Sustainability Report 2021
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<strong>Sustainability</strong><br />
<strong>Report</strong> <strong>2021</strong><br />
For the reporting period 1st November 2020<br />
to 31st October <strong>2021</strong><br />
keepmoat.com
CONTENTS SUSTAINABLE BUSINESS MODEL <strong>Sustainability</strong> <strong>Report</strong> 03<br />
Contents<br />
Powering UK homebuilding<br />
through partnership<br />
Sustainable business model 03<br />
<strong>Sustainability</strong> highlights 04<br />
Chief Executive Officer’s update 06<br />
Defining priorities 09<br />
Governance 10<br />
Sustainable cities and communities 12<br />
Good health and wellbeing 20<br />
Quality education 22<br />
Decent work and economic growth 24<br />
Industry, innovation and infrastructure 26<br />
Responsible consumption and production 28<br />
Climate action 30<br />
At Keepmoat Homes we think and act beyond bricks<br />
and mortar – sustainability is built into our vision: Building<br />
Communities and Transforming Lives.<br />
As well as creating better places for people to live across<br />
England and Scotland, we know our success depends on<br />
playing our part in building the sustainable communities<br />
and enhanced environments our customers and partners<br />
value.<br />
Working with our partners we have built thousands of new<br />
homes across the country, 69% of them on brownfield<br />
sites, transforming them into thriving new communities.<br />
As a leading homebuilder for first time buyers, we help<br />
people take their first step on the property ladder with<br />
our average selling price at £179,000.<br />
Above all, we are committed to delivering more of the<br />
high quality, multi-tenure, new homes the UK needs<br />
at prices that people can afford. In the last year, we<br />
maintained a 5-star customer satisfaction score with<br />
the Home Builders Federation.<br />
Creating sustainable value through the development process<br />
(Building Communities. Transforming Lives)<br />
Life on land 32<br />
Partners, awards and accreditations 34<br />
Performance data 36<br />
Purchase<br />
brownfield land at<br />
low cost in areas of<br />
social, environmental<br />
and economic need<br />
Establish<br />
sustainable solutions<br />
with development<br />
partners and local<br />
communities<br />
Deliver great homes<br />
in great places at a<br />
low average sales<br />
price to a stable first<br />
time buyer market<br />
Create lasting social,<br />
environmental<br />
and economic<br />
value during the<br />
construction phase
SUSTAINABILITY HIGHLIGHTS <strong>Sustainability</strong> <strong>Report</strong> 05<br />
<strong>2021</strong> <strong>Sustainability</strong><br />
highlights<br />
Key corporate achievements this year<br />
Environmental Social Governance<br />
38<br />
mental health first<br />
aiders in position<br />
6%<br />
employees on ‘earn<br />
and learn’ schemes<br />
£200.8m<br />
social value delivered<br />
98%<br />
waste diverted from<br />
landfill<br />
Committed to set science-based<br />
carbon emissions targets<br />
Joined Race to Zero, committing to<br />
go net zero before 2050<br />
Audited purchased timber for<br />
FSC and PEFC certification<br />
Delivered a 5-month COP26<br />
engagement campaign<br />
Embedded ecological<br />
enhancement and biodiversity net<br />
gain assessment into development<br />
processes.<br />
Developed national Social Value<br />
Standards<br />
Introduced a sustainability value<br />
reporting tool<br />
Social Value Management<br />
system certified by Social Value<br />
International<br />
Achieved Gold Status of the<br />
5% Club<br />
Retained Investors in People<br />
status.<br />
Transformed our governance<br />
structure<br />
Created a new sustainability<br />
function<br />
<strong>Report</strong>ed on the year in our first<br />
sustainability report<br />
Partnered with the Supply Chain<br />
<strong>Sustainability</strong> School and gained<br />
Gold status as a member<br />
Joined the Future Homes<br />
Taskforce.<br />
94%<br />
of sub-contract spend<br />
with businesses<br />
accredited to CHAS<br />
Advanced<br />
20%<br />
operational carbon<br />
reduction per home<br />
since 2019<br />
Our social and economic footprint<br />
£200.8m<br />
Social value generated<br />
£49.9m<br />
Other<br />
contributions<br />
98%<br />
homes EPC rating<br />
of B or higher<br />
Read page 9 for more information on the<br />
UN Sustainable Development Goals.<br />
69%<br />
of homes built<br />
on regenerated<br />
brownfield land<br />
£1.48m<br />
Environmental<br />
• Diverting waste from<br />
landfill<br />
• Providing new<br />
dwellings with access<br />
to waterbodies.<br />
£1.04m<br />
Social<br />
• NEETs employed<br />
• Apprentices<br />
employed<br />
• Employee diversity<br />
training<br />
• Employee wellbeing<br />
programmes<br />
• Employment support<br />
for youth<br />
• And more...<br />
£198.3m<br />
Economic<br />
• Spend with local<br />
suppliers<br />
• Employing local<br />
people directly<br />
• Local employment<br />
through the supply<br />
chain<br />
• Training through our<br />
graduate scheme<br />
• Hyperfast<br />
broadband.<br />
£49.9m<br />
contribution towards<br />
the provision of<br />
affordable housing
CHIEF EXECUTIVE OFFICER’S UPDATE <strong>Sustainability</strong> <strong>Report</strong> 07<br />
In the year that COP26 took place in<br />
Glasgow, we’ve taken further steps<br />
to embed social and environmental<br />
sustainability in everything we do.<br />
The government is clear that housing will play a pivotal<br />
role in decarbonising Britain. This poses technical, supply<br />
chain and skills challenges for our industry, but it is also<br />
a great opportunity to attract new layers of people into<br />
our workforce and sell the benefits of energy efficient<br />
new builds to our customers. As a homebuilder which<br />
specialises in working with public sector partners, often<br />
on sites with high sustainability requirements, we are<br />
well placed to play a leading role in what will be a<br />
transformation in housebuilding over the next five years<br />
and beyond.<br />
Our pilots of smart homes to reduce energy bills at West<br />
Gorton with Salford University, and the low carbon homes<br />
we are about to build at Parklands Village at Westonsuper-Mare<br />
provide a steady stream of opportunities to<br />
learn and prepare for the 2025 Future Homes Standard.<br />
And our focus on delivering social value across our<br />
developments ensures that we, together with our suppliers<br />
and sub-contractors, are providing opportunities for a new<br />
generation of builders who will provide the warm, efficient<br />
homes of the future in sustainable communities in thriving<br />
economies. This goes to the heart of our Vision – Building<br />
Communities, Transforming Lives. We have achieved a<br />
Social Value Management Certificate Level 1 in recognition<br />
of our developing expertise on social value, and are the<br />
only major national developer to hold this accolade.<br />
These measures put us in a strong position going forward<br />
for the short, medium and long term when combined<br />
with the commitments we have made this year to set<br />
science-based carbon emission targets and to go net zero<br />
by at least 2050. Our partnership with the Supply Chain<br />
<strong>Sustainability</strong> School will increase the capacity of our<br />
suppliers along this journey and provide excellent learning<br />
opportunities for our directly employed colleagues too.<br />
This is why the social side of sustainability is so important<br />
to Keepmoat – globally there are great environmental<br />
challenges but ultimately it is people that must meet those<br />
challenges, through skills, knowledge, innovation and<br />
ensuring that solutions are accessible to all. At the time of<br />
writing the pressure that high energy prices are putting<br />
on households is highlighting the ever more visible links<br />
between social, economic, and environmental issues.<br />
This <strong>Sustainability</strong> report - Keepmoat’s first - aims to clearly<br />
and transparently reflect how Keepmoat is considering<br />
all these issues and performing against them. I would be<br />
delighted to receive your comments on it.<br />
https://www.keepmoat.com/contact-us<br />
“Globally there are great<br />
environmental challenges<br />
but ultimately it is people<br />
that must meet those<br />
challenges, through skills,<br />
knowledge, innovation<br />
and ensuring that solutions<br />
are accessible to all.”<br />
Tim Beale<br />
Chief Executive Officer
DEFINING PRIORITIES <strong>Sustainability</strong> <strong>Report</strong> 09<br />
Working hand in hand with stakeholders<br />
Our <strong>Sustainability</strong> Strategy is based on the material sustainability issues which<br />
matter most to the people around us.<br />
UK Sustainable Development<br />
Goals (SDGs)<br />
A key part of setting this strategy was our materiality<br />
assessment conducted in FY19, a detailed stakeholder<br />
consultation with 135 internal and external stakeholders. This<br />
included our employees, clients, investors, partners, the third<br />
charitable sector and members of the local community.<br />
By analysing the quantitative and qualitative responses<br />
from our stakeholders, we developed a materiality matrix,<br />
which gave us a clear indication of the importance of key<br />
sustainability issues to our stakeholders. We subsequently<br />
used this insight to refine our strategy and align our approach<br />
to eight of the UN’s Sustainable Development Goals.<br />
Importance to stakeholders<br />
Clean energy<br />
Sustainable travel<br />
