Berkeley Group Holdings PLC (BKG) 2018年年度報告「LSE」.pdf

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1、ANNUAL REPORT2018A B O U T TH I S R E P O R T Welcome to the 2018 Annual Report of the Berkeley Group Holdings plc(“the Berkeley Group”,“Berkeley”,“the Group”),a publicly owned company,listed on the London Stock Exchange.The Strategic Report explains Berkeleys strategy,business model,risk management

2、 processes and provides an overview of current performance and outlook.The Governance section covers the role and activities of the Board in running the business and their remuneration.The detailed Financials,accompanied by a report from the Groups auditors,complete the Annual Report.Front cover:Chi

3、swick Gate collection of apartments and townhouses inspired by the timeless quality of Londons residential squares.Inside front cover:Gauging Square at London Dock,Wapping 2 2018 Key Performance Indicators 6 Chairmans Statement 8 2017 2018 Achievements 10 Chief Executives Statement 18 Berkeleys Stra

4、tegic Framework 20 Our Vision 44 Berkeley Foundation 48 Our Business Model 56 Where We Operate 59 How We Manage Risk 74 Trading and Financial Review 122 Independent Auditors Report 128 Consolidated Income Statement 128 Consolidated Statement of Comprehensive Income 129 Consolidated Statement of Fina

5、ncial Position 130 Consolidated Statement of Changes in Equity 131 Consolidated Cash Flow Statement 132 Notes to the Consolidated Financial Statements 156 Company Balance Sheet 157 Company Statement of Changes in Equity 158 Notes to the Company Financial Statements 162 Five Year Summary 163 Financia

6、l Diary Registered Office and AdvisorsSTRATEGICREPORT 1 80 Board of Directors 86 Corporate Governance Report 91 Audit Committee Report 93 Nomination Committee Report 94 Directors Remuneration Report 116 Directors ReportGOVERNANCE 2F INAN C I AL S 3For Berkeley,development and regeneration is about p

7、eople.It is about transforming places and lives and creating thriving and sustainable communities.Our operating model recognises the cyclical nature of the housing market and the high operating risk of our complex,long-term developments,by placing product quality and customer service at its core,whi

8、le keeping financial risk low at all times which enables investment at the right time in the cycle.This unique approach enables Berkeley to deliver strong risk-adjusted returns to our shareholders,whilst having a positive impact for our stakeholders and on society.A B O U T B E R K E L E YBERKELEY A

9、NNUAL REPORT 2018 STRATEGIC REPORT101 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSN ON-FI NA NC I A L KPI s73.9 (2017:70.8)The six-month rolling Net Promoter Score is an indicator of the success of the customer journey and is used across all industry sectors.Our high levels of customer satisfaction,as

10、 a result of our continued efforts to provide world-class customer service,are evidenced through the Net Promoter Score.It compares favourably to the industry average of 29(Home Builders Federation,2018).1.42 (2017:1.83)Managing health and safety on our sites is a priority,to protect the wellbeing o

11、f our staff and contractors.This measure shows the number of reportable injuries,during the year,to the number of Berkeley employees and contractors working across our sites.It compares favourably to the industry average of 3.97(Health and Safety Executive,2017).9.8%(2017:11.7%)Calculated as the per

12、centage of our direct and indirect workforce across our operating companies that was undertaking an apprenticeship or vocational training during the year.2.15 (2017:1.76)This measure relates our annual greenhouse gas emissions to the number of Berkeley employees and the number of contractors working

13、 on our sites.0.42BN (2017:0.5BN)This measures our contribution to affordable housing subsidies and wider community and infrastructure benefits in the year.NET PROMOTER SCOREACCIDENT INCIDENCE RATE PER 1,000 PEOPLEAPPRENTICES AND TRAININGGREENHOUSE GAS EMISSIONS INTENSITYAFFORDABLE HOUSING AND WIDER

14、 CONTRIBUTIONS2 01 8 K E Y P E R F O R M A N C E I ND I CATO R S934.9M 562.7p2,193M39.3%19.592017812.4M2016530.9M2015539.7M2014380.0M2018934.9MPROFIT BEFORE TAX BASIC EARNINGS PER SHARECASH DUE ON FORWARD SALESPRE-TAX RETURN ON EQUITYNET ASSET VALUE PER SHAREThis is our core measure of profitability

15、,our absolute return from the sale and delivery of new homes in the year.The efficiency of the returns generated from shareholder equity in the business is measured by calculating profit before tax as a percentage of the average of opening and closing shareholders funds.This balance sheet measure re

16、flects the value of shareholders interests in the net assets of the business on an historical cost basis.NAVPS has grown by 26%this year.6,003MGROSS MARGIN ON LAND HOLDINGSThis provides a measure of expected value in the Groups existing land holdings in the event that the Group successfully sells an

17、d delivers the developments planned for.This measure of profitability allows for total profit after tax and takes into account the weighted average number of shares in issue during the year.Earnings cover is illustrated by showing the proportion of earnings per share paid as dividends per share in t

18、he year.This measures cash due from customers during the next three financial years under unconditional contracts for sale,and provides good visibility over future cash flows.FIN A NC I A L K P I sSee page 25See page 42See page 37See page 117295.8p467.8p562.7p313.0p221.8p2017201620152014201827.5%35.

19、1%30.8%41.1%39.3%201720162015201420182,274M2,959M3,259M2,743M2,193M201820142015201620175,272M6,146M6,378M4,514M6,003M20182014201520162017201410.66201511.99201613.14201715.5619.592018BERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT2301 STRATEGIC REPORT02 GOVERN

20、ANCE03 FINANCIALS1STRAT EG IC R E POR TWimbledon Hill ParkBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT4501 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSCH A I R M A N S STAT E M E N T There has been a significant increase in housing supply across England over

21、 the past year.Completions have grown by 16%and starts by 5%during 2017.This national picture reflects positive decisions and fresh investment by Government and the private sector.However,it masks a complex picture at a local level,with London starts approximately 30%lower than two years ago.It is t

22、elling that some funders and builders are choosing to exit the market when faced with the degree of risk and regulation that now confronts development in the Capital where macro and political uncertainty,including Brexit,are leading to this caution.This is a great shame as London is a fantastic worl

23、d-class city with unique attributes that will last long beyond the current hiatus which is only exacerbating the well documented under-supply.In this environment,Berkeley has itself invested cautiously,focusing as always on the quality of the homes and communities we build.We are growing the busines

24、s in Birmingham through our newest brand,St Joseph and we have broken ground on our first modular factory in Ebbsfleet,which,once operational,will help us deliver a significant portion of construction value through off-site assembly.The number of apprentices on our sites and in our offices has reach

25、ed 850 across the business over the last two years,an increase of 30%.Significantly,Berkeley is now a carbon positive company,fulfilling a commitment we made in May 2016.This relates specifically to the operation of our business and we will now match this with a commitment to enable all our homes to

26、 operate at net zero carbon by 2030.This will help us cut costs,reduce risk and support the environment.One year ago,we shared the horror everybody felt at the Grenfell fire.Since then,Berkeley has reviewed its high-rise buildings,engaging with local fire authorities,residents,fire safety experts an

27、d MHCLG to ensure our buildings are safe while the future regulatory approach is clarified,following the Hackitt Review.Berkeley has now returned 9.34 of 16.34 to be returned to shareholders by 30 September 2021 and announced the next 1 per share which will be returned by 30 September 2018;10.34 pai

28、d or committed in total.Total Shareholder Returns in the year were 287.1 million,with 146.7 million returned through dividends and 140.4 million through the purchase of 4.0 million shares.Of the 139.2 million to be returned in the six months to 30 September 2018,32.2 million has already been returne

29、d through share buy-backs.The amount that will be returned as a dividend will be announced on 16 August 2018 and paid on 14 September 2018 to shareholders on the register on 24 August 2018,taking account of any further share buy-backs in the intervening period.In closing,I would like to thank all ou

30、r people for the quality of their work and their commitment and integrity and I am delighted that their efforts,in conjunction with our partners in the public and private sector,have been recognised through a number of industry awards.In particular,Woodberry Down,which we are developing in partnersh

31、ip with Hackney,has won numerous accolades including WhatHouse?Best Partnership Award,Planning Magazines Best Community-led Placemaking Award and the RICS Regeneration and Project of the Year Awards.Berkeley itself won the Best Large Housebuilder and Housebuilder of the Year Awards from Building Mag

32、azine and WhatHouse?respectively,and Riverlight won a RIBA London Award.These are all testament to our people and partners working together to deliver fantastic new communities and homes.I am also immensely proud of the Queens Award for Enterprise(Sustainable Development)that Berkeley has held since

33、 2014.This is the UKs highest business accolade,recognising economic,social and environmental achievements.I am delighted to welcome Rachel Downey and Peter Vernon to the Board as Non-executive Directors and warmly congratulate Justin Tibaldi and Paul Vallone on their appointment as Executive Direct

34、ors.I would also like to recognise the significant contribution Sir John Armitt has made to Berkeley as he steps down from his roles as Deputy Chairman and Senior Independent Director after six years.I am delighted that Sir John is remaining on the Board and that we have such a capable replacement a

35、s Glyn Barker.We have a strong Board and I would like to thank them all as we look to the future for which we are well placed.TONY PIDGLEY CBECHAIRMANBerkeley currently holds the Queens Award for Enterprise for Sustainable Development.This was awarded in 2014 and is valid for five years.Berkeley par

36、ticipates annually in CDPs Climate Change Programme.In 2017 we achieved an A-rating.In December 2017 Berkeley was voted second across all sectors in Management Todays Britains Most Admired Companies.It was also the 12th year running in which we were named the most admired housebuilder.Berkeley has b

