Berkeley Group Holdings PLC (BKG) 2019年年度報告「LSE」.pdf

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1、Building communities2019 Annual ReportWoodberry DownAbout BerkeleyBuilding communitiesBerkeley creates homes and neighbourhoods across London,Birmingham and the South-East of England.For Berkeley,development is all about people.We take a holistic approach to placemaking,which goes beyond the convent

2、ional role of a developer and puts the strength and well-being of the wider community at the heart of every plan.We think long-term and we invest more to create welcoming,sustainable and biodiverse places.Every development has a unique,locally inspired masterplan with a mix of beautiful public space

3、s,natural landscapes and amenities that bring people together to enjoy community life.Our developments provide homes for everyone;from families to first-time buyers,students to older people,and a mix of affordable homes which meet the needs of the local community.Berkeley has the financial strength

4、and placemaking expertise to take on the most difficult,long-term,capital intensive developments.Transforming these underused places into successful neighbourhoods creates greater economic,social,environmental and commercial value over the full development cycle.No other UK developer has the capacit

5、y or experience to regenerate brownfield land on this scale.HighlightsDelivering for all stakeholdersStrategic Reportp 01-7301 Highlights04 Berkeley at a Glance06 Long-Term Regeneration08 Chairmans Statement18 Chief Executives Statement26 Berkeley Foundation28 Business Model30 Key Performance Indica

6、tors32 Business Strategy:Our Vision54 Sustainable Development Goals55 Non-Financial Reporting Statement56 Stakeholder Engagement58 How We Manage Risk70 Trading and Financial ReviewCorporate Governancep 7411776 Board of Directors80 Governance at a Glance82 Chairmans Introduction to the Corporate Gove

7、rnance Statement83 The Boards Focus Areas84 Corporate Governance Report88 Audit Committee Report91 Nomination Committee Report92 Directors Remuneration Report114 Directors ReportFinancial Statementsp 118172120 Independent Auditors Report128 Consolidated Income Statement128 Consolidated Statement of

8、Comprehensive Income129 Consolidated Statement of Financial Position130 Consolidated Statement of Changes in Equity131 Consolidated Cash Flow Statement132 Notes to the Consolidated Fnancial Statements165 Company Balance Sheet166 Company Statement of Changes in Equity167 Notes to the Company Financia

9、l Statements171 Five Year Summary172 Financial Diary and Registered Office andAdvisersProfit before tax775.2m(2018:977.0m)Net asset value per share23.05(2018:19.38)3,698 homes delivered includes more than 10%of Londons new private and affordable homesLaunch of a second Construction Academyat Southal

10、l WatersidePre-tax return on equity27.9%(2018:41.9%)Cash due on forward sales1,831m(2018:2,193m)525mofsubsidies provided to deliver affordable housing and committed to wider community and infrastructure benefits in the year73.5Net Promoter Score Maintained industry leading Net Promoter Score(NPS)and

11、 customer serviceratingsNet cash975.0m(2018:687.3m)Future gross margin in land holdings6,247m(2018:6,003m)11,000 people working across our sites,including over 500apprenticesPioneering approach to enhancing nature and biodiversity,recognised by Government,with net biodiversity gain to be a national

12、policy requirementFinancial HighlightsOperational Highlights01Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsRead more on page 24Read more on page 16The hard and isolated landscape of the former Ferrier Estate is being transformed into a welcoming neighbourh

13、ood with biodiverse parks and wetlands,4,800 mixed tenure homes,a new village centre and a mix of lively community events led by local people.Find out more:www.berkeleygroup.co.uk/kidbrookevillage02Berkeley Group2019 Annual ReportStrategic Report01 Highlights04 Berkeley at a Glance06 Long-Term Regen

14、eration08 Chairmans Statement18 Chief Executives Statement26 Berkeley Foundation28 Business Model30 Key Performance Indicators32 Business Strategy:Our Vision54 Sustainable Development Goals55 Non-Financial Reporting Statement56 Stakeholder Engagement58 How We Manage Risk70 Trading and Financial Revi

15、ew03Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial Statements162181210819911736751413111542831GLOUCESTERSHIREWILTSHIREWARWICKSHIREWESTMIDLANDS HERTFORDSHIREBEDFORDSHIREBUCKINGHAMSHIRENORTHAMPTONSHIREWORCESTERSHIRESOMERSETBerkeley at a GlanceCreating homes,strengthenin

16、g communities and improving lives.Berkeley has a unique operating model that is responsive to the cyclical nature of the housing market and focuses on transforming the most challenging and complex sites into exceptional places where communities thrive.Unique long-term operating modelLondon under con

17、struction1 9 Millbank,Westminster 2 250 City Road,Islington3 Battersea Reach4 Beaufort Park,Hendon5 Chelsea Creek6 Clarendon7 Dickens Yard,Ealing8 Filmworks,Ealing9 Fitzroy Gate,Isleworth10 Forbury,Blackheath11 Fulham Reach12 Goodmans Fields,Aldgate13 Kensington Row and Royal Warwick Square14 Kidbro

18、oke Village15 Kings Road Park,Fulham16 London Dock,Wapping17 One Blackfriars,Southwark18 Oval VillageStrategic appreciation that the market is inherently cyclicalFocus on London,Birmingham and the South EastHolistic approach to placemaking that adds lasting value for all stakeholdersUnrelenting comm

19、itment to customer satisfactionFocus on transforming challenging sites through complex,capital intensive regenerationOperational risk offset through financial strength at all timesRecognised brands and autonomous experienced teamsMarket leading in sustainability and the quality of homes and placesOu

20、r brands100%ownedJoint venturesBerkeley is the original brand,founded in 1976 in Surrey.St Edward is a joint venture,formed in 2006 and co-owned by Berkeley and Prudential.St George was originally formed as a joint venture with the Speyhawk Group in 1985 and became wholly owned in 1991.St William is

21、 a joint venture,formed in 2014 and co-owned by Berkeley and National Grid.St James was originally formed as a joint venture with Thames Water in 1996 and became wholly owned in 2007.St Joseph was formed in 2016 to focus on the Birmingham and West Midlands markets.Our portfolio69 sites under constru

22、ction30 future sites99 total sites in the land holdingsRead more online:www.berkeleygroup.co.uk/ourbrands04Berkeley Group2019 Annual Report1045267111983314282736622141025161221729181932323352021301115152634789243313*New sites contracted for acquisition during the year16218121081991173675141311154283

23、121253218422626177242716322351201319291030113391281415GLOUCESTERSHIRELONDONWILTSHIREHAMPSHIREWEST SUSSEXSURREYEAST SUSSEXKENTESSEXWARWICKSHIREWESTMIDLANDS HERTFORDSHIREBEDFORDSHIREBUCKINGHAMSHIRENORTHAMPTONSHIREWORCESTERSHIRECAMBRIDGESHIREBERKSHIREOXFORDSHIREOut of London under construction1 17 51 L

24、ondon Road,Staines2 Barleycroft,Rudgwick3 Bersted Park4 Broadacres,Southwater5 Brompton Gardens,Ascot6 Courtyard Gardens,Oxted7 Cranbrook8 Edenbrook Village,Fleet9 Eldridge Park,Wokingham10 Elmswater,Rickmansworth11 Fairwood Place,Borehamwood12 Farnham13 Green Park Village,Reading14 Hartland Village

25、,Fleet*15 Highwood Village,Horsham16 Holborough Lakes17 Hollyfields,Hawkenbury18 Horsham*19 Huntley Wharf,Reading*20 Kennet Island,Reading21 Knights Quarter,Winchester22 Leighwood Fields,Cranleigh23 Princes Chase,Leatherhead24 Quinton Court,Sevenoaks25 Royal Clarence Marina,Gosport26 Royal Wells Par

26、k,Tunbridge Wells27 Ryewood,Sevenoaks28 Snow Hill Wharf,Birmingham29 Taplow Riverside30 The Arches,Watford31 The Waterside,Royal Worcester32 Victory Pier,Gillingham33 Woodhurst Park,WarfieldOut of London future sites1 Ascot2 Bath*3 Camberley4 Eastside Locks,Birmingham*5 Effingham6 Fleet7 Frimley Gre

27、en8 Hemel Hempstead9 Hertford10 High Wycombe*11 Paddock Wood*12 Reading*13 Sevenoaks14 Slough*15 Snow Hill Queensway,Birmingham*16 Stratford-Upon-Avon17 Sunningdale Park18 Wallingford19 Watford*19 Prince of Wales Drive,Battersea20 Queenshurst,Kingston21 Richmond Chase22 Royal Arsenal Riverside,Woolw

28、ich23 Smithfield Square,Hornsey24 Southall Waterside25 South Quay Plaza,Docklands26 Sovereign Court,Hammersmith27 The Corniche,Albert Embankment28 The Cottonworks,Finsbury Park29 The Dumont,Albert Embankment30 The Villas,Barnes31 Trent Park,Enfield32 Vista,Battersea33 West End Gate,Paddington34 Whit

29、e City Living35 Wimbledon Hill Park36 Woodberry Down,Finsbury ParkLondon future sites1 Bethnal Green2 Bow Common3 Centre House,Wood Lane4 Chambers Wharf,Southwark5 Fulham6 Grand Union,Northfields7 Hendon*8 Lea Bridge*9 Poplar10 Royal Exchange,Kingston11 Stephenson StreetOn the following pages you ca

30、n read more about our focus on long-term regeneration opportunities05Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsSouthall WatersideEaling,London UB2Read more on Southall Waterside in the Case Study on pages 14 to 15.Regeneration of 88 acre contaminated ga

31、sworks 3,750 mixed tenure homes 40 acres of parklandKidbrooke VillageGreenwich,London SE3Read more on Kidbrooke Village in the Case Studies on pages 16,41 and 45.86 acres of biodiverse parks and wetlands Regeneration of former Ferrier Estate Woodberry Down Hackney,London N4This community-led regener

32、ation partnership has revived a failing post-war housing estate and is on course to deliver 5,500 mixed tenure homes.The masterplan includes 15.6 acres of welcoming open space,with a mix of amenities and events that draw people together to enjoy community life.Community centre,parks and wetlands nat

33、ure reserve 1,798 homes delivered to date UK Project of the Year Royal Institution of Chartered Surveyors(RICS)Awards 2018Chelsea CreekHammersmith&Fulham,London SW6More than half of this 7.8 acre former National Grid site will be public open space,including waterside gardens and landscaped walkways.

