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Risks and opportunities

Significant risks - including social and environmental - that could impact on the future of the business are reviewed and form part of the principal risks and uncertainties disclosed in our Annual Report and Accounts.

By their very nature, sustainability risks are intrinsic to our business. Outlined below is a summary of our key sustainability risks and opportunities and how they are addressed.

Customer first

Key risk

  • Failure to meet customer expectations

Impact

  • Damage to corporate reputation from unacceptable service and reduced recommendations impacting sales

Management via our principles

  • Our commitment to retention of the Home Builders Federation 5 Star ranking for customer service and a market leading Net Promotor Score for home builders.

Key opportunity

  • Customer engagement and good design

Benefit

  • Increased sales due to highly desirable home and development designs

Management via our principles

  • Dedicated customer care, design, technical and sales teams that regularly engage with our customers and review the designs of our homes and the places we create
Keeping people safe

Key risk

  • Unsatisfactory health and safety performance

Impact

  • Injury to employees, subcontractors and site visitors, delay in construction/increased costs, reputational damage/criminal prosecutions and civil litigation, increased operational costs and insurance premiums

Management via our principles

  • Dedicated Group Safety, Health and Environmental (SHE) team, lead by a designated Director, independent of operational management. Monitoring of developments at least monthly

Key opportunity

  • Safe operating environment and a reputation for delivering effective industry leading actions and performance

Benefit

  • Recognition that health and safety is paramount to our overall performance leading to lower operating costs and insurance premiums

Management via our principles

  • Operational Committee specifically for Health and Safety and Environment. Report performance quarterly to the Operational Health and Safety Committee and Group Operational Committee and formal six-monthly reviews by the Board Committee and Board
Safeguarding the environment

Key risks

  • Failure to identify and achieve key construction milestones, including exposure to environmental/climate change requirements that can delay construction, leading to reputational risk through poor environmental performance
  • Increasing regulatory requirements including climate change adaptation, flood mitigation, ecology, energy use, carbon emissions and waste to landfill

Impact

  • Increased costs in the building of homes. Damage to natural resources and ecology within and around our developments
  • Increased cost of building homes and increased research and development costs

Management via our principles

  • Compliance with all environmental and other requirements. Regular monitoring of environmental impact indicators
  • Commitment to be involved in setting and undertaking research to address the implications of Government regulation on our future developments

Key opportunity

  • Market differentiation of our products
  • Enhancement of our products through innovative designed solutions

Benefit

  • Improved sales and awareness due to higher quality and design of the products we offer
  • Reduced financial risk associated with future regulatory requirements
Trusted partner

Key risks

  • Failure to meet the standards and expectations of our development partners
  • Failure to work efficiently with our supply chain and to access a sufficient base of skilled subcontractors resulting in delays and poor quality

Impact

  • Damage to corporate reputation and relationships with partners
  • Reduced quality resulting in damage to corporate reputation from poor service and reduced customer satisfaction

Management via our principles

  • Structured project plans and regular project meetings with partners
  • Working in partnership with our suppliers and subcontractors to seek enhanced performance and access to high quality suppliers through our sustainable procurement processes

Key opportunity

  • Increased efficiency and effectiveness and increased market values of the homes we build, due to their appeal and lower build costs

Benefit

  • Enhanced quality of build and lower operating costs

Management via our principles

  • Dedicated procurement, technical and construction teams conduct regular reviews and seek to enhance the working relationship with all our suppliers and subcontractors