2005 - crest nicholson · executive summary 5 0 10 20 30 40 50 60 70 80 90 100 crest nicholson...

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BUILDING HOMES. CREATING COMMUNITIES CORPORATE RESPONSIBILITY REPORT 2005 STRIKING THE BALANCE BETWEEN ECONOMIC, SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES 2005

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Page 1: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

BUILDING HOMES. CREATING COMMUNITIES

CORPORATE RESPONSIBILITY REPORT 2005STRIKING THE BALANCE BETWEEN ECONOMIC, SOCIAL ANDENVIRONMENTAL RESPONSIBILITIES

2005

Page 2: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

Chief Executive’s Statement• Sustainable Development Vision• Sustainable Development Strategy• Performance• Continual Improvement

• Social Responsibility• Stakeholder Engagement• Human Resources• Occupational Health and Safety

Community and Environment

• Community Building• Environmental Stewardship

Marketplace

• Contractors• Suppliers• Sales, Marketing and Customer Services

Verification Statement

ScopeThis report covers Crest Nicholson’s socialand environmental performance for thefinancial year to 31st October 2005, unlessotherwise stated.

Report formatThe content of this report has been set outto meet our business requirements andthose of our main stakeholders. We havealso followed the Global Reporting Initiative(GRI) guidelines where possible. This enables performance comparisonwithin the development sector and acrossother business sectors. Our main non-financial achievements and areas for

improvement are summarised in the ChiefExecutive’s Statement and in more detail ineach section of the report. Detailed tables ofGRI economic, environmental, social andsociety indicators are provided in the‘Sustainable Development’ section of ourweb site www.crestnicholson.com under‘Reports’. Additional information can also befound on our web site under ‘Policy’ and‘Case studies’.

DataCrest Nicholson’s Board and Committee forSocial Responsibility have reviewed andapproved this report following verification byan independent external consultant. Within

the Sustainable Development section, onour web site, we indicate where we do nothave data or the management systems tocollect certain data. Where sector ornational benchmarks are not available wecompare our performance against previousyears' measurements. We have used re-stated data from the 2005 Annual Reportwhere relevant. In some cases financial datahas been used to estimate environmentalperformance, using conversion factors. In such cases, the measurements are notedas estimates.

Executive Summary

Governance

Page 3: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

BUILDING HOMES. CREATING COMMUNITIES

STRIKING THE BALANCE BETWEEN ECONOMIC, SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES

SUSTAINABLE DEVELOPMENT VISION • SUSTAINABLE DEVELOPMENT STRATEGY •

PERFORMANCE • CONTINUAL IMPROVEMENT

2005EXECUTIVE SUMMARY

Page 4: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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We are pleased to highlight the keychanges we have made to our businessin 2005 and explain how we integratethe economic, social andenvironmental aspects of ouroperations into our managementsystems. This report sets out how weperformed against the targets we set inour Corporate Responsibility report2004 and our sustainable developmentplans for 2006 and beyond. We alsostate the challenges that we face andthe progress we intend to make.

Sustainable Development VisionOur vision is to increase shareholdervalue by developing sustainablecommunities where people can live,work and play in high quality built andnatural environments. We continue todeliver a supply of affordable homesthat will help meet the demands of abroader section of society. By thisapproach Crest Nicholson believes itcan increase the quality of urban lifewhilst making a contribution to globalsustainability.

Sustainable DevelopmentStrategySustainable development, designinnovation and build quality were thecore values that differentiated us in themarketplace in 2005. This enabledCrest Nicholson to become the partnerof choice for the public and privatesectors. Our strategy is to work withlocal planning authorities, housingassociations and other land owningagencies in raising social andenvironmental standards in mainstream housing and communityregeneration. We have adopted modernmethods of construction that exceedthe increasing standards set foraffordable, secure and flexible homes.By using innovative contractors andsuppliers we are increasing theefficiency of our homes and will makerenewable energy, waste reduction andwater conservation economicallyviable. As climate change is a potentialcommercial risk to Crest Nicholson, it has been acknowledged by our Risk Review Committee together withother social and environmental issues.Crest Nicholson also plans to selectcontractors with good ‘climate change’capabilities, developing and promotingits own expertise in climate changedesign and there by future proofing ourbusiness and reputation.

Chief executive’s statement

IMAGE: STEPHEN STONECHIEF EXECUTIVE

“Crest Nicholson is aresidential and mixed-usedevelopment company withemphasis on creatingsustainable communities”

Page 5: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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IMAGES: INGRESS PARK REGENERATION

Page 6: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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0

20

40

60

80

100

2006200520042003

Pre

-tax

pro

fit

(£m

)

Year

*

* No target

FINANCIAL SUSTAINABILITY: GROUP PRE-TAXPROFIT

0

20

40

60

80

100

2006Target

200520042003

Per

cen

tage

of

hom

es b

uil

t on

‘bro

wn

fiel

d’ la

nd

Year

*

* No target for UK Homes

Government target 60%

Crest Nicholson UK Homes average (The Environment in your Pocket Handbook 2006)

LAND RESOURCES: HOMES BUILT ON‘BROWNFIELD’ LAND

PerformanceThis section provides information on the Group’s performance in meeting its commitments from 2004; the key performanceindicators for 2005 and targets set for 2006. Data for financial year 2003 is also provided for comparison.

Financial sustainability“We increased shareholder value through sustainabledevelopment and community provision, achieving a strong set of results in challenging market conditions.”

Land resources“By following our ‘brownfield’ land strategy we exceeded the UKGovernment’s target of 60% of our homes being built onpreviously used land. We also added value to this land throughsustainable development and our housing portfolio valuecontinued to rise.”

Page 7: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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5

0

10

20

30

40

50

60

70

80

90

100

Wes

tbur

y(£

893m

)

Red

row

(£67

0m)

Per

sim

mon

(£2,

130m

)

Bov

is H

omes

(£56

0m)

Wils

on B

owde

n(£

1,28

2m)

Bar

ratt

Dev

elop

men

ts(£

2,32

7m)

Bel

lway

(£1,

093m

)

McC

arth

y &

Sto

ne(£

317m

)

Tayl

or W

oodr

ow(£

3,35

9m)

Geo

rge

Wim

pey

(£3,

006m

)

The

Ber

kley

Gro

up(£

1,27

2m)

Cre

st N

icho

lson

(£63

1m)

2003

2005

Per

cen

tage

sco

re

HUMAN RESOURCES: PERMANENT STAFFTURNOVER

CORPORATE SOCIAL RESPONSIBILITY: WWF, INSIGHT INVESTMENT AND HBOS HOUSE BUILDINGCOMPANY RANKING BASED ON SCORES AFTER ENGAGEMENT WITH PARTICIPANTS, IN 2003 AND 2005 (BI-ANNUAL BENCHMARKING)

0

5

10

15

20

25

2006 Target200520042003

Per

man

ent

staf

f tu

rnov

er (%

)

Corporate social responsibility“We improved ethical, socialand environmental governanceand achieved joint top positionin the WWF sustainablehousing league table. Weremained in the Business inthe Community, Top 100Companies that Count andretained our membership ofthe FTSE4 Good Index Series.”

Human resources“We progressed implementation of the annual staff appraisalsystem to encourage employee performance. We also continuedour sustainable development consultation workshopprogrammes with project teams, contractors and suppliers atPark Central, Birmingham and Harbourside, Bristol. Staff turnover reduced to 17%.”

Page 8: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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“We continued to maintain effective policies, procedures and standards and reduced the totalnumber of incidents. However, we are yet to achieve our target of maintaining the Annual InjuryIncident Rate (AIIR) below the average rate for the sector, which we will be driving forward as partof our commitment to continual improvement.”

0

200

400

600

800

1000

1200

1400

1600

1800

2000

OctSepAugJulJunMayAprMarFebJanDecNov

Crest Nicholson Cumulative AIIR for 2004/2005

HS

E R

epor

tabl

e In

juri

es p

er 1

00,0

00 e

mpl

oyed

Month

The construction industry AIIR for 2003/2004

Crest Nicholson annualised cummulativeAIIR for 2004/2005

OCCUPATIONAL HEALTH AND SAFETY: ANNUAL INJURY INCIDENCE RATE (AIIR)

The construction industry AIIR for 2003/2004was 1,023 reportable injuries per 100,000employed. Published in ‘Health and SafetyStatistics Highlights 2003/2004’ by the Healthand Safety Commission (HSC)

Crest Cumulative AIIR for 2004/2005 is thetotal number of Reportable Injuries notified to the HSE (38) divided by the Average NumberEmployed in the same period (2937) multipliedby 100,000 = 1,294

Crest Projected AIIR for 2004/2005 hasestimated the annual number or RIDDORReportable incidents based on the currentoccurrence rate.

38 incidents have been reported in 12 monthsgiving an average reportable rate of 3.166 per month.

Page 9: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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COMMUNITY: PERCENTAGE OF HOMES BUILT FOR SOCIAL HOUSING

0

5

10

15

20

25

30

2006 Target200520042003

Soc

ial h

ousi

ng

perc

enta

ge o

f to

tal h

omes

sol

d

Year

MARKETPLACE: CUSTOMER SATISFACTION DEPARTMENT OF TRADE AND INDUSTRYCONSTRUCTION EXCELLENCE KEYPERFORMANCE INDICATORS

0

1

2

3

4

5

6

7

8

9

10

2006 Target200520042003

Cu

stom

er s

atis

fact

ion

(sco

res

out

of 1

0)

Year

Before Sales Customer Satisfaction - Service (1-10)

After Sales Customer Satisfaction - Product (1-10)

Department of Trade and Industry Construction Excellence Key Performance indicators

Community building“We continued the long term growth in the provision of affordablehomes against a slow down in housing authority programmesand still exceeded our target of 550 homes by 13%. We achievedonly a small increase in build sites being registered to theConsiderate Constructors Scheme.”

