2005-8 Objectives and Targets
GOVERNANCE AND ACCOUNTABILITY
Objective 1.
- To undertake a review of the CSR risk management process within the Company.
Target
- Establish current relevance and review identification and mitigation procedures
Achieved 2005 and ongoing
Objective 2.
- To implement electronic voting for shareholders
Target
- Implement for 2005 AGM.
Achieved and ongoing
- Display voting results on Northern Rock website 2005
Achieved and ongoing
Objective 3.
- Evaluate and recommend CSR aspects of Northern Rock web content, including compliance, access and customer satisfaction issues.
Targets
- Review current CSR web content and amend to streamlined document
New web platform initiated 2006 forming basis for amendments to be produced. Ongoing
- Provide search facility on CSR website
2005 Community Summary Report produced as PDF, 2006 Full Community Report produced as PDF. Search facility to form part of review project on new platform.
- Visual compliance to be checked
A report from external specialists was commissioned during 2005.
An internal Working Group established 2006, short, medium and longer-term recommendations submitted.
- Access buttons to be developed for specific data
Basic Accessibility Guidelines page appears on Northern Rock site 2007.
Provision of customer feedback form to be included in site up date
New web platform initiated 2006 forming basis for amendments to be produced. Ongoing
BUSINESS ETHICS AND HUMAN RIGHTS
Objective 4.
- To produce an ethical policy statement for the Company.
Targets
- To produce a policy statement with a staff awareness programme to support the policy.
Group established 2005 to review current content against guidance issued by the Institute of Business Ethics.
Draft Copy of Reviewed Code of Ethics produced 2006 and submitted to The Institute of Business Ethics for review and comment. To be submitted to Main Board for review and approval 2007
- Integrate the ethos of the policy into day operational and policy issues
Ongoing.
Objective 5.
- Review the Company's stance on human rights issues and formalise outcome.
Target
- Expand the current human rights statement - continuing to include employee rights - with reference to specific codes and legislation. Statement to be formally approved and accepted by the Company.
Ongoing. Also forming part of revision to Code of Ethics (see above).
Objective 6
- To summarise the Company's investment and liquidity management policies for reporting purposes.
Target
- Produce a clear public statement of policy on investments and liquidity management so stakeholders are able to understand the scope, limits and restrictions on these activities.
Achieved 2005. Statement included under Business Ethics and Human Rights – Group Treasury.
MARKETPLACE
Objective 7.
- To run our business without taking unfair advantage of, or discriminating against, any individual or group of customers in designing, promoting, selling and servicing our products.
Target
- Apply principles of Treating Customers Fairly in normal business operations
Achieved and ongoing.
In accordance with the FSA's high level Principle for Business which requires a firm to Treat its Customer's Fairly, and as a matter of good business practice, NR has put in place appropriate polices, systems and procedures to ensure that the requirements of TCF are embedded within our business. This TCF initiative has improved the customer journey through the transparency of our products and improved marketing standards and after sales service.
Compliance with the Principles is monitored on an ongoing basis by our Group Compliance Function. Taken together with initiatives that were already in place such as our Savings Pledge and Base Rate Guarantee, we believe that in many respects this positions the Company well with regard to the FSA's TCF initiative.
Objective 8.
- To obtain feedback from customers in key business areas for use in operational reviews.
Targets
- Carry out surveys of selected customer groups and use findings in review processes
Achieved 2005 and ongoing
The Customer Research Programme was launched towards the end of 2005 and is operated by an external consultancy.
Establishing customers' attitudes as well as objectively measuring satisfaction levels with our products and services, the research extends across a range of product areas and customer types. Results from the research are presented to Management on a quarterly basis. Overall the results have been very positive and enlightening, helping us to target key areas for further improvement.
- Monitor positive and negative comment from complaint handling process and review operations to address issues
Achieved and ongoing.
