THE GO-AHEAD GROUP PLC

Transcription

1 THE GO-AHEAD GROUP PLC ENVIRONMENTAL & SOCIAL REPORT

2 CHIEF EXECUTIVE S STATEMENT We believe that public transport is an essential element of any successful economy. We are committed to meeting what our communities need integrated, accessible and efficient transport systems. We believe that all companies should take a responsible approach to business. This report is part of our commitment to that principle. We are proud of our performance and our aim is to lead our sector in meeting our responsibilities Group overview - About Go Ahead - Our operations - What corporate responsibility means for our business 04 Introduction - Our responsibilities - Our approach to reporting - Stakeholder consultation Bus operations Our buses carried over 500 million people this year, playing a vital role in reducing congestion and tackling social exclusion. We report on our performance in the following areas of responsibility for a bus operator: Marketplace 6 Workplace 8 Environment 10 Community 12 Rail operations We operate the Southern and Southeastern rail franchises connecting London with the South Coast. Southern has transformed the service since taking over the failing South Central franchise. We explain how meeting our key responsibilities influenced that transformation: Marketplace 14 Workplace 16 Environment 18 Aviation support and parking We offer ground handling and parking services at 17 airports in the UK and Ireland. Our parking management company also provides specialist security advice. We report how our companies performed in meeting their following key responsibilities: Marketplace 22 Workplace 24 Environment 26 Performance data - CR performance data from Go-Ahead companies - Verification and Audit statement - Business in the Community CR Index ranking Community 20 Community 27 The photograph on the front cover is owned by Keolis (UK) Limited and is subject to copyright protection. All rights reserved. Used by permission. We are dedicated to protecting our passengers, employees and customers. We involve local communities in improving our performance. > See page 27

3 Go-Ahead Environmental & Social Report Environmental and social responsibility is fundamental to the success of the Go-Ahead Group. Some say that companies must make a choice between profits or responsibility. As a public transport company, we have long taken a different view: our long-term profitability absolutely depends on a responsible approach to business.this is not altruism, but recognition that we will only achieve our business goals by working in partnership with the stakeholders in each of our businesses. Public transport plays a central role in the competitiveness of the UK. We believe that towns and cities where the traffic moves easily and quickly will do better than those blighted by traffic congestion.the UK has particular challenges in that much of its transport infrastructure was shaped by conditions of over a century ago. We believe that our services can play a vital part in the solution. Our primary responsibility is to attract more people onto our buses and trains. We are particularly proud of our success in increasing our bus passenger numbers against a backdrop of falling passenger numbers outside London in the industry as a whole. We have achieved this through increasing service frequency, offering high standards of comfort, making our fares easy to understand and affordable and investing in easy to board carriages and vehicles. We partner with City Councils and Network Rail to help focus infrastructure investment in areas that improve the reliability and accessibility of our services. Climate change is one of the most important issues we face. Attracting people to get out of their cars and onto buses and trains for some or all of their journey has an immediate beneficial impact, but we believe this is not enough. We have a longstanding programme to reduce our emissions footprint and pride ourselves on leading our industry both in what we do and the openness with which we report our progress. The central ingredient to the Go-Ahead Group ethos is our devolved management structure. Each of our operating companies make local decisions within a shared framework for managing responsibility; this structure allows local companies to respond to the needs of local communities. Last year Go-Ahead pioneered individual company reporting to reflect the Group s devolved philosophy.this is being repeated this year. We believe that we have the right policies and programmes in place. We have also enjoyed external recognition, rising 15 places in the Business in the Community Corporate Responsibility Index to be 54th in the top 100 companies.this is a major achievement for a company of our size. I am delighted to promote Go-Ahead initiatives in this area. I am committed to ensuring our businesses are both profitable and sustainable. Please also see for a full web based report. Keith Ludeman Group Chief Executive We are dedicated to minimising the environmental impact of our buses. Independent research confirmed we have the most environmentally friendly bus fleets in Britain. < See page 11 Engaged and committed employees who care about the satisfaction of our customers is vital to our success. > See page 16

4 2 Go-Ahead Environmental & Social Report 2006 GROUP OVERVIEW The Go-Ahead Group is a major provider of transport services across the UK employing over 24,000 people and carrying around 800 million passengers journeys annually. Our operations span the following: Bus services in the South and North East of England, the West Midlands and London Commuter rail networks in London and the South East of England Parking services at airports, railway stations, shopping centres and hospitals across the country Aviation ground handling services across the UK and the Republic of Ireland Our business strategy is to focus on cities and communities where there is economic growth and strong local authority support for public transport. Our companies operate within a shared vision of their responsibilities towards local communities and the environment; however, within this framework we believe in empowering local people to make local decisions about local services.this approach is distinctive within the UK s public transport sector. Benchmarking our performance In order to benchmark and strengthen our corporate responsibility performance, we participate in the Business in the Community (BITC) Corporate Responsibility Index, the Business in the Environment Survey and FTSE4Good. For the second year, we came top of the public transport companies that participated in Business in the Community s Corporate Responsibility Index. We scored 89%, a further significant improvement, and were ranked 54th out of the top 100 Companies that Count, up from 69th last year. In the environment index, we did even better, improving our score to 91.5% including maximum marks for our performance on emissions management. Our listing on the FTSE4Good series of indices demonstrates that we meet globally recognised corporate responsibility standards. The business case for a responsible approach Adopting a responsible approach delivers the following competitive advantages for Go-Ahead: A reputation as a responsible company amongst both local communities and transport policy makers Increased access to capital from investors, particularly Socially Responsible Investment (SRI) funds The ability to recruit and retain good people. We believe that a modern transport system should be comfortable and reliable for all and have the minimum environmental impact possible. Demonstrating our ability to fulfil this vision will help us to grow our business. Go-Ahead BITC score in CR index (%) Go-Ahead BITC score in Environment index (%) Revenue ( m) ,463 1,302 1,244 1, Dividend (p) Cash flow ( m) Operating profit before tax ( m)* *Before exceptional items and amortisation

5 Go-Ahead Environmental & Social Report NATIONAL OPERATIONS BUS ABERDEEN BUS NORTH EAST OPERATIONS WEST MIDLANDS OPERATIONS AVIATION SUPPORT AND PARKING: AVIANCE METEOR PLANE HANDLING GLASGOW EDINBURGH BELFAST CITY NEWCASTLE BELFAST INTERNATIONAL DURHAM TEESSIDE DUBLIN BLACKBURN BIRMINGHAM LEEDS/BRADFORD MANCHESTER BOSTON NORWICH KINGS LYNN LOWESTOFT BANBURY LEAGRAVE ROYSTON CHELMSFORD IPSWICH OXFORD LONDON STANSTED CARDIFF LONDON LUTON HATFIELD SWINDON LONDON HEATHROW DARTFORD SALISBURY CROYDON MAIDSTONE PURLEY ASHFORD LONDON GATWICK SOUTHAMPTON POOLE BRIGHTON BOURNEMOUTH ISLE OF WIGHT RAIL JERSEY Operations in the South SWINDON OXFORD WATFORD JUNCTION CLAPHAM JUNCTION HEATHROW AIRPORT WATERLOO EAST VICTORIA CHARING CROSS BLACKFRIARS CANNON STREET LONDON BRIDGE WOOLWICH ELTHAM SIDCUP DARTFORD FAVERSHAM CHATHAM SHEERNESS-ON-SEA SITTINGBOURNE AVIATION SUPPORT AND PARKING SUTTON BROMLEY SOUTH ORPINGTON SEVENOAKS EAST CROYDON MAIDSTONE MARGATE RAMSGATE CANTERBURY PURLEY REDHILL CRAWLEY HORSHAM GATWICK AIRPORT THREE BRIDGES EAST GRINSTED TONBRIDGE TUNBRIDGE WELLS RYE HASTINGS ASHFORD INTERNATIONAL DOVER FOLKSTONE HAYWARDS HEATH UCKFIELD SALISBURY EASTBOURNE SOUTHAMPTON BOURNEMOUTH POOLE PORTSMOUTH ISLE OF WIGHT BOGNOR REGIS LITTLEHAMPTON WORTHING BRIGHTON LEWES SEAFORD SOUTHERN SOUTHEASTERN EXPRESS COACH SERVICE BRIGHTON & HOVE METROBUS LONDON CENTRAL & LONDON GENERAL OXFORD BUS COMPANY SOLENT BLUE LINE SOUTHERN VECTIS WILTS & DORSET AVIANCE METEOR PLANE HANDLING

