CR Report 2008

people + passion

Corporate Responsibility Report 2008

02 A passion for CR

40 Leaner and greener

22 Living our values

14 Creating a safe haven

50 Going the extra mile

32 Setting high standards

Front cover:Pupils from The Colour House Theatre in Merton, which is now powered by quietrevolution’s virtually silent wind turbines, installed by MITIE.

Back cover:Installation of the turbine by MITIE’s Engineering Services team.

cont

ents

02 Chief Executive’s introduction04 CR highlights06 MITIE at a glance08 Responsibility and accountability10 MITIE’s CR model11 CR Champion’s Forum11 British Quality Foundation – ‘Committed

to Excellence’12 CR Index14 Health and safety16 2007/08 measurements 17 2008/09 objectives and targets 18 A safe pair of hands22 Workplace24 2007/08 measurements25 2008/09 objectives and targets26 Skills and opportunity32 Marketplace34 2007/08 measurements35 2008/09 objectives and targets36 Doing unto others…38 Engaging with our clients40 Environment42 2007/08 measurements43 2008/09 objectives and targets44 Less is more50 Community52 2007/08 measurements53 2008/09 objectives and targets 54 Sharing our skills56 GRI indicators57 Contact us

2 MITIE CR Report 2008

A passion for CRRuby McGregor-Smith, Chief ExecutivePassionate about people and having fun.

MITIE CR Report 2008 3

“ Corporate responsibility (CR) is the foundation of the way we work at MITIE. It is evident in our strategy, in the hub of our operations and is an essential part of our culture. With 20 years of sustained growth, our success has come from a responsible business model that has responded to the ever changing requirements of an increasingly wide group of stakeholders. CR is part of our business strategy and forms the basis of our values: people + passion.

Every year we set challenging targets to drive our business forward. Our ambitions in CR are no different. We have the same passionate commitment to protecting our people, enhancing our workplaces, our communities, our marketplaces and safeguarding the environments in which we all work.”

Ruby McGregor-Smith Chief Executive

A passion for CR


CR highlightsOver 500 students are currently studying on nationally recognised vocational courses in construction at the MITIE Skills Centres500

1Partners in Sustainability Award 2007

49,000+ passionate people

Revenue

£1,407.2m

23%reduction in major injuries

Profit before tax

£67.9m

We’re proud to meet the globally recognised CR criteria in the FTSE4Good Index Series.


64,000

apprentices employed across our facilities, engineering and property services divisions

321of our people are female

42%

We’ve reduced approximately 64,000 food miles of deliveries to our sites

Big Tick reaccreditations for our Skills Centres and Real Apprentice Scheme

We received a BiTC Top 100 Companies That Count CR Index Silver Award

100


StrategyTo deliver stakeholder value through a focus on sustainable, profitable growth.

Vision To be a company of world-class people delivering world-class services.

Values • People – MITIE is a people business.

It’s our 49,505 people, and their drive to always do their jobs to the very best of their ability that make us different.

• Passion – People + passion. That’s what MITIE’s all about. Take our people, add their passion and you get something really special.

• Fresh thinking – Our people are always having ideas. Every day, the teams at MITIE come up with original thoughts, from the brilliant to the sublime. It’s our ability to innovate that helps us improve and develop services, enter new markets and keep our clients happy.

• Exciting futures – We want to make sure that all MITIE people want to do their jobs better than anyone else in the world. Motivating our people is part of our daily routine: providing inspiration from skill development, career progression and recognition of a job well done.

MITIE at a glanceWe are one of the UK’s leading support services companies delivering a range of integrated services to support the buildings and infrastructure of our clients. We are a people business, made up of over 49,000 talented and driven people, all working to support our three divisions: facilities, property and engineering services.

We are a UK based, FTSE 250 company that has a track record of growing revenue, profit and earnings per share.

We have a clear strategy and vision, supported by a set of core values.


Sectors

3contract types

Single serviceA client outsources one service to MITIE.

Multi-serviceA client outsources more than one service to MITIE.

Facilities managementA complete facilities management solution, tailor made for each and every client.

3 Facilities ServicesIntegrated facilities management and a range of services including: asset management, energy consultancy, document management, front of house, catering, cleaning, engineering maintenance, landscaping, pest control, security, waste and environmental management.

Property ServicesRoofing, repairs and redecoration, interior fit-out, plumbing and heating, social housing maintenance and refurbishment and fire protection.

Engineering ServicesMechanical and electrical, energy generation and management, technology and infrastructure.

service areas

Government 17%Finance and professional 13%Manufacturing and logistics 11%Retail 11%Education 9%Property management 8%Social housing 7%Science and technology 6%Construction 5%Healthcare 4%Utilities 4%Leisure and entertainment 3%Transport 2%

Key facts £1,407.2mRevenue

49,505People

£4.4bn Order book

UK basedStrong balance sheet


Suzanne Baxter, Group Finance Director Passionate about equal opportunities and hot air balloons.

Responsibility and accountability


Stephen Howard, Chief Executive, BiTC

“ MITIE has been an invaluable supporter of Business in the Community for the last few years. We were delighted that MITIE were recognised in our Awards for Excellence 2007 with two prestigious Big Ticks for their community programmes, and also, for the second year running are featured as one of the Top 100 Companies that Count for companies who completed the CR Index. They even came into our offices to help us with an energy audit and staff environmental awareness session this year. We look forward to many more years of working together and MITIE showing their leadership in CR.”

As MITIE’s Chief Executive, it’s Ruby McGregor-Smith who has ultimate responsibility for CR within the company. Ruby is supported in this role by an Executive Committee of main Board Directors, which includes our Group Finance Director, Suzanne Baxter.

“ At MITIE, we are committed to the operation of a responsible business model and to the delivery of our CR strategy. For us, it makes sound business sense. Our CR programme has helped us to develop a new dialogue with a range of existing and potential stakeholders, from employees to clients and investors. We have consciously structured our programme with an underpinning emphasis on the development of skills and the environment. As an employer of over 49,000 people that work in the built environment, these two areas are particularly important to us, and have helped to shape our activities and business model to meet the demands of our markets and our stakeholders.

With these areas of focus in mind, in the last year we supported 218 of our people to gain new Institute of Leadership Management qualifications, committed to the UK government’s Skills Pledge and opened a new national training centre; we’re offering our clients an increasing range of sustainable technologies to power their buildings, efficient recycling and waste management consultancy to support their operations and Fairtrade products in their canteens; we’ve reduced our food miles and increased our recycling; and we’ve just opened another MITIE Skills Centre, promoting vocational construction craft training in UK secondary schools.

That said, being a responsible business is not just talking about what we’ve done in the past, it’s about what we do today, and every day beyond that. That is what this report is all about.”

Suzanne Baxter Group Finance Director

“ Delivery of our CR strategy makes sound business sense.”


OUR STAKEHOLDERS Employees Sup

pliers Clients

Investors

Soci

ety

Shar

ehol

ders

OUR CR PILLARS Workplace M

arketplace Environment

Com

mun

ity

H

ealth

and

safe

ty

Our values

People + passion Exciting futures

Fre

sh th

inki

ng

MITIE People

CR Operations and Governance

CR Champions

CR Specialists

Main Board

Executive Committee

Acting res ponsibly

MITIE’s CR model The model shows how MITIE’s CR strategy is implemented using the five pillars of health and safety, workplace, marketplace, environment and community. We’re committed to taking a sensible and structured approach to managing CR at MITIE. This allows us to focus on the social, ethical and environmental factors, opportunities and risks that affect our business, and to ensure they are efficiently managed. We work together with our stakeholders, at every level of our business operations, to achieve the goals we set at the start of the year.


Suzanne Baxter has responsibility for the development of MITIE’s CR strategy on behalf of the Board. Day-to-day delivery of this strategy is driven by a full-time CR Manager and a Champions Forum of 40 individuals from across our business. The Forum is made up of a number of specialists in areas such as health and safety, employment regeneration and environmental management.

CR Champions ForumMITIE’s CR Champions Forum brings together a diverse range of skills, qualifications and experience in health and safety, environment, HR, procurement, equality, diversity, charity and community engagement from across MITIE.