Concurrent with the TCF initiative, we have renewed and reinvigorated our customer complaints handling. As part of this process Senior Management is provided with key performance data which shows why particular complaints have arisen. This “root cause” analysis enables Management to immediately identify particular complaint “hotspots” and take timely action to ensure that matters are improved. This approach has led to a reduction in the level of complaints and issues raised by our customers.
WORKPLACE
Objective 9.
- To continue to promote Diversity within the Company workplace.
Target
- To include diversity and equality in company-wide Personnel training courses and management workshops Q3
Achieved 2005. Included in “Leading a Team Training Courses.” Employees being promoted to Team Leader positions are required to undertake the course, which includes a test on diversity related issues.
Objective 10.
- Continue to ensure equal opportunity for all staff through good working practices
Targets
- Ongoing monitoring by Personnel/Equality Focus Groups.
Achieved and ongoing. Individual meetings are held with disabled staff to ensure they have all relevant support and adjustments in place.
- Ensure working practices are in line with best practice and maintained
Achieved and ongoing. Individual meetings are held with disabled staff to ensure they have all relevant support and adjustments in place.
Objective 11.
- Continue to develop employer/employee communication channels
Target
- On going commitment to using Infocus, notice boards, intranet and e-mail system to promote and highlight equality and diversity initiatives.
Achieved and ongoing. In addition, an Intranet based training package on diversity was delivered to all staff during 2006.
During 2006 extensive work has been conducted at our Head Office site on the internal development of “Northern Rock TV” which will be launched in 2007.
Objective 12.
- Develop and promote CSR and environmental awareness through staff job descriptions and appraisal systems.
Targets
- Include in all staff job description as issued
Achieved. Included in job descriptions reviewed during 2006.
- Make provision in annual appraisal system to recognise good/under performance in CSR areas.
Achieved. Included in 2006 appraisal exercise.
Objective 13.
- Continue to develop relationship with AMICUS
Target
- Appointment of full time on site AMICUS Representative during Q2
Achieved 2005. We will continue to develop relationships with AMICUS during 2007.
Objective 14.
- Promote internal opportunities for job promotion and employment vacancies within the Company.
Targets
- Produce internal vacancy advertising to all staff
Achieved by the production of a corporate job's bulletin to all staff.
- Open a job shop for staff wishing to explore opportunities for career promotion or change of role internally within the Company
Achieved 2005
- Produce successful appointments bulletin.
Achieved 2005. A monthly jobs gazette has been initiated highlighting new starters and promotions within the Company which includes grade level to ensure a transparent pay and grading system.
Objective 15.
- Increase employee engagement in the Company
Target
- In conjunction with Personnel Department, produce a confidential employee satisfaction/opinion survey on a minimum 2-yearly basis, link outcomes to CSR practices.
Review of various software programmes to achieve this undertaken in 2006.
Ongoing
Objective 16.
- To make CSR an integral part of training material for new starters and management
Target
- Understanding to be measured in line with course evaluation
Achieved 2005 and ongoing. Comprehension of the training module is undertaken during the training sessions and feedback from the course evaluation is monitored to ensure quality and consistency of the delivery.
In addition, during 2006, a computer based training package for staff induction has been developed, which includes CSR awareness. This is to be launched in 2007.
Objective 17.
- To produce Corporate Training Statistics
Target
- To collate, review and report training data
Achieved and ongoing. Statistics are produced on a monthly basis for training course subject areas, reviewed to Chief Executive Officer level and high level statistics supplied for external reporting i.e 25,000 training days supplied in 2006.
Objective 18.
- To continue to promote Health and Safety Awareness and compliance within the Company
Targets
- To undertake regular audits of Health and Safety procedures for internally and externally conducted functions
Ongoing. Audits progressed for external contractors. Internal audits commenced 2006.
- Produce risk assessment for occupational stress within Northern Rock. Establish and implement measures to minimise risks from occupational stress in conjunction with Personnel Department
Risk assessment completed. Employee Assistance Programme implemented by Personnel in 2005. Remaining preventative actions identified by risk assessment implemented in 2006.
