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3.5 Supporting our communities

Supporting our communities in which we work and controlling our environmental impacts

Environmental management

As almost all of our employees are office based, our environmental impacts are limited to those associated with normal modern office facilities. However we understand that good environmental management is integral to our business and are committed to minimising the impact of our operations.

Climate change

Our most significant environmental impact is energy consumption and we remain committed to reducing our CO2 emissions where practical. In 2006 we launched our Group Energy Reduction programme, to reduce the amount of electricity used at 18 of our largest UK sites by 12% by the end of 2008. We have exceeded this target, reducing energy use by 18.3%, an emissions reduction of 3,300 tonnes of CO2.

In 2008 our carbon footprint across the Group was 64,611 tonnes of CO2, an increase of 10.4% over the year compared with an 18% growth in Group turnover and a 23% increase in staff numbers. The reduction of emissions achieved by the Group Energy Reduction programme and increased education regarding energy efficiency across the Group ensured that our carbon footprint grew at a slower rate than our business.

We continue to work closely with the Carbon Trust to educate our facilities managers and employees about how they can reduce their own carbon footprints as well as ours.

Our UK operations will be subject to the requirements of the Carbon Reduction Commitment (CRC) Regulations coming into force in April 2010. Our preparation is progressing well and has been facilitated by the work already carried out as part of the Group Energy Reduction programme.

Transport

Our other significant environmental impact is business travel. Emissions from travel have grown in recent years as the Group expands, and the expansion of our operations in India, Scotland and Ireland has meant a particular increase in our air travel emissions.

We try to reduce business travel across the Group through a number of initiatives. Video and teleconferencing is now common place in our offices: 78,000 conference calls were made over the past year, more than double the previous year. As well as reducing our impact on the environment it offers significant financial savings.

Almost all of our company cars (98.4%) run on diesel. We promote the benefits of alternatives to car travel, such as the use of public transport, and have introduced shuttle buses to and from our larger offices. We have also evaluated the Government’s ‘cycle to work’ scheme and we aim to implement it across the Group’s UK offices in 2009.

Waste management and recycling

As part of being a sustainable business we look at the resources we use and how we recycle them or dispose of them. We are committed to a range of initiatives across all areas of our business, primarily focused on reducing and managing our waste to maximise recycling and minimise landfill. Where waste must be disposed of, we ensure that it is handled responsibly and in line with all legislation.

A number of Group-wide schemes enable employees to recycle paper, toner cartridges, mobile phones, and redundant IT and electrical equipment. We also aim to use our influence with clients to help them reduce their environmental impact. In 2008 we doubled our virtualised server capacity, offering clients cheaper data storage with lower carbon intensity.

As a significant purchaser, we encourage our suppliers to provide us with better-value environmentally responsible products. We have further developed our relationship with Office Depot, and 18% of our total spend is now on environmentally preferable products. We are also working with Office Depot on an initiative to replace corrugated packaging with reusable plastic tote boxes across all deliveries to the Group.

Local community impact

Our business places us at the heart of the communities we serve. We have a positive impact on these communities through the improvement in services we deliver for clients, the new jobs we create and our community investment programme. We are committed to working with our local communities, managing any negative impacts of our business operations and maximising the benefits.

The services we provide for our clients have a direct impact on local communities. We work with our clients to ensure the services we deliver on their behalf are efficient, flexible and inclusive. By reducing local authorities’ administration costs we allow more funding to be directed to essential frontline services.

Community investment

In addition to the benefits our business and services bring, we also donate both time and money to local community initiatives. Our community investment programme aims to tackle social exclusion of all kinds. It is applied at 2 levels; through a central programme at Group level and through the individual businesses at a local level.

The programme has now been extended to include our operations in India. Employees there have chosen to focus on projects that improve the education and health of the communities local to our Indian operations.

We encourage our employees to engage with their local communities. Following the success of the pilot volunteering projects that we ran with Business in the Community (BITC) in 2008, we are now rolling out our employee volunteering scheme across the whole Group. With BITC’s help we select projects and causes where our help can make the most difference. Our businesses are also free to support appropriate local initiatives where we are approached directly by the local community.

