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Building sustainably everyday Making sustainable progress. Sustainability report November 2013.

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1 Building sustainably everyday Making sustainable progress. Sustainability report November 2013

2 Building sustainably everyday Contents 2013 report highlights Total Recordable Frequency Injury Rate in our construction division fell by 26 per cent in the 2013 financial year. Achieved a reduction in carbon emissions intensity of 3.5% between 2007 and 2012. Pacific Steel recognised for encouraging engagement in health and safety at New Zealands largest health and safety awards. Fletcher Building named in the 2012 NZX50 Carbon Disclosure Project Leadership Index. Fletcher Buildings annual sustainability report records some of our progress as we work to improve our economic, environmental, social and governance performance. Visit our website for updates on our sustainability initiatives during the year. 2.Contents 3.From the chief executive 4.Product life-cycle 5.Sourcing raw materials 6.Designing sustainable products 7.Manufacturing sustainably 8.Reducing CO 2 emissions 10.Health and safety 11.Distribution of products 12.Design of buildings 13.Construction and installation 14.End of life: reducing and managing waste 15.Our people 17.Our communities Ngaruawahia bypass bridge New Zealand Decra Roofing beats reduction targets for stone chip waste for an annual cost saving of $US190,000. Dimond awarded the ACC Workplace Safety Award at the Champion Canterbury Business Awards. Rocla Quarry Products awarded for being a rehabilitation and restoration leader in the Australian quarrying and mining industries Ongoing improvement to the way we engage and develop staff, build leadership capability. 2

3 Building sustainably everyday From our Chief Executive Welcome to Fletcher Buildings annual sustainability report As Australasias largest, integrated manufacturer and distributor of building materials, Fletcher Building is committed to our role as an environmental steward in providing innovative products and building smarter. We make a significant investment in developing sustainable and efficient manufacturing and construction practices and Im pleased to share with you the progress we have made this year. Fletcher Buildings life-cycle approach to sustainability – from the sourcing of raw materials to product design and recycling – is reflected in the structure of this report. Employee health and safety and the reduction of carbon emissions from our operations remains a primary area of focus and Im pleased to report the Total Recordable Frequency Injury Rate in our construction division fell by 26 per cent in the 2013 financial year. We also achieved our goal of reducing group CO 2 emissions intensity by 3.5% between 2007 and the end of 2012. Total CO2 emissions and energy use was reduced by 13%. In February, Fletcher Building was the only New Zealand manufacturer named in the 2012 NZX50 Carbon Disclosure Project Leadership Index. Sustainable thinking has a major influence on innovation and product development across Fletcher Building and a number of our businesses are developing products and solutions to meet emerging customer preferences in the area of environmental sustainability. Examples include: window glazing systems with a thermal break to reduce heat loss, steel and foundation solutions designed for seismically-active environments, and the use of sustainably-sourced materials in our Laminates products. More examples of the ways we continue to raise the bar for sustainable performance in the construction industry are outlined in this report, and recognised in the various industry awards we have celebrated this year. Becoming a more sustainable organisation also motivates our major business transformation programme FB UNITE, and this year thats involved putting in place programmes of manufacturing and supply-chain excellence as part of a long list of goals for improving our group performance. As a result of the bold changes were making, Fletcher Building will be a stronger, more sustainable company – continuing to give our customers cost-effective, innovative solutions for generations to come. Mark Adamson We are committed to our role as an environmental steward in providing innovative products and building smarter. Mark Adamson Fletcher Building Chief Executive 3

4 Building sustainably everyday Re-use recycle Sustainable resource extraction Design sustainably Reduce CO 2 Sustainable building solutions Reduce energy use Water stewardship Reducing the environmental footprint of our products Product life cycle 4

