The Go-Ahead Group plc Corporate Responsibility Report 2009 Our business in society

Transcription

1 The Go-Ahead Group plc Corporate Responsibility Report 2009 Our business in society

2 Go-Ahead Group plc Corporate Responsibility Report 2009 A message from the Group Chief Executive Our approach to corporate sustainability and responsibility We are proud to be the first public transport company to be awarded the Carbon Trust Standard in recognition of our efforts to tackle climate change. As one of the UK s largest public transport providers, Go-Ahead plays a significant role in building thriving and sustainable towns and cities. We help people get to and from work, provide access to services and leisure activities, and with over 27,100 people we are a major employer. Our services also support efforts to reduce pollution and congestion in our communities, and encourage social inclusion. This year we have seen a slowdown in the UK economy brought about by the turbulence in the global financial markets. But the underlying strength of the Group, helped by a decade of significant investment, means we are well positioned to face current economic challenges. We have continued to be community focused and responsive to the issues that matter to our stakeholders including minimising our impact on the environment. Remaining committed to these long-held values is core to the long-term success of the business. Industry leadership Go-Ahead has a distinctive and industryleading approach to corporate responsibility. We were the first in our sector to publish both environmental performance and environmental and social reports for the Group and individual operating companies. Last year we were also first in our sector to publish an Economic Impact Report quantifying our impact on the UK economy, employment and skills, communities and the environment.this year, we have incorporated those impacts within this report.the individual company reports provide in-depth detail of each business corporate responsibility approach and achievements. Our corporate responsibility website is being redesigned to give stakeholders easier access to detailed information on our performance. Carbon Trust and environmental leadership Transport now accounts for 25% of UK Greenhouse Gas (GHG) emissions, with cars accounting for more that half of this. In contrast, buses and trains contribute only 5%. Go-Ahead is committed to playing a key part in delivering solutions aimed at reducing GHGs. This year, Go-Ahead became the first public transport company to be officially certified with the CarbonTrust Standard.This is the UK s only independent certification recognising achievements in action on climate change by leading organisations in industry, commerce and the public sector. It is also the world s first carbon award scheme that requires an organisation to measure, manage and reduce its carbon footprint and actually make real reductions year-on-year. Our investment and innovation over the past decade means we have already been able to reduce GHG emissions.we remain committed to improving the energy efficiency of our operations. Not only does this have important environmental benefits but it helps to reduce operating costs.we have been recognised as having the youngest and greenest bus fleet among the major UK operators. During this financial year, we have fitted all of our 3,500 buses with black box technology which monitors engine behaviour.this technology, supplemented by driver training schemes, has resulted in an improvement in fuel efficiency by around 5%. Our rail franchises are also leading the industry by introducing regenerative braking on the third rail system.this saves energy by capturing electricity through braking and returning it to the rail network. On Southern, this technology has resulted in a 5% reduction in electricity traction consumption.this saving is the equivalent to annual carbon emissions from 2,000 households. At our stations, depots and offices we have invested in energy efficient technology including new lighting systems, as well as promoting good practice amongst our employees.this has resulted in a reduction in site energy use by 16%.We will look to make further progress in coming years. Our most important contribution is to provide high quality services in an environmentally responsible way to encourage people to positively choose public transport and leave the car at home. Immediate reductions in emissions will result. Convincing car users that public transport is a viable and convenient alternative is a must if we are serious about contributing to carbon reduction. Understand local needs We strongly believe that a good public transport system starts in the community. Our devolved business model means that our local management teams can make decisions based on listening and responding to the local communities in which they operate. That approach is reflected in the way we report on our corporate responsibilities: we continue to be the only transport sector business which produces separate Corporate Responsibility reports for each operating company. I hope that you find this report engaging and informative. I am proud of our achievements this year and look forward to continuing to deliver further improvements to our performance and seeking ways to innovate and lead the way in our sector. Keith Ludeman Group Chief Executive

3 Corporate Responsibility Report 2009 Go-Ahead Group plc 1 Highlights million On average, around 1.6 million people travel on our buses every day. 30% Our rail operation is the busiest in the UK, responsible for nearly 30% of UK passenger rail journeys. 1st We operate the UK s first high speed domestic rail service between Kent and London. 3,500 With a fleet of over 3,500 buses Go-Ahead is one of the UK s largest bus operators. +21% We are London s biggest bus operator with a market share of over 21%. 28% We are responsible for 28% of all Heathrow s aircraft turnarounds. Carbon Trust Standard We became the first UK transport operator to be awarded the Carbon Trust Standard in recognition of our work to reduce carbon emissions. 16% site energy reduction We achieved a 16% reduction in site energy* as a result of the commitment of our employees and new energy efficient lighting systems. Improved efficiency Across our bus operations we have made significant investments in efficiency monitoring technology and training schemes.this has resulted in fuel efficiency improvements of around 5%. Renewable sources Around 75% of our site electricity is generated from renewable sources including hydro-power, wind-power and biomass fuels. Energy saving The introduction of regenerative braking on the third rail system has resulted in around a 5% reduction in traction electricity usage on the Southern network. Energy Forums Five Group energy forums were held this year where operating companies share best and emerging practice on reducing carbon emissions. Gold Rating For the third year in a row Go-Ahead achieved a gold rating in Business in the Community s (BITC) Responsibility Index the highest rating amongst comparable participating public transport operators. For further information go to *Like for like comparison. Gas consumption data has been normalised by use of degree days to account for variation in temperature.