Each year, our CR strategy, objectives and targets are reviewed and authorised by the Executive Committee. The Forum is responsible for delivering a comprehensive array of CR-related activities throughout the year to achieve these objectives and targets.

MITIE’s CR Champions are also the core members of our volunteering teams. The volunteering projects we’ve undertaken over the past year have been really successful in providing specialist pro-bono professional services for our six regional charities, Skills Centre schools and community partners. The volunteering projects also bring us significant business benefits such as: enhancing community relationships, motivating our people and promoting their well-being, as well as improving relationships with our business partners and clients.

Last year, a number of our community projects attracted national recognition and we were the proud recipients of a number of awards, including two Big Tick Excellence Awards from Business in the Community and two Edge awards.

British Quality Foundation – ‘Committed to Excellence’MITIE’s strategic approach to CR was recognised by a British Quality Foundation ‘Committed to Excellence’ validation in September 2007.

“CR activity in the organisation is clearly a strategic approach rather than ad hoc. The Champions network is a means of managing the activity in a very diverse and widespread organisation. There is also a Sustainable Procurement Forum taking the work beyond MITIE’s own requirements and into partner as well as customer activity.”BQF Validation Report assessor, 25 September 2007

Acting res ponsibly


CR Index We’ve used the Business in the Community (BiTC) CR Index since 2005 as a management tool to measure our CR performance. Their annual feedback report not only shows us the areas in which we’re doing well, but also acts as an effective tool to identify the places where we need to improve.

The CR Index assesses how well an organisation’s corporate strategy is integrated into day-to-day business practice. It provides a benchmark for companies to evaluate their management practices and performance in four key areas of CR (Workplace, Marketplace, Environment and Community).

Every year, the results of companies publicly participating in the CR Index are published in the Sunday Times Top 100 Companies that Count – a survey measuring, managing and reporting responsible business practice. This survey is a great way for us to compare our performance with our peers in the Support Services Sector, with some of our clients, as well as companies from different sectors.

MITIE’s CR Index performance 2005–2007In 2005, BiTC’s feedback identified significant areas for improvement in our CR performance. Taking their feedback onboard, we made a number of key improvements to our policy during 2006. These improvements saw our CR Index score rise from 50% to 70% – promoting MITIE into the ‘bronze’ section of the Sunday Times Top 100 Companies that Count. That very same year, as a result of our focused efforts, BiTC also named MITIE as ‘one of the biggest improvers’.

In 2007, by working closely with our stakeholders to improve our CR policies, practices and procedures, we managed to continue our success and achieved an overall score of 81.5%. We’re pleased to announce that MITIE is now listed in the ‘silver’ section of The Top 100 Companies that Count survey published in the Sunday Times in May 2008.

Corporatestrategy

100%

96%

97%

Integration

82%

76%

88%

Communitymanagement

85%

79% 86

%

Environmentmanagement

Marketplacemanagement

Workplacemanagement

Assuranceprocesses

100%

85% 89

%

83%

83% 88

% 94%

93%

93%

84%

82% 89

%

MITIE

Support Services Sector

All Sector Index

Source: BiTC 2008 CR Index Feedback Report.

Strategy, integration and management practices

05

50.0

%

06

70.0

%

07

81.5

%

MITIE’s CR Index performance 2005–2007

Not rated

Bronze award

Silver award

CR Index 2007 performance summaryIn five of the seven main components of the CR Index we successfully outperformed our support services peers, and in the marketplace management section we were on a par. However, we still have work to do to improve our performance in the integration section, and we’ll be focusing on achieving this during 2008/09.

81.5%Our overall score in the BiTC’s CR index entitles us to a silver listing in the Top 100 Companies that Count survey.


Corporatevalues (Q1)

100%

97% 99%

CR principles(Q2)

Leadership(Q3a)

Board reporting(Q3b)

Advocacy (Q4)

Risk management(Q5)

Policies(Q6)

100%

95%

97%

100%

97%

99%

100%

97%

93% 10

0%

97%

98%

100%

95%

97%

100%

94%

94%

MITIE


All Sector Index


Corporate strategy

Integration of CR principles (Q7)

MITIE


All Sector Index

100%

81%

90%

Business conduct(Q8)

100%

100%

98%

Performancemanagment (Q9)

67%

90%

88%

Remuneration and bonus systems (Q10)

67%

78% 81

%

Strategic decisionmaking (Q11)

45%

76% 83

%

Training and development (Q12)

100%

93%

94%

Training of senior managers (Q13)

100%

92% 95

%

Stakeholder engagement (Q14)

75%

86% 94

%

Public reporting(Q15a)

81%

65%

80%

Scope of public reporting (Q15b)

60% 63

%

78%


Integration

Although we managed to equal or out-perform our sector peers and other participants in five out of ten areas (scoring the maximum 100% marks in four of these areas). We recognise that we must improve the implementation of our CR strategy in the following areas within the integration measurement section of the CR Index: performance management (Q9), remuneration and bonus systems (Q10), strategic decision making (Q11), stakeholder engagement (Q14) and scope of public reporting (Q15b).

This section of the CR Index considers the level to which a company places CR values at the core of its business strategy. Companies must show that they have the systems in place to identify key social and environmental risks and opportunities, and whether they are addressed by principles, policies, leadership and commitment at the highest level.

As CR is core to our business strategy and day-to-day operations, we achieved full marks in every one of the seven areas in this section of the CR Index. Furthermore, we outperformed our support services peers and other CR Index participants. We’ll ensure that procedures continue to be in place to maintain our exemplary level of performance. 100%

We achieved full marks in all of the seven areas in the corporate strategy section of the CR Index.


Creating a safe haven

Jones Lang LaSalle’s London office refurbished by MITIE’s interior fit-out business, winner of this year’s Chief Executive’s Quality Award for excellence in health and safety.


Health and safety


Health and safety 2007/08 measurements

Health and safety is a major priority in MITIE. It’s the first item on the agenda at our Board meetings and our safety record forms a key performance indicator. We strive for continual improvement in the area of health and safety performance and support this objective with a strong team of health and safety and quality assurance experts, a comprehensive training programme and the use of focused risk management and assessment processes.

Reportable incident rates

2005/06

2006/07

2007/08

Total reportable incident rate (per 1,000 employees)

4.0

6.1

5.1

2005/06

2006/07

2007/08

Major injury incident rate (per 1,000 employees)

0.69

1.29

0.90

Health and safety targets 2007/08

All the businesses within the Group demonstrate continual improvement in their safety performance by identifying safety management failings and setting and achieving Group and business objectives for improvement.

All accidents are reported within 48 hours and all employees are made aware of the requirement to report accidents within this timeframe.

All incidents are investigated appropriate to the nature and severity of the incident within five days of their occurrence.

All serious accidents are reported through the emergency line within one hour of their occurrence.

We will increase the provision of health and safety related training courses.

We will reduce injuries and incidents due to manual handling, slips and trips.

We will encourage safe and fuel efficient driving skills by providing approved Safe and Fuel Efficient Driving (SAFED) courses.

We will expand our post-injury, early rehabilitation programme.

We will instigate an employee wellness programme from April 2007.

We will continue our support for Drug Alcohol Training Services.

How we performed Level

The Group-wide certification programme to OHSAS 18001 continues, with three more of our businesses becoming certified during the year. A reduction in minor, major and three-day incident rates reflects the focus on health and safety risk management across MITIE.

During 2007/08, the majority of our incidents were reported within 48 hours. We will be working hard on improving this during 2008/09.

All major incidents were investigated within five days complying with our policy.

All serious incidents were reported through the emergency line throughout the year. We will be working to improve the response times in 2008/09.

Increased levels of health and safety training continue to be provided to all of our employees across the UK. In 2007, we commenced a specific health and safety training course for Directors in the business which will continue in 2008/09.

Specific improvement programmes have been developed across MITIE, resulting in over 20% reductions in both these categories.

We’ve commenced the SAFED training course and also require our drivers to undertake vehicle safety checks.

Our rehabilitation programme continues to be used, providing effective support to allow our people to return to work.

We have developed our existing clinic system to

incorporate health awareness days that have been well received and well attended. Further development of this programme will take place in 2008/09.

We continued our support for Drug Alcohol Training Services.