5 Building sustainably everyday operation, with further rehabilitation carried out at other quarry sites that have reached their end of life. In the 2013 financial year approximately 7.5ha of land was restored. Roclas achievements in land restoration are internationally recognised. In conjunction with the University of Western Australia and the Western Australia state government, Rocla is publishing a guide for its mining industry peers to replicate its success. Protecting Auckland Green Gecko Winstone Aggregates has now planted more than 50,000 trees across its quarry sites in New Zealand and relocated more than 39 endangered Auckland Green Gecko in conjunction with the Department of Conservation and local iwi (indigenous people) at its Hunua Quarry. All Winstone sites have extensive land management plans in place that include replanting native bush, re-shaping the land or backfilling it to create ponds and pasture once mining is complete. When the right steps are taken, trees, birds, bees and aquatic life can be sustained in these areas. Rehabilitation and restoration Two of our businesses are involved in extracting raw materials from the ground: Winstone Aggregates - New Zealand's largest manufacturer and distributor of aggregates and sands, and Australian sand mining business Rocla Quarry Products. When a quarry site is vacated, Winstone and Rocla both take steps to restore the site so wildlife and vegetation can regenerate. Restoring the Banksia woodlands Across many of its West Australian operations, Rocla Quarry Products has been working with local authorities and the Kings Park Plant Science Division, a revegetation research organisation, on landscape rehabilitation to restore the Banksia woodland environment. Restoring the biodiverse woodland communities is a long and involved process involving seed collection, storage and care, top soil movement and storage, seed replanting and ongoing site monitoring. It can take years and considerable investment before the long- term success of restoration efforts is known. Rocla has now restored almost 200ha of land across two sites still in Winstone Aggregates has planted more than 50,000 trees across its former quarry sites. Sourcing raw materials Making sure we source our materials sustainably is a crucial first-step in the manufacturing process 5

6 Building sustainably everyday Improving the environmental performance and credentials of our building products and services is an ongoing process across the Fletcher Building group. Sustainable thinking about product design is demonstrated in a number of Fletcher Building products, including: steel and foundation solutions designed for seismically-active environments; window glazing systems with a thermal break to reduce heat loss through the aluminium frames; insulated concrete floors and masonry products. Many of these products have been developed to align with external building rating criteria and to gain environmental standard certification. Our building products meet the requirements of building ratings schemes, such as the New Zealand and Australian Green Star-rating tools. Many of our products also comply with environmentally-preferable product systems, such as Environmental Choice New Zealand. Life-cycle assessment information is now available for a number of our building products. Product insight: Firth Industries RibRaft® TC3 foundation solution. This year Firth Industries launched RibRaft®s TC3 Foundation System - designed to help Christchurch home owners deal with earthquake liquefaction in any future earthquakes. RibRaft® TC3 uses a world-first, dual-slab design, which helps the upper slab re-level easily if the built structure moves. Levelling occurs through jacking points inserted in the top slab, which can be wound up or down by a rattle-gun. RibRaft® is seismically strong, energy efficient and cost effective thanks to reduced labour requirements for installation. It is also less disruptive on the land as it requires less excavation. Designing sustainable products Sustainable manufacturing begins with sustainable design In Christchurch there are about 28,000 properties in technical category 3 (TC3) areas where damage from liquefaction is possible in future large earthquakes. About 12,500 of these homes have major foundation and pile damage requiring thorough investigation of the ground around them before building can take place. Firth general manager Andrew Moss expects RibRaft®TC3 to be used in non TC3 areas by homeowners who want to future-proof their investment. After eight months in development we have now created a viable, cost effective TC3 foundation option which will help give home owners and builders more peace of mind, Mr Moss says. 6

7 Building sustainably everyday 10 pillar approach In 2013, under the umbrella of our FBUnite business transformation programme, Fletcher Building began putting in place programmes of manufacturing and supply-chain excellence as part of a long list of goals for improving our group performance. Embedding these programmes, which range from establishing common manufacturing practices and processes to improving supervisor training and oversight, is a process that will take up to five years. Manufacturing excellence Safety & wellbeingDeployment of objectivesPlanning and WIP reductionEnvironment & sustainabilityEmployee developmentEfficiency controlProduct & process standardisationSupplier developmentQuality assurance systemOrganising and cleaning The 10 pillars of manufacturing excellence. Manufacturing sustainably Were transforming the way we manufacture our products, with a focus on minimal environmental impact Matakohe-Limestone Island, on the coast from Golden Bay Cements Portland manufacturing facility, is now a safe place for raising kiwi chicks in the Whangarei Harbour Looking at manufacturing excellence specifically, the diagram outlines our key areas of focus. From our efforts to make improvements across areas we expect to see: A safer working environment Quality improvements through process variability reduction Productivity gains through efficiency improvement Cost savings Improved morale through staff empowerment and involvement Reduced environmental impacts. 7