Marketplace“We improved environmental procedures for the procurement ofmodern methods of construction, waste management, energysupply and paper. We were successful in the ODPM ‘Design forManufacture Competition’ for affordable and sustainable homes.We also increased customer satisfaction and sales of openmarket housing.”

Page 10: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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Our priority was to reduce environmental impact and to improve the natural and built environments.

0

20

40

60

80

100

2006 Target200520042003

En

ergy

eff

icie

ncy

ave

rage

-all

hom

es S

AP

%

Year

CLIMATE CHANGE : HOME ENERGY EFFICIENCYUSING STANDARD ASSESSMENT PROCEDURE(SAP) CERTIFICATE DATA

CLIMATE CHANGE : HOME INSULATIONPERCENTAGE ABOVE BUILDING REGULATIONS

0

5

10

15

20

25

30

2006 Target200520042003

En

velo

pe in

sula

tion

abo

ve b

uil

d re

gula

tion

%

Year* No data

*

CLIMATE CHANGE : CARBON DIOXIDE EMISSIONSUSING ECOHOME CERTIFICATE DATA

0

5

10

15

20

25

30

35

2006 Target200520042003

Ave

rage

C02

em

issi

ons

(kgC

02/m

/ye

ar)

Year

*

* No data

2

Climate change and carbon dioxide emissions“For the first time we measured total ‘greenhouse gas’ emissionsfor our offices, car fleet and build sites at 5,576 tonnes of carbondioxide equivalent. We aim to reduce this figure on average by 4%per year by reviewing our car fleet policy and switching energysupplier. We also estimated predictive carbon dioxide emissionsfor our homes which we aim to reduce in the future throughmodern methods of construction and insulation.”

Home energy efficiency and insulation“Energy efficiency ratingsremained high due to increasedinsulation and the use of highenergy efficient boilers. Theseadded value to our homes byhelping to reduce customersenergy consumption, bills andcarbon emissions.”

Page 11: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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WASTE MANAGEMENT: VOLUME OF BUILD WASTE

0

2

4

6

8

10

12

2006 Target200520042003

Bu

ild

Was

te (c

ubi

c m

/£1

00K

sal

es c

ost)

3

Year

ECOHOMES: PERCENTAGE OF INDEPENDENTLYCERTIFIED HOMES

0

10

20

30

40

50

2006 Target200520042003

Eco

Hom

e ce

rtif

icat

ion

(% o

f n

ew b

uil

d)

Year* No data

*

POTABLE WATER USE EFFICIENCY: USINGCERTIFIED ECOHOMES ASSESSMENT DATA

0

10

20

30

40

50

2006 Target200520042003

Wat

er e

ffic

ien

cy (m

/be

d sp

ace/

year

)3

Year* No data

*

Code for Sustainable Homes maximum usage rate of water

Build site waste management“Build skip waste was reducedfor the third consecutive yearand the cost of waste was keptbelow 0.5% of build costs. Ourwaste management systemintroduced more segregationand recycling.”

EcoHomes“We increased the number of homes independently certified under the EcoHomes system

achieving more ‘good’ ratings but no ‘very good’ ratings compared to the previous year. However, we established a record number of ‘very good’ EcoHome and carbon neutral developmentschemes in the planning system.”

Potable water use“We reviewed our mandatory trading agreements andspecifications for domestic water appliances and ensured theaverage home water efficiency was below the maximum of 46 m3

/ bed space / year to be set by the proposed ‘Code for SustainableHomes’.”

Environmental protection“A zero tolerance was maintained on environmental pollutionprosecutions and fines as management was informed of rapidlychanging environmental legislation and more robust emergencypreparedness and response procedures.”

Page 12: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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Areas for improvement in 2006 are as follows:

Corporate Governance• To review social and environmental

risks and integrate them into thecorporate risk register.

• To improve performances in businessinvestment benchmarking indexes.

• To participate in the 2006 CarbonDisclosure Project.

Human Resources• To maintain a low level of staff

turnover.

• To progress implementation of theannual staff appraisal system to thenext level.

• To progress involvement in meetingbuild sector skill shortages andapprenticeship schemes.

Occupational Health and Safety• To reduce the annual injury incident

rate (AIIR) below the constructionindustry average.

• To continue to improve the Groupoccupational health and safetymanagement system.

Community planning and design• To embrace the principles of

sustainable community planning,flexible living spaces and security.

• To establish the use of modernmethods of construction foraffordable and sustainable housing.

• To increase numbers of affordablehomes.

• To reinforce our commitment to theConsiderate Constructors Schemeregistration.

IMAGE: KINGS WARREN, NEWMARKET - LINKING COMMUNITIES

Continual improvement

Page 13: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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IMAGE: PARK CENTRAL, BIRMINGHAM - WORKING IN A TRUE PARTNERSHIP WITH BIRMINGHAM CITY COUNCIL OPTIMA COMMUNITY ASSOCIATION AND EXISTING RESIDENTS

Page 14: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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• To maintain a high percentage ofhomes built on ‘brownfield’ sites.

• To implement sustainabledevelopment and climate changeprocedures for all our staff involvedin development.

• To apply modern methods ofconstruction to increase energyefficiency and reduce build waste.

• To promote and apply the selectionof appropriate micro-renewableenergy technologies.

• To go beyond future legislation onenergy, water and wastemanagement efficiency.

• To improve the Group wide officecampaign for environmental goodpractice.

• To complete an environmental reviewof our car fleet in partnership withthe Energy Saving Trust.

• To increase our performance inEcoHomes and the forthcomingCode for Sustainable Homes.

Contractors and Suppliers• To establish climate change

procedures for selecting key buildsite contractors.

• To form partnerships withcontractors who have renewableenergy technology skills.

• To implement a national wastemanagement system for wastesegregation and recycling.

• To improve build site environmentalgood practice, emergencypreparedness and response.

• To improve procurement of energyefficiency rated goods.

Sales, Marketing and CustomerServices• To provide training and awareness

for all Sales and Marketingpersonnel.

• To complete a survey of customercomfort levels in units certified asEcoHomes ‘Good’.

• To inform customers of futureenergy, water and waste efficienciesincluding renewable energy.

• To introduce a customer sustainablelifestyle guide.

• Implement the Waste and ResourcesAction Programme on the use ofrecycled paper policy.

• Develop and market our expertiseand reputation in homes for thefuture.

IMAGE: PARK CENTRAL BIRMINGHAM - WASTE SEGREGATION AND RECYCLING

Page 15: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

BUILDING HOMES. CREATING COMMUNITIES

STRIKING THE BALANCE BETWEEN ECONOMIC, SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES

SOCIAL RESPONSIBILITY • STAKEHOLDER ENGAGEMENT HUMAN RESOURCES • OCCUPATIONAL HEALTH AND SAFETY2005GOVERNANCE

Page 16: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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Sustainable Development policy‘The Board recognises thateconomic, environmental andsocial responsibilities must belinked to clear commercialobjectives if shareholder valueis to be increased through highlevels of corporategovernance’.

Policy issues 1 Maintain effective ethical, social and

environmental management systems.

2 Measure performance againstethical benchmarks set by non-governmental organisations.

Performance• Progressed implementation of Crest

Nicholson’s SustainableDevelopment policy, includingclimate change strategy, through theboard level Committee for SocialResponsibility.

• Gained joint top position in the WWFand Insight Investment corporateresponsibility table for sustainablehouse builders.

• Remained within the Business in theCommunity ‘Top 100 Companies thatCount’ index and the FTSE4GoodIndex Series.

ManagementThe Chief Executive has specificresponsibility for corporate socialresponsibility and climate change asChairman to the Committee for SocialResponsibility. The managementsystem model for integration isillustrated on page 15. The GroupEnvironment Manager implementsprocedures and communicates therisks and opportunities throughexisting management structures. In 2005, Crest Nicholson committed tomonitor and reduce greenhouse gasemissions and promote the use of renewable energy.

WWF and Insight Investmentbenchmarking 2005

Crest Nicholson’scorporate responsibilityposition was assessedagainst the UK’s leadinghouse builders. In 2005 Crest Nicholsonmoved up to joint first

position in the corporate responsibilityleague table, from fifth position in2003. The Group performed well due toan “increasingly comprehensive,strategic and systematic approach inresponding to Government policy and

market imperatives todeliver sustainablehomes andcommunities”.

Business in the Community andFTSE4 Good index series 2005

Crest Nicholsonperformed well inthe Business in theCommunity indexareas of social and

environmental strategy and integrationof corporate responsibility. Marketplace and work place managementperformance was also outstanding. By meeting the criteria of the FTSE4Good index series Crest Nicholson isimproving the communications of itsHuman Resources policy, stakeholderengagement and environmentalsustainability management for the thirdconsecutive year.

