Benchmarking the sustainability communications of construction companies Page 4

Social media in the business world Page 5

The role of supply chains in sustainable building Page 6

Is the UK a Do-Nation? Page 7

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To drag the world back to sanity, we need to know why we are here. The answer is: for consumers, not shareholders. If we are in sync with consumer needs and the environment in which we operate, and take responsibility for society as well as for our employees, then the shareholder will also be rewarded.PaUl PolmaNCEO, Unilever

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CLIENT PROFILE: SAINT-GOBAIN UK & IRELAND

IMS CONSULTING HAS BEEN HELPING SAINT-GOBAIN IN THE UK AND IRELAND DEVELOP THEIR SUSTAINABILITY STRATEGY AND REPORTING.

Saint-Gobain is a world leader in the design, production and distribution of construction materials, and includes brands such as Jewson, Graham, British Gypsum, Isover and Solaglas. In the UK and Ireland it operates from over 1,000 sites, with more than 15,500 employees, and sales of over £2.8 billion in 2009. Its vision is to be the leading designer, manufacturer and distributor of construction products and solutions for a more sustainable future in the UK and Ireland. continued overleaf

CLIENT PROFILE: SAINT-GOBAIN UK & IRELANDcontinued from page 1

Our work with them involved three main stages:

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IMS CONSULTING IN THE PRESSVisit our website to read what the press are saying about IMS Consulting. www.imsplc.com/press

IMS Consulting undertook desk-based research into Saint-Gobain’s current approach to sustainability. In parallel, we undertook a benchmarking exercise to identify Saint-Gobain’s position in the construction products sector with respect to its sustainability strategy and reporting.

UNDERSTANDING THE CURRENT POSITION1

IMS Consulting deployed StakeholderTALK™, our online stakeholder engagement platform, to establish stakeholders’ views on Saint-Gobain’s approach to sustainability. Combined with our knowledge of the sustainability landscape, IMS helped identify the issues that were most important for Saint-Gobain.

RECOGNISING THE WIDER CONTEXT2

IMS Consulting designed and wrote Saint-Gobain’s 2010 Sustainable Development Report, an evidence-based document that outlines their sustainability strategy and progress in the UK and Ireland.

COMMUNICATING PROGRESS3

Following on from this work, we are now helping Saint-Gobain develop and implement a sustainability roadmap that will help to drive and co-ordinate their sustainability activities across the UK and Ireland.

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Business Breakfast:BristolIMSSustainable

SUSTAINABLE BUSINESS BREAKFAST HIGHLIGHT: INCORPORATING CORPORATE RESPONSIBILITY WITHIN YOUR BUSINESSKathryn Barker, formerly

Head of Corporate Responsibility at Severn Trent plc, spoke at a recent IMS Sustainable Business Breakfast (SBB) on corporate responsibility within the utilities sector.Stakeholder engagement is central to the water industry’s long term strategy planning, particularly given the changes it is facing, both statutory and voluntary, and the industry’s large number and variety of stakeholders.

The discussion Kathryn led echoes the decision-making challenge faced by many organisations – balancing the initial costs associated with corporate responsibility, particularly stakeholder engagement, and the resulting bottom line benefits of effective consultation.

There is increasing awareness in the utilities sector about the importance of consulting stakeholders ahead of starting projects, particularly due to the prevalence of social media channels that result in the immediate visibility and exposure of both good and bad practice. Companies without broad programmes to address this sometimes unwelcome coverage could be leaving themselves vulnerable, as demonstrated by recent misdemeanours that have been made unapologetically public.

One key aspect of developing a successful stakeholder engagement programme, from Kathryn’s experience, is building engagement from employee values – a bottom up process rather than traditional top down dialogue. Too often, the focus is on communicating ‘corporate’ values to employees, rather than creating space for their contributions to these values. A more effective approach is to develop corporate values from employee values, through the use of focus groups and surveys.

The monthly IMS SBB provides a platform for education, discussion and the sharing of best practice for local business and NGO members, raising the bar for sustainable business activities. The aim of SBB is to effect change by starting innovative thought processes and networking of influential business people through the coverage of a broad range of topics relevant to sustainability issues. Each month, one of three aspects of sustainability – social, environmental and economic – are discussed by a keynote speaker which then leads to breakout sessions where ideas and best practices can be shared and developed.

Recent speakers include Prof. Susan Roaf, Architectural Engineering, Heriot Watt University, Graham Watson MEP and Helga Trupel MEP, and Ramon Arratia, European Sustainability Director of InterfaceFLOR. www.sustainablebreakfast.org

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IMS Consulting has undertaken what is thought to be the most thorough and comprehensive benchmarking study on the ways in which construction companies in the UK are communicating their progress towards sustainability.