8 Building sustainably everyday Emissions from our New Zealand operations amounted to 701,329 tonnes, while Australian operations emitted 405,339 tonnes and international 158,721 tonnes. Emissions volumes have increased in New Zealand this year, reflecting the rise in production volumes as the economy strengthens. Our six most emissions-intensive products contribute about 75 per cent of all group emissions, as illustrated on the next page. Fletcher Building continues to participate in the Carbon Disclosure Project, requiring us to report how we manage the risks and opportunities of climate change and provide a complete inventory of our annual energy use and CO 2 emissions. In February, we were the only New Zealand manufacturer named in the 2012 NZX50 Carbon Disclosure Project Leadership Index, which requires a company to be in the top 10% of respondents in terms of the quality and completeness of their disclosures and to demonstrate a measured understanding of climate change issues, risks and opportunities. Our external energy audits have provided significant cost- savings to our businesses, and reduced their emissions output. John McArthur, Fletcher Building Carbon Reporting Manager We met our target of reducing carbon emissions by 5% between 2007 and 2012 We have set a target to reduce emissions across the group by a further 10% by 2020 Reducing CO 2 emissions As a largely manufacturing-based business, a key focus when it comes to environmental performance is to reduce our energy use and carbon emissions. The end of 2012 marked the end of our five-year target to reduce our overall group carbon emissions by 5 percent. We achieved that goal, with a total reduction of 13%. We also achieved a reduction of 3.5% in our emissions intensity. Emissions intensity across our glasswool insulation manufacturing facilities decreased by 17 per cent between 2007 and 2012, after the a gas-fired furnace at our Auckland plant was converted to an electric version. This reduced emissions- intensity per tonne by an impressive 50 per cent. Process and input improvements at our Dandenong, Australia glasswool facility saw emissions intensity reduced by 10 percent. We have now set a target to reduce emissions across the group by a further 10 per cent between 2012 and 2020. Our Energy and CO 2 inventory is updated every six months, and provisional figures for the 2013 financial year reveal total CO 2 emissions of 1,265,389 tonnes – a decrease of 5,565 on the same time last year. This includes the CO 2 emitted during the generation of electricity used by Fletcher Building. Reduced emissions Our total CO 2 emissions and energy use were reduced by 13% 8

9 Building sustainably everyday Driven by the FBUnite business transformation programme, operational and process improvements are being put in place across the group and are expected to reduce energy use across our sites. Fletcher Building is working with the New Zealand Governments Energy Efficiency and Conservation Authority (EECA) to identify energy-saving initiatives across our New Zealand operations. With EECAs assistance, nine Fletcher Building businesses have carried out energy audits and assessments, and the savings they identified have been implemented. Our target through the EECA programme is to reduce total New Zealand energy usage by 5 per cent between September 2012 and June 2014. EECAs help in meeting this target will contribute positively to our group carbon emissions reduction target of 10 per cent by 2020. The introduction of dedicated software to capture and report on energy use and CO 2 emissions will help monitor progress towards our energy savings targets Savings from energy-efficient LED lighting Our premium decorative surface manufacturer Laminex has reduced its energy use as a result of our agreement with EECA. By installing energy-efficient LED lighting and improving lighting management systems, Laminex has dramatically reduced lighting energy use at its Hamilton manufacturing facility from 660,000kWh to 140,000kWh – an 80 per cent reduction, resulting in an annual cost saving of $80,000. Fletcher Buildings six most emissions-intensive products (manufacturing process) ProductFY12 emissionsFY13 emissions Cement Total (tCO 2 e) Efficiency (tCO 2 e/t) 498,722 0.741 509,783 0.782 Steel Total (tCO 2 e) Efficiency (tCO 2 e/t) 64,125 0.310 69,711 0.309 MDF Total (tCO 2 e) Efficiency (tCO 2 e/m 3 ) 77,574 0.296 Decorative laminates Total (tCO 2 e) Efficiency (kgCO 2 e/m 2 ) 158,472 1.73 153,569 1.71 Fibreglass insulation Total (tCO 2 e) Efficiency (tCO 2 e/t) 64,640 1.90 64,973 1,90 Plasterboard Total (tCO 2 e) Efficiency (tCO 2 e/t) 26,013 172 28,040 169 81,342 0.309 Smarter energy use 8