6 4 Go-Ahead Environmental & Social Report 2006 INTRODUCTION Our responsibilities This report describes our performance for the 12 months to 1 July It is divided into four main sections, which describe the impacts that we have on the world around us, and how we approach managing these responsibly: Marketplace how we run our services Workplace issues that affect the people who work for us Environment how we manage and reduce our impact on the environment Community making the communities where we operate better places to live and work The case studies included in these pages show some examples of how our companies meet their responsibilities in these areas. We have changed the way that we manage corporate responsibility this year, establishing a set of key performance indicators that are regularly reviewed by the Go-Ahead Group Board of Directors.These key performance indicators are published in the relevant sections throughout this report. We have also integrated the setting of targets for our social and environmental performance into our wider operating and financial planning. To keep this report short, we have placed a lot more information on the web ( It is also possible to view our past reports on the website. SECTIONS Marketplace Issue Reliability, convenience and punctuality of services Affordability for people on low incomes Accessibility for all, particularly people with disabilities Our responsibilities Our responsibility is to run our services to timetable and ensure that passengers have a positive journey experience Our responsibility is to help as many people as possible to use our services Our responsibility is to help as many people as possible to use our services Our response All our businesses have metrics to measure our performance. Our aim is to satisfy our passengers every time they travel with us. It is not possible to get it right all of the time, so each of our companies has a complaints procedure in place Our companies run a range of schemes that offer reduced rate services for particular groups older people, off peak travellers and young people When our companies invest in new buses and trains, we make sure that the design takes into account ease of access for everyone. We train our employees to be a practical help to people in need of assistance

7 Go-Ahead Environmental & Social Report Consulting our stakeholders We developed our responsibility grid (below) following a structured programme of consultation with passengers, employees, representative bodies and others.these discussions on the issues that mattered most to our stakeholders confirmed that our most important responsibility is to increase the use of public transport.the consultation process also identified the key factors that influence the public s use of bus and train services: Reliability, convenience and punctuality Accessibility for all Safety and security Affordability At the same time, our stakeholders expected us to manage and reduce the negative impacts of road transport, particularly: Emissions contributing to climate change Local air pollution Noise Congestion One of our principle responsibilities is to minimise the environmental impact of our vehicles. Notes on the scope of the report This year we report for the first time on Southern Vectis, Solent Blue Line and Go West Midlands. Go West Midlands also acquired People s Express during the reporting period. In April 2006, we were awarded the Southeastern rail franchise. As this happened towards the end of the reporting period, data relating to Southeastern will first be included in next year s report. The Thameslink franchise previously operated by Go-Ahead came to an end in March No data relating to Thameslink is included in this year s report and it has also been removed from previous year figures. Public transport is integral to communities, and our stakeholders encouraged us to play a full part in local communities where we operate. We also asked our stakeholders how we should report on corporate responsibility and have responded to their feedback in the following ways: Developing our responsibility grid Setting and reporting on measures of responsibility relevant to our issues Communicating our performance locally as well as at Group level. Workplace Environment Community Safety and security Being a good employer Improving our environmental performance Forming strong relationships with local communities Our responsibility is to ensure the safety and security of passengers, our employees and the general public Our responsibility is to provide a positive work environment conducive to the recruitment and retention of staff Our responsibility is to minimise the environmental impact of our buses and trains.this includes emissions and noise Understanding and support from stakeholders is a basic requirement for running and expanding our services Safety and security is a board-level issue for all our companies. We are committed to deterring any physical or verbal abuse of passengers or staff. We have invested in CCTV technology and staff training, and use the expertise of our specialist security company. We prepare for major incidents such as acts of terrorism We are committed to being a good employer. We treat people fairly regardless of gender, race, age or where practical, disability. We have invested in recruitment, personal development opportunities and training We have invested heavily in new buses and trains as well as emissions-reducing technology such as particulate traps on buses and emission reducing fuels. Maintenance of our vehicles is a priority for us We are active participants in local communities. We invest in improving the transport infrastructure and work with our partners on local initiatives to reduce congestion. Our operating companies offer in-kind support to local charities

8 6 Go-Ahead Environmental & Social Report 2006 MARKETPLACE: BUS OPERATIONS Our responsibilities in the marketplace Last year, we carried over 500 million passengers on our fleet of 3,609 buses. Our operations span essential local bus services, longer distance travel and park and ride schemes. Our buses run seven days a week and sometimes 24 hours a day.together they covered over 230 million kilometres last year. Buses play a vital role in the economic wellbeing of local communities. Reducing car usage eases congestion and improves air quality. Bus services also help to protect vulnerable groups from the dangers of isolation in a world that is increasingly geared towards the private car. Our commercial imperative is to increase bus usage. It is also the most important responsibility we have to local communities and the environment. However, this is a difficult goal to achieve. As incomes rise, bus usage falls, and this has had a noticeable impact on passenger numbers across the UK. We are proud that some of our bus companies are among the few outside London that are increasing the number of passengers they carry each year. This year, we report for the first time on our newly acquired operations: Southern Vectis on the Isle of Wight, Solent Blue Line in the Southampton area and Go West Midlands.These businesses are working to raise their standards of corporate responsibility performance towards those achieved by the rest of the Go-Ahead Group. Through consultation with our stakeholders, we identified the four main factors which help to increase bus usage as: Reliability, convenience and punctuality All our bus companies are committed to increasing service frequency, comfort and reliability.we are introducing technology that provides real-time information at bus stops, online and via mobile phones. Investing in a modern transport system is the key to attracting passengers out of private cars and onto our buses. The changes made by Wilts & Dorset since its acquisition in 2003 typify Go-Ahead s approach. Last year, an extra 750,000 people travelled on Wilts & Dorset services.the hugely popular more routes increased passenger numbers by over 50% through offering new standards of comfort and convenience.the more services benefited from increased frequency, larger buses, more seats, easier access, air conditioning and heating.the launch of this new service won Wilts & Dorset the marketing award at the UK Bus Awards. This year, Wilts & Dorset carried out a major review of its entire route network, the first since February Following consultation with passengers, the company introduced a clearer timetable with more frequent buses on main roads and distinctive new services such as the Wimborne Flyer. Reliability, convenience and punctuality Affordability Accessibility for all Safety and security Our devolved structure allows our companies to develop bus services around the needs of local people.this approach has delivered a broad range of initiatives to improve performance in these areas. Other initiatives Metrobus continues its dramatic growth carrying an extra 3 million people in the last year.the groundbreaking Gatwick Fastway service continues to set the standard in the industry for a modern bus service, with patronage up by a staggering 40%. Customers for our other bus services in the Crawley area are also up by 25%. London Central and London General consistently top the quality of service league tables compiled by Transport for London.These tables show mileage and reliability information and compare outcomes against minimum performance standards, benchmarks and network averages. In the first quarter of 2006, we were top of four of the seven quality tables. The hugely popular more routes increased passenger numbers by over 50% through offering new standards of comfort and convenience.