More information on our materiality process is available in our<br />
<strong>Sustainability</strong> Strategy document.<br />
Refreshing our analysis<br />
In recognition that the COVID-19 crisis may have changed<br />
the priorities of many of our stakeholders we will be<br />
refreshing our materiality analysis in FY22 via an independent<br />
stakeholder consultation conducted by the Grantham Centre<br />
for Sustainable Futures.<br />
Transparency<br />
Biodiversity<br />
Accessible and adaptable homes<br />
Community regeneration<br />
Zero net waste<br />
Climate change resilience<br />
Accredited management systems<br />
Employee wellbeing<br />
Community wellbeing<br />
Community training<br />
MMC<br />
Supply chain competency<br />
Sustainable procurement<br />
Youth education<br />
Pollution prevention<br />
Employee development<br />
Sustainable<br />
developments<br />
and homes<br />
Affordable homes<br />
Climate change mitigation<br />
Health and safety<br />
The background<br />
The United Nations has defined 17 Sustainable<br />
Development Goals (SDGs); a blueprint that helps us work<br />
together and contribute to a better and more sustainable<br />
future. As well as considering the environment, the SDGs<br />
address key social challenges, including inequality, poverty,<br />
education and economic prosperity. They also ultimately<br />
provide a framework for nations and businesses to identify<br />
common purposes and opportunities, showing how local,<br />
industry and global action can be interwoven.<br />
Eight SDGs. One lasting commitment<br />
to sustainability<br />
We take a holistic approach to the delivery of sustainability<br />
at Keepmoat and work to address global sustainability<br />
priorities on a local level. By focussing on eight material<br />
SDGs, we have developed a vision of sustainability<br />
activity that helps us to contribute to global<br />
and local priorities. This approach also<br />
helps us to refine our focus and<br />
ensure we make a material<br />
difference to the people and<br />
places around us, every day.<br />
A global approach on a local level<br />
The challenges addressed by SDG 11 (Sustainable Cities and<br />
Communities) are key focusses for our business. Seven other<br />
SDGs inform our corporate vision and strategy, prioritising<br />
the material sustainability issues that matter most to<br />
Keepmoat Homes and our partners.<br />
Over the following pages, we’ve included case studies that<br />
highlight our holistic approach to achieving sustainability<br />
and making communities inclusive, safe, resilient and<br />
sustainable (the key focuses of SDG 11). These are followed<br />
by specific updates on our progress in FY21, relating to each<br />
of our seven goals and the associated SDGs.<br />
Local workforce<br />
Staff volunteering<br />
Diversity and inclusion<br />
Importance to Keepmoat Homes
GOVERNANCE <strong>Sustainability</strong> <strong>Report</strong> 11<br />
Governance and management<br />
During the year we changed our governance structure and the way we manage<br />
sustainability to enable lines of responsibility that cover all functions of the organisation.<br />
This is creating a clearer pathway of decision making and accountability from our main<br />
business operations, to our sustainability department and Board.<br />
A <strong>Sustainability</strong> Committee of the Executive with crossfunctional<br />
oversight now ensures a full-focus on sustainability<br />
each quarter at the highest levels of the organisation.<br />
Alongside this change, we have created an entirely new<br />
sustainability function, including new positions of Head of<br />
<strong>Sustainability</strong> and Corporate <strong>Sustainability</strong> Adviser.<br />
At the community level our Social Value Managers remain as<br />
part of our local Land and Partnerships Teams coordinating<br />
delivery of social value locally, with strong channels of<br />
communication via a monthly Social Value Working Group.<br />
IT<br />
Technical<br />
Construction<br />
Commercial<br />
Supply Chain<br />
Land<br />
Social Value<br />
Managers<br />
RMT<br />
Finance<br />
HR<br />
Legal<br />
Comms<br />
EHS<br />
Corporate <strong>Sustainability</strong><br />
Adviser<br />
• <strong>Report</strong>ing and benchmarking<br />
• Communications and awards<br />
• Coordinating social value activity<br />
• Performance monitoring<br />
• Bidding support<br />
• Carbon/climate mitigation<br />
Delivery of sustainability improvements is embedded within<br />
day-to-day business activities in our regional businesses and<br />
is supported by regular sustainability messaging through<br />
our ‘Hub’ intranet site, weekly ‘Monday Matters’ employee<br />
newsletter and ‘Home’, our seasonal employee magazine.<br />
A training plan is in place for the delivery of the most relevant<br />
sustainability issues for the senior leaders of our business,<br />
including the Executive, making the most of our partnership<br />
with the Supply Chain <strong>Sustainability</strong> School.<br />
Investors and Board of Directors<br />
CEO<br />
Head of <strong>Sustainability</strong><br />
Senior Environmental<br />
<strong>Sustainability</strong> Advisor<br />
CEO and Executive<br />
Executive and <strong>Sustainability</strong><br />
Committee<br />
<strong>Sustainability</strong> Steering Committee<br />
<strong>Sustainability</strong> Function<br />
Social Value<br />
Working Group<br />
• Environmental investigation<br />
• ISO 14001:2015 management<br />
• Auditing and inspections<br />
• Operational environmental support<br />
• Training and briefings<br />
FOCUS<br />
Environmental<br />
& Social Governance<br />
Strategy & delivery<br />
Social Value Managers<br />
Land & Partnerships function<br />
• Social Value bid support<br />
• Maintain regional partnerships<br />
• Deliver social value commitments<br />
• Monitor performance<br />
• Delivering social value through<br />
supply chains<br />
Taskforce for Climate-related<br />
Financial Disclosures (TCFD)<br />
Keepmoat is progressing adoption of the recommendations of TCFD in reporting<br />
disclosures. While full adoption of TCFD is in progress, the below table provides a<br />
summary indication of readiness as part of our journey of progression.<br />
Governance Strategy Risk management Metrics and targets<br />
Disclose the<br />
organisation’s<br />
governance around<br />
climate-related risks and<br />
opportunities.<br />
<strong>Sustainability</strong> risks and<br />
opportunities, including<br />
those around climate<br />
change are raised to<br />
the Board through the<br />
Executive <strong>Sustainability</strong><br />
Committee (see page 10).<br />
Management and<br />
assessment of climate<br />
risks and opportunities<br />
is via the <strong>Sustainability</strong><br />
Steering Committee that<br />
liaises closely with function<br />
leaders as issues develop.<br />
Disclose the actual and<br />
potential impacts of<br />
climate-related risks<br />
and opportunities<br />
on the organisation’s<br />
businesses, strategy, and<br />
financial planning<br />
where such information<br />
is material<br />
Our Annual <strong>Report</strong> <strong>2021</strong><br />
references climate risks in<br />
the report on physical risks<br />
including construction-side<br />
risks from drier summers<br />
and wetter winters. It also<br />
references development<br />
flood risk mitigation in<br />
the form of sustainable<br />
drainage systems.<br />
Independent climate<br />
risk reports have been<br />
undertaken during FY21<br />
and we are currently<br />
working to apply different<br />
climate scenarios to these<br />
analyses.<br />
This sustainability report<br />
starts to outline the early<br />
elements of our carbon<br />
reduction strategy including<br />
mitigation opportunities.<br />
Disclose how the<br />
organisation identifies,<br />
assesses, and manages<br />
climate-related risks.<br />
Climate-related risks<br />
are manged through<br />
our ISO14001:2015<br />
management system –<br />
climate risks are assessed in<br />
relationship to organisation<br />
context, interested parties<br />
and compliance obligations.<br />
This process identifies<br />
likelihood and severity<br />
of risks, responsibilities,<br />
mitigations and controls.<br />
Business functions<br />
contribute to identification<br />
and management of<br />
these risks through the<br />
<strong>Sustainability</strong> Steering<br />
Committee, with risks<br />
assigned an ‘owner’<br />
ensuring that mitigations<br />
and controls are actioned.<br />
Residual risks are reassessed,<br />
after which<br />
significant risks can be<br />
escalated to the corporate<br />
risk register, ensuring<br />
Executive oversight.<br />
Metrics and targets<br />
Disclose the metrics and<br />
targets used to assess<br />
and manage relevant<br />
climate-related risks and<br />
opportunities where<br />
such information is<br />
material.<br />
Keepmoat records and<br />
reports a number of metrics<br />
on carbon emissions<br />
(scope 1, 2 and 3). The<br />
business also reports on<br />
climate adaptation metrics<br />
including the proportion<br />
of developments with<br />
SUDs ponds and energy<br />
efficiency (EPC) ratings<br />
of homes. See this on<br />
pages 36 to 39.<br />
At the time of writing our<br />
carbon reduction target<br />
is to reduce scope<br />
1 & 2 emissions by 3% per<br />
annum. The business has<br />
pledged to set a sciencebased<br />
carbon emission<br />
target via the SBTi, and<br />
has joined the Race to<br />
Zero with a pledge to be<br />
net zero carbon by at least<br />
2050.<br />
RMT and EHS relate to Regional Management Team and Environment, Health and Safety function.
