Corporate Social Responsibility

Annual Report 2014

Corporate SocialResponsibilityAnnual Report 2015

The fundamental objective in 2015 has been to build on the strong foundations we have already established in terms of sustainable performance, supplier collaboration and local community engagement.

This desire to advance our corporate social responsibility has been underpinned by our new fully Integrated Management System (with the attainment of ISO 50001 adding to our existing ISO 14001, OHSAS 18001 and ISO 9001 certification). We fully advocate the introduction of a new Government Living Wage which validates our stance as a recognised Service Provider working to the set parameters as outlined by the Living Wage Foundation.

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 2016, 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 April 2016

Group ManagingDirector’s Statement

Complete Integrated Management System (ISO 14001, ISO 9001, ISO 50001 and OHSAS 18001)

Living Wage Foundation

Reduction in Company Energy Consumption

of Fleet now low emission (65% in 2014)

Environmentally Friendly Products used

85% 35%

6.2%

30%75%increase in teleconferencing (compared to 2013)

New Environmental and Sustainability Training Modules

Reduced Vehicle Emissions (‘Blue Motion’)

Greater Recycling Rates / Recycling Promotions

Local Site-based Sustainability Improvement Programmes

UK-wide Environmental Risk Assessments

increase in ‘Back to Work’ employment via our partnership with Ingeus

Aqueous Ozone (leading environmentally friendly cleaning chemical solution)

New Sustainable Procurement Procedures (BS 8903)

Churchill is proud of our achievements in 2015, which include:

MajorAchievements

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

Combination of travel information with office energy use data to establish an operational Carbon Management and Improvement Programme

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

Introduction of ‘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 2015

2015 Office Carbon Performance Category Emissions Notes

Electricity Use

Gas use

112.32 tonnes

2.79 tonnes

Contract specific emissions are calculated and reported annually

Only one office has a gas supply

Contract specific emissions are reported annually

SustainableTargets 2016

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 80%

Installation of LED lighting throughout our own UK office portfolio

Environmentally friendly product use to exceed 90%

Introduction of electric vehicles into selective areas of our business.

Additional 20% of company meetings to be held via teleconferencing

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

Local CommunityEngagement/Charity Support

Eco Weeks within Shopping Centres

• Community Engagement / ‘Education Stations’

• Local Council Involvement

• Local Media Participation

• Promotion Material

• Sustainable Innovations Unveiled

• Huge Increase in Footfall

• Charitable Donations

Eco Schools Programme

• ‘Golden Broom’ Award

• Spotlight on Recycling

Charitable Events / Projects

• Cancer Research UK

• Weston Hospicecare

• CLIC Sargent

• Keech Hospice Care

• Wooden Spoon

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

Local EmploymentOpportunities

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

Ingeus ‘Back to Work’ Initiative

Churchill is delighted to continue our employment partnership with local employment services company, Ingeus, which has led to a further 32 people returning to work in 2015 (28 in 2014).

Our determination to employ local people is the focus of our partnership with Ingeus, which operates the government’s Work Programme throughout many regions. This flagship programme is aimed at people who have been unemployed for more than a year, and supports them with a range of job-seeking services including writing an effective CV, learning how to get the most from interviews and searching for suitable jobs.

Churchill’s partnership with Ingeus is built on transparency, collaboration and a shared set of values. We work together to incorporate an ethical approach which includes implementing local and socially responsible initiatives within our delivery model. Our commitment to train and develop team members, including those identified by Ingeus, ensures we continue our joint strategic aim to plant a legacy within our contracts that directly supports the local economy and local employment.

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 2016, 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 recent 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

Joel Briggs, Group Managing Director is proud to align Churchill with the Living Wage Foundation: “We share the ethos that the Living Wage is a partnership between civil society and business. In the last ten years, the Living Wage campaign has lifted over 45,000 people out of poverty – a remarkable and commendable statistic.

From our perspective, paying the Living Wage is good for business, good for the individual and good for society. The net effect is increased productivity, reduced absenteeism, better recruitment / retention, improved quality of work, and increased ethical awareness.”