Wates - Platinum Plus case study: The Business Benefits
A family owned construction services business that is committed to making a lasting difference in the communities it serves, the Wates Group has a turnover of almost £1bn and has recorded a sixth year of consecutive operating profit. With 2,000+ staff, Wates is primarily focused on the UK but has recently created an International Development business focused on the Middle East.
“Above all, it’s about people”
“Wates is driven by our deeply-held values of respect for people, communities and the environment. Respect demands a commitment and this is what we make day-in, day-out to our customers, to our supply chain partners, to our people and to our communities. Our commitment is to deliver excellence, on time, on budget, safely, every time and to make a sustainable difference to the people and communities they touch.”
Paul Drechsler, Chairman and Chief Executive
Reshaping Tomorrow: is the Wates approach to sustainability and in 2010 Wates redefined its CR strategy by outlining its priorities for 2011 and beyond.
Transforming communities: by broadening the focus on skills and employability to embrace wider engagement with schools and families in order to raise aspirations and create sustainable communities. Support 1,000 people back into employment, training and empower a further 1,000 young people to raise their aspirations.
Reducing their carbon footprint with a particular focus on energy consumption on site and travel they aim to reduce the carbon footprint of their operations. They are committed to reducing CO2 emissions by 34% whilst moving from a £1bn company to a £4bn business.
Eliminating Waste: by building on the success of Target Zero they aim to reduce waste by 25% and divert 100% of non hazardous waste from landfill through working with the supply chain to identify innovative solutions
Sourcing Responsibly: through rolling out a Chain of Custody certification to all projects over £15m.
-
Employees & Future workforce
Wates aims to help its people thrive, and 87% of the employees have pride in their company. In 2010 alone over £1m was invesetd in more than 6,000 training days and a further £300,000 in supporting employees to gain professional and academic qualifications. Wates has 18% of female employees compared to a sector average of 12.2%. To further embed sustainability skills across the company a “sustainable future” behavioural competency for all employees has been rolled out. A key benefit of the commitment to corporate responsibility is employee engagement. In a recent employee survey, CR was sited as the primary driver of engagement with 89% of people rated as engaged.
-
Risk reduction and management
Guaranteeing sustainability in its investment decision making is critical for the future of Wates. 2010 saw Wates strengthen the profile and practice of risk management through the appointment of risk specialists to every business unit. Wates’ programme of research and development focuses on innovation to address the future sustainability challenges. Current projects include sponsorship of a doctoral student to develop a building modelling system in the area of renewables, researching how to make the 26m UK homes more energy efficient focusing on products, process and customer acceptance.
-
Operational effectiveness
In recognition of the need to ensure that its supply chain shared its values and to support the financial stability of its suppliers Wates developed a ‘Closer to Fewer’ programme. This has led to 5-year partnering agreements with key suppliers which has delivered financial benefits. Wates also supports its suppliers to improve their H&S and environmental performance as well as holding innovation-sharing workshops to help deliver value to customers.
-
Responsible leadership
In 2006, Wates launched Target Zero – a bold plan to eliminate non-hazardous waste to landfill by 2010. 30% of sites have reached this target and overall as a group they diverted 95% of their waste in 2010. Last year they had 28 projects rated BREEAM Very Good of higher. Additionally the company is focused on finding ways to improve the energy efficiency of existing house stock and demonstrated that an investment of £700,000 could deliver 20 homes to a habitable state with positive impact on carbon emissions reducing fuel bills by 44% on average.
-
Business opportunity
Wates conducted strategy sessions to look at new opportunities for the business which identified energy efficiency as a potential area for growth, this tallied with customer research conducted in 2010. BIM (Building Information Management Systems) have been trialled successfully which can produce construction drawings as well as be used post construction in Facilities Management. This is now being offered as a new product and service to customers. Wates is also developing a new energy business which is in early stages of development, but will focus on funding and research, installation of micro generation technologies and cost modelling including revenue generation from feed-in tariffs.
-
Brand value and reputation
Wates is committed to making a positive difference and creating sustainable communities. It has developed its own employability programme ‘Building Futures’ for long term unemployed and single parents with over 60% of attendees moving into education employment or training. In total 363 people have graduated from Building Futures since it started in 2007.. Wates launched a Business Class partnership with Ernesford Grange School in Coventry and is committed to rolling out a further 10 with challenged schools across the UK. With 20% of its work in education, this enables the company to understand end user needs and develop relationships beyond building.
-
Macro-level sustainable development
Wates has partnered with 55 social enterprises to deliver goods and services such as recycling, catering, landscaping and much more with a total contract value of around £750k. This has created many short-term and permanent employment opportunities, work placements and work experience whilst supporting local entrepreneurs with a purpose beyond profit. It is an initiative that came direct from the employees. One example is the Bristol Wood Recycling Project (BWRP) which employs people with mental health problems, or recovering from substance abuse. BWRP collects waste timber and sells it on for re-use or recycles it into wood chip. To date BWRP has received more than 180m3 tonnes of timber from Wates’ sites.
-
...