Achieved Ongoing Not achieved


2008/09 Objectives and targets

Objective: To demonstrate continual improvement in health and safety performance.

Our top four targets: 1. We will ensure businesses acquired during

the previous reporting period implement a health and safety management programme and achieve certification to the requirements of OHSAS 18001;

2. We will develop and roll-out a senior management health and safety training programme to 60 senior managers by April 2009;

3. Every business will implement a health and safety improvement plan; and

4. We will implement a targeted risk assessment and driver training programme to reduce road traffic accidents by April 2009.


A safe pair of handsThe health and safety of our people is of principal importance for us at MITIE. We set high standards and we expect everyone to play their part in maintaining them. MITIE has a team of over 60 dedicated health and safety professionals working in our business, engaged in formal programmes to improve our health and safety performance across our business on an ongoing basis.

We’ve achieved a lot in 2007/08, but the next year will see us raising the bar even further as we focus on four key areas:

• Senior management leadership – there will be a new training programme for senior management to increase awareness of health and safety issues and provide them with enhanced tools;

• Business management system (BMS) – we’ll be undertaking a review of our established BMS, to ensure it is suitable for our changing working environments, providing us with a sound framework for managing risk;

• Health and safety performance improvement programme – we’re developing a systematic improvement plan for our whole business; and

• Operational risk control – we’re improving our internal assurance programme with an independent third party specialist auditor.

We have been extremely pleased to see a reduction in the rates of accidents across MITIE, but recognise there is always room for improvement. That’s why we’ve enhanced the leadership of health and safety within MITIE during the year, and are continuing to extend our company-wide certification programme to the two internationally recognised standards for health and safety and environmental management (OHSAS 18001 and ISO 14001). Three further MITIE businesses achieved certification during the year, with 94% of the company’s activities now meeting these two standards.

Chief Executive’s Quality Award During the year, the Chief Executive’s Quality Award (CEQA) focused on excellence in health and safety. Each business began by undertaking their own employee survey to explore how their people perceived health and safety management in their own workplace. These surveys confirmed that we’re doing many things well and highlighted a number of good opportunities to make improvements. Each business then developed formal improvement plans building on these new ideas, including improvements in risk assessment methods, internal reporting procedures, the identification of health and safety training needs, and improved risk management communication.

The overall winner of the CEQA was MITIE’s interior fit-out business, for their formalised approach in improving

health and safety performance, including revised programmes to address specific risks, a focus on enhanced line management ownership of health and safety, and improved communication throughout the organisation. Awards for the national and regional winners will be presented at the AGM in July 2008.

As a company of world-class people delivering world-class services, we have an extensive range of training programmes available to all our people, including over 25 health and safety training courses. In 2007/08 over 2,000 people successfully completed a wide range of health and safety training within MITIE. Over the last year our training was particularly focused on addressing key issues such as working at height, manual handling, and managing road risk. All of this was undertaken in conjunction with giving our people a sound knowledge of the health and safety basics.

The results of our efforts are there to see. In addition to the positive feedback we’ve had from our employee surveys, we achieved a 23% reduction in major injuries during the year, with a 22% reduction in the reportable incident rate. Regrettably we received four enforcement notices during the year and we have put in place remedial actions to address the issues raised and learn the lessons across the Group.


of the company’s activities now meet internationally recognised standards for health and safety and environmental management (OHSAS 18001 and ISO 14001).


In 2007, a poll by the International Labour Organisation named the UK as the country with the longest working hours in the developed world, and the spread of new technology such as wireless email is only contributing to this. We want our own people to have a good work-life balance and one way we can help is with health awareness days.

We’ve now held four of these days at our offices across the UK, giving our people access to medical information and advice at work. They can have a full check-up onsite during working hours, including body mass index, cholesterol checks, diabetes and lung capacity testing. Our people can also discuss any health issues or concerns they may have with a doctor.

This initiative has been a huge success. Over 80% of attendees have acted on the advice they were given, and the following is typical of the feedback we’ve received: “I thought the day was really worthwhile and it was so nice to be able to sit down with a doctor and discuss health issues, as normally one would only see a GP during an illness and not be given the time to discuss other problems.”

Health awareness days


For many people at MITIE driving is a major part of their work, which means that both road safety and our vehicles’ environmental impact are key business issues for us. Over the last year we’ve increased our focus on teleconferencing, car pooling and public transport as ways to cut down our fleet’s carbon emissions and reduce the risks to our people from driving related incidents. Driving will always be a necessary part of our business,

especially for our emergency response vehicles. There is still a great deal we can do to make it as safe and efficient as possible.

One way we’re doing this is through the government-backed Safe And Fuel Efficient Driving scheme, or SAFED. We have made a positive start, with a number of our people already attending this course, which gives them tips on safer and more environmentally friendly driving.

Safe and fuel efficient driving


Living our values


Cindy Harding and Tara Green have just completed their carpentry and plumbing apprenticeships respectively, after an Open College Network course in Basic Introductory Construction and Building Skills.

Workplace


Workplace 2007/08 measurements

As a people business, we treat every one of the 49,000+ people who work for us with respect. We’re passionate about helping our people reach their full potential, because the more successful they are, the more successful we are. We ensure they have the skills, training and support they need to excel, as well as a fair, equal and responsible environment to work in.

CR Index 2007 – workplace managementWe’re delighted with our performance in the workplace management section of the BiTC framework. We scored the maximum 100% and we equalled or outperformed our sector peers and other sector participants in all four areas. We’ll endeavour to maintain this exemplary standard throughout 2008/09.

Objectives(Q36)

100%

96%

93%

Targets(Q37)

100%

92%

87%

Employee programme (Q38)

100%

100%

99%

Monitoring(Q39)

100%

89%

90%

MITIE


All Sector IndexSource: BiTC 2008 CR Index Feedback Report.


Our strong growth and track record continues to provide a great platform for employment, as does the reflection of our CR credentials through inclusion in the Sunday Times Top 100 Companies that Count list in 2007 and 2008. We continue to offer our people entrance into our Save As You Earn Scheme (SAYE), as well as providing career development, mentoring and Institute of Leadership and Management (ILM) professional development courses. In addition, we attained the British Quality Foundation’s ‘Committed to Excellence’ validation.

In 2007 we appointed a new Training Manager to develop our training strategy. It’s their role to ensure our people are supported by the programmes, policies and procedures we have in place to help them reach their full potential. ILM courses at six COVE venues are offered to our people as well as support to attain higher education and professional qualifications.

Liaison with BiTC/KPMG was maintained and in 2007 MITIE signed the UK government’s Skills Pledge. Our literacy and numeracy courses for employees will commence in 2008.

Information on our approach to CR forms part of our induction programme. Our CR Manager presented at every induction throughout the year.

MITIE appointed an Equality and Diversity Manager in August 2007. We undertook an external review of our approach to diversity during the year and will build improvements into our procedures and training as appropriate. Diversity related issues were first reported in our 2007 CR Report and will continue to be reported annually.

Workplace targets 2007/08

To continue to strive to be recognised as an employer of choice.

Our employees will be encouraged to develop to their full potential with the provision of a comprehensive range of Institute of Leadership and Management (ILM) courses provided by our six Centres of Vocational Excellence (COVE) college partners.

We will develop and expand our ‘Skills for Life’ programme, raising literacy and numeracy skills in our workforce with BiTC/KPMG.

CR awareness will feature as an integral part of the new employee induction programme. Ten induction events will take place between April 2007 and March 2008.

We will increase the level of diversity in the workplace.

From April 2007 we will be publicly reporting on diversity issues including gender and ethnicity annually.



Objective: To provide opportunities and the right environment to enable our people to develop to their full potential.

Our top four targets: 1. We will expand our ‘Skills for Life’ initiative

and commit to delivering 8,700 NVQs over the next three years;

2. We will demonstrate our commitment to diversity in the workplace by issuing an Equality and Diversity policy statement, quality proofing our existing policies and procedures and raising awareness across our workforce by April 2009;

3. In partnership with ‘Opportunity Now’ we will undertake a benchmarking gender survey and put together an action plan to address areas for improvement by April 2009; and

4. We will run two new ‘Real Apprentice’ programmes, offering 68 training placements with our clients during 2008.



Equality and diversity We’ve invested in the development of our approach to, and understanding of, diversity in our business. Our targeted investment helps us to continue to develop best practice in our management procedures, and gives our people the tools that they need to manage and participate in an ever changing workforce.