The study established a robust set of criteria, in the form of a ‘sustainability reporting scorecard’, and used this to evaluate and compare the standard of sustainability reporting of the UK’s largest construction companies. It does not attempt or claim to benchmark the actual sustainability performance of construction companies, but rather to benchmark the nature of their sustainability reporting and communications.

The key findings include:

COMMUNICATION RATHER THAN PERFORMANCEPerceptions of companies’ attitudes towards sustainability are not just formed by deeds done but also through honest appraisal of the challenges faced. The benchmarking results show that most UK construction companies have now embarked on a sustainability journey, but that those which score highest are those that are being most transparent about their planned destination, their journey so far and the route that lies ahead.

THERE IS LITTLE EVIDENCE OF STAKEHOLDER ENGAGEMENTSustainability requires stakeholder engagement to be an integral part of the process, informing what is important and helping evaluate success. There is no single ‘correct’ way to approach sustainability, meaning that stakeholder approval needs to be taken as a vital measure of success. The benchmarking results indicate that few UK construction companies are using stakeholder engagement at a strategic level to help review their progress or guide future direction.

THE MATERIAL ISSUES ARE NOT ALWAYS DEFINED OR UNDERSTOODMateriality is an essential concept to understand how sustainability relates to core business strategy. Only by identifying the most relevant and significant sustainability issues can an organisation recognise the

links between their strategic interests and their stakeholders’ interests. Sustainability communications should reflect issues that are relevant to both. The benchmarking results suggest that hardly any UK construction companies currently undertake or communicate materiality analyses.

WEB CONTENT IS NOT BEING USED TO ITS FULL POTENTIALThe internet is widely recognised as an essential tool for communicating sustainability. Businesses are no longer limited to providing periodic snapshots of their strategy, actions and achievements, and are starting to develop more dynamic and responsive ways of disseminating information and engaging with stakeholders. The benchmarking results demonstrate that although all the largest UK construction companies have web-pages dedicated to sustainability, most simply reproduce static content from existing written reports, and few are exploiting the multimedia potential offered by the web.

THERE IS MUCH EVIDENCE OF GOOD PRACTICEThe benchmarking results as a whole reveal that UK construction companies typically have some distance to go, compared to sustainability leaders in other sectors. However, the research also uncovered lots of examples of good practice from within the construction sector. It suggests that many UK construction companies are not communicating what they are doing as effectively as they could be. It also implies that individual examples of sustainability good practice are not being situated within an integrated sustainability strategy or linked with overall businesses objectives as successfully as occurs in other sectors.

Coming at a time when sustainability is rising rapidly up the agenda of the boardrooms of many UK construction companies, IMS Consulting believes this benchmarking study is a timely and important piece of research. By providing an overview of how UK construction companies are addressing the challenges of sustainability, or are embracing the opportunities they provide, the benchmarking results provide a valuable insight for companies and their stakeholders alike.

For more details about the benchmarking or to obtain the report, go to www.imsplc.com/benchmarking.

BENCHMARKING REVIEW

Richard is an environmental scientist with particular interest in climate change. After gaining his PhD at Cambridge University, Richard worked for multi-disciplinary consultants Halcrow and the UK Climate Impacts Programme (UKCIP). Prior to joining IMS Consulting, he had a visiting scientist position at CSIRO in Australia.

IMS Consulting People

Dr. rICharD WeSTaWay

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Laura Da Silva has recently joined IMS Consulting as Sustainability Communication Specialist. Laura has a masters degree in International Business from the Sorbonne in Paris and has business experience in France, Germany, South Africa and the UK.

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laUra Da SIlVa

Twitter, Blogs, LinkedIn, Wikis, Xing and Facebook are some of the most popular social media tools as well as a drop in the ocean in terms of the number available online. Wikipedia lists 197 social media tools but not all are equal in terms of interest in the UK. Half of the UK population is using Facebook, 5 million users in the UK have a LinkedIn profile and this country has the third most active twitter population

Businesses need to consider investing time and resources in monitoring what is being said online and giving someone the responsibility for controlling the messages that their brand is linked to. Rumours and erroneous data can spread like wildfire. Although it might be hard to stop them, monitoring these media can enable companies to respond appropriately.

Smart companies are being proactive and taking advantage of social media. For example, HSBC targets business entrepreneurs by providing them with a forum to exchange knowledge. The HSBC Business Network platform is for both customers and non-customers. It includes the profiles of over 3000 entrepreneurs who can blog about their business ventures, interact with each other through these blogs and watch webinars. HSBC therefore gets direct access to these entrepreneurs.

Another benefit of using social media is the access to inexpensive, albeit time consuming, communication. It is important, firstly, to have a clear picture of the message you would like to communicate, the stakeholders you want to reach and a few key influencers that you might be able to target directly and who will in turn influence stakeholders. Using social media to spread your message is a strategic process that needs to be carefully thought through. The dynamic tools have various applications, for example, in recruitment, event management, tender tracking, and maintaining relationships with clients and vendors.

