Corporate Responsibility Report A good place to be

Transcription

1 Report A good place to be

2 GROUP OVERVIEW GO-AHEAD IS ONE OFTHE UK S LEADING PROVIDERS OF BUS AND RAIL SERVICES BUS (100% owned) Go-Ahead is one of the UK s largest bus operators.with a fleet of over 3,500 buses, we carry, on average, around 1.6 million passengers every day. We have a strong presence in London, with around 21% market share, and also operate in the north east, Oxford, the south east and southern England. Bus operating company Go-Ahead s rail network Revenue ( m) 629.5m : 584.7m : 557.7m Operating profit ( m)* 63.7m : 66.6m : 66.2m Go North East RAIL (65% owned) The rail operation, Govia, is 65% owned by Go-Ahead and 35% by Keolis **. It is the busiest rail operation in the UK, responsible for nearly 30% of UK passenger rail journeys through its three rail franchises: Southern, Southeastern and London Midland. London Midland Konectbus Oxford Bus Company Go-Ahead London Metrobus Revenue ( m) 1,537.8m : 1,552.0m : 1,378.4m Operating profit ( m)* 37.3m : 61.5m : 77.2m Plymouth Citybus Go South Coast Southern Brighton & Hove Southeastern CONTENTS Group Chief Executive s statement 2 at Go-Ahead 4 Performance summary 6 Safety 8 Environment 10 Passengers 14 Employees 16 Community 18 Key data 20 Independent verification statement 22 Icons used in this report direct you to expanded information within this report and our website. This report, along with other useful information, is available on our website: * Before amortisation and exceptional items. ** Keolis is a French-based operator of passenger transport which is majority owned by France s SNCF.

3 GROUP HIGHLIGHTS PUBLICTRANSPORT WAS A GOOD PLACETO BE IN Go-Ahead has continued to put passengers at the heart of our business.we have remained ed on providing efficient, integrated and responsibly operated bus and rail transport. Our (CR) Report this year es on the key areas of CR activity: safety, the environment, passengers, staff and our local communities. Revenue m Reducing our carbon footprint Operating profit m We launched Driving Energy Further, our commitment to reduce our carbon emissions by a further 20% per passenger journey by , ,187.2* 2, , , * Our site energy consumption reduced by 9% We fitted 44% of our train fleet with third-rail regenerative braking systems Quality and Innovation Our rail companies achieved their highest ever customer satisfaction scores in the Spring National Passenger Survey Average number of employees We launched the key, our unique integrated smartcard Innovative marketing campaigns increased our online ticket sales Empowering our staff New lifelong learning centres gave our staff increased access to more opportunities to learn new skills at work More of our businesses achieved Investor in People status 21,938 27,177 27, , ,254 CO2 emissions per passenger journey * We report on our performance of CR issues across a range of formats for each of our audiences: Restated to exclude our ground handling and cargo operations. Report A good place to be Group Report Summary of our issues, responsibilities, approach and performance. Information on our economic impacts. website Detailed information on our issues, responsibilities, approach and performance. Information on goals, targets and three-year performance data, copies of key policies. Individual operating company Reports Report Report Report Report Report Report Report Report A local A local A local Agrowth local Agrowth local Agrowth local Agrowth local growth growth growth growth A local A local A local A local A local Agrowth local Agrowth local Agrowth local Agrowth local growth growth growth growth Report Report Report Report Report Report Report Report Description of individual operating company issues, approach and performance. The Go-Ahead Group plc Report 1

4 GROUP CHIEF EXECUTIVE S STATEMENT The economic conditions of the past 12 months have posed challenges for all UK businesses. In these circumstances, putting the customer at the heart of our business and ing on providing efficient, integrated and responsibly operated bus and rail transport become more important, not less. That is what we have delivered. Keith Ludeman, Group Chief Executive Our services have, for the first time, carried more than one billion passengers.transport is a good place to be. People are using our services in ever greater numbers because of their quality and the increasingly key role they play in our towns and cities: taking people to and from work, providing access to vital services and opening up a range of leisure activities.we are a major employer and contributor to a range of local economies. At Go-Ahead, we have 22,200 staff working across the country.we believe in investing in our staff and have provided over 11m in training in this year alone. (CR) is at the heart of everything we do. It is never an afterthought and is an integral part of our business model. It is embedded into our day-to-day thinking and our long term strategy. CR is important to me personally, and I take ultimate responsibility for this area within Go-Ahead. Over the years, I am proud that we have led the way in our approach to transport CR.We were the first in our sector to publish the environmental and social performance of the Group and of our individual operating companies.this approach has enabled us to provide a Group-level overview of our CR activities and achievements as well as a more detailed local snapshot of the work carried out by our operating companies in the communities they serve. As well as setting the pace in CR reporting in UK public transport, Go-Ahead was also the first public transport company to be awarded the Carbon Trust Standard in recognition of our year-onyear reduction in carbon emissions. I am very pleased with our record in this area, but there is no room for complacency, and I am committed to ensuring we remain at the forefront of developments in this area. While Go-Ahead has a devolved management approach, our businesses all share one common aim: to run their operations in a socially and environmentally responsible manner. We believe that operating responsibly means operating safely and working closely with the local communities we serve. It means understanding and delivering to our passengers requirements, helping our people perform and develop in the workplace and minimising our impact on the environment. New and award-winning initiatives in /10 such as intelligent lighting in our bus and rail depots and a new car scrappage scheme in our bus division demonstrate that we are committed to maintaining our reputation as an industry leader in CR and to playing our part in reducing Greenhouse Gas Emissions (GHG). Climate change is one of the biggest challenges facing the world today, and we believe it is up to all of us to address this issue and make a difference.this year, Go-Ahead is launching Driving Energy Further: a new strategy for further reducing our carbon emissions. We have achieved a lot but we are determined to do more.we have already delivered in recent years a 9% reduction in CO2 emissions per passenger journey. While that is a huge reduction, I have set the business a new target of more than doubling that to 20% per journey by It is ambitious, but Go-Ahead has shown it is a business able to deliver. In the past, Go-Ahead has ed on reducing our contribution to GHGs through three initiatives: regenerative braking on our rail services; fuel efficiency measures in our bus sector; and reductions in site energy use across all our operating companies. Our Driving Energy Further initiatives will implement further innovation and fresh solutions the introduction of more hybrid buses and regenerative braking on more of our train fleet for example to address the challenge of using fuel more efficiently, while continuing with our day-to-day efforts to encourage people to use public transport and leave their cars at home more often. 1 Our target uses the financial year as our benchmark. 2