4 2 Go-Ahead Group plc Corporate Responsibility Report 2009 Our responsibilities Go-Ahead is one of the UK s leading providers of quality public transport.we believe that an efficient, greener and integrated public transport system is vital to the sustainable future of the UK. About this report We continue to structure our Corporate Responsibility Report around our key issues and areas of responsibility: Safety and security Reliability, convenience and punctuality of our services Improving environmental performance Accessibility for all, particularly people with disabilities Affordability for people on low incomes As an employer Strong relationships with local communities. This year we have shortened our Corporate Responsibility Report to provide an overview of these key issues, our approach to them and our performance in meeting our responsibilities.we have placed more information on our new corporate responsibility performance website, which will be available from November 2009 onwards corporateresponsibility This report describes our performance for the year ended 27 June Safety and security Reliability, convenience and punctuality of services Improving our environmental performance Our responsibility is to ensure the safety and security of passengers, our employees and the general public. Our responsibility is to run our services to timetable and ensure that passengers have a positive journey experience. Our responsibility is to minimise the environmental impact of our buses and trains. This includes emissions and noise. Our response Safety and security is a Board issue for every operating company. We are committed to deterring any physical or verbal abuse of passengers or staff.we have invested in technology (e.g. CCTV), we train our staff to deal with incidents and employ the expertise of our own security guard business. We are prepared for major incidents such as acts of terrorism. Ways we assess how we are doing Number of Secure Stations % CCTV on fleet (buses, trains) Employee accidents Vehicle accidents Signals Passed at Danger (SPADs). 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. Ways we assess how we are doing Number of passenger journeys % overall satisfaction National Passenger Survey % buses and trains that arrive within a specified margin Mystery shopping % delays on aircraft turnaround Truck waiting times for freight handling. Our response We have invested heavily in new buses, trains and technology to reduce emissions.to improve energy efficiency, we have introduced regenerative braking on our trains and invested in black box engine monitoring technology and driver training schemes in our bus division. We are committed to reducing energy usage on our sites through energy-saving technologies. Ways we assess how we are doing CO 2 emissions per passenger journey Other emissions (Particulate Matter, NOx, CO, HC) Environmental benchmarks. Page 8 Page 9 Page 10

5 Corporate Responsibility Report 2009 Go-Ahead Group plc 3 A well-functioning public transport system is crucial to the UK; it plays a key role in building a strong economy and is an essential means of creating a fair society. Public transport also has a central part to play in helping to reduce carbon emissions. Put simply, by encouraging the travelling public out of their cars and onto the lower carbon alternatives of public transport, congestion can be reduced and emissions can be cut. Lord Adonis, Secretary of State for Transport June 2009 Accessibility for all particularly people with disabilities Affordability for people on low incomes As an employer Strong relationships with local communities Our responsibility is to help as many people as possible to use our services. Our response 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. Ways we assess how we are doing % bus fleet with low-floor access % certified accessible train units Mystery shopper and/or Assisted Travel schemes and follow ups Number of stations offering step-free access. Our responsibility is to help as many people as possible to use our services. Our response Our companies run a range of schemes that offer reduced rate services for particular groups older people, off-peak travellers and young people. Ways we assess how we are doing Schemes and initiatives designed to extend access beyond the statutory minimum Measure take up of schemes Research barriers to using public transport. Our responsibility is to provide a positive work environment conducive to the recruitment and retention of staff. Our response We are committed to being seen as a good employer.we treat people fairly regardless of gender, race, age or where practical, disability.we have invested in recruitment, personal development and training opportunities. Ways we assess how we are doing Number of employees Diversity (gender, age, ethnicity) Training spend Staff turnover. Our responsibility is to understand stakeholder concerns by listening to our passengers. Our response We are active participants in local communities. Our devolved company structure helps us to do this.we contribute to and invest in developing an improved transport infrastructure.we seek opportunities to ease congestion by working with partners on local initiatives. Our operating companies offer in-kind support to local charities. Ways we assess how we are doing Community spend Stakeholder audits Local partnership schemes Community engagement programmes. Page 13 Page 14 Page 15 Page 16

6 4 Go-Ahead Group plc Corporate Responsibility Report 2009 Group overview 600m Bus passenger journeys a year 360m Rail passenger journeys a year 42.5m Aviation, ground handling and cargo passenger services/journeys a year Buses Bus services operate in London, the South and the North East of England. Rail Go-Ahead s rail operation is called Govia. It is a joint venture between Go-Ahead (65%) and Keolis SA (35%). It is the UK s most enduring partnership between transport operators delivering rail franchises. Commuter rail networks operate in the South East and the Midlands. Aviation Services and Parking Aviation ground handling services operate across the UK.These include parking services at airports, railway stations, shopping centres and hospitals across the country. Our operations span bus, rail and aviation services.we employ over 27,100 people and serve a billion passengers each year. Belfast City Dublin Belfast International Glasgow Liverpool Edinburgh Birmingham Aberdeen Newcastle Durham Blackburn Leeds Bradford Manchester Banbury Boston King s Lynn We carried an additional 32 million extra passengers this year and the number of passenger kilometres travelled on our bus and train services continues to grow, up 3.6% to 325 million. Managing corporate responsibility The Chief Executive has ultimate responsibility for corporate responsibility issues. Key performance measures are regularly reviewed by the Board. Cardiff Jersey Oxford Heathrow Salisbury Southampton Poole Bournemouth Isle of Wight Luton Croydon Gatwick Brighton Stansted Ipswich Chelmsford London City Dartford Maidstone Ashford Buses Rail Aviation and Parking At Group level, we have a number of key policies in place, which set out our standards in areas such as the environment, energy and health and safety.to view our policies please visit our website We have always encouraged a local approach to the management of our business, and this includes corporate responsibility. Our local management teams are free to make decisions based on the needs of their communities, whilst following the core policies of the Group. This devolved approach allows our operating companies to respond to the issues that matter most to their business, employees and local communities. The Group Corporate Responsibility Report Content Summary of our issues, responsibilities, approach and performance. Information on our economic impacts. How to access Available in print or as a download from our corporate responsibility website: Corporate Responsibility website Content Detailed information on our issues, responsibilities, approach and performance. Information on our goals, targets and trend performance data (for 3 years). Information on our economic impacts. Copies of key policies. How to access from November 2009 Individual Operating Company Corporate Responsibility Reports Content Description of individual operating company issues, approach and performance. How to access Available in print or as a download from our corporate responsibility website:

7 Corporate Responsibility Report 2009 Go-Ahead Group plc 5 Key data Bluestar Brighton & Hove Go North East Go-Ahead London Metrobus Oxford Bus Company Southern Vectis Wilts & Dorset London Midland Southeastern Southern Aviation services Meteor Head office Go-Ahead Group Total 20 data Passenger vehicle kms travelled (million) Passenger journeys/handled (to nearest 5 million) ,010 Bus/Train fleet size at year end , ,364 Average age of fleet (years) Environment Fleet with Euro 2 or above (%) Fleet of Pre-Euro to Euro 3 with CRT (%) Fleet with Euro 4 and Euro 5 (%) Electricity usage for traction power (000/kwh) 162, , , ,589 CO 2 process ppj (kg) CO ppj (g) NOx ppj (g) PM ppj (g) HC ppj (g) Society Fleet with low floor (%) Bus scheduled km operated (%) Rail services on time (%) * N/A ** 93.3*** SPADs per million miles Number of employees 362 1,010 2,102 4,506 1, ,513 3,727 4,179 4, ,895 Women employed (%) Average length of service (years/months) 5/0 8/4 11/3 8/6 5/3 8/0 9/4 7/11 10/10 11/9 9/3 5/7 2/11 5/9 7/4 Turnover rate (%) Absence rate (%) Charitable giving and investment ( ) ,178 13,200 17,838 5,370 23,733 24,035 9,611 9,300 15,020 13,228 8,408 1, , ,720 Mainline. *South London. **Sussex Coast. ***Gatwick Express. Metro. Employee numbers include part time workers and are based on year end figures.these are different to the employee numbers reported in the Annual Report, which are based on averages for the year. BITC CR Index The Go-Ahead Group came top of the public transport companies that participated in the Business in the Community Corporate Responsibility Index.We scored 92% and were ranked in the Gold Band by BITC.We achieved maximum marks for our performance on emissions management and climate change. FTSE4Good We have been included in the FTSE4Good indices since their inception.

8 8 Go-Ahead Group plc Corporate Responsibility Report 2009 Issues in depth Safety and security 90% Bus fleet with CCTV The industry average is 52%. Source: DfT 2008 Public Transport Statistics Data as at 31 March Secure stations 20 42% total stations , 28% total stations 27% Reduction SPADs per million miles Signals passed at danger We want our passengers to feel secure and confident using our services, at any time of the day or night.we know that crime, and particularly the fear of crime and anti-social behaviour, is an issue for many people.we therefore prioritise investment in security measures to reassure our passengers and staff, and to minimise crime on our networks. We also recognise the significant responsibility we have to ensure the safety of our passengers and other road and rail users. Tackling crime All of our companies are committed to maintaining high levels of safety and security on their services. Across the Group we have consistently invested in CCTV equipment, and are committed to providing staff with full training to deal with security situations. CCTV can act as a deterrent and helps to reassure passengers. It also helps to ensure that people who commit crimes on our vehicles and stations can be dealt with appropriately. As well as providing car park management services, Meteor is at the forefront of providing specialist security services for the parking and transport industries. It offers its clients a range of services from strategic security advice to operational support in areas such as CCTV installation, protection on trains and manned guarding at buildings. Meteor s skills and expertise are widely used by Go-Ahead companies, and its security service professionals form part of the security teams at our rail companies. Public safety The safety of our passengers and other road and rail users is a prime concern.we have clear procedures for reporting and investigating any incident, accident or near miss.we have a rigorous maintenance schedule for all our vehicles to ensure they meet safety standards. Every year we invest significantly in training our employees, with driver training focused on safety. Working in partnership As in all other aspects of our operations, we are much more effective when we work in partnership with others. Across the Group we are building successful relationships with local councils, the police, schools, charities and local communities, and together we are working to tackle crime and anti-social behaviour. Gaining recognition The secure station accreditation scheme is aimed at cutting crime at rail stations. It provides a national standard covering four areas station design, management of the station, management of crime and passenger perceptions.accreditation is approved by the British Transport Police and the Department for Transport. Meteor strongly recommends Park Mark, the car park security accreditation scheme, to its clients, often including accreditation under the scheme as a contract objective. Crime reduction Southern Southern s investment in security issues has been a measurable success.the 2008 crime figures released by the British Transport Police show a 4% reduction on 2007 figures and a massive 56% reduction in crime on the network since This reduction has been achieved through a combination of investment in CCTV and safety partnerships with the British Transport Police and local police. As well as increasing CCTV presence on trains, Southern now has an integrated Control Centre in Croydon which houses a CCTV monitoring suite, Operations function and Customer Information Centre. Having an integrated Control Centre means that different parts of the business are able to respond much more quickly to issues that arise on the network. Southern s Task Force is another integral part of its safety and security strategy.the Force is made up of Southern staff, revenue protection officers and British Transport Police officers who work together to tackle crime on trains and in stations. CCTV on bus fleet (%) CCTV on rail fleet (%) Bus accidents per million miles** SPADs per million miles * *Data includes the effects of the older London Midland fleet joining the Group in 20. New and refurbished London Midland trains came into service during 20, fitted with CCTV. **Bus accidents which result in a notification to a claims handler. Southern s CCTV monitoring centre in Croydon

