<br />

edge of Edinburgh were submitted by the Niddrie Burn<br />

Restoration Project Client Body (incorporating <strong>Persimmon</strong><br />

<strong>Homes</strong>) in 2007. These are currently at an advanced stage<br />

in the City of Edinburgh Council and we expect planning<br />

consent to be granted in Spring 2008, with work<br />

commencing on the new River Corridor soon after.<br />

As part of the progression of these projects we undertook<br />

an extensive pre-application consultation process with the<br />

Council, a number of local interest groups and interested<br />

members of the general public and have <strong>continued</strong> to<br />

meet with various interested parties during the planning<br />

process.<br />

As part of this consultation process we have held public<br />

open days, attended a variety of public and local<br />

community meetings, undertaken site tours and had<br />

detailed discussions with specific interest groups.<br />

These activities have provided the community with<br />

an opportunity to influence and shape the project.<br />

Subsequently, we have been able to identify local issues<br />

for new homes by contributing to the social housing stock,<br />

building on brownfield land and finding innovative ways for<br />

first-time buyers and those on low incomes to buy houses.<br />

The Government’s Planning Policy Guidance (PPG) sets<br />

out the way in which developments should be designed<br />

and what should be included. Moreover, the Government<br />

is promoting the concept of sustainable communities to<br />

create thriving, vibrant communities which will improve<br />

everyone’s quality of life. We agree with the principle<br />

of these concepts, as it makes commercial sense for us to<br />

build communities in which people want to live, but the<br />

policies can make the planning system challenging and<br />

increase the time it takes to achieve planning permission.<br />

and quickly address emerging public concerns relating<br />

to the development. This has meant making a number<br />

of amendments to the original plans, for example,<br />

as part of the restoration of the Niddrie Burn, we have<br />

now included dedicated teaching areas along its banks<br />

to allow school children to study the ecology of the<br />

waterway, whilst avoiding steep banks.


Page 18 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building new communities<br />

<strong>continued</strong><br />

Inclusiveness and affordable housing<br />

There is a well recognised shortage of good quality affordable<br />

homes within the UK. As one of the country’s largest<br />

housebuilders we have a key role to play in helping the<br />

Government to deliver on its promise to increase the number<br />

of affordable homes, particularly for key workers such as<br />

nurses and teachers. Over 34% of our homes built in 2007<br />

were sold at a price of £150,000 or less.<br />

Being able to deliver affordable homes to housing<br />

associations is becoming more and more important, with<br />

the majority of the developments we now undertake having<br />

a social/affordable housing element to them, which we call<br />

partnership homes.<br />

The creation of Westbury Partnerships in 2006, has allowed<br />

us to significantly develop our capability in this area<br />

and our relationship with housing associations, building<br />

on the successful work of our <strong>Persimmon</strong> Partnerships<br />

business in Scotland. Westbury Partnerships activities focus<br />

on developing relationships with the public sector to<br />

enhance the Group’s ability to acquire and develop land sold<br />

by these bodies. Perhaps more importantly, it forms a centre<br />

Swarcliffe, Leeds<br />

We are building 366 new homes on previously developed<br />

land at Swarcliffe in Leeds. This area in east Leeds is<br />

being regenerated as part of a Private Finance Initiative<br />

in conjunction with Leeds City Council. These homes<br />

will provide for a diverse range of customers, from families<br />

on low incomes, to young couples and mature people.<br />

The housing will be modern and innovative, providing<br />

energy efficient homes that are warm, comfortable and<br />

economical to run.<br />

We have completed the first two phases of the<br />

development and they have proven extremely popular<br />

with local residents. These homes have been built<br />

beside retained council housing stock and have provided<br />

significant improvement to the area. As part of our<br />

involvement, we attend regular meetings with Swarcliffe<br />

residents and community groups, to ensure that further<br />

development enhances the local area as much as possible.<br />

Partnership homes built<br />

1,014<br />

1,039<br />

1,402<br />

1,967<br />

2004 2005 2006 2007<br />

of expertise within the Group on developing collaborative<br />

approaches with local authorities and housing associations<br />

and the development of partnership homes. This significantly<br />

strengthens our ability to build homes that are both sustainable<br />

and affordable and helps us to meet the Government’s target<br />

to build mixed used and inclusive communities.<br />

In 2007, we built 1,967 partnership homes for housing<br />

associations. This is a 40% increase from last year, and<br />

partnership homes now represent 12.4 % of our total<br />

building output.


Page 19 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

1,967 partnership homes<br />

for housing associations<br />

Garthamlock, Glasgow<br />

This is a major regeneration project in Glasgow,<br />

undertaken in conjunction with Glasgow City Council<br />

and Home Scotland Housing Association. The project<br />

involved the demolition and regeneration of a proportion<br />

of the Garthamlock area, as well as the creation of 118<br />

affordable homes and 690 homes for private sale, together<br />

with a new neighbourhood and shopping area.<br />

<strong>Persimmon</strong> Partnerships has developed a close relationship<br />

with the local Garthamlock community since the project<br />

was first announced in 2001. This has involved holding<br />

open days, issuing regular updates and newsletters, and<br />

frequent meetings with the Community Council,<br />

Residents Association and local church groups.<br />

We have also established good relationships with both local<br />

schools in the area, having participated in school fund<br />

raising projects and given talks to the children, for example,<br />

on building site health and safety. A reflection of these<br />

community ties is that <strong>Persimmon</strong> Partnerships is relocating<br />