5 OUR STRATEGY CONTINUESTO FOCUS ON PROVIDING HIGH-QUALITY PASSENGER TRANSPORT. AN IMPORTANT UNDERLYING ELEMENT OFTHE STRATEGY ISTO RUN OUR COMPANIES IN A SAFE, SOCIALLY AND ENVIRONMENTALLY-RESPONSIBLE MANNER. Keith Ludeman, Group Chief Executive STRUCTURE OFTHIS REPORT Go-Ahead is committed to constantly improving our approach to reporting and we welcome feedback on our CR report. Last year, feedback from our shareholders, passengers, employees and other stakeholders on the report showed a clear desire for a simpler approach to reporting our CR progress. We have taken those comments on board and this year report on five key areas: SAFETY Ensuring the safety of our passengers and employees is an absolute priority for the Group. We are also playing our part in reducing emissions from cars by supporting Greener Journeys, a campaign launched during the past year to promote bus and coach travel to car users.transport accounts for 25% of UK GHGs but trains and buses are responsible for only 5% of that amount.the campaign, backed by the country s main bus and coach operators, aims to encourage car users to leave their vehicles at home for some journeys to help both reduce congestion and their carbon footprint. In the spring, Go-Ahead achieved its highest ever score in the Business in the Community Index, securing the gold standard for the fourth year and the position of highest scoring public transport operator. We are immensely proud of this achievement as the index is a clear indicator that we are performing well in the community, on the environment, and in how we run our services and help our people perform. I hope you find this year s report informative. A lot has been achieved, but I am determined to do more. ENVIRONMENT We are committed to reducing the environmental impacts of our operations and believe a sustainable transport network is essential to the UK s future. OUR PASSENGERS A reliable and convenient service encourages passenger growth and offers an attractive alternative to the private car. Our devolved structure ensures a strong local on providing our passengers with high-quality bus and rail services. EMPLOYEES How we develop people s performance at work is important to our success.we strive to be the employer of choice in the bus and rail transport sectors. COMMUNITY, INCLUDING ECONOMIC IMPACT Our businesses develop close links with their communities and tailor their services to local circumstances. Providing an efficient transport system is key to the UK economy. Keith Ludeman, Group Chief Executive September We welcome feedback on our CR report and activities. Please contact us via at: cr@go-ahead.com or write to:, Go-Ahead Group, 6th Floor, 1 Warwick Row, London SW1E 5ER. All our reports can be found at Our values underpin our approach to operating responsibly We value customer satisfaction and service quality We empower our employees We value innovation and new ideas Providing high-quality bus and rail services are at the heart of what we do.we measure the reliability of our services and our passengers satisfaction so we can continuously improve. Our companies are managed at a local level, with our management teams running their services in the way that best meets the needs of their local communities.this strong local ensures our staff identify closely with their company. Local management teams have the freedom to develop innovative ways of business success: new brands, products, services and technology all help our companies keep ahead of the game. The Go-Ahead Group plc Report 3