9 Corporate Responsibility Report 2009 Go-Ahead Group plc 9 Reliability, convenience and punctuality of services Deregulated bus punctuality (%) Rail punctuality (PPM) (%) Southern London bus punctuality Excess waiting time (minutes) Southeastern London Midland* 88.6 *Includes data for London Midland for the period November 2007 to June The success of our business depends on our customers.we need to encourage people to consider the bus and train as viable alternatives to the private car.to do this, we must demonstrate that public transport is not only better for the environment, but that it is fast, efficient and reliable. We serve over a billion passengers a year. These passengers expect our trains, buses and coaches to be in the right place at the right time. We know from talking to our stakeholders that reliability, punctuality and convenience are the most important factors that customers consider when comparing our services to alternatives. Investing in the latest technology We continue to invest in new buses and trains offering greater capacity and comfort. Some of our new buses offer Wi-Fi and many have real-time information screens. Southeastern has been previewing a new domestic high-speed rail service, giving passengers an opportunity to try out the service s new 140-mph trains before they are fully launched in December. On the railways we have invested in ground-breaking new technology that automatically counts passenger numbers by weight.this system provides much improved travel data helping to target services to relieve crowding. Making our services user friendly If we want to encourage more people out of their cars and onto buses and trains, we must provide convenient and straightforward services. One of the benefits of our unique devolved structure is that each managing director has the freedom to respond to local transport priorities and can therefore offer a service that meets the needs of local people. Some successful initiatives introduced by our bus division include the introduction of flat fares that are easy for passengers to understand and easy to collect and the introduction of locally branded services to build visibility and loyalty. Go North East operates over 50 branded bus routes. Customers need information to help them plan their journeys and move seamlessly between services.a number of our operating companies have upgraded the information provided on their websites, with up-to-the-minute details on everything from service provision to local weather. On our buses, on our trains and at our stations, we continue to invest in technology to provide real-time information and service news. Integrating our services We encourage our operating companies to work together and with others to provide integrated services so that passengers can easily move from one service to another. Explaining our performance Rail Rail punctuality is measured on the basis of the Department for Transport s Public Performance Measure (PPM).This is the percentage of trains that arrive at their final destination within 5 minutes of their scheduled arrival time, which is the accepted industry definition of on-time.targets are set annually and we aim to meet or exceed these year-on-year. Deregulated bus The punctuality of our deregulated bus operations is measured as a percentage of buses that arrive at their stop one minute early to five minutes late.therefore the higher the percentage the better.this time frame is an industry standard definition of what constitutes being on time.we are committed to providing reliable services and our aim is to improve punctuality each year.the industry average is 74%. (Source: DfT Public Transport Statistics 2008.) London bus The reliability of our London bus operations is measured on the basis of Transport for London s (TfL) excess waiting time.this is the time in minutes passengers have to wait for a bus above the average scheduled waiting time. Therefore, the lower the excess waiting time the better.we are committed to providing punctual services and our aim is to maintain our low excess waiting time performance.the industry average is 1.09 minutes. (Source:TfL. 1 April June 09). Aviation services Please see website for statistics about Aviation services. A convenient way to travel Bus operating companies As urban areas become more congested buses are increasingly seen as a quick and convenient way to travel. Investment in modern and high quality fleets by operating companies, combined with investment by local authorities in dedicated bus routes, has resulted in cleaner, safer, more frequent and punctual services. A Brighton & Hove Bus highlights the convenience of travelling on buses.