Many businesses overlook the strategic importance behind social media management and waste time trying to reach a large number of people (who might not care about the company), rather than targeting specific groups and media where stakeholders are more likely to have a real interest in the company’s activities.

IMS currently manages a number of businesses’ outreach through social media and most importantly, helps companies use these tools to learn more about their stakeholders and engage directly with them.

SOCIAL MEDIA IN THE BUSINESS WORLDIrrespective of opinions about social media, it is a fact that they are now central to a large number of social interactions and a way in which businesses can understand and interact with their stakeholders. 70% of UK homes have broadband access, 70% of daily internet users use social media and the biggest driver of UK mobile internet adoption is… social media. By scrutinising social media and comments from stakeholders, businesses might be able to identify risks, areas of improvements or even business opportunities.

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THE ROLE OF SUPPLY CHAINS IN SUSTAINABLE BUILDING:ARTICLE ORIGINALLY APPEARED IN ABC&D MAGAZINEBy erika roshdi

With the business case for sustainability gaining a foothold in the board room, it is crucial for those in the construction industry to ensure they are working with their suppliers and customers in incorporating sustainable business practice throughout their operations. This article highlights the shift taking place within the industry towards the greening of supply chains, and the tools available for pushing this forward.

Collaboration within the supply chain is not a new concept. The case for supplier-customer partnerships has already been demonstrated but the increasing focus on full lifecycle analysis in building projects requires a step change in these relationships.

Honest communication is crucial to effective cooperation and the nature of this dialogue has progressed beyond traditional offline networks. The development of tools such as StakeholderTALK™ presents new opportunities for companies to imbed transparency and accountability into the heart of their operations.

SHIFTING THE FOCUS TO LIFECYCLESA lifecycle view of construction takes into account the costs of operation and impact of structures over their entire lifespan. Rather than simply considering the costs at a particular stage of development or use, lifecycle analysis requires planning across the entire supply chain and beyond.

This shift in thinking is central to sustainable construction. Planning, designing and building so that impacts throughout a structure’s use are minimised allows for longer life buildings and savings in terms of waste, water and energy.

Of course, this kind of construction means higher upfront costs. The savings made over the entire project lifetime, however, make these initial investment costs worthwhile.

Interestingly, construction companies are finding that this approach to building is actually more appealing to investors, due to the savings made throughout the project lifespan.

One example of green investment is the refurbishment Skanska carried out on its offices on 32nd floor of the Empire State Building, New York. Projections showed that the incremental cost of attaining a LEED Platinum standard was an additional $250,000 and the goal was to pay off this investment over the lease life of 15 years. Two years in, energy bills indicated that the investment will pay off in the first five years, saving half a million dollars over the last 10 years.

Understanding and engaging with supply chain partners is the most effective way of carrying out a complete lifecycle analysis on projects. It ensures that from the procurement of materials to periodical maintenance post-construction, all aspects of the structure are developed for sustainability.

BENEFITS OF COLLABORATIONBusinesses do not operate in isolation and poor decision making at any point in the supply chain can reverberate and negatively affect all involved. Recent news stories demonstrate the reputational value of ensuring the procurement policies of suppliers are ethical and in line with that of customers’ codes of conduct. Thus it is crucial to know the policies of those in your supply chain and work with them in meeting corporate sustainability goals.

Open and honest communication is significant in forming reliable supply-customer relationships. Increasingly, the sustainability policies of companies are becoming pivotal to the tendering process in Pre-Qualification Questionnaires (PQQ). Trust is built on transparency in activities and accountability to goals. Both require organisations to not only

communicate what they are doing well, but to explain where they are lacking and what is being done to correct these failings.

Supplier-customer relationships built on trust can therefore greatly mitigate reputational and brand risk. The rise in social media and online communication channels means that companies can no longer afford to be in the dark about their procurement partners; the truth will inevitably surface to a global audience with undesirable consequences.

In addition to these are the more obvious financial and market benefits that supply chain collaboration can provide. Innovation is a particularly significant theme in the sustainability debate and requires all involved in project development to partner in exploiting synergies and the efficiencies that follow. By involving more of the supply chain in the planning and designing phases, decision making capabilities can be vastly improved and new opportunities for cost saving and innovation uncovered.

SO WHAT DOES THIS COLLABORATION LOOK LIKE?The nature of collaboration is constantly evolving with the continuing sophistication of technology. Given the importance of effective two-way dialogue and the vast array of online tools now available that allow fast and measurable communication, supply chain partnerships in the 21st century are overcoming the limitations of traditional offline business networks.