10 Building sustainably everyday Dimond wins ACC Workplace Safety Award at the Champion Canterbury Business Awards 2013 Recognising exemplary workplace safety systems and procedures, acknowledging a safety first approach. Our coated steel business Dimond has a vision to achieve zero harm and to ensure all employee go home safely to their families at the end of each day. Dimond uses a risk-assessment tool right across the business to check all plant, machinery and processes are as safe as possible. Staff are engaged in safety, which starts with their employment contracts with every position having at least 5% of its role allocated to health and safety. A safety leadership survey revealed front line managers spent more than 10% of their role engaged in health and safety. This level of engagement empowers staff to respond to anything they se which has the potential to cause harm. Health and safety Health and safety in manufacturing A priority this year has been to mitigate the risk of fires and explosions in our high-temperature manufacturing facilities. External process-safety audits at our four most high-risk facilities is helping drive this improvement. A group-wide training programme developed by the Fletcher Building Learning Academy ensures on-site managers are competent in safety leadership and understand emerging regulatory requirements. Progress: As a result, weve made good progress in terms of our health and safety performance this year. The total recordable injury frequency rate (TRIFR) – the measure of the total injuries per million employee and contractor hours – fell to 6.8 from 8.5 the previous year.(See graph). This compares with a figure of more than 60 just a decade ago. Despite our progress, serious injuries still occur. During the past year, 15 employees and contractors suffered serious injuries, including 10 severe lacerations and five fractures. Each of these incidents has been investigated and measures to mitigate associated risks have been introduced. We are pleased to report the Total Recordable Frequency Injury Rate in our construction division fell by 26 per cent in the 2013 financial year, from 8.64 to 6.40. Our key healthand safety priority is mitigating the risks that could result in serious injuries and fatalities. External process safety audits of our most high risk facilities is helping drive this improvement. - Hans Buwalda, group environment, health and safety manager FB Unite has been a catalyst for integrating health and safety into operational management. Dimond wins ACC Workplace Safety Award at the Champion Canterbury Business Awards 2013 Our coated steel business Dimond was proud to receive this award, which recognises exemplary workplace safety systems and procedures, and a safety first approach to business. Dimonds vision is to achieve zero harm and to ensure all employees go home safely to their families at the end of each day. Safety starts with employment contracts, which see at least 5% of every employees role allocated to health and safety. A safety leadership survey revealed Dimonds front line managers spend more than 10% of their role engaged in health and safety. This level of engagement empowers Dimonds employees to respond to anything they see which has the potential to cause harm. 10

11 Building sustainably everyday Transport initiatives at Winstone Aggregates Winstone Aggregates – New Zealands largest manufacturer and distributor of aggregates and sands, was an early adopter of the SAFED NZ programme, which helps organisations reduce fuel and maintenance costs, CO 2 emissions and to improve safety. Since adopting the programme 18 months ago, Winstone has improved fuel efficiency in its vehicle fleet by as much as 7 per cent and reduced accident rates and maintenance costs. Winstone Aggregates has 73 trucks in its national fleet with 81 drivers who have completed SAFED, which requires them to sit two practical tests. Once any driver has completed SAFED, we then have a program of continuous 3-monthly follow up training with an in-house SAFED accredited trainer. Winstone Aggregates is also one of the first companies to be awarded High Productivity Motor Vehicle permits for routes on which it is allowed to carry increased loads. We currently have about 25 permits across New Zealand. The permits were established by the New Zealand Transport Authority as a way to reduce truck movements on the road network by enabling trucks on permitted routes to carry 51.8 tonne- loads as opposed to the standard 41- tonne limit. Distribution of products Thinking smarter about how we store and transport our products FB Unite helping to reduce our physical footprint A systematic review of all business units. taking place as part of FB Unite, is aimed at driving efficiency across our operations – with a focus on procurement, our property portfolio and logistics. The Fletcher Building property portfolio is currently sizeable, international and diverse. As we work to create collaboration and be more efficient, we will begin to co-locate business units on shared Fletcher Building sites and introduce open-plan office environments. A network optimisation work stream is underway to rationalise the freight and logistics and distribution footprints of business units across Fletcher Building. At the same time, were investing a lot to better leverage the size and scale of Fletcher Building in sourcing and procurement across the group. Procurement activities are primarily conducted at a business unit level, with little cross- group coordination. There are significant opportunities for Fletcher Building to take a more coordinated approach across the group and to consolidate the groups supplier base – leading to improved efficiency and financial savings.. 11