10 10 Go-Ahead Group plc Corporate Responsibility Report 2009 Issues in depth continued Improving our environmental performance We congratulate Go-Ahead in achieving the Carbon Trust Standard and challenge other organisations to follow their example and prove that they too are taking tangible steps to fight climate change. Tom Delay, CEO, Carbon Trust It is now widely accepted that climate change and global warming is one of the biggest challenges facing our society. It is imperative that everyone works together to tackle this issue and find effective solutions. Transport now accounts for one third of UK greenhouse gas (GHG) emissions with the private car close to 60%. In contrast, buses and trains together account for only 5%.The maths is clear switching people out of cars to other modes of transport delivers real carbon savings today. We recognise that at as a transport provider, we contribute to GHG emissions. As our passenger numbers grow, we are putting more vehicles on the road and rails. Despite this, we also help to alleviate environmental impacts, because trains and buses are much more environmentally efficient per passenger journey than the private car. We remain committed to improving the energy efficiency of our operations. Not only does this have important environmental benefits but it helps to reduce operating costs. Our business success is determined by increasing passenger numbers and encouraging people to use public transport rather than cars. It also rests on our reputation as a responsible operator, and it is our duty to ensure that our services are as sustainable and environmentally efficient as possible. Our approach Our main environmental impacts come from the emissions associated with our vehicles.we also use energy in our stations, depots, garages and offices. As a Group, we have environmental and energy policies which explain our issues and set out our approach to managing them. Internal energy targets are set for each of our operating companies and energy performance indicators are reviewed at monthly operating company board meetings. We believe that innovation and technology will be the key to tackling climate change. Over the last few years we have consistently invested in new vehicles and experimented with new technologies, and this approach has led to a significant improvement in our performance. Reducing train electricity consumption Southern and Southeastern Over half of the Group s carbon emissions result from rail traction electricity. It was therefore a significant achievement when in 2008 Southern and Southeastern became the first rail operators to introduce regenerative braking on the third rail system*. This saves energy by capturing electricity through braking and returning it to the rail network. In addition, coasting boards and eco-driver training will help further reduce energy consumption across our rail operations. A saving of: Our results: 5% Reduction in electricity traction consumption 10,740CO 2 tonnes Equivalent to annual emissions from 2,000 households *The third rail or conductor rail is the electrical system by which some trains draw their power.this system is mainly found in the South of England. For Southern only as Southeastern currently have a small proportion, around 5%, of fleet fitted with regenerative braking. 65% of Southern s fleet is now fitted with regenerative braking.the number of trains fitted with the braking technology will continue to increase across both franchises next financial year, further reducing electricity traction consumption.

11 Corporate Responsibility Report 2009 Go-Ahead Group plc 11 In recognition of our commitment to operating responsibly, we have become the first UK public transport company to be officially certified with the Carbon Trust Standard after taking action on climate change.the Carbon Trust Standard is an independent certification recognising achievements in action on climate change by leading organisations in industry, commerce and the public sector. We are a member of Green500, a London Development Agency initiative which works with organisations with the greatest carbon saving potential to help set a global standard in environmental excellence. Go-Ahead is a member of Greener Journeys, a campaign to raise awareness of the role buses and coaches can play to help the Government deliver its carbon reduction targets by giving people a real alternative to private car use. Investing in new technology The biggest difference we can make to the emissions generated by our bus fleet is to invest in the most efficient vehicles available. Our vehicle purchasing policy therefore specifies that all new vehicles should comply with the latest European emissions standards. Over the years we have improved our energy efficiency whilst improving our standards of comfort for passengers. Benefits like air conditioning and Wi-Fi do have an environmental impact, however more modern and comfortable buses help to attract more passengers on to public transport and away from cars. Other factors which make a difference are a rigorous emissions testing and maintenance system, and the use of cleaner fuel. At present, we use Ultra Low Sulphur (ULS) Diesel, considered to be more environmentally friendly than standard fuels, across our fleets.we have adopted a bio-fuel mix of 95% ULS Diesel and 5% bio-diesel mix.we are also proactive in exploring future cleaner fuel options. Reducing train electricity consumption Our train companies are also committed to reducing their environmental impact, although they face a greater challenge as they are dependent on the rail network and surrounding infrastructure to deliver their services. Our companies work closely with Network Rail and the rest of the industry to find ways of improving performance. Southeastern, Southern and London Midland have been working alongside Network Rail to introduce regenerative braking.this groundbreaking new system transfers the energy generated through braking back into the rail system, to power other trains.the results have been impressive. Southern has seen a 5% reduction in electricity traction consumption on its network, which adds up to around 10,740 CO 2 tonnes. In addition coasting boards and eco driver training will help to further reduce energy consumption. Tomas Koroknai (right), one of Go-Ahead London s top performing fuel efficient drivers, receives his Go-Green certificate from Keith Ludeman, Group Chief Executive. We re doing our part to cut emissions Bus operating companies We recognise the environmental and business benefits of improving our fuel efficiency. During this financial year we made a significant investment and fitted all of our 3,500 buses with black box technology which monitors engine behaviour. The technology includes an in-cab prompt which notifies the driver when they are not driving in a fuel efficient way. Data collected from the black box is monitored and analysed back in the office. Results have been encouraging with fuel efficiency improving by around 5%. Our bus drivers are a key element to making the programme a success.all drivers have been through a Safe & Fuel Efficient Driving programme which includes both theoretical and practical training.to help motivate employees, operating companies run competitions and schemes to reward drivers who drive safely and efficiently. Our target: 5% Improvement in fuel efficiency A saving of: 14,500CO 2 tonnes Equivalent to annual emissions from 2,600 households CO 2 per passenger journey bus (kg) Rail division CO 2 emissions per passenger journey (kg) Bus fleet with Euro 2 engines or above (%) Bus fleet with Euro 4 and Euro 5 engines (%) The increase in CO2 emissions per passenger journey is mainly a result of the addition of the London Midland franchise. Most of London Midland s trains run on the diesel network. Diesel is five times more carbon intensive than electricity.the conversion factors used are in accordance with Guidelines to DEFRA s Greenhouse Gas Conversion Factors for Company Reporting June Bus emissions per passenger journey (g) NOx PM We have changed the way we calculate the CO 2 emissions relating to fuel usage by buses.we now apply DEFRA conversion factors to litres of fuel consumed rather than basing the calculation on kilometres operated.we have restated previous years figures for consistency purposes.