6 CORPORATE RESPONSIBILITY AT GO-AHEAD Operating our companies in a safe, socially and environmentally-responsible manner is a vital part of the Group s strategy. It is what we do on a day-to-day basis and is deeply embedded across our organisation at all levels. OUR APPROACH The Go-Ahead Board is ultimately accountable for the Group s corporate responsibility. We do not have separate Board-level committees for corporate responsibility and health and safety as we believe it is fundamental for the Board to be involved in both areas which are integral to our business.the Group s flat structure enables the Board to closely monitor the performance of each operating company. Safety and energy Key Performance Indicators (KPIs) are reviewed at monthly operating company board meetings, chaired by the Group Chief Executive and Group Finance Director. Internal safety and energy targets for each of our operating companies are set at the beginning of the financial year and progress against these targets is linked to both operating company senior managers and Group Executive Directors remuneration.a health and safety audit of each of our businesses is undertaken by an external consultant each year. Internal corporate responsibility structure STAKEHOLDER ENGAGEMENT At Go-Ahead, working with stakeholders is a fundamental part of the way we run our businesses.the key to strong engagement is building local relationships that are informed and work. We liaise with a wide range of groups such as our passengers, local communities, employees, government and investors so we can understand their expectations and share our plans with them. Our relationships with stakeholders are largely managed by our operating companies who are skilled in maintaining an extensive network of relationships, from local stakeholders to senior figures in industry and government. Transparency is at the heart of these relationships. Our philosophy of empowering each operator means we deliver a local approach to stakeholder engagement tailored to the unique needs of each audience. Feedback from stakeholders is regularly reviewed.through that feedback we are able to remain responsive and be open to change and continuous improvement. The Go-Ahead Group plc: Board of Directors Executive Directors Operating Company Board Group Energy Forum Operating Company Group Health & Safety Forum Shares best practice Chaired by Group Engineering Director & Group Environment & Energy Manager Senior Manager responsible for energy/health & safety/ corporate responsibility Shares best practice Chaired by Group Engineering Director & external health & safety consultant Operating Company Energy Group Operating Company Health & Safety Group 4

7 OUR STAKEHOLDERS Employees We want our people to put passengers at the heart of everything they do, and aim to keep them motivated to provide high-quality customer service by investing in training and development. We communicate with our employees in many ways through one-to-one discussions, team meetings or regular conferences which bring hundreds of people from across a particular company together. Our goal is for continuous improvement across all areas. WORKING WITH STAKEHOLDERS AT NATIONAL AND LOCAL LEVELS IS FUNDAMENTAL TO THE WAY WE RUN OUR BUSINESSES AND OUR APPROACH TO CR.THROUGH THIS WORK WE CAN UNDERSTAND STAKEHOLDERS EXPECTATIONS AND SHARE OUR PLANS WITH THEM. Keith Ludeman, Group Chief Executive Our passengers Over one billion passenger journeys are made with us every year, so our rail and bus customers are our key audience and at the heart of everything we do.we engage with them daily at local level through the day-to-day running of our services.we hold regular meet the manager sessions, encourage feedback via the web, social media channels and customer forums, and we are beginning to develop on-line passenger consultation forums Southern s Passenger Panel, for example, carries out web-based surveys on topics such as timetable changes and station facilities. Our passengers are also represented on our Stakeholder Advisory Boards; they join staff and senior managers for regular formal meetings and provide input into the Company decision-making process. Community Good relationships with our local communities are essential to our businesses. We engage with them through local authorities, local businesses and passenger user groups and we actively work with local community groups to enhance community programmes and local facilities, for example, Oxford Bus supports the OxClean campaign to clear litter from Oxford. Government and local authorities National and local government are key stakeholders because policy and regulation changes can affect our businesses and how we deliver our services. We work closely with local authorities to develop partnerships which contribute towards improving service quality and local facilities. We respond to consultations on specific policy areas affecting the bus and rail industries and develop effective dialogues with MPs and ministers to provide input into potential new policies and ensure regular and open feedback on our performance as an operator. Go-Ahead regularly holds forums where representatives from across our operating companies share best practice and help develop Group-wide standards and policies. Pictured below is our Health & Safety Forum which meets every quarter and is attended by our external health & safety consultant. Investors Our open and close dialogue with investors takes place throughout the year. We provide information on trading through quarterly trading updates, and investors meet with senior management regularly. Investors want to see a return on their investment and regularly engage with the Group on issues ranging from effective financial management to CR and governance issues. Supply chain Relationships with our key suppliers are vital we rely on them to deliver our services effectively. Suppliers such as Network Rail provide the infrastructure on which we run our trains, so developing positive relationships is important to our mutual success.through careful management of our supply chain we can also reduce our environmental impacts and further improve our services. website for our full data analysis at: The Go-Ahead Group plc Report 5