its offices to Garthamlock and has recently received a<br />

commendation award for community involvement at the<br />

<strong>Homes</strong> for Scotland Innovation Awards 2007.<br />

Anchor Mill, Paisley<br />

The restoration and renovation of Paisley’s Grade A<br />

listed cotton mill includes 60 luxury apartments and<br />

23,000 sq ft of business space. Originally built in 1886,<br />

the mill is situated adjacent to the White Cart River with<br />

views of Paisley Abbey.<br />

The restoration of Anchor Mill was a public and private<br />

partnership between <strong>Persimmon</strong>, the Phoenix Trust,<br />

Renfrewshire Council, Scottish Enterprise Renfrewshire,<br />

Safeway/Morrisons and Historic Scotland. It was also<br />

supported by Paisley Vision which works to promote<br />

the interests of Paisley. The partnership’s aim was to create<br />

a district where people could live, work and play. It has<br />

given people renewed confidence and pride in their<br />

community and its landmarks.<br />

As a consequence, Anchor Mills was recognised by the<br />

<strong>Homes</strong> for Scotland, the Home Builders Federation<br />

(HBF) and the Prince’s Foundation Recognition for<br />

the Build Environment as one of the best recent<br />

developments by a major home builder. More information<br />

can be found at www.princes-foundation.org


Page 20 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Building new communities<br />

<strong>continued</strong><br />

Field of Hope<br />

The Yorkshire operating business recently launched<br />

a unique ‘Field of Hope’ initiative at its Staynor Hall<br />

development to raise funds for Marie Curie Cancer<br />

Care. This utilised a piece of land at the front of our<br />

development, in which people were invited to plant their<br />

own daffodil bulb in remembrance of a friend or loved<br />

one to create the ‘Field of Hope’. By involving the local<br />

community in the development, we raised funds for<br />

Marie Curie and improved the appearance of this<br />

new development.<br />

Community investment<br />

Our community and charity work supports a number<br />

of health charities and opportunities for children. At the<br />

most basic level, healthy communities make for healthy<br />

businesses so we aim to play our part in them. There are also<br />

clear benefits from improvements to our public profile and<br />

reputation. But perhaps the strongest motivator is internal;<br />

taking part in community activities is popular with our staff.<br />

In a competitive environment for recruitment and retention,<br />

this kind of positive experience can make an important<br />

difference to our performance.<br />

Last year, we donated over £210,000 to charitable<br />

activities, a significant proportion of which was donated<br />

to <strong>Persimmon</strong>’s nominated charity of the year, Marie Curie<br />

Cancer Care, and Charles Church’s nominated charity,<br />

Dreams Come True. In addition, fundraising activities<br />

by our staff around the Group generated over £340,000<br />

of donations to a variety of charities and good causes.<br />

We have <strong>continued</strong> to support the York Minster<br />

Development Campaign. We are donating £700,000 over<br />

10 years to help train apprentices in the ancient craft skills<br />

which will be used to repair and conserve the East Front<br />

of York Minster. This project has a close affinity to our business.<br />

As well as charitable donations, each of our operating<br />

businesses donates to local community projects through<br />

the donation of staff time, labour or materials. This reflects<br />

the regional nature of our business and allows management<br />

and employees in each local area to get involved in initiatives<br />

that resonate with their particular area and business.


Page 21 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Charitable fundraising<br />

£340,000<br />

SongBird nest boxes<br />

The Anglia region launched an initiative with the<br />

wildlife charity SongBird Survival to offer all new home<br />

purchasers a free nest box for their new house or garden.<br />

Customers can choose from six different boxes, each<br />

specifically designed to meet the requirements of different<br />

birds. The aim of the initiative was to encourage and<br />

support garden birds in the newly established communities<br />

that we build, whilst raising the awareness of the need<br />

to support the garden bird population.<br />

Back to the Shop Floor<br />

During 2007, we were pleased to continue our corporate<br />

support of the Marie Curie Cancer Care ‘Back to the<br />

Shop Floor’ initiative. This initiative encourages managers<br />

to go back to the shop floor for the day, in return for<br />

charitable sponsorship. Our support meant that all the<br />

promotional and management costs of this initiative were<br />

covered, enabling all the money raised to go towards<br />

funding Marie Curie nursing homes. It also helped<br />

to highlight career opportunities within <strong>Persimmon</strong><br />

and the house building industry more generally.<br />

A number of our directors took part in the initiative,<br />

including our Group Chairman, John White, and Group<br />

Development Director, David Bryant.<br />

Envelope initiative<br />

The North West operating business undertook their<br />

Envelope initiative that encouraged customers to donate<br />

either £20 or £40 to Marie Curie Cancer Care and in<br />

return <strong>Persimmon</strong> provided between £100 and £200<br />

towards numerous features linked with their purchase<br />

including legal fees, turfed gardens or elements of our<br />

Finishing Touches ranges.


Page 22 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Promoting skills<br />

Our business relies on the skills and technical<br />

ability of our employees to deliver quality homes<br />

and strong Company performance.