12 Building sustainably everyday Design of buildings Were increasingly being engaged at the concept stages of large commercial projects to offer practical advice on green building Graham Darlow Chief Executive Construction Green buildings Fletcher Building is recognised as an industry leader in delivering sustainable green building projects, having received a number of environmental awards for civil engineering, marine and commercial projects. This expertise means we are increasingly being involved at the conceptual stages of large commercial projects when choices about design, construction methods and materials are made. Fletcher Construction also sits on the advisory board of the University of Aucklands Sustainable Built Environments Research Centre, which is researching the sustainability of New Zealands built environments and working with the industry to find improvements. Our leading edge green build projects include: Meridian Energy Building, Wellington – New Zealands first 5-star new build Greenstar design rating building. Zurich House, Queen Street, Auckland – New Zealands first 5-star refurbished Greenstar design and built rated building. BNZ Centreport, Wellington - 5-star new build Greenstar design rating. Ormiston Senior College, Auckland – New Zealands first 5-star Educational Greenstar design rating building. ASB North Wharf, Auckland - 5-star new build Greenstar design rating. ASB Tower Albert Street – currently working with Auckland Council on its sustainable, energy efficient fit-out. Were focussed on energy-efficiency in our construction process, from project conception through to completion LEFT: Chief executive construction Graham Darlow talks with ASB chief executive Barbara Chapman outside the banks new head office at Aucklands Wynyard Quarter. 12

13 Building sustainably everyday Construction and installation Sustainability efforts are focussed on waste reduction, recycling & energy-efficient construction Site safety We are pleased to report the Total Recordable Frequency Injury Rate in our construction division fell by 26 percent in the 2013 financial year, from 8.64 to 6.40. Initiatives to improve safety on our constructions sites include: In February 2013 Fletcher Earthquake Recovery and EQC launched Safe 6 - a safety programme focussing on the six most fatal risks on the Canterbury Home Repair Programme including: falls from height, working in confined or restricted spaces, electrical danger, use of motor vehicles and asbestos exposure. Fletcher Construction became a founding signatory of the Canterbury Rebuild Safety Charter on July 4. This agreement between Government and businesses aims to promote safety in the repair and rebuild process. Honours and awards Fletcher Construction has received many awards for its commercial and infrastructure projects, either directly or through projects it has been involved in. Award-winning projects in the past year include: New Lynn rail trench – Supreme winner and NZ Transportation Infrastructure category winner, NZ Engineering Excellence Awards 2012. 2012 IPENZ Arthur Mead sustainability award for Ormiston Senior College Auckland 2012 NZIOB sustainability award - highly commended 2012 NZIOB innovation award – winner Numerous environmental and roading awards – Victoria Park Tunnel, Auckland. Archaeological awareness When working on large infrastructure construction projects it is not uncommon to come across archaeological artefacts. This year Fletcher Construction worked with New Zealand Historic Paces Trust to produce an instructional DVD for our workers – aimed at increasing their appreciation of archaeology archaeological process and relevant regulation. The DVD is included in our site induction tool kit for Fletcher Construction staff. Our key health and safety priority is mitigating the risks that could result in serious injuries and fatalities. External process safety audits of our most high risk facilities are helping drive this improvement. Hans Buwalda, Group Environment, Health & Safety Manager 13