9 Go-Ahead The Marketplace: Bus Operations 7 Affordability for people on low incomes: bus ID Isolation is a major issue facing society. Over the last 20 years, centres of employment have shifted and new housing, shopping and other leisure attractions are increasingly developed at the edge of towns and cities. For households without a private car, bus services are often the only way to access these facilities and the affordability of these services is therefore hugely important. All our bus companies focus on affordability as an issue. In partnership with the Isle of Wight Council, Southern Vectis runs the Job Hunter scheme giving anyone seeking employment free travel on all its bus services. Island residents over 60 and eligible disabled residents can also get free travel any time, any day. Residents under the age of 19 who are in education pay a flat fare of 50p for travel anywhere on the Island at any time and Southern Vectis is working on a similar flat fare scheme for all passengers. Another example is the innovative Bus ID scheme pioneered by Brighton & Hove, which provides discounted fares to young travellers and has been adopted by several of our other companies. Accessibility for all: low floor buses A decade ago, the number of buses accessible by wheelchair stood at only one in 12.The advent of low-floor buses fitted with powered ramps helps to make bus travel accessible to all. Go-Ahead has a Group policy that all new buses will be low-floor and fitted with ramps. We set a target that over 65% of our fleet would be low-floor. Despite our acquisition of new companies with a much lower proportion of low-floor buses, we achieved 78%. Go North East pioneered the idea of an Easy Access Guarantee on its bus network. Last year, 75% of regular daily services operated with the Easy Access Guarantee that the bus would be low-floor and carry a ramp. Following a major review, Go North East has improved this rate to almost 100% of all frontline services. Go North East has worked with Nexus, the regional transport body for the North East, to make the Easy Access Guarantee standard across all the region s Superoutes, regardless of the bus operator. Our responsibility: safety and security Safety of passengers, employees and the general public is an absolute priority for us and all our operating companies have invested in developing comprehensive health and safety management systems. Installation of CCTV equipment across our fleets has helped detect and deter crime. Our approach is to ensure that every employee takes personal responsibility for health and safety improvement and we support this through extensive training, safety committees, union consultations and risk assessments. We encourage employees and passengers to raise any issues of concern. A particular focus is road safety. Metrobus has focused on improving driving standards and has seen the number of road traffic accidents involving its vehicles fall for each of the last three years, despite everincreasing volumes of traffic and expanded services. In a recent independent driving standards survey for Transport for London, Metrobus came fourth out of 16 bus companies. Along with many of our other companies, Metrobus has also invested in CCTV equipment to detect and deter crime whilst improving personal safety and passenger confidence.the proportion of the overall Metrobus fleet carrying CCTV is now 92% and the company has achieved 100% coverage for regular daily services. Metrobus has also supported a campaign in schools to increase respect for buses, bus drivers and other passengers. Other initiatives London Central and London General are part of a city-wide crackdown on vandals responsible for graffitti and window etching on buses.this involves monitoring ten pristine buses and supplying CCTV images to the police for use in prosecutions.the companies shop-a-yob campaign with a local Bexleyheath newspaper is another successful crime prevention scheme. Passenger journeys Total vehicle kms travelled (including ancillary vehicles) 505m 250m Passenger vehicle kms 236m Fleet with low floor access (%) Scheduled kms operated 98.74% VOSA PSV vehicle test pass rate Fleet with CCTV (%) Our average 97.4% National average 85.3% Vehicle accidents per million kms travelled

10 8 Go-Ahead Environmental & Social Report 2006 WORKPLACE: BUS OPERATIONS Our responsibilities in the workplace Our success as a bus service is dependent on having satisfied, committed and skilled employees who feel responsible for the passengers they carry. Over 75% of our employees are drivers and their direct contact with passengers shapes our reputation as a business. We carry out health and safety refresher courses for all our directors, managers and engineering supervisors. Together, the Go-Ahead bus companies employ almost 11,000 people. In many centres, our bus companies are among the largest local employers. A challenge facing the bus sector is staff turnover due to a combination of shift work and driving-related stress. We are committed to offering a competitive package of benefits and invest in training and development to help recruit, retain and motivate good people. Other initiatives The Wilts & Dorset Learning Bus initiative, launched in partnership with Rail Union Learning is now two years old. A bus donated by Wilts & Dorset has been transformed into a highly successful learning centre that runs a range of personal development courses, including computing, languages and sign language. Our responsibility: training and development All our companies offer extensive driver training for new drivers and regular refresher courses.this helps our drivers to manage the stresses of driving and be responsible road users. Customer service training is a particular focus for us. London Central and London General were the first London bus companies to rise to Transport for London s challenge that bus controllers should gain BTEC accreditation in customer service.they were also the first to extend that programme to drivers. Our commitment to training was featured on the BBC TV series, the Big Red Bus. Personal development opportunities are also very important in helping retain staff.this year, Stockwell Garage participated in the BBC Reading and Writing campaign by setting up an informal lending library. Some of the employees based at Stockwell speak English as a second language and value the opportunity to develop their reading skills. Our responsibility: investing in people Developing and motivating people have always been a priority for Go West Midlands.This was why the company was the first public transport company in the West Midlands to secure Investor in People accreditation, a nationally recognised standard signifying that employees have access to the knowledge, skills and motivation they need. As an early adopter of the standard, Go West Midlands shares its experience with other businesses in the region.

11 Go-Ahead The Workplace: Bus Operations 9 Our responsibility: diversity and equality It is important that our workforce reflects the communities that use our services. Diversity amongst our drivers, for example, allows us to be more sensitive to the needs of diverse passengers. Each of the Go-Ahead companies has an equal opportunities policy and reflects this in procedures for recruitment and management of staff. The Oxford Bus Company is an active member of the Oxfordshire Employers Race Equality Network (OEREN), a group of employers that meet to share experience and good practice. Last year, the company consulted employees from diverse ethnic backgrounds on working conditions and used their feedback to revise its approach to recruitment. This year, over 20% of new recruits came from ethnic backgrounds. Traditionally, the bus industry has been male-dominated and the number of women employed continues to be relatively small. A number of companies, including London Central, London General and Go North East, have worked to change perceptions through updating their familyfriendly policies and changing their advertising and shift patterns. Diversity by gender Male 9,755 Female 868 Total number of employees * Including employees from Damory Coaches, Tourist Coaches and Hants & Dorset Trim (all part of Wilts & Dorset) where gender has not been supplied. * 10,803 Our responsibility: staff turnover The reliability of our services is dependent on having enough drivers at work to run them. Bus driving is a challenging occupation involving unpopular hours and stress, so working to reduce staff turnover is essential. All our companies have worked to reduce the rate of employee turnover and the Group-wide rate has fallen by 5% this year.the initiatives adopted by different companies include improved communication, employee magazines, more management flexibility and staff suggestion schemes. Companies have also set up employee boards to provide a forum for discussion. Diversity by age 16-19: 0.5% 20-29: 11.6% 30-39: 23.0% 40-49: 30.8% 50-59: 25.0% 60-64: 7.6% 65+: 1.5% Our responsibility: getting closer to our customers All our companies have put programmes in place to bring employees closer to their passengers. Some of these relate to training, but Go Wear is also making significant changes to the structure of its services. The company has created smaller, focused driver teams for dedicated, branded routes. It is also linking pay to standards of customer service. Our responsibility: health and safety Each of our operating companies has a comprehensive health and safety management system, with all employees encouraged to take personal responsibility for improving performance. Health and safety training is provided for both new and existing drivers and managers and supervisors in our engineering departments pursue external health and safety qualifications. We review our performance on a weekly basis and use a specialist external consultancy in addition to our own risk assessments. Our responsibility: employee dialogue Our bus companies recognise a range of trade unions and work closely with them.these include the General Municipal Boilermakers Union (GMB), the Transport and General Workers Union (TGWU) and the National Union of Rail, Maritime and Transport Workers (RMT). All have regular meetings to review employee conditions and company strategy. The Oxford Bus Company was the first bus company in the UK to set up a Stakeholder Board, bringing together employees, individual passengers, large employers and representative bodies to discuss how services might be improved.this model of engagement has been adopted by other companies in the Go-Ahead Group. David Nicholson (left) and Stephen Williams of Go North East with their certificates at NVQ level 2 in Road Passenger Transport.

