Corporate Social Responsibility

Annual Report 2014

Corporate SocialResponsibilityAnnual Report 2018

The continued objective in 2018 has been to build on the strong foundations we have already established in terms of sustainable performance, supplier collaboration and local community engagement.

Our corporate social responsibility continues to be underpinned by both our ethical and sustainable philosophies as well as our fully integrated Management Systems (ISO 9001, ISO 14001, OHSAS 18001 and ISO 50001). We continue to promote the Living Wage / London Living Wage as outlined by the Living Wage Foundation, and we have significantly increased apprenticeship roles throughout the organisation in line with the Apprenticeship Levy 2017.

More than ever, we continue to take sustainability seriously. Indeed, to Churchill, sustainability is simply the right way to do business. We believe that a structured and coordinated sustainability strategy that considers economic, environmental and social requirements is crucial to maintaining and growing our successful business. From the outset, Churchill’s success has been based on these principles. Importantly we work to ensure that sustainability is embedded in everything we do and to achieve this all staff must be part of this process.

When it comes to sustainability Churchill:

• Has introduced programmes to ensure our business, employees and supply partners are competent, when it comes to sustainability matters;

• Is committed to ensure we meet and exceed both legal and ethical requirements, including those specified by our clients; and importantly,

• Is driven to continually improve sustainability performance through the development of controls and improvement programmes.

Moving into 2019, we believe that continued progression along our planned sustainable journey will create a business that benefits financially from its approach but also contributes positively to transformation, not just within our own business, but across the service solutions industry as a whole.

Joel BriggsGroup Managing Director February 2019

Group ManagingDirector’s Statement

environmental incidents Living Wage

Foundation

Reduction in Company Energy

Consumption

of Fleet now low emission (65% in 2014)

Environmentally Friendly Products used

90% 60%

7.3%

80%

ZERO

of company meetings are held via

teleconferencing

New Environmental and Sustainability Training Modules

Increase in site-based

Electric Vehicles

Greater Recycling Rates / Recycling

Promotions

Local Site-based Sustainability Improvement Programmes

UK-wide Environmental Risk

Assessments

Installation of LED lighting throughout our office portfolio

Purex – leading chemical free

cleaning solution

New Sustainable Procurement

Procedures (BS 8903)

Churchill is proud of our achievements in 2018, which include:

MajorAchievements

Continued methodology to collect business and commuter mileage for the development of a carbon footprint for travel.

Ongoing Carbon Management and Improvement Programme via combination of travel information with office energy use data

Ongoing evaluation of innovative cleaning approaches to eliminate materials and chemical usage where possible

Further promote ‘flow cleaning’ in our own offices (where lights are only switched on in the specific areas they are currently cleaning)

Remove private fuel benefits from our employees to directly reduce mileage per vehicle

‘Ride to Work’ scheme extended to all multi-site contracts

Continue promoting benefits of the Living Wage Foundation

SustainableObjectives 2018

2018 Office Carbon Performance

Category Emissions Notes

Electricity Use

Gas use

107.46 tonnes

2.62 tonnes

Contract specific emissions are calculated and reported annually

Only one office has a gas supply

Contract specific emissions are reported annually

SustainableTargets 2019

The further development of our BS:8903 based sustainable procurement programme leading to the introduction of a Sustainable Procurement Policy and Toolkit

Further 5 to 10% reduction in company energy consumption

Life-Cycle Carbon Foot-printing - engagement with suppliers to understand sustainability credentials of products used, to collect embodied carbon information and, over time to work on the development of a comprehensive business-wide (cradle-to-cradle) Carbon Footprint assessment.

Increase low emission vehicles within fleet to above 85%

Further installation of LED lighting throughout our own UK office portfolio

Environmentally friendly product use to exceed 90%

Additional electric vehicles on selective operational areas of our business

70% of company meetings to be held via teleconferencing

Reduce carbon emissions from business travel by 10%

Environmental Risk Assessments to be completed at all sites within three months of the commencement date of the contract

Local CommunityEngagement/Charity Support

• We announced our pledge signing with ‘Time to Change’ alongside multiple internal programmes to raise awareness on Mental Health

• Collaboration with University of Bolton to raise funds for Marie Curie by selling daffodil pins at our catering till points

• Member of our Bradford College Cleaning Team took part in the Tour de Yorkshire ‘BIKE-A-THON’ in April (304.4 miles) raising money for The Alzheimer’s Society

• Supported BBC’s Children In Need with UK-wide events, including volunteers from Head Office (below with Pudsey) manning the phones at the Bourne Leisure call centre - one of our long-standing clients - taking pledge calls from members of the public throughout the evening

Local EmploymentOpportunities

Supporting Local Labour and Local SMEs

Churchill is passionate about supporting local labour and local SMEs to ensure that the community has the greatest opportunity to benefit from the employment generated from any new contract won. The resultant benefits are evident and far reaching and include:

• Improved travel-to-work patterns improving sustainability

• Local employment, capacity building and training

• Connection to and empathy with local communities

The strategic aim is to plant a legacy within our contracts that directly help local goods, services and resources to ultimately support the local economy and local employment.

