Responsible Business MATERIALITY FINDINGS REPORT 2018...GRI G4 Sustainability Reporting Guidelines cross-referenced with the United Nations’ Sustainable Development Goals (SDGs)

MATERIALITY FINDINGSREPORT

2018

Produced by IMS Consulting March 2018

Responsible Business

Introduction

IMS Consulting (Europe) Ltd was commissioned by Morgan Sindall Group to conduct a full

materiality assessment in January and February 2018. The company conducted its first materiality

exercise in 2015/2016.

The IMS Consulting Materiality Tool was used to solicit the views of both internal and external

stakeholders. The tool combines a customised online consultation with an in-built statistical

analysis to help businesses understand which issues matter most to their stakeholders.

The methodology

In order for stakeholders to select the material issues in the online consultation IMS Consulting

developed a ‘long list’ of issues for them to choose from.

This ‘long list’ was developed by IMS using the following inputs:

GRI G4 Sustainability Reporting Guidelines cross-referenced with the

United Nations’ Sustainable Development Goals (SDGs).

Input and guidance from Morgan Sindall Group and their divisions.

A full description of the Materiality calculation methodology is given in Appendix 1.

2306 stakeholders responded to the online consultation which allowed IMS to conduct a robust

quantitative analysis and statistical calculation to produce the material issues categorisation. 2036

responses came from internal stakeholders and 269 from external stakeholders. The overall

results are partially skewed by the number of internal responses being larger than external

responses; however, an additional analysis conducted on ONLY external stakeholder responses

and on ONLY internal stakeholder responses presented in the following pages, show which issues

are important for each stakeholder’s group – and largely their views are aligned.

An issue might be material to a stakeholder because:

It is already important to that stakeholder or their organisation.

It is important to them that Morgan Sindall Group demonstrates a responsible

approach to that issue.

It is an issue where the stakeholder thinks Morgan Sindall Group can make a

significant contribution.

MSG Responsible Business Materiality Findings 2018 1

The findings

Categorisation of material and non-material issues is presented in the tables laid out in this

document. The raw data from which these calculations have been made can be found in the

separate Data Report.

Issues have been grouped into one of four categories:

IT IS IMPORTANT TO NOTE THAT, AS PART OF THE MATERIALITY PROCESS,

STAKEHOLDERS ARE REQUIRED TO BOTH SELECT AND THEN PRIORITISE THE MOST

IMPORTANT SUSTAINABILITY ISSUES, USING A SCORING SYSTEM. IT IS THE

COMBINATION OF THIS INFORMATION THAT ALLOWS IMS CONSULTING TO CALCULATE

MATERIALITY.

Thresholds for the materiality classification are set according to overall scores to provide a

representative list of material issues. As a consequence, issues which are scored overall as ‘not

material’ could well appear in the ‘unlikely to be material’, ‘close to being material’ or ‘material’

categories for specific stakeholder groups, and vice versa. Refer to table 3 to identify important

issues for internal and external stakeholders.

Material. Very strong support from stakeholders in the consultation, these issues

are material for Morgan Sindall Group. They should ideally form the basis of the

business’ approach to tackling sustainability.

Close to being material. Support for these issues from a significant number of

stakeholders, however these issues are not as important as the material issues

and are not categorised as material. It is important for Morgan Sindall Group to

consider the issues categorised as ‘close to being material‘ as they entail a certain

degree of importance and/or relevance to its stakeholders.

Unlikely to be material. Some scattered support for these issues by a limited

number of stakeholders.

Not material. Strong evidence that these issues are not considered material and

can be dismissed.


The open text responses in the Full Data Report give further detail on stakeholders’ thinking and

justification.

The following pages of the report display the materiality findings. Click on the table number below

to navigate to a table:

Overall findings

Table 1 Materiality table. Scoring of priority material issues for Morgan Sindall Group

split by responsible business key categories

Table 2 Materiality table. Scoring of priority material issues for Morgan Sindall Group

split by classification

Table 3 Materiality grid for Morgan Sindall Group internal vs external

perspectives on priority issues

Table 4 Divisional split. Scoring of priority material issues for Morgan Sindall Group’s

divisions split by responsible business key categories

Table 5 Internal only. Scoring of priority material issues for internal stakeholders

only (split by classification)

Table 6 External only. Scoring of priority material issues for external stakeholders

only (split by classification)

Individual division findings

Table 7 Scoring of priority material issues for Morgan Sindall Construction &

Infrastructure (split by classification)

Table 8 Scoring of priority material issues for Overbury (Fit Out) (split by

classification)

Table 9 Scoring of priority material issues for Lovell Partnerships (Partnerships