Objective 19.
- To actively engage contractors and suppliers in regard to CSR issues.
Target
- To produce a confidential supplier/contractor opinion survey on a two-yearly basis. To report and act upon findings.
Last survey undertaken 2005.
Expansion of questions asked under review.
Ongoing.
Objective 20.
- Produce a Corporate Purchasing Policy with Guidance.
Target
- Finalise the work of the Procurement Group and link with Corporate Risk Review Programme – produce policy and guidance and training mechanisms for staff report outcomes.
Under review and linked with the review of Corporate Code of Ethics and Human Rights.
COMMUNITY
Objective 21.
- To increase GAYE.
Target
- By 2007 to increase contributors to the GAYE scheme by 10% over December 2004 figure
Achieved 2006. Further Details in “Northern Rock in the Community” Section.
ENVIRONMENT
Objective 22.
- To review the operation of plant and equipment to confirm that they match business requirements.
Targets
- Review the potential impact of the Energy Performance of Buildings Directive 2005 and requirements for the period 2005-2008 arising from it
Achieved and ongoing
New software has been acquired to allow the production of performance charts where necessary.
We will continue to review developments arising from the introduction of the Directive.
- Liaise with outside organisations
Achieved and ongoing
The Carbon Trust has conducted a survey of our archive store and decisions regarding the report will be made in 2007
- Establish requirements and introduce management system
Achieved and ongoing.
The Corporate Energy Group now has Management Information regarding the operation of plant and equipment at all sites.
- Review process to be established
This continues to be reviewed formally every quarter to ensure it is aligned with business needs.
- Review the operation of BMS systems operating within Head Office Sites and the relevance of management data supplied.
Achieved and ongoing
The BMS management information and Head Office Mechanical and Electrical Contract (M&E) is undergoing a comprehensive review.
The recommendations of this review are currently being implemented to improve the efficiency and effectiveness of this aspect of work.
- Honeywell presentation to group on Energy Manager
Achieved 2006
- Review alternatives available to Company
Achieved and ongoing. New software has been acquired to improve energy monitoring and targeting and trend analysis. This will incorporate Head Office site at Gosforth in addition to remote sites. Final project to be completed 2007.
- Trial a natural ventilation system in Solar House, Doxford Park , Sunderland
Achieved and ongoing.
The trial originally commenced in 2005 and continued again during the Spring and Autumn season in 2006.
- Review energy management data in respect of consumption and act upon findings
Achieved and ongoing.
This now forms part of the standard monthly report submitted by our mechanical and reengineering contractors and each recommendation is acted upon and documented where appropriate.
- Provide retrospective analysis of amendments to plant and equipment to establish outcomes demonstrated as assessed in original cost/benefit analysis submission
Postponed – this related to the branch network. The refurbishment programme for the branches was delayed and will now commence in 2007.
Complete review of our M&E installations has been undertaken in conjunction with an external M & E consultant. A new specification has been provisionally agreed and will be trialled in the first phase of the branch openings/refurbishments programme in 2007.
A cost benefit analysis will then be prepared to assess the suitability of this plant and equipment.
- Sub meter Phase 5 site development energy/water/gas use for management purposes
Project implemented 2006 for completion during 2007/8.
New software has been purchased to allow this to link with the development of sub meter monitoring in Phases 1-4 at Head Office.
- Continue process for improving systems for the management of remote site energy consumption linking with improvement to supplier billing systems.
Postponed – from 2007 the new branches and any refurbished branches will have:
I. Improvements to the Heating, Ventilation and Cooling Systems (HVAC_ controls. A web interface facility will be installed to allow branch and Head Office Staff to view or alter settings to ensure this equipment only operates as needed.