Page 23 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Our people are<br />

our greatest asset<br />

Employees numbers<br />

4,602 4,613<br />

5,349<br />

5,501<br />

2004 2005 2006 2007<br />

For any business, a strong performance relies on the strengths<br />

of its people. To develop a good team it is essential to recruit<br />

the right people, keep them motivated and create the right<br />

environment for them to perform well. Indeed, in an<br />

industry such as ours that relies on the skills and technical<br />

ability of our employees, making sure we invest in the<br />

training and development of our employees is crucial<br />

to our success now and in the future.<br />

<strong>Persimmon</strong> directly employed an average of 5,501 people<br />

during 2007, of whom 31% are female. We have 24 women<br />

directors within the business, accounting for 12% of our<br />

management team. In addition, we employ a considerable<br />

number of people on our sites as sub-contractors.<br />

Our Group HR function provides strategic and policy<br />

direction, as well as guidance and practical support for the<br />

business. This includes the formulation of relevant policies<br />

and procedures for implementation across the Group.<br />

However, much of the day-to-day management of our<br />

people rests with each operating business. This approach<br />

provides us with the flexibility to ensure local issues<br />

can be handled by people with specific knowledge<br />

of the circumstances.<br />

We have a formal performance review process for our<br />

employees, which is undertaken annually. This forms the basis<br />

of the reward and remuneration of our staff. In addition, our<br />

managers are encouraged to continually appraise their staff<br />

and in the majority of our offices we have an open-door<br />

management approach.<br />

Employees gender breakdown<br />

(%)<br />

Female<br />

Male<br />

Every salaried employee is given an employee Handbook,<br />

which outlines our employment policies and procedures<br />

including those relating to equal opportunities and diversity,<br />

whistle blowing, harassment and bullying, flexible working,<br />

alcohol and drugs, as well as a clear statement of our<br />

grievance and disciplinary policy.<br />

Recruitment and reward<br />

Recruitment is undertaken on a local basis and we use<br />

a variety of different media to attract candidates. We have<br />

a careers website www.persimmonjobs.com, which highlights<br />

vacancies across the Group and enables potential recruits<br />

to find out more about us.<br />

Applicants are also able to submit their application online.<br />

This simplifies the recruitment process and improves the<br />

accessibility of information for applicants. Since its launch in<br />

October 2006, this initiative has been particularly successful<br />

and popular with increasing numbers of our applications<br />

coming via our website.<br />

We recognise the benefits of a stable and committed<br />

workforce. We offer rewarding careers and encourage<br />

our employees to stay with us for a long time. We offer<br />

all our salaried staff a competitive remuneration package<br />

together with a range of additional employee benefits,<br />

including bonus payments depending upon individual<br />

and company performance, commission schemes for sales<br />

staff, private health care, and a contributory pension<br />

scheme with life assurance. We also offer a staff discount<br />

on new home purchases.<br />

69<br />

31


Page 24 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Promoting skills<br />

<strong>continued</strong><br />

Encouraging diversity within the workforce offers many<br />

benefits in terms of sharing skills, attracting, recruiting and<br />

retaining people from a wide talent base and reducing the<br />

costs of labour turnover. We are keen to encourage any<br />

candidate to explore the wide range of careers available in<br />

what is an extremely challenging and constantly changing<br />

industry.<br />

We take a balanced approach to recruitment focused on<br />

employing people with the best skills and experience<br />

for the job, regardless of race, religion, disability, sexual<br />

orientation or age. However, we also acknowledge the<br />

benefits of retaining knowledge and experience within<br />

our business and encourage all our staff to fulfil their<br />

potential with us.<br />

Over the coming year we will be reviewing a number<br />

of policies and procedures including a Succession Planning<br />

Model and Induction process for new staff. We will also be<br />

producing an HR Manual to assist the operating businesses in<br />

the management of their staff by ensuring they have ready<br />

access to policies, guidance notes and procedures.<br />

Developing our employees<br />

and promoting skills<br />

We are keen to ensure employees are given all the necessary<br />

training to perform their jobs competently and safely. We have<br />

an extensive programme of IT and Health & Safety Training.<br />

In addition, to maintain our competitive position within the<br />

market we invest heavily in sales training and this, coupled<br />

with customer care training, has been used extensively<br />

during the year.<br />

6,765<br />

Training Days<br />

Training days<br />

5,982<br />

6,282<br />

6,714<br />

6,765<br />

2004 2005 2006 2007<br />

In 2007, we provided 6,765 days of training for our<br />

employees (2006: 6,714). This equated to 1.2 days for every<br />

employee, an increase from the previous year not withstanding<br />

the completion of a number of focused training initiatives<br />

undertaken in previous years.<br />

We are contributors and supporters of the ConstructionSkills<br />

(formerly the CITB) recognising that as a large employer in<br />

the house building industry we have a role to play in<br />

promoting skills across the industry. In addition, we are<br />

committed to the ConstructionSkills Certification Scheme<br />

(CSCS) and having a workforce (including sub-contractors<br />

working on our sites) with a recognised qualification such as<br />

the CSCS ‘Skills Card’.<br />

The CSCS card is the industry's largest scheme and, at<br />

present, covers 220 occupations including trades, technical,<br />

supervisory and management. CSCS cards list the holder’s<br />

qualifications and are valid for either three or five years.<br />

It also shows they have health and safety awareness as all<br />

cardholders have to pass the appropriate ConstructionSkills<br />

Health and Safety Test.<br />

CSCS is now firmly established as the means for individuals<br />

to prove their competency to undertake work on our sites.<br />

The last audit of our workforce in 2007 showed that 75%<br />

of our direct and 66% of our indirect workforce were carded.<br />

We are committed, through our membership of the Home<br />

Builders Federation’s (HBF) Major House Builders Group<br />

(MHBG), to making sure that all our direct and indirect<br />

workers hold a CSCS Card and are fully qualified by 2010.