Housing) (split by classification)

Table 10 Scoring of priority material issues for Muse Developments (Urban

Regeneration) (split by classification)

Table 11 Scoring of priority material issues for Morgan Lovell (Fit Out) (split by

classification)

Table 12 Scoring of priority material issues for Morgan Sindall Property Services

(split by classification)

Table 13 Scoring of priority material issues for Community Solutions Partnership

Services (Investments) (split by classification)

Table 14 Scoring of priority material issues for Baker Hicks (split by classification)

Table 15 Scoring of priority material issues for Morgan Sindall Investments (split by

classification)


ISSUE CLASSIFICATION

Environmental issues

The impact of our operations on <strong>biodiversity and habitats Not material

Our approach to climate change (policy and strategy) Not material

How we manage effluents pollutants and control of hazardous substances

Unlikely to be material

The energy use of our operations Not material

Policies and practices related to our transportation Not material

The carbon emissions of our operations Not material

How we manage operations efficiently and add value Material

How we source materials responsibly Close to being material

Waste created by our operations Material

The environmental performance of buildings and infrastructure we deliver

Not material

The environmental performance of our suppliers and subcontractors Not material

Economic and governance issues

How we demonstrate advocacy and leadership on responsible business

Material

How we prevent bribery and corruption Close to being material

Our corporate governance and integrity Material

Respecting human rights Material

Our innovation Close to being material

How we are engaging with our suppliers Close to being material

How we ensure responsible selling and marketing Not material

How we ensure that conflicts of interest are avoided Not material

Employee-related issues

Our approach to health and safety Material

The development and training of our employees Material

How we are promoting equality and diversity of our employees Unlikely to be material

How we are engaging with our employees Material

Details about freedom of association Not material

The employee practice of our suppliers and subcontractors Unlikely to be material

How we are recruiting and retaining our employees Material

How we help our employees achieve work-life balance Material

How we secure a living wage Close to being material

Social-related issues

How we are improving our understanding of the wider benefits to local communities

Not material

The way we engage with the local community Close to being material

How we are engaging with customers Material

Our impact on social value Not material

How we protect our customer data privacy Unlikely to be material

How we support inclusion and equality Unlikely to be material

How we are helping promote industry-wide skills Close to being material

The way we anticipate and respond to new and emerging markets Unlikely to be material

How we are creating opportunities for young people Material

Table 1 • Materiality table • Scoring of priority material issues for Morgan Sindall Group split by responsible business key categories.


CLASSIFICATION ISSUES

• How we manage operations efficiently and add value• Waste created by our operations• How we demonstrate advocacy and leadership on responsible business• Our corporate governance and integrity• Respecting human rights• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we are engaging with customers• How we are creating opportunities for young people

• How we source materials responsibly• How we prevent bribery and corruption• Our innovation• How we are engaging with our suppliers• How we secure a living wage• The way we engage with the local community• How we are helping promote industry-wide skills

• How we manage effluents pollutants and control of hazardous substances• How we are promoting equality and diversity of our employees• The employee practice of our suppliers and subcontractors• How we protect our customer data privacy• How we support inclusion and equality• The way we anticipate and respond to new and emerging markets

• The impact of our operations on biodiversity and habitats• Our approach to climate change (policy and strategy)• The energy use of our operations• Policies and practices related to our transportation• The carbon emissions of our operations• The environmental performance of buildings and infrastructure we deliver• The environmental performance of our suppliers and subcontractors• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• How we are improving our understanding of the wider benefits to local communities• Our impact on social value

Table 2 • Materiality table • Scoring of priority material issues for Morgan Sindall Group split by classification.

Close to being material

Material


Not material


IMP

OR

TAN

CE

TO

STA

KEH

OLD

ERS

Material

• How we are engaging with our suppliers • How we manage operations efficientlyand add value

• Waste created by our operations• Our corporate governance and integrity• How we are engaging with customers• Our approach to health and safety• The development and training of our

employees• How we are creating opportunities for

young people


• How we preventbribery and corruption

• Respecting human rights• How we are engaging with our

employees


• Our approach to climate change (policy and strategy)• The carbon emissions of our operations

• How we manage effluents pollutants andcontrol of hazardous substances

• How we are promoting equality anddiversity of our employees

• The employee practice of our suppliersand subcontractors

• How we protect our customer dataprivacy

• How we support inclusion and equality

• How we are helpingpromote industry-wideskills

• How we secure a livingwage

• The way we engagewith the localcommunity

• How we are recruiting and retaining ouremployees

• How we help our employees achievework-life balance

Not material

• The impact of our operations on biodiversity and habitats• The energy use of our operations• Policies and practices related to our transportation• The environmental performance of buildings and

infrastructure we deliver• The environmental performance of our suppliers and

subcontractors• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• How we are improving our understanding of the wider

benefits to local communities• Our impact on social value

• The way we anticipate and respond tonew and emerging markets

• How we sourcematerials responsibly

• Our innovation

• How we demonstrate advocacy andleadership on responsible business

Not material Unlikely to be materialClose to being

materialMaterial

IMPORTANCE TO BUSINESS

Table 3 • Materiality grid for Morgan Sindall Group internal vs external perspectives on priority issues.