Voluntary initiatives and donationsCrest Nicholson engages in voluntaryinitiatives with donations of time in kindand subscriptions to charities asdetailed in the ‘sustainabledevelopment’ section ofwww.crestnicholson.com. In March2005 the Group made a commitment toThe Variety Club Children’s Charity thatprovides support to sick, disabled anddisadvantaged children. Fund raisingactivities generated in excess of

Social responsibility

Page 17: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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15

£80,000, sufficient to fund fourSunshine Coaches, a lifeline forunderprivileged children to experiencelife beyond the confines of their homesand schools. Both employee and supplycontributions made this possible.

Continual Improvement• To review social and environmental

risks and integrate them into thecorporate risk register.

• To support the WWF and HBOS intheir ‘1 Million Sustainable HomesCampaign’.

• To participate in the 2006 CarbonDisclosure Project to recordresponses to climate change.

• To participate in the FTSE4 GoodEIRIS survey.

• To review subscriptions to charitableorganisations.

0

10

20

30

40

50

60

70

80

90

100

2006 Target200520042003

BiT

C C

orpo

rate

Res

pon

sibi

lity

Inde

x sc

ore

%

Year

SOCIAL RESPONSIBILITY: BiTC CORPORATERESPONSIBILITY INDEX SCORES

SOCIAL RESPONSIBILITY: BiE BUSINESS IN THEENVIRONMENT INDEX SCORES

0

10

20

30

40

50

60

70

80

90

100

2006 Target200520042003

BiE

En

viro

nm

enta

l In

dex

scor

e %

Year

0

10

20

30

40

50

60

70

80

90

100

Wes

tbur

y(£

893m

)

Red

row

(£67

0m)

Per

sim

mon

(£2,

130m

)

Bov

is H

omes

(£56

0m)

Wils

on B

owde

n(£

1,28

2m)

Bar

ratt

Dev

elop

men

ts(£

2,32

7m)

Bel

lway

(£1,

093m

)

McC

arth

y &

Sto

ne(£

317m

)

Tayl

or W

oodr

ow(£

3,35

9m)

Geo

rge

Wim

pey

(£3,

006m

)

The

Ber

kley

Gro

up(£

1,27

2m)

Cre

st N

icho

lson

(£63

1m)

2003

2005

Per

cen

tage

sco

re

SOCIAL RESPONSIBILITY: COMPANY RANKING IN THE WWF, INSIGHT INVESTMENT AND HBOS ONE MILLION SUSTAINABLE HOMES CAMPAIGN

Page 18: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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E Social ResponsibilitySocial responsibility is the integrationof the economic, ethical, social andenvironmental management systemswithin the Group. Corporategovernance relating to centralisedfinancial controls and risk identificationare recorded in the Annual Report andAccounts 2005.

Sustainable Development policy’The Committee for SocialResponsibility will monitor review andreport on all policy commitments andobjectives annually. The annual

Corporate Responsibility Report andsupporting monitoring programmesshould ensure our sustainabledevelopment objectives and targets aremet and communicated to allstakeholders.’

Crest Nicholson’s management flowdiagram illustrates how existingeconomic, social and environmentalresponsibilities are continuallyintegrated and improved within existingmanagement systems.

TOP AND BOTTOM: THE DONATION OF A SUNSHINE COACH TO THE VARIETY CLUB

Page 19: 2005 - Crest Nicholson · EXECUTIVE SUMMARY 5 0 10 20 30 40 50 60 70 80 90 100 Crest Nicholson (£631m) The Berkley Group (£1,272m) George Wimpey (£3,006m) Taylor Woodrow (£3,359m)

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IMAGE: SUSTAINABLE DEVELOPMENT MANAGEMENT SYSTEM MODEL

WORKPLACE

Human Resources Health and Safety

Integrating sustainability awarenessinto employee inductions,

training and appraisals

INTEGRATING SUSTAINABILITY Land Buying and Community Planning Design and Buying B

uild Managem

ent

Sus

tain

able

hom

es, l

ifest

yles

and

com

mun

ities

GOVERNANCE

Committee for Social Responsibility Environmental M

anagement Social and environm

ental risks and opportunities

Aud

iting

for

cont

inua

l im

prov

emen

t

A

nnua

l Per

form

ance

Reporting

STAKEHOLDERS

Shareholders Investment Comm

unity Governm

ent

Su

pplie

rs a

nd C

ontr

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Local comm

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Progress towards objectives and targets Implementing procedures

Marketing, Sales and Customer Care

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Sustainable Development policy‘A committee for socialresponsibility has beenestablished to develop positiverelationships with all of ourstakeholders – shareholders,employees, customers,development partners and thecommunities that we create’.

Policy issuesSignificant social and environmentalissues such as customer satisfaction,climate change, renewable energy, the‘green belt’, waste management, sitesafety, community security andaffordable homes were identified assignificant in 2004. Actions on theseissues have been taken in 2005 anddocumented in the following sections.

Performance• Provided secure and well managed

sustainable communities deliveringgood services in high quality builtand natural environments.

• Contributed to urban regenerationand a decent standard of living byproviding affordable and mixedtenure residency.

• Engaged with Government on theSustainable Communities plan, waterefficiency in domestic dwellings andthe urban environment.

• Improved communication of CorporateSocial Responsibility performance.

This year feedback on the CorporateResponsibility Report 2004, includingpolicy, management systems andperformance, was reported via anindependent web site consultation.Some of the main findings were asfollows:

• 52% of online stakeholder feedbackcame from corporate socialresponsibility professionals, studentsand non-governmental organisationsfollowed by academia, investors andconsultants.

• 67% of stakeholders thought thatCrest Nicholson’s CorporateResponsibility Report 2004 wasbetter than others in the sector.

• 37% of stakeholders thought thatCrest Nicholson’s CorporateResponsibility Report 2004 wasbetter than others across all sectors.

• 54% of stakeholders thought thatCrest Nicholson’s CorporateResponsibility Report 2004 hadchanged their opinion of theCompany in a positive way.

Stakeholder engagement

Stakeholder comments for improvement

Sector professional “…consider an overview of company targets and some external voices in way of stakeholder feedback”

Investor Analyst The online report “could be an interactive html with index and page numbers”

NGO “…would like to see some stakeholder comment e.g. from wildlife trusts”

IMAGE: PUBLIC EXHIBITION AND CONSULTATIONAT AYLESBURY, BUCKINGHAMSHIRE

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54%

25%

21%

Postively No Change Negatively

STAKEHOLDER ENGAGEMENT: HAS IT CHANGEDPEOPLE’S OPINION OF CREST NICHOLSON

Commitment

Comparability Communication

Credibility

Content543210

STAKEHOLDER ENGAGEMENT: AVERAGED SCOREPER CATEGORY

Crest Employees

Media

Government

Consultants

Investors

Academia

NGO’s

Students

CSR Professionals

3% 3%6%

9%

12%

15%15%

15%

22%

STAKEHOLDER ENGAGEMENT: ONLINESTAKEHOLDER FEEDBACK RESPONDENTS BY GROUP

6%

67%

15%

12%

Better

Same

Worse

Don't know

STAKEHOLDER ENGAGEMENT: COMPARISONWITH OTHER REPORTS IN THE SECTOR

3%

37%

36%

24%

Better

Same

Worse

Don't know

STAKEHOLDER ENGAGEMENT: COMPARISONWITH OTHER REPORTS ACROSS ALL SECTORS

• Crest Nicholson stakeholdersthought that the CorporateResponsibility Report 2004 scoredhighest in credibility followed bycommitment, content andcommunication. Comparabilitycriteria were rated the lowest.

Continual improvement• To improve corporate responsibility

reporting through the developmentof consistent key performanceindicators and stakeholder comment.

• To establish planning, design andspecification check lists for climatechange awareness, renewable energyoptions, water efficiency and security.

• To establish modern methods ofconstruction for more affordablehomes with greater energyefficiency, flexible living spaces andconstruction waste minimisation.

• To encourage good site practice andpersuade contractors to sign up tothe ‘Considerate ConstructorsScheme’ in order to reduce impactson the local community andenvironment.

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Sustainable Development policyCrest Nicholson’s SustainableDevelopment policy forcontinual improvement isaddressed in employeeinduction and training.

Human Resource policyHuman Resource policy, objectives andprocedures are communicated via anemployee handbook, the Companyintranet and staff presentations.

Policy issues1 Meet the skill requirements of the

business and employee retentiontargets.

2 Establish equal opportunities, lifelong learning and respect for people.

3 Provide a safe, professional andstable work place environment.

Performance• A positive application of equal

opportunities has led to a 3%increase in female employees.

• Staff turnover reduced to 17% in linewith effective human resourcepolicies.

• Staff appraisal progressed whileemployment creation reduced due tomarket conditions.

Human resources

Key Performance Indicators 2003 2004 2005 2006 target

Number of employees 899 887 860 -

Employment creation (net %) 5% 5% 0% -

Permanent staff turnover 21% 21% 17% 17%

Training-average hours / employee - 15 hrs 15 hrs 20 hrs

Employee share ownership 40% 35% 40% 40%(100% eligibility after qualification period)

- No targets/not measured

Equal OpportunitiesAn updated Equal Opportunities policywas made available to employees onthe intranet. The Group continues tosupport part-time and flexible workingfor both men and women.

Employee retention anddevelopmentLabour turnover of staff during theyear was 17%, an improvement over2004. Career development plans will

continue year on year with the roll outof Performance and DevelopmentReviews (PDR). There have been arecord number of internal promotions,some 41, during the period.