8 PERFORMANCE SUMMARY Adopting a responsible approach contributes to the success of our business. Our performance on safety, service punctuality and value for money helps us grow patronage. Minimising our environmental impact makes good business sense and helps us deliver cost benefits. OUR RESPONSIBILITIES AT A GLANCE Simplifying our CR reporting means we can track how we are progressing more effectively.we report on our CR activities in five areas: Safety Environment Passengers Employees Community The table on the right shows how we have progressed against our targets and objectives in each of these five areas and sets out our objectives for the coming year. Overall objective SAFETY The safety and security of our passengers, our people and the general public is an absolute priority for the Group.We aim to achieve a 20% improvement across our health & safety KPIs by 2015 *. ENVIRONMENT Operate our services in a sustainable manner and reduce our environmental impact through our Driving Energy Further strategy to reduce carbon emissions by 20% by 2015 (per passenger journey) *. 9% reduction already achieved. progress Internal safety video produced to raise awareness of preventing bus accidents and efficiently managing insurance claims. Busaccidents(whichresultinanotificationtoa claims handler) per million miles reduced by 6%. Signals Passed at Danger (SPADs) per million miles reduced by 10%. Group target and Driving Energy Further strategy launched to reduce carbon emissions per passenger journey by 20% by 2015 and provide a framework for energy reduction activity. 9% reduction achieved. Bus fuel efficiency improved by 2%. 38m spent on new buses with cleaner emissions. PASSENGERS To attract more passengers on to our services each year by providing a high-quality service that is reliable and convenient. Passenger journey growth of 8.7% and 3.2% in our bus and rail divisions. Maintained high punctuality rates. Achieved best ever rail customer satisfaction scores in a national survey. Successful launch of the UK s first domestic high speed rail service between Kent and London. EMPLOYEES To be the employer of choice in the sector.we have a unique devolved structure based on empowerment, trust and innovation; it enables our businesses to develop our staff, and reward them for contributing to our success. More businesses have achieved Investors in People (IiP) status. IiP is the UK s most widely recognised people management standard which drives business improvement. Southeastern achieved Bronze status and Go North East retained its accreditation. See our corporate website for our full data analysis at: COMMUNITY To be an outstanding member of the communities we operate in. Achieved highest ever score in Business in the Community s (BITC) Index, securing the gold standard for the fourth year. BITC rates companies on their progress in the areas of community, environment, workplace and marketplace. Over 250,000 donated to charities and community groups. 6 * Target uses financial year as the base year. ** Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995.

9 GO-AHEAD HAS AGAIN DEMONSTRATED ITTAKES CORPORATE RESPONSIBILITY ISSUES SERIOUSLY AND ARE LEADING THE FIELD IN ENSURINGTHIS IS HOW THEY DO BUSINESS. Stephen Howard, Chief Executive, Business in the Community 2011 objectives Read more 75 additional stations awarded Secure Station Status, bringing the total to 274. Staff RIDDOR** accidents per 100 employees reduced by 16%. Group wide Health & Safety Forum held every quarter. Annual safety audit of all Go-Ahead businesses. Further improve high safety standards working towards 2015 targets. Continue to reduce crime and anti-social behaviour on our networks. See pages 8 and 9 formoreinformation on safety. Electricity for rail traction (EC4T) efficiency improved by 14%. Review of water consumption undertaken and new Group wide contract implemented to increase amount of waste recycled. Group wide energy and engineering forums held every quarter. Involvement in national Greener Journeys campaign to remove one billion car journeys from the road in three years. Continue to improve energy efficiency to meet Driving Energy Further target. Reduce site energy by 8%. Reduce water consumption by 10%. Continue to engage and motivate employees in energy efficiency projects and initiatives. See pages 10 to 13 for more information on environment. Rail websites upgraded and pioneering industry marketing campaign at Southern launched which has increased online sales from 1.5m to nearly 15m. Successful trial of Go-Ahead s smartcard the key at Go North East and London Midland. Further improve customer satisfaction and maintain high punctuality rates. Continue to develop innovative online ticket retailing and roll out the key across more operating companies. See pages 14 and 15 for more information on passengers. 10m spent on staff training across the Group. More staff achieved NVQ qualifications 40% of Southeastern staff have an NVQ; continuation of safe and fuel-efficient for all 8,000 bus drivers; opening of Go North East s first lifelong learning centre. Maintained low levels of staff turnover (11.6%) and absenteeism (4.2%). Southeastern to achieve Silver IiP status. Southern to work towards achieving IiP accreditation for the first time. More staff to receive work-related training and further development of lifelong learning opportunities. See pages 16 and 17 for more information on employees. Extensive stakeholder engagement across the Group by our operating companies, including meetings, consultation, briefings, launches and media events. First virtual Passenger Panels launched. Continue to benchmark ourselves through BITC Index and achieve Platinum rating in BITC in Continue to work closely with stakeholders at all levels; establish and expand new and innovative ways of communicating, e.g. through social media and online. Review charitable donations policy. See pages 18 and 19 for more information on community. The Go-Ahead Group plc Report 7

10 SAFETY Go-Ahead works to strict health and safety guidelines in all its businesses; we also invest in security measures to reassure our passengers and staff and to minimise crime. This year, we have seen the number of accidents on our bus and rail networks reduced. Our companies carry out regular passenger safety campaigns to help highlight and reduce common accidents such as slips, trips and falls.we have also continued to invest in CCTV on our trains, buses and stations to make passengers feel safer and enable us and the police to identify people who are potentially responsible for crime and anti-social behaviour. 92% of our bus fleet and 78% of our train fleet is fitted with CCTV. 57% Stations with secure station status (75 more than last year) 92% Bus fleet with CCTV 10% Reduction in Signals Passed at Danger 6% Reduction in bus accidents We continue to increase the number of train stations with Secure Station Status awarded by the Department for Transport and the British Transport Police.This year, 75 more stations have been awarded the status. Secure Stations are those which meet strict security criteria, including a reduction in crime rates, good stations maintenance, including lighting and CCTV.They also have positive results in an independent passenger survey. New initiatives this year include Southern s Safer Travel Team which has made an instant impact, with 52 arrests made since the team was launched in April.The team, comprising Southern s own Rail Neighbourhood Officers and British Transport Police Officers patrol the Southern network day and night responding to incidents, dealing with low-level crime and taking time to talk with passengers. Southern also introduced Eyewitness, giving its 4,000 employees the chance to help reduce anti-social behaviour on the network by reporting incidents via a dedicated address which is monitored by the 24-hour CCTV centre and Safer Travel Team. Our companies use the footage captured through CCTV to help secure convictions for offences against our passengers or staff. Southern s new SaferTravelTeam includes specialist accredited rail employees supported by BritishTransport Police and has been particularly successful in reducing crime and the fear of crime across the network. 8