34、There will be more than 800 mixed tenure homes and the development centres on the first new canals to be created in London for more than a century.95 apprentices to date 25,000 sq ft commercial spaceBeaufort ParkBarnet,London NW9After more than a decade of disuse,St George has transformed this 25 ac

35、re former RAF aerodrome into a new part of the Colindale community,with shops,bars,restaurants,parks and playgrounds.To date,more than 2,200 new mix tenure homes have been delivered and the historic Grahame-White Watchtower has been restored.Community event programme 335 permanent jobs Royal Arsenal

36、 RiversideGreenwich,London SE18Over the last 20 years this vast,isolated and heavily contaminated munitions site has become a beautiful riverside neighbourhood,teeming with life,homes,jobs and culture.Crossrail station box delivered 500 new trees 12 acres of open space 23 derelict heritage buildings

37、 restored for useLondon DockTower Hamlets,London E1This historic former dockyard is being transformed into a new neighbourhood with 1,800 homes and 7.5 acres of landscaped public space,including a new civic square and pedestrianised boulevard.The Grade II Listed Pennington Street Warehouse will be t

38、he sites commercial and cultural heart,and a major new attraction for Wapping.Shops,restaurants and offices Community event programme Community Fund supporting 42 local projectsExisting regeneration sitesLong-Term RegenerationBerkeleys focus is on large-scale regeneration opportunities where our uni

39、que expertise can unlock long-term social and economic value.We have the strong capital base to execute these highly capital intensive programmes.The success of these developments is founded on trusted partnerships with local authorities and communities.Bringing these brownfield sites in to use is a

40、ligned with the Governments commitments to increase the supply of good quality,mix tenure homes.06Berkeley Group2019 Annual ReportWhite City Living Hammersmith&Fulham,London W12St James is transforming an 11acre former warehousing site into a community of more than 1,800 mixed tenure homes in the he

41、art of the White City Opportunity Area.There will be 8 acres of open space,alongside new shops,cafes and restaurants.5 acre public park 430 new trees 4 water featuresGrand Union Brent,London HA0Read more on Grand Union in the Case Study on pages 10 to 11.11 acres of public space,including 850m of ca

42、nal and riverside walkways 2,900 mixed tenure homes 209,000 sq ft of workspace New shops,restaurants,community centre and health centreStephenson StreetNewham,London E16This former 26 acre Parcelforce depot will become a community of more than 3,800 mixed tenure homes,set around 12 acres of green op

43、en space,landscaped gardens and wildflower meadows.The masterplan includes a new school,bars and cafes,restaurants and community spaces.1 new station connection,2 pedestrian bridges and 1 road bridge Over 8,000 construction jobsSouth Quay PlazaTower Hamlets,London E14This former 1980s docklands offi

44、ce site will include one of Londons tallest residential towers,at 68 storeys.It features a mix of generous communal spaces for residents of all tenures,including 2.5 acres of landscaped gardens and integrated playspaces.1,290 mixed tenure homes 1,000 permanent jobs New community and commercial space

45、sClarendonHaringey,London N8This St William site will see a former gasworks become a new city village within the Haringey Heartlands Opportunity Area.The masterplan will create more than 1,700 homes and the 2 acre Hornsey Park with orchard style planting,playspace and water features.A new town squar

46、e 100,000 sq ft of commerical space 600 permanent new jobsOval VillageLambeth,London SE11Berkeleys regeneration of the former Oval Gasworks,and a neighbouring site,will create more than 1,300 mixed tenure homes,shops,water features,squares,car-free streets,restaurants,a community space and a new co-

47、working office hub.Restoration of Grade II Listed gasholder 2.5 acres of public space 1,400 permanent jobsHartland VillageHampshire GU51Read more about Hartland Village in the Case Study on page 21.Revival of long standing derelict manufacturing site 70 acre country park Over 1,000 new trees 1,500 m

48、ixed tenure homesKings Road ParkHammersmith&Fulham,London SW6St Williams masterplan will see this redundant 16 acre gasworks stitched back in to the local community through an open network of footpaths,cycle routes,biodiverse parkland and public squares.There will be more than 1,800 mixed tenure hom

49、es,a youth centre and the sites Grade II*Listed gasholder,the oldest in the world,will be carefully restored.460 permanent jobs 6 acre landscaped open spaceFuture regeneration sites07Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial Statements The only way to create trul

50、y successful places is to make housing a real partnership based around improving peoples lives and wellbeing.Chairmans StatementA true spirit of partnershipBelow:Local children celebrate the opening of Kite Park at Kidbrooke Village,Greenwich.This natural play space is open to the whole community an

51、d has been created in partnership with the Royal Borough of Greenwich and the London Wildlife Trust.This has been another year of solid performance for Berkeley,delivering financial results ahead of expectations while unlocking an increasingly valuable mix of social,economic and environmental benefi

52、ts for the communities in which we work.Our unique operating model,which recognises the cyclical nature of residential property development,continues to set us apart.We focus on large,complex and capital intensive regeneration opportunities in London,Birmingham and the South East of England,includin

53、g a high proportion of former utility works and major industrial sites,which few other developers have the financial strength or development expertise to take on.These long-term regeneration programmes require extensive remediation and enabling infrastructure works before they can be reconnected wit

54、h the communities around them.Successfully reviving such vast and difficult sites presents a mix of technical,design and social challenges which are beyond the traditional role and scope of a developer.08Berkeley Group2019 Annual ReportTo create a place of real and enduring value,we have to approach

55、 development with an open mind and a readiness to really listen and engage with the local community.We need to act on what they say and recognise the duty we owe them as a big and disruptive force coming into their lives.It is our responsibility to reach out,collaborate and create a shared vision th

56、at local people can believe in.Then,when it comes to delivery,we have to keep the conversations going and make sure those vital local partnerships keep growing stronger.Our programmes can last 30 years,so we have to keep listening,learning and making sure local people feel a real connection to the p

57、laces we create.When we get this right,we create welcoming neighbourhoods that are part of the local community and the local story,and they keep getting better long after the regeneration work is over.It is hard to explain how this approach happens.It is not a technical process and it is not driven

58、by rules or procedures.It comes from having the right working culture and the right values.You have to put people at the heart of every decision,day after day,and have the passion and care to get every small detail just right.A people-centred approachLong-term regeneration is highly capital intensiv

59、e and complicated work.But the biggest challenge is neither financial nor technical,it isallabout people.This is how we approach development at Berkeley.The following pages provide examples of what a people-centred approach really means in practice Our approach is holistic,long-term and highly colla

60、borative.We focus on the long-term strength and wellbeing of the local community and build strong local partnerships that maximise social value.This people-centred culture is what defines Berkeleys brand and ensures we are the clear partner of choice within our sector.Other performance highlights in

61、clude completing 3,698 homes,winning 26 Considerate Constructors Scheme National Site Awards and securing an independently assessed customer satisfaction score(Net Promoter Score)of 73.5 which is on a par with highly respected consumer brands.In a further mark of consistency,every Berkeley operating

62、 company achieved an Investors in Customers Gold Award in 2018.This was a breakthrough year for Berkeleys pioneering approach to reversing natural habitat loss and delivering a measurable net biodiversity gain on all new sites.Over 25 developments submitted for planning have targeted a net biodivers

63、ity gain through landscape design.We have delivered our first large scale net biodiversity gain landscape strategy at Kidbrooke Village in partnership with the London Wildlife Trust.Following our pioneering work in this field,this year the Government has announced that net biodiversity gain will be

64、mandatory for new developments through national policy.I am also delighted to report that in May 2019,Berkeleys company-wide approach to tackle climate change was credited with the Carbon Reduction or Offset Programme of the Year accolade at the Better Society Awards 2019.This fantastic result refle

65、cts our status as the countrys only carbon positive residential developer,something we achieved in 2018.This was also a great year for project-level milestones and achievements.The regeneration of Woodberry Down in Hackney celebrated its 10th anniversary,as did Kidbrooke Village in Greenwich.At Sout

66、hall Waterside,we have now welcomed the first local Ealing residents to this 88 acre former gasworks and seen more than 50 Londoners enrol in the sites state-of-the-art Construction Academy,delivered in partnership with West London College.During the year,Berkeley made shareholder returns of 251.9 m

67、illion,of which 198.9 million was represented by share buy-backs and 53.0 million by dividends.This included the 139.7 million scheduled return for the six months ended 31 March 2019.Of the 139.7 million return announced to be made by 30 September 2019,5.2 million has been made to date through share

68、 buy-backs.The amount that will be returned as a dividend will be announced on 15 August 2019 and paid on 13 September 2019 to shareholders on the register on 23 August 2019,taking account of any further share buy-backs in the intervening period.I am extremely proud of these results,and the unique o

69、perating model which underpins them.Most of all,I am grateful and indebted to our superb staff and fantastic partners.The passion and care they bring to their work are what give the places we create their life,pride and enduring value.TONY PIDGLEY CBECHAIRMAN09Berkeley Group 2019 Annual ReportStrate

70、gic ReportCorporate GovernanceFinancial StatementsThe masterplan for this former industrial estate,approved in 2018,has been shaped through a far-reaching community engagement programme.Local people helped St George to define the vision and influenced everything from building form to the mix of uses

71、 and amenities,including a 5,000sq ft community centre,a canalside piazza,central gardens and riverside meadows alongside 2,900 new homes.Together with local residents,we designed an extensive engagement programme with different ways to get involved:9,000 regular newsletters sent to local homes and

72、businesses4 street interview survey sessions3 walk and talk site tours11 Community Liaison Group meetings4 community design workshops 5 public exhibitions1 purpose built community information centre3,597 visitors to a dedicated websiteWe also established the Alperton Summer Festival,which brought hu

73、ndreds of local people together for the first time.This included working with the Alperton Community School to train and recruit the Alperton Ambassadors,talented young people who helped shape the festivals.Read more online:www.berkeleygroup.co.uk/grandunionCase StudyCollaborative masterplanning Gra

74、nd Union,Brent “Its a great scheme and one that,through the extensive consultation work St George has undertaken,carries the support of residents,businesses,politicians and,now,the councils planning committee.”Shama Tatler,Cabinet Member for Regeneration,Highways and Planning,LondonBorough of Brent1