This philosophy is a clear win-win for all parties:

• Churchill have trusted local delivery partners encompassing local knowledge and capability to work on other Churchill contracts in the area

• The local SMEs receive valuable processes, procedures, advice, best practice and growth opportunities

• Local citizens receive an improved service

• Young people enjoy greater employment opportunities as the companies grow.

• Finally, a resourceful local supply chain will naturally deliver improved sustainability and cost efficiencies

Working in Collaboration with Local SMEs

Churchill have developed a full methodology or engaging, developing and partnering with local SMEs including:

• Supplier Exhibitions

• Competitive Tendering

• Prospective Supply Chain Partner Assistance

• Supply Chain Partner Development

• Apprentices.

• Workshops

Social – Every action we take will be for the betterment of local communities. We will focus on local employment (including local SMEs where possible). We will continually seek to implement local community initiatives / events in partnership with clients and other local stakeholders / community groups

Economic – We will directly contribute to and promote local opportunities and employment. We create skills and training opportunities. We initiate opportunities specifically targeting the long-term unemployed or younger adults described as NEETs (those not in education, employment or training). We provide support for individuals or groups facing greater social and/or economic barriers. We offer curriculum support to local schools / colleges by sharing knowledge and expertise

Local EmploymentOpportunities

Apprenticeship Opportunities at Churchill

Churchill is committed to providing apprenticeships throughout our organisation to develop young local individuals with on-the-job training leading to nationally recognised qualifications within our industry. Success lies with the creation of collaborations and partnerships with our existing clients and yields the greatest benefits to the youngest in the local community.

We have significantly increased apprenticeship roles throughout the organisation in line with the Apprenticeship Levy 2017 which mandates 0.5% of total payroll cost to be invested into apprenticeship opportunities.

We currently have over 30 apprentices at different stages across a variety of apprenticeships. Examples include business administration and cleaning and environmental services. In 2019, we will look to at least double the number of apprentices in a number of different sectors, including cleaning, catering and business administration.

Additionally, within the next year we are working towards becoming an accredited centre for training.

Churchill’s Apprenticeship Schemes

Churchill has developed an Apprenticeship programme with some of our leading clients. Our ‘aspire succeed™’ Apprenticeship scheme has a strategic aim to plant a legacy within our contracts that directly help youngsters and support the local economy and local employment.

Churchill is committed to providing apprenticeships throughout our organisation to develop young local individuals with on-the-job training leading to nationally recognised qualifications within our industry.

Success lies with the creation of collaborations and partnerships with our existing clients and yields the greatest benefits to the youngest in the local community.

Our apprenticeship scheme model involves:

• A knowledge based element

• A competence based element

• Transferable or ‘key skills’

• Module on employment rights/responsibilities

• Varying apprentice scheme periods between one and two years depending on prior skills levels of the apprentice, the qualification

Collaboration withSupply Chain Partners

Sustainable Supply Chain Management

We have recognised the benefits that a sustainable procurement strategy can deliver to Churchill and the wider industry. As such we have introduced the principles of BS 8903 as a guidance document. In 2019, we will formalise our Sustainability Procurement Policy and Toolkit to ensure sustainability is incorporated into our procurement decision making process. The policy will form part of our Integrated Management System.

Critically our approach will consider:

• What is needed?

• What are we really asking of our suppliers?

• How should we design and then test our approach?

We will continue to report on performance on sustainable procurement on an annual basis.

Our key aims will be to:

• Minimise demand for resources (e.g. by only purchasing volumes of materials that are needed)

• Minimising the negative impacts of goods and services purchased

• Ensuring fair and ethical prices are paid

• Purchasing locally where possible and offering opportunities to good quality SMEs (something we already do well)

The Living Wage

We are proud to continue being a Recognised Service Provider working to the parameters as set by the Living Wage Foundation; a cause which has been validated by the Government’s decision to introduce a new Living Wage (April 2016).

Our recognition meets the standards set by Citizens UK and the Centre for Civil Society for good practice. In essence, we fully comply with the UK Living Wage Service Provider Recognition Programme Agreement.

The Living Wage was launched by Citizens UK in 2001. The principle behind the Living Wage is simple and powerful: that work should bring dignity and should enable families to enjoy the essentials of life.

The Living Wage is calculated according to the basic cost of living in the UK and expressed as an hourly wage rate. There are two different wage rates. These are independently set and updated annually. The rate for London is calculated by the Greater London Authority (“GLA”) and the rate for outside London is calculated by the Centre for Research in Social Policy (“CRSP”).

Our commitment includes:

• All employees, other than those who are engaged in delivering services under a contract for a specific client, are paid at or above the Living Wage rate

• We’ll increase the amount of Living Wage paid to such employees by the amount of any increase to the Living Wage within six months of such an announcement

• A separately costed Living Wage compliant bid will be submitted within all bids unless a client expressly requests that we do not do so

Churchill’s CommitmentOur commitment with The Living Wage Foundation includes, as a minimum:

All employees, other than those who are engaged in delivering services under a contract for a specific client, are paid at or above the Living/London Living Wage rate

We’ll increase the amount of LW/LLW paid to such employees by the amount of any increase to the LW/LLW within six months of such an announcement

A separately costed LW/LLW compliant bid will be submitted within all bids unless a client expressly requests that we do not do so