External experts Equality Works are working with us to review and revise our existing policies and procedures, to make sure we reflect best practice in our operations and that we’re fully compliant with all UK government legislation and labour laws. We also work with them on developing new initiatives and training programmes to support our people.

A break from traditionIn the UK, careers in construction have not traditionally attracted many women. We want to break that mould and are constantly looking to attract new talent to non-traditional roles. A good example is Tara Green and Cindy Harding, who just completed their carpentry and plumbing apprenticeships after an Open College Network course in Basic Introductory Construction and Building Skills. This is run by Women Builders and Oxford Women’s Training, part of Oxford & Cherwell Valley College.

Looking more widely, we’re actively involved in promoting women in business, and our Group Finance Director Suzanne Baxter represents MITIE on the Board of Opportunity Now – a business campaign led by BiTC that works with employers to realise the economic potential and business benefits of employing women at all levels.

MITIE’s people come from all walks of life and have a diverse range of skills and qualifications, reflecting the communities in which we work. We’re committed to providing equal opportunities for all, and take pride in our reputation for having the right people for the right job, and the right attitude to getting it done. Motivating our people is also key to growing our business, so we offer a number of reward schemes to keep our people inspired, and focused on achieving their goals.

Skills and

of our people attended courses at our new MITIE Training Centre.

772

Workplace summaryGender Total Male Female 49,505 28,666 20,839

100% 58% 42%

Ethnic origin* Bangladeshi Chinese Pakistani White Black AC Indian Other 0.35% 0.24% 1.00% 74.87% 9.42% 2.06% 10.96%

Age <20 years 20–29 years 30–39 years 40–49 years 50–59 years 60–69 years >70 years 3.27% 19.91% 20.72% 24.35% 20.01% 10.12% 1.61%

Service <2 years 2–4 years 5–9 years 10–19 years >20 years 51.85% 24.82% 15.21% 6.80% 1.32%* We have recorded the ethnic origin of our people since 2006. These percentages represent 23,573 of our total 49,505 people as at 31 March 2008.


MITIE people undertook one or more of our wide range of training courses in 2007/08.

opportunity

21,000


Employee developmentTraining is important for everyone, at every stage of their career. We offer an integrated career and personal development programme to all of our employees. In 2007/08, over 21,000 MITIE people undertook one or more of our wide range of training courses.

Furthermore, since the start of our relationship with the Institute of Leadership and Management in April 2006, almost 1,000 MITIE people have completed ILM courses, including ILM Level 2 in Team Leading, ILM Level 3 in First Line Management and ILM Level 5 in Management.

We’ve also developed our in-house Navigator men’s personal development programme and Springboard women’s personal development programme which were launched in April 2007. These programmes have been specifically developed for non-managerial people and give advice on a wide range of issues both in and out of the workplace, from getting a promotion to building self-confidence. Coming out of the programme, candidates moved forward with their action plans and were offered individual trained mentors to support their future development. In October 2007 we opened the new MITIE Training Centre in Frimley Green. So far, 772 people have attended 58 courses at the centre.

The Skills Pledge

On 14 June 2007 MITIE became one of the first employers to make the UK government’s Skills Pledge – a specific and voluntary promise, made by an employer to its employees, that every eligible member of staff will be helped to gain basic literacy and numeracy skills and a full Level 2 qualification, equal to five GCSEs at A*– C. Speaking at the launch last year Gordon Brown said: “In the future, skills will be the only route to prosperity and jobs.” Our commitment to the Skills Pledge is a key part of our strategy: we will only deliver world-class services if we have skilled and competent people who can seize all the opportunities offered to them.

Signing up to the Skills Pledge gives us the opportunity to demonstrate publicly the importance MITIE places on investing in the skills of our people. MITIE’s commitment to developing a better skilled and qualified workforce benefits our business’ competitive advantage, as well as aiding the training, development and employability requirements of our people.

MITIE people have completed Institute of Leadership and Management courses since 2006.

1,000



“ Some employment and training into work schemes deliver some of the time. The MITIE Real Apprentice scheme has delivered every time in the last three years. More than 200 individuals have all been successful… this is the single best employment initiative with which ELBA is involved – long may it continue.” Liam J Kane, Chief Executive, ELBA

Warren Coborne, one of 2007’s successful Real Apprentices. Warren currently works for our client Land Securities at 5 The Strand in London.


MITIE Stars AwardsWe talk a lot about our people at MITIE: how much we value their passion, spirit and commitment, and their willingness to go the extra mile to make our clients happy. This is why we have launched an exciting new awards scheme – MITIE Stars – which is open to every one of our 49,000+ people, from cleaners and caterers, to engineers and painters.

This is a major award and the overall winner will be up against fierce internal competition, but the prizes will be well worth it: anything from a holiday to a dream location, a new car, or even a box for a year at their favourite football club.

The Real Apprentice SchemeOur award-winning Real Apprentice Scheme is now in its third year and we’re pleased to announce that it’s just received Big Tick re-accreditation for 2008. This is a ten-week training programme, run with the East London Business Alliance (ELBA), and targeted at young people from areas of East London which have some of the highest unemployment figures in the country, despite being close to the financial district of Canary Wharf.

In the last three years the scheme has won prestigious Big Tick Awards For Excellence, the 2006 PFM Partners with People Award and the Greater London Training Award. We’re even more proud of the fact that five of the original seven apprentices who joined MITIE following the pilot scheme are still with us today. ELBA confirms that the scheme now has an 80% retention rate after six months’ employment. The 59th apprentice to go through the programme has recently been offered a full-time job with us, and 29 young people found work with MITIE in London last year, the highest number so far.

ELBA now cites the scheme as a blueprint for other employers to follow: both Tower Hamlets Primary Health Care Trust and Macquarie will be using a similar idea in 2008.

“Macquarie has adapted MITIE’s Real Apprentice scheme to fit our business. We are very excited by the possibilities of the scheme.” Lord MacDonald, Chairman of Macquarie Capital Europe, Real Apprentice award ceremony 2008.

Our young apprenticesWe’re especially proud of our commitment to developing new talent and promoting vocational training. There are currently 321 apprentices employed across our facilities, engineering and property services divisions, representing an increase of 33% over last year.

Last year we won the top prize in the Scottish Edge Awards, which honour organisations offering practical learning opportunities for young people. The judges were particularly impressed by our commitment to recruiting young apprentices into all areas of the business, and for our support of local college students.

The prize came with a grant of £12,000, which we’ve invested in setting up an on-the-job coaching scheme for front-line supervisors and sponsorships for apprentices on specialist engineering courses.

We also held our first National Apprentice of the Year Award in 2007. The awards ceremony celebrated exceptional achievements by both apprentices and mentors in our engineering businesses throughout the year. The apprentices had worked on a variety of sites including our facilities management contracts with Rolls-Royce and British Nuclear Group at Sellafield. The overall winner was Andrew Mason, who’s based at our Foreign and Commonwealth Office contract in London, for the determination, dedication and passion he puts into his job.

321apprentices employed.

80%apprentice retention rates.

“ We saw a huge rise in entries from companies in Scotland this year and the judging process was extremely difficult. MITIE was a clear winner in the end – the business really goes that extra mile in delivering practical learning for young people.” Andy Powell, Edge CEO


Setting high standards


In 2007 our catering business managed to drive costs down and profits up, at the same time as improving our own sustainability performance – and satisfying clients’ demands for more sustainable products. By simply changing our confectionery supplier to a main grocery chain, our catering business saved approximately 64,000 food miles in deliveries to our sites. Likewise, by sourcing our bakery products locally, we’re investing in the surrounding communities and getting the freshest food available.

Marketplace


Marketplace 2007/08 measurements

We are active advocates for responsible and ethical business practice. We demand the highest standards of social, ethical and environmental performance from our partners. MITIE has a Sustainable Procurement Forum and Supplier Improvement Programme that we operate with our key suppliers.

