Climate change and our impacts

Our goal is to bring low-carbon solutions to our clients and suppliers and to be as lean and carbon-efficient as possible in our own operations.

Cutting carbon is essential to achieving long-term global economic, social, and environmental sustainability for our business and society. We have an opportunity to innovate in the services and products we offer to achieve a competitive edge, reduce costs, reduce the demand on energy and deliver greater operational efficiency.

Alongside other industry leaders, we committed to cut 24 million tonnes of carbon from infrastructure contracts by 2050 as a result of the UK Infrastructure Carbon Review. We made good progress against this target in 2014.

In British Columbia, Canada, our Energy Conservation Assistance Programme (ECAP) has helped 8,000 low-income families through free energy advice, saving them $400,000 (£219,000). We have also won another ECAP contract to deliver energy conservation to three First Nations communities near Penticton, BC.

Climate Performance A List

We achieved a carbon leadership position in the top echelon of the global Climate Performance Leadership Index, recognising our commitment to reduce carbon emissions and mitigate the business risks of climate change, as well as being open and transparent in our reporting.

We were one of only 187 companies that were awarded a climate performance A-grade in this global ranking of 2,000 publicly listed companies independently assessed against CDP’s widely respected scoring methodology. The Index provides a tool for nearly 800 institutional investors and stakeholders to evaluate and track corporate efforts to mitigate climate change.

Carillion featured in 2013 as one of the leading UK companies for climate change transparency in the FTSE 350 Climate Disclosure Leadership Index – scoring 92A – and improved that further in 2014 to achieve a near-perfect 99A at the head of the Industrials sector for performance and disclosure of climate-related information.

Global greenhouse gas emissions continue to rise and we face steep financial risk if we do not mitigate them. The need for data on corporate climate change impacts and strategies to reduce them has never been greater. For this reason we congratulate those businesses that have achieved a position on CDP’s Climate Disclosure Leadership Index and the A List. These companies are responding to the ever-growing demand for environmental accountability and should inspire others to follow suit.”

Paul Simpson, Chief Executive Officer of CDP

Carillion’s inclusion for the second year running in the top echelons of both the UK and the global Climate Performance and Disclosure Leadership Indices demonstrates the vital importance that we place on reducing and managing our carbon emissions. This backs up our Sustainability Strategy to enable low-carbon economies through work with clients, supplier partners and our own people.”

David Picton, Carillion’s Chief Sustainability Officer

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Rethinking carbon neutrality

We are focused on reducing our carbon emissions to their lowest possible levels, and have so far achieved a 17% reduction normalised by revenue since 2011. In 2014, we received further recognition for our carbon management strategy by topping three of the Carbon Disclosure Project’s leadership indices for performance, disclosure and supply chain.

Our materiality review in 2014 showed that stakeholders remain positive about our original commitment to work towards carbon neutrality, so we need to be clear now about how best to achieve this for a balanced benefit. We need to take advice, and work that through our sustainability governance to understand how this investment aligns to our ambition to lead the way in sustainability, and how best to include a clear link to our international operations and to the six positive outcomes of our 2020 strategy.

We remain committed to working towards carbon neutrality as a long-term goal, and if we are to invest in offsets once we have minimised our own carbon footprint, these must resonate with our stakeholders. In 2015, we will develop and implement our plan for carbon reduction and neutrality across the remainder of our Sustainability 2020 journey, such as green energy production and consumption; addressing the embodied carbon of our projects; and helping customers reduce their carbon (see our EcoPods).

Carbon footprint (normalised by £m turnover)

% change from 2011

Total Carillion Group -17%

UK -34%

MENA -40%

Canada1 +112%

  1. The sharp increase in carbon emissions between 2012 and 2013 was due to improved data capturing and reporting processes.
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Carbon innovation

We are committed to drive innovation in carbon management, including:

  • working with other organisations, like the Department for Transport, to establish the effectiveness of various systems for improving vehicle fuel efficiency;
  • looking into the fuel profile of our operations to direct fuel reduction activities;
  • assessing renewable energy use on major projects;
  • membership of the Highways Term Maintenance Association Environment Group and a member of the Rail Industry Environment Forum; and
  • energy Champions in our Middle East operation for each project.