75、0Berkeley Group2019 Annual ReportComputer generated image:Grand Union11Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial Statements25 acreWoodberry Wetlands nature reserve500 local resident volunteers1,798new homes delivered to dateThis community-led regeneration program

76、me has revived a failing post-war housing estate and is on course to deliver 5,500 mixed tenure homes.In partnership with Woodberry Down Community Organisation,Hackney Council,Notting Hill Genesis and Manor House Development Trust,we have already created 7.5 acres of welcoming public open space and

77、brought the banks of the neighbouring reservoir to life with a new boardwalk,bridge-link and waterside play ground.In partnership with the London Wildlife Trust and Thames Water,Woodberry Down has been connected to the Woodberry Wetlands,a beautiful 25 acre nature reserve,open to everyone all year r

78、ound.There are also new shops,cafes,a pub,playgrounds and an award winning community centre.Read more online:www.berkeleygroup.co.uk/woodberrydownCase StudyCommunity-led regeneration Woodberry Down,Hackney Woodberry Down was named UK Project of the Year atthe Royal Institute of Chartered Surveys(RIC

79、S)Awards 2018.“The Woodberry Down project team has taken on the regenerationofthis area with integrity and a genuine desire to improvenot just the physical environment,but also residents economic aspirations and social wellbeing.”RICS Awards citation12Berkeley Group2019 Annual ReportWoodberry Down13

80、Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsCase StudySouthall Waterside“This development is providing jobs and will bring a diverse mix of new amenities to the area.Importantly,it is also delivering affordable homes for Ealing residents this means that S

81、outhall Waterside is a community for all.”Cllr Julian Bell,Leader of Ealing Council3,750mixed tenure homes17 minutes to Bond Street via Crossrail40 acresof parkland and net biodiverse habitatsSouthall Waterside will create around 3,750 tenure blind homes as this 88 acre former gasworks is brought to

82、 life and reconnected with the surrounding community.The sites masterplan,developed in close collaboration with Ealing Council,will see around half of this vast brownfield site become public open space,including approximately 40 acres of parkland and biodiverse habitats.There will be a network of in

83、viting nature and fitness trails,wetlands,cycle-paths and walkways alongside a mix of new amenities,including a health centre,primary school and a commercial district with shops,restaurants,and public squares.In 2019 we welcomed our first local residents to their new homes.Read more online:www.berke

84、leygroup.co.ukBelow left;the former Southall gasworks site was used as a Heathrow car park prior to regeneration.Below right;local people celebrate moving in to the first 186 homes,which are being offered to Ealing residents on an affordable rent or shared ownership basis.14Berkeley Group2019 Annual

85、 ReportComputer generated image:Southall Waterside15Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsIncreasing Nature and Reducing CarbonWe believe that all new developments should strengthen local communities and improve the natural environment for future ge

86、nerations.Berkeley has implemented industry-leading initiatives on biodiversity and carbon as part of our business strategy,Our Vision,to help achieve these aims.Since 2017,Berkeley has been applying its Biodiversity Toolkit to every new development at the earliest stage of design.This involves meas

87、uring the sites existing nature and developing a strategy to deliver net biodiversity gain.We have applied the Toolkit to more than 25 sites and made a commitment to increase the levels of nature.We were the first developer in the country to develop and implement a process for delivering net biodive

88、rsity gain and our leading approach was recognised and shared in the Governments consultation on this topic.We are continuing to share our learning across the industry.Case studyKidbrooke VillageAt Kidbrooke Village in Greenwich we have implemented the UKs first large scale net biodiversity gain str

89、ategy in partnership with the London Wildlife Trust.Initially we used our Biodiversity Toolkit to baseline the ecological value of the park created in an earlier phase of the development.We then redesigned the landscape to create a more valuable network of natural habitats,including meadows,grasslan

90、ds and wetlands.As a result,Kidbrooke Village is on course to achieve a net biodiversity gain of more than 100%.Read more on page 45Net Biodiversity Gain“We recognise the Berkeley Groups commitment to achieving measurable net gain in biodiversity and welcome their positive contribution and continued

91、 support for an industry-wide approach to delivering net gain and an associated metric.”Emma Howard Boyd Chair,Environment AgencyBelow:Biodiverse landscape at Kidbrooke Village16Berkeley Group2019 Annual ReportAwardsBetter Society Awards 2019Carbon Reduction or Offset Programme of the Year CIRIA BIG

92、 Biodiversity Challenge Award 2018Client Award for net biodiversity gain approachCIRIA BIG Biodiversity Challenge Award 2017Medium Scale Permanent Award,Fitzroy GateCIRIA BIG Biodiversity Challenge Award 2016Pollinator Award,One Tower BridgeThe Sunday Times British Homes Awards 2018Best Garden/Lands

93、caping Design,Fitzroy GateThe Sunday Times British Homes Awards 2018Best Placemaking,Kidbrooke VillageThe Sunday Times British Homes Awards 2017Outstanding Placemaking,Woodberry DownIn 2018,Berkeley became the UKs first carbon positive homebuilder by reducing its carbon emission intensity from busin

94、ess operations by 22%(compared to 2016),procuring renewable energy and offsetting 110%of remaining emissions through the support of verified projects.Reductions resulted from introducing the following:Minimum recommendations for site set up and operation Guidance on identifying and reducing unnecess

95、ary energy consumption,particularly out of hours A best practice directory of energy efficient technologies and initiatives A Carbon Management and Action Plan template to effectively manage and identify carbon reduction initiatives.Berkeley has committed to creating new homes that can operate at ne

96、t zero carbon by 2030.Our goal is to create highly efficient,low energy homes which can draw the power they need from clean and renewable sources.We are a partner of the UK Green Building Councils(UKGBCs)Advancing Net Zero programme which has produced a definition and framework for net zero building

97、s.As the only housebuilder partner,we are helping lead the drive towards decarbonising the built environment.Case studyCarbon reduction initiativesOur sites and offices continue to implement energy efficiency measures to reduce their carbon emissions impact.Our London Dock site has installed solar p

98、hotovoltaic panels to help power their welfare cabins,whilst facilities at Royal Arsenal Riverside have been retrofitted to include LED lighting,along with master switches and time clocks on equipment.Replacement of fluorescent ceiling lights with ultra-efficient LED ones at our Chelsea Bridge Wharf

99、 office has led to an energy saving on lighting of more than 15%.Case studyFuture Energy HomeBerkeley is collaborating with E.ON to pilot the Future Energy Home at Kidbrooke Village.We have installed an innovative solar glazing roof canopy which captures energy and stores it in a battery that can he

100、lp power the home and charge an electric vehicle.This clean energy solution is set within a thermally efficient modular home,which has been fitted out with the latest home technologies,including light switches,plug sockets,thermostats and radiator valves which have smart functionality.Read more on p

101、age 41Read more on page 49Going Carbon PositiveNet Zero Carbon HomesSolar photovoltaic panels on site welfare facilities at London Dock,WappingFuture Energy Home,Kidbrooke Village17Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial Statements Berkeleys purpose is to creat

102、e homes,strengthen communities and improve peoples lives.Our sustained commercial success enables the valuable and enduring contributions we make to society,the economy and the natural world.Chief Executives StatementSummary of PerformanceBerkeley has delivered pre-tax earnings of 775.2 million for

103、the year.This is from the sale of 3,698 homes(2018:3,678)at an average selling price of 748,000(2018:725,000),reflecting the mix of properties sold in the year.Berkeley started the year anticipating profits for 2018/19 would be approximately 30%lower than 2017/18,as the positive impact of the invest

104、ment made at the end of the financial crisis reduced and profitability began to normalise.This is therefore a strong set of results,reflecting robust trading in the year and the appeal of Berkeleys developments.In December 2016,Berkeley set a plan to deliver 3.0 billion of pre-tax profit over the fi

105、ve years to 30 April 2021.We are currently 18%ahead of this,in spite of the extended period of macro and political uncertainty.In line with existing guidance and the original plan,pre-tax profit for 2019/20 is anticipated to fall by around a third from the 2018/19 level,with the pre-tax ROE expected

106、 to settle at around 15%thereafter.In the first three years of this plan,Berkeley has increased its net cash position from 107.4 million to 975.0 million,a level which represents under-investment commensurate with the uncertain operating environment.Notwithstanding this,and the high level of profit

107、delivery over this period,Berkeley has maintained the estimated gross profit in its land holdings at over 6.0 billion.Strategy updateBerkeleys strategy for capital allocation is to:first,invest in opportunities for the business where the right risk-adjusted returns are available;second,to ensure the

108、 financial strength reflects the prevailing macro environment;and third,to make returns to shareholders through either dividends or share buy-backs.The current phase of the strategy began in 2011.We had entered the financial crisis in a position of strength and identified what was a unique opportuni

109、ty to invest our capital to create value for our shareholders and other stakeholders.At the time,Berkeley had net assets of 0.9 billion(7.09 per share),was ungeared and had an estimated 2.3 billion of future gross profit in its land holdings.From this base we made a commitment to return 1.7 billion

110、to shareholders(13.00 per share)over the next 10 years,which was subsequently increased by 0.5 billion to 2.2 billion(16.34per share).Since then Berkeley has successfully executed its strategy,delivering exceptional financial returns that were unique to this period,whilst continuing to invest.Conseq

111、uently,Berkeley now has an estimated 6.2 billion of future gross profit in its land holdings,whilst net assets are 3.0 billion(23.05 per share);a 225%increase of 2.1 billion or 15.96 per share over the eight years over which period shareholder returns of 11.34 have also been made through a combinati

112、on of dividends and share buy-backs.The land holdings contain a number of fantastic regeneration sites in our wholly owned business,as well as that of our joint ventures which are in,or will shortly move into,production.In London,these include sites at White City,South Quay Plaza,Grand Union in Bren

113、t,Southall Waterside,Oval Village and Stephenson Street in West Ham.Outside the capital,these include sites in Birmingham,Watford,Reading,Slough and Staines.In its joint ventures,this includes Hartland Village in Fleet in St Edward,and Clarendon in Hornsey,Kings Road Park in Fulham and Poplar Rivers

114、ide in St William.These long-term sites supplement our existing ongoing regeneration sites at Royal Arsenal Riverside in Greenwich,Woodberry Down in Finsbury,Kidbrooke Village in Greenwich,Beaufort Park in Hendon,London Dock in Wapping and Green Park Village in Reading,amongst others.We are also see