11 THE SAFETY AND SECURITY OF OUR PASSENGERS, OUR PEOPLE ANDTHE GENERAL PUBLIC IS AN ABSOLUTE PRIORITY. WE CONTINUALLY STRIVETO IMPROVE OUR ALREADY HIGH SAFETY PERFORMANCE. Sir Patrick Brown, Chairman In Newcastle, a trial with CCTV cameras at bus stops to further improve the feeling of safety for our passengers is currently underway in partnership with Nexus, the Tyne and Wear Passenger Transport Executive. Also, in the bus division, a unique training video called Accidents Can be Avoided, has been produced for our 8,000 bus drivers and is used as part of their Certificate of Professional Competence training.the video aims to raise awareness of bus accidents and how to prevent them and illustrates the importance of efficient management of claim costs if an accident does occur. The Group s health and safety forum has met four times this year and is attended by senior health and safety managers from each of our businesses. It aims to promote health and safety best practice across the Group, develop common standards, share lessons learnt from incidents and act as a focal point for contact between Group companies. Health and safety audits are regularly made at our operating company sites. Recommendations made as a result of the audits are systematically followed up to ensure they have been actioned. CCTV on bus fleet (%) CCTV on rail fleet (%) Bus accidents per million miles Our video,accidents Can Be Avoided, is used across our bus companies as part of our bus driver training programme. Signals Passed at Danger (SPADs) per million miles The Go-Ahead Group plc Report 9

12 ENVIRONMENT Go-Ahead is committed to reducing the environmental impact of our operations by improving our energy efficiency while at the same time providing our passengers with rail and bus services which are of the highest quality, efficiency and convenience. We have set a five-year target for reducing our energy use based on a Group wide strategy known as Driving Energy Further. Our target is to deliver a 20% reduction in CO2 emissions per passenger journey. In the past year we have reduced our emissions by 5%, building on the 4% reduction achieved since Over the next four years we aim to achieve a further 11% reduction in CO2 emissions to reach our 20% target. 9% Reduction in CO2 emissions per passenger journey to date, based on 2007/08 baseline 20% 19% 18% 17% 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Driving Energy Further will encourage innovation and deliver fresh solutions to the challenge of using fuel more efficiently. It will support our day-to-day efforts to encourage modal shift from the car to bus and rail. Our for fuel efficiency this year has been on: Reducing the use of traction electricity used to power our electric train fleets through increasing the number of trains capable of regenerative braking.traction electricity is responsible for 60% of the Group s carbon emissions. Bus fuel-efficiency. Our 3,800 buses are responsible for 30% of our carbon emissions. We have continued to train our drivers in fuel efficient and introduced engine idle shut-down systems to reduce fuel wastage and minimise emissions. Site energy consumption. Fuel consumption at our depots and stations accounts for 7% of our carbon emissions. Keith Ludeman with a Southern Class 337 train. 44% of our electric trains on Southern and Southeastern are braking regeneratively. 10

13 We have invested 8m in initiatives related to these areas of : Regenerate braking we led the rail industry by introducing regenerative braking on the third rail to allow our electric trains to reuse energy generated when a train brakes. In, regenerative braking resulted in an 8% improvement in traction electricity use. Now 44% of our electric train fleets on Southern and Southeastern are braking regeneratively.this has helped us deliver a 14% improvement in traction energy efficiency. Last year, 24% of the train fleet was capable of regenerative breaking. Fuel-efficient we have trained all our bus drivers in fuel-efficient and introduced on-board technology to measure fuel consumption. Onsite energy saving we reduced site energy consumption by 9% in the past year through the introduction of intelligent lighting and smart gas and electricity meters in our depots and train stations. Invested in new buses we have the greenest major bus fleet in Britain. Staff-ed programmes we encouraged our staff to get involved by taking simple steps to reduce energy consumption at work for example, switching off lights and office equipment. CO2 per passenger journey bus (kg) Rail division CO2 emissions per passenger journey (kg) Go-Ahead has one of Britain s greenest major bus fleets. The Go-Ahead Group plc Report 11