Training and skillsmanagementThe Group offers a variety of trainingsolutions to meet the needs of thebusiness and its employees. Theseinclude on the job training, formal off

the job courses, work related projects,coaching and secondments. In additionNational Construction Week issupported and the introduction ofyoung people into the industry throughlocal community initiatives ispromoted.

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IMAGES: EMPLOYEE HANDBOOKG

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Welfare and benefitsA comprehensive employee assistanceprogramme is available to allemployees via the Company intranet.Easy to read guides relating to stressmanagement, whistle blowing, bullyingand harassment are accessible. Afurther invitation to participate in aSAYE share scheme was offered andthe Group also encouraged thoseeligible to participate in a ShareIncentive Plan.

Continual improvement• To establish an apprenticeship

scheme and roll out the programmeto all regions.

• To meet with local further educationcolleges to view their facilities andcourses.

• To employ 12 apprentices to addressthe current skill shortage.

• To conduct a corporate socialresponsibility survey of all employeesto understand their opinions on thesocial and environmental aspects oftheir business activities, product andservices.

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Sustainable Development policy‘Project directors to developgood local relations, raise sitehealth and safety standardsand improve control overenvironmental impacts’.

Occupational Health and Safety policy‘To ensure… the health, safety andwelfare of its employees while theyare at work and of others who may beaffected by the Group’s operations and undertakings.’

Policy issues1 Communication of the health and

safety policy and managementsystem.

2 Establishment of the riskassessment procedure (HSP/003).

3 Reporting of performance oninjuries, diseases and dangerousoccurrences, Health and SafetyExecutive enforcement and trainingand inspection.

Performance• Improved ways to measure

performance by using a balancedscorecard system.

• A total of 216 employees attendedtraining programmes.

• Reduction of injuries, incidents anddays of absence.

• Health and Safety Executiveimprovement notices decreased.

• Royal Society for the Prevention ofAccidents merit award for continuingexcellence.

During the year the regionalbusinesses have managed over 60construction projects and reportedaccurate monthly performance databased on the OHSAS 18001specification. The balanced scorecardfor measuring performance is reportedto the Main Board of Directors on amonthly basis.

Continual improvement• To continually improve the corporate

Occupational Health and Safetymanagement system.

• To continually improve OccupationalHealth and Safety performance.

• To maintain the Annual InjuryIncident Rate (AIIR) below theconstruction industry average.

• To maintain effective health andsafety policies, procedures andstandards.

• To monitor and keep up to date withindustry best practice.

Occupational health and safety

0

200

400

600

800

1000

2006 Target200520042003

Year

Health and safety training (man days)

Number of site inspections

Build site health and safety audits

* No target

*Nu

mbe

r of

tra

inin

g da

ys, i

nsp

ecti

ons

and

audi

ts

OCCUPATIONAL HEALTH AND SAFETY

IMAGE: LORD HUNT, MINISTER OF HEALTH ANDSAFETY (CENTRE) WITH PAUL MEADE, PROJECTCO-ORDINATOR FOR PARK CENTRAL,BIRMINGHAM AND PAMELA FOLSOM, HEALTH AND SAFETY EXECUTIVE INSPECTOR

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Key Performance Indicators 2003 2004 2005 2006 target

1 Reporting of injuries

Injury accidents (0 absence) - 277 232 -

Lost time injury (1-3 days absent) - - 25 -

Lost time injury (3 days absent) - 41 38 -

Fatal (RIDDOR) 0 0 0 -

Ill health incidents - 0 0 -

Total incidents - 318 295 -

Number of days absence (injury lost time) - 571 392 -

2 Other RIDDOR Reports

Members of the public - - 2 -

Site visitors - - 0 -

Delivery drivers - - 1 -

Dangerous occurrences - - 1 -

Total incidents - - 4 -

3 Health and Safety Executive (HSE) Enforcement

HSE inspector visits - - 18 -

Complaints made to the HSE - - 4 -

HSE Prosecutions - - 0 -

HSE Prohibition notices - - 1 -

HSE Improvement notices 2 1 0 -

Annual Injury Incident Rate (AIIR)/Sector - 1266/1172 1294/1026 Below Sector AIIR

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LEFT AND TOP RIGHT: A VISIT FROM WOODVIEW SCHOOL TO PARK CENTRAL, BIRMINGHAM

BOTTOM: TEACHING CHILDREN ABOUT DANGERS ON BUILDING SITES

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BUILDING HOMES. CREATING COMMUNITIES

STRIKING THE BALANCE BETWEEN ECONOMIC, SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES

COMMUNITY BUILDING • ENVIRONMENTAL STEWARDSHIP2005COMMUNITY AND ENVIRONMENT

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Sustainable Development policy‘The Group is seeking toachieve partnership incommunity regeneration andthe provision of housing to abroad section of society… tohelp promote local employmentby forming partnerships withvoluntary groups to help trainthe unemployed’.

Policy issues1 To meet the demand for affordable

homes and viable communities bytaking into account all stakeholderrequirements in partnership withhousing associations.

2 To deliver more secureneighbourhoods, high environmentalstandards and a good quality of life.

3 To provide social funding,employment and help throughtraining and donations.

Performance• The Group committed to the

Government’s SustainableCommunities agenda by planning fornew ranges of affordable, flexible andsecure sustainable homes.

• In 2005 the social housing target of550 homes was exceeded and theGroup is on target for achieving 30%of total sales by the end of financialyear 2006.

• The average home selling priceincreased slightly against anincrease in open market prices.

Affordable homesA consortium led by Crest Nicholsonfor the Office of the Deputy PrimeMinister’s (ODPM) Design forManufacture competition has resultedin the creation of affordable andsustainable low density housing usingModern Methods of Construction(MMC). The concept is design directedand demonstrates how strong conceptscan combine flexibility and aesthetics.

Planning safe and securecommunitiesThe creation of sustainable homes andcommunities has been achieved with avariety of house and apartment typesthat address the challenges posed byindividual sites. This approach tomaster planning ensures variety,enhances character and creates afeeling of safety and security. Formaland informal spaces and streetnetworks are co-ordinated throughstrong frontages, scale and thetreatment of hard surfaces andboundaries. This makes for high quality

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IMAGE: RENNY LODGE COMMUNAL AREAS

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open space that retains existingfeatures and ensures that theenvironmental benefits of each site areoptimised.

Meeting future needs Design for Manufacture homes satisfythe aspirations of current and futurehouseholders. Every aspect has beenengineered to exceed statutoryrequirements making for innovativeand sustainable living. Adopting theprinciples of modern constructionmethods enables a cost-effectivesolution. The Group has thirty-fivehouse and apartment design optionsthat provide adequate flexibility to themaster planning of any housingdevelopment.

Social and demographicflexibility The flexibility of the Design forManufacture houses allows internalspace to be adapted by the end user. Inthis way it can reflect social trends anda diversity of lifestyle choices. Serviceareas are planned into one zone,providing a clear living space that canbe manipulated to suit individual needsand desires. Further flexibility of use isachieved in the design of theapartment blocks. At ground level,retail units can ‘slide’ into the buildingshell from beneath the complex,creating a mixed-use sustainabledevelopment.

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BOTTOM: INTERIORS ARE DESIGNED FOR FLEXIBLE LIVING AND NATURAL LIGHTING

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5

10

15

20

25

30

2006 Target200520042003

Soc

ial h

ousi

ng

as a

%

Year

Social housing as a % of total homes sold

Social turnover as a % of total house turnover

* No target

*

COMMUNITY BUILDING: SOCIAL HOUSING AS A %OF TOTAL HOMES SOLD AND HOUSE TURNOVER

0

50

100

150

200

250

2006 Target200520042003

Hou

se p

rice

ave

rage

(£00

0)

Year

COMMUNITY BUILDING: HOUSE PRICE AVERAGE

0

500

1000

1500

2000

2500

3000

2006 Target200520042003

Tota

l nu

mbe

r of

hom

es s

old

Year

Total number of homes sold Total number of social homes sold

COMMUNITY BUILDING: TOTAL NUMBER OFHOMES SOLD

Continual improvement• To establish an affordable and

sustainable home range.

• To increase the number of affordablehomes.

• To establish ‘Homes for Life’following ‘Lifetime Homes’ and‘Secured by Design’ principles.

• To commit again to increasingregistration of build sites to theConsiderate Constructors Scheme.

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N

M1 M5 M01 M02 M050

IMAGE: TYPICAL MASTERPLAN SHOWING COMMUNITY AND PLAY SPACE AREAS

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Sustainable Development policy ‘The Board is committed to…constructing well builtsustainable homes… usingdesigns and materials thatrespect our heritage and livingenvironment.’

Policy issues1 Comply with all relevant

environmental legislation to preventpollution and waste of resources.

2 Develop on ‘brown field’ land toprotect the ‘green belt’ and add valueto development land.

3 Increase home energy efficiency,insulation and air tightness to reduceemissions.

4 Apply modern methods ofconstruction and meet localrenewable energy commitments.

5 Raise environmental standardsbeyond the forthcoming Code forSustainable Homes.

Climate Change StrategyCrest Nicholson’s ‘greenhouse’ gasemission strategy is to increase energyefficiency and reduce emissions thatcause global warming from its offices,car fleet, build sites and new homes.

Performance• Built on ‘brownfield’ land that

exceeded the UK Governments 60%target and continued to claimCorporation tax rebates on the costsof reclaiming ‘brownfield’ land.

• Contributed to a checklist for‘Guidance on DesigningDevelopments for Changing Climate.