CR Index 2007 – marketplace managementWe scored the maximum 100% and outperformed all other sector participants in three out of the five areas in marketplace management, despite the expansion of the section’s criteria. We’ll be focusing on making significant improvements in the influence over the rules(Q33) and consistent standards and governance (Q34) categories during 2008/09.

Product or service impact(Q30)

100%

88% 93

%

Customers(Q31)

100%

95%

96%

Supply chainmanagement(Q32)

100%

87%

83%

Influenceover therules(Q33)

63%

56%

77%

Consistent standards andgovernance (Q34)

67%

82% 87

%

MITIE


All Sector IndexSource: BiTC 2008 CR Index Feedback Report.

Marketplace targets 2007/08

We will continue to develop mutually beneficial trading relationships with our clients and supply chain partners, sharing good practice.

We will continue to work with our significant suppliers in improving their social, ethical and environmental performance.

We will reduce our food miles by 10% over the next 12 months.

In 2007 we will publish an Ethical Business Practice policy, based upon the tenets of the Ethical Trading Initiative ‘Base Code’ and UN Global Compact principles.

We will continue to develop skills and provide employment opportunities with our clients via MITIE’s Real Apprentice and graduate programmes.

We will continue our involvement and support for the Business Services Association (BSA), participating in meetings and contributing expertise.


We have enjoyed enhanced trading relationships as a result of undertaking collaborative volunteering projects, and CR knowledge transfer with some of our clients and suppliers.

MITIE’s Sustainable Procurement Forum produced a CR Supplier Questionnaire in 2007 and has since undertaken CR reviews with 18 significant suppliers.

64,000 food miles have been avoided because we’ve increased local food sourcing, and introduced reduced frequency, multi-drop co-ordinated deliveries with our ingredient suppliers.

In July 2007, we published our Ethical Business Practice policy.

We have successfully run five Real Apprentice Schemes since 2005, attaining very high employability rates. This has seen 59 people from the scheme subsequently join MITIE. We have also won several awards and funding in recognition of our Real Apprentice programme.

Our support for the Business Services Association continues as members of their CR Working Group.



Objective: To demonstrate responsible business practice and enhance relationships with our clients and supply chain stakeholders.

Our top four targets: 1. We will engage with key clients and

supplier stakeholders, sharing CR values, knowledge and best practice;

2. We will increase the range of ‘Fairtrade’ food products offered to our clients and increase volume by 20% by April 2009;

3. We will conduct another ten CR reviews with our suppliers by April 2009 as part of our supplier improvement programme; and

4. We will support relevant professional and industry bodies in promoting CR-related issues.



We want mutual beneficial trading relationships with our stakeholders that are based on trust, ethical business practices and co-operation. These values are in-line with the basic principles of the UN Global Compact.

MITIE also endorses the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work and the Ethical Trading Initiative ‘Base Code’. We ensure that employment with us is always freely chosen, freedom of association is respected, working conditions are safe and hygienic, child labour is not used, pay is not lower than the minimum wage, working hours are not excessive, discrimination, regular employment is provided, and no harsh or inhumane treatment is allowed.

Supplier Improvement ProgrammeWe know that selecting the right suppliers and sub-contractors is a key way to reduce business risk and improve performance. In fact we see our suppliers as partners in our own success, and we demand the same standards from those partners that we observe ourselves.

In 2007 we set up a new Supplier Improvement Programme to ensure that our main suppliers are aligned with our CR principles and apply ‘downstream accountability’ in their own supply chains. Our partnering relationship with national building products supplier Wolseley has proven to be particularly rewarding. We don’t view each other just as trading partners but make sure we exchange CR knowledge and practice by participating in each other’s CR and environment forums. Wolseley generously support our Construction Skills Centres by providing materials and employment opportunities for the student apprentices. Wolseley also participate in our employee volunteering events.

Doing unto others . . .

Business integrity, ethical trading and respect for the individual are part of what we do every day. They’re fundamental to our strategy, and inextricable from our mission to deliver quality services, opportunity for our people, and sustainable growth – and to do all that in a responsible way.

142%increase in spend on Fairtrade products.

We aim to adopt the highest ethical standards with our stakeholders, and engage with our suppliers and clients to do so. Our key business principles as laid out in our ethical business policy are as follows:

1. Anti-competitive practices will not be tolerated;

2. Supplier relationships and payment practices will be fair and equitable;

3. Conflicts of interest will be declared;

4. Bribery and corruption will not be tolerated;

5. Insider dealing will not be tolerated; and

6. Information covered by the Data Protection Act will be safeguarded.


As part of our Supplier Improvement Programme we perform a CR audit to assess a supplier’s accreditations, policies, community investment and environmental initiatives. We aimed to do ten of these audits last year, but actually completed 18. This proved to be a very useful exercise and of mutual benefit to our suppliers, which is why we will continue our audits during 2008. Although we were generally impressed with their high standard of compliance, we had to serve a ‘notice of improvement’ to two of the 18 suppliers. The notices identified further improvements in respect of reporting CO2 emissions and in providing assurances that their products are ethically produced.

Sharing the benefitsWe’re constantly looking for new ways to manage our procurement in a responsible, sustainable and efficient manner.

When we’re faced with challenges we always work with our clients to find an approach that maximises good health, well-being and value for money, and minimises waste and energy use, while contributing to local economies by using locally-sourced and sustainable products.

It doesn’t stop there though: in our catering business, over 70% of our 57,000 black waste sacks are now made from bio-degradable materials as are the 4.5m napkins we use in our restaurants, and the 50,000 disposable takeaway bags we give out with our deli-food. Additionally, our 160,000 fruit and yoghurt pots are now packaged in plastic cups made from polylactic acid.

FairtradeWe’re piloting a new scheme that bags up the coffee grinds from our Starbucks and Costa Coffee lounges and offers them to customers for their home compost heaps or wormeries. This is currently operating in a quarter of our sites and we hope to be able to expand it further over the coming year. Our spend on Fairtrade products such as smoothies, fruit juices, chocolate, snacks, coffee and sugar sticks has increased by 142% from 2006 to over £25,000.

We’re always looking for new and innovative ways to improve our services, and it’s often our own people who have the best ideas.


Engaging with our clients

We’ve helped the Department of Culture, Media and Sport save 527 tonnes of CO2 since 2006 – the equivalent of 527 hot air balloons.


Client: Department for Culture, Media and Sport. In November 2007 our work in energy management and sustainability with the Department for Culture, Media and Sport was recognised at the Premises and Facilities Management annual awards, where we picked up the Partners in Sustainability Award 2007. Last year we also received a Green Apple Award for our work on the same contract.

Our customer, the Department for Culture, Media and Sport (DCMS), is responsible for government policy on the arts, sport, the National Lottery, tourism, libraries, museums and galleries, broadcasting, creative industries, press freedom and regulation, licensing, gambling and the historic environment, as well as the 2012 Olympic Games and Paralympics.

Saving energy and saving pennies.We’ve been providing our world-class facilities management services to the Department since 2005.

Last year, we implemented an energy action plan and a number of other sustainability initiatives, helping to support the department in its drive to achieve its environmental targets. The action plan is reviewed on a monthly basis, and to date has identified significant savings.

Our work has also helped them become the first Whitehall government department to be accredited by the Carbon Trust’s Energy Efficiency Accreditation Scheme.

Ken Heaton, one of MITIE’s Energy Managers, has been instrumental in our work at the DCMS. Ken’s been involved in energy management for over 23 years and in May 2008 was awarded membership of the Energy Institute.

We’ve helped the DCMS increase their recycling rates by raising awareness among its staff, including an environmental awareness roadshow in December 2006. We now have over 15 recycling points on their site and last year alone recycled 113 tonnes of glass, plastic bottles and aluminium cans. We hold monthly meetings with the DCMS to discuss any improvements we can make. Our TREEHUGGER™ desktop trays for recycling paper have been a phenomenal success on every contract and the DCMS is no exception. These trays allow every employee to monitor their own recycling and do something practical at their own desk in conjunction with centralised bins.

One of the issues we often encounter is a lack of storage space for waste prior to collection, and the DCMS had the same problem. We dealt with this by installing a Minimiser, which is a baler with three separate compartments for cardboard, plastic and cans.