Page 25 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Training the people that work with us<br />

We recently held a heath and safety seminar for over<br />

200 staff and contractors in our South West operating<br />

business.<br />

Held at the Loop Conference Centre in Exeter, the event<br />

provided sub-contractors with information on the<br />

standards required in order for them to maintain their<br />

status as approved contractors, as part of <strong>Persimmon</strong>’s<br />

commitment to the ConstructionSkills Certification<br />

Scheme (CSCS).<br />

Presentations were provided by a senior health and<br />

safety advisor, alongside representatives from CSCS<br />

and Business Link.<br />

To support our commitment to developing skills within<br />

the house building industry we have <strong>continued</strong> to support<br />

and develop our ‘Homing in on Opportunity’ Initiative.<br />

This aims to encourage young people to consider a career<br />

in the house building industry and it forms a key component<br />

of our approach to training and development. It focuses<br />

on three areas:<br />

• Encouraging a career in house building:<br />

In 2000, we developed a career pack in conjunction with<br />

the Careers and Education Business Partnership (EBP)<br />

aimed at Key Stage 4 pupils to encourage them to consider<br />

a career in the construction industry. The activities outlined<br />

cover a wide range of abilities and curriculum areas and<br />

therefore can be incorporated into traditional subject<br />

areas as well as careers sessions. They are ideal topics for<br />

citizenship or industry day activities.<br />

The career pack is still being used with schools;<br />

however, we are in the process of reviewing the pack<br />

and identifying ways in which we can make it more<br />

interactive, for example through the use of multimedia<br />

and the internet, and more relevant to today’s young<br />

people. The current pack can be downloaded at<br />

www.persimmonjobs.com/schools_career.pdf and we<br />

will report in more detail on new innovations to the<br />

pack next year.<br />

Apprenticeships 2004 2005 2006 2007<br />

No. of apprentices 409 393 324 267<br />

% of workforce 6% 9% 6% 5%<br />

No. completing apprenticeships 49 53 116 94<br />

• Taking on apprentices:<br />

We continue to recruit and train a large number of<br />

apprentices. In 2007, we had 267 apprentices within the<br />

business, each of whom was offered the opportunity to<br />

study for a Vocational Qualification (NVQ or SNVQ)<br />

in a relevant trade. Apprentices now account for 5%<br />

of our workforce, broadly the same proportion as the<br />

previous year (2006: 6%).<br />

To reinforce our commitment to encourage young people<br />

to take up apprenticeships with us, we run an ‘Apprentice<br />

of the Year’ scheme. This recognises significant achievements<br />

made by apprentices coming to the end of their formal<br />

training. All second and third year apprentices are eligible<br />

to enter whether they specialise in bricklaying, carpentry<br />

or any other core discipline. James Lilley, an apprentice<br />

bricklayer from <strong>Persimmon</strong> <strong>Homes</strong> South Yorkshire,<br />

won this year’s award, which came with a £1,000 prize.


Page 26 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Promoting skills<br />

<strong>continued</strong><br />

Skills in Jobs, Bilston Development Project<br />

<strong>Persimmon</strong> <strong>Homes</strong> West Midlands is backing the Bilston<br />

Development Project and City of Wolverhampton<br />

College’s ‘Skills in Jobs’ project. The six-week programme<br />

is aimed at people from across the Black Country who<br />

attend Bilston Development Projects’ construction<br />

workshops at Millfields Road, who are keen to learn new<br />

skills and find employment in the construction industry.<br />

The course provides students with health and safety<br />

accreditations, a professional CV and training on plumbing,<br />

carpentry, plastering, painting and decorating, health and<br />

safety, customer service and interview techniques.<br />

Site visits in partnership with key employers in the area<br />

form an important part of the programme of activity and<br />

this is where <strong>Persimmon</strong> <strong>Homes</strong> has become involved.<br />

As part of our support, a group of students were invited to<br />

a tour of our Mitchell’s Brook development at Cape Hill<br />

Village, Smethwick, to educate them about the range of<br />

opportunities in the house building industry and<br />

demonstrate construction work in progress.<br />

Cheryl Welsh, project manager for Heantun Housing<br />

Association Limited, which is delivering the Bilston<br />

Development Project adds: “In a nutshell, the ‘Introduction<br />

to Construction’ initiative is about getting local people<br />

to a point where they can effectively compete for a job.<br />

We want to raise the confidence of our students to allow<br />

them to enter into training or re-enter the employment<br />

market. We are grateful to <strong>Persimmon</strong> for the help and<br />

support they have shown towards our students”.<br />

• Developing managers of the future:<br />

The <strong>Persimmon</strong> Management Development Programme<br />

offers a genuine fast track into senior management within<br />

the <strong>Persimmon</strong> Group. It is open to anyone with a degree<br />

or HND qualification, ideally in a construction related<br />

field. The programme lasts for a year and provides graduates<br />

with placements in four core areas: Land & Planning,<br />

Technical, Construction and Sales & Marketing.<br />

This programme is combined with residential courses at<br />

our head office, and an introduction to our key support<br />

functions including Customer Care, Legal and Finance.<br />

Each graduate is mentored throughout their training and<br />

personal development opportunities are discussed at regular<br />

training reviews. We are pleased to report that this scheme<br />

has <strong>continued</strong> to grow this year with 15 graduates taken<br />

onto the programme in 2007 (compared to 12 in 2006).<br />

We also run a leadership development programme for<br />

managing directors. In 2007, seven Managing Directors<br />

attended the week long course held in conjunction<br />

with the Leadership Trust. The programme is especially<br />

useful for those recently promoted to the MD role or<br />

candidates whom we expect to promote in the near future.<br />

The programme has been very well received by the delegates<br />

and the feedback from their line managers has also been<br />

equally positive.<br />

During 2007, we piloted a ‘Senior Management<br />

Development Programme’ aimed at directors and managers<br />

of our regional operating businesses. The main focus<br />

of the course was how they manage their people with a<br />

view to improving performance, morale and engagement.<br />

Three pilot courses were held in 2007, one in each Division.<br />

They were well received by delegates and the intention<br />

is to roll the course out to all operating businesses in 2008.