115、king to invest in new opportunities as the market in London and the South East adjusts to the prevailing macro uncertainty and policy interventions of recent years.Berkeley has the unique expertise to unlock the social and economic value in all of these long-term sites,coupled with the strong capita

116、l base required to execute their delivery as,by nature they are highly capital intensive;particularly in the early stages of remediation and investment in site infrastructure.The success of these sites is founded on trusted partnerships with local authorities and communities and their development is

117、 directly aligned to the Governments strategy for increasing the supply of good quality homes for everyone,across all tenures.18Berkeley Group2019 Annual ReportFitzroy Gate,Old Isleworth Signalling this new investment phase,Berkeley has commenced production on 14 sites in the year,ten of which have

118、been in the second half of the financial year and include some of the next wave of regeneration sites already referred to,such as Oval Village,Southall Waterside,Hartland Village,Clarendon and Kings Road Park.In this next phase of its strategy,Berkeley is targeting a long-term,sustainable pre-tax re

119、turn on equity of 15%.This return is commensurate with the investment required to bring forward the next generation of sites,their longevity and relative risk profile,alongside Berkeleys lasting commitment to investing in the wider community benefits that good development brings.As announced in our

120、interim results,this investment phase also underpins the extension of the current annual quantum of shareholder returns of 280 million by a further four years to September 2025,assuming there is no material deterioration in the operating environment.The Remuneration Committee of the Board is now con

121、sulting with shareholders over a new three-year remuneration policy to be put to the 2019 Annual General Meeting in September.Shareholder Returns ProgrammeIn its interim results,Berkeley announced that the next six monthly 139.7 million Shareholder Return will be provided by 30 September 2019 throug

122、h a combination of dividends and share buy-backs.By 30 April 2019,Berkeley had returned 5.2 million via share buy-backs.The return amount will be increased appropriately in the event that any new shares are issued either from treasury or as newly listed shares.In total,Berkeley has returned or commi

123、tted to return 12.34per share of the 16.34 Shareholder Return to be made by 30 September 2021.The final 4.00 per share under the formal 2011 Shareholder Returns programme is scheduled to be returned over the following two year period to 30 September 2021,with the current annual 280 million return co

124、ntinuing thereafter to September 2025,as noted above.This financial year,Shareholder Returns totalled 251.9 million,with 53.0 million returned through dividends and 198.9 million through share buy-backs(5.6 million shares).Of the Shareholder Returns made to date under the 2011 programme,383.7 millio

125、n has been made via share buy-backs,with 11.1 million shares acquired,at an average cost of 34.63 pence per share(range:28.08 38.45 per share).Following the share buy-backs executed to date,the annual Shareholder Return(currently 280 million)now equates to 2.16 per share;an 8%increase to the initial

126、 2.00 per share.Housing MarketFor Berkeley,trading conditions and the value of new reservations secured continues to be stable,with 2018/19 being marginally ahead of 2017/18.These are at levels which underpin the business plan but which are constrained by the continuing economic and political uncert

127、ainty and policy interventions,including high transaction costs and mortgage restrictions,both on income multiples and mortgage offer periods.According to the latest MHCLG data,new starts in London for the 2018 calendar year were broadly stable when compared with 2017,remaining some 30%down from the

128、 peak in 2015,and less than a third of the draft London Plan target of 66,000 new homes per year.Whilst completion statistics in the capital had been rising for some time,inevitably the reducing new starts of recent years are impacting completion volumes for the first time.According to the MHCLG dat

129、a,completions for 2018 were down 32%on 2017.Consequently,supply in London is reducing at a time when more new homes need to come forward.In this environment,pricing remains firm and we continue to secure prices above the business plan levels,broadly covering build cost increases.The level of cancell

130、ations remains stable and within the normal range.Sales continue to be split broadly evenly between owner occupiers and investors,with overseas customers continuing to see relative value in the London market.Help to Buy reservations accounted for 297 sales in the year.Reflecting the profile of deliv

131、ery on our London developments,this has been a year in which high revenue has resulted in a moderation of cash due on forward sales to 1.8 billion,down from 2.2 billion at 30 April 2018.The cash due on these forward sales will be collected in the next three financial years and provides a strong unde

132、rpin for the business plan.This year we have launched 11 new developments to the market:three in London,at Trent Park in Enfield,Oval Village and St Williams Clarendon in Hornsey;and the rest outside the capital,in Winchester,Leatherhead,Cranleigh,Sevenoaks,Ascot,Snow Hill Wharf in Birmingham and in

133、 our joint ventures at Fleet and Borehamwood.As noted earlier,with a number of new sites having recently moved into production,we anticipate further launches during 2019/20 at,for example,Southall Waterside,19Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsCh

134、ief Executives Statement continuedGrand Union in Brent and Kings Road Park in Fulham with other launches subject to the next wave of sites coming forward for development once pre-development restraints are resolved.Berkeley has added 14 new sites to its land holdings in the year and obtained nine ne

135、w planning consents,along with over 60revisions to existing consents.We are also seeing a number of new opportunities as the market in London and the South East factors in the prevailing macro uncertainty and policy interventions of recent years but have been naturally cautious in this period of ext

136、ended political and economic volatility.As reported in our interim results,build cost rises remain steady at around 4%per annum and we continue to monitor the impact presented by various Brexit scenarios.The risks associated with a“no deal Brexit”are well documented.For Berkeley,areas of potential i

137、mpact include short-term materials availability and pricing and,over the longer term,the availability of skilled labour.Our VisionBerkeleys business strategy is called Our Vision and includes five strategic focus areas:Customers,Homes,Places,Operations and Our People.Every two years we review and de

138、velop strategic commitments under each of our focus areas to drive continual business improvement and to address industry and global issues.Our Vision is an integrated business strategy,bringing together our commitments across a wide range of business topics,including sustainability and key themes s

139、uch as climate change and nature.We have reviewed the United Nations Sustainable Development Goals(SDGs)and the targets that sit beneath them,to understand how they relate to our business and where we can make the most significant contribution.We are making good progress against our commitments laun

140、ched in May 2018,with performance highlights as follows:CustomersOur customers experience is central to our strategy and we use the independently assessed Net Promoter Score(NPS)to drive and measure progress in this area.Our NPS remains industry leading at 73.5(on a scale of-100 to+100).We continue

141、to gather insight into the customer journey to further improve the professional and efficient service we provide.HomesIn May 2018 we committed to produce a transition plan for each new development to enable our homes to operate at net zero carbon by 2030,in our drive to help the built environment tr

142、ansition towards a low carbon economy.In the year,we have trialled transition plans for three of our developments,helping us to further understand the long-term energy solutions that will enable our customers to live low carbon lifestyles.We have built upon our own commitment by becoming a programme

143、 partner of the UK Green Building Councils(UKGBCs)Advancing Net Zero work.At the same time,we continue to work with E.ON to pilot the Future Energy Home,which allows residents to generate renewable energy on site and then store it in a battery;this energy can then be used to charge electric vehicles

144、 and to relieve pressure on the power grid at times of high demand.PlacesCreating beautiful,sustainable places that will endure as settled,vibrant communities long into the future,is central to our approach.Nature can bring a multitude of benefits to communities,and we believe that new developments

145、can create places with more nature afterwards than before,through the provision of higher quality habitats.We have delivered our first measured implementation of net biodiversity gain at Kidbrooke Village,as calculated using our Biodiversity Toolkit.Here we have worked with the London Wildlife Trust

146、 to transform parkland into a wetland area that will attract wildlife and people.More broadly,Berkeley has been sharing its approach to net biodiversity gain with Natural England and the Greater London Authority to help inform future policy.We are delighted that our approach has been nationally reco

147、gnised and shared in the Governments consultation on net biodiversity gain,making Berkeley well placed to meet the Governments intention to mandate net biodiversity gain for new developments.OperationsBerkeley has continued to progress delivery of its Berkeley Modular facility in the year,having com

148、pleted construction of the factory building in the year.We are undertaking research and development with our consultants and supply chain partners to create a sophisticated modular solution.We are proud that our team at One Blackfriars has demonstrated industry leading performance in managing this c

149、omplex construction site with exemplary consideration of the workforce,community and environment,achieving the accolade of Most Considerate Site(50m)at the Considerate Constructors Scheme National Site Awards 2019.More broadly,our approach to ensuring our operations are carbon positive has been reco

150、gnised at the Better Society Awards 2019,with Berkeley winning Carbon Reduction or Offset Programme of the Year.Our PeopleContributing to tackling the industrys skills crisis remains a key area of focus for Berkeley.In autumn 2018,we saw the official opening of one of the countrys first purpose-buil

151、t construction academies on our Southall Waterside regeneration site.The West London Construction Academy is being delivered in partnership with West London College and was named as one of the first Mayors Construction Academy(MCA)Hubs in January 2019,a quality mark that identifies and recognises hi

152、gh-quality construction skills training in London.The Villas,Barnes20Berkeley Group2019 Annual ReportRead more online:www.berkeleygroup.co.uk/hartlandvillageCase studyHartland Village,HampshireWork is now underway on Hartland Village,one of St Edwards most ambitious brownfield regeneration programme

153、s outside of London.This project will see a long standing derelict manufacturing site transformed into a highly sustainable new village,featuring biodiverse parkland,a lake and swales,a village green,health centre,community hall and school.Community amenities,including a subsidised village shop,will

154、 be delivered early to help people mix,meet and enjoy village life.A Community Liaison Manager will help nurture community growth and there will be 10km of walkable links,nature trails and cycle paths.1,500 30mixed tenure homes acres of concrete slabs reused on site 70 1,000acre country park new tre

155、es21Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsChief Executives Statement continuedThe health,safety and wellbeing of our people is of the highest importance to Berkeley.Our latest 12 month rolling Accident Injury Incidence Rate(AIIR)is 1.14 reportable i

156、ncidents for every 1,000 people working on our sites and in our offices(2018:1.42).We are strengthening our focus on wellbeing,and in particular are developing and implementing a strategy for mental health,with 80 Mental Health First Aiders having been trained in the year.The Berkeley FoundationWe c

157、ontinue to support our local communities through the Berkeley Foundation(the“Foundation”),a registered charity.The Foundation works in partnership with the voluntary sector across London,Birmingham and the South East of England,with a particular focus on reducing homelessness,increasing access to em