SUSTAINABLE CITIES AND COMMUNITIES <strong>Sustainability</strong> <strong>Report</strong> 13<br />
Delivering a better<br />
tomorrow for everyone<br />
As well as creating safer, more sustainable places for people to live, we’re working<br />
with our partners to create and improve places, which in turn improve economic,<br />
environmental and social outcomes.<br />
Throughout the development process positive outcomes for<br />
communities, partners and our other stakeholders enable us<br />
to develop strong relationships with public sector partners,<br />
purchase brownfield land at low cost and deliver positive<br />
environmental social and economic outcomes creating<br />
thriving new communities.<br />
£200.8m<br />
SOCIAL VALUE GENERATED<br />
69%<br />
58%<br />
39%<br />
Completed home sales on<br />
brownfield land<br />
Home sales completed in<br />
regeneration areas (the bottom<br />
two deciles of Indices of Multiple<br />
Deprivation)<br />
Homes are affordable<br />
Our goals<br />
• To address the national housing shortage<br />
through the construction of affordable<br />
homes<br />
• To deliver sustainable community and<br />
regeneration initiatives around Keepmoat<br />
Homes developments.<br />
Our progress in FY21<br />
• 39% of our homes sold to affordable<br />
housing providers at a discount worth<br />
£49.9m<br />
• New social value reporting system<br />
introduced. £200.8m social value<br />
generated<br />
• Level 1 Social Value Management<br />
certification achieved.<br />
“We use the term social value to<br />
describe the environmental, social and<br />
economic benefits generated through<br />
the outcomes of our business activities<br />
both locally and nationally over the<br />
short, medium and long-term.”<br />
Our strength in this area comes through our team of expert<br />
Social Value Managers that understand local priorities and<br />
focus on engaging stakeholders at all stages to understand<br />
and deliver the outcomes they want to see.<br />
Over the past year we have focused on moving from local<br />
level excellence on key projects to furthering national<br />
consistency in our delivery of social value outcomes.<br />
During the year:<br />
• We created a Social Value Working Group that<br />
shares best practice and implements national-level<br />
improvements<br />
• Created national Social Value Standards incorporating<br />
best practice approaches<br />
• Set up a sustainability and social value reporting tool to<br />
improve the way we collect data – showing £200.8m in<br />
social value generated through all our business activities<br />
• Delivered training on social value to the industry, via the<br />
Supply Chain <strong>Sustainability</strong> School<br />
• Successfully upgraded to the Social Value Management<br />
Certificate Level 1.
SUSTAINABLE CITIES AND COMMUNITIES <strong>Sustainability</strong> <strong>Report</strong> 15<br />
Case study:<br />
Riverbank View<br />
(Charlestown, Salford)<br />
Charlestown is a Keepmoat development on<br />
a brownfield site in the centre of Salford. In<br />
collaboration with Salford City Council, we’re helping<br />
to regenerate the area; and providing training, job<br />
opportunities and an improved environment.<br />
Starting in 2016, this site exemplifies our<br />
longstanding competence in the integration of<br />
sustainability into our partnership offering and<br />
how it supports our business success.<br />
This approach differentiates us from a traditional<br />
housebuilder and helps to ensure we address<br />
the biggest societal and environmental issues<br />
facing us.<br />
Working in partnership with Salford City Council<br />
and Inspiring Communities Together, we’re<br />
helping to regenerate the area; providing training,<br />
jobs and an improved environment. This resulted<br />
in the development winning the 2018 Social<br />
Value UK award for its work with young people<br />
not in employment education or training (NEETs).<br />
Social impact<br />
42 apprentices through the build partnership<br />
78% local labour<br />
177 weeks of work experience and 2,800 under-<br />
25s engaged in social and economic activities<br />
240 participants attending training, obtaining<br />
460 qualifications and industry certifications<br />
497 children supported with holiday hunger<br />
Number of local shops increased 3 fold.<br />
Partner endorsement (Salford City Council)<br />
“Keepmoat Homes are a stand out construction<br />
employer for their range of employment and<br />
training programmes with outstanding outcomes<br />
all delivered with a deep understanding of<br />
effective partnership working and a real passion<br />
for helping some of those people who need the<br />
help the most. Fantastic!”<br />
Placemaking<br />
15 hectare brownfield development of 425<br />
homes, located in a regeneration area,<br />
13% (2 hectares) green space and play areas<br />
s106 and affordable housing<br />
25% (85 homes) affordable housing<br />
Status<br />
Commenced on site in 2016.<br />
Environmental impact<br />
Sand martin nesting colony created on the<br />
river bank<br />
Shortlisted for the BIG Biodiversity Award for<br />
our horticultural project working with young<br />
people not in employment education or training.<br />
99% of waste diverted from landfill.
SUSTAINABLE CITIES AND COMMUNITIES <strong>Sustainability</strong> <strong>Report</strong> 17<br />
Case study:<br />
Hull Citywide Developer<br />
Partnership<br />
The Hull Citywide Developer Partnership (HCDP) is a<br />
consortium of developers that includes Keepmoat,<br />
Strata, Home Group and Priority Space, appointed to<br />
undertake the regeneration of the Preston Road area.<br />
The Preston Road area is a true example of how<br />
the local community, the Council and the private<br />
sector can come together to regenerate an area,<br />
stimulate private investment and deliver truly<br />
transformational change.<br />
Located in one of the lowest 1% of deprived<br />
areas nationally, the area has low levels of skills<br />
(nearly half the population have no qualifications)<br />
and wages, high levels of unemployment and<br />
benefit reliance, poor health and high levels<br />
of crime.<br />
An extensive community engagement and skill<br />
programme has delivered huge change and<br />
regeneration in a turbulent and challenging<br />
environment.<br />
Placemaking<br />
Construction of 1,200 new homes, refurbishment<br />
of 365 existing homes, new secondary school<br />
and commercial units £500m private investment<br />
in the area.<br />
s106 and affordable housing<br />
41% (279 homes) affordable housing.<br />
Status<br />
Commenced on site in 2015 with 680 homes<br />
delivered to date.<br />
Partner endorsement (Hull City Council)<br />
“Keepmoat Homes is a long term strategic<br />
partner for the Council delivering regeneration<br />
programmes and housing growth across the city.<br />
Job creation and providing training opportunities<br />
are a big part of the Councils requirements when<br />
delivering new homes. Keepmoat offer a range<br />
of employment and training programmes which<br />
benefit the local economy and local people. This<br />
work with local communities and generating long<br />
lasting benefit was reflected in a recent award<br />
from Social Value UK, Excellent!”<br />
Social impact<br />
£15m of social value generated 41% reduction<br />
in unemployment<br />
22% reduction in anti-social behaviour<br />
672 jobs created or safeguarded 98 new<br />
apprenticeships<br />
44 trainees and 50 work experience placements<br />
65% local labour<br />
£1m of funding secured from DFE and CITB to<br />
create a new construction skills hub.<br />
Environmental impact<br />
Green spaces and infrastructure across sites<br />
supporting flood mitigation, biodiversity and<br />
wellbeing<br />
97% landfill diversion.
SUSTAINABLE CITIES AND COMMUNITIES <strong>Sustainability</strong> <strong>Report</strong> 19<br />
Case study:<br />
Chase Farm, Gedling<br />
Chase Farm is a Keepmoat development on a<br />
brownfield former colliery site. Through our long<br />
term partnership with Homes England and Gedling<br />
Borough Council, we’re transforming the formerly<br />
contaminated site; providing affordable homes, jobs<br />
and environmental enhancements.<br />
Chase Farm is a great example of how working<br />
with partners we invest in local communities and<br />
deliver local benefits.<br />
We are providing affordable homes by<br />
regenerating a large brownfield site, are<br />
facilitating delivery of a major infrastructure<br />
project and creating connections into nature for<br />
the local community.<br />
Social impact<br />
4 work placements<br />
414 onsite training weeks<br />
17 new jobs created<br />
62 qualifications<br />
Establishment of community investment fund.<br />
Placemaking<br />
50 hectare brownfield development for 925<br />
homes, a primary school, a local retail area,<br />
amenity space, community investment and<br />
substantial infrastructure.<br />
s106 and affordable housing<br />
10% affordable housing target and currently<br />
delivering 25% on Phase 1.<br />
Status<br />
Commenced on site in May 2017 with 219<br />
homes delivered to date including fully volumetric<br />
modular homes.<br />
Environmental impact<br />
Green spaces and infrastructure across sites<br />
supporting flood mitigation, biodiversity and<br />
wellbeing<br />
97% landfill diversion.<br />
Partner endorsement (Gedling Borough Council)<br />
“In addition to providing much needed new<br />
and affordable homes for the local community,<br />
Keepmoat have been partnering with local<br />
community stakeholders through the provision<br />
of apprenticeships, site-based work experience<br />
opportunities and facilitating interactive<br />
workshops with local schools. The purpose of<br />
these is to raise aspirations of local young people<br />
and provide them with opportunities to find<br />
out more information about careers within the<br />
construction sector.”