14 ENVIRONMENT CONTINUED 22% Reduction in CO2 emissions per passenger journey through site energy efficiencies implemented since 2007/08 44% Train fleet fitted with third-rail regenerative braking systems 15% Improved efficiency in electricity for rail traction use 2% Improvement in bus fuel efficiency 93.1% Our highest ever Business in the Community score* * Demonstrates effective management of environmental, social and governance issues. This year we have met our objective of reviewing our water consumption across our sites. Our operating companies have started installing smart meters and identifying and addressing leaks. We have set a target for cutting our water consumption by10% for next year.this year, we reduced our water consumption by 4%, from 993k cubic metres to 955k cubic metres, the equivalent of nearly 400 Olympic-sized swimming pools. We have also implemented a new Group wide contract to increase the amount of waste recycled, with the contractor specifically appointed to provide a mixed recycling service. Recycling is now embedded in the way we approach running our businesses at Southeastern, for example, 68 tonnes of old newspapers are recycled each month and waste from its London operations is sent to a waste-to-energy plant used to generate electricity. In our depots, we recycle vehicle parts and other waste such as oil filters and batteries. We currently recycle 52% of our waste, and next year we aim to increase that figure to 60%. Bus lanes around Brighton encourage people to switch from cars to buses. 12

15 GO-AHEAD S INVESTMENT IN INTELLIGENT LIGHTING AT DEPOTS IS A GOOD AND EFFECTIVE PROJECT WHICH HAS ALREADY PRODUCED RESULTS. George Muir, Former Director General of the Association of Train Operating Companies after awarding Go-Ahead the New Transit magazine Green Transport Award for its 3m investment in new lighting facilities. Our energy and environmental initiatives are driven by our Group Energy Forum and our Energy Champions who fly the flag in each of our businesses for our energy and environmental initiatives. Through the quarterly forum, our champions share best practice and ideas and discuss new ways of reducing our impact on the environment. Our awards this year The Go-Ahead Group Green Facilities Award, New Transit magazine Green Transport Awards for investing in intelligent lighting at depots. Southern Vectis Sustainable Business of the Year Hampshire & Isle of Wight Sustainable Business Awards. SouthernVectis Large Business of theyear Hampshire & Isle of Wight Sustainable Business Awards. Go North East Green Marketing Award, New Transit magazine Green Transport Awards for the Red Kite bus brand. Southern Vectis Innovation Award, New Transit magazine Green Transport Awards for The Really Green Car Scrappage Scheme. London Midland Mayor of London s Green 500 Silver Award for carbon reduction. Southern Mayor of London s Green 500 Platinum Award for carbon reduction. Southeastern Mayor of London s Green 500 Platinum Award for carbon reduction. Volunteers help to create the UK s first carbon-neutral station improvement project at South Croydon. The Go-Ahead Group plc Report 13

16 PASSENGERS Our passengers are at the heart of everything we do. A commitment to delivering high levels of customer satisfaction is one of our core values and the better our service the more we will encourage greater use of public transport. People make more than one billion journeys with us each year for work or leisure and we strive to make those journeys hassle-free. Every aspect of the passenger journey is important to us accessing information about services, buying a ticket, helpful staff on our trains, stations and buses and clean and punctual buses and trains. It s the end to end journey that counts for our passengers as well as convenient services which represent value for money. 5,730 Secure cycle spaces at train stations 21% Journeys made by passengers using smartcards The National Passenger Survey by Passenger Focus showed that our three train operating companies each achieved their best ever customer satisfaction scores in Spring.The survey showed that the majority of people using Southern, Southeastern and London Midland found the service they received satisfactory or good. Passenger Focus said that satisfaction levels on all three operators had significantly improved on the spring results. In December, Southeastern successfully launched the UK s first high speed domestic rail service, taking people to and from London and Kent.This unique service, which dramatically reduces journey times for many passengers, has been voted a success by passengers, with the National Passenger Survey (spring ) showing that 95% of passengers were satisfied with the new service. Passenger Focus also assessed bus passenger satisfaction for the first time this year. In July, Brighton and Hove Buses were delighted to be placed top of the league for bus passenger satisfaction throughout England, with a 92% satisfaction ranking, making the company s passengers the most satisfied in the country. Across our bus companies, high levels of punctuality on our regulated and deregulated bus operations were maintained. A member of London Midland staff assisting a passenger at Birmingham New Street. LocoToledo, the character featured in Southern s award-winning advertising campaign. 14

17 Over the past 12 months, Go-Ahead has introduced innovative ticket retailing processes aimed at making it easier for our passengers to buy tickets. On Southern, the LocoToledo marketing campaign has led to a rise in leisure travellers buying tickets online rather than from their local ticket office an increase in online sales from 1.5m to 15m in the space of three months. London Midland and Go North East have successfully trialled the key, Go-Ahead s smartcard.the card enables people to top up their Oystercard-style ticket online and cancels out the need to queue up for tickets. The key, which is multi-modal and can be used on both trains and buses, will be rolled out across the Group in the next year. This year saw our rail and bus companies embracing social media, as networking tools such as Twitter and Facebook became a new means of communicating with our passengers quickly and effectively. Metrobus and Go North East signed up to both and used them effectively during the bad winter weather to keep passengers informed of the latest bus service information. Facebook and Twitter users were also able to pass service updates to each other in real time. Our awards this year Southern Travel Information and Marketing Award for Loco Toledo campaign, National Transport Awards. Southeastern Ashford International Station of the Year ATOC National Cycle Rail Awards. London Midland Rail Professional Marketing Campaign of the Year Rail Business Awards. Wilts & Dorset Transport Initiative of the Year, Bournemouth Tourism Awards for the Purbeck Breezer. Brighton & Hove UK Bus Operator of theyear UK Bus Awards. Brighton & Hove City Operator of the Year UK Bus Awards. Bluestar Bus Marketing Campaign of the Year UK Bus Awards. Southern Mitcham Eastfields: Best station London Transport Awards. Deregulated bus punctuality (%) London bus punctuality, excess waiting time (minutes) Rail punctuality (PPM) (%) Certified accessible train stations (%) Go North East uses social media to keep passengers informed. At Go-Ahead we have begun to roll out our own smartcard, the key, across our bus and rail companies, enabling us to provide a higher quality of service to our passengers. The Go-Ahead Group plc Report 15