12 10 Go-Ahead Environmental & Social Report 2006 THE ENVIRONMENT: BUS OPERATIONS Our responsibilities to the environment Concerns over environmental issues have never been more acute. Greenhouse gases, in particular those released by burning fossil fuels, are now widely acknowledged to be responsible for climate change. In the first years of this century, floods, storms and drought have shown how vulnerable the UK is to the weather. Public transport has an important role to play in any environmentally sustainable solution.transport accounts for almost one-third of all emissions and must play a key role in meeting the UK s target to reduce carbon dioxide emissions by 60%. Issues of congestion and air quality are also high on the local agenda. Buses are a vitally important means of tackling emissions, local congestion and air quality as more people can travel by bus than by private car. Overall, buses represent only 1% of vehicles on the roads but carry 6% of all passengers. We believe it is also our responsibility to make our buses as environmentally responsible as possible. At Go-Ahead, we are passionate about environmental responsibility. We are proud that our investment programme over the last 10 years has meant that we now have consistently the most environmentally friendly bus fleets in Britain. Our main environmental impacts With over 3,600 buses, our most significant impact relates to exhaust emissions, which effect local air quality and global climate. Congestion can intensify the impact of emissions on local air quality. A range of factors effect emissions levels, including the age of vehicles, use of particulate traps, fuel types, passenger numbers per vehicle, maintenance regimes and driver techniques. We have invested in each of these areas to reduce our impact. Depots, garages and offices use energy for maintenance, heating and cooling. We also use water to clean our buses. We set reduction targets for our energy use, invest in water recycling and also recycle parts where we can. We report on these in more detail on our website ( report will focus on air emissions as by far our most significant impact. Our purchasing strategy The age of the engine is an important determinant of environmental performance. Each generation of engine introduces new standards of fuel efficiency. At a European level, fuel efficiency standards for five generations of engine have been defined and engines can be characterised as Pre Euro, Euro I, Euro II, Euro III, Euro IV and Euro V. London Central are trailling electric hybrid buses on TfL routes. This year, London Central and London General became the first transport providers in the UK to introduce regular buses powered by Euro IV engines.this 5 million investment in 39 new buses also delivered new standards of fuel efficiency through lighter vehicles. Euro V engines are yet to be introduced into the UK market. Our vehicle purchasing policy is to specify that new vehicles should comply with the latest available Euro standard.this was Euro III last year and is currently Euro IV. Additionally pre-euro IV vehicles, where appropriate, have been fitted with Continuously Regenerating Traps (CRTs) or equivalent technology. The average age of the Southern Vectis, Solent Blue Line and Go West Midlands fleets is well above the group average.the addition of these companies has affected the Group performance figures such as increasing the average age of the fleet and reducing the percentage of the fleet fitted with CRTs. If the new acquisitions were excluded, key indicators such as the percentage of the fleet fitted with CRTs and emissions of particulate matter per passenger journey would have again shown an improvement.the new companies investment programmes will improve performance towards the high standards expected by Go-Ahead over the next few years. Our main responsibility is to attract customers away from the private car and investment in this area can have a negative impact on vehicles environmental performance. Newer buses use energy for air conditioning, but we believe that increasing comfort and therefore passenger numbers will deliver an environmental return to outweigh this. Vehicle maintenance and emissions treatment Fleet maintenance is critical in controlling emissions. We operate a rigorous maintenance schedule including an emissions test up to every five weeks. We invest in the latest emissions-testing equipment and our systems are independently assessed by the Vehicle Operator Services Agency (VOSA), which carries out annual and random emissions tests. Virtually all our companies achieved a 100% pass rate in these independent tests. Exhausts fitted with add-on technology can also reduce emissions, sometimes by up to 90%.The most significant technology continues to be Continuously Regenerating Traps (CRTs). We have pioneered the practice of retro-fitting these to our existing fleet and some of our companies now have CRTs fitted to all their vehicles. We have not identified a viable alternative to CRTs but we continue to investigate all options.

13 Go-Ahead The Environment: Bus Operations 11 Fuel types Go-Ahead continues to use Ultra Low Sulphur (ULS) Diesel as standard for its fleet. ULS is more environmentally friendly than the standard grade of diesel, reducing particulate emissions by 40%. We also continue to investigate alternative fuels. Last year, Go North East carried out a trial of a bio-diesel fuel made in part from natural renewable sources such as vegetable oils.the pilot was a success and the Go North East fleet has switched to bio-diesel. We also carried out extensive testing of hybrid buses at London Central, London General and Meteor. Hybrid vehicles operate using a combination of a conventional diesel engine and an electric motor; the companies investigated whether they could reduce emissions by at least 30 per cent whilst maintaining standards of reliability. Unfortunately, the engines as yet have failed to deliver the necessary standard of reliability, and may not be adopted across the Group. Our responsibility: raising environmental awareness An independent study carried out by The TAS Partnership, one of the most respected transport consultancies in the UK confirmed that Go-Ahead had the most environmentally friendly bus fleets in Britain. The study compared the fleet composition of the 111 largest bus companies in the UK outside London and modelled their vehicle emissions.the Oxford Bus Company s carbon monoxide, particulate matter and hydrocarbon emissions were the lowest in the study. Go Wear, Go Gateshead (part of Go North East) and Brighton & Hove were consistently ranked in the top five. Oxford Bus Company was proud of its achievement and keen to communicate it in an engaging way.the company introduced a star rating system on its buses to show how environmentally friendly each one is. The stars are based on independent standards set by the European Environment Agency, which range from no stars to four stars. All Oxford Bus Company buses are either three or four-star. Full details can be found at VOSA emissions pass rate Our average pass rate % of fleet with Euro II engines or above % of fleet with CRT Average age of fleet (years) Emissions NOx (g) per passenger journey Emissions PM (g) per passenger journey Emissions CO 2 (g) per passenger journey Emissions CO (g) per passenger journey Emissions HC (g) per passenger journey Go-Ahead BITC score in Environment index (%) Our responsibility: measuring our performance The Go-Ahead Group again participated in the Environment Index, improving our score to 91.5%, which included maximum marks for our emissions management performance. * This year, we updated the way we calculate our emissions. Our and emissions have been restated using the new system and this will be our new baseline. Our full report on the web provides emissions data using both the previous system of calculation and the new data as published above.

14 12 Go-Ahead Environmental & Social Report 2006 THE COMMUNITY: BUS OPERATIONS Our responsibilities in the communities Bus companies are essential to local communities. Our services help tackle community isolation, particularly for households without a private car. We are also significant employers in many towns and cities. Our main community responsibilities are therefore investing in improving our services and being a good employer. We believe our responsibilities extend to contributing to the broader wellbeing of the communities we serve. Examples of the projects we support are: Metrobus and the Bromley Education Authority Travelling on a school bus for the first time can be a difficult transition for many primary school children. Metrobus is working with Bromley Education Authority on an innovative project, that involves using a Metrobus bus to teach children about good bus etiquette. Initiatives to tackle crime, including partnerships with schools, local authorities, housing associations and the police Local regeneration initiatives, particularly those relating to transport Encouragement and support for employee involvement in local communities and fundraising for local and national charities Free travel and other in-kind donations Priorities Outcome Priorities Increase the proportion of buses fitted with CRTs to over 70% Further reduce emissions for PM, CO and HC Maintain 65% standard for more accessible low-floor buses across all the fleet Grow passenger numbers on new services such as Fastway and more Maintain overall VOSA maintenance pass rate above the national average Maintain overall VOSA emissions pass rate above 99% Continue to reduce staff turnover rates Achieved for companies reporting in 2005 (66% if new acquisitions included) Achieved Achieved 78% Achieved Achieved Achieved Achieved by Group as a whole Increase the proportion of buses fitted with CRTs to over 70% for all fleets Further reduce emissions for PM, CO and HC Increase to 80% Continue to grow passenger numbers on new services Maintain overall VOSA maintenance pass rate above the national average Maintain overall VOSA emissions pass rate above 99% Continue to reduce staff turnover rates