GOOD HEALTH AND WELLBEING <strong>Sustainability</strong> <strong>Report</strong> 21<br />
Looking after our people<br />
and communities<br />
We’re making people a priority and supporting the health and wellbeing of our<br />
people, our sub-contractors and our communities.<br />
38<br />
MENTAL HEALTH FIRST AIDERS<br />
ACROSS THE BUSINESS,<br />
COVERING ALL REGIONS<br />
Our goals<br />
• To align our neighbourhood wellbeing<br />
initiatives to our partners’ key priorities<br />
• To support health and wellbeing<br />
across our team and supply chain, and<br />
continually reduce sickness absence.<br />
Our progress in FY21<br />
• 6 Wellbeing case studies developed<br />
• Investors in People accreditation<br />
maintained<br />
• 38 Mental Health First Aiders across the<br />
business, covering all regions.<br />
We believe that protecting the physical and mental health of<br />
people should be a priority for all responsible businesses.<br />
COVID-19 has challenged us to assess and rethink how we<br />
support our people and the communities we live and work<br />
in, while maintaining social distancing and safe working<br />
conditions. We have subsequently focussed on two key<br />
areas.<br />
1. Workforce health and wellbeing<br />
KeepWell, a key part of our employee value proposition, is<br />
a broad package of support which includes a mental health<br />
toolkit, healthy living advice calendar and communications,<br />
and medical insurance. It has been even more important<br />
over the past two years supporting our people through<br />
the COVID-19 challenges. Available to all direct employees,<br />
the support delivered through KeepWell this year was<br />
worth £144,782 in terms of social value to our employees.<br />
We have 38 mental health first aiders in place across the<br />
business supporting all our regions.<br />
“We are proud to have retained our<br />
Investors in People accreditation after<br />
an assessment during the year, which<br />
noted a culture of collaboration within<br />
the company: ‘People talk with great<br />
respect and admiration for each other<br />
and love working together to get<br />
things done’.”<br />
With feedback from office-based employees that they<br />
prefer a balance between working at home and the office,<br />
our Agile Working Policy, introduced at the beginning of<br />
the pandemic, remains in place. Providing opportunities for<br />
employees to develop personally and professionally is also<br />
a contributor to overall wellbeing – read more about this<br />
on page 24.<br />
2. Supporting vulnerable communities<br />
Social value programmes support the development of<br />
people in our communities, for example through careers and<br />
employment advice for young people and those out of work.<br />
Health, wellbeing and community cohesion initiatives in our<br />
communities were supported with £12,000 worth of charitable<br />
contributions in the form of donations and volunteering hours.<br />
The design and location of our developments can also aid<br />
lifestyles that keep people healthy and well. Throughout<br />
the year the Keepmoat Design Guide has been refreshed to<br />
reinforce our sustainable communities focus and is aligned<br />
to the principles of both the National Design Guide and<br />
Building for a Healthy Life 1 to enhance the sustainability and<br />
attractiveness of our developments.<br />
Of the homes we completed in the period, 58% were on<br />
developments with waterbodies such as ponds, swales and rain<br />
gardens – creating green and blue spaces that prevent flooding<br />
while also benefiting wellbeing and nature – combining<br />
community, climate and nature benefits these features<br />
contributed to £1.03m in social value. 2<br />
HOMES SOLD ON DEVELOPMENTS<br />
WITH ACCESS TO…<br />
Quality cycle networks 63%<br />
Public transport nodes (e.g. bus stop) within 500m 94%<br />
Public transport nodes (e.g. bus stop) within 1km 98%<br />
“The design and location of our<br />
developments can also aid lifestyles<br />
that keep people healthy and well.”<br />
1<br />
Building for a Healthy Life is the new name for the Building for Life 12 development design standard.<br />
Available at https://www.designforhomes.org/project/building-for-life/ [accessed 26.1.2022]<br />
2<br />
Using a natural capital accounting methodology – the B£ST tool, CIRIA.
QUALITY EDUCATION <strong>Sustainability</strong> <strong>Report</strong> 23<br />
Training the<br />
next generation<br />
We’re providing education and development opportunities for our people and<br />
communities to address the construction sector skills shortage.<br />
6%<br />
EMPLOYEES ON ‘EARN AND<br />
LEARN’ SCHEMES<br />
Our goals<br />
• To provide youth & community education<br />
and training initiatives in all Divisions<br />
• To maintain 5% Club status by increasing<br />
‘earn and learn’ training opportunities<br />
• To create a sustainability competency<br />
programme for employees and<br />
sub-contractors.<br />
Our progress in FY21<br />
• We are proud to be a Cornerstone<br />
Employer in South Yorkshire,<br />
Humber & East Riding,<br />
Liverpool and Lancashire<br />
• 7 case studies published online<br />
• Joined the Supply Chain <strong>Sustainability</strong><br />
School as a Partner to aid capacity<br />
building on sustainability in our workforce<br />
and supply chain<br />
With an ageing construction workforce in the UK, attracting,<br />
developing and retaining employees with the right expertise<br />
is key. While housing is likely to face skills challenges over the<br />
coming years, for example, to install low carbon technologies<br />
in both new and old homes, it is an exciting time for a new<br />
generation to join the housing industry and learn new skills.<br />
Supporting community education<br />
Keepmoat is a Cornerstone Employer in South Yorkshire,<br />
Humber & East Riding, Liverpool and Lancashire, meaning<br />
we work with the Careers and Enterprise Company to provide<br />
career guidance and work experience for young people to help<br />
them in future choices.<br />
In a normal year, we work closely with local schools and<br />
colleges around our developments, helping to deliver face to<br />
face construction skills sessions, work experience and careers<br />
support. COVID-19 has meant much of this support has moved<br />
online. Despite the challenges, during FY21 we dedicated over<br />
240 employee hours to school visits on topics from careers<br />
information to household budgeting.<br />
We have provided many opportunities for people, young<br />
people in particular, to gain qualifications, placing 41<br />
apprentices directly or through our supply chain and providing<br />
56 accredited training weeks towards other workplace<br />
qualifications.<br />
Supporting our skills development<br />
During the year we achieved Gold status with The 5%<br />
Club, for greater than 5% of our employees being<br />
trainees, graduates or apprentices in ‘earn and learn’<br />
positions across all functions within the business or<br />
through our sub-contractors and partners. In fact, 6%<br />
of our employees are in such positions. This approach<br />
supports our skilled teams, addresses skills shortages<br />
and opens this very important sector as a great career<br />
opportunity to many.<br />
Among them are the 10 participants of the first cohort<br />
of our new Land and Partnerships Graduate Scheme<br />
programme, which is underway. We have now turned<br />
our attention to a Commercial Graduate Scheme with its<br />
first intake during FY22.<br />
We are also committed to the personal and professional<br />
development of our existing employees, which you may<br />
read more about on page 24.<br />
Chantelle<br />
6% of employees<br />
on ‘earn and<br />
learn’ schemes<br />
From leaving school Chantelle had a drive and passion<br />
to work in the construction industry. However, her early<br />
attempts to gain an apprenticeship with a contractor<br />
proved elusive until she applied to Keepmoat. Chantelle<br />
was successful in securing an Assistant Site Manager<br />
role in 2017 and is now successfully working alongside<br />
the site manager at a Keepmoat site in Malton North<br />
Yorkshire where she acts as a role model for other young<br />
women looking to enter into the industry.<br />
Chantelle visits local primary and secondary schools<br />
where she uses her experiences to encourage young<br />
women to pursue their goals and ambitions regardless<br />
of the challenges they may face. Chantelle is also one<br />
of small number of female site managers at Keepmoat<br />
working to change the views and stereotypes within<br />
the sector.<br />
Supporting our supply chain<br />
During FY21 we made the most of our apprenticeship<br />
levy, transferring unused funds to our supply chain to<br />
maximise benefits.<br />
Phoebe<br />
One example is where we shared our Levy pot with<br />
Chandos Civil Engineering to enable them to recruit a<br />
new apprentice quantity surveyor. Phoebe wished to<br />
pursue a career in Quantity Surveying, but realised that<br />
she was better suited to an apprenticeship degree.<br />
She had already secured a role as a Junior Surveyor at<br />
Chandos Civil Engineering in 2018. However, in order<br />
to qualify for a place on an apprenticeship degree,<br />
she needed sponsorship from a company with a Levy<br />
Scheme. By sharing our Levy with Chandos, we were<br />
able to give Phoebe the opportunity to access higher<br />
education.<br />
Chandos said: “Phoebe has a promising career<br />
ahead of her and we are grateful to Keepmoat<br />
Homes for their investment in her future and also<br />
their continuous support for the future of the<br />
construction industry.”