12 12 Go-Ahead Group plc Corporate Responsibility Report 2009 Issues in depth continued Improving our environmental performance continued 16% Reduction in site energy use* 37% Site waste recycled 75% Site energy generated from renewable sources (approx) Energy saving and recycling in our depots, stations and offices The energy used in our depots, stations, garages and offices also contributes to our overall carbon footprint. As part of our wider commitment to good environmental management, we seek to reduce our energy consumption and recycle as far as possible. As well as issuing a Group-wide energy policy we have set stretching targets for each of our operating companies to reduce energy usage in their buildings by 10% in 20. Our key achievements include: First public transport company to be officially certified with the Carbon Trust Standard 16% reduction in site energy use* 37% of our site waste is recycled Around 75% of our site energy is generated from renewable sources. Sharing best practice We believe we can improve our performance by sharing best practice across our operating companies and working in partnership with organisations outside of the Group.The Group regularly holds Energy Forums where senior managers from each of our businesses attend to share best practice and help develop Group-wide standards. Reducing our site energy Group In June 2009 we replaced traditional high bay lights at our bus and rail depots and multi storey car parks with new intelligent energy saving lights.the traditional lights accounted for a significant proportion of the carbon dioxide emissions caused by our site energy use and were very expensive to run.the new lights have sensors so that they turn on and off according to movement and if it is a sunny day they can adjust themselves to be less bright.this means that the system only provides light when it is needed. Initial results have been very encouraging and at some depots electricity usage has reduced by around 50%. Our target: Estimated annual saving of: 10% Reduction in Group site electricity consumption 4,300CO 2 tonnes Equivalent to annual emissions from 780 households It is important for us to be at the forefront of latest thinking and technologies in this field, so we work closely with experts such as the Carbon Trust.We are also a member of Green500, a London Development Agency initiative which works with organisations with the greatest carbon saving potential to help set a global standard in environmental excellence. We are the only public transport company to sit on the Council of the Low CVP (Carbon Vehicle Partnership), a government funded partnership with industry to accelerate the move to low carbon vehicles and fuels, and have recently joined the London Mayor s Electric Vehicle Partnership. *Like for like comparison. Gas consumption data has been normalised by use of degree days to account for variation in temperature. Philip Kirk, MD Oxford Bus Company, which has pioneered a clean air rating system on his buses to inform passengers about their environmental performance. Environmentally friendly bus fleet Oxford Bus Company Research conducted in 2008 showed the Oxford Bus Company to be operating the most environmentally friendly bus fleet anywhere in Britain.The company works closely with the council to improve air quality in Oxford, most recently on the city s new Low Emission Zone. Each bus has a star rating to show how environmentally friendly it is.the ratings are based on demanding independent standards set by the European Environment Agency and clearly show what the business is doing to help the environment.the company has a simple policy: new vehicles are bought to the highest emission standards available at the time, and emission suppression equipment is added to ensure the cleanest vehicles affordable are being operated.

13 Corporate Responsibility Report 2009 Go-Ahead Group plc 13 Accessibility for all, particularly people with disabilities 88% Bus fleet with low floor access 100% Oxford Bus Company s bus fleet with low floor access A truly public transport system needs to be accessible to everyone. Millions of people use our services every day, and their needs are diverse. It is our responsibility to ensure that our trains, buses and stations make travelling as comfortable and easy as possible. When investing in new buses and trains, we must keep in mind the broad profile of our passengers.they may be old or infirm, travelling with small children, partially-sighted, hard of hearing or using a wheelchair.the success of our business depends on our ability to meet the needs of all our customers, ensuring that public transport is a genuine, accessible alternative to the car. Across the Group, our companies have been investing in accessible trains and buses that ensure public transport is an attractive option for everyone. Go North East pioneered Easy Access Wheelchair Guarantees on its bus network. We have worked to make information about our services clear and easy to access, invested in on-board, real-time information systems and more detailed information on company websites.timetables and other useful passenger information is clearly set out at our stations. Southern is developing new information zones within stations. Each zone will contain information relating to a specific topic such as fares, timetables or onward journeys, making information easier to find. There is, however, a limit to what we can achieve on our own, since we rely upon an infrastructure that is controlled by others and a substantial proportion of this infrastructure remains inaccessible, dating from a time when passenger numbers were far lower and accessibility was not given due consideration. The steps and narrow walkways of stations, the lack of clear signs directing passengers to stations and bus stops are all issues that we must work in partnership with communities, Government and representative organisations to resolve. In addition, our staff are trained to offer assistance to passengers with disabilities. Improving accessibility London Midland Since joining Go-Ahead in November 2007, London Midland has invested in improving the accessibility of its fleet and stations. As well as purchasing new trains, London Midland has been working closely with local authorities and transport groups to provide easier access to stations for people with limited mobility. The work done to the platform at St Albans Abbey station is one example of this partnership in action.working with Hertfordshire County Council, the Department fortransport and Network Rail, a variable height platform has been designed to help bridge the gap between the platform and trains.the station, which is managed by London Midland, becomes the second in the country to get a modular Easier Access Area. London Midland has worked with transport and local authorities to create a new travel plan for people using Kings Norton station.the station, which has been named the West Midlands first eco-friendly station, is one of 24 travel plan pilot stations all of which focus on providing better facilities for people who plan to cycle, walk, or use the bus to get to stations. Easy Access Go North East Go North East has the largest accessible bus network in the country outside London. Following consultation with disability groups, the company has decided to move away from mechanical ramps and support a replacement programme to introduce manual ramps on all of its services over the coming years.the move has been welcomed by disability groups who feel that manual ramps are more reliable than mechanical ones. The company remains the only bus operator in the region to offer an Easy Access Wheelchair Guarantee which provides a complimentary taxi for anyone in a wheelchair if a low floor bus is not provided where scheduled or if a ramp fails to operate. Individual route branding gives distinct colours and logos to over 50 routes so that passengers easily recognise accessible services. Bus fleet with low floor access (%) Certified accessible train units (%) (Rail Vehicle Accessibility Regulations) * saw a significant change in the composition of RVAR compliant and non-compliant rolling stock when the London Midland franchise began. Certified accessible train stations (%) Southern Southern Southeastern Southeastern London Midland London Midland * Go North East is re-introducing manual ramps following passenger feedback