• Home energy efficiency ratings wereslightly lower due to increased gridsupply to apartments.

• Increased the number of EcoHomescertified to 26% (2004: 8.2%).

• Increased the number of homescertified as ‘Good’ EcoHomes to521units (2004: 170 units)

• Reviewed Crest Nicholson’s standarddesigns and options for modernmethods of construction.

• Established the first development sitesfor a new range of sustainable homesusing high performance insulationsystems suitable for the application ofrenewable energy technologies.

• Established Crest Nicholson’s firstzero carbon developments within theplanning system.

Environmental stewardship

Key Performance Indicators 2003 2004 2005 2006 target

EcoHome certification (% of new build) 0 8.2%* 26%** 30%

Percentage of units in ‘Pass’ range - 7.7% 19.2% 5%

Percentage of units in ‘Good’ range - 81.7% 80.8% 80%

Percentage of units in ‘Very Good’ range - 10.6% 0 10%

Percentage of units in ‘Excellent’ range - 0 0 5%

* 208 homes certified in 2004 ** 645 homes certified in 2005

EcoHomes certification

0

20

40

60

80

100

2006 Target200520042003

Hom

es b

uil

t on

‘bro

wn

fiel

d’ la

nd

Government target of 60% or above

Year

UK average for new homes build on brownfield land 2005

ENVIRONMENTAL STEWARDSHIP: HOMES BUILTON ‘BROWNFIELD’ LAND

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Continual improvement• To train land buyers, planners and

designers on climate changechecklists and utilise solar gain,natural protection, drainage andvegetation cover in planning.

• To design layouts that avoid floodingand overheating.

• To engage with Government andprofessional bodies to influenceregulation.

• To plan ahead of rising buildingstandards and planning controls.

• To plan more communities usingmodern methods of construction.

• To promote and use appropriatemicro-renewable energytechnologies to meet commitments.

0

200

400

600

800

1000

2006 Target 2005 2004 2003

Cor

pora

tion

tax

rel

ief

on r

emed

iati

on (0

00)

Year * No targets

*

ENVIRONMENTAL STEWARDSHIP: CORPORATIONTAX RELIEF ON REMEDIATION

0

500

1000

1500

2000

2500

3000

2006 Target 2005 2004 2003

Hou

sin

g po

rtfo

lio

deve

lopm

ent

valu

e (£

m)

Year * No targets

*

ENVIRONMENTAL STEWARDSHIP: HOUSINGPORTFOLIO DEVELOPMENT VALUE

0

20

40

60

80

100

2006 Target200520042003

New

Hom

es E

ner

gy e

ffic

ien

cy

Year

Energy efficiency average-all homes SAP %

Envelope insulation above build regulation %

* no independently verified data

*

ENVIRONMENTAL STEWARDSHIP: NEW HOMESENERGY EFFICIENCY

0

5000

10000

15000

20000

2006 Target200520042003

Lan

d ba

nk

un

its

Year

Land bank (units with short term consent)

Land bank (number of long term units)

* no targets

*

ENVIRONMENTAL STEWARDSHIP: LAND BANK

0

10

20

30

40

50

60

70

80

2006 Target200520042003

Em

issi

ons

Year

Average C02 emissions (kgC02/m /year)2

Nitrous Oxides emissions (mg NOx/kWh)

* no independently verified data

*

ENVIRONMENTAL STEWARDSHIP: AVERAGE C02

EMISSIONS AND NITROUS OXIDES EMISSIONS

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Reducing the environmental impact ofhomes is crucial in pursuing sustainabledevelopments in the UK. Through theconcept of sustainability, constructionefficiency and aesthetic quality, CrestNicholson’s ‘Design for Manufacture’consortium created a unique systemlinked to a future proofed environmentalstrategy. In 2005 the consortium led byCrest Nicholson for the Office of theDeputy Prime Minister’s competition hasresulted in the establishment of mainstream affordable and sustainablehousing that will progress throughplanning in 2006 and increase innumbers in future years.

Modern methods ofconstruction and wastemanagementCrest Nicholson’s first Design forManufacture homes will be built atRenny Lodge, Newport Pagnell. In 2005, we proposed 21 affordablehomes incorporating major efficienciesin off site manufacture and onsitewaste reduction. Less waste will beproduced due to more accuratemethods of factory assembly. Plot build time scales are beingreduced to 25 days.

Sustainable materials, thermalmass and insulationWithin the Design for Manufacturehouse the structurally insulated panelsystem (SIPS) consists of strengthenedoriented strand boards assembledeither side of a high performance solidinsulation core with a zero ozonedepletion potential. Selective thermalmass is achieved through a concreteground floor and cement fibreboardroof tiles that can slowly absorb heatduring the day and release it duringcooler periods to maintain a morecomfortable living temperature range.The highly insulated envelope alsominimises extreme externaltemperature variations and internal

IMAGE: MODERN METHODS OF CONSTRUCTION,RENNY LODGE - STRUCTURALLY INSULATEDPANEL SYSTEM (SIPS)

IMAGE: DESIGNING HOMES FOR A CHANGING CLIMATE - ‘PUSHED IN’ BAYS ON THE SOUTH AND WESTMAXIMISE SHADE. THE LANTERN PROVIDES MAXIMUM SOLAR CONTROL

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heat loss. A roof lantern providesmaximum architectural andenvironmental gain. This intrinsicpassive environmental designminimises energy consumption andmaximises the benefit of the naturalenvironment. The accuracy achieved inoff-site manufacture provides a highdegree of air tightness. Reducedinfiltration and fabric heat losssignificantly reduces heating andcarbon dioxide emissions. With thesehigher levels of insulation a boilernormally used for individual dwellingscan provide heating for severalapartments. Shared boilers ensure lessgas distribution pipe work reducingnetwork connection costs, andsimplifying flue systems.

LEFT: THE APPLICATION OF COMBINED HEAT AND POWER TO COMMUNITIES TOP: SUSTAINABLE DEVELOPMENT OPTIONSRIGHT: RENEWABLE ENERGY OPTIONS

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IMAGES: SUSTAINABLE URBAN DRAINAGE SYSTEMS

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IMAGE: LANDSCAPING PLANTING AND ECOLOGY STRATEGY

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IMAGE: DESIGN FOR MANUFACTURE DEMONSTRATION HOUSE, LONDON

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Solar heat control and passiveventilationSolar shading is significantly improvedby the insulation of the Design forManufacture house panels. Glazingorientation will control solar heat gainso glazing is minimised in bedroomsand maximised in living areas to reduceheat loss and allow light into areaswhere it is most needed. The design ofthe roof lantern and orientation duringthe planning stage will control the risksthat global warming can pose. The

daylight exposure through the lanternmeans that south facing windows canbe smaller, reducing solar heat gain.‘Pushed out’ bays on the north and eastfacades maximise winter sun and‘pushed in’ bays on the south and westcan maximise shade. Ventilation viaconnectivity between the occupied openplan space, the stairwell and the rooflantern ensure optimum air circulation. At night an open lantern vent works inconjunction with the mechanicalventilation dissipating the day’s heatwithout compromising security.

Renewable energy integrationEach Design for Manufacture dwellingcan accommodate various types ofrenewable energy such as biomasscombined heat and power communityheating, solar hot water heating, photovoltaic electricity, micro wind turbineelectricity and hot air recoverysystems. The dwellings are flexibleenough to integrate renewable energyservices in a first fix factory assembledparty wall, minimising costs, siteinstallation time and optimising buildquality. A boiler system can be installedwith two coils, one for grid electric orother energy sources and the other forsolar hot water panel heating, savingover half the heating costs. An electrically driven hot air recoverysystem that siphons residual hot air tothe hot water cylinder can also beinstalled. It consumes, on average,1kW of electricity, whilst providing 3kWof heat to the water system. In additionthe solar heat gain generated from theroof lantern can be fed into the system,further reducing electricityconsumption.

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IMAGE: VENTILATION VIA CONNECTIVITY BETWEEN THE OCCUPIED OPEN PLAN SPACE, THE STAIRWELLAND THE ROOF LANTERN ENSURE OPTIMUM AIR CIRCULATION

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Sustainable Development policy’Run cost effective and efficientoffices that have the leastdetrimental impact on theenvironment.’

Policy issues1 Paper recycling, car fleet emissions

and energy conservation.

2 Climate change, potential flooding,damage, discomfort and carbonemissions.

Performance• Completed a ‘greenhouse gas’

emission review of Crest Nicholson’sdevelopment sites and office energyconsumption with the Energy SavingTrust.

• Office energy consumption figuresdecreased in 2005 with the use ofappropriate gas conversion figuresand the restatement of the data in2004, reflected the closure of theLondon office and the opening of anEastern office.

• Started an assessment of the carand van fleet business mileage, fuelusage and carbon emissions inpartnership with the Energy SavingTrust.

• Developed a recycled paper buyingpolicy and assessed the amount ofpaper that is used in developed inthe Company’s offices in partnershipwith the Waste and Resources ActionProgramme (WRAP).

• Significant reductions in office waterusage due to leak repairs by thewater company.

Printed MaterialAs part of Crest Nicholson's continuingconsultation with WRAP a newenvironmental paper procurementpolicy was published. This has beenrolled out across all operating regionsincreasing the usage and specificationof recycled paper stocks throughout thebusiness, without increasing costssignificantly. Together with office wasterecycling, buying recycled paper isclosing the ‘waste paper loop’ bydiverting waste paper from landfill to

paper mills. More details of how thiswas achieved can be found in the WRAPcase study on www.crestnicholson.comunder ‘Sustainable Development’ and‘Case Studies’.