II. BMS System. This will be an open protocol system allowing centralised control and monitoring of electric heating, VRF and cooling, display lighting etc. The BMS will also meter incoming water and electricity and enable Head Office to interrogate the control settings to ensure they are set to meet business requirements.
Objective 23.
- To reduce our corporate energy emissions per employee
Target
- Reduce from the 1996 level of 3.10 tonnes to 2.48 tonnes in 2010
Achieved and ongoing. We will continue to pursue policies to control our CO2 emissions to continue to allow us to remain within our target.
Objective 24.
- To control and manage corporate waste arriving from our business operations
Targets
- To continue to review operational processes to minimise the production of waste
Achieved and ongoing. A number of operational groups have been set up to review
a) the original production of corporate wastes
b) how the overall wastes can be minimised by changes in working practices
- To comply with legislation and best practice guidelines
Achieved and ongoing.
Northern Rock has taken guidance during 2006 from external seminars and courses, some of which have been implemented into our working systems
We continue to liaise on a regular basis with The Environment Agency and DEFRA
- To review end waste streams and strategy for disposal
Achieved and ongoing.
Northern Rock has a policy for identifying and recycling end wastes wherever possible. During the year this has included pallets being used for organic composting.
We have linked with the developer of Phase 5 Head Office construction, Taylor Woodrow, in regard to analysis of waste streams and combining/utilising waste disposal facilities for the benefit of the Environment. This arrangement has been authorised by the Environment Agency.
- To regularly review existing systems to ensure they reflect corporate requirements
Achieved and ongoing
The introduction of the WEEE Directive has allowed us to extend the trial systems in place at Head Office Gosforth, to all of Northern Rock sites
- To work in partnership with on-site out-sourced companies to achieve corporate aims
We have established a waste reduction group with our on site caterers ARAMARK and significant changes have been implemented to reduce the amount of waste arising from on-site activities. This also includes proposals that will be fully implemented in 2007. Among these will be negate the need for disposable plastic water bottles in meeting and training facilities. This will be replaced by reusable, sterilised glass bottles, filled with either still or sparking water.
Betterkleen the on site cleaning company in Head Office Gosforth have also been party to the waste minimisation scheme and have produced effective procedures which have also supplied cost benefits to the Company.
Objective 25.
- To reduce corporate waste
Target
- by 5% measured against managed assets
Achieved and ongoing
Objective 26.
- To control and manage corporate water use.
Target
- To measure consumption against DEFRA Reporting Guidelines and Benchmarks and report outcomes
Achieved and ongoing.
The DEFRA Benchmark is 0.05cu m per person per working day and in 2006 Northern Rock achieved a figure of 0.036
Objective 27.
- To maintain the Northern Rock transport plan and amend as necessary.
Targets
- Liaise on a regular basis with Newcastle City Council to ensure partnership activity
Regular meetings are held with Newcastle City Council in regard to The Northern Rock Transport Plan for our Head Office site in Gosforth.
- Review modal shifts and target levels
These have been set for the period to 2010
- Conduct a transport survey of our staff every 3 years
Achieved and ongoing.
Latest transport survey was conducted in 2006.
Objective 28.
- To continue to implement the landscape plan for Head Office Gosforth developed by INSITE
Target
- Link progress communications to CSR Dept
Landscape plan fully complete 2006
Objective 29.
- Continue to train staff in environmental awareness and promote internally
Targets
- Green Representative re-launch
Achieved April 2006 and ongoing.
- Incorporate corporate environmental policy and awareness into corporate training schemes
Achieved during 2006 and in 2007 will form part of the electronic initial staff induction scheme
- Review current internal communications and promote regularly
Regular articles are included in the Corporate Business Magazine Newsround
Objective 30.
- Ensure Corporate Environmental Policy is reviewed and amended every 3 years or earlier as deemed necessary
The last review was conducted in 2004 and a further review will be conducted in 2007 with the assistance of our environmental auditors SEQM. If any changes are required they will be reported in the 2007 Community Report