158、ployment,and improving health and wellbeing.Since 2014,the Foundations partnerships have supported almost 22,000 people.This year,the Foundation has contributed more than 3.2 million in funding,through grants,fundraising and Give As You Earn.65%of Berkeley staff have got involved in its work,raising

159、 over 1 million;more than ever before.Berkeley also earned the new Diamond Payroll Giving Award the highest level achievable.The Foundation has recently launched its new strategic plan,which will take the organisation through to 2021.This focuses the Foundations efforts on improving social mobility

160、for young people in our local communities,working towards a new vision:a society in which every young person can thrive.Over the next three years,this will involve growing the Foundations community investment,working with others to develop more collaborative approaches to funding,and looking at how

161、we can maximise the value we are able to add to the Foundations partners through the skills,experiences and opportunities available at Berkeley.Dickens Yard,EalingOutlookThe operating environment has been uncertain for three years,since the United Kingdom chose to leave the European Union,resulting

162、in a lack of visibility in the political outlook.When seen alongside the increasing property tax burden since 2014,and a complicated,costly and bureaucratic planning system,it is unsurprising that both demand and supply are constrained at present.Businesses are used to,and indeed thrive on changing

163、economic and commercial conditions but they do need a supportive and stable political and regulatory environment to invest with confidence and stimulate growth.Underpinning the market for Berkeley over this period has been robust demand for well-located homes,priced correctly and that are built to a

164、 good standard of quality within welcoming environments.We have invested in our brand,with our holistic approach to place-making,putting people,nature and the strength and wellbeing of the wider community at the core of every development plan.London remains a fantastic global City,a place where peop

165、le aspire to live and work,and the UK continues to benefit from strong employment and low borrowing costs.Berkeley starts the coming year from a position of strength,with net cash of 975.0 million,forward sales of 1.8 billion and an estimated 6.2 billion of gross profit in our land holdings,and this

166、 means we can look beyond the current period of uncertainty with confidence.However,like all responsible businesses who operate in cyclical markets,we have been,and will remain cautious in our investment in this environment,and this will determine the speed with which we deliver the value from our a

167、ssets and invest in new opportunities.ROB PERRINSCHIEF EXECUTIVE22Berkeley Group2019 Annual ReportCase studyThe Hamptons 10 years onMore than 10 years after St James completed the final phase of The Hamptons in Worcester Park,this distinctive New England style neighbourhood has developed a strong se

168、nse of identity and a more beautiful and mature natural landscape.A former Thames Water sewage works,the site required extensive remediation before being transformed into 645 new homes,set within 30 acres of green space,including a public park with amphitheatre,wetlands and a community centre.23Berk

169、eley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsIn 2018,Berkeley launched the 20,000 sq ft West London Construction Academy at Southall Waterside in partnership with West London College.This is one of the countrys first purpose built construction training facilit

170、ies,with a curriculum and learning environment designed for industry,by industry.The first cohort of apprentices are now enrolled and are learning their trades with the direct support of industry professionals from within Berkeley and its supply chain.The Academy is now part of the Mayor of Londons

171、Construction Academy hub network,a quality mark that identifies and recognises high quality construction skills training.Case StudyWest London Construction Academy 24Berkeley Group2019 Annual Report25Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsBerkeley Fo

172、undationBerkeley FoundationBuilding a society where every young person can thriveYou can read the Foundations full strategy at:www.berkeleyfoundation.org.uk/about-usThe Berkeley Foundation is a registered charity,launched by Berkeley in 2011.It works in partnership to help young people in London,Bir

173、mingham and the South of England to overcome barriers,improve their lives and build a fairer society.It focuses its work in four areas:A safe place to call homeEnsuring young people have secure,stable accommodationHealth and wellbeingSupporting young people to live happy,healthy livesThe skills to s

174、ucceedHelping young people develop the skills and capabilities they need to thriveAccess to employmentEnabling young people to overcome barriers to work and kick-start their careersThis year saw the launch of the Foundations new strategy for 2018-2021,which has a sharper focus on supporting young pe

175、ople and increasing social mobility.Over the coming years,the Foundation aims to scale up its funding,grow its impact and deepen its partnerships.We also held the first ever Berkeley Foundation Awards in April 2019,celebrating the phenomenal contribution made by our businesses,staff and supply chain

176、 companies to the work of the Foundation and its charity partners.Berkeley provides the core funding for the Foundation,pays all of its overheads,and covers the cost of specific fundraising events.This support means that every penny raised for the Foundation is spent on charitable activities.Working

177、 in partnershipThe Foundation builds long-term,impactful partnerships with the voluntary sector through three main routes:Strategic partnershipsLong-term,high value charity partnerships which operate on multiple levels.Designated charities20 charities chosen by our employees which are local to their

178、 offices and developments.Community investment fundTargeted funding programmes,aimed at supporting innovation and building evidence of what works.As well as funding frontline services,these partnerships put the skills,resources and networks of Berkeley to work,through skilled volunteering,collaborat

179、ion,and by providing work experience and job opportunities on our sites.The Foundations partnership with Crisis(opposite)is a great example of how this works in practice.Berkeley Foundation Awards 201926Berkeley Group2019 Annual ReportThe partnership supports people who have experienced homelessness

180、 to get back into work.This year,87 people accessed education,employment or training as a result of the Foundations funding,with 37 moving into paid employment.In 2018,62 Berkeley employees took part in the Square Mile Run,raising over 19,000 for Crisis by racing through the City of London.Staff fro

181、m across Berkeley also offered their skills to support Crisis members into work by volunteering at the biannual Crisis Employment Platforms.Meanwhile,more than 40 staff volunteered their time at Crisis at Christmas,supporting the running of day and night centres for homeless people which welcomed ov

182、er 4,000 guests in 2018 and served more than 35,000 Christmas dinners.“Crisis and the Berkeley Foundation have worked in partnership for several years.The partnership continues to be a huge success and makes a genuine impact on homelessness in Great Britain.The Foundation supports a number of innova

183、tive housing projects as well as our Employment Services in London,Croydon and Brent.These services have a strong track record of helping homeless people find and sustain jobs an important element of supporting people out of homelessness for good.The Berkeley Foundation is invested in the delivery a

184、nd development of our strategy and the partnership is a great example of collaborative working.”Jon Sparkes,Chief Executive,Crisis.Berkeley Foundation and CrisisThere are almost 160,000 households experiencing the worst forms of homelessness in Britain.Crisis and the Berkeley Foundation have been wo

185、rking together to tackle this growing epidemic since 2013.Foundation highlights 5,300This year,the Foundations work has reached more than 5,300 people,helping them to move out of homelessness,build their skills,move into work or access new opportunities.10,000Berkeley staff volunteer more than 10,00

186、0 hours each year to support their local communities.3.2mThis year,the Berkeley Foundation has committed more than 3.2 million to support our local communities.65%of Berkeley staff do something each year to support the Berkeley Foundation.32%of Berkeley staff are signed up to our Give As You Earn(GA

187、YE)scheme,earning Berkeley a Diamond Payroll Giving Award in 2018 the highest level available.5.5mBerkeley staff have raised more than 5.5 million for the Berkeley Foundation and its charity partners through fundraising and GAYE to date.27Berkeley Group 2019 Annual ReportStrategic ReportCorporate Go

188、vernanceFinancial StatementsBusiness ModelTaking a long-term view of value creationStrategic focus areas under our business strategy:Our VisionCustomersProvide exceptional service toall of ourcustomers and put them at the heart of ourdecisionsHave integrityBuild trust by being open,clear andcredible

189、Respect people Work together,empower people and value their contributionHomesDeliver high quality homes with low environmental impact where people aspireto liveRead more on pages 32 to 53Our unique operating modelInputs for value creationPeople across the business Employees and supply chain with the

190、 expertise and experience to deliver complex regeneration developmentsRelationships and partnerships with key stakeholders Relationships with public and private joint venture partners,land owners,our supply chain,local authorities,industry bodies,communities and customersPhysical and natural resourc

191、es Well located land holdings where we can add value High quality materials and resourcesFinancial Financial capital underpinned by a strong balance sheet,net cash and forward sales Rigorous land investment appraisal processRead more on pages 70 to 73Our operating model recognises the cyclical natur

192、e of the housing market and the high operating risk of our complex,long-term developments,by placing product quality,placemaking and customer service at its core.Financial risk is kept low at all times,which enables investment at the right time in the cycle.Identifying and acquiring landDesigning an

193、dplanning new homes,places and communitiesBuilding new homes,places and communitiesOur core activitiesUnderpinned by our core values28Berkeley Group2019 Annual ReportThink creatively Find individual solutions for every site and situationBe passionate Take pride in what we do and the impactwe makeExc

194、ellence through detailDeliver the best through attention todetail in everything we doPlacesCreate strong communities where residents can live an enjoyable,sustainablelifeOperationsMake the right long-term decisions,run the business efficiently and work collaboratively with our supplychainOur PeopleD

195、evelop highly skilled teams that work together in a safe,healthy and supportive environment and contribute towider societyValue createdPeople across the business Increased knowledge and skills through strong retention,training and development Excellent health and safety record and employee wellbeing

196、 Job creation through construction activity and on completed developmentsRelationships and partnerships with keystakeholders Reputation for high quality delivery across all tenures Enduring stakeholder relationships underpinned by trust and partnership approach Satisfied customersRead more on pages

197、56 to 57Physical and natural resources Thriving developments where people aspire to live and work Reducing greenhouse gas emissions,water use and waste production through direct activities and the design of homes Enhancing biodiversity to support nature and peopleswellbeingFinancial Strong,sustainab

198、le risk-adjusted returns for shareholders Ability to invest at the right point in the cycleThis unique approach enables Berkeley to deliver sustainable risk-adjusted returns to our shareholders,while having a positive impact for our stakeholders,society and the environment.Marketingand customerservi

199、cePlacekeepingandstewardship29Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsKey Performance IndicatorsOur key performance indicators(KPIs)are aligned to the business strategy and are used to actively monitor business performance.In addition to these non-fin

200、ancial KPIs,Berkeley monitors and reports on business performance through a host of other data,highlights and awards.Some of these are detailed within the Our Vision business strategy sections of this report.Read more on pages 32 to 53This provides a measure of the financial strengthof the Group.Thi