Continual improvement• To establish and maintain a Group

wide energy efficient office campaignfor good practice.

• To continue to reduce office wasteand water usage.

• To complete an environmental reviewof the car fleet in partnership withthe Energy Saving Trust.

• To cut costs and emissions bymoving business away from carbonbased transportation.

• To consider car and van fleets thatinclude hybrid options andalternative fuels.

Key Performance Indicators 2003 2004 2005 2006 target

Office carbon dioxide tonnes CO2e* 616 902 883 -

Site carbon dioxide tonnes CO2e** - - 3,216 -

Car fleet carbon dioxide tonnes CO2e*** - - 1,477 -

Total carbon dioxide tonnes CO2e - - 5,576 -

- No data or target *From meter readings and conversion calculations. **Estimated from cost data***Calculated from estimates of business mileage and car fleet data (KPMG report)

Group ‘greenhouse‘ gas emissions

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ENVIRONMENTAL STEWARDSHIP: TOTAL OFFICEENERGY USE PERFORMANCE

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IMAGE: CREST NICHOLSON’S WASTE AND RESOURCES ACTION FOR OFFICES

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BUILDING HOMES. CREATING COMMUNITIES

STRIKING THE BALANCE BETWEEN ECONOMIC, SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES

CONTRACTORS • SUPPLIERS • SALES, MARKETING AND CUSTOMER SERVICES2005MARKETPLACE

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Spill Response

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What to do if you find a spillage of any substance on site

Stop - Contain - Notify

Stop work immediately and prevent any more material spilling,e.g. right an oil drum, close valves.

Eliminate any sources of ignition, e.g. switch off plant.

Contain the spillage using bunds of earth or sand, drip tray etc immediately.

Notify your foreman/supervisor immediately giving the following information:

• whether material has entered the drain/watercourse or is affecting the environment

• material involved• location• reason for the incident• quantity involved

Spillage TypeMajor Cannot be controlled; pollution has entered, or could enter a drain

or watercourse. Report to foreman/ supervisor immediately.

Minor Can be controlled; pollution has not entered, and cannot enter adrain or watercourse.

Foreman/Supervisors InstructionsMajor Contain and report immediately to the contacts opposite.

Major Clean up immediately using appropriate materials (granules, pads etc)

Site Managers to record all incidents on the Emergency Response Formobtained from the Crest Nicholson Intranet, 'Grapevine' and send copies to the Regional and Group Environment Manager.

Check the spill has not reached any nearby drains/manholes,watercourses, ponds and other sensitive areas. Bund drains/manholes to stop the substance entering the drainage system.

Useful GuidanceThings to consider for spillage response procedure:

• Follow the response procedure poster. If the main contractor already has a spillresponse procedure in operation, integrate into that.

• Inform all personnel about the spill response procedure through toolbox talksand/or induction training. Consider the need for refresher training on long-termconstruction projects.

• Use reminder posters located in appropriate areas such as fuel storage areas,mess cabins, security points or on the back of toilet doors.

• In the event of a significant spill contact the hotline for the Environmental Agency.Scottish Environmental Protection Agency and Northern Ireland Environment andHeritage Service 0800 807060

• Know names and telephone numbers of others you need to inform (includesalerting people out of hours) and who should contact them:• client• regulators• water company• local council• neighbours• other stakeholders

• Consider professional 24 hour call-out clean-up service. Names and numbers ofcompanies are available from the local environmental regulator.

• Ensure you have sufficient types and quantities of spill response equipmentavailable on site. Keep spill kits where spills may occur, eg at refuelling points oron plant working near a watercourse.

• The material safety data sheets and COSHH assessments will assist in identifyingappropriate spill measures for dealing with hazardous materials.

• Dispose of used spill response material appropriately, eg oily granules or padsshould be bagged up and placed in the designated special waste skip.

Pollutants

Spill on ground Concrete/cement

Paints Oils Silt Detergents

Sand 3 3 3 7 3

Straw bales 7 7 3 3 7

Absorbent granules 7 7 3 7 7

Geotextile fence 3 7 7 3 7

Drip trays 7 3 3 7 7

Pads/rolls 7 7 3 7 7

Drain seal 3 3 3 3 3

Earth bunds 3 3 3 3 3

Spill in water

Straw bales 7 7 3 3 7

Pads/rolls 7 7 3 7 7

Booms 7 7 3 7 7

Stop further spill 3 3 3 3 3

contain and inform env regulator immediately

ContactsSite Manager

Regional Manager

Group Environment Manager 07879 667752

Environment Agency Incident hotline 0800 807 060

‘To develop long term, non-adversarial partnerships withcontractors and supplierspromoting higher social andenvironmental standards.’

Policy issues1 Standards of site contractors waste

management practice.

2 Use of secondary aggregates fromrecycled demolition material.

3 Contractor sustainable developmentselection criteria.

4 Climate change and contractor‘greenhouse gas’ emissions.

Performance• Distributed guidance on the ‘Landfill’

and ‘Hazardous Waste’ directives fordevelopment projects.

• Skip waste reduced, for the thirdconsecutive year, in response todirectives resulting in segregation for recycling.

• Reviewed waste skip contractors forincreased segregation, recycling andreduced waste costs.

• Contracted an energy supplier thatproduces more renewable energyand provides a carbon offset tariffoption to development sites and newhomes.

• Developed and distributed a ‘GreenCard’ for contractors to raiseawareness of good environmental andsocial practices on construction sites.

Construction wastemanagementThe land filling of construction wastehas degraded the environment andcontributed to ‘greenhouse gas’emissions. To avoid theseenvironmental impacts in the futureCrest Nicholson continues encouragingmore waste segregation, reuse andrecycling on build sites.

Renewable energy supply andcarbon offsettingCrest Nicholson has struck a balancebetween obtaining the best price forsupplying power and obtainingelectricity from the energy suppliercurrently producing approximately 40%of the UK’s renewable capacity. The green electricity tariff is thecustomers’ first choice. The supplierinvests in renewable technology andplants trees to offset carbon emissionsfrom the new homes. Independentconsultants audit this procedure.

Continual improvement• To establish climate change

procedures for selecting key buildsite contractors.

• To form partnerships withcontractors who have considerablerenewable energy technology.

• To record carbon offset measuresimplemented by the energy supplier.

• To establish a partnership with awaste skip segregation and recyclingcontractor.

• To improve emergency preparednessand response procedures andcommunications on sites.

Contractors

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SKIP WASTE COSTS: BUILD WASTE WEIGHT OR VOLUME

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IMAGE: SITE WASTE MANAGEMENT POLICY, PLAN AND PROCEDURES

Site Waste Management Policy

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This policy commits to:1 Comply with relevant environmental legislation2 Prevent pollution and the waste of resources

All Crest Nicholson personnel and contractors are required to follow thewaste management principles of:

Reduce• Use less• Don’t damage materials• Do the job "right first time"• Take only what you need from storage

Reuse• Use it more than once, if safe to do so

Recycle• Metals, aggregates, plastics, glass and timber.

ResponsibilitiesBuild site managers, contractors and sub-contractors are responsible forall waste produced during site operations normally stored in skips, othercontainers, or stockpiled on site.

Aims• Comply with waste management legislation• Improve waste reduction, segregation, reuse and recycling• Practice good economic, social and environmental controls over waste

Know the true costs of waste• Materials wasted• Waste storage, transport and disposal• Time spent managing and handling waste• The loss of income from not salvaging waste materials

Site waste management

Follow the 10 point plan1 Do not store large quantities of materials on-site for long periods2 Keep all materials in their protective packaging as long as possible 3 Understand the requirements of the job (standards and finish quality) 4 Plan to reduce or reuse off-cuts e.g, wood, bricks etc5 Bring only the required quantity of materials to the work place6 Keep your work area clean and tidy 7 Report and make good material waste e.g, spilled pallet of bricks8 Segregate all waste types into the appropriately labelled skips9 Suggest ways to reuse materials on site10 Do not burn waste on site, it is illegal and the penalties are severe

Hazardous WasteContractors and subcontractors have full responsibility, under their ‘Duty of Care’, for the hazardous waste they generate, collect, transport, store, recover or dispose.

Hazardous wastes are potentially:

Dangerous | Toxic | Explosive | Irritant Wastes

The regulation• Producers register their premises by notification with the Environment Agency.• Hazardous waste is separated from ‘non-hazardous waste’ where practical.• The mixing of hazardous wastes is prohibited unless the waste has the same classification

Actions1 Identify, minimise and quantify hazardous waste 2 Use only authorised waste contractors and check that they are in compliance (registration)3 Keep records of signed Consignment Notes and use EWC codes on these notes 4 Review waste procedure with your Environmental Regulator (08708 502858) 5 An additional skip/drum for hazardous waste is required.6 Mastic tubes, resin and paint tins require a separate drum.

Reference: The European Waste Catalogue (EWC 2002) list.

Examples of development site hazardous wastes are:

*Tins/tubes/cans displaying the hazardous warning symbols with 0.1% (or less in highly toxic materials)residue, will be considered hazardous. Empty aerosols with the hazardous warning are still consideredhazardous waste. The Environment Agency may accept some tins as non-hazardous if the paint residue hashardened and is solvent free.** Aerosol cans to be disposed of in separate container.