DECENT WORK AND ECONOMIC GROWTH <strong>Sustainability</strong> <strong>Report</strong> 25<br />
Delivering safe<br />
and sustainble growth<br />
We’re assuring the safety and sustainability of our sites, operations and supply chains,<br />
and increasing the proportion of people from local communities in our workforce.<br />
93%<br />
SUPPLY CHAIN SPEND<br />
SURVEYED FOR MODERN<br />
SLAVERY RISK<br />
Our goals<br />
• To provide for the safety and wellbeing of<br />
all workers<br />
• To focus on a local workforce that reflects<br />
our communities<br />
• To manage the integration of minimum<br />
sustainability criteria into all procurement<br />
exercises.<br />
Our progress in FY21<br />
• RIDDOR accident injury incidence rate<br />
static at 539 accidents per 100,000<br />
(2020: 528) employed, a nominal increase<br />
• 77% of colleagues live within a 30 miles<br />
of their workplace<br />
• Supplier sustainability maturity matrix and<br />
risk heatmap developed<br />
• 93% of supply chain spend assessed for<br />
modern slavery risk.<br />
Developing high-performing,<br />
engaged teams<br />
In keeping with our people-first approach and 5-Star builder<br />
status, we have implemented a series of internal training<br />
programmes, designed to develop High-Performing Teams<br />
across our business.<br />
To date our programme has covered three areas:<br />
• Upskilling our c.400 strong team of customer care, sales<br />
and construction employees, by focussing on the improved<br />
delivery of our Hallmark Standard customer service and<br />
technical skills<br />
• Having secured CITB grant funding we have delivered<br />
our new Leading Change - Adding Value development<br />
programme aimed at improving our people managers’<br />
leadership and change management skills.<br />
This was complemented by our first Future Leaders Programme<br />
completed in FY21. The year-long programme was aimed<br />
at our high performers with the potential to reach a senior<br />
leadership role, focused on leadership style and skills, coaching<br />
and mentoring.<br />
To ensure continual improvement, our Professional<br />
Development Review (PDR) conversations and supporting<br />
tools help identify performance and development needs of<br />
colleagues to managers and our Learning and Development<br />
team, who offer leadership and development programmes<br />
supported by masterclasses and mentoring.<br />
Our 2020 biennial Peoples’<br />
Voice employee engagement<br />
survey results showed an<br />
engagement score of 86%<br />
(2018: 81%).<br />
Raising the standard in Health and Safety<br />
Our integrated management system is triple certified to:<br />
• ISO 9001:2015 (Quality Management)<br />
• ISO14001:2015 (Environmental Management)<br />
• ISO 45001:2018 (Safety Management)<br />
All regional directors undertake monthly inspections to<br />
check environmental, health and safety (EHS) standards.<br />
Our Group EHS and Group Production Directors undertake<br />
inspections in all regions throughout the year with a random<br />
number of unannounced spot checks on environment,<br />
health and safety issues.<br />
Contracts Manager inspections increased from 608 to<br />
882 and Site Manager inspections from 2634 to 3672,<br />
demonstrating our commitment to managing risk and<br />
compliance.<br />
Construction compliance audits by EHS Business Partners<br />
doubled from 32 to 66 and high risk audits increased from<br />
17 to 132. Both yielded high levels of compliance with<br />
company standards and legal requirements.<br />
People are at the centre of our health and safety approach,<br />
and an environment, health and safety training matrix covers<br />
all employee roles to determine environmental, health<br />
and safety training requirements corresponding with their<br />
responsibilities. We have a process in place for surveilling the<br />
health of our safety-critical roles and all employees receive<br />
regular advice on how to live healthy lifestyles through<br />
KeepWell employee support programme.<br />
All but our smallest Tier 1 sub-contractors must hold the<br />
CHAS Advanced accreditation ensuring adherence to the<br />
same exacting safety, environment, diversity and modern<br />
slavery standards as Keepmoat, with 94% of all sub-contract<br />
spend being with accredited organisations.<br />
Unannounced site visits by the HSE in the year generated<br />
no improvement, prohibition notices, prosecutions, or<br />
intervention fees. Our systems, controls and performance<br />
were awarded the <strong>2021</strong> Gold Award by the Royal Society<br />
for the Prevention of Accidents (RoSPA).<br />
Modern slavery vigilance<br />
Carbon intensity<br />
Our Modern Slavery Statement is published in compliance<br />
with the Modern Slavery Act. In addition to the CHAS<br />
2.00 Advanced accreditation for sub-contractors, a survey was<br />
distributed to our materials supply chain. Overall, 93% of<br />
1.5 our supply chain has been assessed<br />
1.61<br />
for modern slavery risks<br />
1.52<br />
and mitigation<br />
1.36<br />
processes.<br />
1.36<br />
We used 18th October,<br />
1.00 Anti-Slavery Day as an opportunity to remind 1.19 our 1.12<br />
employees of the signs to look out for in our Monday<br />
0.5 Matters employee newsletter.<br />
0.00 Diversity<br />
Valuing diversity FY19forms part of FY20 our Values and Behaviour FY21<br />
framework at Keepmoat, and is also part of our company<br />
Scope 1,2 (location-based) and scope 3 business travel<br />
People Strategy. Our Equal Opportunities Policy sets out<br />
in private vehicles per home completed (tCO<br />
clear expectations that we will provide and promote 2<br />
e)<br />
equal<br />
opportunities<br />
Scope 1,2 (market-based)<br />
in employment.<br />
and<br />
We<br />
scope<br />
aim to<br />
3<br />
attract<br />
business<br />
people<br />
travel<br />
in private vehicles per home completed (tCO<br />
through a variety of recruitment methods to provide 2<br />
e)<br />
a rich<br />
and diverse mix of candidates. This is in recognition of the<br />
benefits that a diverse workforce has in serving the diversity<br />
of the communities in which we work. Our gender pay gap<br />
is reported publicly on our website.<br />
Employee gender split (no.)<br />
1200<br />
1000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
33%<br />
67%<br />
FY20<br />
33%<br />
67%<br />
FY21<br />
Female<br />
Male
INDUSTRY, INNOVATION AND INFRASTRUCTURE <strong>Sustainability</strong> <strong>Report</strong> 27<br />
Designing a new<br />
blueprint for housing<br />
Parklands zero carbon homes<br />
We’re delivering increasingly sustainable homes that are affordable, adaptable,<br />
energy-efficient and designed for modern life.<br />
Sustainable homes<br />
12%<br />
OF HOMES COMPLETED USING<br />
MODERN METHODS OF<br />
CONSTRUCTION<br />
Our goals<br />
• To create sustainable homes (affordable,<br />
efficient, low carbon and adaptable).<br />
Our progress in FY21<br />
• Commenced trial of battery assisted<br />
generators<br />
• Average home kWh/m 2 of 88.6<br />
• 12% of homes completed using modern<br />
methods of construction.<br />
Our approach to the design of homes is to focus on<br />
affordability, comfort and increasingly lower carbon homes<br />
located in sustainable communities. We are updating our<br />
standard designs and trialling technologies to ensure the homes<br />
we build are increasingly energy efficient, lower carbon and<br />
affordable – an issue of increasing importance after a 12% rise<br />
to the energy price cap in October <strong>2021</strong>. 3<br />
We’re outlining a detailed roadmap for the development of<br />
our new Future Homes designs to deliver flexible living spaces,<br />
fabric performance and overheating prevention, with the aim<br />
of reducing energy consumption. Our roadmap will integrate<br />
renewable energy solutions, smarter energy controls and<br />
storage solutions.<br />
FUTURE HOMES STANDARD EXPECTED MILESTONES<br />
Part 1<br />
Timescale<br />
Carbon<br />
reduction<br />
Strategy and technology<br />
<strong>2021</strong>-2023 31% Space heating reduced<br />
by increased thermal<br />
performance, reduced<br />
air leakage, efficient<br />
ventilation. Solar PV to<br />
offset carbon in use.<br />
Part 2<br />
Timescale<br />
Carbon<br />
reduction<br />
2025 at least<br />
75%<br />
Strategy and technology<br />
Removal of gas boilers<br />
in place of all electric<br />
renewable technologies<br />
and energy generation.<br />
3<br />
Energy prices and their effect on households (ONS, February 2022)<br />
To address our broader sustainability priorities, we’ve<br />
focused on increased standardisation and sharing our digital<br />
designs with our supply chain to enhance the use of offsite<br />
pre-manufactured value and on-site assembly. This will<br />
support waste reduction and improve quality in delivery.<br />
This approach resulted in:<br />
• Standard house types making up 78% of homes<br />
constructed in the year<br />
• Modern methods of construction (timber frame and<br />
full volumetric solutions) accounted for 12% of homes<br />
completed in the year<br />
• The specification of homes for very low water consumption<br />
of 83.7 litres per person per day (LPPPD)<br />
• All new developments from FY21 benefit of 1 Gigabit Day<br />
One connectivity, access to a choice of Wi-Fi providers<br />
and access to bespoke lower cost options for low-income<br />
households.<br />
Low cost energy<br />
Our partnership with Manchester City Council and Heylo<br />
Housing in West Gorton has introduced the latest smart<br />
home technology in five trial homes to evaluate the impact<br />
of emerging technologies running costs, comfort and energy<br />
consumption as a result of interaction with the grid.<br />
The brick homes have an enhanced fabric performance with<br />
rigid insulation. They also have dual aspect solar PV panels,<br />
linked to battery storage to generate and store energy. This is<br />
managed using smart technology from Wondrwall.<br />
The home is provided with a ‘brain’ which senses movement,<br />
humidity, temperature, light and sound to optimize energy<br />
consumption around the home. It also enables the home<br />
to export surplus energy from the battery back to the grid<br />
and import energy when tariffs are low, creating both an<br />
income for the customer and the opportunity to buy and store<br />
affordable electricity.<br />
Wondrwall has now completed 12 months of post-occupancy<br />
monitoring, finding a 1.8 tonnes of CO 2<br />
reduction annually per<br />
home, with energy bill savings of up to £559 per year, 74%, in<br />
its report dated October <strong>2021</strong>. Energy demand was reduced in<br />
all homes to cost and environmental benefit.<br />
Gedling Access Road (GAR)<br />
As part of our Chase Farm development on the former<br />
Gedling Colliery we have contributed £17m (42%) to<br />
the construction of the Gedling Access Road. While<br />
new roads are not traditionally considered a sustainable<br />
feature of a development, the bypass addresses a<br />
number of long-standing transport issues for the village,<br />
with the A6211 currently seeing 15,000 vehicles a day<br />
(one of the busiest stretches of road in the region).<br />
Following completion in 2022 the existing road will be<br />
retained, providing a quieter route for local traffic, buses,<br />
cyclists and pedestrians.<br />
Overall, the construction provides significant carbon<br />
reduction from reduced congestion, reduced travel<br />
time and local disruption from traffic, with improved air<br />
quality for local residents.<br />
To compensate for impacts on biodiversity and deliver a<br />
net gain, there will be a 40% increase in woodland and<br />
the adjacent country park will increase in size with new<br />
non-motorised access points from the bypass and the<br />
Chase Farm development.