18 EMPLOYEES At Go-Ahead, we strive to be the employer of choice in the bus and rail transport sectors. Our unique devolved structure engenders empowerment, trust and innovation; it enables our businesses to develop our staff in ways which fit well with the companies objectives and culture and to reward them for contributing to the success of their businesses. We employ over 22,200 people across England. In many of the cities where we operate we are one of the largest employers.we have a responsibility to all our staff to provide a positive working environment and the right tools to enable them to do their jobs. We also want our staff to stay with us and we encourage them to do that by making our companies enjoyable and stimulating places to work.this year, the staff turnover rate was 11.8%, down from 15% last year. Training and development Go-Ahead continued to invest in our staff, delivering a range of training programmes including those ed on customer service, skills training and coaching. Across the Group, 83,000 training days took place. More staff acquired NVQ qualifications in our companies at Southeastern, 40% of its 3,700 employees now have an NVQ. In our rail division, a new customer service training programme was launched for customer-facing staff and in our bus division we completed the roll out of our safe and fuel-efficient course. We also offer our employees opportunities to improve their skills through lifelong learning courses.this year saw Go North East open its first lifelong learning centre at its Stanley depot, giving staff the opportunity to learn new skills such as a foreign language right in the heart of the workplace. More of our businesses achieved Investors in People (IiP) status this year. IiP is the UK s most widely recognised people management standard which drives business improvement. Southeastern achieved Bronze status and Go North East retained its accreditation for the seventh year in a row. Southern aims to achieve IiP for the first time by September Involving our employees We aim to involve our staff in the way we run our businesses. Each of our companies has in place a comprehensive internal communications structure enabling timely communication to staff about key issues and decisions. Also in place are opportunities for staff to provide feedback and raise questions with Directors and senior managers through Ask the Executive sessions and staff forums. We measure staff engagement through one-to-one feedback sessions and employee opinion surveys.this year saw Southern carry out its first survey during the new franchise, which commenced in September. 37% of staff (1,500 people) took part in the survey and highlighted areas which are working well, together with areas that can be improved upon.the survey will be carried out every year for the next five years. Staff are also represented on our companies Stakeholder Advisory Boards and have the opportunity to provide input into the decision-making process. Staff on Oxford Bus Company s board have this year provided input into discussions around the reliability of the online booking system, and driver announcements regarding seatbelts on express coach services operated by Oxford Bus. Plymouth Citybus driver Sue Fahy at the wheel. Number of employees (%) 0.24% Bus 11,618 Rail 10,267 HQ % 46.80% 16

19 OUR STAFF ARE CRITICALTO OUR BUSINESSES THEY HELP US DELIVERTHE QUALITY OF SERVICE FOR WHICH WE ARE RENOWNED. Keith Ludeman, Group Chief Executive Many of our employees are represented by trade unions. Membership is around 66%. We work closely with the unions on a range of issues, including the development of learning centres. Staff safety The safety of our staff is key to our approach to running our businesses. We work continually to reduce injury and accidents at work.the Group Health and Safety Forum regularly reviews performance trends to drive safety improvements. Staff receive regular safety briefings and our companies encourage managers to carry out site safety tours.these provide them with an opportunity to spend time out on the network, meet staff and discuss safety-related issues. Our businesses report on RIDDOR accidents per 100 employees (Reporting of Injuries, Diseases and Dangerous Occurrences Regulation).This is a statutory requirement for all companies and relates to a workplace incident which results in loss of work for over three days or an incident which is legally reportable to the Health and Safety Executive. Over the past 12 months, the rate of RIDDOR accidents per 100 employees has reduced by 16%, down to 1.4 from 1.76 last year. In January, our former company Aviance was fined 90,000 following the death of an employee at Heathrow Airport in. We deeply regret this incident. At the time of the fine, the judge commented that Aviance had an excellent safety record before the accident, and had acted swiftly to remedy the factors behind it. We take a zero tolerance approach to staff assaults in the workplace and offer our customer-facing staff conflict avoidance training. We work closely with the police to improve the prosecution of offenders and encourage our staff to report antisocial behaviour. We recognise the need to do even more in this area to reduce the risks of our staff s exposure to assaults. Each of our companies has a strategy in place aimed at reducing staff assaults including improving CCTV coverage on buses and trains, improving levels of security on stations and car parking areas and improving the levels of reporting of assaults. RIDDOR accidents per 100 employees 8 years 6 months average length of service 10.9m spent on staff training this year 64% of employees in a union Cyclists and bus drivers swapped seats for a day in Brighton city centre during summer to highlight the risks they both face The Go-Ahead Group plc Report 17