Site ClearanceLead-acid batteriesChemical wastePesticidesEnd of life vehiclesFridge/Freezers

DemolitionAsbestosFluorescent light tubesTelevisionsGas bottles

Ground WorksSome contaminated landOily sludge

BuildSolvent based paints and paint tins*Mastic tubes*Resin tins*SolventsAerosol cans**Engine oils and filters

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‘To develop long term, non-adversarial partnerships withcontractors and supplierspromoting higher social andenvironmental standards’

Policy issues1 Materials and products that can

withstand climate change.

2 Acquiring evidence of chain ofcustody from timber suppliers.

3 Avoiding materials that emit‘greenhouse gasses’ duringmanufacture, use or disposal.

4 Procuring water saving andrenewable energy technologies.

Performance• Implemented sustainability

principles through supply chainworkshops at flagship developmentsin Park Central, Birmingham andHarbourside, Bristol.

• Developed an EcoHomes productand materials selection list for CrestNicholson planners, designers andbuyers to increase the environmentalstandards of homes.

• Established a contract with BritishGypsum to recycle wasteplasterboard from build sites.

Building materialsCrest Nicholson has started to selectsuppliers based on sustainabletechnologies, materials, products andprocesses in response to climatechange. Modern methods ofconstruction have many advantagesover traditional build within the currentplanning process. Composite timberframe panels and solid CFC freeinsulation components have beenincluded within the build process.

Suppliers

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IMAGE: CREST NICHOLSON’S ECOHOMES PRODUCT AND MATERIALS SELECTION LIST

Crest NicholsonGuide for higher rated EcoHomes

Planning stage action Design stage action Specification/Buying stage actionCriteria Options to improve upon the CN 2005 EcoHome ‘Pass’ – ‘Good’ standard Costs Points

Pollution 1HCFC Emissions

Aim: no ozone depleting substances (HCFC’s) in building elements & insulation manufactureSpec: ‘A’ rated insulation materials in walls, windows, roof, loft access, hot water cylinder etc ‘A’ rated:Recycled cellulose insulation (potential cost saving option)Expanded polystyrene (EPS) – Crest standardGlass wool insulation 160kg/m3 density or less Mineral wool insulation 150kg/m3 density or less - CrestAvoid:

Glass wool insulation 160kg/m3 density or over orPolyurethane insulation (PU) HCFC free or corkboard insulation 120kg/m3 density Extruded polystyrene (XPS) HCFC free 40kg/m3 density or less Foamed glass insulation Mineral wool insulation 150kg/m3 density or overEvidence: provide hot water cylinder, wall drawings, door details, etc with insulation specifications

Review

£2-4 £5-7

£2-10 £1-15

2-10 £7-11 £10-12 £14-17 £15-30

1/1

1/1

Pollution 2

NOxemissions

Aim: to reduce nitrous oxide emissions use low emission, boilers

Specification: Class 5 low NOx emission burners < 70 mg NOx / kWhAlternative options: see CN renewable energy selection procedure Evidence: development specification wording; drawing information; contractor/supplier letter

Standard 3/3

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ProductsSome of the energy saving andrenewable technologies beingconsidered for planning include: micro-wind turbines, heat exchangersand biomass fired combined heat andpower. Other products in current useinclude energy saving devices for:internal lighting and external securitylight fittings, energy efficientrefrigerators, freezers, washingmachines, spin dryers and ovens.

PollutionTo minimise pollution from buildinginsulation, zero ozone-depletingproducts are specified in roof space,walls, floor space and pipe voids. CrestNicholson does not procure productsthat emit ozone-depleting substancesduring manufacture. To reduce nitrousoxide emissions, class 5 low emissionboilers are specified as they emit lessthan 70mg NOx/kWh.

TimberCrest Nicholson buyers are able toacquire timber from suppliers whereover 60% of the timber comes fromsustainably managed sources.

Water appliancesMandatory trading agreements weremaintained for efficient water savingdevices. Taps, showerheads, baths andlow flush WC cisterns were reviewedfor improvement. Within CrestNicholson homes these appliances onaverage use 43.35 cubic metres perbed-space per year. This data isobtained from EcoHome assessmentreports for 2005 and is already belowthe maximum water usage allowancefor the pending Code for SustainableHomes.

Continual improvement• To raise awareness amongst buyers

of the principles of sustainableprocurement.

• To train buyers and suppliers tospecify materials and products towithstand climate change.

• To implement and maintainEcoHome buying lists.

• To establish a more effective timberbuying policy.

• To continue developing moreinnovative partnerships withsuppliers of materials and products

• To work with the waste andresources action programme (WRAP)on materials with higher recycledcontent and measure the amount ofplasterboard being recycled.

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Plasterboard Waste

• British Gypsum plasterboard, cove, gypsum-basedceiling tiles and GRG scrap

• Gypsum materials not manufactured by BritishGypsum are deemed to be contaminants

• No plaster, jointing material or paper scrap can beplaced in the Recycling bags

Plasterboard waste includes:

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Inert/Clean Waste

Inert/Clean waste includes:

• Broken bricks• Broken blocks• Broken kerbs• Broken paving• Hardcore• Broken clay pipes• Broken concrete pipes• Broken roof tiles• Aircrete blocks (only when inert waste is being removed from site)

LEFT: CREST NICHOLSON’S GYPSUM RECYCLING POSTER RIGHT: CREST NICHOLSON’S INERT POSTER

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Sustainable Development policy‘The Board is committed tohigh levels of customersatisfaction by constructingwell built sustainable homesand creating communitiesusing designs and materialsthat respect our heritage andliving environment. Sales,marketing and customerservices are to raise theawareness of customers to thebenefits of sustainable homesand communities.’

Policy issues1 The economic, environmental and

social features of our homes.

2 Ethical marketing and customercare.

3 Home value and developerreputation.

4 Home design and construction beingfit for purpose – climate changefuture proofed.

Customer PromiseCrest Nicholson’s Customer Promise isset out in its new home guide ‘BuildingRelationships’. The Promise commitsto the following: a professional service;progress inspections; homepersonalisation and a verification of

quality standards. The Promise alsocommits to demonstrations of fixtures,systems and appliances. A warrantyand emergency cover is included.

Customer Service GuideThe customer care programme includesthe following: a six-month propertyinspection, a two-year emergencyservice, an NHBC Build Markinformation pack and a protection policyfor 10 years. A house maintenancesection includes advice on gardenplanning, water saving and wasterecycling. There is also a comprehensivehand-over information pack.

Performance• Private housing sales were up 3%

to 1,865 (2004: 1,812).

• Created and distributed a newenergy efficiency poster to bedisplayed in every home to keepcustomers informed of the economicand environmental benefits of highstandards.

• Raised awareness of EcoHomes byproducing guidance on the sellingpoints.

• Conducted a survey of customeropinion about living in ‘Very Good’EcoHomes.

• Customer satisfaction ratingsremained in the ‘mostly satisfied’range.

Sales and MarketingThe commitment to sustainabilitymeans a transparent sales function.The Company strives to ensure thatmarketing strategies clearly reflect theproduct offered. This commitment ispassed to customers via salesliterature, advertising, show homes,marketing suites, online activity, homeowner guides and, most importantly, by Sales Advisors.

Customer ServicesThe Group is committed to ensuringthat the process of buying a new homeis as smooth and trouble free aspossible. To this end customers areencouraged to inspect their newhomes at key stages of the buildingprocess. Site Managers sign off acomprehensive quality checklist.Finally a representative from theCustomer Service Department inspectsthe property prior to legal completion.All regions have a Head of CustomerService, together with a dedicatedteam to resolve all customer issues.There is also a 24-hour emergencyhelp line provided by HomeServe, forout of hours emergency cover. This isavailable to all customers for two yearsafter completion.

Sales, marketing and customer services

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IMAGE: CUSTOMERS ENERGY RATING POSTER

0 2040

6080

100120

SAP Energy rating is:

This home’s

*The average SAP rating for all of the UK housing stock is 42. A SAP rating of 80 or more is considered to be an

energy efficient home. Most new homes achieve ratings of 80 or above. The top scores are between 100 and 120.

Keeping you informed

The Standard Assessment Procedure (SAP) is the Government’s

approved procedure for calculating the energy rating of a new home.

The SAP energy rating indicated above gives you a comparable measure

ticular homes energy efficiency, using a scale of 1 to 120 -

ber the more energy efficient the home. A SAP

n is valuable documentary proof of your

d

Commitment

Crest Nicholson Plc has a Sustainable Development policy that commits

to “constructing well built sustainable homes” and to “raising the

awareness of our customers to the benefits of sustainable homes”.

We monitor our SAP rating performance and publicly report this data

in our Corporate Responsibility Report.

Additional information

Upon reservation you will find more information in the SAP Notice

contained in your Homeowners Guide

y Advice Centre

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Customer consultationOn a quarterly basis, independentconsultants carry out a customersatisfaction survey. This survey is splitinto two parts. The first part comprisesa ‘before sales’ service andconstruction quality survey thatassesses helpfulness of sales advisorsand progress on keeping customersinformed. The quality of design,construction, soundproofing andinternal spaces is also assessed.Externally, neighbourhood community,local environment and parking areassessed. In these areas overallsatisfaction levels of 76.6% wereachieved. The second part of the surveyis an ‘after sales’ customer service andmaintenance assessment. This allowstotal customer satisfaction to bereviewed more accurately bymeasuring progress in achieving policyobjectives on customer servicecommunication, staff commitment andtime to complete after sales work. Inthese areas overall satisfaction levelsof 75.2% were achieved.