RESPONSIBLE CONSUMPTION AND PRODUCTION <strong>Sustainability</strong> <strong>Report</strong> 29<br />
Working towards<br />
zero net waste<br />
We aim to achieve zero net waste construction by minimising waste, embedding the<br />
circular economy and continually improving our management systems.<br />
20%<br />
WASTE INTENSITY REDUCTION<br />
PER HOME<br />
Our goals<br />
• To report annually on sustainability<br />
performance<br />
• To achieve zero net waste through waste<br />
minimisation and buying recycled by 2024<br />
• To certify all management systems to ISO<br />
14001, ISO 9001 & ISO 45001.<br />
Our progress in FY21<br />
• 11% waste reduction per completed<br />
square meter over the last 2 years<br />
• Materials Management Plans mandated<br />
for all new developments<br />
• Standards and processes in place<br />
to ensure use and quality of recycled<br />
aggregates.<br />
Waste is a major impact of the whole construction sector<br />
with construction, excavation and demolition waste<br />
accounting for 62% of all UK waste in 2018. 4 Housebuilding<br />
is no exception to this and consumes large quantities of<br />
building materials which in turn require energy, water and<br />
labour to produce and transport.<br />
Ultimately, we aim to make Keepmoat a zero-net waste<br />
business by 2024 (closing the loop), by prioritising<br />
sustainable materials and products and minimising the waste<br />
that arises from the construction process.<br />
Waste<br />
During the year we diverted 98% of construction waste<br />
from landfill (2020: 98%) and have started to report our<br />
waste intensity on a per 100m 2 legally completed area basis<br />
for improved industry comparability, reducing waste to<br />
7.33t per 100m 2 . 5 Absolute construction waste rose 30%<br />
between FY20 and FY21 due to abnormally low activity<br />
in FY20 caused by COVID-19 restrictions. However, In<br />
comparison with FY19, a year of more typical production<br />
output, absolute waste saw a 11% reduction.<br />
CONSTRUCTION WASTE<br />
FY19 FY20 FY21<br />
Construction waste NA NA 7.33<br />
100m 2<br />
intensity (tonnes per<br />
Construction waste<br />
intensity (per completed<br />
home)<br />
Construction waste<br />
(tonnes)<br />
Diversion from<br />
landfill rate (%)<br />
6.70 7.34 5.99<br />
27,044 18,064 23,703<br />
97 98 98<br />
Continual communication over waste is key to increasing<br />
levels of segregation and avoiding unnecessary waste. We<br />
drive this through quarterly benchmarking of development<br />
waste volumes and costs, supported by bulletins, factsheets<br />
and toolbox talks to site teams and employees.<br />
Designing out waste<br />
Working together with our suppliers and subcontractors, we<br />
are focused on reducing and preventing avoidable waste by<br />
implementing digital designs across our supply chain.<br />
By sharing 3D models, we are able to work with our supply<br />
chain to maximise efficiency and reduce waste, as part of<br />
our drive to increase the pre-manufacture value content of<br />
our homes, as we move towards on-site assembly.<br />
Our ultimate goal is a ‘no-cuts, no drills’ approach to<br />
increase productivity while minimising wastage. This requires<br />
greater focus to accurate detailing in the design process.<br />
Key areas include:<br />
• De-cluttering homes to remove difficult details e.g. nibs<br />
• Calculating all dimensions including window openings to<br />
brick dimensions<br />
• Designing storey heights to work to full courses – to<br />
avoid cuts<br />
• Pre-cutting bricks to gable cut ups<br />
• Developing designs which support ‘design for<br />
manufacture’ principles<br />
• Incorporating more off-site manufactured / prefinished<br />
components.<br />
An example of this is our use of Staircraft’s intermediate<br />
floors. These come pre-cut; even the notches for the<br />
straps are pre-cut, together with holes for first fix services,<br />
resulting in almost no waste.<br />
Reusing soils<br />
Materials Management Plans (MMPs) allow us to utilise<br />
excavated made ground and natural soils without them<br />
being legally classed as ‘waste’ and requiring off-site<br />
disposal. MMPs can be quickly and easily amended<br />
throughout the project to reflect changes. While the use<br />
of MMPs is not a legal requirement, if one is not used then<br />
a bespoke environmental permit or appropriate waste<br />
exemption must be used to legally reuse soils and made<br />
ground.<br />
We have committed to the use of MMPs on all new<br />
developments. This helps us avoid thousands of tonnes of<br />
waste that would otherwise be generated from site levelling,<br />
excavation for foundations and roads, and utility service<br />
trenches. Instead, we sustainably reuse this material in<br />
construction - helping to avoid the cost and environmental<br />
impact of off-site waste disposal, and the need to import<br />
clean virgin soils and stone to site.<br />
Through the use of an MMP at our Timeless development<br />
in Leeds, we avoided 125,000 tonnes of soils and made<br />
ground generated as part of construction from being<br />
discarded as waste. We have subsequently reused these<br />
materials as engineered fill within the site construction,<br />
avoiding over 6,000 lorry movements from the site,<br />
minimising off-site disposal costs and eliminating the need<br />
to import replacement fill materials.<br />
4<br />
DEFRA (July <strong>2021</strong>) UK Statistics on Waste<br />
5<br />
Per 100m 2 metric recommended by the NextGeneration<br />
<strong>Sustainability</strong> Benchmark<br />
6<br />
Floor area intensity ratio only available only from FY21. No data<br />
available for MCi in FY19 and FY20
CLIMATE ACTION <strong>Sustainability</strong> <strong>Report</strong> 31<br />
Working greener<br />
and cleaner<br />
We’re taking action to reduce absolute carbon emissions from our operations, our<br />
supply chain and the homes we build, and adapt our operations and approach to<br />
tackle a changing climate.<br />
20%<br />
OPERATIONAL CARBON<br />
REDUCTION PER HOME<br />
CONSTRUCTED SINCE FY19*<br />
Our goals<br />
• To bring climate change resilience<br />
in development design, throughout<br />
construction and lifecycle<br />
• To align our business carbon reduction<br />
aligned to limiting global warming to well<br />
below 2 o C.<br />
Our progress in FY21<br />
• Overheating mitigation techniques<br />
considered as part of an external report<br />
and internal analysis of development<br />
• Committed to set science-based targets<br />
via the SBTi and joined the Race to Zero<br />
• 19% absolute reduction in Scope 1 & 2<br />
market-based emissions between FY19<br />
and FY21<br />
Our commitments to net zero and 1.5 O C<br />
During the year we made a public commitment via the<br />
Science Based Targets initiative (SBTi) to set science-based<br />
carbon emission targets aligned to the need to restrict<br />
global temperature increases to 1.5 O C. This means we will<br />
be setting revised carbon emission targets in FY22. We also<br />
signed up to the Race to Zero committing to be a net zero<br />
business before 2050.<br />
Performance<br />
During the year our scope 1 & 2 carbon intensity (market<br />
based) was 1.12 tonnes per home completed (1.37 tonnes<br />
per 100m 2 , an 18% reduction compared to FY19). Absolute<br />
scope 1 and 2 emissions (market-based) increased 20%<br />
compared to FY20, reflecting the post-COVID change in<br />
productivity and abnormally low construction activity in<br />
FY20 due to lockdowns at the pandemic’s height. You can<br />
see further figures on our operational carbon emissions in<br />
the appendix of this report.<br />
Carbon intensity<br />
2.00<br />
1.5<br />
1.00<br />
0.5<br />
0.00<br />
1.36 1.36<br />
FY19<br />
1.61 1.52<br />
FY20<br />
1.19<br />
FY21<br />
1.12<br />
Scope 1,2 (location-based) and scope 3 business travel<br />
in private vehicles per home completed (tCO 2<br />
e)<br />
Scope 1,2 (market-based) and scope 3 business travel<br />
in private vehicles per home completed (tCO 2<br />
e)<br />
*Operational carbon includes scope 1, scope 2 (market-based) and scope<br />
3 business travel in privately owned vehicles<br />
Our wider carbon footprint<br />
We have started to analyse our scope 3 footprint, meaning<br />
those indirect emissions over which we do not have full<br />
control. The greatest contributions to our total carbon<br />
footprint are overwhelmingly purchased goods and services,<br />
and the use of the homes we sell over their lifetimes.<br />
During the year we worked closely with our largest supplier<br />
of building materials by spend for greater footprinting<br />
accuracy based on our buying decisions and the credentials<br />
of individual products with less reliance on use of industry<br />
averages for calculations.<br />
Reducing diesel use, natural gas and<br />
increasing renewable electricity<br />
Diesel use in construction equipment is a major contributor<br />
to our direct carbon footprint, and with the ending of the<br />
preferential ‘red diesel’ duty rate in FY22 its use will also<br />
increase costs. We have trialled a battery assisted generator<br />
on our Doncaster Lakeside development showing significant<br />
diesel reduction potential of up to 90%, compared to our<br />
standard generators, when combined with energy efficiency<br />
improvements to site operations.<br />
During the year we moved all remaining electricity<br />
consumption over to renewable tariffs. We are now<br />
reporting 10.73 tCO 2<br />
e from non-renewable tariff electricity<br />
for the early part of the year on a market-based method,<br />
and anticipate this figure to be zero in our FY22 reporting.<br />
Sustainable travel<br />
Our company car scheme was updated for improved access<br />
to EV and hybrid options, doubling the number of these<br />
vehicles available to staff, and installing EV charge points at<br />
offices. We reduced our emission cap for company cars from<br />
185g/km to 150g/km, with an annual review process for<br />
progressive reductions. Our Agile Working Policy brought<br />
UNDERSTANDING CARBON SCOPES<br />
Scope Description % of total<br />
carbon footprint<br />
Scope 1<br />
Direct emissions including use of gas oil<br />
diesel and natural gas.<br />
tCO 2<br />
e<br />
1.299% 3,742<br />
Scope 2 Emissions from purchased electricity (market-based) 0.004% 11<br />
Scope 3 7<br />
Indirect emissions mainly (but not only)<br />
from the materials and services we purchase and<br />
the use of homes we sell over their lifetimes.<br />
7<br />