14 14 Go-Ahead Group plc Corporate Responsibility Report 2009 Issues in depth continued Affordability for everyone, especially people on low incomes Public transport should be a viable travel option for everyone, even in difficult economic times. Buses and trains provide vital links both within and between communities; millions of people depend on the local bus or train to help them reach work, friends and family, shops, hospitals and much more. Passenger transport has proved reasonably resilient to the economic downturn as passengers compare the relative costs of bus and train to the perceived cost of private car use, including the costs of fuel, depreciation, car parking and congestion charge costs. The economic downturn has increased financial pressure on many people and made it more important than ever to keep our services affordable. Creating an affordable service brings benefits to our business through increased passenger numbers, and also benefits the community and environment through reduced congestion and cutting the emissions associated with travel. All our companies offer schemes that reduce fares for particular groups. Brighton & Hove, for example, offers reductions to passengers who buy saver tickets online. Bluestar, for example, runs its Get On Together scheme, which offers companies discounts on a range of tickets if colleagues club together and buy tickets in bulk. Last year, the government introduced free travel for those over 60.We have been working closely with the local councils in our regions to implement this scheme. Concessionary passengers now represent just over 30% of Go-Ahead s bus passengers and just over 20% of bus revenue. It is important that we work with other stakeholders in our regions, including local authorities, colleges, hospitals and major employers, to identify and target those groups that benefit the most from discounted fares. Special discounts Go North East With many people feeling the effects of the economic downturn, Go North East has introduced a range of special discounted ticket offers to help passengers save on the essential cost of travelling whether that is travelling to work or education or even travelling to look for work. As well as special offers, Go North East offers reduced fares in particular parts of the Gateshead area where social exclusion is an issue.the company has worked with Nexus, thetyne & Wear PassengerTransport Executive, to study the social and economic impacts of these initiatives. Value for money Go North East Our devolved structure gives local bus companies the autonomy to tailor products to their local markets. In light of the current economic climate, Go North East has focused heavily on marketing value for money fares. The bus market is relatively resilient to economic downturns as bus can often be the cheapest mode of transport. EasitSurrey and EasitCrawley schemes Metrobus Metrobus is involved in the EasitSurrey and EasitCrawley scheme in partnership with local authorities to improve public transport links. In East Surrey, those with an Easit sticker on their staff pass can get 20% off Metrobus fares. Staff Making rail travel easier Southern We are committed to making it easier for passengers to travel on our services. Southern has launched an online booking system where passengers can quickly and easily buy their tickets and can save a significant amount by buying advance tickets online. from Metrobus and Easit attend roadshows at locations including East Surrey Hospital to hand out the stickers and timetables. Metrobus also offers discounted fares when companies bulk buy tickets for staff. Many local companies buy single journey tickets so that visitors returning to Gatwick airport take a bus direct to the terminal rather than taking a taxi.