Charitable support

In January 2008, we began our 2 year partnership with Macmillan Cancer Support. The charity was chosen by a ballot of our employees from a shortlist of charities they nominated. To date we have raised £360,000 for the charity towards our target of raising £1m over 2 years.

Employee fundraising events throughout the year included Capita Challenge and Charity Week. Capita Challenge, which has been running since 2004, is an adventure race day where teams from our various sites compete in mental and physical challenges whilst raising money. In 2008, 82 teams took part, including some from our clients and suppliers, and the event raised £67,000 for Macmillan. Charity Week, which involves fundraising activities at various business sites, has also been running since 2004. Charity Week 2008 was our most successful yet, raising a further £67,000. We also generated an additional £103,000 for Macmillan by sponsoring the charity’s winter ball.

Over 1,600 employees choose to give to charity through our payroll-giving scheme, donating just under £120,000 during 2008. We received the Silver payroll giving quality mark, recognising that over 5% of our employees donate to charity through this scheme. We have also introduced an additional fund to help support some of our clients’ charities, working in partnership with them on their charitable programmes.

Full details of our CR priorities, initiatives and progress are set out on our corporate website at www.capita.co.uk/corporate-responsibility, where you can create your own online report covering the topics you specify.

CR priorities

Aim Year end 2008 Year end 2007

Environment

  Continue to measure and assess our carbon footprint (tonnes CO2), to be measured annually.CO2 emissions rose 10.4% against increases in Group turnover of 18%, and staff numbers of 23%   64,611   58,523
  Raise awareness of environmental issues and Group initiatives across the business   Established environmental section on employee intranet   Ongoing
  Undertake environmental site audits twice a year   Audits completed   Audits completed
  Achieve 12% reduction in electricity used at our 18 largest sites by 2008   -18.3%   -8%
  Continue switching fleet vehicles to diesel engines   98.4%   95%
  Achieve further ISO14001 accreditations at our higher impact sites   47   37
    Further promote BT conference call facility   78,000
conference calls
  34,463
conference calls

Communities

  Corporate donations   £0.6m   £0.5m
  Raise meaningful sums for our corporate charities: In 2008 we set a target Raised of £1 mover 2 years for our new charity partner, Macmillan Cancer Support   £360k   –1
    Maximise the fundraising potential of our Group-wide Charity Week   Raised £67k   Raised £48k

Health and safety

  Ensure we provide safe and productiveworking environments for all our employees (accident frequency rate per 1,000 employees (RIDDOR))   1.57   2.05
    Undertake health and safety site audits twice a year   Audits completed   Audits completed

Senior management retention

  Attract and retain the appropriate level of senior management to drive the strategic direction of the Group (salaries exceeding £90k p.a.)   88%   89%

Overall employee retention

  Attract and retain the right people to deliver Group strategy, maintaining   82%   82%

Employees by location

  Have at least 10%of our workforce based in India by end 2009   8.9%   4.5%

Diversity of people

  Reflect the communities in which we work:    
  Male/female split   52% male
48% female
  51% male
49% female
  Male/female split for management (salaries £50k – 89k p.a.)   74% male
26% female
  81% male
19% female
  Male/female split for management (salaries exceeding £90k p.a.)   88% male
12% female
  88% male
12% female
    Ethnic diversity (employees from ethnic minority groups)   15.5%3   8%

Part-time working

  Provide flexible working hours while ensuring maximum flexibility in Group resources. Percentage of part-time employees of total work force   15.5%   17%

Creating successful supplier relationships

  Annually audit all tier 1 suppliers against Capita’s standards of business   100%   50%
  Consistently increase the number of supplier audits across all our Group suppliers. 40% audited against a 23% increase in suppliers   40%
audited
  41%
audited

1 Exceeded our target of raising £1.5m over the previous 3 years for our 2005-2007 corporate charities NSPCC and The Prince’s Trust.

2 CIPD 2007 and 2008.

3 Information now held centrally on SAP system: only 60% of employees chose to provide this information.