20 COMMUNITY Our rail and bus services have a key role to play in the communities they serve, taking people to work and other destinations. Our staff interact daily with our passengers and other stakeholders. We aim to provide quality transport services and work constantly to improve them, using feedback from the communities we operate in. We also strive to be a positive presence in our local communities, supporting them through a range of activities and partnerships which contribute to the life of the towns and cities we serve. This year, our businesses carried out around 1,450 stakeholder meetings with our varied stakeholders including MPs, passenger representatives and local authorities. For Go-Ahead, engaging with our stakeholders keeps us in touch with the local community s aspirations for bus and rail services. 1,450 stakeholder events involving external stakeholders, eg central/local government, passengers, community groups 255k donated to charities and community groups This year Southern won the top prize at the Association of Community Rail Awards.The awards recognise excellence in community rail development and the work that ordinary people do on behalf of the railway and the community. Southern and the Sussex Community Rail Partnership (CRP) won the top award having been judged to have contributed most to the community rail development strategy. Southern and the CRP have this year launched the new Station Partnership Scheme which involves local communities and groups in developing facilities at their nearest train station. We work closely with local authorities to deliver improvements to our services. Plymouth Citybus is working with the City Council to expand the real-time passenger information network and improve bus punctuality. In Brighton, the City Council and the Highways Agency are working with Brighton and Hove Bus Company to raise cyclists awareness of the dangers of passing a bus on the inside. We also actively support community partnerships to improve the neighbourhoods we serve. Despite the recession, our companies have continued to support charities and community groups, with over 250,000 spent in support of a wide range of local initiatives. They include: Metrobus and Go North East working with local schools to improve pupil behaviour.the It s Your Choice workshops in Newcastle aim to tackle anti-social behaviour by encouraging children to perform a play on the subject. At Metrobus, students are invited to the company s bus depot to see the results of anti-social behaviour such as stone-throwing at first hand; Plymouth Citybus Dennis Dart project gives primary school children opportunities to explore a bus in their own school playground and make bus travel both fun and safe; Brighton and Hove celebrated its 75th anniversary with a bus rally in the heart of Brighton.The rally was attended by people from all over the city and money raised from the sale of souvenirs marking the anniversary was donated to the Martlets Hospice and Argus Appeal; Go-Ahead London helped evacuate local residents following two fires, transporting one group to a local leisure centre and, on the second occasion, making residents feel welcome in the company s Camberwell depot canteen; Oxford Bus has worked with the Oxford Preservation Trust on Open Doors, Open Minds, a scheme which offers a behind the scenes glance at some of Oxford s lesser known places.the company has strengthened its ties with the Ashmolean museum, supporting its successful relaunch and new gallery openings by providing complementary advertising space with a value of 19,300; Go South Coast s three businesses Wilts and Dorset, Southern Vectis and Bluestar all support local charities; Southern Vectis provides free buses for the Walk the Wight event which raises funds for the Earl Mountbatten Hospice; Find out more about Community Rail Partnerships and the awards at

21 Southeastern s chosen charity this year is Help for Heroes, the charity for soldiers wounded in Britain s current conflicts; Southern s new Station Partnership Scheme got underway and resulted in some novel new methods of community engagement, including a converted milk float being used as a fruit and vegetable stall at one South London station; and London Midland has supported the Chernobyl Children Lifeline providing free rail travel for ten children from Belarus staying with families in Worcestershire. In June, we achieved our highest ever score in the Business in the Community s (BITC) Index, securing a gold standard for the fourth year in a row. BITC rates companies on their progress in the areas of community, environment, workplace and marketplace. We aim to achieve the platinum standard in 2011 by demonstrating that CR is embedded in strategic decision-making and incentive structures. Our awards Transport for London Smarter Travel Award for Travelmate, the Go-Ahead London project which helped 79 people with learning disabilities gain the confidence to travel unaided on public transport and increased the understanding and patience of Go-Ahead London s bus drivers. Southern Local Station Environment South Croydon (National Community Rail Awards). Southern Outstanding Railway Staff Contribution Laura Englestone, Crowborough Station (National Community Rail Awards). Southern Station Development Bexhill Station (National Community Rail Awards) Southern Community Art Schemes Oxted Artwork competition (National Community Rail Awards). Southern Southern/Sussex Community Rail Partnership Overall Winner (National Community Rail Awards). Brighton & Hove, Roger French, Managing Director Community and Stakeholder Management Award, Passenger Transport Management Awards. Oxford Bus Company is proud to be part of its community and supported the OxClean campaign to clear litter from the city. The 75th Anniversary Rally held on Madeira Drive in June was a huge success with thousands of people attending. The Go-Ahead Group plc Report 19