In 2014, we have maintained our focus on reducing fuel consumption. Over 70% of our carbon footprint is made up of fuel, mainly from commercial vehicles, company cars and plant equipment.

We continue to measure and track fuel internally in order to reduce our overall footprint and have achieved 28% reduction in fuel across the Group (2013: 3%) against a 2011 baseline normalised by turnover.

We launched an internal campaign, ‘Fuelling Profit’, to understand how we can reduce fuel use through changes to our equipment, behaviour, contract design and operations, and through regular communications campaigns. In 2015, we will continue to implement initiatives across these key areas.

In Canada, 98% of our carbon footprint is produced by our road business in Ontario and Alberta, delivering vital services such as clearing heavy snow to keep communities mobile. Here, the focus is on driver training for safe, fuel-efficient operations.

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Carbon reduction in our contracts

In 2013, we implemented bespoke Carbon Reduction Plans (CRP) for contracts, linked to the operating segment’s overall sustainability plan. Currently, 96% of our contracts are using the CRP and in 2015 we aim to achieve 100%. The CRP helps projects identify carbon-intense activities and provides action plans for reduction initiatives.

Carillion Construction UK has identified a number of projects to start trialling an embodied carbon tool produced by the Environment Agency to measure the complete impact of our contracts from design through to construction and operation.

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Travelling light at Heathrow, Toronto and Brighton

Cheap, sustainable electricity is the goal for many client buildings, but at Heathrow’s Terminal 3, a new feature is leading the way. Carillion installed 51 foot-pressure pads, with each pad generating enough charge to light a one-metre-long strip of LED lights for just over two seconds. As an interactive feature in the airport, this has been popular both for the potential energy savings and the fun it can generate, especially over the summer holidays.

With the costs of electricity rising and more demands for companies to be sustainable, the installation and the possibilities around it have been well received by Heathrow, and we are hoping to see more units installed through the airport in the future!”

Paul Whitely, Operations Manager at Heathrow Terminal 3

In Canada, the Toronto subway terminus has replaced original incandescent lighting bulbs with long-life fluorescent lamps, which are more robust and use significantly less power. Approximately 1,800 are saving seven tonnes of CO2e per month, the equivalent of CA$4,500 (£2,300).

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Carillion UK is accredited to the Certified Emissions Measurement and Reduction Scheme for measured, managed and verified carbon emissions.

Carbon reduction commitment

For our UK Carbon Reduction Commitment (CRC) reporting, in compliance year 2013/14, our emissions increased by 4% on the previous year. This is the result of the expansion in UK operations, including acquisitions in 2013/14. In the absence of this expansion, Carillion’s net CRC emissions for 2013/14 would have been reduced by more than 5%.

Reviving water power

A Carillion development in Durham has been awarded a BREEAM ‘excellent’ rating largely due to using 2,000-year-old technology to generate renewable electricity. An Archimedes’ screw water turbine will supply 75% of the electricity needs to a new riverside office.

The screw design incorporates a ‘fish pass’ allowing fish and elvers to travel upstream. It also counts numbers and species of fish as they pass through. The £26 million Freeman’s Reach development will be home to the National Savings & Investments bank and a new branch of the Passport Office.

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Finding innovative ways to meet the 2050 targets set by the UK Infrastructure Carbon Review will need us to think and act differently, working closely with clients and suppliers to develop new materials, techniques and better long-term resilience.”

Adam Green, Managing Director of Carillion Construction UK

Off-site construction saves CO2

Caledonian Building Systems in Nottinghamshire won a contract from Carillion worth £42 million to construct eight new accommodation blocks for The Royal School of Military Engineering, Minley.

A large number of vehicles commute to the site but thanks to off-site construction, deliveries were reduced by 82% during the monitoring period, contributing to a reduction of CO2 and saving approximately 11 tonnes of CO2 from reduced transportation.

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Carillion plc, Company No. 3782379. Registered Office: Carillion House, 84 Salop Street, Wolverhampton WV3 0SR. Place of Registration: England and Wales

Copyright 2015 Carillion plc