One of our other major responsibilities at the DCMS is supplier management. By combining the collections of recyclable materials, we’ve reduced the vehicle traffic on their sites, as well as on local roads, and this has given them what is known as the ‘Best Practicable Environmental Option’. In essence, that’s what we want to achieve for all our clients.


quietrevolution turbines will be a key component of many of our low carbon schemes, and an integral part of the engineering services team’s new microgeneration offering. The first project to go live was at Merton Abbey Mills in London, which is used to power The Colour House Children’s Theatre.

Leaner a nd greener


Leaner a nd greener

Environment


Environment 2007/08 measurements

We know our business can have an impact on the natural environment. We take measures to minimise and mitigate this by using environmentally friendly materials and practices. We have developed our products, services and consultancy capabilities to meet the environmental demands of our clients, and are proud to help them to achieve their environmental targets.

CR Index 2007 – environment managementWe scored the maximum 100% and outperformed our sector peers and other sector participants in all six areas and will strive to maintain this exemplary standard throughout 2008/09.

Objectives(Q23)

100%

94%

95%

Targets(Q24)

100%

77% 83

%

Employeeenvironmentalprogramme(Q25)

100%

89% 95

%

Communi-cation with external stake-holders (Q26)

100%

86% 90

%

Environmentalmanagementsystem(Q27)

Environmentalaudit(Q28)

100%

77% 84

%

100%

85%

84%

MITIE


All Sector Index


MITIE is the most improved company in the environment section of the CR Index in 2007.

Environment targets 2007/08

We will measure, monitor and publicly report on our energy consumption (electricity, gas, fuel etc.) and implement initiatives to reduce our annual energy use.

From 2007 we will calculate our carbon footprint and implement a carbon management programme to actively manage our CO2 emissions per capita.

We will continue to support our TREEHUGGER™ recycling product range internally and externally with our clients.

We will arrange environmental improvement volunteering projects during 2007.

We will focus our improvements to our consumable recycling facilities at our offices from 2007.


Measuring, monitoring and public reporting of energy consumption commenced in 2006/07 and refinement of the process has continued during 2007/08.

A significant proportion of MITIE’s CO2 emissions arise from business fuel use, so we prioritised initiatives to avoid or reduce travel in 2007. Carbon cap limits were set for company cars and fuel efficient driving courses undertaken by a number of our company vehicle drivers.

MITIE’s TREEHUGGER™ product range continues to expand and be utilised with internal and external clients. Over 40,000 desk trays have been sold and 7,000 toner units recycled since April 2007.

Our volunteers carried out six significant environmental community projects in 2007 including; energy management consultancy for several schools (saving money and reducing CO2 emissions), woodland conservation in Scotland and a biodiversity landscaping project in Birmingham.

Additional recycling facilities installed at our offices during 2007 include more segregated bins for paper, toner cartridges, cans and plastic waste. Small quantities of biodegradable waste are also composted or ‘processed’ in a wormery.



Objective: To demonstrate continuous improvement in our environmental performance.

Our top four targets: 1. To undertake three environmental projects

with our employee volunteer teams by April 2009;

2. To improve our measurement and monitoring systems for fuel and energy use and reduce our per capita consumption and carbon footprint by April 2009;

3. To introduce an integrated carbon reduction commitment Environmental Impact Management service incorporating renewable technology off-set solutions by April 2009; and

4. To recycle 60% of our office consumable materials waste by April 2009.



We know that the best way to make our clients’ businesses more sustainable is to use less – less water, less energy, less paper, less plastic. Combine that with a smart approach to recycling and we can help them see their costs, as well as their footprint, go down.

Carbon Trust and Energy Saving Trust consultationDuring 2007 we worked with the Carbon Trust and the Energy Saving Trust to identify more opportunities to cut our energy and fuel consumption.

Although absolute CO2 emissions have increased over the past year by the equivalent of 916 tonnes, the normalised emissions (taking into account growth in average employee numbers and revenue) have reduced by 8.6% and 10.0% respectively. The net reduction is due to an environmental improvement programme that has included improved energy ‘house-keeping’ in offices and fuel saving initiatives due to car sharing, use of public transport and tele-conferencing. Water consumption has increased and initiatives will be put in place to mitigate this trend going forward.

Vehicle fleet impactDuring 2008 MITIE’s fleet services team will be accurately monitoring and reporting on our vehicle fleet carbon emissions. With the help of newly developed fleet software and a large number of on-board vehicle telematics systems that enable us to optimise travel distances for our mobile workforce, we will be able to literally drive down our emissions.

Most of our vehicles have modern Euro IV compliant diesel engines. These have the best fuel performance in their class, which reduces our CO2 emissions. Some of our drivers have also been through the Safe and Fuel Efficient Driving – you can read more about this in the health and safety section of our report.

Carbon Disclosure ProjectThe Carbon Disclosure Project (CDP)is a global initiative to inform investors of the risks and opportunities presented by climate change and to inform company management of their shareholders’ views on the issue. Every year the CDP does a survey of the environmental performance of leading companies, and in 2007 we took part for the first time. We gave them information about our climate change risks, opportunities and strategy, and our current CO2 emissions. In 2008 we also completed their Supply Chain Leadership Collaboration questionnaire, which will make it easier for our clients to monitor our carbon footprint performance.

Less is more

Environment KPIs trend analysis Unit FY2007/08 FY2006/07 % differenceTotal revenue £m 1,407.2 1,228.8 +14.5

Profit before tax £m 67.9 56.6 +20.0

Average number of people Number 47,959 42,367 +13.2

Total CO2 emissions Tonnese 30,628 29,712 +3.1

Normalised CO2/ave. person Tonnese 0.64 0.70 (8.6)

Normalised CO2/£ revenue Kge 21.76 24.17 (10.0)

Total water consumption m3 17,103 14,798 +15.6

Normalised water/ave. employee m3 0.36 0.35 +2.9

Around 50% of the UK’s CO2 emissions are attributed to the construction and operation of buildings. More often than not, we’re responsible for the heating, ventilation, lighting and air-conditioning in our customers’ buildings, which puts us in an ideal position to help them reduce their energy consumption. The average office wastes a colossal £6,000 every year simply by leaving equipment on at night and over the weekends. That is why our security patrols don’t just check for problems, but also turn off clients’ PCs and lights too.


Totals CO2 equivalent (tonnes)* CO2 per Sq m (kg) 2007/08 2006/07 Units 2007/08 2006/07 2007/08 2006/07

Energy consumption

Electricity 4,174,213 3,772,813 kWh 1,795 1,622 46.68 51.84

15,027 13,582 GJ

Gas 2,410,864 1,637,637 kWh 458 311 11.91 9.94

8,679 5,895 GJ

Sub total 6,585,077 5,410,450 kWh 2,253 1,933 58.59 61.78

23,706 19,477 GJ

Travel LPG 72,493 81,351 litres 108 121

Petrol 1,512,734 1,678,068 litres 3,479 3,860

Diesel 9,424,863 9,048,552 litres 24,787 23,798

Sub total 11,010,090 10,807,971 litres 28,374 27,779Total CO2 emissions 30,627 29,712Total water consumption 17,103 14,798 m3

Annual waste figures (based on office area)General waste 568.8 tonnese

Recycling 472.9 tonnese

% Recycling 45.4%

* CO2 calculated using figures from DEFRA.

£6,000Average office waste through leaving equipment on at night and weekends.


£8,000Working closely with staff and pupils, we helped Castle Vale School save 51 tonnes of C02 and over £8,000 per year.


Castle Vale School

In 2007 we won a ‘highly commended’ certificate in the FM Excellence Awards for Sustainability, to recognise our partnership with Castle Vale School in Birmingham, home to one of our Skills Centres. The award was for our support for their entry in the ‘Go Green’ challenge on Teachers TV.

MITIE’s Energy Manager worked closely with both staff and pupils to help them reduce their electricity and gas use by 10% in a single term. The plan ranged from purchasing and monitoring to energy awareness, and achieved not only energy savings, but more recycling, both at home and school. The total amount saved came to 51 tonnes of CO2 and over £8,000 per year.