15 Go-Ahead The Community: Bus Operations 13 Community spend 181, (39.4% of total group spend 460,944) 2. At a local operating company level community investment is driven through support in kind activities, while the PLC handles direct financial donations. The figures above include an element of both these community investment streams. 1. Pupils from St Luke s Church of England Primary School turned one of Wilts & Dorset buses into their under the sea themed float for the Winton Carnival. 2.The new Scania double deck bus, from the Brighton & Hove fleet, with individual seat belts being used by Peter Gladwin School pupils for a school outing. 3. Go North East teamed up with the JJB Soccer Dome in North Shields to give 32 under-13 teams the chance to play in the Junior World Cup What we can do better Outcome What we can do better Extend real-time information to more bus stops across our operating companies and look at extending to include text messaging Review how punctuality performance is measured Review how community investment can be better managed across the Group Pilot the use of hybrid buses in London and the use of fuel additives Share diversity best practice across the bus operating companies Achieved. Services extended in Birmingham, Brighton, Wilts & Dorset, Southampton and Oxford including text messaging Achieved. Mystery shopper standards in place Reviewed. To be looked at in 2007 Achieved. Pilot completed, but lack of reliability means will not be adopted. Go North East has adopted the use of bio fuels for its fleet Age diversity session undertaken Continue to extend real-time information to more bus stops across our operating companies and look at extending to include text messaging Continue to develop strategic partnerships with other transport providers London Central & London General continuing commitment to be involved in a TfL employee volunteering initiative Introduce buses powered by engines that meet European emissions standards not due to be introduced until , EURO V To hold sessions covering other areas of diversity

16 14 Go-Ahead Environmental & Social Report 2006 MARKETPLACE: RAIL OPERATIONS Our responsibilities in the marketplace Go-Ahead accounted for over 280 million passenger journeys through our train franchises Southern and Southeastern. Our rail services are operated by Govia, a partnership between Go-Ahead and Keolis (a French transport company backed by SNCF and 3i). Last year was one of transition for our rail business. In April, we started operating Southeastern, a new train franchise for us. Southeastern carried almost 160 million passengers in the last year, including 20 million from April onwards. On 1 April 2006, we ceased operating the Thameslink franchise. Due to the timing of these changes, we will only report on Southern s performance this year. Next year, we will report on both Southern and Southeastern and expect to carry almost 300 million passengers a third of all rail journeys through London making Govia the largest provider of rail services in the capital. Southern s rail services operate in South London and connect London to the south coast through East and West Sussex and parts of Kent and Hampshire. Rail services play a vital role in the economic health of the south east. Many people rely on the train to meet their travel needs and our services are seen as a viable alternative to travelling by car thus reducing congestion and emissions. We have identified the most important factors that influence increased rail usage as: Our investment programme is only part of the way Southern has changed.the think like a passenger campaign is improving levels of service. In the last National Passenger Survey (NPS) Southern s overall passenger satisfaction score rose from 71% to 80%, including significant improvement in 23 of the 31 service areas covered in the survey. Southern invites feedback from staff, conducts customer satisfaction surveys and holds Meet the Manager sessions at London Bridge and London Victoria stations. Southern has focused on improving train punctuality as measured by the Public Performance Measures (PPM), the industry standard for train reliability.the company s average PPM score has risen to around 90%, a significant improvement on only two years ago. Reliability, convenience and punctuality Accessibility for all Affordability Safety and security These factors were endorsed by the Southern Stakeholder Advisory Board. Our responsibility: providing reliable, convenient and punctual services Southern has enjoyed a renaissance in customer satisfaction since Go-Ahead took over the franchise. A 1 billion investment programme has delivered new and upgraded trains, enhanced maintenance depots and new ticketing equipment. This year, we completed the replacement of the old slam-door trains with new Electrostar and Turbostar vehicles. Southern used new equipment providing real-time information on the number of passengers being carried to inform our introduction of longer peak-time trains. In partnership with T-Mobile the company has also provided a WiFi broadband connection for passengers on the Brighton Main Line. One of Southern s new Electrostar trains broke an 11-year speed record by completing the journey from London to Brighton in 36 minutes seconds. New ticketing equipment is helping to improve our customer satisfaction rating.

17 Go-Ahead The Marketplace: Rail Operations 15 Our responsibility: ensuring accessibility for all, particularly disabled people Helping people with mobility problems is a priority for Southern. The focus includes the old and infirm, those travelling with small children or heavy baggage, and those using wheelchairs.the main ways that Southern meets its responsibilities are through investment in more accessible trains and stations and training staff to provide support. Climbing on and off old slam-door trains was difficult or impossible for some passengers. Southern s investment in new trains has put ease of access at the top of the agenda. Following consultation with disabled passengers and representative groups, the company introduced wider aisles, dedicated wheelchair spaces, stepboards closer to platforms, colour contrasting design for the visually impaired and priority seating. At stations, Southern is investing in accessible ticket offices and machines, help points with induction loops for the hearing-impaired, new signage and a white lighting scheme at inner London stations. Some of Southern s stations were built before 1940 and have either limited step-free access or none at all.the company s website provides details of the stations that are accessible to wheelchair users. Portable ramps are available at others, with assistance provided by members of our staff. Southern is prioritising investment in step-free access this year. Southern regularly participates in local disability forums to explain its approach and hear about issues first hand. As a result, the company has made changes such as improving access on the east side of the East Croydon booking hall. Southern also supported the production of a film to promote an accessible train-to-taxi service at Brighton. Southern s focus on customer service training includes supporting passengers with mobility problems. Southern monitors how it is doing. Our responsibility: affordability to ensure as many as possible can use our services Public transport is essential to many households without a private car. However, the cost of rail travel can be daunting for those that are not in work. Southern operates a commuter service, so it is in the company s interest to provide incentives for people to develop work skills. By partnering local authorities in the region, Southern can offer a discounted student fare for 16-to-18 year-olds at a third of the cost of the standard season ticket. This programme is in addition to the standard national discounts offered to older people and people with disabilities. Our safety and security task force initiative won the Network Rail Crime Prevention Award this year. Our responsibility: ensuring the safety and security of passengers, employees and the general public Safety is a primary concern across Go-Ahead. Southern is proud of its achievements in improving safety and in tackling crime on the network. Southern s unique safety and security taskforce provides a reassuring visible presence on trains and at certain stations.the team includes Southern s revenue protection officers, the British Transport Police and contract security officers from Meteor, our specialist security services company. Based in Crawley, West Sussex, the taskforce tackles anti-social behaviour pro-actively, deterring potential troublemakers and making passengers feel safer.this groundbreaking initiative won the Network Rail Crime Prevention Award this year. Southern is also a strong advocate of CCTV and its role in deterring and detecting crime. Over 80% of Southern s coaches now carry CCTV, along with many of its stations.the images these systems provide help the police to bring criminals to court. Southern is also responsible for safety at 160 stations and is investing in improving the travelling environment. Southern has been awarded secure station status for 24 of its stations this year and is currently working towards accreditation at a further 22.The secure station standard was set up by the Department for Transport and the British Transport Police to improve security at stations.the standard looks for CCTV coverage, good lighting, reduced crime rates, secure fencing and boundaries, staff availability and conflict management training. A particular achievement is East Croydon, where Southern inherited a failing, dirty station with demoralised staff. East Croydon was named Rail Station of the Year at this year s prestigious London Transport Awards, with judges commending the improved station signage, CCTV security, ticketing facilities, toilets and exemplary customer service. Passenger journeys 123.7m Vehicle kms travelled 28.4m Total number of cancellations: Southern 1.35% Public performance measure: Southern (%) Coaches with CCTV (%) Total number of delays: Southern (5.29%) Delays due to Southern (2.63%) Delays due to other causes (2.66%) On time journeys (94.71%)