Page 27 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Interview with Emma Taylor,<br />

Graduate of the Year<br />

When did you join <strong>Persimmon</strong>?<br />

I joined <strong>Persimmon</strong> Midlands in September of 2006<br />

straight after graduating from university<br />

Why were you attracted to <strong>Persimmon</strong> and the<br />

Graduate Programme?<br />

I was attracted mainly to the diversity of the development<br />

programme, it was arranged to ensure that I could spend<br />

time and gain experience in all areas of the business.<br />

I felt this would be an excellent grounding for a career<br />

in the construction industry.<br />

What is your background/qualifications?<br />

What is your current role?<br />

My background is in Accounting, I gained a 1st Class I am currently a Sales Administrator, responsible for<br />

Honours Degree in Accounting, Financial Management recording all sales activity and reporting the weekly figures<br />

and Business Studies from the University of Sheffield. to head office. I deal with all reservations, cancellations and<br />

finishing touches that come in from site, recording these on<br />

What roles and training have you done whilst<br />

the system and doing any necessary paperwork. I also liaise<br />

on the programme?<br />

with the legal department ensuring timely exchange and<br />

Whilst on the programme I spent time in all departments completions on all plots.<br />

in the Company, this included two main placements, in land<br />

…and on winning the Graduate of the Year Award?<br />

and sales, alongside time spent in customer care, surveying,<br />

buying, legal, construction & technical departments. <strong>Persimmon</strong> offers great opportunities for those wanting<br />

During my placements I became fully involved in the to progress up the ladder quickly. I am proof that the house<br />

daily activities of each department.<br />

building industry isn’t just a job for the boys and if you<br />

show commitment and hard work, in terms of progression,<br />

What has been your highlight and greatest<br />

the sky really is the limit. I’m thrilled to be crowned<br />

achievement since joining <strong>Persimmon</strong>?<br />

winner and look forward to a rewarding career with<br />

The best achievement for me during my time spent in the Company.<br />

<strong>Persimmon</strong> so far has to be being awarded the Graduate<br />

of the Year Award. There were so many highlights<br />

throughout the programme, it was thoroughly enjoyable,<br />

especially the time spent in York Head Office, where not<br />

only did I get to meet the other graduates, but we were<br />

given a unique opportunity to talk to senior directors and<br />

get involved in activities that allowed us to gain a better<br />

insight into the <strong>Persimmon</strong> Group as a whole.


Page 28 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Ensuring a healthy and safe<br />

working environment<br />

Safety is an integral part of the way we work,<br />

affecting almost every decision we make.


Page 29 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Health and safety is a top priority for <strong>Persimmon</strong>.<br />

We work very hard to make sure that the people who<br />

come into contact with our operations, including our<br />

employees, sub-contractors, visitors and the general public<br />

are safe. It is an integral part of the way we work and we<br />

factor health and safety into the way we run our business,<br />

particularly those decisions relating to site operations.<br />

Our Group Health and Safety policy and manual have<br />

been significantly revised to ensure their relevance to our<br />

business operations in order to take into account changes<br />

in legislation, such as the new Construction, Design and<br />

Management (CDM) Regulations that were introduced<br />

in April 2007. These regulations place a greater emphasis<br />

on us to make sure that all construction projects we<br />

undertake are carefully planned, designed and managed<br />

throughout their duration.<br />

We have expanded our health and safety team from<br />

15 advisers to 19 in 2007 and this enables the Group to<br />

provide more support to our operating businesses. Our<br />

Group Development Director, David Bryant remains our<br />

main board director responsible for overall Health and Safety.<br />

He is supported by the Group Health and Safety Director.<br />

Health and safety risks are reviewed at Group level<br />

and this process in turn sets out the objectives and key<br />

actions for the coming year. In addition individual operating<br />

businesses are responsible for putting together their own<br />

yearly health and safety action plans.<br />

Health and Safety matters are discussed and reviewed at<br />

various other levels within the Group including bimonthly<br />

divisional and operating business management meetings,<br />

quarterly Construction Reviews and Safety Committee<br />

meetings. This process allows us to monitor the ongoing<br />

health and safety performance of the operating businesses and<br />

allows them to set their own targets for improvement such as<br />

accident reduction, in order to meet any Group objectives.<br />

To support our operating businesses, in March 2007 we<br />

provided training to all senior managers on changes in our<br />

approach. The training made clear their responsibilities as<br />

duty holders under the new CDM Regulations, Health and<br />

Safety legislation and the Corporate Manslaughter Act that<br />

comes into force in April 2008.<br />

Promoting Health and Safety awareness<br />

To enable us to continually improve our management<br />

of health and safety it is vital that management and staff<br />

at all levels are involved. As part of this process, divisional<br />

and operating business boards of directors carry out regular<br />

visits to sites and offices so that they can engage with<br />

employees and promote awareness of our approach to their<br />

responsibilities.<br />

This process is supported by health and safety advisors<br />

carrying out regular on-site ‘Tool box’ talks on different<br />

topics such as working at height, manual handling, traffic<br />

management and general site management.<br />

In order to further enhance our communication in this<br />

area, we have launched our Safe Teams Avoid Risk (STAR)<br />

campaign. STAR is a way of communicating to all our<br />

employees the health and safety issues which should be<br />

at the forefront of everything we do.<br />

As part of the STAR campaign, we have also launched our<br />

first internal health and safety magazine for staff. Entitled<br />

‘Safety Matters’ the magazine has been designed to provide<br />

employees with an easy to read and informative guide to<br />

health and safety legislation and issues, ensuring that everyone<br />

in the Group is kept up to date in this area.