14 Building sustainably everyday End of life: Reducing and managing our waste Re-use & recycle Significant recycling efforts are occurring in Christchurch where Winstone Wallboards is a partner in an initiative to reuse the gypsum in plasterboard for the manufacture of cement. This has reduced the volume of waste plasterboard sent to landfill by 3000 tonnes in the first year. As a result, volumes of plasterboard being recycled each year have increased by 200 per cent, or the equivalent of 300,000 full-sized plasterboard sheets. Greater volumes of recycled glass are now used at our glasswool insulation manufacturing operations. Tasman Insulation has this year reduced the volume of waste to landfill, per tonne of product produced, by 12 per cent and 6% in Christchurch and Auckland respectively. When it comes to the end-of-life of our products, we endeavour to find ways to treat waste as a resource that can be used. Waste wood is used instead of coal to fire the kiln at the Portland cement facility in Whangarei. Smart water recycling at Pukekawa Quarry & sand plant Water used to wash and classify sand and aggregate at the Pukekawa Quarry and Sand Plant south of Auckland, is taken from the process water supply pond, pumped to the sand processing plant and discharged to water treatment ponds where it is eventually reused in the sand and aggregate processing plant. This water recycling system is as close to a closed-circuit system as possible. Using recycled water ponds has significantly reduced the volumes of water taken from the Waikato River each day – from more than 5000 cubic metres per day to less than 1000 cubic metres. As the quarry pit is enlarged and deepened, the site will become self-sufficient in water and will not require this additional take from the Waikato River. Business insight: Decra Roofing beats goal in reducing stone chip waste In Corona, California, our DECRA manufacturing facility this year reduced its stone chip waste by 296 metric tonnes or 32% – slashing its annual stone chip costs by $US 190,000 and beating the goal set last year for a 30% reduction. In addition, the site now diverts all remaining stone chip waste from landfill to be recycled, providing further annual savings of $US20,000. DECRA Roofing Systems 14

15 Building sustainably everyday Our people Were getting better at developing employees and nurturing our talent Providing employment opportunities In 2013 we provided employment opportunities for 62 people through partnerships with Te Puni Kokiri, Limited Services Volunteer, Work and Income and the Department of Corrections. We are proud to be the principal sponsor of the First Foundation – an educational trust founded to give teenagers with plenty of talent, but few financial resources, a pathway through university study. In 2013 we funded 6 scholarships for highly achieving school leavers from low decile schools. As well as helping financially Fletcher Building also provides them with work experience and mentoring opportunities across our businesses. Education and talent development Our goal is to be an employer of choice, so recruiting the right people and providing them with the opportunities to build a career path is critical. This year we introduced better structured and more targeted staff training programmes across the group, and launched two new, customised leadership programmes: -Branching Out to support our 800 frontline branch managers across Australia and New Zealand. -Leaders Edge – challenging our business leaders with activities that provide access to industry experts and mentors to provide real-time support in solving critical business issues. Scenario analysis, strategy execution and change leadership form just a small part of the four-module programme. We also introduced a programme of divisional and group-wide talent conferences and improved our online talent tracking and assessment tools. Improving employee communication In 2012 we held our first company-wide employee engagement survey, FBuSay. This was made available to all 19,000 Fletcher Building employees internationally and translated in 17 languages. The results of FBuSay have been used across the group this year, inspiring improved communication processes and physical workplace improvements. FBuSay will be rolled out again in early 2014 to provide greater insight into how workplace culture has improved. One of our most significant one-off technology investments is currently underway in the form of a multi-stage global intranet project. The intranet environment will be the hub of communication for our 19,000 staff, dramatically improving on our current intranet platform and enhancing communication, collaboration and engagement. 15