37、een included on the FTSE4Good Index since 2003,reflecting strong social,environmental and governance(ESG)practices.BERKELEY IS PROUD TO HAVE EARNED A NUMBER OF PRESTIGIOUS COMPANY AWARDS AND CONTINUES TO PARTICIPATE IN IMPORTANT EXTERNAL INDICES AND BENCHMARKS190 StrandBERKELEY IS ALSO PROUD TO HAVE

38、 EARNED A NUMBER OF INDUSTRY AND DEVELOPMENT AWARDSBuilding Awards 2017Best Large Housebuilder Berkeley GroupWhatHouse?Awards 2017Housebuilder of the Year Berkeley GroupBest Regeneration Scheme Royal Arsenal RiversideBest Mixed-Use Development One Tower BridgeBest Partnership Scheme Woodberry DownRI

39、CS Awards 2017 Regeneration Category and London Project of the Year Woodberry DownRIBA London Awards 2018RIBA London Award RiverlightPlanning Awards 2018Best Use of Brownfield Land in Placemaking Southall WatersideAward for Community-led Placemaking Woodberry DownLondon Evening Standard New Homes Aw

40、ards 2018Best Family Home Fitzroy GateBest Luxury Home The Corniche Best Large Development Woodberry DownDISCLOSURE I NSIGHT ACTIONBerkeleys unique operating model is focused on developing complex sites,which others are not willing or able to take on,creating fantastic,sustainable places with homes

41、built to a high quality in which our customers want to live,and enriching the wider community by bringing homes,jobs and amenities for all.BERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT6701 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALS2 01 7 2 01 8 AC H I E V E

42、 M E N TS33,000JOBS SUPPORTEDBerkeley supported a total of 33,000 jobs in 2017 directly and through its supply chain.Berkeley has supported an average of 6.5 jobs for every new home built over the last five years.1.9MCOMMITTED BY THE BERKELEY FOUNDATIONMore than 13 million has been committed to supp

43、ort young people,their families and communities since it was launched in 2011.750MCONTRIBUTED TO THE TREASURYBerkeley contributes to the UK public finances through the taxes paid directly and by the taxes paid by its suppliers and customers.In 2017 the total tax paid was 756 million and over the las

44、t five years 2.7 billion has been contributed to the Treasury,through direct and wider taxation.BERKELEYS CONTRIBUTION TO HOUSEBUILDING,JOB CREATION AND THE WIDER ECONOMY REMAINS STRONG.3.0BNCONTRIBUTION TO ECONOMYBerkeleys contribution to UK GDP was 3.0 billion in 2017,up 14%from 2016 and the ninth

45、 consecutive year of growth.3,895HOMES BUILTBerkeley has built 3,895 homes in 2018 and a total of 19,597 homes over the last five years(including joint ventures).22%REDUCTION IN CARBON PRODUCED THROUGH OPERATIONSBy offsetting more than our remaining emissions we have become the first carbon positive

46、 housebuilder.Our 22%reduction over the last two years excludes the impact of one-off remediation activities at Southall Waterside.25DAYS AVERAGE PAYMENT PERIODThe average number of days taken to pay our supply chain.850100%APPRENTICESWorked across our sites or in our offices in the last two years.C

47、USTOMERS WILL HAVE ACCESS TO ULTRAFAST BROADBANDIn 2018,100%of our customers will have access to Ultrafast Fibre to the Premises(FTTP)broadband and we are committed to all homes having FTTP going forwards.95%CONST RUCT ION WAST E REUSED OR RECYCLED111,000 tonnes of construction waste was produced on

48、-site,of which 95%was reused or recycled.43/50AVERAGE CONSIDERATE CONSTRUCTORS SCHEME SCORECompared to an industry average of 36/50,with over 60%of our sites recognised at the CCS Awards compared to just 11%nationally.BERKELEY MEASURES ITS BUSINESS PERFORMANCE THROUGH ITS KEY PERFORMANCE INDICATORS(

49、PAGE 2),BUT WE ALSO MONITOR A HOST OF OTHER PERFORMANCE DATA ACROSS ALL AREAS OF OUR BUSINESS WHICH IMPACT A VARIETY OF STAKEHOLDERS.12SITES HAVE A DEDICATED COMMUNITY PLANIn addition,to date more than 45 sites have completed community assessment work.100%PLANNING APPLICATIONS SUBMITTED WILL DELIVER

50、 A NET BIODIVERSITY GAINThis means that there will be more nature after development than before.73%COMPLETED HOMES S U P P LIED WIT H LOW CARB ON OR RENEWA BLE ENERGY.97%CUSTOMERS WOULD RECOMMEND USCompared to an industry average of 86%.90%of our customers are satisfied,compared to an industry avera

51、ge of 76%(both Home Builders Federation,March 2018).ECON O M I C CO N T R I B UT I O NN ON-FI NA NC I A L CO N T R I B UT I O NBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT8901 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSTaplow RiversideThe current Shareholde

52、r Returns Programme was established in 2011 as a framework through which Berkeley would return 13.00 per share to shareholders over a 10 year timeframe.The total returns were increased by 3.34 per share to 16.34 per share in December 2015.Having returned 4.34 at the time,the remaining 12.00 per shar

53、e was to be paid in equal annual dividends of 2.00 per share over 6 years by September 2021.A year later in December 2016,Berkeley introduced flexibility such that the remaining 10.00 per share,at the time,could be returned through a combination of share buy-backs and dividends,as opposed to solely

54、dividends.Consequently,the shareholder return payments are now categorised as an absolute value per annum which is increased appropriately for any new shares issued,ensuring that the same quantum of cash is returned as previously anticipated.Therefore,on a per share basis,the amount of Shareholder R

55、eturn increases with share buy-backs,which are undertaken to the extent the Board believes these are in the best interests of all shareholders.Berkeley has now paid or committed 10.34 of the 16.34 Shareholder Returns Programme.During the year,Shareholder Returns totalled 287.1 million,with 146.7 mil

56、lion returned through dividends and 140.4 million through share buy-backs.This includes 32.2 million towards the 139.2 million committed to be returned by 30 September 2018.The amount to be paid on 14 September 2018 will be announced on 16 August 2018 and paid to shareholders on the register on 24 A

57、ugust 2018,taking account of any further share buy-backs in the intervening period.AS OF 19 JUNE 2018SHAREHOLDER RETURNRETURN MECHANISMPer share*ValueDividendsBuy-backsTo 30 September 20166.34854.9M854.9MTo 30 September 20172.00277.7M188.0M89.7MTo 31 March 20181.00139.2M76.3M62.9MBy 30 September 201

58、81.00139.2M*32.2M*Returns announced10.341,411.0M1,119.2M184.8MBy 30 September 20192.00278.4MBy 30 September 20202.00278.4MBy 30 September 20212.00278.4MShareholder Returns16.342,246.2M*Shareholder Return expressed on a per share basis,prior to any share buy-backs*As of 19 June 2018.The amount to be

59、paid as a dividend in September 2018 will depend upon the extent of any share buy-backs(currently 32.2 million)prior to the announcement of the dividend in August 2018.Since the amendment to the Shareholder Returns Programme in December 2016,Berkeley has returned 184.8 million via share buy-backs ac

60、quiring 5.5 million shares,at an average cost of 33.67 pence per share(range:28.08 38.45 per share),including 4.0 million shares this year.The annual returns for the years to 30 September 2019 through 2021 of 278.4 million,initially equated to 2.00 per annum,are currently equivalent to 2.08 per shar

61、e following share buy-backs undertaken.GROSS MARGIN ON LAND HOLDINGS6.0BN687.3MNET CASH2.2BNCASH DUE ON FORWARD SALESBerkeley has delivered pre-tax earnings of 934.9 million for the year,an increase of 15.1%on last year.This is from the sale of 3,536 homes(2017:3,905)at an average selling price of 7

62、15,000(2017:675,000),reflecting the mix of properties sold in the year.These results,taken together with the 812.4 million delivered last year and the visibility provided by robust forward sales of 2.2 billion,means that Berkeley is able to raise its pre-tax profit guidance for the two years ending

63、30 April 2019 by 75 million to at least 1.575 billion,and the guidance for the five years ending 30 April 2021 by a similar amount to at least 3.375 billion.As previously identified,these results are a consequence of Berkeleys operating model and the sites it enabled Berkeley to acquire in the perio

64、d from 2010 to 2013.They represent a peak for Berkeley with profitability returning to more normal levels from 2018/19,when profits are anticipated to be around 30%lower.Thereafter Berkeley will target a 20%pre-tax return on equity over the cycle,depending upon the level of cash,which currently incl

65、udes around 400 million excess due to macro uncertainty.We have acquired 12 new sites in the year,of which four are on a conditional basis,totalling some 3,600 plots.We have also secured eight new planning consents and in excess of 50 revised consents.This activity has seen our land holdings rise to

66、 46,867 plots with an estimated future gross margin of 6.0 billion,compared to 46,351 plots and 6.4 billion of future gross margin a year ago.Berkeleys strategy for capital allocation remains unchanged.This is to:first,invest in opportunities for the business where the right risk-adjusted returns ar

67、e available;second,to ensure the financial strength reflects the prevailing macro environment;and third,to make returns to shareholders through either dividends or share buy-backs.CH I E F E X EC U T I V E S STAT E M E N T SU MM A RY O F P ER F O R M A N CESTRATEGIC DELIVERYThese results reflect Ber

68、keleys operating model,which places financial strength and sustainability at its heart,and the sites this enabled Berkeley to acquire in the period from 2010 to 2013.They represent a peak for Berkeley with profitability returning to more normal levels from 2018/19,when profits are anticipated to be

69、around 30%lower.Thereafter Berkeley will target a 20%pre-tax return on equity over the cycle,depending upon the level of cash,which currently includes around 400 million excess due to macro uncertainty.BERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT101101 STR