18 16 Go-Ahead Environmental & Social Report 2006 WORKPLACE: RAIL OPERATIONS Our responsibilities in the workplace Our success depends on our employees. We need skilled, safe drivers and employees on trains and at stations who are helpful, friendly and professional.the experience of passengers is directly related to having happy, fulfilled employees. Southern employs over 3,500 people and Southeastern almost 4,000. Here we report on how Southern manages its responsibilities as an employer through training and development opportunities, a competitive benefits package and a safe working environment. A challenge across the public transport industry is staff turnover due to shift work and the stress linked to customer-facing roles. Southern has reduced its staff turnover to less than 5%, a major achievement reflecting the positive changes to the business over the last few years. Our responsibility: employee engagement Southern is introducing a scorecard approach to managing people. The scorecard measures individual employee performance on a range of indicators including operational efficiency and customer satisfaction. As part of this work, Southern carried out the first employee attitude survey by a train operating company. Developed in partnership with Gallup, the survey was branded Living Southern and achieved an impressive 51% response rate across all grades following a successful communications programme.the survey focused on 13 areas linked to people management by the company and provides a baseline for the future. Over 300 managers and supervisors have been trained in interpreting the results and are leading work with their teams to develop action plans in a rolling programme to improve performance.the findings from the survey are to be published in the company newsletter and on the Southern Intranet site later this year. Southern recognises trade unions including ASLEF, AMICUS, the national Union of Rail, Maritime and Transport workers (RMT) and the TSSA. Southern has regular meetings to discuss employee benefits and conditions and company strategy. Our think like a passenger campaign is improving our level of service. Our responsibility: training and development Southern understands that good customer service is dependent on the skills, experience and enthusiasm of its staff.training can also be an important motivational tool. Southern doubled its investment in training to over 2.1 million last year. Southern has an in-house training and development team providing technical and customer service training. For example, Southern developed tailored NVQ-based customer service programmes under the banners of Being Southern and Leading Southern for all frontline staff. Personal development is encouraged under the successful Passport to Learning (P2L) initiative. Set up in partnership with rail unions and local education colleges, P2L covers subjects from English and maths to gardening, and since its launch in 2004 over 1,100 people have studied with the scheme. An IT learning centre at Southern head office is also a great success. The national passenger survey results have helped develop future plans.

19 Go-Ahead The Workplace: Rail Operations 17 Number of employees 3,572 Physical assaults on staff (per million passenger journeys) 0.76 SPAD s per million train miles Our average 0.11% Industry average 0.31% Average turnover rate (%) Signals passed at danger Diversity by gender (Male) Diversity by gender (Female) 3,091 3, We are prioritising investment in accessible stations this year. Our responsibility: equality and diversity Southern has an equal opportunities policy, which shapes its recruitment and people management strategies.the company has worked hard to address barriers to employment for women and has looked at family friendly policies, shift working and mentoring. Southern also has a dedicated accessibility manager whose responsibilities cover both customer and employee discrimination. Our responsibility: health and safety Safety of employees, passengers and the general public is a priority for all Go-Ahead operating companies. We believe in giving every employee individual responsibility for health and safety matters and this is backed up by an extensive training programme. Southern monitors its performance weekly, carrying out audits and using external consultants to review performance. Diversity by age 16-19: 0.8% 20-29: 11.9% 30-39: 28.1% 40-49: 32.6% 50-59: 21.1% 60-64: 5.1% 65+: 0.4% Southern understands that good customer service is dependent on the skills, experience and enthusiasm of its staff... Southern doubled its investment in training to over 2.1 million last year.

20 18 Go-Ahead Environmental & Social Report 2006 THE ENVIRONMENT: RAIL OPERATIONS Our responsibilities to the environment Changes to the global climate are an issue of great concern to many people. Rail companies have an important part to play in reducing transport-related emissions by attracting people out of private cars onto trains. It is also our responsibility to reduce the environmental impact of our trains, depots and offices. Our responsibility: reducing emissions Southern operates a fleet of nearly 300 electric and diesel trains and declares electricity usage based on the figures provided by Network Rail. However, this figure is at best only a broad indicator of actual performance. As an integral part of the railway network, Southern is dependent on the wider rail infrastructure to operate train services. In many situations, it is not possible for Network Rail to isolate the environmental impact of Southern alone. Over the last few years, Southern has invested over 1 billion in acquiring more energy efficient trains and upgrading existing vehicles. By attracting people out of private cars onto trains Southern plays an important part in reducing transport-related emissions. Our main environmental impact Our trains use electricity for traction. Our main environmental impact is the air emissions associated with the electricity we use. We also use electricity and gas for maintenance at our depots and for heating and cooling in our depots and offices. The most important way Southern can benefit the environment is through attracting more people, particularly at off-peak times, to use the train in preference to the private car. In order to do this, we must offset the financial and economic costs of providing services such as air-conditioning against the potential to attract more passengers. How we manage our environmental impact Southern has developed an environmental management system, which identifies impacts, monitors and measures performance, sets targets and objectives and reports on progress. Southern s data processes are verified by a third party. Providing safe cycle parks at stations helps encourage our customers to leave their cars at home.

21 Go-Ahead The Environment: Rail Operations 19 Over 1 billion has been invested over the last few years into upgrading existing vehicles. Our responsibility: integrated transport Rail is an integral part of the public transport network.the attraction of public transport over private car is often dependent on how well the different elements of this network are integrated. Southern works closely with Brighton & Hove Bus Company and Metrobus to improve connections between buses and rail services, and offers combined bus and train tickets with both companies. Cycle storage is provided at 97 stations with the majority protected by CCTV cameras. London Road in Brighton won the Station of the Year award in the category for encouraging integrated travel using bicycles and trains.the award recognised the partnership between Southern and Brighton & Hove Council. Electricity usage for traction (Kwh) Air pollution per passenger journey: CO 2 (kg) 356m Our trains use electricity for traction. Our main environmental impact is the air emissions associated with the electricity we use.

22 20 Go-Ahead Environmental & Social Report 2006 THE COMMUNITY: RAIL OPERATIONS Our responsibilities to the communities Running essential rail services is the main way that Southern contributes to the wellbeing of the communities it serves. The company also employs over 3,500 people and has responsibilities to them and their families. Vibrant and successful communities are in the interest of everybody. Some of the other ways that Southern contributes to local communities include: Initiatives to tackle crime including partnerships with schools, Network Rail, the police and local authorities Regeneration, particularly relating to transport Support for causes related to transport heritage Supporting causes linked to employees Support for sports and arts Our responsibility: safety Trespassing and vandalism on the railway are real crimes. Network Rail estimates that around 11 million acts of trespass are committed by under-16s every year. Sometimes, trespass can result in people being killed or horribly injured. As part of a Network Rail initiative, Southern sponsors activities such as a climbing wall that are designed to provide alternatives to trespassing. Our responsibility: employee involvement Southern employees visit local schools and invite students to learn more about their operations. For example, six Peckham Academy students spent 10 days at Streatham Hill station learning how a train operating business functions. Our responsibility: supporting causes linked to employees Southern has adopted two official charities, the Railway Children and the Rockinghorse Appeal.The Railway Children helps runaway and abandoned children who live in and around railway stations across the world. The Rockinghorse Appeal aims to raise funds for the Royal Alexandra Hospital for Sick Children which has provided outstanding care for Sussex children for the last 125 years. Southern supports the charities in a range of ways including charity raffles with proceeds being split between the two charities. Our responsibility: support for the sports and arts Southern is a major sponsor of the Brighton Festival, a Transport Partner for Millwall FC, a major sponsor for Crystal Palace FC and sponsor of the Arundel Festival. The company also sponsors various sporting clubs for young people across its network Priorities Outcome Priorities Consult with stakeholders on changes to Southern s coastline service Introduce employee satisfaction scorecard Introduce new environmental training module Continue to improve cycle storage facilities at Southern stations Achieved. New timetable introduced Achieved Achieved 76% Achieved. 97 stations have cycle storage facilities Continue commitment to leadership and frontline customer service training Engage employees in developing team specific action plans for improving the work environment Launch energy efficiency programme at Southern Further build on the success in improving passenger satisfaction levels at Southern Secure Park Mark designation for six car parks at Southern Extend environmental and social reporting to include Southeastern Establish a Stakeholder Advisory Board at Southeastern