HRH The Prince of Wales’s May Day Business Summit on Climate Change, LondonOn 1 May 2008 MITIE was invited to demonstrate our innovative approach to tackling climate change at our ‘making your buildings and facilities smarter and greener’ – themed stall. The May Day Network of companies is the largest group of companies committed to working collaboratively to reduce carbon emissions.

Keynote speeches on the environment from HRH Prince Charles and Prime Minister Gordon Brown were presented via a live link to the conference. MITIE hosted a ‘market stall’ where we promoted our wide range of environment and sustainability products and services. Visitors to our stall were particularly interested in our TREEHUGGER™ waste management service, and our exciting new renewable energy technology capabilities.

Recycling of office consumable materialsThese days, recycling is a crucial and commercial aspect of our business, especially with landfill costs having increased by £8 per tonne from April 2008. We collect, recycle and deal with over 350 different types of waste, and because we’re not tied to using our own disposal facilities we can shop around to get our clients the best price from local suppliers, which also helps to cut traffic emissions.

We also practice what we preach and have segregated recycling facilities at many of MITIE’s offices. These can deal with paper, cardboard, plastic and toner cartridges, and use our own patented TREEHUGGER™ range of products and services.

Redundant computers, laptops, monitors and electrical equipment are also recycled in accordance with Waste Electrical and Electronic Equipment (WEEE) regulations using the supplier’s asset recovery scheme. Mobile phones and accessories are recycled via the Fonebak scheme, with £5 donated to our selected charities for every mobile phone recycled.

Environmental Champions ForumThe Environment Champions Forum makes the most of the skills and experience we have across the whole Group. The forum members have helped to develop MITIE’s environmental strategy, and pioneered a host of energy-saving ideas, as well as volunteering their expertise to help at local schools and conservation projects.

Sustainability DayIn January 2008 we ran our first Sustainability Day in partnership with the HM Treasury (HMT) offices in Norwich, one of our major clients. One of the Government’s sustainability objectives is to engage more actively with local communities, and we worked very successfully in partnership with HMT to create an event that ended up being supported by Norfolk Police, Broadland District Council, The Norfolk Wildlife Trust, EDF Energy and St Williams Primary School.

350We collect, recycle and deal with over 350 different types of waste.


The UK is one of the windiest countries in Europe, making wind power an ideal source of renewable energy. The Department for Business, Enterprise and Regulatory Reform estimates that by 2050 up to 40% of the UK’s electricity could be produced by microgeneration, and 6% of that could be from small wind turbines.

We wanted to make this type of clean sustainable energy available to more of our clients, and have formed a partnership with quietrevolution, the award-winning wind turbine design company to help us do it. quietrevolution were also keen to work with us due to our strong track record in energy management and consultancy across the whole of the UK.

As the name suggests, quietrevolution turbines are virtually silent, as well as being attractive to look at and extremely efficient. The elegant twist-shaped design works well even in high winds and a single turbine can generate 10,000kWh per annum, equivalent to 10% of the energy requirements of a 600m2 office building. In the UK, this is equivalent to displacing 4,000–6,000kg of annual CO2 emissions from equivalent grid-generated electricity.

In the past, many wind generation schemes were refused planning permission because of noise, vibration, or their impact on surroundings. quietrevolution’s designs have managed to deal with almost all of these objections,

which is why so many local councils across the UK recommend them for small-scale urban wind generators.

quietrevolution turbines will be a key component of many of our low carbon schemes, and an integral part of the engineering services team’s new microgeneration offering. The first project to go live was at Merton Abbey Mills in London which is used to power The Colour House Children’s Theatre.

quietrevolution

“ We are absolutely delighted to have been selected by quietrevolution as their install partner. Their products have massive credibility within the renewable energy marketplace and this partnership will add a lot of weight to our offering and assist in our drive to be a major player within this sector.” Paul Burnett, Strategic Development Director of MITIE’s energy team.


Geothermal energy As part of the UK government’s renewable energy drive, every significant new building in the UK must now generate at least 10% of its power onsite from renewable sources. Faced with this challenge Standard Life Investments came to us to help them install a geothermal energy system at their new Guildford offices.

The average temperature just below the earth’s surface is at a constant 8 –13º C, which is warmer than the air in winter and cooler than the air in summer, making geothermal heat pumps ideal to heat as well as cool buildings. Pumps are used to draw heat up via pipes inserted into the ground.

Our energy experts worked closely with Standard Life’s professional team from the early design stages and developed an energy solution utilising this technology for the Guildford complex.

By drawing heat vertically from the ground, we’ll minimise the amount of fossil fuels required to heat or cool the building throughout the year. Due for completion in October 2008, MITIE will also be carrying out the mechanical and electrical elements of the design and build.

Standard Life Investments

“ We demonstrated a great understanding of the renewable technology required. This gave the client the confidence to not only use the technology but also to negotiate with us to do the project. MITIE’s pro-active approach and knowledge of the technology was key in winning the project.” Stephen Newman, Technical Director of MITIE’s engineering services division.

Woodbridge Road,Guildford heat pump system

1. Cooled air is delivered to the space and heat energy is removed.

2. The heat pumps absorb the energy from the space and reject it to the ground loop.

Centrifugal fan dry cooler located in car park plant area rejects surplus heat in summer.

The heat pumps also deliver hot water.

Heat transferred to the ground.

3. Heat is rejected to the ground which is at a constant temperature.

Mains cold water in.Hot water out.


MITIE’s Stephanie Winn, finishing this year’s London Marathon. Her sponsorship donation for Great Ormond Street Hospital was match-funded by MITIE.

Going the extra mile


Going the extra mile

Community


Community 2007/08 measurements

CR Index 2007 – community managementWe scored a maximum 100% in three of the five areas assessed, outperforming all other index participants. Our performance in the other two areas (targets (Q18) and community partnerships (Q20)) demonstrates that there is still some room for improvement during 2008/09 for us to focus on.

Communitystrategy(Q17)

100%

91%

90%

Targets(Q18)

75%

76% 83

%

Communityprogrammes(Q19)

100%

94%

95%

Communitypartnerships(Q20)

75%

64%

79%

Monitoring(Q21)

100%

76% 82

%

MITIE


All Sector Index

Source: BiTC 2008 CRIndex Feedback Report.

We believe in giving something back to the many communities we work in: building links with local businesses, supporting our people in their own neighbourhoods and reinforcing our reputation as a responsible company. We give our skills and our time, as well as money to supporting people volunteering and fundraising projects.


Our Skills Centres support continues and has increased with the opening of the new Airdrie Skills Centre in November 2007. Over 500 students are now undertaking vocational construction courses in MITIE’s Skills Centres.

MITIE’s employee ‘World of Work’ and ‘Environment Awareness’ volunteering projects were held at five Skills Centres schools delivering: careers guidance, employability skills training and environment awareness to nearly 1,000 year ten students. Excellent feedback from the students, teachers and volunteers confirmed the positive impact of these events.

MITIE’s volunteers have organised many events, raising awareness and much needed funds for our six selected regional charities throughout the year.

Significant financial and in-kind support has also been given to refurbish buildings at the Bansang Children’s Hospital in the Gambia by MITIE and our suppliers. A 74% improvement in child mortality has resulted in part from our mechanical and electrical engineers designing and installing solar electricity to the children’s ward.

The Partners in Leadership (PiL) programme has officially ended but our support continues.

Our support continued during 2007 for the Prince’s Trust CBSLG, by providing work experience placements for the ‘Getting into Construction’ programme.

Community targets 2007/08

To support and develop our seven existing MITIE Construction Skills Centres and open another Skills Centre during 2007 in Airdrie.

We will arrange employee community volunteering projects in 2007.

We will continue our financial and in-kind support for MITIE’s elected six UK regional charities;

• Great Ormond Street Hospital, London;• Yorkhill Children’s Foundation, Glasgow;• Naomi House Hospice, Winchester;• Christie’s Cancer Hospital, Manchester;• CLIC Sargent, Bristol; and• Acorns Children’s Hospice, Birmingham.

We will continue our involvement in the Business in the Community Partners in Leadership (PiL) programme.

We will continue our support for the Prince’s Trust as founder members of the Construction and Business Services Leadership Group (CBSLG).



Objective: To provide support to the communities where we live and work.