70、ATEGIC REPORT02 GOVERNANCE03 FINANCIALSCH I E F E X EC U T I V E S STAT E M E N T While the underlying demand for new homes remains strong,the housing market in London and the South East has remained subdued over the last year,in spite of the well documented endemic under-supply.The Government inter

71、ventions that have helped transactions and starts increase nationally,have little impact in London and the South East where a number of headwinds continue to constrain the market for many.These include property taxation,mortgage regulation and macro uncertainty.However,for those less affected by the

72、se factors,this is a good time to buy with the supply of well-located new-build property built to a high standard of quality,well below the required numbers,at the same time as reduced availability on the secondhand market.For Berkeley,the year has seen new reservations higher than last year by 12%a

73、nd,in a year of high revenue delivery,this has sustained forward sales at 2.2 billion(April 2017:2.7 billion).Reservations in the year include sales from the launch of new developments at White City,Millbank and Ealing(Filmworks)in London,as well as new phases on our regeneration schemes and develop

74、ments outside the Capital in the South East.Prices remain at or above business plan levels.Sales continue to be split broadly evenly between owner occupiers and investors.The headwinds,which are described in detail below,are most keenly felt by UK customers,while overseas customers continue to see r

75、elative value in the London market.In the year Berkeley sold just 204 homes through the Governments Help to Buy scheme(2017:157).Looking at London as a whole:overall transaction volumes(including secondhand)are 19%lower than two years ago(Land Registry data);and new starts,the most important measure

76、 for assessing the health of the market,are still some 30%lower than in 2015(according to MHCLG data).The changes to SDLT since 2015 have particularly impacted both home movers and buy-to-let customers.For the former,the SDLT rates mean that the cost of moving is too high and this is harmful for soc

77、ial mobility,with the effect on chains rippling out to all price points,and the efficient occupation of homes.Buy-to-let purchasers are additionally impacted by the 3%surcharge and removal of mortgage interest deductibility.Buy-to-let has an important role to play in the London market.The early forw

78、ard sales it provides underpin and de-risk the capital intensive urban regeneration developments that represent the majority of Londons remaining development sites,and contribute significantly to the delivery of affordable homes.Importantly buy-to-let properties are also available for recycling to h

79、ome-owners on a future sale.This contrasts to build-to-rent which does not support the same level of affordable housing and does not deliver homes that are suitable for,or will ever be available to,home owners.The market needs both forms of tenure if we are to see the additionality required to meet

80、the target of 65,000 new homes in London each year.New starts are currently around 20,000 per annum.While interest rates remain low,mortgage availability is good,however,regulation restricting income multiples means that many potential home-owners,who are capable of affording todays cost of ownershi

81、p,are unable to do so.We support the Mayor of Londons latest concordat for homes to be marketed exclusively to Londoners for the first three months.We also join him in requesting that the lending banks and Bank of England support and bring forward 24 month mortgage offers to enable more home-owners

82、to purchase early in the development cycle,at the same time cash buyers and investors are able to.On the supply side,land remains slow to come forward for development and the combined demands of high levels of affordable housing,CIL and other Section 106 requirements are not reflecting the current m

83、arket conditions.In times of macro uncertainty,it is important that these market dislocations are addressed.If London is to meet its housing targets,we need more builders,but the current operating environment is not one in which small developers can survive as the barriers to entry are so high and w

84、e are even seeing a number of large developers either withdraw from,or reduce activity in,London.Build costs have increased between 4%and 5%in the year,with the currency movements noted last year now largely embedded within materials prices.The increase this year was across both labour and materials

85、.Looking forward,we remain concerned that the impact of recognised skills gap in the UK construction workforce may become more pronounced as the UK exits the European Union.While this is hard to predict,it is a fact that over half of Londons site labour comes from the EU.This needs to be addressed b

86、y a combination of continued access to EU labour,skills training and innovation in construction if the industry is to achieve its medium term production aspirations.Lorem ipsum dolor duisWoodberry Down,Finsbury ParkCUSTOMERSHOMES Our customers experience remains central to our strategy and we use th

87、e independently assessed Net Promoter Score(NPS)to drive and measure progress in this area.Our NPS of 73.9 (on a scale of-100 to+100)is sector leading and within the top quartile for retail brands across all sectors.97%of our customers would recommend us to a friend,surpassing the industry average o

88、f 86%.We are delighted that Berkeley achieved the Investor in Customers Gold Award in 2018,following an independent assessment of our customer service.The quality of the homes we deliver is fundamental to the success of our business,and we believe our core value of excellence through detail is a key

89、 differentiator.We are delighted that our homes continue to be recognised externally.We have taken action over the past year to future-proof our homes in a number of areas,such as incorporating infrastructure to support smart technology and adaptation measures for the effects of climate change.Build

90、ing on the steps we have taken to become a carbon positive business,over the next two years we will be focusing on the homes we build by setting out plans to ensure they can operate at net zero carbon by 2030.Following the Grenfell Tower tragedy we undertook a thorough review of all of our high-rise

91、 buildings,including engaging with the local fire authorities,fire safety experts,residents and the Ministry of Housing,Communities and Local Government(MHCLG).We have ensured all our buildings are safe whilst the future regulatory approach is clarified following the outcomes of the Hackitt Review a

92、nd subsequent government consultation.Berkeley aspires to be a world-class business,defined by the quality of the places we create,generating long-term value and having a positive impact on society.Through the framework of Our Vision we articulate our strategy across our five areas of strategic focu

93、s:Customers,Homes,Places,Operations and Our People and we are proud to hold a Queens Award for Enterprise for Sustainable Development,which is recognition of the Groups economic,social and environmental achievements.Berkeley has also been included on the FTSE4Good Index since 2003,reflecting strong

94、social,environmental and governance(ESG)practices.In May we launched a new set of commitments to achieve over the next two years.This follows extensive research to understand the views of our stakeholders as well as key industry issues.We have also aligned our strategy to the UNs Sustainable Develop

95、ment Goals,in recognition of the role business must play in achieving these global aims.H OU S I NG M A R K ETOU R V I SI O NBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT121301 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSCH I E F E X EC U T I V E S STAT E M E

96、 N T Demonstration to local school pupils at the Kidbrooke Construction Skills CentrePLACESBuilding strong communities can transform peoples wellbeing and their quality of life.Sometimes it happens naturally,but it often takes years,if not decades,to evolve.Since 2012 we have been working on a struc

97、tured approach to investing time,money and care in accelerating the process.On every site with more than 100 homes we undertake an assessment pre-planning to clarify what kind of community we are trying to create.More recently we have trialled the implementation of bespoke Community Plans at 12 occu

98、pied developments to drive an events programme and a digital forum and create a system of community governance.We recognise that our impact is wider than just the developments we create.In 2017,33,000 jobs were supported and 0.42 billion was provided in affordable housing subsidies and community and

99、 infrastructure benefits.During 2018/19 we will be investigating how to quantify the wider financial and non-financial impacts generated by our activity known as social value on a development scale.We are proud to be the first housebuilder to have an approach for achieving net biodiversity gain on e

100、ach site;put simply,this means there will be more nature afterwards than before.This year we have introduced a new commitment to sustainable transport,which builds upon our existing requirements for electric car charging points and cycle storage,to understand and respond to future changes in the tra

101、nsport mix and our customers needs.OPERATIONS We are pleased to have become the first carbon positive housebuilder having met our commitment set two years ago to achieve a 10%reduction in carbon emissions at our sites,offices and sales suites and introduced a programme to offset the remaining emissi

102、ons.We recognise the risks climate change presents to our business and are responding to the Task Force on Climate-related Financial Disclosures(TCFD)recommendations,whilst continuing to participate in the CDP Climate Change Programme in which Berkeley achieved an A-rating this year.A considerate ap

103、proach to construction is critical to maintaining good relationships with the communities in which we work as well as with our employees and wider workforce.Around 60%of our sites were recognised at the 2018 Considerate Constructors Scheme National Site Awards,compared to just 10%nationally.Our aver

104、age audit score of 43/50 is testament to the efforts of our site teams in maintaining high standards.Making our contribution to tackling the industrys skills crisis continues to be an area of focus;in the two-year period there have been over 850 apprentices working on our sites and in our offices,a

105、30%increase.Overall,people in apprenticeships or training now make up around 10%of the workforce.After successful completion of a number of homes using modular methods of construction,during the year we were delighted to be granted planning permission for our new manufacturing facility.This will ena

106、ble us to deliver high quality homes alongside other benefits including reduced time on-site and reduced environmental impact.OUR PEOPLEThere is nothing more important to Berkeley than the health and safety of our people.Our health and safety record has improved year-on-year for five years,with fewe

107、r than 1.5 accidents per 1,000 people per year.Following winning the coveted Sir George Earle trophy in 2017,Berkeley East Thames was delighted to win a sector award in 2018.Our emphasis on safety has been strengthened in recent years with a focus on health and wellbeing in the workplace,and this wi

108、ll be further supported by work on mental health over the next two years.Attracting and retaining talent is key and we continue to improve our approach to talent management,alongside specific initiatives such as the graduate scheme,apprenticeship programmes and specialist academies.OUTLOOKTHE BERKEL

109、EY F OUNDATIONPizza Union,Goodmans Fields,AldgateBerkeley is a business set up for the long term.We have an operating model that allows us to invest at the right time in the cycle and deliver robust risk-adjusted returns,and the expertise to transform complex sites into thriving,sustainable communit

110、ies,while having a positive impact on our stakeholders and society.We have chosen to focus our operations around one of the worlds pre-eminent cities.Londons attributes are unique and well known and will endure well into the future.They are founded on openness,respect,tolerance and diversity.It is a

111、n environment in which,when the right conditions are present,growth,innovation and prosperity for all,will flourish.At present,political and economic uncertainty,in part due to the uncertainty around Brexit,weigh on sentiment but do present opportunities for customers who can look beyond this short-