23 Go-Ahead The Community: Rail Operations 21 Community spend 53,400 (12.0% of total group spend 460,944) At a local operating company level community investment is driven through support in kind activities, while the PLC handles direct financial donations. The figures above include an element of both these community investment streams Our strong links with local communities is an important measure of our success. 2. Chris Burchell, Managing Director of Southern with a group of students learning about how a train operating business functions What we can do better Outcome What we can do better Research use of fuel additives to reduce emissions Achieve secure station status for 40 of Southern s stations 27 achieved. 20 in progress Continued investment in station facilities to include easier access, CCTV, new signage and cycle facilities Achieve secure station status at 56 Southern stations Review how Southern get involved with local community groups across its network Develop the diversity of the Southern workforce Improve PPM train performance at Southeastern Introduce Passenger Load Device (PLD) on the entire Southeastern Electrostar fleet (Class 375s and 376s)

24 22 Go-Ahead Environmental & Social Report 2006 THE MARKETPLACE: AVIATION SUPPORT SERVICES AND PARKING Our responsibilities in the marketplace Go-Ahead is represented in the wider transport market through aviance-uk, Plane Handling, Reed Aviation and Meteor. Plane Handling and aviance-uk provide ground handling services at airports across the UK and Ireland. Reed Aviation delivers UK national newspapers and mail contracts to over 40 countries worldwide. Meteor provides car park management and specialist security services for the transport industry. About ground handling Ground handling covers a broad range of services including loading and unloading cargo from freight flights, baggage handling and check-in for passenger flights, manning executive lounges and information desks, managing aircraft slots and customs clearance. Ground handling shares many of the same characteristics as bus and rail travel.the services combine the time-sensitive movement of millions of passengers with a strong customer service focus. Aviation continues to be a tough market. Passenger airlines face pressures ranging from spiralling fuel costs, the threat of international terrorism and potential international health scares such as bird flu. At the same time, the continued growth of no-frills airlines has changed the structure of the industry.together, these factors make ground handling cost-conscious and competitive. About parking and security Meteor manages off-street parking, runs bus services connecting car parks to airport terminals and provides specialist security services for the parking and transport industries. Meteor s expertise is used extensively by other Go-Ahead companies. Meteor manages car parks for Southern and its security services professionals are integral to the award-winning security team at the rail company. Meteor also provides CCTV installation and management expertise that has helped Go-Ahead companies manage their investment in that area. Our responsibility: to ensure the accessibility of air travel for all, particularly those with disabilities Last year, aviance-uk s Luton Airport operation developed a specially-designed chair to help disabled passengers transfer to their seats in a dignified manner.this innovative seat has been endorsed by the Health & Safety Executive as an example of best practice. This year, aviance-uk introduced the seat as a standard part of its service at all relevant UK airports. Meteor s highly trained and experienced security staff provide peace of mind to our customers.

25 Go-Ahead The Marketplace: Aviation Support Services and Parking 23 Our responsibility: safety and security for parking users, passengers, employees and the general public A priority shared by all Go-Ahead companies is to provide a safe and secure operating environment. Crime and fear of crime is a major issue for society.the Meteor security business is at the forefront of providing both strategic advice and practical support to deter and detect crime.the services include CCTV installs and ongoing monitoring, warehouse security, revenue protection on trains and manned guarding at a range of buildings. Meteor s experience in operating complex CCTV systems and revenue protection on trains is used widely by other operating companies within the Go-Ahead Group. Meteor is a strong advocate of the Park Mark accreditation scheme, which demonstrates investment in car park security. Police crime prevention officers assess whether parking facilities meet the scheme s standards for the effective prevention of crime.the number of sites managed by Meteor that have secured the award has grown to12. Meteor s focus on driver skills has helped to reduce the number of vehicle collisions this year, improving the safety of travel between car parks and airport terminals. The Meteor security business is at the forefront of providing both strategic advice and practical support to deter and detect crime. Our priority is to minimise delays that will impact our airline customers and their passengers.

26 24 Go-Ahead Environmental & Social Report 2006 THE WORKPLACE: AVIATION SUPPORT SERVICES AND PARKING Our responsibilities in the workplace Together, our aviation support services and parking companies employ 6,000 people, providing work opportunities for local communities. Competition for good people is intense, particularly at airports. Many of Meteor s contracts require short-term, fixed-period working. Shift work and stresses related to work environments mean that there is a high turnover in these industries, especially in the security sector. Our companies provide competitive benefits packages and invest in training and development to help attract and motivate our people. Our responsibilities: health and safety and manual handling at airports Health and safety management is a key priority for both aviance-uk, Plane Handling and Reed Aviation as the wellbeing of staff is a key determinant of operational efficiency. As part of a focus on creating a safety-aware culture, aviance-uk, Plane Handling and Reed Aviation work closely with their unions, conducting regular audits and using external consultants to review performance. New employees receive five days training, and all employees receive two days training each year. The companies have a strong record for innovation in this area. aviance-uk pioneered the introduction of the 32kg limit per piece of luggage to help protect employees from injury.the main performance indicator is accident reduction. Last year, the total number of accidents fell by over 28%, with the number of accidents reportable to the Health & Safety Executive down 14.5%. This year, we developed our programme with IPRS, a provider of employee health services. Employees at aviance-uk and Plane Handling operations at Heathrow have access to specialist physiotherapy for musculoskeletal injuries. Nearly 350 employees have benefited from a combined 1,000 treatment sessions. Our responsibilities: management development Staff development and career progression is an important issue. Plane Handling has developed a new scenario-based personal development course for supervisor position candidates, known as Up the Ladder. In all, aviance-uk, Plane Handling and Reed Aviation committed 1.2 million to training and development last year. The Go-Ahead Group operates a Senior Management Training Scheme and aviance-uk, Plane Handling, Reed Aviation and Meteor all participate. This scheme is open to both new applicants and existing staff and is designed to identify the future leaders of the company.this year, one of the members of the scheme carried out a major review of staff turnover at London Heathrow and Southampton.The project reviewed exit interview returns and surveyed existing staff on the factors that influenced them to stay with aviance-uk.this research found that most aviance-uk employees enjoy working for the company, but also highlighted opportunities for improvement including enhanced communication and changes to exit interview procedures.the company is now working on implementing the recommendations. Our responsibilities: employee retention Competition for people is intense. Last year, our aviation support services and parking businesses recruited around 800 people in order to maintain and improve the level of service they provide. All our companies provide tailored induction and training for new recruits. For Meteor, high rates of employee turnover are characteristic of its businesses. Many of the positions are temporary in nature, particularly in the security business. Consequently, the overall rate of employee turnover is not a meaningful measure for the company. Next year, Meteor will be looking to develop a more meaningful measure of employee turnover. Last year Meteor introduced a systematic approach to exit interviews for all employees that leave. As a result Meteor has made a number of changes to the way it manages people, including increased investment in training and development, and a more open, accessible style of management. Meteor has continued its programme of recruiting older employees and attracted nine bus drivers from the Czech Republic. It provided these drivers with a package of support that included accommodation. Our cargo loading and unloading targets have again been exceeded this year.

27 Go-Ahead The Workplace: Aviation Support Services and Parking 25 Total number of employees Diversity by gender (Male) Diversity by gender (Female) ,974 5,803 5,084 4,911 4,692 4,349 3,696 3,429 1,282 1,454 1,388 1,482 Diversity by age 16-19: 3.1% 20-29: 23.7% 30-39: 26.4% 40-49: 25.8% 50-59: 15.6% 60-64: 4.0% 65+: 1.4% Our responsibility: skills development in our parking business We are proud of our commitment to training and development and invested over 350,000 in programmes last year. Meteor s in-house training and development team produces bespoke programmes for its staff, including the Putting Me in Meteor customer services programme for airport-based employees. Putting Me in Meteor has been a huge success, helping to deliver a strong performance against the company s customer satisfaction targets. A second focus for Meteor was developing the skills within its security business.the evolving security environment requires employees to keep developing skills and knowledge. Meteor invested in a three-day Skills for Security course for all of its 300 security employees.this covered security, guarding and conflict management and allowed employees to gain accreditation and a security licence. Employees at aviance-uk and Plane Handling operations at Heathrow have access to specialist physiotherapy for musculoskeletal injuries. Nearly 350 employees have benefited from a combined 1,000 treatment sessions.