201、s measure shows the number of reportable injuries during the year,in relation to the number of Berkeley employees and contractors working across our sites.It compares favourably to the industry average of 3.58(Health and Safety Executive,2018).This measures cash due from customers during the next th

202、ree financial years under unconditional contracts for sale.This measures our contribution to affordable housing subsidies and wider community and infrastructure benefits delivered or committed to during the year.The efficiency of the returns generated from shareholder equity in the business is measu

203、red by calculating profit before tax as a percentage of the average of opening and closing shareholders funds.Calculated as the average monthly percentage of our direct workforce that are apprenctices,graduates or employees undertaking formal training.Over 500 apprentices have worked on Berkeley sit

204、es during the year.This provides a measure of expected value in the Groups land holdings,including its share of joint ventures,in the event that it successfully sells and delivers the developments planned for.Profit before tax775.2m(2018:977.0m)Net Promoter Score73.5(2018:73.9)Net asset value per sh

205、are23.05(2018:19.38)Greenhouse gas emissionsintensity2.50(2018:2.15)Net cash975.0m(2018:687.3m)Annual Injury Incidence Rate per 1,000people1.14(2018:1.42)Cash due on forward sales1,831m(2018:2,193m)Affordable housing and widercontributions525m(2018:420m)Pre-tax return on equity27.9%(2018:41.9%)Direc

206、t apprentices and training9.8%(2018:7.3%)Future gross margin in land holdings6,247m(2018:6,003m)Financial KPIsNon-financial KPIsThis is our core measure of profitability,our absolute return from the sale and delivery of new homes in the year.Our six-month rolling Net Promoter Score(NPS)is an indicat

207、or of the success of our efforts to provide world-class customer service.Our NPS significantly outperforms the sector average of 32(Home Builders Federation,2019)and compares favourably with top performing consumer brands.This balance sheet measure reflects the value of shareholders interests in the

208、 net assets of the business.This measure relates our annual greenhouse gas emissions resulting from our operational activities to the number of Berkeley employees and the number of contractors working on our sites.30Berkeley Group2019 Annual ReportOn average,every new home built by Berkeley in the l

209、ast five years has generated 290,000 of value to the state through taxation and contributions to the community.Economic ContributionEach year EY completes an Economic Impact Assessment based on Berkeleys financial data as well as publicly available statistics.The results for the last five years(1 Ma

210、y 2014 30 April 2019)are presented below.Berkeleys contribution to UK GDP was 3.0 billion in 2018/19 and 13.5bn for the five years.Berkeley built 3,959 homes in 2018/19 and a total of 19,660 over the last five years(including joint ventures).Total UK tax contribution of 816 million in 2018/19 and ov

211、er 3.6 billion during the last five years.This includes taxes paid directly by Berkeley and the taxes paid by its customers and suppliers as a result of Berkeley activities.Including more than 0.5bn in 2018/19.In total,Berkeley has contributed 1.5bn as a subsidy for affordable housing*and committed

212、to additional payments of 0.6bn to help pay for a wide range of facilities and services for local communities.Jobs29,250 Berkeley has supported,on average,29,250 jobs per annum directly and through its supply chain over the five year period.Economy13.5bnHomes19,660Tax3.6bn Communities2.1bn*Berkeley

213、calculation,based on MHCLG valuation methodology.31Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsBusiness Strategy:Our VisionBerkeleys business strategy is called Our Vision Through the delivery of Our Vision,we aim to be a world-class business,defined by t

214、he quality of the places we create,generating long-term value and having a positive impact on society.There are five areas of strategic focus under Our Vision:Customers,Homes,Places,Operations and Our People.By focusing on strategic objectives under these areas,we ensure that we continue to provide

215、customers with an exceptional service,whilst delivering high quality homes and places where communities can thrive and where people can live sustainable lifestyles.We also recognise that the skills,knowledge and dedication of our people,alongside the efficient management of our operations,are fundam

216、ental to the ongoing success of our business.Strategic focus areasStrategic objectivesCustomersProvide exceptional service to all of our customers and put them at the heart of our decisionsHomesDeliver high quality homes with low environmental impact where people aspire to livePlacesCreate strong co

217、mmunities 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 teams that work together in a safe,healthy and supportive environment and contribut

218、e to wider societyRead more on pages 34 to 37Read more on pages 38 to 41Read more on pages 42 to 45Read more on pages 46 to 49Read more on pages 50 to 5332Berkeley Group2019 Annual ReportStrategic commitmentsEvery two years we review and develop strategic commitments under each of our focus areas to

219、 drive continual improvement.We ensure a consistently strong approach through the following mechanisms:Integration of new themes The regular review of commitments provides the opportunity to identify and address any emerging global,industry or business issues and opportunities.For example,we have ad

220、ded off-site manufacture as a commitment for 2018-2020.Evolution of continuing themes A number of themes remain high level priorities for Berkeley to take action on.These feature within our strategic commitments for recurring periods,in recognition of the need to drive incremental change.Continuing

221、themes include climate change mitigation and adaptation,community,and customer service levels.Our headline commitments are our priority actions for each two year period.In addition to these,we have supporting commitments,which in many instances are previous headline commitments that have become embe

222、dded into our everyday activities.In May 2018,we launched ten headline commitments to achieve by April 2020,underpinned by revised supporting commitments in each focus area.The development of the new commitments was informed by in-depth initial research followed by a materiality assessment to unders

223、tand the views of our employees and key external stakeholders.MaterialityWith the support of an objective external party,in 2018 all employees were invited to provide their views on material issues to be addressed through Our Vision;responses were received from just under 1,200 people,representing a

224、pproximately 45%of the business.Views from key external stakeholders,including contractors,partners and industry groups,were also requested via both an online survey and detailed interviews.The results of this work were used to shortlist topic themes for further consultation with each of our autonom

225、ous companies and specialist committees.Workshops were run on each of the focus areas to debate and refine the commitments before being signed-off by the Main Board.SustainabilityOur Vision is an integrated business strategy,bringing together our commitments across a wide range of business topics,in

226、cluding sustainability.This is reflected by having a Main Board Executive Director with overarching responsibility for Our Vision,sustainability,and health and safety.We believe that each of our employees has a duty to integrate sustainability into their role and working practices.Policies and stand

227、ards are set at a Group level(see our Non-Financial Reporting Statement on page 55),and are supported by a sustainability management system in place across all of our operating companies.This includes procedures to manage sustainability at each stage of the development process,from land purchase,thr

228、ough design,procurement and construction,all the way to marketing,sales and handover.To be a world-class business,it is important that we help to address global challenges.We have reviewed the United Nations Sustainable Development Goals(SDGs)and the targets that sit beneath them,to understand how t

229、hey relate to our business and where we can make the most significant contribution.Although all the goals are important and interconnected,we have identified four that we have the greatest ability to influence.Read more on page 54Read more about our approach to sustainability:www.berkeleygroup.co.uk

230、/sustainability33Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsRead more online:www.berkeleygroup.co.uk/about-berkeley-group/our-vision/customersOur approachOur customers are at the heart of every decision we make.We are always mindful that we are building

231、someones home;the place they will enjoy,relax in and feel secure.This extends beyond customer-facing activities,from the initial purchase of land through to the design of each home and wider development.We aim to understand our customers needs and consistently meet or exceed their expectations,whils

232、t promoting sustainable lifestyles.Customer serviceWe are a customer centric business;buying a home is one of the most significant decisions a person makes and we recognise the need to consistently meet and exceed expectations in providing a professional,efficient and helpful home buying service.We

233、have created a customer first mind-set and empower teams to think and act differently.This is supported by a range of employee training opportunities and the continuation of our Sales Academy to bring talented individuals from other industries into the business.Customer communicationsOur sales teams

234、 have an in-depth knowledge of their development and location to help our customers find the right home to best suit their needs.Each customer receives a tailored information pack relating to their home and has a designated Berkeley representative throughout their home buying journey and beyond.Cust

235、omers are given the opportunity to use our interactive online system,MyHome Plus.This covers a range of features,from selecting choices and options to receiving updates on construction progress and information that enables residents to understand and operate their home.Sustainable livingWe aim to pr

236、omote sustainable living at all stages of the customer journey,including providing home specific information during marketing,purchase and completion.Berkeley is one of a select group of developers whose customers can secure mortgage interest discounts on energy efficient new homes,using Barclays Gr

237、een Home Mortgage.Customer insightKey to the ongoing success of our business is that we listen to,understand and respond to the needs of our customers.We use a range of methods to gain customer insight,including surveys and focus groups.In evaluating our customer experience we benchmark our customer

238、 service performance against both the wider housebuilding sector and others using the Net Promoter Score(NPS).Forward salesOur approach to placemaking and communities,coupled with our reputation for high-quality delivery and customer service,provides Berkeley with the best opportunity to forward sel

239、l our homes where possible.This approach underpins our future financial performance and provides good visibility of cash flow.It is imperative as a risk management tool in a capital intensive cyclical industry.UK and overseas marketsCreating exceptional places requires significant upfront investment

240、 in infrastructure,public realm and landscaping.International investment plays a pivotal role in generating the early security of future cash flows and momentum to commence construction.We have a network of overseas sales offices to support our overseas marketing initiatives.Our UK First Policy requ

241、ires each individual home to be made available in the UK either first or at the same time as launching overseas.Berkeley is proud to support the Mayor of Londons initiative to offer lower-cost new properties exclusively to Londoners and UK-based buyers first.Business Strategy:Our Vision Customers Pr

242、ovide exceptional service to all of our customers andputthem at the heart of our decisionsHolborough Lakes34Berkeley Group2019 Annual ReportGreen Home MortgagePartner organisation working with Barclays to provide discounted rates on the purchase of an energy efficient new home73.5Six-month rolling a

243、verage NPS,compared with a Home Builders Federation(HBF)national survey industry average of 3297.1%Customers would recommend us to a friend,compared with a Home Builders Federation(HBF)national survey industry average of 87%Londoners First Signatory to the Mayor of Londons initiative to offer new bu

244、ild homes up to 350,000 in value to those within London and the UK firstInvestor in Customers Gold 2018 Achieved across allofour operatingcompanies2019 Awards,highlights and performanceVista,Battersea35Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial Statements20182020