112、term volatility.Berkeley,with its unrivalled financial strength,land position and expertise,is able to look past this prevailing uncertainty with measured confidence but,like all responsible businesses,is cautious in its investment in this environment and this will determine the speed with which it

113、delivers the value from its assets in the medium term.ROB PERRINSCHIEF EXECUTIVEThe Berkeley Foundation is a registered charity which provides support across four themes:homes,jobs,skills and care.Now in its eighth year,new annual commitments exceeded 2 million last year,and included a number of men

114、tal health charities,an area of recent focus for the Foundation.Since 2014,it has supported more than 15,000 people across London and the South East to move out of homelessness,build their skills,move into work and access new opportunities.60%of employees across Berkeley do something each year to co

115、ntribute to the Foundation and we are proud of its Platinum Give as You Earn status.Berkeley is delighted that the Foundation won the Better Society Award for Best Partnership with a National Childrens Charity,in recognition of Super 1s,its partnership with The Lords Taverners.The Foundation continu

116、es its innovative programmes with its seven strategic partners as well as a number of other charities who share its vision to improve the lives of young people and their communities across London and the South East.BERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REP

117、ORT141501 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSThe Bridge Theatre,One Tower BridgeBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT161701 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSB E R K E L E Y S ST RAT EG I C F RA M E WO R KFOCUS AREAS CustomersHomesPla

118、cesOperationsOur PeopleCORE VALUESHave integrityRespect peopleThink creativelyBe passionateExcellence through detailDEVELOPMENT AND REGENERATION IS ABOUT PEOPLE.WE TRANSFORM PLACES AND LIVES AND CREATE THRIVING COMMUNITIES.We do this through five core business activities,all of which are integral to

119、 supporting our strategic commitments:CORE BUSINESS ACTIVITIESIdentifying and acquiring landDesigning and planning new homes and placesBuilding new homes and placesMarketing and customer servicePlacekeeping and stewardshipThrough undertaking these activities in a responsible way and with a long-term

120、 focus,we deliver value for all our stakeholders,including our customers,local communities,employees,partners,shareholders and wider society.OUR BUS INESS MODELRISK MANAGEMENT UNDERPINS OUR BUSINESS MODEL.We understand our risks and set an appropriate level of appetite for risk throughout our busine

121、ss.MARKET RISKBerkeley recognises that the housing market is inherently cyclical,where market sentiment and transaction levels can change quickly.Consequently,we focus on London and the South of England,markets that we know and understand,with a long-term,added value approach to development.OPERATIO

122、NAL RISKSBerkeley focuses on complex and long-term regeneration developments,particularly in London,which present a complex array of operational challenges.Accordingly,risk management is embedded throughout the business and our autonomous operational teams are required to carefully manage each devel

123、opments design and delivery,regardless of size,whilst embracing Berkeleys core values,Our Vision commitments and overall quality-led approach.FINANCIAL RISKSGiven the operational risks present in its developments,Berkeley keeps financial risk low by maintaining a strong balance sheet and land positi

124、on as well as forward selling its homes where possible.This ensures that the business is always well placed,with the financial flexibility to invest as opportunities arise at the right point in the market cycle.OUR RIS K MAN AGEM EN TTO ENSURE WE REMAIN FIRMLY FOCUSED ON ACHIEVING OUR ASPIRATION,OUR

125、 STRATEGIC PLAN IS ARTICULATED THROUGH THE FRAMEWORK OF OUR VISION.Our Vision is structured around five areas of focus and a core set of company values.It gives our employees clear direction across every discipline of the business and enables them to contribute to its ongoing success.OU R STRATEGYSe

126、e page 20See page 48See page 60Every two years we set targeted,challenging new commitments in each of the five focus areas.This enables us to continually improve,as well as to respond to global and industry issues.In May 2018 we set new commitments based on detailed research and a review of the Unit

127、ed Nations Sustainable Development Goals.The detailed commitment-setting exercise is explained on page 21.TO BE A WORLD-CLASS BUSINESS,DEFINED BY THE QUALITY OF THE PLACES WE CREATE,GENERATING LONG-TERM VALUE AND HAVING A POSITIVE IMPACT ON SOCIETY.O U R AS PI RAT I O NBERKELEY ANNUAL REPORT 2018 ST

128、RATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT181901 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSO U R V I S I O NS UPPORTING THE UNITED NATIONS S USTAINABLE DEVELOPMENT GOALSOur vision is to be a world-class business,and therefore it is important that we help to address global challenges.

129、In 2015,all 193 Member States of the United Nations adopted a plan for achieving a better future for all laying out a path to end extreme poverty,fight inequality and injustice,and protect our planet.This plan is called Agenda 2030 and at the heart of it are 17 Sustainable Development Goals(SDGs).We

130、 have aligned the Our Vision commitments to support the goals.All the goals are important and inter-connected,but we focus our efforts on eight that we have the most material ability to influence.Further information on how we address each of the prioritised goals can be found at:www.berkeleygroup.co

131、.uk/sustainability4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATION

132、GENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTION4817 ICONS:COLOU

133、R VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANIT

134、ATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICON

135、S:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAN

136、D SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS48

137、17 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONA

138、FFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICONS:COLO

139、UR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANI

140、TATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICO

141、NS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIP

142、SFOR THE GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTR

143、Y,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be p

144、roportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTH

145、INDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALSDRIVING THE BUS INESS F ORWARDWe review and develop our strategy every t

146、wo years in order to drive continual improvement and to ensure we address any emerging global,industry or business issues and opportunities.In May 2018 we launched 10 new headline commitments to achieve by April 2020,underpinned by revised supporting commitments in each focus area.The development of

147、 the new commitments was informed by in-depth initial research followed by a materiality assessment to understand the views of our employees and key external stakeholders.With the support of an objective external party,all employees were invited to provide their views;responses were received from ap

148、proximately 1,200 people,representing 45%of the business.Views from key external stakeholders were also requested via both an online survey and detailed interviews.We used the results of this work to shortlist topic themes for further consultation with each of our autonomous companies and specialist

149、 committees.Workshops were run on each of the focus areas to debate and refine the commitments before sign-off by the Main Board.BERKELEY ASPIRES TO BE A WORLD-CLASS BUSINESS,DEFINED BY THE QUALITY OF THE PLACES WE CREATE,GENERATING LONG-TERM VALUE AND HAVING A POSITIVE IMPACT ON SOCIETY.OUR VISION

150、IS THE LONG-TERM STRATEGY FOR THE BUSINESS WHICH SETS OUT THIS GOAL AND IS STRUCTURED AROUND FIVE AREAS OF FOCUS AND OUR CORE SET OF COMPANY VALUES.O UR A RE AS OF FOCU SCUSTOMERSProvide exceptional service to all of our customers and put them at the heart of our decisionsHOMESDeliver high quality h

151、omes with low environmental impact where people aspire to livePLACESCreate strong communities where residents can live an enjoyable,sustainable lifeOPERATIONSMake the right long-term decisions,run the business efficiently and work collaboratively with our supply chainOUR PEOPLEDevelop highly skilled

152、 teams that work together in a safe,healthy and supportive environment and contribute to wider societyOU R VALU E SHAVE INTEGRITYBuild trust by being open,clear and credibleRESPECT PEOPLEWork together,empower people and value their contributionBE PASSIONATETake pride in what we do and the impact we

153、makeEXCELLENCE THROUGH DETAILDeliver the best through attention to detail in everything we doTHINK CREATIVELYFind individual solutions for every site and situationEmployees at St EdwardBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT202101 STRATEGIC REPORT02 G

154、OVERNANCE03 FINANCIALSPLACESO UR P EO P L EOPERATIONSOur approach in this area has developed from a focus on the public realm,to developing an understanding of how to build communities and enable our customers to live sustainable lifestyles.Our approach in this area has evolved from established fina

155、ncial success to ensuring that,at the same time,we work with our supply chain to make a positive contribution to both society and the environment.The headline commitments are underpinned by leading commitments,either within the industry or out of sector,and by business as usual commitments.These hel

156、p us to ensure a consistently strong approach in key areas.More detail is provided on pages 24 to 43.Learn more about Our Vision at:www.berkeleygroup.co.uk/about-berkeley-group/our-visionOur approach in this area has developed from a long-standing focus on quality to also ensuring the homes are heal

157、thy and environmentally-sound as well as being fit for the future.HOME SOur approach in this area has evolved from ensuring that customer-facing teams provide exceptional service to a strong emphasis on all employees placing the customer at the heart of every decision.C U STOME RSOur approach in thi

158、s area has evolved from ensuring safe working environments to also promoting health,wellbeing and inclusion alongside talent management initiatives.20162018 HEADLINE COMMITMENTSCommunity plans Implement community plans on our developments to facilitate thriving communities.Net biodiversity gain Deve

159、lop and apply an approach to ensure that all new developments create a net biodiversity gain.20162018 HEADLINE COMMITMENTSCarbon positive Reduce our operational carbonemissions intensity by 10%andintroduce a programme to become carbon positive.Apprentices and training Ensure at least 1,500 people ac

160、ross our direct and indirect workforce undertake an apprenticeship or vocational training.20162018 HEADLINE COMMITMENTSHealthy workplaces Launch and implement a new programme to promote the wellbeing of our staff and create healthy workplaces.Talent management Invest in training and development thro

161、ugh our talent management programmes to realise the potential of our people across all areas of the business.PERFORMANCEPERFORMANCEPERFORMANCE20162018 HEADLINE COMMITMENTSNet Promoter Score Deliver world-class customer service as evidenced by a top quartile Net Promoter Score compared to UK Customer