Page 30 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Ensuring a healthy and safe<br />

working environment<br />

<strong>continued</strong><br />

Highlights of the first issue included an insight into where<br />

health and safety began and a risk assessment case study aimed<br />

at demystifying this common health and safety procedure.<br />

Our Group Health and Safety Department continue to<br />

undertake significant amounts of health and safety training<br />

across the business. In 2007, we delivered 938 days of health<br />

and safety training to our employees and sub-contractors to<br />

ensure they are up to date on current working practices and<br />

Group procedures. This was a 61% increase in training days<br />

over 2006, to raise the competency levels of employees in our<br />

business to meet the challenges of the new CDM regulations.<br />

To emphasise our commitment to increasing awareness and<br />

improving the health and safety performance of everybody<br />

involved in our business activities, in addition we held over<br />

30 seminars for contractors and suppliers on key health and<br />

safety issues.<br />

Our ongoing use of the CITB Site Managers Safety Training<br />

Scheme (SMSTS) qualification for construction personnel<br />

is vital for the safe management of our on site operations.<br />

RIDDORS per 1,000 employees<br />

11.9<br />

2003<br />

11.5<br />

2004<br />

2005 2006 2007<br />

Health and Safety performance<br />

In 2007, we had 172 incidents reportable under the UK<br />

Reporting of Incidents, Diseases and Dangerous Occurrences<br />

Regulations 1995 (RIDDOR). This remains unchanged<br />

since 2006, even though we had a large increase in<br />

employees and sub-contractors working on a substantially<br />

increased number of sites during 2007. This reflects our<br />

continuing commitment to Health and Safety across the<br />

Group. Our accident rate was 12.2 per 1,000 employees,<br />

(reduced from 12.9 in 2006) which shows we continue to<br />

make progress in this vital area of our business.<br />

During 2007, we rolled out a new audit process to monitor<br />

our revised health and safety management arrangements.<br />

This replaces our previous PASS system which was based<br />

on audit questionnaires, supplemented by interviews with<br />

management and staff and was designed to measure the<br />

percentage level of implementation of our health, safety<br />

and welfare management systems by each of our operating<br />

businesses.<br />

The new STAR audits focus much more heavily on<br />

encouraging continuous improvement within our operating<br />

businesses, with a much greater emphasis on the provision of<br />

evidence and the measurement of performance against key<br />

performance indicators. We will report in more detail on the<br />

results of these audits in next year’s report once they have<br />

been established across the Group.<br />

10.3<br />

12.9<br />

12.2


Page 31 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Monthly site inspections are undertaken by external<br />

health and safety advisors who monitor operational working<br />

practices and measure performance levels against industry<br />

best practice not simply minimum standards, in construction<br />

activities, such as working at height and manual handling.<br />

Based on the accumulative results of each inspection, our<br />

operating businesses can achieve annual Gold, Silver or<br />

Bronze Awards, where Gold is over 90% compliance, Silver is<br />

over 80% and Bronze is over 70%. If an average of less than<br />

70% compliance is achieved then no award is given.<br />

Site inspections 2003 2004 2005 2006 2007<br />

Gold Award 0 2 4 10 12<br />

Silver Award 23 31 30 25 24<br />

Bronze Award 9 3 0 0 0<br />

Our operating businesses continue to achieve high standards<br />

of health and safety on-site, with a third of operating<br />

businesses achieving over 90% compliance with best practise.<br />

During 2007 we held refresher meetings with all our<br />

external health and safety advisors to inform them of our<br />

requirements for site inspection/accident investigation<br />

and reporting. This included the use of the Site Help Card<br />

Booklets that provide guidance on the operational and<br />

administration standards required to achieve an award,<br />

which in turn ensures consistency in marking and reporting.<br />

We continue to have a proactive relationship with the<br />

Health and Safety Executive (HSE). We received one<br />

enforcement action during 2007, compared to 10 in 2006<br />

reflecting what we consider is our improved operational<br />

practice in this area and our ‘positive intervention’ approach.<br />

2005 2006 2007<br />

Prosecutions 1 0 1<br />

Prohibition Notices 4 7 0<br />

Improvement Notices 0 3 1<br />

Unfortunately, we were subject to one health and safety<br />

prosecution during 2007. This related to an incident that<br />

occurred at Space4, prior to our acquisition in 2006. As the<br />

current owner of this business we were liable for this incident.<br />

However, at the time the incident occurred the former<br />

Westbury business was not subject to the robust health and<br />

safety policies and procedures of the <strong>Persimmon</strong> Group.


Page 32 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Caring for our customers<br />

Buying a home is an important emotional<br />

and financial decision for all of us. We try to<br />

ensure the process is as stress free as possible<br />

for our customers.


Page 33 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Choosing a home is one of the most important decisions that<br />

