Inspiring change...Mitie Group plc Sustainability Report 2014

Mitie Group plc Sustainability Report 2014

inspiringchange

Introduction

02Mitie Group plc Sustainability Report 2014 Clients People Communities Environment Suppliers AppendicesOverview

For us, being a responsible business is not optional. Doing the right thing creates long-term value for Mitie.So whether were developing great relationships with our clients or recruiting and developing the best people in the industry, our sustainability strategy is consistent with our corporate strategy.

Track recordWeve been setting ourselves sustainability targets and publishing the results for the last nine years and our performance has improved year-on-year. In 2014, we have retained our Platinum status in the Business in the Community CR Index, been recognised at the Opportunity Now Excellence in Practice Awards and, impressively, been named a Times Top 50 Employer for Women, for the fourth consecutive year.

Our goals and targetsWe have very clear sustainability ambitions, illustrated by our 2020 targets. Our 2014 sustainability report aims to update all our stakeholders on our progress against those targets, as well as setting out what they can expect from us over the next few years.

In this report:Clients 06We look after our clients properly, delivering a world-class service that creates long-term and mutually-beneficial relationships, as well as focusing on their social and environmental goals.

People 10We recruit, motivate, develop and retain the best people to make sure we have the right talent available in all areas of the business. This section looks at talent and development, diversity, engagement and health and safety.

Communities 19Reaching out to our local communities, especially in partnership with clients and suppliers, enables us to make a positive difference to people around us.

Environment 22We believe we have a responsibility to do everything we can to minimise our impact on the planet and reduce our carbon footprint, and were fully committed to doing this.

Suppliers 25We want all our suppliers to share our own high sustainability standards, and were doing everything we can to help them improve their performance.

One approach. One strategy.A strategy to deliver stakeholder value through a focus on sustainable, profitable growth lies at the heart of our business, which is why our sustainability strategy is consistent with our corporate strategy. Our strategy has six clear elements and this report focuses on three of those elements by looking at our performance in each of our stakeholder groups.

03Mitie Group plc Sustainability Report 2014 Overview Clients People Communities Environment Suppliers Appendices

Strategy

6Responsibility

Take a long-term view by acting responsibly.

1People

Develop the best talent at every level

of our business. 2Clients

Provide world-class services to attract new clients and retain and expand contracts with

existing clients.

5Risk

Managing risk and protecting our business

and brand. 4 New markets and service

Develop our service capability in our current markets and in markets

that offer attractive growth opportunities.

3Operational excellence

Deliver market-leading, innovative services

with maximum efficiency.

Making sustainability matter for all our stakeholdersIt is important that our sustainability strategy and reporting reflects the issues that are most important to Mitie and our stakeholders. Thats why we have structured this years report around our stakeholders, not the elements of our strategy. Youll notice weve left out Operational excellence, New markets and Risk; this is because they cover business-as-usual operations, and because targets and KPIs for those areas are already covered in our 2014 Annual Report and Accounts.Our governance framework keeps our sustainability strategy on track, making sure we are focusing on material issues, and are properly accountable for the way the strategy is put into practice.

Go to our website for more on governance, materiality, and stakeholder engagement, as well as our relevant policies.


Strategy

Improve client satisfaction to achieve a Net Promoter Score of 25%Our Net Promoter Score is 18%, which is an increase of 6% on last year.

Progress

Achieve 90% employee engagement based on Mities proprietary modelOur score this year is 72%. Best practice for this kind of survey is 84% which means were close to achieving this target.

Progress

Embed diversity in all our practices (achieve 90% diversity score based on Mities proprietary model)This year is the first time we included a diversity question in our employee survey and the statement I feel that Mitie values peoples differences scored 72%. This is a good start but we know we have further progress to make.

Progress

Embed our key Work Safe Home Safe! behavioursIn our last sustainability survey 94% of employees said they were aware of the programme, which is an increase of 2% on last year.

Progress

Our sustainability targets for 2020Last year we set ourselves aspirational targets to be achieved by 2020, supported by short-term milestones. Members of our Sustainability Steering Group are responsible for tracking progress on these targets and managing the milestones in their respective departments and operational businesses. The targets listed here are the most material to Mitie.

Dedicate 1% pre-tax profit to community investment, through the Mitie Foundation activitiesOur community investment for the year 2013/14 represents 0.7% of our pre-tax profit which is fantastic news and we are looking to build on this progress next year.

Progress

Reduce our carbon footprint by 35%So far we have achieved a 22% carbon footprint reduction which means were on track to achieve 35% by 2020.

Progress

Embed our values and beliefs into our supply chainWe continue to work with all our suppliers, collaborating with them to embed our values and achieve sustainable improvements that benefits them and us, as well as our clients.

Progress

On track Work to be done


Sustainability matters to everybody

Chief Executives overview

I was particularly proud to launch the Women of Work (WoW) network in 2014. WoW is a special interest group that aims to raise the profile of women at Mitie, while helping them grow in confidence and meet new colleagues.

It was also good to see our commitment to diversity receive a further boost through a new partnership with Remploy, the UKs leading provider of specialist employment services to people who experience complex barriers to work.

In addition, we have continued to do all we can to help unemployed people find work. The Mitie Foundation celebrated its first anniversary in May 2014 and in the last year has found work for 38 unemployed people and supported careers events at more than 100 schools.

However, the year was not only characterised by internal initiatives which focus our own minds on sustainability issues. We also worked alongside several clients to help them achieve their own sustainability targets. This is an increasing trend and we welcome the opportunity to showcase our achievements and use our framework to understand our clients visions and move them towards a more sustainable future.

Looking aheadBuilding a profitable yet sustainable organisation is one of the greatest challenges facing a modern business. Together, our corporate and sustainability strategies work hand-in-hand to drive performance while minimising any negative impacts we may have on our stakeholders.

This has been a period of significant achievement and I would like to thank our people for their tireless work and enthusiasm, which is making our business more sustainable year-on-year.

Ruby McGregor-Smith cbe Chief Executive

Focusing on stakeholdersSustainable, profitable growth is at the very centre of Mities approach. It defines both what we do and how we do it.

Our sustainability strategy is inextricably linked to our corporate strategy. We work hard to minimise any negative impacts we may have on our stakeholders while adding value every step of the way.

A long-term businessWe are building a business that will deliver benefits not just today or next year, but for the long term. Looking to the future is a way of life at Mitie, and enhancing diversity and talent management plays an increasingly important role in helping us continue to seize opportunities.

Every day I am inspired by our young talent. They constantly challenge the status quo and bring about better ways of working. It is their dynamism and vibrancy that we have captured in our brand refresh. Supported by our new values of excel, challenge and inspire, the new brand reflects the spirit of Mitie and what makes us different.

A year of achievementBecause our people work across a multitude of sites, communication and engagement can be real challenges for us.

During the year, we carried out a workforce survey to identify how we can best improve communications and give our people the information they need, via their preferred channel. We have analysed the initial conclusions of the report and developed a strategy which will enable us to engage with our people and educate managers around leadership and inspiration.

Overview Clients

ClientsWhat can clients expect from us especially in relation to their social and environmental goals? The key to achieving our target is meeting, anticipating and hopefully exceeding our clients expectations. We do this through great relationship management, innovative thinking and clever use of technology, backed up by a culture of customer service.

06Mitie Group plc Sustainability Report 2014 People Communities Environment Suppliers Appendices

Overview Clients

VodafoneWe have been working closely with Vodafone to constantly deliver above and beyond our contractual agreements. This year, the introduction of the sustainable development framework has formalised this ethos. As part of the framework, we introduced the 1team brand to encompass Mitie, Vodafone Property and other third party FM suppliers and to ensure we deliver a united approach for the client. We also insist that 100% of our people complete the Work Safe Home Safe! training, and have recently developed an employee rewards scheme, Hero Awards, to recognise good work and excellence across 1team the winners of which are put forward to our Stars awards.


Clients

What weve focused onSustainable developmentWhen it comes to our clients, its not enough to prove that we are a sustainable business; we need to be helping them realise their sustainable vision too. Over the last year, we have worked in partnership with clients to develop a unique framework to demonstrate we understand their sustainable ambitions and fully collaborate to make them successful we call it our sustainable development framework. It involves understanding our clients sustainable vision and delivering not just on contractual requirements but looking closely at how we can raise the bar working with them to evolve their strategy further. The framework is mainly utilised on large contracts where sustainability is high on the agenda. To date, we have engaged with 17 clients, which represents 29% of our total revenue.

By providing transparency across sustainable FM delivery, starting with our clients vision and purpose, adopting a sustainable development mobilisation plan to demonstrate implementation, a dedicated sustainable development manager and regular communication of sustainable issues to empower our teams to be accountable, our framework embraces the full sustainable spectrum: environmental, social and governance and encourages our people and suppliers to play an integral part in our clients sustainable success.

In each of the identified contracts, weve appointed Sustainable Development Managers, we currently have 19, who are responsible for co-ordinating all the activities within the framework, promoting best practice and encouraging knowledge sharing via monthly site meetings, network calls and bi-annual forums. We also engage with the client at regular Sustainability Steering Group meetings as well as business review meetings.

Client relationship management We launched an internal campaign called Miclient to encourage everyone at Mitie to think, and do something, about client retention. The fundamental principle of the campaign is that by keeping our customers happy, we keep our customers and grow our business. By putting operational excellence at the very centre of everything we do, our customers will be part of an experience that goes above and beyond that provided by a typical service provider. We will become their partners, and a part of their future. The campaign includes a video introduction, best practice guides, communication templates and other tools to make sure client retention is front of mind for everyone.

Independent researchDuring the first quarter of 2013, we commissioned an independent research programme among senior property and facilities directors to develop a closer understanding of the issues and opportunities they face. The research identified a number of pressing issues which we addressed in a series of publications and events over the last few months.

700,00024/7 FM helpdeskLast year we resolved 700,000 reactive requests through our 24/7 FM helpdesk.

Find out more here.Weve recently created a new section on our website dedicated to these issues.

Overview Clients

Network RailOur client, Network Rail, set us the challenge of achieving over 95% landfill diversion. So over the last year we have introduced a standard recycling policy across all buildings, negotiated new supply chain agreements, and consolidated waste reports to recognise problematic waste streams which have all helped. However, the most significant part of the project was the implementation of an employee engagement campaign to change peoples behaviours when it comes to recycling. As a result of this approach, the recycling rate increased from 23% to 66%* and we exceeded our target diverting 97% of all waste from landfill.

*Baseline year 2010


Clients

PerformanceProgress on 2020 target Our Net Promoter Score is 18%, which is an increase of 6% on last year. Were delighted with the result, especially as weve also seen a threefold increase on the number of respondents to the survey. This year, to take into account the increased number of responses from smaller clients, we weighted our scores by business unit to represent their percentage of our overall revenue.

For the second consecutive year, Mities FM helpdesk team, 24seven, has been shortlisted for an ICMI European Call Centre and Customer Services Award (ECCCSA).

The helpdesk works as the eyes and ears across the majority of our integrated facilities management clients estates logging work requests over the phone, online or by mobile devices. Last year, we handled over one million calls, 250,000 emails and resolved 700,000 reactive requests.

Were working through our sustainable development framework with clients (who collectively represent 29% of our revenue) to help them achieve their sustainable ambitions. Our main successes include:

1. The development and implementation of an experiential learning programme for leaders and managers on our flagship contracts. The programme is designed to equip leaders with the knowledge and skills to create the environment necessary for colleagues to deliver excellent customer service first time, every time. Over 100 leaders have undertaken the programme to date.

2. Working with Vodafone to minimise the physical and environmental impact of their business travel. Our experienced Travel Team is responsible for Vodafones green travel initiative. This includes managing the bus contract at headquarters, parking plans on site, and working with the local area to increase parking options for Vodafone staff.

18%Net Promoter Score(up 6% on last year)

92%Retention rate on our top 50 strategic accounts

17Clients (or 29% revenue) engaged with us through our sustainable development framework

Read more here.

Overview Clients

Looking aheadOur sustainability development framework helps us open up the conversation with our clients and understand their economic, social and environmental goals. Over the next year, we aim to utilise the framework to drive sustainable practices across the current contracts and extend this to all new clients with sustainability high on their agenda as they come on board.

We will actively support Mitie Foundation activities where they deliver against our clients commitments. The Foundations objective next year is to place 70 people from their Ready2Work and work experience programmes on Mitie client sites.

A culture of customer service lies at the heart of our business and we will be introducing more training via the learning zone, our bespoke online learning system, as well as encouraging more networking amongst our regional teams. In fact, weve recently set up regional forums, a set of quarterly events open to all Mitie employees who want to enhance our operations, promote networking, and hold open discussion with Mitie colleagues to deliver the best service possible to our clients.


Clients

A Mitie rebrand Back in June 2013, we carried out a small-scale research exercise to find out what our clients thought of our brand. This exercise stemmed from the idea that todays business is very different from that which started out in 1987, and that the original brand no longer accurately represented who we are. The results of the research came as no surprise, with clients overwhelmingly in agreement on this matter. Consequently, in February 2014, we launched our new brand, along with a new vision and set of values which reflect the organisation we are today and where we want to be in the future.

Watch a short video here.

Overview People10Mitie Group plc Sustainability Report 2014 Clients Communities Environment Suppliers Appendices

PeopleWhat can our people expect from us? As a company with strong entrepreneurial roots, we have always understood the importance of motivation and rewarding people well. We have developed an inclusive culture where talent is recognised, not gender, age or ability; and we make sure our people are safe at work, so they can go home safe at the end of the day.


People Diversity

What weve focused onWe recognise diversity as a key differentiator within the FM sector and maintain a focus on gender balance through involvement with internal and external schemes promoting equality. These include our membership of WISE (Women In Science and Engineering), the campaign to promote female talent in science, technology, engineering and mathematics, from the classroom to the boardroom; our partnership with Working Knowledge, a social enterprise that creates chances for young people to open doors into employment; and an externally-chaired diversity steering committee, supported by a network of diversity champions throughout the organisation.

Women in workChaired by our very own CEO, Ruby McGregor-Smith, the Womens Business Council (WBC) was set up in 2012 to advise Government on the best ways to optimise womens contribution to UK economic growth. This year, Mitie played an integral role in producing two WBC reports, the initial full report and the follow-up version, A view from business six months on December 2013. The experience has given us an excellent grasp of the Councils recommendations as well as the opportunity to raise employees awareness of the importance of diversity within the workplace.

Our internal response to the Councils recommendations include both an increase in the number of employees involved in student-employer engagement programmes (+12% volunteering days on last year); and the creation of a Women of Work special interest group that aims to raise womens profile in the business and provide a platform for women in Mitie to share success stories and experiences.

Salary band 16-24 25-59 Over 60 Total

0-30K 7,350 54,189 6,716 68,25530-60K 22 3,501 315 3,83860-100K 27 542Over 100K 127 6 133Total 7,372 58,332 7,064 72,768

Salary band Female Male Total

0-30K 33,673 34,582 68,25530-60K 794 3,044 3,83860-100K 96 446 542Over 100K 20 113 133Total 34,583 38,185 72,768

Salary band Ethnic Minority Unknown White British Total

0-30K 19,750 14,654 33,851 68,25530-60K 387 1,096 2,355 3,83860-100K 23 217 302 542Over 100K 8 44 81 133Total 20,168 16,011 36,589 72,768

Age Summary

Gender Summary

Ethnicity summary

+12%Volunteering daysOur internal response to the WBC recommendations include an increase in the number of employees involved in student-employer engagement programmes, and were delighted to have increased our employee volunteering days by 12%.

515

Overview People

PerformanceProgress on 2020 targetWe have based our diversity score on the responses to our employee engagement survey. Our survey is made up of a set of statements which people have to agree or disagree with (rating zero to five). This year is the first time we included a diversity question for all our employees and the statement I feel that Mitie values peoples differences scored 72%. We have focused on this measure of diversity as we believe it provides a good indication of our overall performance; in this case, our people have expressed a high degree of comfort with our culture.

For the fourth consecutive year, we have been named as one of The Times Top 50 Employers for Women. Inclusion in the list demonstrates our strong leadership in gender equality and diversity culture.

We held four Women of Work (WoW) events across the country which over 200 people attended.

Looking aheadOver the coming year we will implement a better structure and standard processes across our business when it comes to diversity the wide variety of services we offer and clients we work with can make it difficult to have a one-size-fits-all approach. We will also aim to have better visibility of our rising stars across the business and any specific development they may need we need to be clear about what were doing to support all our people, helping them all achieve their full potential.

RemployWeve recently partnered with Remploy, the UKs leading provider of specialist employment services to people who experience complex barriers to work. We will work closely with Remploy to provide work experience opportunities, share information, and develop a range of appropriate recruitment processes to attract disabled talent. Our target is to recruit 150 Remploy candidates in 2014/15, and we expect that number to rise to 400 in 2016/17.

So far we have not reported on disability figures for Mitie, this is mostly due to a lack of robust data across our business. Through our work with Remploy we hope to improve our data and be able to report formally next year.

72%Diversity score

TOP 50The Times Top 50 Employer for Women 4th year running

1Leadership in diversity award

12Mitie Group plc Sustainability Report 2014 Clients Communities Environment Suppliers Appendices

People Diversity

Women of Work Committee Sponsored by Suzanne Baxter, Finance Director, Mities Women of Work Committee was established in October 2013. This special interest group aims to raise womens profile in the business, while helping them grow in confidence and meet new Mitie colleagues.

Through a series of networking events, 200+ people to date have shared stories and experiences related to work-life balance, career development and workplace wellbeing.

Everyone at Mitie (both male and female) is invited to attend these events which are individually organised by committee members and supported by members of the senior leadership team.


People Talent and development

What weve focused onWe have continued to focus on leadership and have added sections on recruitment and talent mapping to our Guide to being a Mitie manager, which sets out what we expect of our managers in terms of values, behaviour, leadership and management processes.

We have also launched two fantastic new tools for our people to take ownership of their career development:

kkThe learning zone, a bespoke eLearning platform available to all our employees, not just those based in a Mitie office. The platform offers over 85 courses and tracks a persons achievements throughout their career at Mitie.

kkOur career pathways website was launched in March 2014. The site allows Mitie employees to explore the multitude of roles available and find out about those transferable skills, qualifications or person specifications required for each role.

Challenge BoardAs part of our commitment to developing our people and ensuring that we offer the greatest operational efficiency to our clients, we developed our first ever Challenge Board in autumn 2013. The Challenge Board consists of representatives from across the business and every quarter they meet with Ruby McGregor-Smith to discuss issues that are relevant to all parts of the business.

Board members are early career high potential people and have a responsibility to feedback information from their peers and to provide a vital link between the Executive Board and everyday operations. To date, the Board has focused on topics linked to client-retention and communications across Mitie, developing ideas which are already being incorporated and used in our strategy.

The Challenge Board provides the perfect platform to present different insights and, as the name suggests, challenge the status quo, whilst also providing an additional internal network to improve cross-divisional performance. It also highlights our growing investment in our people, in this instance offering those who aspire to become directors in the future the chance to gain invaluable experience in this important area.

National Apprentice of the YearJack Seakins, 19, from the London Borough of Bexley was named Mities National Apprentice of the Year. Jack, who joined Mitie in 2010, works on our contract with the City of London Corporation. He was chosen for his outstanding attitude and his constant desire to make a success of his apprenticeship.

Read more here.

Overview People

PerformanceOver the last 12 months, 1,760 people have accessed our Guide to being a Mitie manager. Although this is slightly less than last year, the statistics show that a large proportion of users are accessing the guide regularly and using it as a reference point for all the forms, guidance and documents they need.

On the Learning Zone, 5,400 Mitie people have undertaken 135,878 hours of learning and this only since 1 November 2013 when the platform was launched.


People Talent and development

Looking aheadOver the last year, we invested heavily in setting up the tools for our people to take ownership of their career and development. The learning zone and career pathways websites are both projects we have invested in and now that they are set up, we will be concentrating on getting the message out to all our people to make sure the systems are used extensively. We will be developing team briefing templates and collateral as well as organising roadshows to publicise the benefits of both websites.

Were also keen to remind our people about the many opportunities within Mitie. Whilst these are already widely publicised and available via the career pathways site, we will increase the focus on our managers, by making sure we communicate the wide array of opportunities available and the importance of retaining talent within our organisation to them.

Account Management AcademyThis year saw the start of Mities new Account Management Academy, a bespoke training programme for our all-important account directors and managers. The launch event saw 18 of our leading account managers meet to discuss, engage and learn from inspirational speakers and each others experiences. Over the coming months, the programme will work to place greater focus on account managers and recognise the importance of this role within Mitie.

The learning zoneWe are constantly looking for ways to grow our people. The development of our very own training portal the learning zone has helped to broaden our peoples skillsets, leaving them better equipped to achieve their goals. The learning zone offers 85 eLearning titles, including our corporate induction, available to all of our people anytime, from any smart phone, tablet or computer, delivering both practical and technical courses to leadership and management. Our employees are now able to learn at their own pace and plan everything to suit their lifestyle.

1,729Apprentices currently in trading

9,872Training days delivered

135,878eLearning hours


People Engagement

What weve focused onEvery year we carry out an employee engagement survey, Misay, which looks at six areas of engagement: my role, development, the wider Mitie, team work, health and safety and reward and recognition. This year, the most improved scores were in the reward and recognition section which is great to see as we have been working hard in this area both making sure that all our people are aware of the benefits and reward schemes available to them, such as the Mideals discount site and our Mitie Stars awards, and ensuring managers make a point of saying thank you.

With ongoing acquisitions, and a remote, diverse workforce, delivering effective and efficient internal communications to Mitie people is challenging. This is why we launched Project Engage, an independent audit of our internal communication strategy, messages and channels.

The audit comprised a mix of qualitative and quantitative surveys as well as desk research and in-depth workshops with the marketing and communications team at Mitie. The main recommendations coming out of the project are: more communication from senior leaders directly, the reinvigoration of our quarterly newsletter to all employees and a focus on communications and managerial culture. We now have a robust internal communications strategy that drives growth, informs our people and increases employee engagement.

The main priorities following the research have been to implement regular communications from senior leaders across Mitie and a focus on communication for managers, giving them the tools to deliver key messages to their teams.

We held six employee roadshows, delivered by our senior Directors and attended by over 1,000 Mitie people across the country, representing sales and operations mostly. The roadshows will now happen annually as they were so well received and weve also introduced five regional forums every quarter to make sure those messages are cascaded to that all important middle management level. Were confident the forums will deliver great results in terms of networking, sharing best practice and cross selling ensuring our clients get the best Mitie service possible.

Challenge BoardOur recently set up Challenge Board provides the perfect platform to improve employee engagement within a small section of our population. By interacting with senior management at Mitie, including quarterly meetings with our Chief Executive, the members of the Challenge Board feel valued and challenged, which is a huge motivation.

1,000Mitie people attended our first set of business update roadshows. Were hoping to increase this number by at least 50% next year.

Overview People

PerformanceProgress on 2020 targetOver the years we have significantly increased the number of respondents to our Misay survey by extending it to site-based Mitie people as well as the easy to reach office-based population. Our score this year is 72%, which tells us our employees are 72% engaged. Best practice for this kind of survey is 84% which puts us in the top bracket, but not quite where we want to be.


Looking aheadThe results of the Misay survey have thrown up some areas we need to address over the next year. Our employees told us they are very clear about what is expected of them in their role but they sometimes lack the tools to do the job well.

We currently have two employee information platforms, one intranet, accessible via a Mitie networked machine online and Milife, an extranet accessible by all Mitie employees, on any device. Our objective in the next three years is to merge both platforms to ensure all Mitie employees, regardless of where they work, have the same tools available to them.

When we surveyed our people in March 2014, 71% had registered to Milife and 89% of respondents felt the portal met their information needs adequately. However, only 28% said they accessed the site more than once per week. This is why we will concentrate on making sure Milife has the right content for our people.

We will implement a number of projects coming out of the findings from Project Engage, making sure the communications we send to our people are relevant and interesting to them. We have already started a monthly email update to all Mitie email users directly from our CEO and we are launching an internal quarterly newsletter in June 2014. We will also this year look at how we can target more effectively those people within Mitie who have the strongest influence on our workforce, managers.

People Engagement

MilifeMitie is a big and diverse place, and we want to make sure our people are always able to get the information they need to deliver a world-class service. This is why we developed Milife, an employee extranet accessible to all 70,000+ employees. The site is secure and accessible from anywhere on any device, and our employees can access news, views and forms they need to do their job as well as book annual leave, access their payslips, Company discount site and the learning zone.

72%Employee engagement score


People Health and safety

What weve focused onThe health and safety of our people is our absolute priority, making sure they can work in a secure environment and go home safe at the end of the day is paramount.

Over the last 12 months, we have implemented a web-based audit management tool to support the planning and delivery of our health and safety audits and the analysis and interpretation of the outputs.

This tool provides a highly effective indicator of our health and safety performance and highlights those areas that need attention. A summary report of the performance is discussed at every business board meetings.

Our senior team of QHSE professionals meet on a regular basis to share lessons learned from incidents, review current performance improvement programmes and agree on a health and safety strategy which is then implemented across the business.

In May 2013, we launched the fourth phase of our Work Safe Home Safe! (WSHS!) employee engagement programme affectionately named Workplace Wobbles. This four episode highly-engaging mini-soap features our very own budding Mitie actors and brings to life the key behaviours of the WSHS! programme: get involved, look out for others and think safety.

Health and wellbeingAnd because health isnt just about safety, we also look after our peoples wellbeing.

Within our catering business, Gather & Gather, qualified Nutritionist Kate Taylor, works with clients, and Mitie people, to run regular health and wellbeing days in our staff restaurants. In an effort to develop and implement various programmes throughout Mitie, Kate has been speaking at the Women of Work events and hosting group workshops discussing How much do you really know about food. Similar workshops have been held on client specific requests, including seminar topics such as healthy snacking, dieting and mental health.

This year, we were the main sponsors of the Mitie London Revolution cycle ride, see case study opposite.

Mitie London RevolutionSpread across two days, the Mitie London Revolution saw cyclists complete an incredible and iconic route around London, passing some of the citys most legendary landmarks. Over 200 Mitie riders took part, including our very own Katie and Jess. This company-wide event has bolstered a pre-existing sense of community amongst our people and facilitated greater interaction across the businesses. In particular, our Facebook rider hub has played a critical role in this, providing an informal platform for riders to share their photos, personal stories and thoughts on the big event.

91%Confidence91% of our employees say they feel confident stopping a task if they dont feel it is safe.

Watch Katies video here.

Watch Jesss video here.

Overview People

PerformanceProgress on 2020 target Our Work Safe Home Safe employee engagement campaign continues to be successful in raising awareness of safety at work. In our last sustainability survey 94% of employees said they were aware of the programme, which is an increase of 2% on last year.

Were really proud of our health and safety culture and were delighted to see continued reductions in our major injury rate, reportable incident rate and a considerable reduction in our incident severity rate.


People Health and safety

Looking aheadWe will continue to work hard to reduce accidents and incidents, both through better management of the information and a focus on employee engagement through our Work Safe Home Safe! programme.

We will further develop our health and safety risk management leadership workshop to roll it out to senior managers across our business. This will help us embed our health and safety culture at all levels of the business.

We are already working on the next stage of our employee engagement programme, Work Safe Home Safe!, refocusing our attention on the going home safely core message. Were keen that all our people take home the important safety messages and lessons from their working environment. We are also planning to recognise employee excellence in performance via our annual Work Safe Home Safe! awards ceremony.

Work Safe Home Safe!We focus on building awareness and respect for health and safety, so that Mitie people arent just passionate about work, theyre passionate about working safely.

In the last 12 months we have enhanced our Work Safe Home Safe employee engagement programme thanks to a mini series of four Workplace Wobbles soap opera style films backed up by posters, manager guides and briefing notes.

10%Reduction in our major injury rate

17%Reduction in reportable incident (RIDDOR) rate

28%Reduction in incident severity rate

94%Of our surveyed employees are aware of our Work Safe Home Safe! engagement programme (+2% on last year)

64%Of our employees say the WSHS! campaign has encouraged them to change their behaviour

91%Of our employees say they feel confident stopping a task if they dont feel it is safe

CommunitiesOverviewOverview19Mitie Group plc Sustainability Report 2014 Clients People Environment Suppliers Appendices

CommunitiesWere really proud of the work we do to strengthen the communities we work in. Reaching out to our local communities, especially in partnership with clients and suppliers, enables us to optimise our contributions and expand our community footprint.

CommunitiesOverviewOverview

Mitie volunteer of the year awardEmployee volunteering is an important part of life at Mitie, demonstrating our commitment to the communities we work in and providing great opportunities for our people to develop and demonstrate their skills. Craig Boath, a Director in our Property Management business, won the 2013 Mitie Project of the Year Award for the most significant community impact. Craig co-ordinated Mities efforts to take part in the BBCs Children in Need DIY SOS project fronted by TV personality Nick Knowles. With a staggering 186 volunteering days behind it and a community investment value of nearly 31,000, it is no surprise that this worthy project lays claim to the Project of the Year Award.

20Mitie Group plc Sustainability Report 2014 Clients People Environment Suppliers Appendices

What weve focused onThe Mitie FoundationThe Mitie Foundation has produced encouraging results in its first year; creating opportunities for people of all backgrounds to join the world of work, by raising aspirations and unlocking peoples true potential. A key project this year has been to ensure all our stakeholders are aware of the aspirations and targets of the charity. With this in mind, the Foundation appointed 30+ ambassadors and ran workshops with a number of our integrated facilities management clients, alongside running a series of world of work challenge days and other careers events at more than 100 schools.

The Real Apprentice programme has continued to go from strength to strength. Under its new name, Ready2Work, a record number of programmes have been completed this year. These programmes have seen 51 people complete the course, of which 33 have been offered a job or an apprenticeship, or have gone back to further education. To complement the Ready2Work programme, the Mitie Foundation has also launched a more agile work experience programme which provides further opportunities for unemployed and particularly young people, to obtain the work experience so often missing from their CVs. This programme, whilst still in its infancy, has already helped five individuals secure full-time employment.

Community engagement in social housingNaturally, our social housing team, in partnership with our clients, is heavily involved in the local communities where they work, adding value not just through the improvements they make to peoples homes, but more importantly through the community engagement activities they organise. As well as taking part in career talks in schools and offering work experience opportunities for young talent in the area; Mitie resident liaison officers have been volunteering their time to run computer clubs to help improve residents confidence online, help them access all important training and learn how to log issues and feedback on the local authority websites. Weve also run a number of fun sessions with residents, including karaoke and Nintendo Wii competitions to bring together residents who might otherwise see no one throughout the course of the day.

Communities

The Ready2Work programme is an excellent opportunity to provide placements that have a real impact on the candidates. The Mitie Foundation make it very easy for businesses to get involved in the programme plus we get an additional resource at no cost to the business, so for us it was a no-brainer in terms of our initial decision to take part. For our own staff, the programme provides a good skills-development opportunity in terms of acting as mentors and coaches to the candidates, conducting appraisals and delegating and supervising tasks, as well as feeling that they really are helping to make a difference.

Alison Klarfeld Head of CR, Berwin Leighton Paisner LLP

CommunitiesOverviewOverview

Mitie Foundation awardsWe recently celebrated the first anniversary of the Mitie Foundation at an event attended by Esther McVey MP, Minister for Employment, and Ruby McGregor-Smith. The event celebrated the great work that The Foundation has done within the community over the past 12 months and saw the presentation of awards to several business partners who made a significant contribution to developing the Mitie Foundations programmes.

21Mitie Group plc Sustainability Report 2014 Clients People Environment Suppliers Appendices

PerformanceProgress on 2020 targetOur community investment for the year 2013/14 represents 0.7% of our pre-tax profit which is fantastic news and we are looking to build on this progress next year.

The overall community investment for 2013/14 is up 14% to 834,240. This is mainly due to a 187% increase in donations to charities and a 162% increase in gifts in kind donations. This year our donations to charities include donations made to the Mitie Foundation, including the salaries and expenses of three full-time employees as well as costs associated with running our award-winning Real Apprentice programme, renamed Ready2Work, and other Mitie Foundation initiatives. Our gifts in kind include all the materials we donate to our seven skills centres across the country.

Communities

Looking aheadThe Mitie Foundations approach is to work in partnership with like-minded organisations as well as harness Mities workforce, to add value and make a sustainable difference in our local communities. Whilst we will continue to raise awareness of The Foundations work around employability and young people, we have set ourselves clear targets for 2014/15:

Inspiring young peopleWe will work with schools and further education colleges around the country to run 50 World of Work events and 20 Dragons Den events with partner Working Knowledge.

Enhancing employabilityWorking specifically on client sites, we aim to offer 70 people work placements through our Ready2Work (55 people) and Foundation work experience (15 people) programmes.

Sustainability Summary 2013/14 2012/13 % difference

Donations to charities, community projects etc. 441,322 153,573 187

Value of employee time volunteered 309,617 259,590 19

Value of gifts in-kind donations 13,672 5,220 162

Value of expenses and leveraged funds 41,949 180,509 -77

Community Affairs management costs 27,680 129,881 -79

Total Community Investment 834,240 728,773 14

Employee volunteering days 1,443 1,286 12

0.7%Community investment represents 0.7% of our pre-tax profit

+14%Community investment

51Ready2Work participants

1,443Volunteering days

EnvironmentOverviewOverview22Mitie Group plc Sustainability Report 2014 Clients People Communities Suppliers Appendices

Environment All human activity has an impact on the planet, and that includes our own business. We believe we have a responsibility to do everything we can to minimise that impact, and reduce our carbon footprint, and we are committed to doing that.


What weve focused onEnergyOur total energy consumption in 2013/14 was very similar to our 2009/10 base year. This is an increase since last year, predominantly because of a net increase in the size of our estate with the acquisition of MiHomecare. If we exclude MiHomecare, our consumption is 12% lower than in our base year.

Also, our energy intensity, in terms of total kWh per m revenue is 19% lower than in our base year, and 22% lower in terms of total kWh per employee.

Weve achieved this reduction through a mix of effective estate management including consolidations, building disposals and acquisitions and improved behaviours supported by internal communications campaigns and participation in Earth Hour and Climate Week events. We have recently embarked on an energy audit of our buildings, making sure all our properties are Band D Energy efficiency rating or higher. We are currently refreshing Energy Performance Certificates on all properties, and looking to dispose of those below D rating.

TransportAs in previous years, our total vehicle fuel consumption dominates our carbon emissions, representing 89% of total Scope 1 and 2 annual CO2e emissions. Despite business growth, which requires us to grow the size of our fleet, our average fuel consumption per litre as a measure against revenue has shown a decrease of more than 6%. In simple terms we use 6% less fuel to generate each GBP turnover.

This has been helped in no small part by our fleet procurement policies, installation of telematic tracker systems across 90% of our commercial fleet and bringing our average passenger vehicle emissions to an all-time low of 116g CO2/km against an industry average of 143 CO2/km. The notable increase in expensed fuel consumption since last year is due to the addition of MiHomecare, though this has had a fairly negligible impact on total company-wide consumption.

Further initiatives which have positively impacted on sustainability targets include: the roll-out of electric vans to viable locations; the upgrade of our tracking technology to help improve driver behaviour by notifying them of fuel reduction opportunities (this has shown a 6% fuel reduction in one of our divisions where we are testing the technology) and a push on driver awareness training on our driving simulator, over 400 people completed the training.

WaterDespite an increase in water consumption during the year, it is worth noting that our average water consumption is just over 0.49m3 per average employee number per year, this is still 5% lower than in the base year.

WasteOur waste management continues to be a challenge because of the large number of waste management contractors and our high proportion of landlord serviced properties. Our total waste volumes have increased, driven by a net growth in estate size.

Our recycling rates remain fairly consistent with last year; though we accept that there is a considerable level of uncertainty in our waste volumes and recycling rates. This is because of a higher proportion of sites, where we have to estimate waste and recycling volumes, than last year; with the addition of the MiHomecare business and a reduction in the availability of waste management data across our estate.

Unfortunately, we were unable to decrease the amount of estimated data, and this figure has actually increased this year. This is because:

a) The combined property and waste management programme we were hoping to implement across our office portfolio last year has not yet been put into effect, and

b) Our Green Stars network (Mitie people responsible for monitoring waste in each of our offices) has not been as effective as previous years, with only half of our Green Stars providing readings and waste numbers.

Environment


PerformanceOur base year is 2009/10. Targets for energy, waste and transport fuel were set for three years, ie 2010-13, and we reported the successful completion of those targets last year.

Our target is now to reduce our Scope 1 and 2 carbon footprint by 35% by 2020, compared to 2010 baseline, measured as tonnes of CO2e/m revenue.

Progress on 2020 targetSo far we have achieved a 22% carbon footprint reduction which means were on track to achieve 35% by 2020.

Environment

Looking ahead Fuel remains our main challenge as it represents 89% of our carbon emissions, and whilst technology has helped us to get where we are now, and we will continuously look at how new vehicles can reduce our impact; we know the next real improvement will come from better driving behaviours across the business. This is why we will concentrate on fuel efficient driver training both on the learning zone and on our driving simulator; and why we will carry out regular surveys across our driving population, determining if attitudes are changing towards greener ways of driving on business.

In 2014/ 2015, our property team will ensure a holistic waste solution is implemented, via our internal waste specialist team and will ensure that Automatic Meter Readers are installed to our principal properties to decrease our reliance on the Green Stars network.

kk Historic CO2e figures have been restated using the latest (2013) emissions factors and methodology.kk The major change is that emissions from

electricity consumed through Mitie-managed supplies are now split between Scope 2 and 3, as per the Defra 2013 guidance.

kk Our employee figures include UK and Ireland based people, but not international employees because we have not accounted for the emissions from these small operations.kk Historic CO2e figures have been restated

using the latest (2013) emissions factors and methodology.

kk The major change is that emissions from electricity consumed through Mitie-managed supplies are now split between Scope 2 and 3, as per the Defra 2013 guidance.

Turning pedestals into lockers at Essex County Council When Essex County Council decided to change their working environment to a more flexible arrangement, our challenge was to find a cost-effective and responsible way of dealing with hundreds of surplus pedestals, and the cost of procuring new lockers. Working with a re-engineering recycling factory in Liverpool, we managed to recycle 90% of the pedestals. By transforming the old pedestals into new, high-quality lockers we not only saved our client carbon, we also saved 40% on furniture costs.

Resource Units

2010 restatedbaseline* 2013 2014

% change against

baseline

Scope 1 Gas and fleet fuel Tonnes of CO2e 41,343 43,007 42,075 2Scope 2 Electricity Tonnes of CO2e 3,490 2,978 3,223 -8Scope 1 and 2 Intensity Tonnes of CO2e/employee 0.79 0.64 0.63 -21

Intensity Tonnes/m 26.07 21.68 20.39 -22Scope 3 Energy and

business car travelTonnes of CO2e

4,564 3,591 10,455* 129Upstream Water Tonnes of CO2e 10 11 12 22

Created waste Tonnes 1,436 1,204 1,536* 7Intensity Tonnes/employee 0.025 0.017 0.021 -16General waste Tonnes 989 607 793* -20Recycled waste Tonnes 447 597 743 66% Recycled 31 50 48* 56

* Variance to the prior year due to the integration of Enara (now MiHomecare)

90%Of our fleet is trackable

116g CO2/KmAverage vehicle emission

6%Reduction in fuel

22%Reduction in our carbon footprint

SuppliersOverviewOverview25Mitie Group plc Sustainability Report 2014 Clients People Communities Environment Appendices

SuppliersThese days, major companies like Mitie are expected to take some responsibility for what happens in their supply chain, and we think thats only right. We want all our suppliers to share our own high sustainability standards, and were doing what we can to help them improve their performance.


What weve focused onProcurement Sustainability Forum Our bi-annual procurement sustainability forum continues to help us focus on the key issues. With representation from procurement controllers across Mitie and our sustainability director, the main objective of the forum is to set out the supply chain strategy for the next 12 months, aligning Mities sustainability pillars with our procurement activity. The forum encourages our procurement teams to implement initiatives both at category level and for bespoke clients, via our sustainable development framework.

Supporting SME businesses We took part in and chaired a Corporation of London round table event aimed at encouraging and helping SMEs to access work within the City of London. The round table event focused on issues of supplying to large organisations and how to succeed and stand out amongst competitors.

The workshop provided attendees with the opportunity to share insight into their own experiences as well as understanding how a FTSE 250 company procures its supply chain partners. This was also an opportunity for Mitie to understand the needs of SME businesses and to communicate our approval processes.

EcodeskWe have continued our partnership with energy and emissions data tracking portal, Ecodesk; and invited an extra 250 suppliers to sign on. We now have 950 suppliers registered which helps us understand and improve performance.

Suppliers

Food and sustainability Mities catering offering, branded Gather & Gather, is all about producing good, fresh, healthy food sourced from across the British Isles and Ireland where possible and demonstrating the provenance and story of where the food comes from. A strong procurement model underpins this ethos, ensuring we align supply from mainstream national suppliers, with regional specialists supplying products such as fresh meat and poultry, dairy produce and bakery. Doug Gilchrist, Head of Procurement at Gather & Gather is clearly passionate about food provenance.

Watch a short video here .


PerformanceProgress on 2020 target We continue to work with all our suppliers, collaborating with them to embed our values and achieve sustainable improvements that benefits them and us, as well as our clients.

Last year, we worked with 88 suppliers to complete sustainability audits of their businesses and only one evaluation was deemed unsatisfactory.

We delivered three innovation forums and ten Meet the buyer events. Our plan this year was to hold a number of client/contract specific supplier forums instead of one large event for all our suppliers.

We have continued to work with emissions portal Ecodesk and now have 950+ suppliers registered and engaging with us to report their emissions data. However, during the reporting period, we realised that a large proportion of the supplier profiles were either incomplete or out of date and again we have worked with Ecodesk to put together a strategy to review the inputs. So far we have engaged with the top 279 suppliers registered and we are pleased to report that 239 have submitted complete and up-to-date emissions data. In the next months, we will be reviewing the process with Ecodesk to ensure we capture maximum levels of emissions details from all our key suppliers.

Suppliers

Looking aheadWe have achieved re-accreditation in the CIPS procurement review for our Technical Facilities Management business. We aspire to achieve Mitie-wide accreditation, however, due to the various system approaches and methods across the business, we are not ready yet. We continue to work with CiPS on a number of fronts, including Sustainable Procurement which we won last year.

As lead sponsors of the Facilities Show 2013 we suggested the creation of a Meet the buyer area for future shows. The feature has been added to the 2014 show, and our procurement teams will be available for short meetings and discussions with suppliers over the three day show.

With the implementation of our sustainable development framework, we will be organising client/contract specific supply chain events so that were not only monitoring and improving our sustainability performance, but also that of our clients, through the value chain. The first of these events, a supplier forum for one of our largest Integrated FM clients, is already planned for the summer of 2014.

Sky, Mitie and Bunzl working together to reduce food packaging wasteWe provide food and refreshments to over 24,000 Sky employees in the UK and Ireland, and were using more than one million styrofoam catering items a year. In partnership with catering products supplier Bunzl, we undertook a supply chain analysis for 23 different packaging lines, including cups, plates and boxes to identify better products. So far, almost 11 tonnes of styrofoam have been removed from the landfill waste stream every year. Recycling levels have increased and are now running at over 65%.

88Supplier sustainability audits completed

95 0Suppliers registered on Ecodesk

Read more here.

28Mitie Group plc Sustainability Report 2014 Overview Clients People Communities Environment Suppliers

Appendices

Appendices

1.1 Change in emission measurementMities emissions have been reported as CO2e to allow for all six GHGs and broken down into Scopes 1, 2 and 3 in accordance with the GHG protocol. This also provides ease of comparison with our annual CDP reporting.

1.1.1 Scope 1The gas CO2e figure for 2013/14 has been calculated using the latest gross CV basis factor and the 2009/10 to 2012/13 figures re-calculated using the updated factor for 2012.

The transport CO2e figure for 2013 has been calculated for petrol, diesel and LPG using the latest CO2e factor for 2013 and the 2009/10 to 2012/13 figures re-calculated using the updated factors for 2012.

1.1.2 Scope 2The electricity CO2e figures have been re-calculated using the electricity (generation) factors for the respective years, based on Defras 2013 release.

1.1.3 Scope 3The Scope 3 electricity CO2e figures (representing transmission and distribution losses for all sites, and all electricity emissions for sites where Mitie does not manage the electricity account) have been calculated using the conversion factors for their respective years, based on Defras 2013 release.

The water CO2e figure for all years has been calculated using the latest factor from Defras 2013 release. Emissions from leased buildings and non-fleet vehicles used for business purposes are calculated using the same emissions factors but reported in Scope 3 in accordance with The GHG Protocol Initiative for Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

1.2 Approach to measurementOur reporting approach follows the Defra guidance on how to measure and monitor your greenhouse gas emissions 2009. The guidance is based upon the GHG protocol for Scopes 1, 2 and 3. Defra/DECCs UK Government conversion factors for Company Reporting 2013 have been used.

Mities emissions are not covered under the EU ETS, a Climate Change Agreement nor the Carbon Reduction Commitment Energy Efficiency Scheme. (CRC)

1.3 Organisational boundaryIn the calculation of emissions, the financial control approach has been adopted under which a company accounts for 100% of the GHG emissions from operations over which it has financial control. It does not account for GHG emissions from operations in which it owns an interest but has no control, which would include investments. For Mitie, this means UK operations.

1.3.1 Scope 1 emissions comprise:Gas consumed in Mities owned and leased

administrative offices and stores through a Mitie managed energy contract.

Vehicle fuel consumed in Mities own fleet, as monitored through our contracted All Star fuel card system for both commercial and domestic vehicles. This includes a small element of fuel consumption for personal use, which inflates the reported emissions, but is consistent with previous years.

We have not included a figure for fugitive emissions from air conditioning systems; (refrigerant leakage). This is due to a lack of data on refrigerant top-ups. This is expected to be a very small proportion of our total emissions. We will investigate a method using our existing records to calculate a reasonable estimate during 2014/15.

1.3.2 Scope 2 emissions comprise:Electricity consumed at Mities owned and leased administrative offices and stores where purchased through a Mitie managed energy contract.

1.3.3 Scope 3 emissions comprise:Vehicle fuel consumption for business travel

in non-fleet vehicles (such as private cars), as recorded through expenses. This is outside the All Star fuel card system. This element has increased by a factor of 3 this year due to the inclusion of MiHomecare vehicle travel. It is recognised there is a small amount of fuel included in this category which are Scope 1 emissions. The remaining emissions in this category are assumed to be total fuel spend but in reality may be a mixture of HMRC levied expensed items and fully expensed items. This may in effect slightly understate the real position.

Electricity and gas not under a Mitie managed energy contract, ie through landlord serviced and invoiced arrangements.

Indirect emissions for Scopes 1 and 2 for electricity, gas and transport fuel.

Water consumption in m3 from Mities own administrative offices and stores (regardless of who manages the utility contract).

1.3.4 Other data under Scope 3 comprises: Created waste in tonnes = general waste + recycled waste (tonnes) from Mities own administrative offices and stores (excluding client-generated waste). Waste is not included within the reported emissions.

1.4 Green TariffsMitie purchases its electricity from Climate Change Levy exempt sources. This includes electricity sourced by our suppliers from a range of renewable sources and high- efficiency combined heat and power generators. This represents 100% of our own total electricity procurement (ie excluding the sites where the landlord manages the supply), an increase from 96% in 2012/13.

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CommunitiesCommunities

EnvironmentEnvironment

SuppliersSuppliers

Appendices

Inspiring change...Mitie Group plc Sustainability Report 2014

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