162、 Satisfaction Index results.Customer insight Run a programme of engagement and research to further enhance our product and processes based on the needs of our customers.20162018 HEADLINE COMMITMENTSClimate change adaptation Design our homes to consider future climate change to ensure continued therm

163、al comfort.Smart homes Understand the evolution of smart technology and connectivity in homes and on developments.PERFORMANCEPERFORMANCE20182020 HEADLINE COMMITMENTSCommunity and social value Understand the social value generated by new development and embed a coherent approach to building communiti

164、es on all our sites.Sustainable transport Explore future transport trends and encourage a modal shift away from an over-reliance on petrol and diesel cars.20182020 HEADLINE COMMITMENTSOff-site manufacture Deliver the Berkeley Modular facility and ensure that 30%of construction value is delivered thr

165、ough off-site assembly by 2020.Waste and plastics Work with our supply chain to develop a zero waste strategy,focusing on key wastes including plastics.20182020 HEADLINE COMMITMENTSIndustry image Engage with young people,education providers and employers to transform perceptions of careers in the bu

166、ilt environment.Diversity and inclusion Implement a programme to create an inclusive environment where employees can reach their full potential,irrespective of their identity or background.20182020 HEADLINE COMMITMENTSNet Promoter Score Establish Berkeley amongst the top performing companies for cus

167、tomer service,as evidenced by the Net Promoter Score.Mortgage lending Make the case for a proportionate approach to lending,including two year mortgage offers,so that every purchaser has a fair chance in the new build market.20182020 HEADLINE COMMITMENTSSafe and healthy homes Launch a design framewo

168、rk to contribute to the wellbeing of our customers,including safety,air quality and thermal comfort.Net zero carbon Develop a transition plan for each new development which enables the homes to operate at net zero carbon by 2030.See page 32See page 36See page 40See page 28See page 24WE SET NEW HEADL

169、INE COMMITMENTS EVERY TWO YEARS TO HELP DRIVE THE BUSINESS TOWARDS BEING WORLD-CLASS.IN MAY 2018 WE LAUNCHED A NEW SET OF 10 STRETCHING COMMITMENTS TO ACHIEVE BY APRIL 2020.CO M M I T M E N TSBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT222301 STRATEGIC REP

170、ORT02 GOVERNANCE03 FINANCIALSPROVIDE EXCEPTIONAL SERVICE TO ALL OF OUR CUSTOMERS AND PUT THEM AT THE HEART OF OUR DECISIONS.CU STO M E R SCUSTOMER SERVICE AND THE NET PROMOTER SCOREThe service we provide is professional,efficient and helpful to make the home buying process as straightforward and enj

171、oyable as possible.We aim to exceed our customers expectations,starting from the moment a customer first enquires about a property.Each customer receives tailored information relating to their purchase and has a dedicated person to guide them through their buying journey and beyond.We have created a

172、 customer first mind-set and empower teams to think and act differently.This is supported by a range of employee training and the continuation of our Sales Academy to bring talented individuals from other industries into the business.201 6201 8 COMMITMENTSBerkeley73.915.3UK Customer Satisfaction Ind

173、ex UK average40.4Top quartile of UK Customer Satisfaction Index for Retail(Non-food)Net Promoter Score(on a scale of-100 to+100)80706050403020100This year we are delighted to have achieved the Investor in Customers Gold award across all of our operating companies.This follows an independent assessme

174、nt of customer service,from understanding and meeting customer needs to delighting customers and engendering loyalty.Customer feedback showed a high level of customer satisfaction and loyalty and employee feedback showed that staff in all roles and at all levels understand the needs of the customer

175、and are committed to delivering an excellent customer experience.We use the Net Promoter Score to benchmark the levels of service we provide against well-regarded companies across all sectors.Our six-month rolling average Net Promoter Score of 73.9 compares extremely favourably against the industry

176、average of 29 and overall UK average of 15.3.Overall,97%of our customers would recommend us to a friend.CUSTOMER INSIGHTKey to the ongoing success of our business is that we listen to,understand and respond to the needs of our customers.Over the last two years we have implemented a range of new init

177、iatives to gain customer insight.A new data tool has been used to provide further insight from existing customer surveys.We have also developed an online portal to share lessons learnt across Berkeley.Customer focus groups are run at many of our developments,including the Skyline apartments at Woodb

178、erry Down.These give customers an opportunity to provide feedback on the homes and places in which they live whilst providing us with invaluable information to help inform future improvements both on-site and beyond.We also recognise the value in obtaining feedback from potential customers who chose

179、 not to purchase a property.Surveys of around 170 potential customers completed at seven developments have enabled us to better understand purchaser expectations and priorities.Going forward,we will undertake this for all sites.Site-specific information is supported by annual brand research of 500 p

180、eople from our target market on what is important to people when selecting a new home.Sales suite at Woodberry DownCustomers at Kidbrooke VillageNet Promoter ScoreDeliver world-class customer service as evidenced by a top quartile Net Promoter Score compared to UK Customer Satisfaction Index results

181、.Customer insightRun a programme of engagement and research to further enhance our product and processes based on the needs of our customers.2016 2 01 8 CO M M I T M EN TS73.9Sixth-month rolling average Net Promoter Score (compared to a Home Builders Federation industry average of 29)97%Customers wo

182、uld recommend us to a friend(compared to a Home Builders Federation industry average of 86%)Green MortgagePartner organisation working with Barclays for the first green home mortgage in the UKLondoners FirstSignatory to the Mayor of Londons initiative to offer lower value new-build homes within Lond

183、on and the UK first2018 H I G H L I G H TSInvestor in Customers Gold 2017Achieved across all of our operating companiesThere were also commitments covering the following areas:Communicating digitally with customers via MyHome Plus Marketing homes in the UK first Communicating Our Vision to customers

184、 Communicating sustainability to customers Providing Living Guides29.0Home Builders Federation(HBF)industry averageBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT242501 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSLearn more about customers at:www.berkeleygroup.

185、co.uk/about-berkeley-group/our-vision/customersCOMMUNICATING WITH CUSTOMERSWe strive for seamless communication with customers from the moment they first contact us.Once a customer has chosen to buy a new home they are given the opportunity to use our interactive online system,MyHome Plus.It covers

186、a range of features,from selecting choices and options to receiving updates on construction progress and the Living Guide on completion.Communication with customers does not end when they purchase their home.For example at Goodmans Fields the estate management and Berkeley teams hold regular meeting

187、s with residents to discuss topics which directly affect them,such as service charges and the refuse strategy.SUSTAINABILITYWe continue to promote sustainable living at all stages of the customer journey.Site-specific features are noted in brochures and in information provided to the customer at pur

188、chase and completion.Berkeley was delighted to be one of five partner organisations supporting Barclays with its launch of the UKs first green mortgage in April 2018.If a customer is purchasing an energy efficient new-build home,they will be eligible for a Barclays Green Home Mortgage which offers d

189、iscounted rates compared to standard mortgages.UK AND LONDON FIRSTOur UK First Policy has been in place since 2014 for all developments,requiring that every individual home is made available in the UK either first or at the same time as launching overseas.This enables UK customers to have the opport

190、unity to buy our homes,whilst also appreciating the vital role that international investors play in generating the cash flow and confidence required to begin construction.In February 2018 we were pleased to support the Mayor of Londons initiative to offer lower-cost new properties exclusively to Lon

191、doners and UK-based buyers first.The sale of any new-build homes within London of up to 350,000 is being restricted to UK buyers for three months before any overseas marketing takes place.2 01 6 2 018 COMMI TME NTSSales advisor at The CornicheUSING DATA TO FURTHER UNDERSTAND CUSTOMER FEEDBACKA sophi

192、sticated text analysis programme has been used to review the past eight years of customer verbatim comments.Whilst customer verbatims have always been of critical importance to us,this is the first time that such a detailed and consolidated trend analysis has been completed which allows us to turn t

193、he comments into actionable insight.Information is now available at a consolidated Group level,as well as for our autonomous businesses and individual sites.This will provide invaluable information to aid us in the continual improvement of our product and service offering.Senior living at Highwood M

194、ill,HorshamSUPPORTING THE UNS SUSTAINABLE DEVELOPMENT GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGER

195、GOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONG

196、INSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZER

197、OHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONNET PROMOTER SCOREEstablish

198、Berkeley amongst the top performing companies for customer service,as evidenced by the Net Promoter Score.Having high levels of customer satisfaction is critical to our business and we aim to exceed our customers expectations,starting from the moment a customer first enquires about a property.For th

199、e last four years,we have used the Net Promoter Score to benchmark the levels of service we provide against well-regarded companies across all sectors and help drive improvements.We will continue to monitor our performance,share good practice,and implement new initiatives to ensure that our customer

200、s receive excellent levels of service.MORTGAGE LENDINGMake the case for a proportionate approach to lending,including two-year mortgage offers,so that every purchaser has a fair chance in the new build market.We want every homebuyer to have the same chance as an investor to purchase a property in th

201、e new-build market.Mortgage offers today typically last for six months,but this does not lend itself to buying off-plan because the offer has usually expired before the new property is completed.Through this commitment we will encourage lenders to introduce mortgage offers which give every purchaser

202、 a fair chance of buying a new-build home.Through research,debate and fresh thinking,we want to create a level playing field for every purchaser.OTHER AREAS OF FOCUSIn addition to the two headline commitments,we have specific targets to:Understand and respond to customers emotional journeys Promote

203、the use of MyHome Plus Market homes in the UK and London first Meet minimum standards for sales and marketing suite set-up Communicate Our Vision Communicate sustainable living Promote digital and sustainable communication Undertake sales and marketing suite exit interviews2 018 2 02 0 N E W CO M M

204、I T M E N TS Residents at Ryewood,SevenoaksCU STO M E R SBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT262701 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSDELIVER HIGH QUALITY HOMES WITH LOW ENVIRONMENTAL IMPACT WHERE PEOPLE ASPIRE TO LIVE.H O M E STHERMAL COMF

