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Sustainable construction

Sustainable development is defined in various ways, but essentially it is about ensuring that progress does not damage the opportunities of future generations.

Sustainable construction is the sum of the many processes through which a profitable and competitive industry delivers built assets to enhance quality of life and stakeholder satisfaction within this principle.

In 2002, we explored the key role that the construction industry has to play in the quest for a sustainable future. The industry has an opportunity to transform the way that infrastructure is created, by rethinking the way it designs and uses resources to create and maintain assets that meet the needs of society.

Key concepts are partnership and innovation. By engaging with customers, end-users and local communities, a shared understanding of the needs and impacts of schemes can be created, alongside a view of what is technically possible and affordable.

Translating this into reality means designers, contractors and suppliers working together to embrace new ideas and technology and to generate innovative solutions.

Our aims

One phrase summarises our basic approach - doing business with integrity. This means that we aim to:

• create shareholder value through meeting clients' expectations;
• ensure the safety and health of our workforce and others;
• engage with communities and those affected by our activities; and
• protect the environment.

Our normal activities already incorporate many aspects of good practice and contribute to sustainable development. But building on this and integrating it into all our activities will be critical to our future success. In order to attract high calibre employees, win prestigious and demanding contracts, thrive financially, and maintain the confidence and support of our shareholders and non-executive Directors, we need to embrace the sustainable development agenda fully.

Our progress

In order to attract high calibre employees, win prestigious and demanding contracts, thrive financially, and maintain the confidence and support of our shareholders and non-executive Directors, we need to embrace fully the sustainable development agenda.

In 2003 we aimed to spread the understanding of sustainable construction into our business:

• We cascaded our briefing on sustainable development into our operating companies
• Balfour Beatty Capital completed a wide-ranging and ground-breaking review of the implications of sustainable development for our PFI business, whose concession contracts are typically 25-30
• We sponsored an MSc student to examine sustainable construction, and the results were published by the Institution of Civil Engineers
• We continued to support our young engineers participating in the second phase of 'Engineers for the 21st Century Inquiry' led by Forum for the Future.

In 2004 we continued to share and promote sustainable development throughout the Group:

• Balfour Beatty Capital built on their 2003 review into sustainable development in PFI, and took the lead in compiling, with other operating companies, a register of our capability and track record in sustainable development - to build capacity and share good practice
• We contributed to the Green Alliance's review of sustainability in government procurement, especially in PFI projects
• One of our young engineers trialled a web-based network for our young professionals, to share ideas on sustainable construction
• We piloted an internal market in construction materials - the Materials Exchange.

During 2005 and 2006 we continued to embed sustainable development into our activities and supply chain:

• We continued to support the third phase of Forum for the Future's 'Engineers for the 21st Century' project, by sponsoring two young engineers. This work is ongoing into 2007
• Balfour Beatty Capital worked on a system to measure its progress and effectiveness against the Government's top 20 sustainable development indicators.
• Additionally it established a regular forum with other UK operating companies, to promote sustainable technologies in our PFI projects. See case study: Sustainable Technologies
• We have developed sustainability principles and standard design specifications for our schools PFI / Building Schools for the Future projects. We continue to review progress and share ideas at our regular Task Group.
• Many projects now actively develop a live Sustainability Plan - for example, at the Birmingham New Hospitals joint venture, the Sustainability Plan is regularly reviewed by local stakeholders. Balfour Beatty Infrastructure Services has Biodiversity Action Plans to ensure that the natural environment is considered while undertaking highways maintenance.
• Our operating companies are now engaging with Sustainable Development more strategically. Balfour Beatty Construction developed a Sustainability Strategy at a Board workshop in December 2006, and is now actively embedding this into its projects. Balfour Kilpatrick is focusing on Corporate Responsibility as its overarching theme, embracing Sustainability - and of course Health, Safety and Environment.

We continue to make progress in spreading the understanding of sustainability across our business, and embedding sustainable technologies and solutions into our projects, so making many numerous positive contributions to a more sustainable future.

During 2007 we will continue to encourage greater understanding and awareness of sustainable construction among our workforce, our customers and suppliers, and this will be the foundation for further progress in future years.

A number of Balfour Beatty companies working on the UK Government's PFI schemes in education are now embracing these opportunities. We are responsible not only for constructing buildings, but also for managing and maintaining them long term, usually 25 to 30 years.

To maximise these opportunities and ensure that sustainable practices are considered, a Balfour Beatty team was set up in 2005 to develop areas of best practice across the business, and to establish working methods to deliver sustainable buildings and environments for PFI projects.

A number of key areas have been identified. These include the following:

• sustainable drainage;
• solar photovoltaic cells;
• solar thermal panels;
• wind turbines;
• ground source heating;
• or a combination of the above technologies.

Incorporation of these technologies into schools reduces energy bills and carbon dioxide emissions and provides a valuable educational tool for the school curriculum.

Transform Schools in Stoke is now in the initial phase of design to incorporate renewable systems at Joiners Square school. The scheme includes a rainwater collection system, a wind turbine, solar photovoltaic and solar thermal systems. Bespoke software is being designed, in conjunction with the head teacher and Stoke City Council, to enable all of these systems to be linked into an educational electronic display unit. Construction of the building has already commenced with the renewable systems scheduled to be installed later in the year.

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