Upstream has carried out a formal review of SEGRO’s 2006 targets in order to establish the extent of completion. Upstream is SEGRO’s strategic sustainability advisor and, as such, this review does not constitute a fully independent verification statement.
As in previous years, Upstream has performed the review on the basis of the following: |
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a series of one-to-one meetings with persons responsible for CR issues at SEGRO’s offices in both Slough and London UK. |
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in-depth telephone interviews including European and USA employees. |
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a detailed review of documentation provided and data/information submitted as evidence of action against each of the 2006 targets. |
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SEGRO’s commitment to CR is now well established and the company set itself a total of 42 CR targets at the beginning of 2006. In general, its performance is encouraging, although changes in the key persons accountable for the different target areas have led to a number of targets remaining unachieved.
On the basis of the audit described above, Upstream confirms that 21 (50%) of the 42 targets have been fully achieved. 5 of the targets (12%) were 75% achieved, 4 (10%) were 50% achieved, and 4 (10%) were 25% achieved. Unfortunately, this year 6 of the targets (14%) were not progressed at all (0% completion), representing a drop in SEGRO’s performance compared with previous years. From its review of findings, Upstream would make the following comments: |
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SEGRO has continued to strengthen its employee related policies and procedures, and has begun working on standardising these across its overseas operations. |
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Much work has been done during the year on the company’s environmental management systems (EMS), with both the UK and Belgium EMS being reviewed and updated, and the Belgian EMS also being rolled out to France, Germany and Holland. |
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In the UK, procedures have been put in place to monitor and report on environmental incidents and complaints from neighbours or members of the public during construction activities. |
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A programme of work has begun with the Carbon Trust, to establish and mitigate the carbon impacts of the business, which is due to continue in 2007. |
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SEGRO’s customer satisfaction surveys demonstrate that levels of customer service are improving. SEGRO is especially committed to ensuring high levels of security for its customers, and continues to extend the installation of robust CCTV surveillance systems across its estates. |
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Health and Safety procedures have been reviewed and strengthened in the UK, and comprehensive management systems are being developed across the business. |
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Looking forwards, Upstream would recommend that SEGRO focuses on strengthening its CR policies and procedures in its international operations, with a view to establishing a consistent groupwide approach.This represents a considerable challenge to the business given its continued strategy of international growth, and in particular the lower legal thresholds of responsibility required in some countries. Another challenge for SEGRO continues to be the implementation of effective supply chain management systems throughout its operations. While the company has demonstrated progress in developing its UK responsible procurement policy this year, there is still some way to go in identifying and implementing effective environmental and social risk management procedures in its global supply chain. Finally, as with all businesses in the real estate sector, effective carbon management should continue to be a key focus of SEGRO’s environmental efforts, with climate change risks becoming ever more apparent, and the marketplace response to these evolving rapidly.
Upstream welcomes continuing to work with SEGRO to address these challenges in the future, and looks forward to witnessing the company further embedding its CR commitments across its business as it continues to expand internationally. |
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Julie Hirigoyen
Director
Upstream |
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