245、Headlinecommitment overviewBusiness Strategy:Our Vision Customers continuedIn addition to progressing work under our headline commitments,we have been taking steps to deliver our other 2018-2020 commitments,which are to:Understand and respond to customers emotional journeys Promote the use of MyHome

246、 Plus Market homes in the UK and London first Meet minimum standards for sales and marketing suite set-up Communicate Our Vision to customers Communicate sustainable living to customers Promote digital and sustainable communication Undertake sales and marketing suite exit interviewsNet Promoter Scor

247、eEstablish Berkeley amongst the top performing companies for customer service,as evidenced by the Net Promoter Score.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.What we are

248、looking to achieveWe look to continue to monitor our performance,share good practice,and implement new initiatives to ensure that our customers receive excellent levels of service.What we are looking to achieveThrough engagement with lenders,brokers and other parties we seek to make the case for the

249、 introduction of longer mortgage offer periods to give every purchaser an equal opportunity in the new build market.Progress in 2019 Berkeleys NPS continues to be high at 73.5.Although this is a marginal decrease from our NPS of 73.9 in 2018,our performance continues to compare extremely favourably

250、against the industry average of 32.Key to success is the continued focus on providing timely and accurate responses to customer queries,ensuring that homes are defect free and making customers feel special and valued.The performance of managing agents working on behalf of Berkeley has been identifie

251、d as an increasing challenge,with this being reviewed by the Estates Management Committee.Progress in 2019 Berkeley has met with a number of the UKs leading lending banks and has ongoing encouraging engagement with them.The appetite among lenders is influenced by the traditional housing market and t

252、he systems that are in place to serve this.Other barriers include the regulatory cost and the need to meet the current responsible lending criteria which are determined by the existing paradigm.We believe there is a real opportunity for the banking sector to help qualifying buyers to enter a part of

253、 the housing market not currently available to them.Berkeley is pleased to be one of a select group of developers to have been identified to make available Barclays Green Home Mortgage product,where purchasers of our energy efficient new homes can receive discounts on the interest rate they pay on t

254、heir mortgage.Priorities for 2020 Continue to monitor the NPS for each operating company and discuss performance at the Customer Service Committee to identify areas for improvement.Encourage all employees to use our Lessons Learnt portal,developed to help share knowledge and inform future decisions

255、and processes.Priorities for 2020 Continue dialogue with major lending banks and others to further discuss mortgage offers.Determine if there is any opportunity to trial a new approach.36Berkeley Group2019 Annual ReportOur Vision in actionCase study Innovating the customer experience at South Quay P

256、lazaOur teams look to evolve and improve the way that we engage with potential and existing customers,particularly as new and emerging systems and technologies continue to flourish.At South Quay Plaza,Virtual Reality is being used to change the way in which people purchase their home,enabling potent

257、ial customers to view the future development through a virtual world,even at the earliest stages of construction.This new method allows users to virtually walk through the development and homes to obtain a 360-degree view,improving the quality of the buying experience.The interactive communications

258、continue when a customer purchases their home at South Quay Plaza,receiving monthly newsletters and video blogs from the site providing an overview of construction progress.Case study Understanding customers emotional journeysBerkeley has a diverse range of customers that have the same ultimate aim

259、of owning a home,but with differing needs and prior knowledge of the home buying process.Understanding expectations of customers at various stages of their journey with us is key to ensuring continued high levels of customer satisfaction.To enable us to better understand and respond to customers emo

260、tional journeys,a working group with representatives from our Sales,Marketing,IT and Customer Service teams has been established.The emotional journeys for core customer groups,including first-time buyers and families,have been reviewed to identify potential:Customer actions,including how our custom

261、ers interact with us,such as through the use of our website and visits to our sales and marketing suites and developments Questions,observations and feelings at different stages of a customers journey.We are using this work to predict key milestones and touchpoints to further optimise delivery of ou

262、r world-class customer service.Virtual Reality in use at South Quay Plaza,Docklands37Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsForbury,BlackheathOur approachWe believe that everyone deserves agood home;a home that has been designed and built to a high q

263、uality,that has low environmental impact,and that enables its occupants to live healthily and comfortably now and in the future.Our approach is fundamental to our business;it is demanded of us by our customers and differentiates Berkeley.Design and qualityWe build high quality homes for everyone:fam

264、ilies,first-time buyers,students,and for senior citizens,including those who need care.We do not have any standard property types or formats,and no two Berkeley developments are the same.Instead we work with the best architects to create unique designs that are planned to meet the varied requirement

265、s of all types of homebuyers.Our homes aretenure blind,which means that the affordable homes are designed with the same dedication and attention to detail.Whether we are creating a city penthouse or a country retreat,a modern studio or atraditional family home,there is a relentless pursuit of qualit

266、y in everything we do.Safe and healthy homesWe design a range of features into our homes that benefit residents health and wellbeing,including good levels of daylight,insulation to help regulate temperature and reduce noise,and storage space.To ensure that our homes are comfortable both now and in t

267、he future with expected changes in climate,we use our thermal comfort risk assessment on new sites.Theassessment takes into account factors that can affect overheating,such as location,building type and ventilation strategies,and then highlights site-specific measures and actions to reduce them.Envi

268、ronmental sustainabilityWe consider the environmental impact ofour homes at every stage of the development process.We apply the energy hierarchy in design,by focusing on the building fabric and then incorporating clean and renewable technologies.We seek to ensure that the materials we specify and pr

269、ocure are responsibly sourced,in accordance with our Sustainable Specification and Procurement Policy.We also incorporate arange of features into our homes to help our customers further reduce their impact,from energy efficient light fittings and recycling bins,to low water use fittings and fixtures

270、.Research and innovationAs technology continues to evolve and new products enter the market,we continually undertake research and development,such as investigating smart home options.This enables us to be at the forefront of employing new innovative technologies and the right infrastructure to best

271、serve and future-proof our homes for our customers.At the same time,wecontinue to embed our minimum infrastructure recommendations covering broadband and cabling provision,which enable our customers to benefit from the freedom of being able to plug in technologies as they become available.Business S

272、trategy:Our Vision Homes Deliver high quality homes with low environmental impact where people aspireto liveRead more online:www.berkeleygroup.co.uk/about-berkeley-group/our-vision/homesLeighwood Fields,Cranleigh38Berkeley Group2019 Annual Report93%Completed homes with an Energy Performance Certific

273、ate(EPC)ratingofat least a B94%Completed homes provided with internal recycling facilities72%Completed homes to be supplied with low carbon or renewable energyUK Green Building Council(UKGBC)Gold Leaf MemberPartner of the UKGBCs Advancing Net Zero programmeThe programme aims to help drive the transi

274、tion to a net zero carbon built environment in the UK,with a focus on shaping an industry-led definition for netzero carbon buildings.“At a time when new homes are so desperately needed,itis encouraging to see the Berkeley Group making boldnew sustainability commitments.UKGBC iscalling for all new d

275、evelopment to be net zero carbon in operation by 2030,so we are particularly pleased to see this feature within Our Vision.”Julie Hirigoyen,Chief Executive,UKGBCBest Large DevelopmentFulham ReachHousebuilder Awards 2018Best RefurbishmentWimbledon Hill ParkMerano Residences,St JamesEvening Standard N

276、ew Homes Awards20192019 Awards,highlights and performanceRoyal Institute of British Architects(RIBA)London and National Award Winner 201939Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsBusiness strategy:Our Vision Homes continuedIn addition to progressing w

277、ork under our headline commitments,we have been taking steps to deliver our other 20182020 commitments,whichareto:Undertake post occupancy evaluation to understand the in-use performance of our buildings Enable connected homes Specify sustainable materials in accordance with our Sustainable Specific

278、ation and Procurement Policy Install internal recycling facilities in new homes Install water efficient fittings,so that new homes achieve an internal water use of less than 105 litres per person per day Install energy efficient lighting in new homes Meet Berkeley minimum fire ratings and energy eff

279、iciency standards for domestic appliances,which are over and above the Government guidelinesSafe and healthy homesLaunch a design framework to contribute to the wellbeing of our customers,including safety,air quality and thermal comfort.Net zero carbonProduce a transition plan for each new developme

280、nt which enables the homes to operate at net zero carbon by 2030.What we are looking to achievePeople spend around two thirds of their time in their home,and research shows that sustainable,well-designed homes can lead to better health and wellbeing outcomes for residents.By developing and launching

281、 a design framework,we want to positively contribute to the wellbeing of our customers through the design of our homes.What we are looking to achieveThere remains uncertainty about the right long-term solution that will provide our homes with low carbon heating and energy.Through the development of

282、Low Carbon Transition Plans,we aim to identify clear routes that will enable our homes to operate at net zero carbon by 2030,together with the future-proofing measures that can be incorporated when they are built.Progress in 2019 Initiated development of a healthy home design framework.This will bui

283、ld on our existing approach of applying minimum storage space requirements to homes and using our thermal comfort risk assessment,and will introduce a range of new measures that could be applied to help create a healthier building.Key issues,including noise and air quality,have been identified and b

284、est practice in these areas has been researched.Developed a strategic partnership with the Royal Society for the Prevention of Accidents(RoSPA).Through this partnership,we are supporting the creation of a Safer by Design standard.Progress in 2019 Researched how we can deliver low carbon energy and h

285、eat in new developments,in the context of changing energy policies and uncertainty around the carbon intensity of gas and electricity within the grid.Became a programme partner in the UKGBCs Advancing Net Zero work,to help inform our thinking.Used findings to develop and trial Low Carbon Transition

286、Plans for three of our sites.These help us understand the long-term energy solutions that will enable our customers to live low carbon lifestyles.Through the trials,we have identified key considerations for enabling homes to transition to low carbon,including:energy infrastructure of the site;the av

287、ailable technology;and the cost to our customers.Priorities for 2020 Create a first version of our healthy home design framework,and trial it on new developments.Following this,we intend to launch the framework formally within the business.Continue to support RoSPAs Safer by Designstandard.Prioritie

288、s for 2020 Share the learnings and guidance from trialsites across the business.Develop Low Carbon Transition Plans for all newdevelopments.Continue to support UKGBCs Advancing Net Zero programme.20182020 Headlinecommitment overview40Berkeley Group2019 Annual ReportWe want sustainable living to be s

289、econd nature to our customers,and have been collaborating with E.ON to provide the tools to make it happen.The Future Energy Home collaboration at Kidbrooke Village will help to make living more efficiently more convenient for residents,who will be able to control their home through a simple hub.Cus