16 Building sustainably everyday Diversity objectiveHow we measure Assess Fletcher Buildings current levels of diversity, beyond gender diversity, and identify where gaps exist and recommend further initiatives as appropriate. Analyse Fletcher Buildings global FBuSay employee survey against diversity metrics; use this to drive initiatives. Continued audit of diversity activities. Review of flexible working and parental leave policies to ensure they actively support the needs of our entire workforce. Monitor pay parity across the group in annual review cycle. Establish initiatives for increasing diversity in sourcing and selection. Scoping and implementation of a sourcing and recruitment strategy for attracting and building diversity in areas of critical capability. This will include a youth recruitment strategy targeted at current skills gaps. Designing Fletcher Building employment brand campaigns to appeal to specific minority groups. Hiring manager education to understand the value of seeking a diverse set of candidates and building teams with diverse sets of capabilities and approaches. Monitoring diversity of applicants and hires, and analyse for barriers or issues. Establish initiatives for increasing diversity in senior leadership roles. Implementation of strategies to enable our leaders to recognise the value of diversity in developing a winning culture. Our newly developed leadership practices set out diversity related expectations against which all our people are assessed. The leadership practices will be embedded into the performance management cycle, the entry point to leadership programmes and other development resources. Implementation of our Fletcher Building talent management framework to enable the identification and development of high potential and diverse contributors to our workforce. Establish initiatives for increasing diversity-related recognition and communication. Continue to promote youth employment opportunities through our external partnerships. This includes: placement of Māori cadets in our business with Te Puni Kōkiri; provision of opportunities to beneficiaries in Christchurch in partnership with the Ministry for Social Development; and sponsoring First Foundation scholarships. Other external partnerships include participation with the Global Women programme and continued board representation on the Equal Employment Opportunities Trust and the Employers Disability Network. Annual Fletcher Building excellence awards will continue to recognise work place diversity and excellence inside the company. Chief executive corporate services Kate Daly developing work with senior Fletcher Building teams Diversity During the year the Remuneration Committee approved a diversity policy that will drive greater participation across the Fletcher Building group with the specific focus of creating a more diverse and inclusive workplace. (See table to the left). Directors were pleased to see that over the past year the number of female senior leaders increased from 14% to 16%. There will be an ongoing focus to ensure this trend continues. The board composition remains unchanged from 2012: there are eight directors, with 25% being women. We are also into our fourth year of participation with the Global Women programme and continue to have board representation on the Equal Employment Opportunities Trust. 16

17 Building sustainably everyday Christchurch has been the focus of a lot of our community support and sponsorship activity in recent years. This year Fletcher Building sponsored the Christchurch Arts Festival and the Champion Canterbury Business Awards in October. The support of these two events follow the $6m we donated to Canterbury soon after the earthquakes in 2010 and 2011. Of those funds, $4m has been put toward the restoration of the historic Christchurch Arts Centre. We are also a foundation sponsor of the University of Canterbury Quake Centre, which works with the engineering and construction industries on joint-venture earthquake engineering research projects, training initiatives and product development, while building on New Zealands established reputation in earthquake engineering. Organisations we sponsor and support include: Fletcher Building: First FoundationFirst Foundation, Auckland Rescue Helicopter Trust, Christchurch Arts Festival, University of Canterbury Quake Centre, Champion Canterbury Business Awards Dimond:Auckland Rescue Helicopter TrustChristchurch Arts FestivalUniversity of Canterbury Quake CentreChampion Canterbury Business Awards Habitat for Humanity Tasman Insulation: Pink® Batts® Heartland Championship, NZRU rugby refereesPink® Batts® Heartland Championship, NZRU rugby referees, LiteClubLiteClub PlaceMakers: The Prostate Cancer Foundation – Blue SeptemberThe Prostate Cancer Foundation – Blue September, Super Rugby, Registered Master Builder Federation - House of the Year, HIVE and New Zealand rally driver Haydon Paddon.Super Rugby Registered Master Builder Federation - House of the YearHIVENew Zealand rally driver Haydon Paddon. Winstone Aggregates: Royal Forest and Bird Protection Society of New ZealandRoyal Forest and Bird Protection Society of New Zealand, Maungatautari Ecological Island, Ambury Park Centre for Riding Therapy, Youth in IndustryMaungatautari Ecological IslandAmbury Park Centre for Riding Therapy The Laminex Group: The Designers Institute of New ZealandThe Designers Institute of New Zealand, Green Building Council of Australia, New Zealand Green Building Council Green Building Council of Australia New Zealand Green Building Council Fletcher Construction (Engineering): The Faculty of Engineering at the University of Auckland, Canterbury University College of EngineeringThe Faculty of Engineering at the University of AucklandCanterbury University College of Engineering Golden Bay Cement: Friends of Matakohe-Limestone Island Friends of Matakohe-Limestone Island Our communities Our businesses perform valuable work in their communities across the globe 17

18 Registered offices New Zealand Fletcher Building Limited Private Bag 92 114 Auckland 1142 New Zealand Fletcher House 810 Great South Road Penrose, Auckland 1061 New Zealand T. +64 9 525 9000 Australia Fletcher Building Australia Locked Bag 7013, Chatswood DC 2067 NSW 2067, Australia Level 21, Tower B, Zenith Centre 821 Pacific Highway Chatswood, NSW 2067, Australia T. +61 2 8986 0900 ARBN 096 046 936 Contact us

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