our customers will make, both emotionally and financially.<br />

We believe that we have a responsibility to help them make<br />

the right choice and provide the right level of service to<br />

make this process as stress free and straightforward as possible.<br />

Our sales teams are trained to offer customers expert guidance<br />

and practical assurance throughout the buying process. Our<br />

customer advisors provide regular telephone calls to update<br />

customers on progress of their new homes and are trained to<br />

respond quickly and efficiently to any queries they may have.<br />

We supply all our customers with a Masterfile which is<br />

designed to guide our customers through the buying process.<br />

This includes everything that our customers need to know<br />

from reserving a property to choosing fixtures and colour<br />

schemes and moving in. It also offers our customers guidance<br />

on health and safety issues in the home and on site.<br />

Depending on how far a building has progressed, every<br />

<strong>Persimmon</strong> and Charles Church home is offered with a<br />

choice of fixtures and fittings encompassing the latest designs<br />

from leading manufacturers. Through our ‘Finishing Touches’<br />

initiative, we also offer our customers flexibility and choice<br />

in how their home will look.<br />

We also acknowledge that after we have completed a sale, our<br />

obligation to our customers continues. This is outlined in the<br />

<strong>Persimmon</strong> Pledge – our customer charter. A few days after<br />

moving in, members of our on-site construction team will<br />

visit to ensure that each customer is happy with their home<br />

and to resolve any immediate issues that may have arisen.<br />

Customers can also access a dedicated customer care helpline<br />

and a 24 hour emergency hotline in the event of a failure of<br />

any service supply, such as electricity, gas or water. We also<br />

offer customers a weekly construction clinic whilst we have<br />

construction activity on site.<br />

Ensuring quality<br />

We undertake regular site inspections during the building<br />

process to monitor the quality of the homes we build.<br />

This is supported by building regulation monitoring<br />

undertaken by the local authority or the National House<br />

Building Council (NHBC). We also provide free of charge<br />

a 10 year building warranty on each home from a new home<br />

warranty provider such as the NHBC.<br />

Before building completion, a comprehensive 24 point<br />

pre-plastering inspection is carried out by the site manager<br />

and a senior member of the construction department. This<br />

inspection includes a check on foundations, plumbing,<br />

wiring, blockwork and cavities.<br />

In addition, we have a sub-contractor control list which<br />

sets the criteria for certain quality standards, which each<br />

sub-contractor agrees to meet. These quality standards provide<br />

another control within the overall quality control process.<br />

Prior to each home being released to the customer it is<br />

inspected by our sales and construction staff and often a local<br />

office director. A member of our staff then provides a new<br />

home demonstration of the fixtures, systems and appliances<br />

fitted. We provide a Quality Assured Certificate for insertion<br />

into the customer’s Masterfile on the day of completion.


Page 34 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Caring for our customers<br />

<strong>continued</strong><br />

We recognise that of the thousands of new homes we<br />

sell each year, there will inevitably be teething problems,<br />

often caused by the house drying out following its<br />

occupation.We provide our customers with a ‘one month<br />

inspection form’ which allows customers to inform us<br />

of any problems. On receiving this information we will<br />

endeavour to complete all agreed items within 28 days.<br />

We are in the process of piloting a number of initiatives<br />

across the Group to find ways to further improve the quality<br />

of our homes and our customer services, for example by<br />

providing a ‘special team’ to deal immediately with customers<br />

issues and requests and finding effective ways to mentor<br />

customers through the building process. We will report in<br />

greater detail on these initiatives in next year’s report.<br />

Customer satisfaction<br />

We have invested heavily in training our staff to improve<br />

customer service. We have also implemented systems<br />

that allow us to monitor how well we are performing.<br />

We measure the satisfaction of our customers in a number of<br />

ways and information is collated and reported to management<br />

teams within our operating businesses on a weekly basis and<br />

to Group management on a monthly basis. This detailed level<br />

of management information allows us to identify particular<br />

trends and issues upon which we can focus our efforts.<br />

We measure customer satisfaction in two ways: through<br />

internal ‘new home satisfaction surveys’ and through external<br />

customer satisfaction surveys undertaken by the NHBC.<br />

Customers that would recommend<br />

<strong>Persimmon</strong> to a friend<br />

(%)<br />

86 86 86<br />

2005 2006 2007<br />

The latter is part of a broader commitment by <strong>Persimmon</strong> to<br />

work with the house building industry to provide management<br />

information to help improve levels of customer satisfaction and<br />

meaningful comparisons between house building companies.<br />

The NHBC survey is sent to customers approximately<br />

nine months after completion. The questionnaire includes<br />

eight questions covering various areas of customer<br />

satisfaction. <strong>Persimmon</strong> is pleased to participate in this<br />

survey and agrees that ensuring and improving customer<br />

satisfaction is critical within the industry.<br />

Our internal questionnaire asks our customers 10 questions<br />

to determine how satisfied they are with their new home.<br />

These include questions relating to the build process, the<br />

level of information provided to them, the ease with which<br />

problems could be reported, our speed of response and their<br />

overall satisfaction. Information from these surveys is collated<br />

centrally usually six to eight weeks after customers move into<br />

their new home and monitored at both an operating business<br />

and Group level.<br />

Our surveys have shown a good level of customer satisfaction<br />

with our homes and our service. In 2007, 86% of our<br />

customers said they would ‘recommend <strong>Persimmon</strong> to a<br />

friend’, continuing the trend of the past three years. Whilst<br />

we are encouraged with this high level of satisfaction, we<br />

recognise there is still more we can do and we will continue<br />

our efforts in the future.


Page 35 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Next steps<br />

During 2007, we developed a new approach to sustainability. Our six key responsibilities provide a set of guiding<br />

principles for the Group on which we can build and improve our performance. We have strengthened our Governance<br />

arrangements, in particular with the appointment of a non-executive Director Neil Davidson to chair the Corporate<br />

Responsibility Committee.<br />

We have begun the process of raising the profile of these issues and our primary objective during 2008 is to embed<br />

our six key responsibilities further into the business. By implementing a consistent approach across our 34 operating<br />

businesses, with sustainability being part of what we do every day, we will contribute to the continuing success of<br />

<strong>Persimmon</strong> and enhance its reputation in keeping with its position as one of the UK’s leading housebuilders.<br />