Customer EcoHome surveyFor Crest Nicholson to understandtheir customer’s attitudes towards theenvironmental attributes of homes ingeneral, and opinions of their own newhomes, a consultation was undertakenin Milton Keynes on a site consisting of22 ‘Very Good’ rated EcoHomes.Fourteen replies were receivedrepresenting a response rate of 63.6%.The results will form the basis of atrend monitoring analysis.

The first part of the questionnaire ongeneral attitudes provided the followingfindings:

1 Most customers prioritised homeenergy efficiency, utility bill costs andwater conservation as the mostimportant environmental features,followed by a healthy indoorenvironment.

2 Customers considered constructionsite impacts on the environmentmore important than the issues ofrenewable energy, sustainablebuilding materials and communitycreation.

The findings of the second part of thequestionnaire on opinions of their newhomes were as follows:

1 Customers thought that their ‘verygood’ EcoHome rating would helpsell their existing home in the futureand that they would considerEcoHome criteria in the selectionprocess their next home.

2 All customers claimed not to usepublic transport even though goodservices were available. This may bedue to the closeness of localamenities, the favoured use of thecar for longer journeys and 53.9%choosing to walk or ride a bikelocally.

3 Other favoured features wereadequate day lighting, a sense ofwell being, ease of recycling andperceived improved quality of life.

4 Many customers perceived that theirutility bills were increasing despitethe actual reduced energy use due toenergy efficient insulation andinstallations within their homes. Thiswas due to the continued increasesin utility bills against a reduction inenergy consumption.

Advertising StandardsOnly one incident was referred to TheAdvertising Standards Authority (ASA)in the last reporting period. As a result,reinforced procedures have been put inplace to ensure that this is notrepeated.

Continual improvement• To train staff on climate change

issues and related changes in homedesign and build.

• To raise awareness of modernmethods of construction and flexibleliving spaces.

• To inform customers of futureenergy, water and waste efficienciesincluding renewable energy.

• To conduct an independent survey ofcustomer comfort levels in ‘Good’EcoHomes.

• To establish a customer’ssustainable lifestyles guide andimprove customer satisfaction.

• To develop and market our expertiseand reputation in homes for thefuture.

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TOP: CUSTOMER SERVICES COMMIT TO A SIX MONTH PROPERTY INSPECTION AND SITE MANAGERS SIGN OFF A COMPREHENSIVE QUALITY CHECKLISTBOTTOM: CUSTOMERS ARE ENCOURAGED TO INSPECT THEIR NEW HOMES

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IMAGE: CREST NICHOLSON’S CUSTOMER PROMISE COMMITS TO HOME PERSONALISATION

Environmental criteria considered Customer ranking of importance

Energy efficient heating systems 1st

Lower utility bills (gas, electricity, water) 2nd

Water efficiency (low flow saving devices, rainwater storage) 3rd

Healthy indoor environment (natural lighting, air quality, sound proofing) 4th

Good practice during construction (wildlife protection, waste management) 5th

Renewable energy installations (solar water heating, photo-voltaic electricity) 6th

Use of environmentally friendly building materials (certified timber sources) 7th

Buildings that create a sense of community (public space, schools, clinics) 8th

Crest Nicholson Customer EcoHome survey, Milton Keynes (2005)Summary of customers attitude’s to homes and the environment in general

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EcoHomes criteria questions Yes or no % More or less* %

Will you consider these criteria in future buying? Yes 100% More 53.9%

Do you use public transport? No 100% Less 38.5%

Do all rooms have adequate daylight? Yes 92.3% More 46.2%

Do you think your EcoHome will sell well? Yes 84.6% More 46.2%

Do you have a sense of well being? Yes 84.6% More 69.2%

Do you use your car often? Yes 84.6% Less 15.4%

Is your location convenient for local amenities? Yes 76.9% More 61.5%

Do you feel your quality of life has improved? Yes 69.2% More 69.2%

Do you feel that your house is energy efficient? Yes 69.2% More 69.2%

Do you travel locally? Yes 69.2% More 38.5%

Do you feel at less risk from flooding? No 69.2% More 30.8%

Do you work from home ? Yes 61.5% More 23.2%

Do you walk or ride a bike? Yes 53.9% More 38.5%

Do you find recycling household waste difficult? No 53.9% Neither 53.9%

Have your gas and electricity bills changed? Yes 46.2% More 69.2%

Has your maintenance schedule/costs changed? No 46.2% Same 53.9%

Have your water bills changed? Yes 46.2% More 46.2%

* More or less compared to a previous home

Summary of Crest Nicholson’s Customer opinions of their ‘Very Good’ EcoHomes

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Summary of EcoHome sales features at Milton Keynes development

Rating of “Very Good” - progressive performance

Energy - customer gas and electricity bill savings

• Heating insulation and system efficiency is more than 15% above building regulations

• ‘A’ rated white goods are provided under the EU Energy Efficiency Labelling scheme

• External lighting is designed for energy saving fluorescent lamps with sensors and timers

• Drying space provided in secure, private gardens reduces electric energy usage

Transport - customer convenience, fitness and reduced car use

• All homes are within 813m of amenities, including the nearest bus stop

• Provision of enlarged garages, sheds or wall mounted cycle storage facilities

• Good alternative public transport links to Milton Keynes including buses every 20 minutes

• Space and services to work from a home office

Pollution – developer and customer environmental responsibility and insurance benefits

• All home insulation material is made from zero ozone depleting substances

• The high-efficiency boilers installed have the lowest nitrous oxide emission specification

• Roof rain water run off is discharged to drainage systems to reduce flooding and pollution and damage

Materials – developer and customer environmental ethics

• 100% of basic building and finishing timber used are from sustainably managed sources*

• Household recycling facilities co-ordinated with three external local council recycling bins

• Main building materials (roof, walls, etc) selected for the least impact on the environment

*Pan European Forestry Commission and Forestry Stewardship Council Certified

Water – developer and customer water conservation, bill predictability and savings

• Sanitary ware and fittings reduce internal mains water use to 41.3m3/bed-space year

• A 150 litre garden rainwater butt reduces mains water usage in the garden

Health and well being - good day lighting and reduced energy bills

• All house types - at least 80% of rooms provide a view of the sky from a height of 0.85m

• All kitchens achieved the minimum daylight factor of 2%

• Living rooms, dining rooms and studies exceeded the 1.5% daylight factor

• Quality of life improved by private outdoor space/garden

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ObjectiveRPS Group plc has been commissionedby Crest Nicholson PLC to conduct anindependent verification of thisCorporate Responsibility Report 2005.The overall aim of the verificationstatement is to provide assurance to allstakeholders that the informationprovided is accurate and reliable, andto provide independent comment onthe social and environmentalachievements of Crest Nicholson. The corporate responsibility report isthe responsibility of Crest Nicholsonand the verification statement is theresponsibility of RPS.

ScopeThe terms of reference for RPS’sverification were to assess theappropriateness, credibility andsoundness of the claims andcommitments made in the report. In addition, RPS was asked to judge the extent to which social andenvironmental measures are beingembedded into the Company’s overallbusiness and operational activities. The scope of this verification was the information published in thewritten report.

MethodologyThe process used in this verificationstatement is based on guidancepublished by GRI, and other supportingbest practice. Statements and data

were verified through a series ofinterviews with key individuals atcorporate level, document review anddata sampling. Evidence of targetachievement was reviewed to ensureconsistency with reported progress.

CommentCrest Nicholson has continued to make significant progress in all areasof corporate responsibility. Thecommitments made at all levels of thebusiness, from the Chief Executive andthe Committee for Social Responsibilityto specific managers are demonstratedby the achievements made during 2005.

Of particular note is the success in theODPM ‘Design for Manufacture’competition, which is driving forwardnew thinking in design and, throughthis, Crest has embraced innovation insustainable design. The progress madein 2005 is just the beginning. Thecommitments made by Crest tocontinue along this process will seereal benefits coming forward.

The recognition of the EcoHomesstandard as a benchmark fordemonstrating Crest’s commitment tosustainable housing, and the increasein numbers of assessmentsundertaken during 2005, sets abaseline for future improvements. The survey undertaken to assesscustomer attitudes to EcoHomes helps

to raise the profile of what Crest istrying to achieve both with customersand with internal stakeholders, and toidentify the most sustainable designoptions, i.e. meeting the needs oftoday’s customers as well as futuregenerations. It is recommended that as new designs are brought forward,this approach to customer engagementis continued.

ConclusionsBased on the information reviewed,RPS is confident that this reportprovides a comprehensive andbalanced account of social andenvironmental improvements achievedduring 2005. The data presented isbased on a systematic and sufficientlyrobust collection process, and we aresatisfied that the reported performancedata accurately represent the currentsocial and environmental performanceof Crest Nicholson.

Charlotte BrewinOctober 2006Senior ConsultantRPS Group plc

Verification statement

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RPS is an international consultancy and one of theUK’s largest multi-disciplinary consultancies topublic and private sector organisations. They provide advice on natural and builtenvironments in the areas of planning,development, natural resource, property andhealth and safety.

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BUILDING HOMES. CREATING COMMUNITIES

CREST NICHOLSON PLC CREST HOUSEPYRCROFT ROADCHERTSEYSURREYKT16 9GN TEL: 01932 580555FAX: 0870 336 3990WWW.CRESTNICHOLSON.COM

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