continued - Persimmon Homes
continued - Persimmon Homes continued - Persimmon Homes
Persimmon Plc Sustainability Report 2007
- Page 2 and 3: Persimmon Plc Sustainability Report
- Page 4 and 5: Page 2 Persimmon Plc Sustainability
- Page 6 and 7: Page 4 Persimmon Plc Sustainability
- Page 8 and 9: Page 6 Persimmon Plc Sustainability
- Page 10 and 11: Page 8 Persimmon Plc Sustainability
- Page 12 and 13: Page 10 Persimmon Plc Sustainabilit
- Page 14 and 15: Page 12 Persimmon Plc Sustainabilit
- Page 16 and 17: Page 14 Persimmon Plc Sustainabilit
- Page 18 and 19: Page 16 Persimmon Plc Sustainabilit
- Page 20 and 21: Page 18 Persimmon Plc Sustainabilit
- Page 22 and 23: Page 20 Persimmon Plc Sustainabilit
- Page 24 and 25: Page 22 Persimmon Plc Sustainabilit
- Page 26 and 27: Page 24 Persimmon Plc Sustainabilit
- Page 28 and 29: Page 26 Persimmon Plc Sustainabilit
- Page 30 and 31: Page 28 Persimmon Plc Sustainabilit
- Page 32 and 33: Page 30 Persimmon Plc Sustainabilit
- Page 34 and 35: Page 32 Persimmon Plc Sustainabilit
- Page 36 and 37: Page 34 Persimmon Plc Sustainabilit
- Page 38 and 39: Page 36 Persimmon Plc Sustainabilit
- Page 40: Persimmon Plc Persimmon House Fulfo
<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