For 2008, we have set eight objectives:<br />

Sustainability<br />

Increase awareness of our Sustainability Policy across the<br />

Group and communicate our six key responsibilities to our<br />

employees and sub-contractors.<br />

K.P.I.s<br />

Review our Key Performance Indicators and reporting<br />

structures to ensure these better reflect our sustainability<br />

responsibilities.<br />

Best Practice<br />

Develop a mechanism for effectively sharing best practice<br />

on sustainability issues across the Group, particularly in<br />

relation to features that can be incorporated into the homes<br />

we build.<br />

Sustainable homes<br />

Determine the implications of the Government’s Code<br />

for Sustainable <strong>Homes</strong> for the business and review the<br />

opportunities to develop a consistent approach for meeting<br />

these standards across the Group.<br />

Waste<br />

Reduce the amount of waste we generate and send<br />

to landfill.<br />

Customer Care<br />

Continue to improve our customer satisfaction and the<br />

build quality of our homes.<br />

Health and Safety<br />

All our operating businesses senior management will receive<br />

Health and Safety training that is externally accredited<br />

by 10SH, APS or ConstructionSkills, in addition to in<br />

house training.<br />

Progress<br />

Join the NextGeneration initiative, a multi-stakeholder<br />

initiative designed to drive best practice in sustainability<br />

into the heart of the residential development industry in<br />

the UK, supported by WWF, Insight Investment and the<br />

Housing Corporation.


Page 36 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Feedback<br />

This Sustainability Report relates to the period from the 1st January<br />

2007 to 31st December 2007. Information provided covers all of our<br />

house building operations and provides a transparent account of our<br />

sustainability performance and how we address the social, ethical and<br />

environmental impacts of our business.<br />

More detailed information on how we manage sustainability can<br />

be found on the Corporate Responsibility pages of our website at:<br />

www.persimmonhomes.com.<br />

Further information about the Group can be found in our 2007<br />

Annual Report and Accounts.<br />

We value your feedback on our approach to Sustainability and<br />

would appreciate your comments on this report. You can email<br />

us at feedback@persimmonhomes.com or write to:<br />

Neil Francis<br />

Company Secretary<br />

<strong>Persimmon</strong> Plc<br />

<strong>Persimmon</strong> House<br />

Fulford<br />

York YO19 4FE


Page 37 <strong>Persimmon</strong> Plc<br />

Sustainability Report 2007<br />

Sustainability Data Table<br />

Units 2003 2004 2005 2006 2007<br />

Housing completions No. 12,163 12,360 12,636 16,701 15,905<br />

ENVIRONMENT Units 2003 2004 2005 2006 2007<br />

Eco<strong>Homes</strong> built No. – – – – 1,539<br />

Average SAP rating<br />

Appliances installed with an energy<br />

– 92.3 93.5 94.5 90.6*<br />

efficiency rating of A or B % – – 92% 99% 99%<br />

Total waste generated Thousand<br />

tonnes – – 128.1 150.7 150.5<br />

Waste recycled Thousand<br />

tonnes – – 85.8 96.3 102.2<br />

Waste generated per dwelling constructed Tonnes – – 10.8 9.0 9.5<br />

<strong>Homes</strong> built on brownfield land No. 6,082 6,340 7,141 9,352 8,906<br />

Percentage of homes built on brownfield land % 50% 51% 57% 56% 56%<br />

Trees planted (including structural planting) No. 29,000 28,000 57,496 56,518 85,472<br />

Trees planted per home No. 2.4 2.3 4.6 3.4 5.4<br />

Environmental prosecutions No. 0 1 0 0 2<br />

HEALTH & SAFETY Units 2003 2004 2005 2006 2007<br />

No. of RIDDOR reportable incidents No. 159 146 133 172 172<br />

RIDDOR’s per 1,000 employees<br />

Operating businesses achieving bronze<br />

No. 11.9 11.5 10.3 12.9 12.2<br />

or above standard PASS (Site inspection) % 100% 100% 100% 100% 100%<br />

Health & Safety Executive prosecutions No. 2 1 0 0 1<br />

Health & Safety Executive interactions No. – – 89 92 64<br />

WORKING AT PERSIMMON Units 2003 2004 2005 2006 2007<br />

Total employees No. 4,273 4,602 4,613 5,349 5,501<br />

Female employees No. – 1,299 1,302 1,511 1,705<br />

Percentage of female employees % – 28% 28% 28% 31%<br />

Female directors No. – 17 21 26 24<br />

Training days provided No. 4,200 5,982 6,282 6,714 6,320<br />

Apprentices No. 327 409 393 324 267<br />

Apprentices as a percentage of total workforce % 8% 9% 9% 6% 5%<br />

Apprentices completing NVQs No. 0 49 53 116 94<br />

CUSTOMERS<br />

Customers who would recommend<br />

Units 2003 2004 2005 2006 2007<br />

<strong>Persimmon</strong> to a friend % – – 86% 86% 86%<br />

PERSIMMON IN THE COMMUNITY Units 2003 2004 2005 2006 2007<br />

Social and partnership homes completed<br />

Social and partnership homes as a percentage<br />

No. 1,000 1,014 1,039 1,402 1,967<br />

of total homes completed % 8.0% 8.0% 8.0% 8.4% 12.4%<br />

Charitable donations made by the Group £ 89,000 81,500 136,000 251,000 210,000<br />

Employee charitable fundraising £ – – – 326,000 340,000<br />

Data marked – was not recorded at that time<br />

* In 2007 the SAP rating scale changed from 1-120 to 1-100


<strong>Persimmon</strong> Plc<br />

<strong>Persimmon</strong> House<br />

Fulford<br />

York YO19 4FE<br />

Telephone 01904 642199<br />

Fax 01904 610014<br />

www.persimmonhomes.com

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