Tools such as StakeholderTALK™ enable businesses to build online networks and channels through which they can communicate their sustainability strategies and remain accountable in their progress towards corporate goals. Companies in the industry are already utilising evidence databases such as case study engines to provide proof of their commitment to supply chain partners and investors. These engines allow businesses to set the bar within their value chains and encourage their partners to do the same.

With sustainability now recognised as a useful decision making tool, online communication channels providing news, information and resource documents are the future of collaboration, particularly when combined with mechanisms to gather feedback from this key stakeholder group.

The issues of time and space have been made redundant with the rise of online communication, and supply chain relationships are just one aspect of business that have been affected as a result. With ongoing budget cuts and cost-cutting measures being applied across the industry, companies must ensure they are forging strong and reliable relationships with their supply chains through open two-way dialogue. The tools for sustainable building are already available; it’s now up to businesses to exploit them.

THE CORPORATE PURSUIT OF SUSTAINABILITY CANNOT GO FAR IN ISOLATION. IT REQUIRES A COMMON VISION AND COLLABORATION ACROSS THE ENTIRE SUPPLY CHAIN IN ORDER TO REALISE IT.

Stakeholder engagement is a key area of work for IMS, especially as companies focus on behavioural change and education of stakeholders on sustainability issues. There are a hundred ways to try to influence behaviours and we have chosen to highlight one exciting example of a new social enterprise which aims to turn the conventional ideas of sponsorship and pledge schemes on their head.

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IS THE UK A DO-NATION?

The online platform where the pledges are made also enables an easy calculation of carbon saving and enables donors to see the impact they are making individually and the collective impact their friend’s challenge is making on the environment.

The DoNation’s target is to trigger savings of 13,000 tCO2 by 2012 with the help of doers and donors. Although an ambitious target, in reality they hope to have an even bigger impact. In the long term, what the people involved in the development of The DoNation hope is that the changes in behaviour that sponsoring instigates will stick and people will naturally continue to live more sustainable lives.

Find out how the IMS team have taken on the DoNation challenge – www.thedonation.org.uk/imsplc

www.thedonation.org.uk

The DoNation is a new environmentally focused sponsorship platform that replaces cash with action. Think of JustGiving, but instead of entering credit card details, sponsors support a challenge with a carbon saving action. The DoNation was developed from the notion that although donating money to environmental organisations is a good start, climate change needs people’s actions more than their money.

With 42% of the UK’s carbon emissions resulting from individual actions, The DoNation is looking to engage ‘middle Britain’: those who are already aware of their basic environmental impacts and are willing to change certain behaviour, but have lacked sufficient motivation to take the step from thinking to doing. The concept is simple - an individual (or a group) creates a challenge such as running a triathlon. He or she then sends information to friends and family about the challenge and requests them to pledge to do an environmentally positive action which can be chosen on The DoNation’s platform. The DoNation therefore touches demographics that traditional green campaigns have been unable to reach.

IMS Consulting Head office: St Nicholas House, 31-34 High Street, Bristol BS1 2AW, UK London office: 24 Greville Street, London EC1N 8SS

Tel: +44 (0)117 315 5239 www.imsplc.com info@imsplc.com

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Communicating sustainability with your key stakeholders, internally and externally, provides real dividends. A properly structured strategy will help to strengthen relationships with customers and employees, create a competitive advantage for your business and improve your licence to operate. StakeholderTALK™ is a complete multi-media communications toolkit. Developed by IMS Consulting, StakeholderTALK™ meets the needs of both private and public sector organisations wanting to develop two-way communications with their key target audiences. StakeholderTALK™ provides customised, online delivery of information and two-way communication between you and your stakeholders.

www.imsplc.com/stakeholdertalk

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HAVE YOU READ OUR SUSTAINABILITY BLOG?

www.imsplc.com/blog

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Sustainability, by its very nature, is not straightforward. There is no finishing line, no arrival point. Policies, actions, measurements need to be constantly questioned, improved and developed. We use this feedback model to help our clients understand how to approach sustainability in their organisation, then utilise our services to help them do so.

We offer the following services to our clients:n Sustainability Strategy Developmentn Sustainability Communicationsn StakeholderTalk™ – Online Dialoguen CSR and Sustainability Reporting

DEVELOPING AND DELIVERING SUSTAINABILITY COMMUNICATION STRATEGIESIMS Consulting specialises in developing and delivering sustainability strategies for organisations. We will put you on the right path, help you achieve your chosen objectives and ensure that the activities you undertake to improve your level of sustainability are communicated clearly; internally to staff, and externally to customers, investors, regulators and the media. In fact, to all your chosen stakeholder groups.

In the work that we have undertaken helping clients to develop and improve their sustainability strategies, identify gaps in the way information is understood and communicated, prioritising those key performance indicators that are most important, implementing strategies and communicating actions, IMS Consulting has developed a feedback model for improving the way that sustainability is understood, measured, managed and communicated in any organisation: