Corporate Responsibility Report 2008 - Mitie

Corporate ResponsibilityReport 2008people +passion

02 Chief Executive’s introduction04 CR highlights06 MITIE at a glance08 Responsibility and accountability10 MITIE’s CR model11 CR Champion’s Forum11 British Quality Foundation – ‘Committedto Excellence’12 CR Index14 Health and safety16 2007/08 measurements17 2008/09 objectives and targets18 A safe pair of hands22 Workplace24 2007/08 measurements25 2008/09 objectives and targets26 Skills and opportunity32 Marketplace34 2007/08 measurements35 2008/09 objectives and targets36 Doing unto others…38 Engaging with our clients40 Environment42 2007/08 measurements43 2008/09 objectives and targets44 Less is more50 Community52 2007/08 measurements53 2008/09 objectives and targets54 Sharing our skills56 GRI indicators57 Contact uscontents

A passionRuby McGregor-Smith,Chief ExecutivePassionate about peopleand having fun.2 MITIE CR Report 2008

“Corporate responsibility (CR) is the foundation of the waywe work at MITIE. It is evident in our strategy, in the hubof our operations and is an essential part of our culture.With 20 years of sustained growth, our success has comefrom a responsible business model that has responded tothe ever changing requirements of an increasingly widegroup of stakeholders. CR is part of our business strategyand forms the basis of our values: people + passion.Every year we set challenging targets to drive our businessforward. Our ambitions in CR are no different. We havethe same passionate commitment to protecting ourpeople, enhancing our workplaces, our communities,our marketplaces and safeguarding the environmentsin which we all work.”Ruby McGregor-SmithChief Executivefor CRMITIE CR Report 2008 3

CR highlights500Over 500 students arecurrently studying onnationally recognisedvocational coursesin construction at theMITIE Skills Centres49,000+passionate peopleWe’re proud to meet theglobally recognised CRcriteria in the FTSE4GoodIndex Series.reduction inmajor injuries23%1Partners inSustainabilityAward 2007Revenue£1,407.2mProfit before tax£67.9m4 MITIE CR Report 2008

100We received a BiTCTop 100 CompaniesThat Count CR IndexSilver Award321apprentices employed across ourfacilities, engineering and propertyservices divisionsBig Tickreaccreditationsfor our Skills Centresand Real ApprenticeScheme42%of our peopleare female64,000We’ve reduced approximately64,000 food miles of deliveriesto our sitesMITIE CR Report 2008 5

MITIE ata glanceWe are one of the UK’s leading support services companiesdelivering a range of integrated services to support the buildingsand infrastructure of our clients. We are a people business, madeup of over 49,000 talented and driven people, all working to supportour three divisions: facilities, property and engineering services.We are a UK based, FTSE 250 company that has a track recordof growing revenue, profit and earnings per share.We have a clear strategy and vision, supported by a setof core values.StrategyTo deliver stakeholder valuethrough a focus on sustainable,profitable growth.VisionTo be a company ofworld-class people deliveringworld-class services.Values• People – MITIE is a people business.It’s our 49,505 people, and theirdrive to always do their jobs to thevery best of their ability that makeus different.• Passion – People + passion. That’swhat MITIE’s all about. Take ourpeople, add their passion andyou get something really special.• Fresh thinking – Our people arealways having ideas. Every day,the teams at MITIE come up withoriginal thoughts, from the brilliantto the sublime. It’s our ability toinnovate that helps us improveand develop services, enternew markets and keep ourclients happy.• Exciting futures – We want to makesure that all MITIE people want todo their jobs better than anyoneelse in the world. Motivating ourpeople is part of our daily routine:providing inspiration from skilldevelopment, career progressionand recognition of a job well done.6 MITIE CR Report 2008

Key facts£1,407.2mRevenue49,505People£4.4bnOrder bookUK basedStrong balancesheetSectorsGovernment 17%Finance and professional 13%Manufacturing and logistics 11%Retail 11%Education 9%Property management 8%Social housing 7%Science and technology 6%Construction 5%Healthcare 4%Utilities 4%Leisure and entertainment 3%Transport 2%3contracttypes3serviceareasSingle serviceA client outsources one serviceto MITIE.Multi-serviceA client outsources more thanone service to MITIE.FacilitiesServicesIntegrated facilities managementand a range of servicesincluding: asset management,energy consultancy, documentmanagement, front of house,catering, cleaning, engineeringmaintenance, landscaping,pest control, security, waste andenvironmental management.FacilitiesmanagementA complete facilities managementsolution, tailor made for each andevery client.PropertyServicesRoofing, repairs and redecoration,interior fit-out, plumbing and heating,social housing maintenance andrefurbishment and fire protection.EngineeringServicesMechanical and electrical, energygeneration and management,technology and infrastructure.MITIE CR Report 2008 7

Responsibilityand accountabilitySuzanne Baxter,Group FinanceDirectorPassionate aboutequal opportunitiesand hot air balloons.8 MITIE CR Report 2008

As MITIE’s Chief Executive, it’s Ruby McGregor-Smith who has ultimateresponsibility for CR within the company. Ruby is supported in this roleby an Executive Committee of main Board Directors, which includesour Group Finance Director, Suzanne Baxter.“At MITIE, we are committed to the operation of a responsiblebusiness model and to the delivery of our CR strategy. Forus, it makes sound business sense. Our CR programme hashelped us to develop a new dialogue with a range of existingand potential stakeholders, from employees to clients andinvestors. We have consciously structured our programmewith an underpinning emphasis on the development of skillsand the environment. As an employer of over 49,000 peoplethat work in the built environment, these two areas areparticularly important to us, and have helped to shapeour activities and business model to meet the demandsof our markets and our stakeholders.With these areas of focus in mind, in the last year wesupported 218 of our people to gain new Institute ofLeadership Management qualifications, committed to theUK government’s Skills Pledge and opened a new nationaltraining centre; we’re offering our clients an increasing rangeof sustainable technologies to power their buildings, efficientrecycling and waste management consultancy to supporttheir operations and Fairtrade products in their canteens;we’ve reduced our food miles and increased our recycling;and we’ve just opened another MITIE Skills Centre, promotingvocational construction craft training in UK secondary schools.That said, being a responsible business is not just talkingabout what we’ve done in the past, it’s about what wedo today, and every day beyond that. That is what thisreport is all about.”Suzanne BaxterGroup Finance DirectorStephen Howard,Chief Executive, BiTC“MITIE has been an invaluablesupporter of Business in theCommunity for the last fewyears. We were delighted thatMITIE were recognised in ourAwards for Excellence 2007with two prestigious Big Ticks fortheir community programmes,and also, for the second yearrunning are featured as oneof the Top 100 Companiesthat Count for companies whocompleted the CR Index. Theyeven came into our offices tohelp us with an energy audit andstaff environmental awarenesssession this year. We look forwardto many more years of workingtogether and MITIE showing theirleadership in CR.”“Delivery of ourCR strategymakes soundbusiness sense.”MITIE CR Report 2008 9

InvestorsClientsMITIE’s CR modelThe model shows how MITIE’s CRstrategy is implemented usingthe five pillars of health andsafety, workplace, marketplace,environment and community. We’recommitted to taking a sensibleand structured approach tomanaging CR at MITIE. This allows usto focus on the social, ethical andenvironmental factors, opportunitiesand risks that affect our business,and to ensure they are efficientlymanaged. We work together withour stakeholders, at every levelof our business operations, toachieve the goals we set at thestart of the year.ShareholdersHealth and safetyOUR STAKEHOLDERSOUR CR PILLARSOur valuesPeople + passionCR Operations and GovernanceEmployeesWorkplaceMITIE PeopleCR ChampionsSocietyCommunityFresh thinkingCR SpecialistsExecutiveCommitteeMainBoardExciting futuresMarketplaceSuppliersEnvironmentActing res10 MITIE CR Report 2008

Corporate strategy100%97%99%100%97%99%100%97%93%100%95%97%100%97%98%100%95%97%100%94%94%Corporatevalues(Q1)CRprinciples(Q2)Leadership(Q3a)Boardreporting(Q3b)Advocacy(Q4)Riskmanagement(Q5)Policies(Q6)MITIESupport Services SectorAll Sector IndexSource: BiTC 2008 CR Index Feedback Report.100%We achieved full marks inall of the seven areas in thecorporate strategy sectionof the CR Index.This section of the CR Index considers the level to whicha company places CR values at the core of its businessstrategy. Companies must show that they have thesystems in place to identify key social and environmentalrisks and opportunities, and whether they are addressedby principles, policies, leadership and commitment atthe highest level.As CR is core to our business strategy and day-to-dayoperations, we achieved full marks in every one of theseven areas in this section of the CR Index. Furthermore,we outperformed our support services peers and otherCR Index participants. We’ll ensure that procedurescontinue to be in place to maintain our exemplary levelof performance.Integration45%67%67%65%60%63%100%81%90%100%100%98%90%88%78%81%76%83%100%93%94%100%92%95%75%86%94%81%80%78%Integrationof CRprinciples(Q7)Businessconduct(Q8)Performancemanagment(Q9)Remunerationand bonussystems(Q10)Strategicdecisionmaking(Q11)Traininganddevelopment(Q12)Training ofseniormanagers(Q13)Stakeholderengagement(Q14)Publicreporting(Q15a)Scope ofpublicreporting(Q15b)MITIESupport Services SectorAll Sector IndexSource: BiTC 2008 CR Index Feedback Report.Although we managed to equal or out-perform oursector peers and other participants in five out of tenareas (scoring the maximum 100% marks in four ofthese areas). We recognise that we must improve theimplementation of our CR strategy in the following areaswithin the integration measurement section of the CRIndex: performance management (Q9), remunerationand bonus systems (Q10), strategic decision making(Q11), stakeholder engagement (Q14) and scopeof public reporting (Q15b).MITIE CR Report 2008 13

Creating asafe havenJones Lang LaSalle’s Londonoffice refurbished by MITIE’s interiorfit-out business, winner of this year’sChief Executive’s Quality Award forexcellence in health and safety.14 MITIE CR Report 2008

Health and safetyMITIE CR Report 2008 15

Health and safety2007/08 measurementsHealth and safety is a major priority in MITIE. It’s the first item on the agenda at our Boardmeetings and our safety record forms a key performance indicator. We strive for continualimprovement in the area of health and safety performance and support this objective witha strong team of health and safety and quality assurance experts, a comprehensive trainingprogramme and the use of focused risk management and assessment processes.Health and safety targets 2007/08All the businesses within the Group demonstratecontinual improvement in their safety performanceby identifying safety management failings andsetting and achieving Group and business objectivesfor improvement.How we performedThe Group-wide certification programme to OHSAS 18001continues, with three more of our businesses becomingcertified during the year. A reduction in minor, major andthree-day incident rates reflects the focus on health andsafety risk management across MITIE.LevelAll accidents are reported within 48 hours and allemployees are made aware of the requirementto report accidents within this timeframe.All incidents are investigated appropriate to thenature and severity of the incident within five daysof their occurrence.All serious accidents are reported through theemergency line within one hour of their occurrence.We will increase the provision of health and safetyrelated training courses.We will reduce injuries and incidents due to manualhandling, slips and trips.We will encourage safe and fuel efficient driving skillsby providing approved Safe and Fuel Efficient Driving(SAFED) courses.We will expand our post-injury, early rehabilitationprogramme.We will instigate an employee wellness programmefrom April 2007.We will continue our support for Drug AlcoholTraining Services.Reportable incident ratesMajor injury incident rate(per 1,000 employees)During 2007/08, the majority of our incidents were reportedwithin 48 hours. We will be working hard on improving thisduring 2008/09.All major incidents were investigated within five dayscomplying with our policy.All serious incidents were reported through the emergencyline throughout the year. We will be working to improve theresponse times in 2008/09.Increased levels of health and safety training continueto be provided to all of our employees across the UK.In 2007, we commenced a specific health and safetytraining course for Directors in the business which willcontinue in 2008/09.Specific improvement programmes have beendeveloped across MITIE, resulting in over 20% reductionsin both these categories.We’ve commenced the SAFED training course and alsorequire our drivers to undertake vehicle safety checks.Our rehabilitation programme continues to be used,providing effective support to allow our people to returnto work.We have developed our existing clinic system toincorporate health awareness days that have beenwell received and well attended. Further developmentof this programme will take place in 2008/09.We continued our support for Drug AlcoholTraining Services.Total reportable incident rate(per 1,000 employees)AchievedOngoingNot achieved2005/062006/072007/081.292005/062006/072007/086.10.905.10.694.016 MITIE CR Report 2008

2008/09Objectives and targetsObjective:To demonstrate continual improvementin health and safety performance.Our top four targets:1. We will ensure businesses acquired duringthe previous reporting period implementa health and safety managementprogramme and achieve certificationto the requirements of OHSAS 18001;2. We will develop and roll-out a seniormanagement health and safety trainingprogramme to 60 senior managers byApril 2009;3. Every business will implement a healthand safety improvement plan; and4. We will implement a targeted risk assessmentand driver training programme to reduceroad traffic accidents by April 2009.MITIE CR Report 2008 17

A safe pairof handsThe health and safety of our people is of principal importancefor us at MITIE. We set high standards and we expect everyoneto play their part in maintaining them. MITIE has a team of over60 dedicated health and safety professionals working in our business,engaged in formal programmes to improve our health and safetyperformance across our business on an ongoing basis.We have been extremely pleasedto see a reduction in the ratesof accidents across MITIE, butrecognise there is always roomfor improvement. That’s whywe’ve enhanced the leadershipof health and safety within MITIEduring the year, and are continuingto extend our company-widecertification programme to thetwo internationally recognisedstandards for health and safetyand environmental management(OHSAS 18001 and ISO 14001). Threefurther MITIE businesses achievedcertification during the year, with94% of the company’s activitiesnow meeting these two standards.Chief Executive’s Quality AwardDuring the year, the Chief Executive’sQuality Award (CEQA) focused onexcellence in health and safety.Each business began by undertakingtheir own employee survey toexplore how their people perceivedhealth and safety managementin their own workplace. Thesesurveys confirmed that we’re doingmany things well and highlighteda number of good opportunitiesto make improvements. Eachbusiness then developed formalimprovement plans building on thesenew ideas, including improvementsin risk assessment methods, internalreporting procedures, theidentification of health and safetytraining needs, and improved riskmanagement communication.The overall winner of the CEQA wasMITIE’s interior fit-out business, for theirformalised approach in improvingWe’ve achieved a lot in2007/08, but the next yearwill see us raising the bareven further as we focuson four key areas:• Senior managementleadership – there will bea new training programmefor senior managementto increase awareness ofhealth and safety issuesand provide them withenhanced tools;• Business managementsystem (BMS) – we’ll beundertaking a review ofour established BMS, toensure it is suitable forour changing workingenvironments, providingus with a sound frameworkfor managing risk;• Health and safetyperformanceimprovement programme– we’re developing asystematic improvementplan for our wholebusiness; and• Operational risk control– we’re improving ourinternal assuranceprogramme with anindependent third partyspecialist auditor.health and safety performance,including revised programmesto address specific risks, a focuson enhanced line managementownership of health and safety,and improved communicationthroughout the organisation. Awardsfor the national and regional winnerswill be presented at the AGM inJuly 2008.As a company of world-class peopledelivering world-class services, wehave an extensive range of trainingprogrammes available to all ourpeople, including over 25 health andsafety training courses. In 2007/08over 2,000 people successfullycompleted a wide range of healthand safety training within MITIE.Over the last year our training wasparticularly focused on addressingkey issues such as working at height,manual handling, and managingroad risk. All of this was undertakenin conjunction with giving our peoplea sound knowledge of the healthand safety basics.The results of our efforts are thereto see. In addition to the positivefeedback we’ve had from ouremployee surveys, we achieved a23% reduction in major injuries duringthe year, with a 22% reduction in thereportable incident rate. Regrettablywe received four enforcementnotices during the year and wehave put in place remedial actionsto address the issues raised andlearn the lessons across the Group.18 MITIE CR Report 2008

of the company’s activitiesnow meet internationallyrecognised standards for healthand safety and environmentalmanagement (OHSAS 18001and ISO 14001).MITIE CR Report 2008 19

Health awareness daysIn 2007, a poll by the InternationalLabour Organisation named theUK as the country with the longestworking hours in the developedworld, and the spread of newtechnology such as wireless email isonly contributing to this. We want ourown people to have a good worklifebalance and one way we canhelp is with health awareness days.We’ve now held four of these daysat our offices across the UK, givingour people access to medicalinformation and advice at work.They can have a full check-up onsiteduring working hours, including bodymass index, cholesterol checks,diabetes and lung capacity testing.Our people can also discuss anyhealth issues or concerns theymay have with a doctor.This initiative has been a hugesuccess. Over 80% of attendeeshave acted on the advice theywere given, and the following istypical of the feedback we’vereceived: “I thought the day wasreally worthwhile and it was so niceto be able to sit down with a doctorand discuss health issues, as normallyone would only see a GP during anillness and not be given the time todiscuss other problems.”20 MITIE CR Report 2008

Safe and fuel efficient drivingFor many people at MITIE drivingis a major part of their work, whichmeans that both road safety andour vehicles’ environmental impactare key business issues for us. Overthe last year we’ve increased ourfocus on teleconferencing, carpooling and public transport asways to cut down our fleet’s carbonemissions and reduce the risks toour people from driving relatedincidents. Driving will always bea necessary part of our business,especially for our emergencyresponse vehicles. There is still agreat deal we can do to makeit as safe and efficient as possible.One way we’re doing this is throughthe government-backed Safe AndFuel Efficient Driving scheme, orSAFED. We have made a positivestart, with a number of our peoplealready attending this course, whichgives them tips on safer and moreenvironmentally friendly driving.MITIE CR Report 2008 21

Livingourvalues22 MITIE CR Report 2008

WorkplaceCindy Harding and Tara Greenhave just completed their carpentryand plumbing apprenticeshipsrespectively, after an Open CollegeNetwork course in Basic IntroductoryConstruction and Building Skills.MITIE CR Report 2008 23

Workplace2007/08 measurementsAs a people business, we treat every one of the 49,000+ people who work for us with respect.We’re passionate about helping our people reach their full potential, because the moresuccessful they are, the more successful we are. We ensure they have the skills, training andsupport they need to excel, as well as a fair, equal and responsible environment to work in.Workplace targets 2007/08How we performedLevelTo continue to strive to be recognised asan employer of choice.Our employees will be encouraged to develop totheir full potential with the provision of a comprehensiverange of Institute of Leadership and Management(ILM) courses provided by our six Centres of VocationalExcellence (COVE) college partners.We will develop and expand our ‘Skills for Life’programme, raising literacy and numeracy skillsin our workforce with BiTC/KPMG.CR awareness will feature as an integral part of the newemployee induction programme. Ten induction eventswill take place between April 2007 and March 2008.We will increase the level of diversity in the workplace.From April 2007 we will be publicly reporting on diversityissues including gender and ethnicity annually.Our strong growth and track record continues to providea great platform for employment, as does the reflectionof our CR credentials through inclusion in the Sunday TimesTop 100 Companies that Count list in 2007 and 2008. Wecontinue to offer our people entrance into our Save AsYou Earn Scheme (SAYE), as well as providing careerdevelopment, mentoring and Institute of Leadership andManagement (ILM) professional development courses.In addition, we attained the British Quality Foundation’s‘Committed to Excellence’ validation.In 2007 we appointed a new Training Manager todevelop our training strategy. It’s their role to ensure ourpeople are supported by the programmes, policies andprocedures we have in place to help them reach theirfull potential. ILM courses at six COVE venues are offeredto our people as well as support to attain highereducation and professional qualifications.Liaison with BiTC/KPMG was maintained and in 2007 MITIEsigned the UK government’s Skills Pledge. Our literacy andnumeracy courses for employees will commence in 2008.Information on our approach to CR forms part of ourinduction programme. Our CR Manager presented atevery induction throughout the year.MITIE appointed an Equality and Diversity Manager inAugust 2007. We undertook an external review of ourapproach to diversity during the year and will buildimprovements into our procedures and trainingas appropriate.Diversity related issues were first reported in our 2007CR Report and will continue to be reported annually.CR Index 2007 – workplace managementWe’re delighted with our performance in the workplace management sectionof the BiTC framework. We scored the maximum 100% and we equalled oroutperformed our sector peers and other sector participants in all four areas.We’ll endeavour to maintain this exemplary standard throughout 2008/09.AchievedOngoingNot achieved100%96%93%100%92%87%100%100%99%100%89%90%MITIESupport Services SectorObjectives(Q36)Targets(Q37)Employeeprogramme(Q38)Monitoring(Q39)All Sector IndexSource: BiTC 2008 CRIndex Feedback Report.24 MITIE CR Report 2008

2008/09Objectives and targetsObjective:To provide opportunities and the rightenvironment to enable our peopleto develop to their full potential.Our top four targets:1. We will expand our ‘Skills for Life’ initiativeand commit to delivering 8,700 NVQsover the next three years;2. We will demonstrate our commitment todiversity in the workplace by issuing anEquality and Diversity policy statement,quality proofing our existing policies andprocedures and raising awareness acrossour workforce by April 2009;3. In partnership with ‘Opportunity Now’ wewill undertake a benchmarking gendersurvey and put together an action planto address areas for improvement byApril 2009; and4. We will run two new ‘Real Apprentice’programmes, offering 68 trainingplacements with our clients during 2008.MITIE CR Report 2008 25

Skills andMITIE’s people come from all walks of life and have a diverse rangeof skills and qualifications, reflecting the communities in which wework. We’re committed to providing equal opportunities for all, andtake pride in our reputation for having the right people for the rightjob, and the right attitude to getting it done. Motivating our peopleis also key to growing our business, so we offer a number of rewardschemes to keep our people inspired, and focused on achievingtheir goals.772of our people attendedcourses at our new MITIETraining Centre.Equality and diversityWe’ve invested in the developmentof our approach to, andunderstanding of, diversity in ourbusiness. Our targeted investmenthelps us to continue to developbest practice in our managementprocedures, and gives our peoplethe tools that they need tomanage and participate inan ever changing workforce.External experts Equality Worksare working with us to review andrevise our existing policies andprocedures, to make sure we reflectbest practice in our operationsand that we’re fully compliant withall UK government legislation andlabour laws. We also work with themon developing new initiatives andtraining programmes to supportour people.A break from traditionIn the UK, careers in constructionhave not traditionally attractedmany women. We want to breakthat mould and are constantlylooking to attract new talent to nontraditionalroles. A good example isTara Green and Cindy Harding, whojust completed their carpentry andplumbing apprenticeships after anOpen College Network course inBasic Introductory Construction andBuilding Skills. This is run by WomenBuilders and Oxford Women’sTraining, part of Oxford & CherwellValley College.Looking more widely, we’re activelyinvolved in promoting women inbusiness, and our Group FinanceDirector Suzanne Baxter representsMITIE on the Board of OpportunityNow – a business campaign ledby BiTC that works with employersto realise the economic potentialand business benefits of employingwomen at all levels.Workplace summaryGender Total Male Female49,505 28,666 20,839100% 58% 42%Ethnic origin* Bangladeshi Chinese Pakistani White Black AC Indian Other0.35% 0.24% 1.00% 74.87% 9.42% 2.06% 10.96%Age 70 years3.27% 19.91% 20.72% 24.35% 20.01% 10.12% 1.61%Service 20 years51.85% 24.82% 15.21% 6.80% 1.32%* We have recorded the ethnic origin of our people since 2006. These percentages represent 23,573 of our total 49,505 people as at 31 March 2008.26 MITIE CR Report 2008

opportunity21,000MITIE people undertookone or more of our widerange of training coursesin 2007/08.MITIE CR Report 2008 27

1,000MITIE people have completedInstitute of Leadershipand Management coursessince 2006.Employee developmentTraining is important for everyone, atevery stage of their career. We offeran integrated career and personaldevelopment programme to allof our employees. In 2007/08, over21,000 MITIE people undertookone or more of our wide rangeof training courses.Furthermore, since the start of ourrelationship with the Institute ofLeadership and Management inApril 2006, almost 1,000 MITIE peoplehave completed ILM courses,including ILM Level 2 in TeamLeading, ILM Level 3 in First LineManagement and ILM Level 5in Management.We’ve also developed our inhouseNavigator men’s personaldevelopment programme andSpringboard women’s personaldevelopment programme whichwere launched in April 2007. Theseprogrammes have been specificallydeveloped for non-managerialpeople and give advice on a widerange of issues both in and out of theworkplace, from getting a promotionto building self-confidence. Comingout of the programme, candidatesmoved forward with their actionplans and were offered individualtrained mentors to support theirfuture development. In October2007 we opened the new MITIETraining Centre in Frimley Green.So far, 772 people have attended58 courses at the centre.The Skills PledgeOn 14 June 2007 MITIE became one of the first employers to makethe UK government’s Skills Pledge – a specific and voluntary promise,made by an employer to its employees, that every eligible memberof staff will be helped to gain basic literacy and numeracy skills anda full Level 2 qualification, equal to five GCSEs at A*– C. Speaking atthe launch last year Gordon Brown said: “In the future, skills will bethe only route to prosperity and jobs.” Our commitment to the SkillsPledge is a key part of our strategy: we will only deliver world-classservices if we have skilled and competent people who can seizeall the opportunities offered to them.Signing up to the Skills Pledge gives us the opportunity to demonstratepublicly the importance MITIE places on investing in the skills of ourpeople. MITIE’s commitment to developing a better skilled andqualified workforce benefits our business’ competitive advantage,as well as aiding the training, development and employabilityrequirements of our people.28 MITIE CR Report 2008

MITIE CR Report 2008 29

Warren Coborne, one of 2007’s successfulReal Apprentices. Warren currently works for ourclient Land Securities at 5 The Strand in London.“Some employment and training into work schemesdeliver some of the time. The MITIE Real Apprenticescheme has delivered every time in the last threeyears. More than 200 individuals have all beensuccessful… this is the single best employmentinitiative with which ELBA is involved – long mayit continue.”Liam J Kane, Chief Executive, ELBA30 MITIE CR Report 2008

321apprentices employed.MITIE Stars AwardsWe talk a lot about our peopleat MITIE: how much we value theirpassion, spirit and commitment, andtheir willingness to go the extra mileto make our clients happy. This iswhy we have launched an excitingnew awards scheme – MITIE Stars –which is open to every one of our49,000+ people, from cleaners andcaterers, to engineers and painters.This is a major award and the overallwinner will be up against fierceinternal competition, but the prizeswill be well worth it: anything from aholiday to a dream location, a newcar, or even a box for a year at theirfavourite football club.80%apprentice retention rates.The Real Apprentice SchemeOur award-winning Real ApprenticeScheme is now in its third yearand we’re pleased to announcethat it’s just received Big Tick reaccreditationfor 2008. This is aten-week training programme,run with the East London BusinessAlliance (ELBA), and targeted atyoung people from areas of EastLondon which have some of thehighest unemployment figures in thecountry, despite being close to thefinancial district of Canary Wharf.In the last three years the schemehas won prestigious Big TickAwards For Excellence, the 2006PFM Partners with People Awardand the Greater London TrainingAward. We’re even more proudof the fact that five of the originalseven apprentices who joined MITIEfollowing the pilot scheme are stillwith us today. ELBA confirms that thescheme now has an 80% retentionrate after six months’ employment.The 59 th apprentice to go throughthe programme has recently beenoffered a full-time job with us, and29 young people found work withMITIE in London last year, the highestnumber so far.ELBA now cites the scheme as ablueprint for other employers tofollow: both Tower Hamlets PrimaryHealth Care Trust and Macquariewill be using a similar idea in 2008.“Macquarie has adapted MITIE’sReal Apprentice scheme to fit ourbusiness. We are very excited bythe possibilities of the scheme.”Lord MacDonald, Chairman ofMacquarie Capital Europe, RealApprentice award ceremony 2008.Our young apprenticesWe’re especially proud of ourcommitment to developing newtalent and promoting vocationaltraining. There are currently 321apprentices employed across ourfacilities, engineering and propertyservices divisions, representing anincrease of 33% over last year.Last year we won the top prize in theScottish Edge Awards, which honourorganisations offering practicallearning opportunities for youngpeople. The judges were particularlyimpressed by our commitment torecruiting young apprentices intoall areas of the business, and for oursupport of local college students.The prize came with a grant of£12,000, which we’ve invested insetting up an on-the-job coachingscheme for front-line supervisorsand sponsorships for apprenticeson specialist engineering courses.We also held our first NationalApprentice of the Year Awardin 2007. The awards ceremonycelebrated exceptionalachievements by both apprenticesand mentors in our engineeringbusinesses throughout the year.The apprentices had worked on avariety of sites including our facilitiesmanagement contracts with Rolls-Royce and British Nuclear Groupat Sellafield. The overall winner wasAndrew Mason, who’s based atour Foreign and CommonwealthOffice contract in London, for thedetermination, dedication andpassion he puts into his job.“We saw a huge rise in entries from companies inScotland this year and the judging process wasextremely difficult. MITIE was a clear winner in theend – the business really goes that extra mile indelivering practical learning for young people.”Andy Powell, Edge CEOMITIE CR Report 2008 31

Settinghighstandards32 MITIE CR Report 2008

MarketplaceIn 2007 our catering businessmanaged to drive costs downand profits up, at the same timeas improving our own sustainabilityperformance – and satisfying clients’demands for more sustainableproducts. By simply changing ourconfectionery supplier to a maingrocery chain, our catering businesssaved approximately 64,000 food milesin deliveries to our sites. Likewise, bysourcing our bakery products locally,we’re investing in the surroundingcommunities and getting the freshestfood available.MITIE CR Report 2008 33

Marketplace2007/08 measurementsWe are active advocates for responsible and ethical business practice. We demand thehighest standards of social, ethical and environmental performance from our partners.MITIE has a Sustainable Procurement Forum and Supplier Improvement Programme thatwe operate with our key suppliers.Marketplace targets 2007/08We will continue to develop mutually beneficial tradingrelationships with our clients and supply chain partners,sharing good practice.We will continue to work with our significant suppliersin improving their social, ethical and environmentalperformance.We will reduce our food miles by 10% over thenext 12 months.In 2007 we will publish an Ethical Business Practice policy,based upon the tenets of the Ethical Trading Initiative‘Base Code’ and UN Global Compact principles.We will continue to develop skills and provideemployment opportunities with our clients via MITIE’sReal Apprentice and graduate programmes.We will continue our involvement and support forthe Business Services Association (BSA), participatingin meetings and contributing expertise.How we performedWe have enjoyed enhanced trading relationships asa result of undertaking collaborative volunteeringprojects, and CR knowledge transfer with some ofour clients and suppliers.MITIE’s Sustainable Procurement Forum produceda CR Supplier Questionnaire in 2007 and has sinceundertaken CR reviews with 18 significant suppliers.64,000 food miles have been avoided because we’veincreased local food sourcing, and introduced reducedfrequency, multi-drop co-ordinated deliveries with ouringredient suppliers.In July 2007, we published our Ethical BusinessPractice policy.We have successfully run five Real Apprentice Schemessince 2005, attaining very high employability rates. Thishas seen 59 people from the scheme subsequently joinMITIE. We have also won several awards and fundingin recognition of our Real Apprentice programme.Our support for the Business Services Associationcontinues as members of their CR Working Group.LevelCR Index 2007 – marketplace managementWe scored the maximum 100% and outperformed all other sector participantsin three out of the five areas in marketplace management, despite the expansionof the section’s criteria. We’ll be focusing on making significant improvements inthe influence over the rules(Q33) and consistent standards and governance (Q34)categories during 2008/09.AchievedOngoingNot achieved63%56%67%100%88%93%100%95%96%100%87%83%77%82%87%MITIESupport Services SectorProductor serviceimpact(Q30)Customers(Q31)Supply chainmanagement(Q32)Influenceover therules(Q33)Consistentstandards andgovernance(Q34)All Sector IndexSource: BiTC 2008 CRIndex Feedback Report.34 MITIE CR Report 2008

2008/09Objectives and targetsObjective:To demonstrate responsible business practiceand enhance relationships with our clientsand supply chain stakeholders.Our top four targets:1. We will engage with key clients andsupplier stakeholders, sharing CR values,knowledge and best practice;2. We will increase the range of ‘Fairtrade’food products offered to our clients andincrease volume by 20% by April 2009;3. We will conduct another ten CR reviewswith our suppliers by April 2009 as part ofour supplier improvement programme; and4. We will support relevant professionaland industry bodies in promotingCR-related issues.MITIE CR Report 2008 35

Doing untoothers . . .Business integrity, ethical trading and respectfor the individual are part of what we doevery day. They’re fundamental to ourstrategy, and inextricable from our missionto deliver quality services, opportunity forour people, and sustainable growth – andto do all that in a responsible way.We aim to adopt the highestethical standards with ourstakeholders, and engagewith our suppliers and clientsto do so. Our key businessprinciples as laid out in ourethical business policy areas follows:1. Anti-competitive practiceswill not be tolerated;2. Supplier relationships andpayment practices willbe fair and equitable;3. Conflicts of interest willbe declared;4. Bribery and corruptionwill not be tolerated;5. Insider dealing will notbe tolerated; and6. Information covered bythe Data Protection Actwill be safeguarded.We want mutual beneficial tradingrelationships with our stakeholdersthat are based on trust, ethicalbusiness practices and co-operation.These values are in-line with the basicprinciples of the UN Global Compact.MITIE also endorses the InternationalLabour Organisation’s Declarationon Fundamental Principles andRights at Work and the EthicalTrading Initiative ‘Base Code’. Weensure that employment with us isalways freely chosen, freedom ofassociation is respected, workingconditions are safe and hygienic,child labour is not used, pay is notlower than the minimum wage,working hours are not excessive,discrimination, regular employment isprovided, and no harsh or inhumanetreatment is allowed.Supplier Improvement ProgrammeWe know that selecting the rightsuppliers and sub-contractors is akey way to reduce business risk andimprove performance. In fact wesee our suppliers as partners in ourown success, and we demand thesame standards from those partnersthat we observe ourselves.In 2007 we set up a new SupplierImprovement Programme to ensurethat our main suppliers are alignedwith our CR principles and apply‘downstream accountability’ in theirown supply chains. Our partneringrelationship with national buildingproducts supplier Wolseley hasproven to be particularly rewarding.We don’t view each other just astrading partners but make surewe exchange CR knowledgeand practice by participating ineach other’s CR and environmentforums. Wolseley generouslysupport our Construction SkillsCentres by providing materialsand employment opportunities forthe student apprentices. Wolseleyalso participate in our employeevolunteering events.36 MITIE CR Report 2008142%increase in spend onFairtrade products.

As part of our Supplier ImprovementProgramme we perform a CR auditto assess a supplier’s accreditations,policies, community investmentand environmental initiatives. Weaimed to do ten of these auditslast year, but actually completed18. This proved to be a very usefulexercise and of mutual benefitto our suppliers, which is why wewill continue our audits during2008. Although we were generallyimpressed with their high standardof compliance, we had to servea ‘notice of improvement’ to twoof the 18 suppliers. The noticesidentified further improvements inrespect of reporting CO 2 emissionsand in providing assurances thattheir products are ethically produced.Sharing the benefitsWe’re constantly looking for newways to manage our procurementin a responsible, sustainable andefficient manner.When we’re faced with challengeswe always work with our clients tofind an approach that maximisesgood health, well-being and valuefor money, and minimises wasteand energy use, while contributingto local economies by using locallysourcedand sustainable products.It doesn’t stop there though: inour catering business, over 70% ofour 57,000 black waste sacks arenow made from bio-degradablematerials as are the 4.5m napkinswe use in our restaurants, and the50,000 disposable takeaway bagswe give out with our deli-food.Additionally, our 160,000 fruit andyoghurt pots are now packagedin plastic cups made frompolylactic acid.FairtradeWe’re piloting a new schemethat bags up the coffee grindsfrom our Starbucks and CostaCoffee lounges and offers them tocustomers for their home compostheaps or wormeries. This is currentlyoperating in a quarter of our sitesand we hope to be able to expandit further over the coming year. Ourspend on Fairtrade products suchas smoothies, fruit juices, chocolate,snacks, coffee and sugar sticks hasincreased by 142% from 2006 toover £25,000.We’re always looking for new andinnovative ways to improve ourservices, and it’s often our ownpeople who have the best ideas.MITIE CR Report 2008 37

Engagingwith ourclientsWe’ve helped the Departmentof Culture, Media and Sport save527 tonnes of CO 2 since 2006 – theequivalent of 527 hot air balloons.38 MITIE CR Report 2008

Client: Department for Culture, Mediaand Sport. In November 2007 our work inenergy management and sustainability withthe Department for Culture, Media and Sportwas recognised at the Premises and FacilitiesManagement annual awards, where wepicked up the Partners in SustainabilityAward 2007. Last year we also receiveda Green Apple Award for our work onthe same contract.Our customer, the Department forCulture, Media and Sport (DCMS),is responsible for government policyon the arts, sport, the NationalLottery, tourism, libraries, museumsand galleries, broadcasting,creative industries, press freedomand regulation, licensing, gamblingand the historic environment,as well as the 2012 Olympic Gamesand Paralympics.Saving energy and saving pennies.We’ve been providing our worldclassfacilities management servicesto the Department since 2005.Last year, we implementedan energy action plan and anumber of other sustainabilityinitiatives, helping to support thedepartment in its drive to achieveits environmental targets. The actionplan is reviewed on a monthlybasis, and to date has identifiedsignificant savings.Our work has also helped thembecome the first Whitehallgovernment department tobe accredited by the CarbonTrust’s Energy EfficiencyAccreditation Scheme.Ken Heaton, one of MITIE’s EnergyManagers, has been instrumentalin our work at the DCMS. Ken’sbeen involved in energymanagement for over 23 yearsand in May 2008 was awardedmembership of the Energy Institute.We’ve helped the DCMS increasetheir recycling rates by raisingawareness among its staff, includingan environmental awarenessroadshow in December 2006. Wenow have over 15 recycling pointson their site and last year alonerecycled 113 tonnes of glass, plasticbottles and aluminium cans. Wehold monthly meetings with theDCMS to discuss any improvementswe can make. Our TREEHUGGERdesktop trays for recycling paperhave been a phenomenal successon every contract and the DCMSis no exception. These trays allowevery employee to monitor theirown recycling and do somethingpractical at their own desk inconjunction with centralised bins.One of the issues we oftenencounter is a lack of storagespace for waste prior to collection,and the DCMS had the sameproblem. We dealt with this byinstalling a Minimiser, which is a balerwith three separate compartmentsfor cardboard, plastic and cans.One of our other majorresponsibilities at the DCMSis supplier management. Bycombining the collections ofrecyclable materials, we’vereduced the vehicle traffic on theirsites, as well as on local roads,and this has given them what isknown as the ‘Best PracticableEnvironmental Option’. In essence,that’s what we want to achievefor all our clients.MITIE CR Report 2008 39

quietrevolution turbines willbe a key component of manyof our low carbon schemes,and an integral part of theengineering services team’snew microgeneration offering.The first project to go live was atMerton Abbey Mills in London,which is used to power TheColour House Children’s Theatre.Leaner agreener40 MITIE CR Report 2008

EnvironmentndMITIE CR Report 2008 41

Environment2007/08 measurementsWe know our business can have an impact on the natural environment. We take measuresto minimise and mitigate this by using environmentally friendly materials and practices.We have developed our products, services and consultancy capabilities to meet theenvironmental demands of our clients, and are proud to help them to achieve theirenvironmental targets.Environment targets 2007/08We will measure, monitor and publicly report on ourenergy consumption (electricity, gas, fuel etc.) andimplement initiatives to reduce our annual energy use.From 2007 we will calculate our carbon footprint andimplement a carbon management programme toactively manage our CO 2 emissions per capita.We will continue to support our TREEHUGGER recyclingproduct range internally and externally with our clients.We will arrange environmental improvementvolunteering projects during 2007.We will focus our improvements to our consumablerecycling facilities at our offices from 2007.How we performedMeasuring, monitoring and public reporting of energyconsumption commenced in 2006/07 and refinementof the process has continued during 2007/08.A significant proportion of MITIE’s CO 2 emissions arisefrom business fuel use, so we prioritised initiatives toavoid or reduce travel in 2007. Carbon cap limits wereset for company cars and fuel efficient driving coursesundertaken by a number of our company vehicle drivers.MITIE’s TREEHUGGER product range continues toexpand and be utilised with internal and externalclients. Over 40,000 desk trays have been sold and7,000 toner units recycled since April 2007.Our volunteers carried out six significant environmentalcommunity projects in 2007 including; energymanagement consultancy for several schools (savingmoney and reducing CO 2 emissions), woodlandconservation in Scotland and a biodiversity landscapingproject in Birmingham.Additional recycling facilities installed at our officesduring 2007 include more segregated bins for paper,toner cartridges, cans and plastic waste. Smallquantities of biodegradable waste are also compostedor ‘processed’ in a wormery.LevelCR Index 2007 – environment managementWe scored the maximum 100% and outperformed our sector peers and othersector participants in all six areas and will strive to maintain this exemplarystandard throughout 2008/09.AchievedOngoingNot achieved100%94%95%100%77%83%100%89%95%100%86%90%100%85%84%100%77%84%MITIESupport Services SectorAll Sector IndexObjectives(Q23)Targets(Q24)Employeeenvironmentalprogramme(Q25)Communicationwithexternal stakeholders(Q26)Environmentalmanagementsystem(Q27)Environmentalaudit(Q28)Source: BiTC 2008 CRIndex Feedback Report.MITIE is the most improved company in the environment section of the CR Index in 2007.42 MITIE CR Report 2008

2008/09Objectives and targetsObjective:To demonstrate continuous improvementin our environmental performance.Our top four targets:1. To undertake three environmental projectswith our employee volunteer teams byApril 2009;2. To improve our measurement andmonitoring systems for fuel and energy useand reduce our per capita consumptionand carbon footprint by April 2009;3. To introduce an integrated carbonreduction commitment EnvironmentalImpact Management serviceincorporating renewable technologyoff-set solutions by April 2009; and4. To recycle 60% of our office consumablematerials waste by April 2009.MITIE CR Report 2008 43

Less ismoreAround 50% of the UK’s CO 2 emissions are attributed to theconstruction and operation of buildings. More often than not, we’reresponsible for the heating, ventilation, lighting and air-conditioningin our customers’ buildings, which puts us in an ideal position to helpthem reduce their energy consumption. The average office wastesa colossal £6,000 every year simply by leaving equipment on at nightand over the weekends. That is why our security patrols don’t justcheck for problems, but also turn off clients’ PCs and lights too.We know that the best way tomake our clients’ businesses moresustainable is to use less – lesswater, less energy, less paper, lessplastic. Combine that with a smartapproach to recycling and we canhelp them see their costs, as well astheir footprint, go down.Carbon Trust and Energy SavingTrust consultationDuring 2007 we worked with theCarbon Trust and the EnergySaving Trust to identify moreopportunities to cut our energyand fuel consumption.Although absolute CO 2 emissionshave increased over the past yearby the equivalent of 916 tonnes,the normalised emissions (takinginto account growth in averageemployee numbers and revenue)have reduced by 8.6% and 10.0%respectively. The net reduction is dueto an environmental improvementprogramme that has includedimproved energy ‘house-keeping’in offices and fuel saving initiativesdue to car sharing, use of publictransport and tele-conferencing.Water consumption has increasedand initiatives will be put in placeto mitigate this trend going forward.Vehicle fleet impactDuring 2008 MITIE’s fleet servicesteam will be accurately monitoringand reporting on our vehicle fleetcarbon emissions. With the help ofnewly developed fleet software anda large number of on-board vehicletelematics systems that enable usto optimise travel distances for ourmobile workforce, we will be ableto literally drive down our emissions.Most of our vehicles have modernEuro IV compliant diesel engines.These have the best fuel performancein their class, which reduces our CO 2emissions. Some of our drivers havealso been through the Safe and FuelEfficient Driving – you can read moreabout this in the health and safetysection of our report.Environment KPIs trend analysisCarbon Disclosure ProjectThe Carbon Disclosure Project (CDP)is a global initiative to inform investorsof the risks and opportunitiespresented by climate change andto inform company management oftheir shareholders’ views on the issue.Every year the CDP does a surveyof the environmental performanceof leading companies, and in2007 we took part for the first time.We gave them informationabout our climate change risks,opportunities and strategy, andour current CO 2 emissions. In 2008we also completed their SupplyChain Leadership Collaborationquestionnaire, which will make iteasier for our clients to monitor ourcarbon footprint performance.Unit FY2007/08 FY2006/07 % differenceTotal revenue £m 1,407.2 1,228.8 +14.5Profit before tax £m 67.9 56.6 +20.0Average number of people Number 47,959 42,367 +13.2Total CO 2 emissions Tonnes e 30,628 29,712 +3.1Normalised CO 2/ave. person Tonnes e 0.64 0.70 (8.6)Normalised CO 2/£ revenue Kg e 21.76 24.17 (10.0)Total water consumption m 3 17,103 14,798 +15.6Normalised water/ave. employee m 3 0.36 0.35 +2.944 MITIE CR Report 2008

£6,000Average office waste through leavingequipment on at night and weekends.TotalsCO 2 equivalent (tonnes)* CO 2 per Sq m (kg)2007/08 2006/07 Units 2007/08 2006/07 2007/08 2006/07Energy consumptionElectricity 4,174,213 3,772,813 kWh 1,795 1,622 46.68 51.8415,027 13,582 GJGas 2,410,864 1,637,637 kWh 458 311 11.91 9.948,679 5,895 GJSub total 6,585,077 5,410,450 kWh 2,253 1,933 58.59 61.7823,706 19,477 GJTravelLPG 72,493 81,351 litres 108 121Petrol 1,512,734 1,678,068 litres 3,479 3,860Diesel 9,424,863 9,048,552 litres 24,787 23,798Sub total 11,010,090 10,807,971 litres 28,374 27,779Total CO 2 emissions 30,627 29,712Total water consumption 17,103 14,798 m 3Annual waste figures (based on office area)General waste568.8 tonnes eRecycling472.9 tonnes e% Recycling 45.4%* CO 2 calculated using figures from DEFRA.MITIE CR Report 2008 45

£8,000Working closely with staff and pupils,we helped Castle Vale School save 51 tonnesof C0 2 and over £8,000 per year.46 MITIE CR Report 2008

Castle Vale SchoolIn 2007 we won a ‘highly commended’ certificate in the FMExcellence Awards for Sustainability, to recognise our partnership withCastle Vale School in Birmingham, home to one of our Skills Centres.The award was for our support for their entry in the ‘Go Green’challenge on Teachers TV.MITIE’s Energy Manager worked closely with both staff and pupilsto help them reduce their electricity and gas use by 10% in a singleterm. The plan ranged from purchasing and monitoring to energyawareness, and achieved not only energy savings, but morerecycling, both at home and school. The total amount savedcame to 51 tonnes of CO 2 and over £8,000 per year.HRH The Prince of Wales’sMay Day Business Summiton Climate Change, LondonOn 1 May 2008 MITIE was invitedto demonstrate our innovativeapproach to tackling climatechange at our ‘making yourbuildings and facilities smarter andgreener’ – themed stall. The May DayNetwork of companies is the largestgroup of companies committed toworking collaboratively to reducecarbon emissions.Keynote speeches on theenvironment from HRH PrinceCharles and Prime Minister GordonBrown were presented via a live linkto the conference. MITIE hosted a‘market stall’ where we promotedour wide range of environment andsustainability products and services.Visitors to our stall were particularlyinterested in our TREEHUGGERwaste management service, andour exciting new renewable energytechnology capabilities.Recycling of office consumablematerialsThese days, recycling is a crucial andcommercial aspect of our business,especially with landfill costs havingincreased by £8 per tonne from April2008. We collect, recycle and dealwith over 350 different types of waste,and because we’re not tied to usingour own disposal facilities we canshop around to get our clients thebest price from local suppliers, whichalso helps to cut traffic emissions.We also practice what we preachand have segregated recyclingfacilities at many of MITIE’s offices.These can deal with paper,cardboard, plastic and tonercartridges, and use our ownpatented TREEHUGGER rangeof products and services.Redundant computers, laptops,monitors and electrical equipmentare also recycled in accordancewith Waste Electrical and ElectronicEquipment (WEEE) regulations usingthe supplier’s asset recovery scheme.Mobile phones and accessoriesare recycled via the Fonebakscheme, with £5 donated to ourselected charities for every mobilephone recycled.Environmental Champions ForumThe Environment Champions Forummakes the most of the skills andexperience we have across thewhole Group. The forum membershave helped to develop MITIE’senvironmental strategy, andpioneered a host of energy-savingideas, as well as volunteering theirexpertise to help at local schoolsand conservation projects.Sustainability DayIn January 2008 we ran our firstSustainability Day in partnershipwith the HM Treasury (HMT) officesin Norwich, one of our majorclients. One of the Government’ssustainability objectives is toengage more actively with localcommunities, and we worked verysuccessfully in partnership with HMTto create an event that ended upbeing supported by Norfolk Police,Broadland District Council, TheNorfolk Wildlife Trust, EDF Energyand St Williams Primary School.350We collect, recycle and dealwith over 350 different typesof waste.MITIE CR Report 2008 47

quietrevolutionThe UK is one of the windiestcountries in Europe, makingwind power an ideal source ofrenewable energy. The Departmentfor Business, Enterprise andRegulatory Reform estimates thatby 2050 up to 40% of the UK’selectricity could be produced bymicrogeneration, and 6% of thatcould be from small wind turbines.We wanted to make this type ofclean sustainable energy availableto more of our clients, and haveformed a partnership withquietrevolution, the award-winningwind turbine design company tohelp us do it. quietrevolution werealso keen to work with us due toour strong track record in energymanagement and consultancyacross the whole of the UK.As the name suggests,quietrevolution turbines are virtuallysilent, as well as being attractiveto look at and extremely efficient.The elegant twist-shaped designworks well even in high winds anda single turbine can generate10,000kWh per annum, equivalentto 10% of the energy requirementsof a 600m 2 office building. In theUK, this is equivalent to displacing4,000–6,000kg of annual CO 2emissions from equivalent gridgeneratedelectricity.In the past, many wind generationschemes were refused planningpermission because of noise,vibration, or their impact onsurroundings. quietrevolution’sdesigns have managed to dealwith almost all of these objections,which is why so many local councilsacross the UK recommend them forsmall-scale urban wind generators.quietrevolution turbines will be akey component of many of our lowcarbon schemes, and an integralpart of the engineering servicesteam’s new microgenerationoffering. The first project to golive was at Merton Abbey Mills inLondon which is used to power TheColour House Children’s Theatre.“We are absolutely delightedto have been selected byquietrevolution as their installpartner. Their products havemassive credibility within therenewable energy marketplaceand this partnership will adda lot of weight to our offeringand assist in our drive to be amajor player within this sector.”Paul Burnett,Strategic Development Directorof MITIE’s energy team.48 MITIE CR Report 2008

Standard Life InvestmentsGeothermal energyAs part of the UK government’srenewable energy drive, everysignificant new building in the UKmust now generate at least 10%of its power onsite from renewablesources. Faced with this challengeStandard Life Investments came tous to help them install a geothermalenergy system at their newGuildford offices.The average temperature justbelow the earth’s surface is at aconstant 8 –13º C, which is warmerthan the air in winter and coolerthan the air in summer, makinggeothermal heat pumps idealto heat as well as cool buildings.Pumps are used to draw heat upvia pipes inserted into the ground.Our energy experts worked closelywith Standard Life’s professionalteam from the early design stagesand developed an energy solutionutilising this technology for theGuildford complex.By drawing heat vertically from theground, we’ll minimise the amountof fossil fuels required to heat orcool the building throughout theyear. Due for completion in October2008, MITIE will also be carrying outthe mechanical and electricalelements of the design and build.“We demonstrated a greatunderstanding of the renewabletechnology required. This gave theclient the confidence to not only usethe technology but also to negotiatewith us to do the project. MITIE’s proactiveapproach and knowledge ofthe technology was key in winningthe project.”Stephen Newman,Technical Director of MITIE’sengineering services division.Woodbridge Road,Guildford heatpump system1. Cooled air is deliveredto the space and heatenergy is removed.2. The heat pumps absorbthe energy from thespace and reject it tothe ground loop.Centrifugal fan drycooler located incar park plant arearejects surplus heatin summer.Mains cold water in.Hot water out.The heat pumps alsodeliver hot water.3. Heat is rejected to theground which is at aconstant temperature.Heat transferredto the ground.MITIE CR Report 2008 49

MITIE’s Stephanie Winn,finishing this year’s LondonMarathon. Her sponsorshipdonation for Great OrmondStreet Hospital was matchfundedby MITIE.Going the50 MITIE CR Report 2008

Communityextra mileMITIE CR Report 2008 51

Community2007/08 measurementsWe believe in giving something back to the many communities we work in: building linkswith local businesses, supporting our people in their own neighbourhoods and reinforcingour reputation as a responsible company. We give our skills and our time, as well as moneyto supporting people volunteering and fundraising projects.Community targets 2007/08To support and develop our seven existing MITIEConstruction Skills Centres and open another SkillsCentre during 2007 in Airdrie.We will arrange employee community volunteeringprojects in 2007.We will continue our financial and in-kind supportfor MITIE’s elected six UK regional charities;• Great Ormond Street Hospital, London;• Yorkhill Children’s Foundation, Glasgow;• Naomi House Hospice, Winchester;• Christie’s Cancer Hospital, Manchester;• CLIC Sargent, Bristol; and• Acorns Children’s Hospice, Birmingham.We will continue our involvement in the Business in theCommunity Partners in Leadership (PiL) programme.We will continue our support for the Prince’s Trust asfounder members of the Construction and BusinessServices Leadership Group (CBSLG).How we performedOur Skills Centres support continues and has increasedwith the opening of the new Airdrie Skills Centre inNovember 2007. Over 500 students are now undertakingvocational construction courses in MITIE’s Skills Centres.MITIE’s employee ‘World of Work’ and ‘EnvironmentAwareness’ volunteering projects were held at fiveSkills Centres schools delivering: careers guidance,employability skills training and environment awarenessto nearly 1,000 year ten students. Excellent feedbackfrom the students, teachers and volunteers confirmedthe positive impact of these events.MITIE’s volunteers have organised many events, raisingawareness and much needed funds for our six selectedregional charities throughout the year.Significant financial and in-kind support has also beengiven to refurbish buildings at the Bansang Children’sHospital in the Gambia by MITIE and our suppliers. A 74%improvement in child mortality has resulted in part fromour mechanical and electrical engineers designing andinstalling solar electricity to the children’s ward.The Partners in Leadership (PiL) programme has officiallyended but our support continues.Our support continued during 2007 for the Prince’s TrustCBSLG, by providing work experience placements forthe ‘Getting into Construction’ programme.LevelCR Index 2007 – community managementWe scored a maximum 100% in three of the five areas assessed, outperformingall other index participants. Our performance in the other two areas (targets(Q18) and community partnerships (Q20)) demonstrates that there is still someroom for improvement during 2008/09 for us to focus on.AchievedOngoingNot achieved64%100%91%90%75%76%83%100%94%95%75%79%100%76%82%MITIESupport Services SectorAll Sector IndexCommunitystrategy(Q17)Targets(Q18)Communityprogrammes(Q19)Communitypartnerships(Q20)Monitoring(Q21)Source: BiTC 2008 CRIndex Feedback Report.52 MITIE CR Report 2008

2008/09Objectives and targetsObjective:To provide support to the communities wherewe live and work.Our top four targets:1. We will maintain our support and developMITIE’s Construction Skills Centres;2. We will carry out four employeevolunteering team projects in thecommunity by April 2009;3. We will continue our financial andin-kind support for MITIE’s elected sixUK Regional Charities;• Great Ormond Street Hospital, London;• Yorkhill Children’s Foundation, Glasgow;• Naomi House Hospice, Winchester;• Christie’s Cancer Hospital, Manchester;• CLIC Sargent, Bristol;• Acorns Children’s Hospice,Birmingham; and4. We will deliver ‘World of Work’ eventsin at least six schools by April 2009.MITIE CR Report 2008 53

Sharingour skillsThe local community is important to MITIE. It’s where our peoplelive and where our businesses work. In 2007/08 the value of ourcommunity investment amounted to nearly £600,000. As we continueto grow into a world-class company that delivers world-class services,our commitment to the wider community grows with us, and we nowplay our part in communities across the world, as well as at home inthe UK.Skills CentresOur Skills Centres are particularlyclose to our hearts, and are our mostimportant and visible commitmentto supporting the development ofyoung people. The first Skills Centrewas opened in Portsmouth in 2001and was hailed at the time as arevolutionary new way to tackle thevocational skills shortage facing theUK by bridging the gap betweeneducation and employment. Thecentres give school children anintroduction to construction andbuilding skills. Over 500 studentsare currently studying on nationallyrecognised construction vocationalcourses in the MITIE Skills Centres.During 2007/08 we opened a furtherSkills Centre at Caldervale HighSchool in Airdrie – the first of its kind inScotland. It comes at an importanttime for the country, which is facingits own vocational skills shortage:Scottish Enterprise, the maineconomic development agencyfor Scotland, is predicting a skillsgap that would amount toa 100,000 job deficit each yearover the next decade.We worked closely with CaldervaleHigh School to convert a spaceinto the dedicated constructionSkills Centre and provided tools,equipment and personal protectiveequipment. This is the first time abusiness partner has funded avocational centre in a Scottishschool, and we’re proud to bethe pioneers. Furthermore, we arepleased to announce that our SkillsCentres have recently received BigTick re-accreditation for 2008.“I am delighted that CaldervaleHigh is home to this terrific newSkills Centre and that our pupilsare among the first to benefitfrom such a high quality facility…It has given our students a realfeel for a professional buildingenvironment and a taste of lifein the construction industry.”Caldervale High’s Head Teacher,Colin Bulloch.Employee volunteering strategyMITIE’s people have a wealth of skillsand experience that we can sharewith the community. Since 2005,over 1,000 students have benefitedfrom our ‘World of Work’ days,which are designed to increasetheir employability skills.1,000students have benefited fromour ‘World of Work’ days.We are keen to expand theunderstanding of opportunitieswithin the workplace to moreyoung people, and in 2008/09we’ll build upon the ‘World of Work’programme. This initiative will bedesigned to help young peopleto understand the roles that couldbe available to them when theyleave school.In 2007, we also ran two environmentawareness days to showcase energyconservation and renewable energytechnology. Over 100 MITIE volunteersparticipated in these events, acrosssix of our eight Skills Centre schools.54 MITIE CR Report 2008

Bansang Hospital appeal – GambiaFrom its base in a remote area ofthe African bush, Bansang Hospitallooks after the healthcare needsof some 600,000 people from theGambia, Senegal, Mali, GuineaBissau, Guinea Conakry andrefugees from Sierra Leone. In recentyears it had become increasinglydifficult for the hospital to retainfully trained and qualified staff, andpoor accommodation and livingconditions have been a majorfactor in this.Our most recent work with thehospital was a complete refit ofthe old colonial building to create12 single bedrooms and two selfcontainedunits for married medicalstaff. Our mechanical and electricalengineers worked alongside localworkers on the new ‘MITIE House’during 2007, and it opened in 2008.The project used local materialswherever possible, as well as otheritems donated by our UK suppliers.We also made a point of trainingthe local people who workedat the site, so that they can takeon the maintenance of thebuilding themselves.It’s been a thoroughly worthwhileproject to be involved with, andbuilds on the work we had alreadydone to design and install a solarpanel to bring cheap, renewableand reliable electricity to thehospital’s children’s unit.Moor TreesMoor Trees is a conservation charityworking mainly in the Dartmoorarea restoring native woodland. Wefirst got involved with them in 2005,when we were looking for a partnerto help us offset the emissions fromour vehicle fleet. We chose MoorTrees because of their passion forthe countryside, and their positiveapproach to conservation andcommunity involvement, whichare important to us too.We also wanted to build apartnership that could becomepart of our programme of CRVolunteering Days.We held one of these on Dartmoorfor the first time in 2006, and ourteam helped to build a rodentfence, construct a buzzard perch,and plant trees. Our support forMoor Trees included the donationof a minibus in 2007.Community investment 2007/08 £Donations to charities, community projects etc. 151,154Match-funded cash donations to charities 13,390Value of employee time volunteered 102,963Value of gifts in-kind donations 211,095Community affairs management costs 113,530Total community investment 592,132Community investment as a % of profit before tax 0.87%Political donations – it is not MITIE’s policy to contribute political donations.Community investmentKPIs trend analysis Unit FY2007/08 FY2006/07 % differenceTotal revenue £m 1,407.2 1,228.8 +14.5Profit before tax £m 67.9 56.6 +20.0Average number of people Number 47,959 42,367 +13.2Community investment £ 592,132 611,836 (3.2)% of profit before tax % 0.87 1.08 (21.0)ppsMITIE’s community investment decreased by £19,704 (3.2%) compared to the previousreporting period, partly due to the lower financial commitments required in financingthe eighth MITIE Skills Centre in Airdrie (compared to three Skills Centres during 2006/07).MITIE’s regional charitiesNorthScotlandMidlandsSouth Westand WalesSouthSouth EastChristie’s CancerHospital,ManchesterYorkhillChildren’sFoundationAcornsChildren’sHospiceCLIC SargentNaomi HouseChildren’sHospiceGreat OrmondStreet HospitalMITIE CR Report 2008 55

GRI indicatorsFor the first time in our CR reporting we’ve published a cross-referencing of our report tokey GRI indicators to help readers find key areas of interest. We’ve been assisted in thepreparation of this table by Corporate Citizenship and it’s our intention to supply a morecomprehensive index in our next report.Company profile disclosuresPerformance indicators1.1 CEO Statement Page 3 EC3 Pension obligations ARA Note 34 page 861.2 Key risks ARA Principal risksand uncertaintiespages 46–47EC4Significant governmentassistanceNone2.2 Primary services Pages 6–7 EC7 Local hiringof managers2.3 Operational structure Pages 6–7 EN3 Direct energy Page 452.4 Headquarters Back cover EN4 Indirect energy Page 452.5 Countries of operation United Kingdom EN5 Energy saved Page 442.6 Legal form UK plc EN8 Water Page 442.7 Markets served Pages 6–7 EN16 Greenhouse gas Page 442.8 Scale of organisation Pages 6–7, also seeARA page 32.9 Changes in reportingperiodARA Acquisitionspage 21–222.10 Awards received ARA corporateresponsibility page 363.1 Reporting period Year ending31 March 2008Hiring takes placelocally and nationallyEN21 Water discharge Overwhelmingly tomains drainageEN22 Waste Page 45EN29 Transport Pages 44–45PR2Health and safetybreaches3.2 Most recent report CR Report 2007 LA1 Workforce by type Page 26ARA CR page 363.3 Reporting cycle Annual LA5 Minimum notice period Fully compliantwith UK law3.4 Contact point Page 57 LA7 Occupational injury Page 163.5 Process for definingcontent3.10 Significant changesfrom previous reports3.13 Policy on independentassuranceBased on BiTC modelcategorisationLA8Serious diseaseprogrammesPage 20None LA10 Hours of training Pages 26–31Have chosen notto assureLA13Compositiongoverning bodyARA corporategovernance statementpage 414.1 Governance structure Page 11 HR2 Contractors screened Page 364.2 Is Chair also CEO? No SO1 Communityengagement4.3 Director independence ARA Directorindependence page 424.5 Executive remuneration ARA Directors’remuneration reportpage 524.7 Board expertise ARA Directorappointment inductionand training page 43Pages 50–55SO6 Political donations ARA donations page 51ARA MITIE Group PLC Annual Report and Accounts 2008GRIGlobal Reporting Initiative4.9 Managing SEE risk/opportunityARA Principal risksand uncertaintiespages 46–474.10 Board performance ARA Review of Boardperformance page 4356 MITIE CR Report 2008

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MITIE Group PLC8 Monarch CourtThe BroomsEmerson GreenBristolBS16 7FHT: 0117 970 8800F: 0117 302 6743E: cr@mitie.co.ukwww.mitie.co.uk