28 26 Go-Ahead Environmental & Social Report 2006 THE ENVIRONMENT: AVIATION SUPPORT SERVICES AND PARKING Our responsibilities to the environment All companies have a responsibility towards the environment. Our companies, aviance-uk, Plane Handling and Reed Aviation take environmental responsibility very seriously and have developed an Environmental Management System (EMS) based on the principles of the ISO14001 environmental standard. Auditing performance using internal and external expertise is an integral part of complying with this standard. Demonstrating environmental improvement is a particular challenge for ground handling companies. As an integral part of the airport, they are dependent on the surrounding infrastructure to deliver services. In many situations, it is therefore not possible to isolate the environmental impact of these companies. For Meteor, environmental management of car parks normally falls outside its contractual remit.the main environmental responsibility for Meteor therefore relates to the environmental impact of the 70 vehicles it operates. Air pollution caused by exhaust emissions affects health through the air we breathe.the environmental impact of Meteor is reported as part of the bus section of this report, but some examples of its work are detailed below. Our responsibility: reducing emissions in our ground handling operations The most significant source of emissions for aviance-uk comes from its fleet of over 1,500 vehicles.these vehicles include cars, vans, buses, aircraft tugs, de-icing rigs, towing buggies and conveyor belts, and are powered by diesel and electricity.this year, aviance-uk and Plane Handling have invested over 8m in more fuel-efficient equipment. Our responsibility: reducing emissions for our bus operations at airports Meteor uses Ultra Low Sulphur (ULS) Diesel as fuel of choice. ULS Diesel is more environmentally friendly than the standard grade. Meteor has adopted the Go-Ahead practice of only purchasing new buses fitted with Continuously Regenerating Traps (CRTs) as standard. CRTs can reduce some emissions by up to 90%. This year, Meteor added two hybrid electric buses to its fleet to test performance and reliability. Hybrid electric vehicles have two power sources, including an electric motor to lower the demand for diesel power.tests have shown that these vehicles do not perform to the level of reliability required by Meteor and the company will therefore not be introducing them further. Meteor also operates a rigorous maintenance schedule including a regular emissions test.the Meteor maintenance regime is independently assessed by the Vehicle Operator Services Agency (VOSA), which carries out annual and random emissions tests. Meteor s driver training looks at techniques for reducing emissions. Our electric baggage tractors help minimise our impact on the environment.

29 Go-Ahead The Community: Aviation Support Services and Parking 27 THE COMMUNITY: AVIATION SUPPORT SERVICES AND PARKING Our responsibilities to the communities Our companies are part of the fabric of the airports, hospitals, towns and shopping centres where we provide services. Vibrant and successful communities are in everybody s interest. Our companies contribute to local communities through cash and in-kind donations, and by encouraging employee involvement. Our responsibility: getting involved in the community in Boston, Lincolnshire Meteor has built a strong partnership with Boston Borough Council helping to provide the best possible parking for the town. Meteor carried out an assessment of parking needs, which resulted in a reduced tariff for cars, free parking for coaches and lorries and the establishment of a permit holders-only site. Meteor was instrumental in establishing a park and stride scheme connecting a car park and a local school.this has been hugely popular with parents and has reduced congestion around the school entrance. At the Boston Pescod Square Shopping Centre car park, Meteor organised a charity funfair and car boot sale raising over 700 for the Lincolnshire and Nottinghamshire Air Ambulance, and supported a dramatic fire brigade exercise. Meteor also provides funding for the Christmas lights in the town centre. The company also got involved in supporting a Boston Community Theatre Group production, printing tickets, leaflets, flyers and programmes at no cost. Meteor employees ran the box office and front of the house for the night.the play was a great success. Our responsibility: encouraging employee involvement Employees at aviance-uk get involved in a range of community causes such as visiting local further education colleges and inviting students to see airport operations. Our responsibility: promoting health and safety in schools Every April, aviance-uk holds a security week. Last year, aviance-uk s operations in Birmingham Airport linked with a local Solihull school as an innovative way of raising safety awareness amongst children. Pupils spent a day at the airport being shown passenger safety features by staff. Following the visit, pupils produced posters to illustrate how to prevent accidents. One of the health and safety inspired posters drawn by a pupil following a visit to Birmingham airport Priorities Outcome Priorities Achieve Gold Standard in Heathrow clean vehicle programme Programme withdrawn by BAA Further 5% reduction in accidents and injuries Reduce energy use by 5% What we can do better Outcome What we can do better Develop new processes to help passengers with physical disabilities Achieved. New chair developed by aviance-uk at Luton Airport introduced as company standard Improve recognition of employee health & safety performance Introduce electronic measurement of fuel consumption for entire bus fleet at Meteor

30 28 Go-Ahead Environmental & Social Report 2006 COMPANY SPECIFIC DATA TABLE Brighton & Hove Go North East Go West Midlands London Central and General Metrobus Oxford Bus Company Solent Blue Line Southern Vectis Wilts and Dorset Southern Aviance Meteor Head Office Go-Ahead Group Total 20 data Passenger vehicle kms travelled (million) Passenger journeys (million) Bus/Train fleet size at year end ,944 Average age of fleet Environment Fleet with CRT (%) Electricity usage for traction power (000/kwh) 355, ,958 CO 2 process ppj (kg) CO ppj (g) NOx ppj (g) PM ppj (g) HC ppj (g) Society Fleet with low floor (%) Scheduled km operated (%) SPADs Women employed (%) * Average length of service (years and months) 7y5m 10y6m 2y6m 7y8m 4y3m 7y5m 5y2m 9y1m 7y1m 8y8m 5y6m 2y5m 6y10m 6y5m Turnover rate (%) Absence rate (%) Charitable giving and investment ( ) 7,648 98, ,400 6,762 4, ,876 7,175 37,248 48,026 2, , ,944 * Not including employees from Damory Coaches,Tourist Coaches and Hants & Dorset Trim (all part of Wilts & Dorset) as no gender data has been sourced. BITC CR INDEX During the year, Go-Ahead took part in a number of rating and benchmarking exercises including the Business in the Community Corporate Responsibility Index. We achieved a score of 81% and were delighted to be ranked number one among the public transport providers that participated.

31 SUMMARY INDEPENDENT VERIFICATION AND AUDIT STATEMENT The SMART Company was commissioned by the Go-Ahead Group plc to undertake an independent review of their Environmental and Social Report for the period July 2005 to June A Senior Consultant, who did not participate in the data gathering and report writing process, conducted the verification. The verification was undertaken using the principles of the assurance standard AA1000: materiality completeness and responsiveness.this is the fifth consecutive year that SMART has provided assurance for Go-Ahead and we have undertaken a rolling programme of audits, ensuring all operating companies have been audited at least once during this period. In 2006 a sample of three operating companies were visited as part of the verification process, as well as a visit to the Group Head Office. Sample checks of the data sources were undertaken and interviews were conducted with members of the management team who had been responsible for data collection. We are therefore satisfied that this report is a reliable and accurate reflection of the performance of the company. A full verification report, containing a more detailed analysis together with recommendations for developing the processes for measuring, managing and reporting Go-Ahead plc s environmental and social impacts, can be found at Zoë Hatherly Senior Consultant,The SMART Company, August 2006 Group reporting Corporate Responsibility reports for each of the Go-Ahead operating companies are available.these are available from The Go-Ahead Group plc at the address on the back cover. Go-Ahead s operations span bus, rail, parking and aviation support services. The companies within the group are: aviance-uk Brighton & Hove Bus Company Go North East Go West Midlands London Central & London General Meteor Metrobus Oxford Bus Company Solent Blue Line Southeastern Southern Railway Southern Vectis Wilts & Dorset There is no report for Southeastern as the rail franchise was not awarded to us until April 2006.