*NB Scope 3 emissions are still under review with significant uncertainty associated with:<br />
in at the beginning of the pandemic continues, reducing<br />
employee commuting by an estimated 8.6 million miles<br />
and business travel by an additional 950,000 miles with<br />
wellbeing and productivity benefits.<br />
“I love that the Agile Working policy allows you to make<br />
your own choices and do what works best for you (plus<br />
reducing my monthly emissions is always a good thing).”<br />
Ramona, Keepmoat Glasgow<br />
Specifying low embodied carbon products<br />
Our expectations of a sustainable supply chain are outlined<br />
in our Sustainable Procurement Policy, and we joined the<br />
Supply Chain <strong>Sustainability</strong> School as a partner during the<br />
year to enhance supply chain engagement.<br />
During FY21, we ordered 4.3 million low carbon Marshalls<br />
bricks. These are 50% lower embodied carbon than a<br />
traditionally fired clay brick and are manufactured with a low<br />
cement content.<br />
We also completed a successful trial of warm mix<br />
temperature asphalt, which has 10% less embodied carbon<br />
when compared to the traditional hot mix product, with no<br />
compromise to cost or performance.<br />
Visit //keepmoat.com/corporate/sustainability<br />
for more detail on our carbon reduction plans.<br />
98.697% 284,380<br />
• the use of spend based methods to calculate emissions from purchased goods and services where specific material and service data is currently<br />
unavailable<br />
• changes to the scale and pace of decarbonisation of electricity and gas networks influencing the lifetime emissions of homes constructed
LIFE ON LAND <strong>Sustainability</strong> <strong>Report</strong> 33<br />
Creating a net<br />
positive future<br />
We’re following a Net Positive strategy that protects and enhances our environment<br />
across the lifecycle of our operations, homes and developments.<br />
Embedding and enhancing nature<br />
A great example of how we’re embedding features<br />
that benefit wildlife in our developments, and helping<br />
to address the ecological emergency, is at Hartcliffe<br />
Campus, in Bristol.<br />
20%<br />
REDUCTION IN OUR<br />
ENVIRONMENTAL INCIDENT<br />
RATE<br />
Our goals<br />
• To deliver a net gain in biodiversity for all<br />
Keepmoat Homes developments by 2023<br />
• To reduce significant environmental<br />
incidents and increase environmental<br />
hazards observed<br />
• To develop green spaces which support<br />
communities and promote biodiversity.<br />
Our progress in FY21<br />
• Delivered biodiversity net gain training to<br />
Land & Partnership, and Technical teams<br />
• 3 biodiversity case studies produced<br />
• 20% reduction in our environmental<br />
incident rate.<br />
We appreciate that our health, wellbeing and prosperity are<br />
closely linked to a healthy environment and that the natural<br />
world provides the resources and eco system services we<br />
need to survive.<br />
That’s why we’re already working to understand and<br />
minimise the impact our activities, enhance the environment<br />
and benefit local communities. Over half of our homes<br />
completed in the period were on developments with an<br />
ecological enhancement plan, and we are drawing upon<br />
the advice of Local Wildlife Trusts via their Wildscapes<br />
consultancy to develop our biodiversity strategy.<br />
During the year we audited our timber materials suppliers to<br />
assess compliance with our policy to procure only FSC and<br />
PEFC certified timber. We found 100% of our suppliers had<br />
FSC or PEFC chain of custody certification with 99.92% of<br />
timber being FSC or PEFC certified.<br />
100%<br />
99.92%<br />
58%<br />
52%<br />
Timber materials suppliers with FSC/<br />
FSC Chain of Custody<br />
Timber supplied with FSC/PEFC<br />
certification<br />
Sales completed on developments<br />
with above-ground landscape-led<br />
sustainable drainage schemes<br />
Sales completed on developments<br />
with ecological enhancement plans<br />
Protecting the environment during<br />
construction<br />
During construction, we work to continually improve our<br />
protection of the natural environment in two ways:<br />
• Embedding enhanced environmental standards<br />
into operational processes and sub contractor trade<br />
specifications, to ensure we and our contractors<br />
consistently implement environmental protection.<br />
Biodiversity net gain<br />
The future requirement to deliver Biodiversity Net Gain<br />
(BNG) upon our developments will ensure we approach<br />
design with a view to leaving the natural environment in<br />
a measurably better state than beforehand. The guiding<br />
BNG principles and mitigation hierarchy (Avoid-Minimise-<br />
Compensate) will help us achieve the best outcomes for<br />
biodiversity and nature, contributing to local, regional, and<br />
national priorities. Valuable habitats will be retained and/<br />
or enhanced with ‘trading rules’ securing appropriate offsite<br />
compensation when the minimum 10% gain cannot<br />
be achieved on-site. The guiding principles will also create<br />
a long-term legacy through the requirement to manage,<br />
monitor and maintain habitats for 30 years.<br />
With the above in mind, we are developing our processes to<br />
achieve BNG, working with the Wildlife Trusts and ecological<br />
consultancies. We have found that early consideration of<br />
ecology and biodiversity in design is essential, ensuring our<br />
plans retain high value habitats, specify native species and<br />
prioritise the use of species-rich wildflower grasslands in<br />
public open spaces. We are fine-tuning our approach to<br />
include ecological enhancement plans and to target the<br />
successful long-term management of retained or newly<br />
created habitats.<br />
Developed in collaboration with housing provider<br />
LiveWest, this site forms a key part of the regeneration<br />
of South Bristol, providing much needed high quality<br />
affordable homes.<br />
To benefit nature, the development includes a variety<br />
of ecological initiatives, including:<br />
• A series of four sustainable drainage ponds<br />
creating seasonally wet grassland, including the<br />
planting of cowslips, yellow flag iris, ragged robin<br />
and purple loosestrife<br />
• 1,400 square meters of green roofs covering three<br />
apartment blocks. The roofs will contain a mosaic<br />
of habitats including kidney vetch to support the<br />
resident community of small blue butterflies (our<br />
smallest UK resident butterfly with a wing span<br />
that can be a little as 16mm)<br />
• Creation of a wildlife corridor, including species<br />
rich wildflower grassland and a central wildflower<br />
“pollinator park”, helping residents connect with<br />
nature<br />
• Planting of new hedgerows and 450 new trees<br />
across the development, providing habitats for<br />
wildlife while also providing shade and cooling in<br />
hot summers<br />
• Better habitats for bats, birds and reptiles and<br />
insects. With a minimum of 30 bat boxes, 70 bird<br />
boxes, 3 reptile hibernacula (hibernation areas) and<br />
10 solitary bee bricks being constructed on homes<br />
and wildlife areas.<br />
• Training operational teams on key environmental risks,<br />
such as the increased risk of surface water pollution<br />
associated with our changing climate.
PARTNERS, AWARDS & ACCREDITATIONS <strong>Sustainability</strong> <strong>Report</strong> 35<br />
Partnering with excellence<br />
To support our sustainability ambitions, we work in partnership with a number<br />
of organisations, either through membership certification or accreditation.<br />
SOCIAL VALUE UK<br />
Our Social Value Management<br />
Certificate reflects our work<br />
with Social Value UK to<br />
manage and maximise the<br />
level of social value delivered<br />
through our activities.<br />
RACE TO ZERO<br />
Members of this global<br />
campaign to achieve net zero<br />
carbon by 2050.<br />
SUPPLY CHAIN<br />
SUSTAINABILITY<br />
SCHOOL<br />
Partners and Gold level<br />
members of this industry<br />
collaboration to enable a<br />
sustainable built environment.<br />
FUTURE HOMES HUB<br />
The Future Homes Hub<br />
supports the implementation<br />
of the Future Homes Delivery<br />
Plan. We sit on the Future<br />
Homes Oversight Group.<br />
5% CLUB<br />
As Gold members of the Club,<br />
at least 5% of our workforce<br />
are in earn and learn positions.<br />
ISO CERTIFICATIONS<br />
All our operations work in<br />
compliance with management<br />
systems that are certified to:<br />
• ISO 9001 (Quality<br />
Management)<br />
• ISO 14001 (Environmental<br />
Management)<br />
• ISO 45001 (Health and<br />
Safety Management).<br />
INVESTORS IN PEOPLE<br />
Recognition for our effective<br />
people centric culture and<br />
the positive impact that this<br />
has on our performance as a<br />
business.<br />
CORNERSTONE<br />
EMPLOYER<br />
We are a Cornerstone<br />
Employer in South Yorkshire,<br />
East Yorkshire and the<br />
Humber, Lancashire and<br />
Liverpool, providing career<br />
advice and work experience<br />
for young people<br />
RoSPA GOLD AWARD<br />
RoSPA Gold Award for<br />
2020/21. It demonstrates<br />
excellent health and safety<br />
management systems<br />
Industry recognition<br />
and awards achieved<br />
Keepmoat Homes’ sustainability programmes and achievements have been<br />
recognised by a number of national and regional awards bodies.<br />
DONCASTER BUSINESS<br />
AWARDS <strong>2021</strong><br />
Winner in the Excellence in<br />
Corporate Social Responsibility<br />
category.<br />
NATIONAL SOCIAL<br />
VALUE AWARDS <strong>2021</strong><br />
Winner in the Social Value in<br />
Development category: Hull<br />
Citywide Partnership.<br />
LABC AWARDS 2020<br />
Our Chase Farm development<br />
in partnership with Gedling<br />
Borough Council has been<br />
awarded the Best High-<br />
Volume<br />
Housing Development in the<br />
LABC East Midlands Building<br />
Excellence Awards 2020.<br />
NE BUSINESS AWARDS<br />
2020<br />
Our North East region won<br />
the ‘Heart of the Community’<br />
award at the Durham,<br />
Sunderland and South<br />
Tyneside 2020<br />
NE Business Awards.<br />
INSIDER RESIDENTIAL<br />
PROPERTY AWARDS<br />
<strong>2021</strong> (MIDLANDS)<br />
Our East Midlands region won<br />
‘Housebuilder of the year’ for<br />
high quality social housing<br />
delivery.<br />
ARMED FORCES<br />
CONVENANT<br />
BRONZE AWARD<br />
We support the Armed<br />
Forces, including existing or<br />
prospective employees.
