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© Copyright QinetiQ Group plc 2010

QinetiQ Group plc Proprietary

QinetiQ – Sustainable business

Sustainable Business Network: Building the Business Case for Sustainability

11 November 2010

Dr Sam Healy and Christine D’Silva

QinetiQ Group Head of Corporate Responsibility

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Why is sustainability important to QinetiQ?

Drivers/benefits

• Legislation/regulations

• Reputation with stakeholders

• Reduced risk

• Reduced operating costs

• Engaged employees

• Business opportunities

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MOD Sustainable Procurement Charter

• MOD aim to become a national leader in sustainable procurement … we agree to define SP as a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits to society and the economy, whilst minimising damage to the environment.

• The MOD invited key suppliers to sign a Sustainable Procurement Charter in 2008

• Supplier Self Assessment through the Flexible Framework

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Benchmarking

Criteria

People Best Companies to Work For (UK)

Investors in People (IIP)

ROSPA H&S Awards

Environment Carbon Trust Standard

Carbon Disclosure Project (CDP)

ISO14001

Conservation awards

Community STEMNET awards

All categories BITC Index

Ipsos-Mori survey 2009

Investor feedback

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CR Framework at QinetiQ

Themes Mission Focus areas

Market place To be a responsible and sustainable business

Responsible purchasing

Business ethics

Sustainable solutions

Environment To be an excellent environmental steward

Environmental management ISO 14001

Energy efficiency

Waste management

Conservation

Our People To attract, engage and develop great people

Employee safety and wellbeing

Learning and development

Employee engagement

Equality/diversity

Community To have a positive impact on the community

STEM Outreach

Charitable giving

Community engagement

Science for Society

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Programmes - Carbon Management

QinetiQ’s Carbon Management Group

• Expertise from Estates, CR, Environment/Sustainability Manager, Business leads

• Oversee the five year management plan for energy and carbon emissions

Programmes

• CRCEES

• Carbon Footprinting

• Carbon Trust Standard

• Promoting energy efficiency and awareness across the company

• Establishing annual carbon reduction targets and monitoring progress

• Energy champion network

QinetiQ has gained certification under the Carbon Trust Standard which is awarded to organisations that measure, manage and reduce their carbon footprint.

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Programmes - Reuse/Recycling

Waste Management

• Recycling up from 18% in 2006 to 66% in 2010 (UK major sites)

Asset disposal scheme

• Database of all equipment that can potentially be reused elsewhere

• Anything from a stapler to a Hercules aircraft

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Programmes - Conservation

Excellent Environmental Stewardship

• We manage a range of conservation sites – from St Kida to Foulness Island

Eelmoor Marsh – SSSI

• Located at Head office in Farnborough

• 79 hectare area of wet and dry heath, herb-rich grassland, bog and mire, scrub and secondary woodland

• Insectivorous plants; diverse invertebrate fauna, birds, snakes, lizards

• Classified as ‘Favourable’ status

• Przewalski’s Horses project

• Sanctuary Conservation Award for work in the Hebrides

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Programmes - Sustainable Procurement

Working with Suppliers

• Sound business case

• Minimise pollution and adverse impacts on the environment

• Minimise adverse impacts on society

• Drive efficiency and reduce consumption

• Stimulate and support innovation

• Promote transparency of practice and decision making

• Promote the adoption of minimum labour standards and worker rights

• Promote equitable working relationships throughout the supply chain

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Programmes - Community Engagement

Making a positive contribution in our community

• Education Outreach (STEM and Young Enterprise)

• Conservation programmes – e.g. Avon Project, bustards

• Beach safety talks

• Network of ~150 Charity Champions across the UK

• Science for Society – UXO in Laos; Ski seat for disabled servicemen

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Embedding sustainability - Leadership

QinetiQ Board

QinetiQ Executive Team

N AmericaUK

CR Committee:

chaired by CEO

CR Taskforce:

Lead by Group CR Manager

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Embedding sustainability - Employee engagement

• Sustainability session at Corporate Induction

• CR e-learning module

• Intranet pages – regular stories on home page

• Leadership Team briefs

• Awareness campaigns

− Environment, charity, schools

• Employee Networks (e.g. Energy champions)

Celebrating the success of those people who are making

a difference

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The power to make a

difference

Environment Week 13-17 SeptemberFind out how and why we are reducing QinetiQ’s carbon footprint, who is making a difference and what you can do to get involved.

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Embedding sustainability - Employee engagement

• Umbrella activity driving continuous improvement, employee engagement and operational performance within QinetiQ.

• A tracked and measured productivity programme by which all employees are able to generate and voice their ideas

• Ideas converted quickly into projects that deliver concrete business benefits.

• Thousands of employee ideas feeding into sustainable solutions – energy/estates/waste

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Why culture?

Culture is at the heart of engaging employees and changing behaviours at work

Culture is only of interest to business if it can be proven to affect business outcomes, financial or other

• e.g. Kotter and Heskett (1992) found culture was a predictor of outcomes such as revenue and growth

• e.g. A Department for Transport study (2004) has shown the link between organisational safety culture, driver attitudes, and accidents

Culture change is at the foundation of carbon and energy reduction

Engaging employees and stakeholders to the sustainability agenda, in terms they can understand, represents the quickest and easiest way to realising carbon efficiencies

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Carbon culture

In the 1970s if you went on to a factory floor in a hard hat and high-visibility jacket you’d have been laughed at. Now you can’t go into any workplace without the

proper health and safety equipment …

... Yet you can still turn on every light and have the heating on and the windows open and no one will

challenge you

The culture across all companies will change soon & they will be talking about theirgood record on carbon in the same way they talk about Health & Safety & CSR now

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Carbon culture – key aspects of influence

Organisation’s commitment

Learning and communication

Employee involvement

Procedures and practices

• Management demonstration• Incentives and rewards• Enforcement and sanctions• Support and resources

• Training and awareness• Measurement and feedback• Organisational direction

• Empowerment• Personal responsibility• Social norms and peer pressure

• Goal conflicts• Technology and infrastructure• Behaviours

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Carbon culture survey aims

Bespoke tool to measure carbon culture

The tool enables organisations to effectively target interventions e.g. employee perceptions, managerial support, policy, procedures and supporting systems

Benchmarking against other organisations

Easy to administer and complete

Easy interpretation of results and the rapid identification of risk areas

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Carbon Culture Summary Report

Critical questions

65%

25%

10%

60%

40%

Important Information:

Overview:

Carbon culture components and factors of influence

Organisation’s commitment

Organisation's Commitment

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60%

80%

100%

Management demonstration S upport and resourcing Rewards and enforcement


0%

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Training and awareness Measurements and feedback Organisational direction


0%

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80%

100%

Empowerment P ersonal responsibility Social norms and peer pressure


0%

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G oal conflicts Technology and infrastructure Behaviours




Consultant comments and recommendations:

Carbon culture – reporting

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Carbon culture – interventions

Part of the underpinning philosophy of our delivery model is determining the nature of the organisation, its values & approach

We have identified key intervention aspects that can produce behaviouralchange and assist organisations on their journey to reduce carbon outputs

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Contact details

Christine D’Silva MSc C.Psychol

Consultant – Operational Readiness and Training

QinetiQ

Cody Technology Park

Ively Road

Farnborough

Hampshire

GU14 0LX

Telephone: 01252 393377

E-mail: [email protected]

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