205、ORTThe potential for overheating in new homes has become a growing issue for the industry as an unintended consequence of improvements to regulatory standards for energy efficiency and air tightness.We want to ensure the thermal comfort of our customers both now and in the future with expected chang

206、es in climate.Over the last two years we have developed and implemented a thermal comfort risk assessment tool for use on all new sites;we are the only developer to apply such an approach consistently across all schemes.The risk assessment,which was based on industry research and feedback from our o

207、wn employees and external experts,has been undertaken for 21 sites to date.The tool takes into account factors which can affect overheating,such as location,building type and ventilation strategies.It then highlights site-specific risks and actions to reduce them.201 6201 8 COMMITMENTSSMART HOMESWe

208、are increasingly living in a connected world,with our customers expecting access to the internet and good connectivity from the first day they move in.Technology continues to develop,from enabling us to control the temperature of our homes through a smart phone,to intelligent devices learning our be

209、haviours and movements.Over the last two years we have developed new minimum infrastructure recommendations for new sites,covering broadband and cabling provision.These enable customers to benefit from the freedom of being able to plug in technologies as they become available.We continue to incorpor

210、ate relevant smart technologies into our developments.These can range from items such as smart thermostats at Kennet Island to more advanced systems linking the digital and electrical infrastructure within the homes at South Quay Plaza,enabling our customers to connect their homes via the IOT(Intern

211、et of Things).Research and field trials continue at Kidbrooke Village into other technologies such as home battery storage,which when combined with photovoltaic panels,an electric car charging point and smart controls would enable us to offer a smart home as an option to our customers.ENVIRONMENTAL

212、PERFORMANCEAll our homes incorporate measures to reduce their impact on the environment.We begin by applying the energy hierarchy in design by focusing on the building fabric and then incorporating clean and renewable technologies.Around three quarters of our completed homes incorporate low carbon o

213、r renewable energy technologies.These measures ensure our homes are efficient,as demonstrated by our average EPC rating of B for homes which completed in 2018.In March 2018 we were a signatory of the UK Green Building Councils letter to Government to move towards net zero carbon homes by 2030.Throug

214、hout the design stage we also consider daylighting,space standards and noise to maximise the performance and comfort of our homes.To help our customers lead more sustainable lifestyles we incorporate energy efficient appliances,provide internal recycling bins and install water efficient fittings.THE

215、RMAL COMFORT AT CLARENDONDuring the early planning stages of Clarendon,the thermal comfort risk assessment tool highlighted that the development was at risk of overheating as it is located within an urban area adjacent to a mainline railway and because communal heating was proposed throughout.Dynami

216、c thermal modelling was undertaken and a number of design measures have been incorporated to mitigate the effects of overheating,including:External shading from balcony overhangs and recessed balconies Natural ventilation measures Use of rain gardens and green roofsLaunchedThermal comfort risk asses

217、sment for all new homes100%Customers will have access to Ultafast broadband in 201873%Completed homes supplied with low carbon or renewable energy91%Completed homes with an EPC rating of at least BWINNERLondon Evening Standard New Homes Awards 2018Best Apartment Wimbledon Hill ParkBest Family Home F

218、itzroy GateBest Luxury Home The Corniche Best Large Development Woodberry DownThe Sunday Times British Homes Awards 2017Innovative Living Berkeley Urban House2018 H I G H L I G H TS20162 01 8 CO M M I T M EN TSThere were also commitments covering the following areas:Enabling fibre broadband and comm

219、unity Wi-Fi Undertaking research and development Meeting space standards Installing internal recycling facilitiesThermal comfortDesign our homes to consider future climate change to ensure continued thermal comfort.Smart homesUnderstand the evolution of smart technology and connectivity in homes and

220、 on developments.Computer Generated Image of ClarendonBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT282901 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSSAFE AND HEALTHY HOMESLaunch a design framework to contribute to the wellbeing of our customers,including saf

221、ety,air quality and thermal comfort.We design a range of features into our homes that benefit occupants health and wellbeing,including good levels of daylight,insulation to reduce noise and help to regulate temperature,storage space and adaptability,so the homes can meet the needs of future resident

222、s.This is vital because people spend around two thirds of their time in their home and research shows that sustainable,well-designed homes lead to better health and wellbeing of occupants.We will create a new Berkeley Safe and Healthy Homes Design Framework covering a range of issues including noise

223、,air quality,overheating,materials,daylight,storage and security.This will be applied to all new sites,with the aim to positively influence the health and wellbeing of our customers.NET ZERO CARBONProduce a transition plan for each new development which enables the homes to operate at net zero carbo

224、n by 2030.At Berkeley we have traditionally had a leading approach to energy efficiency in our homes,and were the first developer to commit to achieving Code for Sustainable Homes Level 3 in 2007.Whilst Government policy has moved away from the zero carbon homes agenda,there is recognition within th

225、e industry,and by the Mayor of London,that to meet our national carbon targets new build standards should be tightened.There remains uncertainty about the right long-term technological solution for achieving zero carbon.In the interim,we will develop Low Carbon Transition Plans to identify clear rou

226、tes for how the homes could operate at net zero carbon by 2030 together with future-proofing measures which will be incorporated when they are built.OTHER AREAS OF FOCUSIn addition to the two headline commitments,we have specific targets to:Develop a strategic partnership with the Royal Society for

227、the Prevention of Accidents(RoSPA)on safer by design Undertake post occupancy evaluation Enable connected homes Specify sustainable materials Install recycling facilities Ensure water efficiency of homes Install energy efficient lighting Meet Berkeley minimum fire ratings and energy efficiency stand

228、ards for domestic appliances,which are over and above Government guidelines2018 2 02 0 N E W CO M M I T M E N TS SUPPORTING THE UNS SUSTAINABLE DEVELOPMENT GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its

229、defined colour,or black background.Do not alter the colours of the SDG icons.ICONSGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND C

230、OMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colou

231、r,or black background.Do not alter the colours of the SDG icons.ICONSAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTION

232、SCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD

233、 HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONQUALITYExcellence through detail is one

234、 of our company values and is applied at every stage of the project to create exceptional homes.Our brand is defined by the quality of the homes we build and we have high design and construction standards in place.To ensure that we meet these standards we have deployed technology to improve our qual

235、ity procedures,such as Viewpoint Field View,which enables our project teams to communicate instantly with contractors.We are delighted to have been recognised externally for our high standards of excellence.Management Today ranked us joint first for the quality of goods and services across all secto

236、rs in Britains Most Admired Companies 2017 and we are honoured to have received many development-specific awards for design and quality,including at the International Property Awards 2017 and the London Evening Standard New Homes Awards 2018.RESEARCH AND DEVELOPMENTResearch and development occurs ac

237、ross the business to enable continual improvement.We undertake research on an individual site level and at a Group level through our Production Committee.We continue to utilise and develop our innovative Urban House type which enables high densities to be achieved whilst providing low-rise back-to-b

238、ack adaptable family housing.The design was recognised at the Sunday Times British Homes Awards 2017 through the Innovative Living Award.We regularly seek to collaborate with external organisations and are pleased to have contributed to the Chartered Institution of Building Services Engineers(CIBSE)

239、Homes for the Future Group.Learn more about homes at:www.berkeleygroup.co.uk/about-berkeley-group/our-vision/homes2016 2 01 8 CO M M I T M EN TSApartment at The Corniche,Albert EmbankmentThe Urban House at Kidbrooke VillagePhotovoltaic roof panel array at Goodmans FieldsH O M E SBERKELEY ANNUAL REPO

240、RT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT303101 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSCREATE STRONG COMMUNITIES WHERE RESIDENTS CAN LIVE AN ENJOYABLE,SUSTAINABLE LIFE.P L AC E SCREATING COMMUNITIESOur ambition is to create safe and inclusive places that remain great pl

241、aces for decades to come,where people feel proud of their home,connected to each other and able to influence what goes on.Our approach goes beyond placemaking and placekeeping,to creating places where communities can thrive.This begins at the outset;when acquiring land,we consider the sites location

242、 and potential to support a community.At the very early stages of design,we engage the local community in the design of our developments and use our toolkit,Creating Successful Places,on new developments as a framework for ensuring the right facilities and mechanisms are in place to enable a thrivin

243、g community.DELIVERING COMMUNITIES:COMMUNITY PLANSOver the last two years we have been developing and piloting community plans on 12 of our developments,ranging from rural villages and suburban neighbourhoods to London regeneration schemes,as part of a structured approach to building communities.Eac

244、h community plan is different,reflecting local needs and aspirations.The community plan provides the structure to enable the community to mix and meet,usually through an events programme and an online forum.Through this,we are seeing community governance systems beginning to form,ranging from social

245、 clubs to residents committees.These help to embed a sense of shared ownership and self-management.Whilst we initially lead the plans,it is our residents and estate managers who will look after the place in the long term,so it is important that they help to inform,influence,develop and own the plan.