PERFORMANCE DATA <strong>Sustainability</strong> <strong>Report</strong> 37<br />
Health & Safety Prohibition notices (no.) 0 0 0<br />
Our performance<br />
Business performance<br />
Indicator FY19 FY20 FY21<br />
Revenue (£m) £649.8m £406m £701.6m<br />
Adjusted Earnings Before Interest and Tax (Adjusted EBIT) (£m) £61.1m £11.4m £79.8<br />
NHBC <strong>Report</strong>able items per inspection 0.42 0.23 0.28<br />
HBF Star rating 4 5 5<br />
Homes Completed 4,035 2,460 3,915<br />
Homes Completed (operational control – inc. JVs) 8 3,957<br />
Completed floor area – 100m 2 (operational control – inc. JVs) 3,232m 2<br />
Average selling price £161,000 £165,000 £179,000<br />
Plots secured 25,024 24,000 24,000<br />
SDG 3 – Good health and wellbeing<br />
Indicator FY19 FY20 FY21<br />
Mental health first aiders in position (no.) 0 33 38<br />
Investors in People (rating) Developed Developed Developed<br />
SDG 4 – Quality education<br />
Indicator FY19 FY20 FY21<br />
Trainees, apprentices and graduates (%) 8% 8% 6%<br />
Employees on trainee, apprenticeship and graduate schemes (no.) 91 87 70<br />
Graduates recruited in FY (no.) 0 0 10<br />
Apprentices (direct and sub-contractor) recruited in FY (no.) 45 41<br />
SDG 8 – Decent work and economic growth<br />
Indicator FY19 FY20 FY21<br />
Employees - average during the period (no.) 1,141 1,145 1,070<br />
Injury Incident Rate (RIDDOR) (AIIR) 9 289 531 539<br />
Health & Safety prosecutions (no.) 0 0 0<br />
Health & Safety Improvement notices (no.) 0 0 0<br />
8<br />
Homes completed & 100m 2 (operational control ref) – these figures include all joint venture homes completed where Keepmoat has<br />
operational control. These are used to calculate intensity ratios in alignment with the boundaries of the business carbon footprint<br />
9<br />
Injury Incident Rate (RIDDOR) (AIIR) is calculated as follows: (RIDDOR reportable injuries per year / direct and subcontract employment)<br />
X 100,000<br />
Work-related fatalities, direct and indirect workforce (no.) 0 0 0<br />
Safety inspections (Site, Contract, Director) 4,036 4,096 5,239<br />
Male : Female employees (%) 67:33 67:33 67:33<br />
Male : Female senior managers (%) 79:21 78:22 79:21<br />
Male: Female Executive (%) 92:8 86:14<br />
Inclusion and Diversity (Fairness inclusion, respect) and mental health first<br />
aider training provided (hours)<br />
Modern Slavery risk assessments (%) supplier and sub-contractor spend 93%<br />
SDG 9 – Innovation, industry and infrastructure<br />
Indicator FY19 FY20 FY21<br />
Average EPC Score & SAP rating B (84) B (84) B (84)<br />
EPC B or above (%) 99% 99% 98%<br />
Average kWh/m 2 /yr (home regulated energy) 88.6 88.8 88.6<br />
Average KgCO 2<br />
e/m 2 /yr 15.6 15.6 15.5<br />
Average water use of homes (litres per person per day) 113 83.7 83.7<br />
Homes completed using Modern Method of Construction (MMC) (%) 10 15% 16% 12%<br />
SDG 11 – Sustainable cities and communities<br />
Indicator FY19 FY20 FY21<br />
Social value generated (£m) 11 £27.0m £18.5m £200.8m<br />
Homes on partnership developments (%) 12 90%<br />
Open Market Sales to first-time buyers (%) 13 70% 70% 79%<br />
Affordable homes (%) 14 35% 43% 39%<br />
Homes with good access to cycle networks (%) 63%<br />
Homes on developments
PERFORMANCE DATA <strong>Sustainability</strong> <strong>Report</strong> 39<br />
Our performance<br />
SDG 12 – Responsible consumption and production<br />
Indicator FY19 FY20 FY21<br />
Tonnes of construction waste per 100m 2 completed build area 7.33<br />
Tonnes of construction waste per completed home 6.70 7.34 5.99<br />
Diversion from landfill rate (%) 97% 98% 98%<br />
Total waste (tonnes) 27,213 18,302 23,803<br />
Total waste diverted from landfill (tonnes) 26,403 17,998 23,433<br />
Total waste to landfill (tonnes) 810 304 370<br />
Construction waste (tonnes) 27,044 18,064 23,703<br />
Construction waste diverted from landfill (tonnes) 26,235 17,761 23,335<br />
Construction waste to landfill (tonnes) 809 303 368<br />
SDG 13 – Climate action<br />
Indicator FY19 FY20 FY21<br />
SECR MWh (S1, S2 – location & S3 - business travel) 22,633 16,388 19,517<br />
SECR - Scope 1,2 and 3 (business travel) (CO 2<br />
e tonnes) 5,425 3,922 4,706<br />
SECR - Scope 1,2 and 3 (business travel) intensity<br />
(CO 2<br />
e tonnes per 100 sqm)<br />
SECR - Scope 1,2 and 3 (business travel) intensity<br />
(CO 2<br />
e tonnes per £100,000 TO)<br />
1.46<br />
0.83 0.97 0.67<br />
SECR - Scope 1,2 and 3 (business travel) intensity (CO 2<br />
e tonnes per home) 1.34 1.59 1.19<br />
Scope 1 carbon emissions (CO 2<br />
e tonnes) 4,339 3,052 3,742<br />
Red Diesel (CO 2<br />
e tonnes) 3,293 2,431 2,964<br />
LPG (CO 2<br />
e tonnes) 213 70 86<br />
Co. Car (CO 2<br />
e tonnes) 440 326 331<br />
Plot Gas (CO 2<br />
e tonnes) 352 206 284<br />
Office Gas (CO 2<br />
e tonnes) 41 19 73<br />
Fugitive Emissions (AC leaks) (CO 2<br />
e tonnes) NK NK 4.40<br />
Scope 2 carbon emissions (CO 2<br />
e tonnes)– Electricity (location-based) 320 285 294<br />
Scope 2 carbon emissions (CO 2<br />
e tonnes)– Electricity (market-based) 320 73 11<br />
Scope 3 carbon emissions (CO 2<br />
e tonnes) 306,624 205,189 284,380<br />
Scope 3 - Purchased Goods & Services (CO 2<br />
e tonnes) 16 178,503 130,181 179,074<br />
Scope 3 - Homes lifecycle (CO 2<br />
e tonnes) 106,763 62,236 87,277<br />
Scope 3 – Other (CO 2<br />
e tonnes) 21,358 12,772 18,029<br />
Full scope 1,2 and 3 intensity (CO 2<br />
e tonnes per 100m 2 ) 89<br />
Full scope 1,2 and 3 intensity (CO 2<br />
e tonnes per £’000 turnover) 48 51 41<br />
Full scope 1,2 and 3 intensity (CO 2<br />
e tonnes per home) 77 85 73<br />
SDG 15 – Life on land<br />
Indicator FY19 FY20 FY21<br />
Homes on brownfield land (%) 17 80% 70% 69%<br />
Environmental Incident Rate – Incidents per 100k headcount 18 217 327 260<br />
Environmental or other ESG breach cases resulting in prosecutions (no.) 0 0 0<br />
Timber materials suppliers with FSC or PEFC Chain of Custody certification<br />
(%)<br />
Timber purchased from building materials suppliers with FSC or PEFC<br />
certification (%)<br />
Homes on developments with ecological assessments conducted to ensure<br />
the prevention of harm (%)<br />
Homes on developments with specific ecological enhancement plans<br />
(Biodiversity Action Plans) (%)<br />
Homes on developments with nature led Sustainable Drainage features<br />
(pond, swales etc) (%)<br />
100% 100%<br />
99.91% 99.92%<br />
16<br />
Scope 3 – Purchased Goods and Services emission data is calculated using a hybrid methodology – using supplier specific carbon data where<br />
available and spend based industry average analysis where currently unavailable (e.g. with smaller suppliers). It is anticipated this data will<br />
be refined and re-analysed over the coming year<br />
17<br />
Brownfield land % is calculated in accordance with the definition within the NPPF Annex 2<br />
18<br />
Environmental Incident Rate is calculated as follows: (Incidents per year / direct and subcontract employment) X 100,000<br />
We welcome your feedback on this sustainability report.<br />
Please send your comments by visiting:<br />
https://www.keepmoat.com/contact-us<br />
100%<br />
52%<br />
58%
Head Office<br />
The Waterfront<br />
Lakeside Boulevard<br />
Doncaster<br />
South Yorkshire<br />
DN4 5PL<br />
01302 896800<br />
keepmoat.com