290、tomers can choose from a range of whole-house energy options,including:Smart thermostat and radiator valves,enabling room temperatures to be independently programmed and adjusted using a smart scheduling application Smart light switches and plug sockets,allowing residents to amend lighting and appli

291、ance use remotely The opportunity to add a clean tariff bolt-on,based on a customers monthly fuel usage.This upgrade allows E.ON to source 100%renewable electricity in the UK and support worldwide projects contributing to carbon emissions reductionsOur Vision in action E.ON home energy management so

292、ftware,which combines data from all connected electrical devices in the home on a single,accessible tablet-based platform.Equipped with a solar canopy on the roof and solar balustrades around the roof garden,we have also been exploring how the Future Energy Home can allow residents to generate and s

293、tore electricity in a battery,helping to cut bills,to make use of in-built renewable sources to charge electric vehicles,and to relieve pressure on the power grid at times of high demand.These initiatives will give residents practical control over their energy use and the ability to power their own

294、homes.Case study Future Energy Home at Kidbrooke VillageSolar canopy and balustrade as part of the Future Energy Home,Kidbrooke Village41Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsOur approachWe believe in putting people at the heart of placemaking.We wo

295、rk in partnership to create well-designed,beautiful,high quality,safe and sustainable places which will endure as settled,vibrant communities long into the future.They include sustainable infrastructure and amenities,and are designed to be resilient to theeffects of climate change.Location and appra

296、isalOur experienced land teams focus on investing in the right locations where there is strong demand for new homes,good transport links and the scope to create successful new places where people aspire to live.We undertake a rigorous evaluation of the opportunities and risks of each potential acqui

297、sition.This and our strong financial position ensure that we deliver on our offers,fostering trust and underpinning enduring relationships.Building communitiesBy approaching each development in a spirit of partnership,and by working in collaboration with local authorities and communities,we strive t

298、o establish a true sense of community on our developments at every stage of the development process.During design and planning,we engage with the community and wider stakeholders to understand their needs and sensitivities,reflecting these in our designs.We use our toolkit,Creating Successful Places

299、,as a framework for new developments to ensure that the right facilities and mechanisms are implemented to create a fantastic place to live and to realise a shared vision.As a result,no two Berkeley developments are the same.Fostering communitiesAs customers move in,we build relationships to underst

300、and what initiatives and activities we can help facilitate to deliver thriving communities.A key mechanism for achieving this is the production of community plans,which we have on a variety of developments to explore structured ways to build community,foster community governance and encourage placek

301、eeping.These initiatives help build a sense of self-management that continues after Berkeley passes the stewardship of its developments to estate managers and the residents.We think hard about the role of the managing agent to ensure that the right level of community governance,facility and developm

302、ent management skills exist to support the community long after the completion of the development.We remain committed to exploring and implementing excellent estate management practices.Sustainable infrastructureWe want our developments to deliver a positive impact and to enable our customers to liv

303、e sustainable lifestyles.Providing public realm and facilities,such as schools and places to eat and exercise,can be key to this.New developments are designed to achieve a net biodiversity gain,which means there should be more nature afterwards than before we began.We also design our developments wi

304、th infrastructure that enables and promotes sustainable travel,including pedestrian routes,cycle storage and electric vehicle charging points.Truly sustainable places are great places now,but also stand the test of time.We incorporate a number of features into the design of our developments to incre

305、ase resilience to future climate change impacts,such as flooding,overheating and water shortages.These include sustainable drainage systems,rainwater harvesting and green infrastructure such as trees,parks,gardens and living roofs.Business Strategy:Our Vision Places Create strong communities where r

306、esidents can live an enjoyable,sustainablelifeRead more online:www.berkeleygroup.co.uk/about-berkeley-group/our-vision/placesConcert in the Park at Beaufort Park,Barnet42Berkeley Group2019 Annual Report87%Developments under construction regenerating brownfield land47,000Cycle storage spaces being pr

307、ovided on sites under construction3,800Electric car charging points being provided on sites under constructionNet biodiversity gainApproach implemented by Berkeley cited in the Governments consultation on making net gain mandatory for new developments8Additional developments committed to deliver a n

308、et biodiversity gain,with over 25 new sites since May 2017 to have more nature afterwards than beforeUK Project of the YearWoodberry Down,Finsbury ParkBest Garden/Landscaping DesignFitzroy Gate,IsleworthRoyal Institution of Chartered Surveyors(RICS)Awards 2018 Grand FinalFirstImplementation of a cal

309、culated net biodiversity gain at Kidbrooke VillageSunday Times British Homes Awards2018Best PlacemakingKidbrooke Village 2019 Awards,highlights and performanceCIRIA BIG Biodiversity Challenge Awards 2018Client Award for our approach to net biodiversity gain43Berkeley Group 2019 Annual ReportStrategi

310、c ReportCorporate GovernanceFinancial StatementsBusiness Strategy:Our Vision Places continuedCommunity and social valueUnderstand the social value generated by new development and embed a coherent approach to building communities on all our sites.Sustainable transportExplore future transport trends

311、and encourage a modal shift away from an over-reliance on petrol and diesel cars.What we are looking to achieveWe seek to further embed our approach to building communities,in addition to exploring how we quantify and explain the benefits that our developments generate for local communities,the loca

312、l economy,and the environment.What we are looking to achieveThrough understanding our customers needs and expectations,as well as how the transport mix is likely to change over time,we seek to ensure that we put the right infrastructure and services in place to meet customer expectations and promote

313、 sustainable travel.Progress in 2019 Continued to develop an approach to building communities by engaging the local community in the design of new developments and by undertaking a community assessment.Continued to develop community plans on existing developments.Worked with the Social Value Portal

314、to select and trial a set of independently verified,industry-wide indicators and values that can be applied to our developments to measure social impact.Progress in 2019 Reviewed the current utilisation of car parking,cycle parking and electric vehicle spaces on a number of existing developments,and

315、 reviewed travel plans to identify best practice.Researched how the transport mix is likely to change over time,making us well placed to anticipate future travel patterns and design accordingly.Continued to ensure that developments under construction provide future residents with sustainable travel

316、options;over 47,000 cycle storage spaces and over 3,800 electric car charging points are being provided on sites under construction.Priorities for 2020 Ensure that every site has an approach to building communities.Continue to identify key indicators to quantify the social value that we generate.Pri

317、orities for 2020 Develop key recommendations and guidance for each of our developments to follow,based on the research findings obtained in 2019.In addition to progressing work under our headline commitments,we have been taking steps to deliver our other 20182020 commitments,which are to:Achieve net

318、 biodiversity gain on all new developments Develop an approach to integrated water management Explore temporary meanwhile uses during construction works Achieve BREEAM Very Good on all commercial space,student accommodation and senior living housing Install living roofs on all suitable residential a

319、partment roof spaces Review the performance of managing agents and the durability of schemes20182020 Headlinecommitment overview44Berkeley Group2019 Annual ReportCase study Wetlands project at Kidbrooke VillageBerkeley and the London Wildlife Trust have been working together to enhance biodiversity

320、at Kidbrooke Village by transforming the parkland,delivered as part of the early phases of the project,into a wetland area that will attract wildlife and people.The completed landscape enhancements provide Berkeleys first implementation of net biodiversity gain,as calculated using our Biodiversity T

321、oolkit.A series of events have also been undertaken to connect the local community with the green space on their doorstep.The community engagement strategy Wild About Kidbrooke Village has reached over 600 people from the development,local schools,and the surrounding area.The aim is to encourage com

322、munity spirit and pride,ensuring that Kidbrooke Village remains loved and well managed in the long-term.More broadly,Berkeley has been sharing its net biodiversity gain experiences with Natural England and the Greater London Authority to help inform future policy.We are delighted that our approach h

323、as been nationally recognised and shared in the Governments consultation on biodiversity net gain.The Government has since announced that net biodiversity gain will be mandatory for new developments.Berkeley is well placed to meet the requirements,having committed to achieve net biodviversity gain o

324、n new developments since May 2017.Case study Calculating social value at Oval VillageIn 2018,Berkeley started working with the Social Value Portal to develop a way of measuring,capturing and quantifying the contribution that we make to society through our activities on site.This led to the creation

325、of an agreed list of economic,social and environmental outcomes which a development project can be measured against.These range from supporting an apprentice on site,through to hours volunteered with local community organisations,with each having a monetary value.Our Oval Village project was chosen

326、to trial this new approach.Over the next few years,Berkeley will transform the brownfield site into a vibrant new destination,creating areas of new public realm and providing space for creative employment opportunities and community engagement.The project team has already generated social value,even

327、 prior to works starting on site,through apprenticeship events,work experience placements,mentoring and careers talks.Targets have now been set for each of the social value outcomes and progress will be tracked against these for the lifetime of the Oval Village development.Our Vision in actionKidbro

328、oke VillageComputer generated image:Oval Village45Berkeley Group 2019 Annual ReportStrategic ReportCorporate GovernanceFinancial StatementsSnow Hill Wharf,BirminghamOur approachRunning our operations effectively and considerately is fundamental to the long-term success of the business.Each of our de

329、velopments is led by a dedicated project team responsible for all aspects of design and delivery,including the co-ordination of professional teams of consultants and contractors;the discussion and incorporation of innovative ideas;and the environmentally efficient and socially considerate conduct of

330、 our day-to-day activities.We continue to work with our supply chain,to ensure that the necessary skills,quality services and materials are available to help us deliver the pipeline of work.Supply chainEffective communication and engagement with our supply chain is critical to the success of our bus

331、iness and the delivery of high quality developments.We communicate our requirements at the earliest stages of the tender process through our online Supply Chain Portal and are committed to procuring contractors on best overall value,rather than cost alone.We continue to engage regularly throughout e

332、ach project and at wider supplier days and conferences.Our Supply Chain Taskforce holds trade-specific meetings and internal senior sponsors have been allocated for key trades.We recognise that ensuring prompt payment is imperative to our supply chain.Considerate and sustainable activitiesManaging o

333、ur sites and offices with consideration of our workforce,the local community and the environment is imperative.Each of our operating companies is supported by a dedicated sustainability professional who provides advice and training,and completes formal sustainability assessments.By registering each of our sites to the Considerate Constructors Scheme(CCS),our performance is also regularly assessed