246、During construction,we build infrastructure to benefit the local community,such as play spaces,and look for opportunities to create temporary facilities,such as pop-up parks.All of our commercial space,student accommodation and relevant senior living housing is designed to achieve at least a BREEAM

247、Very Good rating.Sometimes a sense of community develops naturally,but it often takes years,if not decades,to evolve.We recognise that our customers and our managing agents play a key role in creating communities,and so we are increasingly putting structures in place to support them to do so.201 620

248、1 8 COMMITMENTSBUILDING COMMUNITY AT ROYAL WELLS PARKAs part of the community plan at Royal Wells Park,we prompted the residents to form a social committee.They organised a summer party and,as a result,developed the appetite and confidence to get directly involved in estate management and decision-m

249、aking.We then took them to meet and share ideas with a more established group on another of our sites and there is now an increasingly strong and empowered community at Royal Wells Park.Community plans Implement community plans on our developments to facilitate thriving communities.Net biodiversity

250、gain Develop and apply an approach to ensure that all new developments create a net biodiversity gain.20162 01 8 CO M M I T M EN TSThere were also commitments covering the following areas:Undertaking community assessments pre-planning Undertaking community engagement Incorporating climate change ada

251、ptation measures Consulting ecologists Implementing electric car charging Installing cycle storage facilities Incorporating rainwater harvesting Achieving BREEAM Very Good Installing living roofs Community event at Royal Wells Park,Royal Tunbridge WellsThe Sunday Times British Homes Awards 2017Outst

252、anding Placemaking Woodberry DownCIRIA BIG Biodiversity Challenge Awards 2017Medium Scale Permanent Award Fitzroy GateWhatHouse?Awards 2017Housebuilder of the Year Berkeley GroupGold awards for:Best Public Realm Heritage Walk Kew Bridge West Best Regeneration Scheme Royal Arsenal RiversideBest Mixed

253、-Use Development One Tower BridgeBest Partnership Scheme Woodberry Down12Developments implementing community plans100%New developments committed to creating a net biodiversity gain39,000Cycle storage spaces and 2,650 electric car charging points being installed on sites under construction 2018 H I G

254、 H L I G H TSBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT323301 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSLearn more about places at:www.berkeleygroup.co.uk/about-berkeley-group/our-vision/placesSUPPORTING THE UNS SUSTAINABLE DEVELOPMENT GOALS4817 ICONS:CO

255、LOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SA

256、NITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 I

257、CONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATE

258、RAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTION4817 ICONS:COLOUR VERSIONICONSWhen an ic

259、on is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICONS:COLOUR

260、VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CL

261、EAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALSSUSTAINABLE TRANSPORTExplore fu

262、ture transport trends and encourage a modal shift away from an over-reliance on petrol and diesel cars.The way we travel is changing;more people are choosing to cycle and in the future there is likely to be less travel per person,but more logistics traffic.We are likely to see fewer conventional pet

263、rol and diesel cars and more electric and autonomous vehicles.In order to design developments fit for the future,we need to understand our customers needs and expectations,as well as how the transport mix is likely to change over time.Research undertaken through this commitment will ensure that we p

264、ut the right infrastructure and services in place to meet customer expectations and promote sustainable travel.This builds on our existing commitments to provide cycle storage and electric car charging on all developments.COMMUNITY AND SOCIAL VALUE Understand the social value generated by new develo

265、pment and embed a coherent approach to building communities on all our sites.We have developed an approach to building communities on our schemes over many years.Through our new commitment we will seek to further embed this work on every site.We will also explore how we quantify and explain our wide

266、r impacts.New development generates benefits for local communities,the local economy and the environment.This is often termed social value and is focused on maximising public benefit and outcomes that support the public good.Stakeholders demand real value creation in the local area yet it can be dif

267、ficult to define,measure and deliver.2018 2 02 0 N E W CO M M I T M E N TS OTHER AREAS OF FOCUSIn addition to the two headline commitments,we have specific targets to:Achieve net biodiversity gain Develop an approach to integrated water management Explore temporary alternative uses during constructi

268、on works Achieve BREEAM Very Good Install living roofs Review the performance of managing agents and the durability of schemesENHANCING BIODIVERSITY Biodiversity plays an important role within our towns and cities as it helps to improve air quality,provides resilience to climate change,adds amenity

269、value and supports wellbeing.Despite this,biodiversity continues to decrease at an alarming rate.New development can help to reverse this trend,by providing the opportunity to enhance biodiversity.Through our commitment to net biodiversity gain,we seek to ensure that our developments make a positive

270、 impact on their local environment by creating an overall enhancement for biodiversity.Put simply,there should be more nature afterwards than before we began.Our Biodiversity Toolkit,which we developed and launched in 2017,enables project teams and their appointed ecologist to baseline the biodivers

271、ity of a site before any work occurs.Through the design process,project teams use the toolkit to identify features that will create a net gain.To provide practical advice of how to design for biodiversity net gain,we have published a guide called The Nine Concepts:Making Space for Nature and Beauty.

272、All our new developments submitted to planning during 2018 targeted a net gain through the landscape design.DESIGNING FOR CLIMATE CHANGETruly sustainable places are great places now,but also stand the test of time.Climate change could adversely affect the places we create,and our customers living wi

273、thin these,through changing weather patterns which are likely to cause wetter winters,hotter summers and more frequent heat waves.We are focused on addressing the risks most relevant to the design of our developments:flooding,water shortage and ensuring thermal comfort.We incorporate a number of fea

274、tures into the design of our developments to increase resilience to these impacts,such as sustainable drainage systems,rainwater harvesting and green infrastructure such as trees,parks,gardens and living roofs.These help our developments to manage water effectively.They also provide a cooling effect

275、,which has a wider benefit of helping to reduce the urban heat island effect in dense urban areas.2 01 6 2 018 COMMI TME NTSNatural England welcomes the development of the Berkeley Group Biodiversity Toolkit.Bringing key ecological information and data together into a single and easy to use template

276、,this should help all involved in the process to readily and easily access information needed to help design in a biodiversity net gain outcome to the project.NATURAL ENGLANDElectric car charging at Fitzroy Gate,Old IsleworthLiving roof at Goodmans FieldsSustainable urban drainage at Kidbrooke Villa

277、geP L AC E SBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT343501 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSMAKE THE RIGHT LONG-TERM DECISIONS,RUN THE BUSINESS EFFICIENTLY AND WORK COLLABORATIVELY WITH OUR SUPPLY CHAIN.CARBON POSITIVEWe are delighted to have

278、become the first carbon positive housebuilder by decreasing carbon emissions and offsetting more than our remaining emissions during 2018.Since setting this commitment we have increased our understanding of energy consumption across our day-to-day activities and issued guidance on how to address out

279、-of-hours electricity consumption together with minimum recommendations for site set up and operation.All sites now complete a Carbon Management and Action Plan to detail energy consumption and efficiency measures and many have retrofitted more energy efficient measures or are including these from s

280、ite start.The use of energy from renewable sources has also been encouraged,either through the purchase of renewable energy tariff supplies or on-site generation such as the welfare facility solar photovoltaic panels at London Dock.We are pleased that our efforts have led to a 22%reduction in operat

281、ional carbon emissions per person across our activities compared to our baseline in 2016.This figure excludes Southall Waterside due to one-off remediation activities in the year.Greenhouse gas emissions data aligned to Berkeleys reporting on greenhouse gas emissions as required under the Companies

282、Act is provided on page 117.We have worked with the Carbon Trust to help to develop our long-term carbon positive programme.201 6201 8 COMMITMENTSAPPRENTICES AND TRAININGTraining the next generation of talented workers is key to tackling the skills crisis in the built environment industry.In the las

283、t two years alone,more than 850 apprentices worked across our sites and offices,whilst over 1,200 additional people undertook other types of formal training.Following the success of our first Apprentice Awards in 2016,in autumn 2017 we once again recognised individuals and businesses who have demons

284、trated an extraordinary commitment to apprenticeships across our supply chain.Within the year,we have progressed our work with West London College to develop the West London Construction Academy at Southall Waterside,which will be used to train its first intake of apprentices from September 2018.The

285、re was also a second intake of apprentices under our REACH apprenticeship scheme;we have now directly employed more than 40 trade apprentices.We continue to be a partner member of Build UK and support industry initiatives to improve the image of construction,such as the Open Doors initiative which i

286、nvolved opening up nine of our sites to visitors in spring 2018.SUPPLY CHAIN AND RESPONSIBLE PROCUREMENTCollaborating with our supply chain is critical to ensuring a high quality and timely product.We communicate our requirements at the earliest stages of the tender process and continue to engage re

287、gularly throughout each project and at wider supplier days and conferences.We recognise that ensuring prompt payment is imperative and are pleased to confirm that suppliers are paid within an average of 25 days,less than the new 30 day period outlined as part of the Construction Supply Chain Payment

288、 Charter.On a broader level we continue to take action against modern slavery and our statement setting out more detail is available on our website.In March 2018,we held an internal campaign to coincide with the International Day of Forests to raise awareness and highlight our commitment to procurin

289、g certified timber.20162 01 8 CO M M I T M EN TSThere were also commitments covering the following areas:Procuring contractors on best overall value Procuring materials sustainably,including certified timber Reducing and reusing or recycling construction waste Reducing water and paper consumption Ac

290、hieving a minimum Considerate Constructors Scheme audit score of 38/50 Completing sustainability assessments on-sites and offices Running an Innovation FundCarbon positiveReduce our operational carbon emissions intensity by 10%and introduce a programme to become carbon positive.Apprentices and train

291、ing Ensure at least 1,500 people across our direct and indirect workforce undertake an apprenticeship or vocational training.A-Leadership score achieved in CDPs 2017 Climate Change ProgrammeOff-site Construction Awards 2018Housing Project of the Year Urban House at Kidbrooke Village2018 H I G H L I

292、G H TS22%Reduction in operational carbon emissions intensity achieved and carbon positive programme implemented60%Sites recognised at the Considerate Constructors Scheme 2018 National Site Awards(compared to a national average of 11%)850Apprentices worked on our sites or in our offices in the last t

293、wo years25Average number of days taken to pay suppliersPhotovoltaic panels on the roof of the site welfare facilities at London DockREACH ApprenticeO P E RAT I O N SBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT363701 STRATEGIC REPORT02 GOVERNANCE03 FINANCIA

294、LSOFF-SITE MANUFACTUREDeliver the Berkeley Modular facility and ensure that 30%of construction value is delivered through off-site assembly by 2020.Off-site manufacture brings a number of potential benefits including improved quality,reduced build time on-site and minimised environmental impacts.Thr