15 Corporate Responsibility Report 2009 Go-Ahead Group plc 15 As an employer 10.4m Training spend m* *restated data. 102,931 Training days Group-wide 20 53,495 **Employee numbers include part time workers and are based on year end figures.these are different to the employee numbers reported in the Annual Report, which are based on averages for the year. Go-Ahead only employs 53 people at head office out of a total of 27,100. The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) is a statutory requirement for all companies and relates to a work place incident which results in loss of work for over 3 days or a legally reportable incident to the Health & Safety Executive. RIDDOR accidents per 100 employees Number of employees** (%) Rail 19.4 Bus 38.7 Aviation services and parking 0.2 Group 41.8 Our employees keep our company moving. From our train and bus drivers to our station staff and those working in our offices, all play a vital role in the success of our network. We employ over 27,100 people across the UK, and in many of the cities where we operate we are one of the largest employers.we have a responsibility to all our people to provide a positive, supportive working environment. We want the Group and our companies to be enjoyable and stimulating places to work, ensuring that our people stay with us. Reducing employee turnover leads to improved customer service amongst our passengers and customers. Training and development The right training is essential to the success of our business.training helps our service staff to respond to customer needs, and our drivers to drive safely and efficiently.training is an investment in our people, helping them to feel valued and move forward in their careers. This year we have significantly increased the amount we spent on training.this reflects our investment in a new driver training programme to promote fuel efficient and safe driving techniques across our bus operations, and the introduction of the Certificate of Professional Competence, a new mandatory qualification requirement for bus drivers. Health, safety and well-being A healthy workforce is a productive and happy workforce. Each of our operating companies has a comprehensive health and safety management system, and our Group expectations demand that they continue to push the boundaries of their health and safety performance. Health and safety performance is reviewed weekly throughout our operating companies and we encourage every member of staff to take responsibility for any health and safety issues that they can control. In addition to our review and support structures, we use an external specialist consultancy to monitor and audit our performance.training on health and safety matters is provided to all new staff and existing employees receive refresher courses. Equality and diversity We employ people on the basis of their skills and potential.we value the individual, regardless of race, gender, age, sexuality or disability. Our passengers and customers are drawn from every segment of the population, and we would like our employees to reflect this diversity.we are particularly focused on attracting more women to the bus industry. Employee engagement It is important that our employees feel valued and motivated.an engaged workforce means better attendance rates, lower employee turnover, and a better service for our passengers. We encourage our employees to share their views and opinions.a number of our companies have Stakeholder Boards,which bring together employees, individual passengers and representative bodies to share their views.the insight provided by these boards plays a key role in driving improvements. Our companies maintain relationships with recognised trade unions and have a network of local employee representatives who are consulted on key business decisions. Staff turnover Keeping staff turnover and absence rates low is a priority for the Group. This has been an extremely difficult year for many people and the economic climate remains uncertain. Sadly, a number of our companies did find it necessary to make redundancies this year.we sought to keep these to a minimum by taking alternative steps such as internal transfers where possible. Staff turnover Bus Division Rail Division Aviation Services Division Data includes the effects of widespread employee restructuring at London Midland during their first year of operation (20) Employee development and engagement Southeastern Southeastern has achieved full Investors in People accreditation this year, six months ahead of plan. The accreditation is a culmination of years of investment and dedication to employee management and development issues. One aspect of Southeastern s training and development is its NVQ programme. Employees are able to work towards a range of NVQs, however the main focus is on attaining Level 2 Customer Service.This is one of most popular vocational qualifications in the UK reflecting the importance of equipping staff with strong customer service skills.as a result of the programme s huge success, Southeastern is aiming for 35% of its workforce to have an NVQ by the end of Southeastern undertook an unusual employee engagement programme during the year called The Big Picture.The aim was to produce a visual picture that would represent the strategic vision of the company and experience of working for Southeastern, and use this as a way to engage employees. Customer service skills are a training priority. Employees are able to work towards a range of NVQs.

16 16 Go-Ahead Group plc Corporate Responsibility Report 2009 Issues in depth continued Strong relationships with local communities 270,000 This year we donated around 270,000 to various charities and community groups Public transport builds links both within and between local communities.we have a uniquely devolved structure which enables our companies to be responsive to local community needs, and deliver services that are tailored to local circumstances. We support local communities by providing a vital service. People use our buses and trains to get to work, to see family and friends, to go shopping, to go on holiday, and to access essential services such as hospitals. Our investment in safety and security also contributes to a better quality of life for people in the areas where we operate. As well as participating in the secure stations accreditation programme, we work closely with local charities and the police to ensure our staff and customers feel safe. Listening to our Stakeholders We want to feel part of local communities, and encourage loyalty amongst our customers. To do this, we need to ensure that people have an opportunity to talk with us and share their comments and opinions.we do this through Meet the Manager sessions, mystery shopping, customer surveys and employee feedback. We also pioneered the concept of the Stakeholder Board, first introduced by the Oxford Bus Company.The Board is invaluable in providing insight into stakeholder priorities, and has been adopted widely by Go-Ahead s operating companies and others in the sector. This year, we plan to build on the stakeholder board model at Southern through the development of a new Community Ambassadors scheme. Drawn from existing staff, local communities, ambassadors will represent and engage with local community groups to explain the benefits of rail travel. The scheme will help to reduce social exclusion, encourage economic regeneration and deliver a railway that better reflects the communities it serves. It will also benefit our business through increased passenger numbers. We also make various donations to charities throughout the year, in the form of financial support as well as support in kind. Many of our employees are enthusiastic volunteers and fundraisers.this year we donated around 270,000 to various charities and community groups. A number of our commuter projects came to an end this year and this is reflected in a lower community spend compared to last year. We are in the process of considering plans for future community investment activities. I m on the Bus Brighton & Hove Brighton & Hove Bus company s I m on the Bus campaign features local bus users who take pride in the services provided by the city s main bus company. The campaign has been running since 2004 and last year was expanded to show how buses fit into city life. The Bus and The City campaign features people from all walks of life who use the bus to fulfil their job, their education, leisure pursuits and community work. Brighton & Hove bus patronage has grown by around 5% per year since 1993 contributing to a 3% reduction in city centre traffic in the last three years. Reflecting Brighton & Hove s community focus, its buses feature local passengers who are proud to use the company s services. Wardens scheme Meteor Meteor has had particular success working with Lincolnshire Police on a new Town Centre Wardens scheme in Boston.The service has seen Meteor work with Boston Area Regeneration Group, Boston Chamber of Commerce and the Boston Bid Group and is funded directly by local businesses within the town centre. The wardens link into the town radio system and CCTV network providing vital information to the police on any potential criminal incident.they are also responsible for minor maintenance work within the town. The wardens are highly visible by the general public giving whatever assistance is required. This scheme will enhance the town s image and make the visitor experience much more pleasurable, safer and secure.the success of the scheme means Meteor has now been asked by Lincolnshire Police to join forces with them in other local towns.