Our top four targets: 1. We will maintain our support and develop

MITIE’s Construction Skills Centres;2. We will carry out four employee

volunteering team projects in the community by April 2009;

3. We will continue our financial and in-kind support for MITIE’s elected six UK Regional Charities; • Great Ormond Street Hospital, London; • Yorkhill Children’s Foundation, Glasgow; • Naomi House Hospice, Winchester; • Christie’s Cancer Hospital, Manchester; • CLIC Sargent, Bristol; • Acorns Children’s Hospice,

Birmingham; and4. We will deliver ‘World of Work’ events

in at least six schools by April 2009.



Sharing our skills

Skills CentresOur Skills Centres are particularly close to our hearts, and are our most important and visible commitment to supporting the development of young people. The first Skills Centre was opened in Portsmouth in 2001 and was hailed at the time as a revolutionary new way to tackle the vocational skills shortage facing the UK by bridging the gap between education and employment. The centres give school children an introduction to construction and building skills. Over 500 students are currently studying on nationally recognised construction vocational courses in the MITIE Skills Centres.

During 2007/08 we opened a further Skills Centre at Caldervale High School in Airdrie – the first of its kind in Scotland. It comes at an important time for the country, which is facing its own vocational skills shortage: Scottish Enterprise, the main economic development agency for Scotland, is predicting a skills gap that would amount to a 100,000 job deficit each year over the next decade.

We worked closely with Caldervale High School to convert a space into the dedicated construction Skills Centre and provided tools, equipment and personal protective equipment. This is the first time a business partner has funded a vocational centre in a Scottish school, and we’re proud to be the pioneers. Furthermore, we are pleased to announce that our Skills Centres have recently received Big Tick re-accreditation for 2008.

“ I am delighted that Caldervale High is home to this terrific new Skills Centre and that our pupils are among the first to benefit from such a high quality facility… It has given our students a real feel for a professional building environment and a taste of life in the construction industry.” Caldervale High’s Head Teacher, Colin Bulloch.

Employee volunteering strategyMITIE’s people have a wealth of skills and experience that we can share with the community. Since 2005, over 1,000 students have benefited from our ‘World of Work’ days, which are designed to increase their employability skills.

We are keen to expand the understanding of opportunities within the workplace to more young people, and in 2008/09 we’ll build upon the ‘World of Work’ programme. This initiative will be designed to help young people to understand the roles that could be available to them when they leave school.

In 2007, we also ran two environment awareness days to showcase energy conservation and renewable energy technology. Over 100 MITIE volunteers participated in these events, across six of our eight Skills Centre schools.

1,000students have benefited from our ‘World of Work’ days.

The local community is important to MITIE. It’s where our people live and where our businesses work. In 2007/08 the value of our community investment amounted to nearly £600,000. As we continue to grow into a world-class company that delivers world-class services, our commitment to the wider community grows with us, and we now play our part in communities across the world, as well as at home in the UK.


Bansang Hospital appeal – GambiaFrom its base in a remote area of the African bush, Bansang Hospital looks after the healthcare needs of some 600,000 people from the Gambia, Senegal, Mali, Guinea Bissau, Guinea Conakry and refugees from Sierra Leone. In recent years it had become increasingly difficult for the hospital to retain fully trained and qualified staff, and poor accommodation and living conditions have been a major factor in this.

Our most recent work with the hospital was a complete refit of the old colonial building to create 12 single bedrooms and two self-contained units for married medical staff. Our mechanical and electrical engineers worked alongside local workers on the new ‘MITIE House’ during 2007, and it opened in 2008. The project used local materials wherever possible, as well as other items donated by our UK suppliers. We also made a point of training the local people who worked at the site, so that they can take on the maintenance of the building themselves.

It’s been a thoroughly worthwhile project to be involved with, and builds on the work we had already done to design and install a solar panel to bring cheap, renewable and reliable electricity to the hospital’s children’s unit.

Moor TreesMoor Trees is a conservation charity working mainly in the Dartmoor area restoring native woodland. We first got involved with them in 2005, when we were looking for a partner to help us offset the emissions from our vehicle fleet. We chose Moor Trees because of their passion for the countryside, and their positive approach to conservation and community involvement, which are important to us too.

We also wanted to build a partnership that could become part of our programme of CR Volunteering Days.

We held one of these on Dartmoor for the first time in 2006, and our team helped to build a rodent fence, construct a buzzard perch, and plant trees. Our support for Moor Trees included the donation of a minibus in 2007.

North

Christie’s Cancer Hospital, Manchester

Scotland

Yorkhill Children’s Foundation

Midlands

Acorns Children’s Hospice

South West and Wales

CLIC Sargent

South

Naomi House Children’s Hospice

South East

Great Ormond Street Hospital

Community investment 2007/08 £Donations to charities, community projects etc. 151,154

Match-funded cash donations to charities 13,390

Value of employee time volunteered 102,963

Value of gifts in-kind donations 211,095

Community affairs management costs 113,530

Total community investment 592,132Community investment as a % of profit before tax 0.87%

Political donations – it is not MITIE’s policy to contribute political donations.

Community investment KPIs trend analysis Unit FY2007/08 FY2006/07 % differenceTotal revenue £m 1,407.2 1,228.8 +14.5

Profit before tax £m 67.9 56.6 +20.0

Average number of people Number 47,959 42,367 +13.2

Community investment £ 592,132 611,836 (3.2)

% of profit before tax % 0.87 1.08 (21.0)pps

MITIE’s community investment decreased by £19,704 (3.2%) compared to the previous reporting period, partly due to the lower financial commitments required in financing the eighth MITIE Skills Centre in Airdrie (compared to three Skills Centres during 2006/07).

MITIE’s regional charities


GRI indicators

For the first time in our CR reporting we’ve published a cross-referencing of our report to key GRI indicators to help readers find key areas of interest. We’ve been assisted in the preparation of this table by Corporate Citizenship and it’s our intention to supply a more comprehensive index in our next report.

1.1 CEO Statement Page 3 EC3 Pension obligations ARA Note 34 page 86

1.2 Key risks ARA Principal risks and uncertainties pages 46–47

EC4 Significant government assistance

None

2.2 Primary services Pages 6–7 EC7 Local hiring of managers

Hiring takes place locally and nationally

2.3 Operational structure Pages 6–7 EN3 Direct energy Page 45

2.4 Headquarters Back cover EN4 Indirect energy Page 45

2.5 Countries of operation United Kingdom EN5 Energy saved Page 44

2.6 Legal form UK plc EN8 Water Page 44

2.7 Markets served Pages 6–7 EN16 Greenhouse gas Page 44

2.8 Scale of organisation Pages 6–7, also see ARA page 3

EN21 Water discharge Overwhelmingly to mains drainage

2.9 Changes in reporting period

ARA Acquisitions page 21–22

EN22 Waste Page 45

2.10 Awards received ARA corporate responsibility page 36

EN29 Transport Pages 44–45

3.1 Reporting period Year ending 31 March 2008

PR2 Health and safety breaches

ARA CR page 36

3.2 Most recent report CR Report 2007 LA1 Workforce by type Page 26

3.3 Reporting cycle Annual LA5 Minimum notice period Fully compliant with UK law

3.4 Contact point Page 57 LA7 Occupational injury Page 16

3.5 Process for defining content

Based on BiTC model categorisation

LA8 Serious disease programmes

Page 20

3.10 Significant changes from previous reports

None LA10 Hours of training Pages 26–31

3.13 Policy on independent assurance

Have chosen not to assure

LA13 Composition governing body

ARA corporate governance statement page 41

4.1 Governance structure Page 11 HR2 Contractors screened Page 36

4.2 Is Chair also CEO? No SO1 Community engagement

Pages 50–55

4.3 Director independence ARA Director independence page 42

SO6 Political donations ARA donations page 51

4.5 Executive remuneration ARA Directors’ remuneration report page 52

4.7 Board expertise ARA Director appointment induction and training page 43

4.9 Managing SEE risk/opportunity

ARA Principal risks and uncertainties pages 46–47

4.10 Board performance ARA Review of Board performance page 43

Company profile disclosures Performance indicators

ARA MITIE Group PLC Annual Report and Accounts 2008

GRI Global Reporting Initiative


cr@ mitie. co.uk

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CR Report 2008

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