295、ough this commitment we will be delivering the Berkeley Modular facility and developing an approach considering both volumetric off-site manufacture and the use of off-site components within the homes of all new projects.WASTE AND PLASTICSWork with our supply chain to develop a zero waste strategy,f

296、ocusing on key wastes including plastics.The construction industry continues to be the UKs largest user of natural resources,and produces vast amounts of waste.The need to drastically reduce the amount of plastic waste in particular has become a topical issue.Through this commitment we seek to bette

297、r understand the waste streams produced across our activities,with a particular focus on the type,recyclability and management of plastic wastes.Working with our supply chain,we will seek opportunities to improve,and will take action to address key issue areas through design,procurement and behaviou

298、ral change.In addition,we will also aim to eliminate avoidable plastic waste across our divisional offices and sites.OTHER AREAS OF FOCUSIn addition to the two headline commitments,we have specific targets to:Reduce carbon emissions and evolve our carbon positive programme Use and provide feedback f

299、rom our Tender Scoring Matrix Broaden the Innovation Fund Reduce water use Use paper efficiently and source it sustainably Source materials responsibly,including certified timber Undertake office sustainability reviews and site sustainability assessments Sign up to the Considerate Constructors Schem

300、e Enhance procedures for build quality and quality assurance2018 2 02 0 N E W CO M M I T M E N TS 2016 2 01 8 CO M M I T M EN TSINNOVATIONInnovation occurs continually on a project-by-project basis.For example,considerable research and development has occurred over the past few years to develop the

301、Urban House type and,more recently,to deliver it using a fully-fitted modular system built off-site.We also support external projects under our Innovation Fund,including a number of health and safety initiatives.fuseAware provides an app for workers and a dashboard for employers that provides real t

302、ime data in order to improve productivity,worker safety and wellbeing.It was trialled at a number of our sites before being launched to the industry.BUILD QUALITY Each of our sites and homes has strict procedures to ensure a high quality of build.We support the work on the industrys Get It Right Ini

303、tiative(GIRI)which aims to increase productivity significantly by reducing error and its associated consequences.One of our Operations Directors has specific responsibility for overseeing the Skills and Training workstream which aims to develop innovative training courses in relation to error reduct

304、ion through the management of interfaces during the design process and on-site.RESOURCE EFFICIENCYIn 2018,111,000 tonnes of construction waste was produced on-site,of which 95%was reused or recycled.These results are testament to initiatives implemented by our project teams,such as the donation of s

305、pare materials by Berkeley Eastern Counties to Kent Wildlife Trust and Sevenoaks Scout Group.We have also begun to address plastic waste;St George at Beaufort Park has worked with contractors to eliminate the use of plastic wrapping around materials that are to be stored internally,whilst Berkeley C

306、apital has partnered with Yes Recycling to process hard hats into pellets for reuse.Throughout the year we used almost 177,000 cubic metres of water,a reduction of 9%compared to 2017 excluding one-off remediation activities at Southall Waterside.To reduce print wastage and ensure efficient print set

307、tings as standard,we have been rolling out a print release system since autumn 2017.This measure,along with awareness raising and reviews of our printing practices,has led to a reduction in printing by 18%per person compared to 2017.CONSIDERATE CONSTRUCTIONManaging our sites with consideration of ou

308、r workforce,the local community and the environment is imperative.We register each of our sites to the Considerate Constructors Scheme(CCS)and our performance against the Code of Considerate Practice is regularly assessed by independent monitors.We are pleased that Berkeleys average score of 43/50 i

309、n 2018 demonstrates performance beyond the industry average of 36/50 and that 33 sites were recognised at this years CCS National Site Awards.HIGH QUALITY MODULAR HOUSING From our purpose-built manufacturing facility in Northfleet,Kent,our multi-skilled workforce will produce a range of modular hous

310、ing products designed to the high specification and excellent build standards that customers demand from Berkeley.Construction work is now ongoing and we intend to begin manufacturing the first live scheme by 2020.The key driver for us is build quality.The facility will also enable improved construc

311、tion productivity,whilst at the same time ensuring the efficient use of resources.SUPPORTING THE UNS SUSTAINABLE DEVELOPMENT GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black backgro

312、und.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESR

313、ESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIMATEACTIONLIFE BELOW WATERPARTNERSHIPSFOR THE GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black

314、background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND WELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMU

315、NITIESRESPONSIBLECONSUMPTION AND PRODUCTION4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.Do not alter the colours of the SDG icons.ICONSNO POVERTYZEROHUNGERGOOD HEALTHAND W

316、ELL-BEINGQUALITYEDUCATIONGENDEREQUALITYCLEAN WATERAND SANITATIONAFFORDABLE AND CLEAN ENERGYDECENT WORK AND ECONOMIC GROWTHINDUSTRY,INNOVATIONAND INFRASTRUCTUREREDUCEDINEQUALITIESSUSTAINABLE CITIES AND COMMUNITIESRESPONSIBLECONSUMPTION AND PRODUCTIONLIFE ON LANDPEACE,JUSTICEAND STRONGINSTITUTIONSCLIM

317、ATEACTIONLearn more about operations at:www.berkeleygroup.co.uk/about-berkeley-group/our-vision/operationsConsiderate Constructors Scheme event at Woodberry DownSite operations at Prince of Wales Drive,BatterseaO P E RAT I O N SComputer Generated Image of the Berkeley Modular facilityBERKELEY ANNUAL

318、 REPORT 2018 STRATEGIC REPORTBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORT383901 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSDEVELOP HIGHLY SKILLED TEAMS THAT WORK TOGETHER IN A SAFE,HEALTHY AND SUPPORTIVE ENVIRONMENT AND CONTRIBUTE TO WIDER SOCIETY.O U R P EO P L ETALENT MANAGEMENTOur talented employe

319、es are our strongest resource;it is vital that we provide the right opportunities within the business to enable people to grow and flourish.As a minimum,everyone should have a training assessment and annual personal development review.All employees,but particularly those in the early years of their

320、career,are encouraged to pursue professional accreditation to bodies such as the Royal Institution of Chartered Surveyors(RICS).This is then supplemented by more detailed local programmes,ranging from informal lunch and learns to leadership courses.Our successful graduate scheme brought 26 young peo

321、ple into the business in autumn 2017 and we are recognised as one of the top 100 graduate employers by TheJobCrowd.Together with our sandwich placement scheme,we are also focusing on increasing the number of directly employed apprentices in a range of specialisms including construction management,su

322、rveying,project management and business administration.We are proud that Stephen Kirwan,Construction Director at St George,was recognised nationally for his hard work and talent by winning one of just four NHBC Pride in the Job Supreme Awards.HEALTHY WORKPLACESThrough our commitment to providing hea

323、lthy workplaces we seek to improve the quality of life of our employees,staff satisfaction and productivity.A checklist has been developed based on recognised frameworks such as the Mayor of Londons Healthy Workplace Charter and the WELL Building Standard.We have also utilised our links with Bupa to

324、 set out a framework approach to individual health.Health and wellbeing programmes are now in operation across all of our autonomous businesses,including a variety of initiatives such as health assessments,exercise classes,encouragement of healthy eating and sessions on managing stress and personal

325、finances.Many of our operating companies run health and wellbeing weeks to raise awareness further,such as Berkeley Oxford and Chilterns programme of activities to boost health and mental wellbeing in November 2017.The new Your Road to Health and Wellbeing programme launched in summer 2017 within Be

326、rkeley Eastern Counties has been well received.FEMALEMALETOTALTotal Employees1,0171,6722,689Reporting to Senior Management41183224Senior Management246Board of Directors41216At 30 April 2018INCLUSIVITYWe understand the benefits a diverse workforce can bring and recognise that the industry as a whole

327、faces under-representation of women as well as those from a broad range of backgrounds.38%of our direct employees are women,as are a quarter of our Board of Directors and one third of senior management.The median pay gap for the Group is 37.9%and,like much of our industry,this is primarily driven by

328、 the shape of our workforce,with a lower proportion of women in senior,higher paid roles.We published our gender pay gap report in March 2018;further information can be found in our Corporate Governance Statement and on our website.We are already taking steps to increase the proportion of women over

329、all and at senior levels in the business.201 6201 8 COMMITMENTS20162 01 8 CO M M I T M EN TSThere were also commitments covering the following areas:Paying the Living Wage Foundations living wage Maintaining Berkeley health and safety standards Undertaking Director health and safety visits Targeting

330、 reduced health and safety incident and injury rates Undertaking employee training assessments Supporting the Berkeley FoundationTalent managementInvest in training and development through our talent management programmes to realise the potential of our people across all areas of the business.Health

331、y workplacesLaunch and implement a new programme to promote the wellbeing of our staff and create healthy workplaces.60%Employees involved with Berkeley FoundationNHBC Pride in the Job Awards 2017Supreme Award Stephen Kirwan,Construction Director at St George1.42Accident Incident Rate (compared to t

332、he Health and Safety Executives industry average of 3.97)38%Direct employees are women2018 H I G H L I G H TSRoSPA Health and Safety Awards 2018Sector Award Berkeley East ThamesGraduates from the 2017 intakeSite Health and Safety visit at VistaBERKELEY ANNUAL REPORT 2018 STRATEGIC REPORTBERKELEY ANN

333、UAL REPORT 2018 STRATEGIC REPORT404101 STRATEGIC REPORT02 GOVERNANCE03 FINANCIALSLearn more about our people at:www.berkeleygroup.co.uk/about-berkeley-group/our-vision/our-peopleSUPPORTING THE UNS SUSTAINABLE DEVELOPMENT GOALS4817 ICONS:COLOUR VERSIONICONSWhen an icon is on a square,that square must be proportional 1 x 1.The white icon should be contained by its defined colour,or black background.