Key:

ISSUE C&I ML FO MD LP MSI OV FO MSPS CSPS BH MSG

Environmental issues

The impact of our operations on biodiversity and habitatsOur approach to climate change (policy and strategy)How we manage effluents pollutants and control of hazardous substancesThe energy use of our operationsPolicies and practices related to our transportationThe carbon emissions of our operationsHow we manage operations efficiently and add valueHow we source materials responsiblyWaste created by our operationsThe environmental performance of buildings and infrastructure we deliverThe environmental performance of our suppliers and subcontractors

Economic and governance issues

How we demonstrate advocacy and leadership on responsible businessHow we prevent bribery and corruptionOur corporate governance and integrityRespecting human rightsOur innovationHow we are engaging with our suppliersHow we ensure responsible selling and marketingHow we ensure that conflicts of interest are avoided

Employee-related issues

Our approach to health and safetyThe development and training of our employeesHow we are promoting equality and diversity of our employeesHow we are engaging with our employeesDetails about freedom of associationThe employee practice of our suppliers and subcontractorsHow we are recruiting and retaining our employeesHow we help our employees achieve work-life balanceHow we secure a living wage

Social-related issues

How we are improving our understanding of the wider benefits to local communitiesThe way we engage with the local communityHow we are engaging with our customersOur impact on social valueHow we protect our customer data privacyHow we support inclusion and equalityHow we are helping promote industry-wide skillsThe way we anticipate and respond to new and emerging marketsHow we are creating opportunities for young people

Table 4 • Divisional split • Scoring of priority material issues for Morgan Sindall Group’s divisions split by responsible business key categories.

Material Close to being material Unlikely to be material Not materialMSG Responsible Business Materiality Findings 2018 7


• How we manage operations efficiently and add value• Waste created by our operations• How we demonstrate advocacy and leadership on responsible business• Our corporate governance and integrity• How we are engaging with customers• Respecting human rights• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we are creating opportunities for young people

• How we source materials responsibly• How we prevent bribery and corruption• Our innovation• How we secure a living wage• The way we engage with the local community• How we are helping promote industry-wide skills

• How we manage effluents pollutants and control of hazardous substances• How we are engaging with our suppliers• How we are promoting equality and diversity of our employees• The employee practice of our suppliers and subcontractors• How we protect our customer data privacy• How we support inclusion and equality• The way we anticipate and respond to new and emerging markets

• The impact of our operations on biodiversity and habitats• Our approach to climate change (policy and strategy)• The energy use of our operations• Policies and practices related to our transportation• The carbon emissions of our operations• The environmental performance of buildings and infrastructure we deliver• The environmental performance of our suppliers and subcontractors• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• How we are improving our understanding of the wider• Benefits to local communities• Our impact on social value

Table 5 • Internal only • Scoring of priority material issues for internal stakeholders only (split by classification).


Material


Not material



• How we manage operations efficiently and add value• Waste created by our operations• Our corporate governance and integrity• How we are engaging with customers• How we are engaging with our suppliers• Our approach to health and safety• The development and training of our employees• How we are creating opportunities for young people

• How we prevent bribery and corruption• Respecting human rights• How we are engaging with our employees

• Our approach to climate change (policy and strategy)• How we manage effluents pollutants and control of hazardous substances• The carbon emissions of our operations• The employee practice of our suppliers and subcontractors• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we secure a living wage• The way we engage with the local community• How we protect our customer data privacy• How we support inclusion and equality• How we are helping promote industry-wide skills

• The impact of our operations on biodiversity and habitats• The energy use of our operations• Policies and practices related to our transportation• How we source materials responsibly• The environmental performance of buildings and infrastructure we deliver• The environmental performance of our suppliers and subcontractors• How we demonstrate advocacy and leadership on responsible business• Our innovation• How we ensure responsible selling and marketing• Details about freedom of association• How we ensure that conflicts of interest are avoided• How we are improving our understanding of the wider benefits to local communities• Our impact on social value• The way we anticipate and respond to new and emerging markets

Table 6 • External only • Scoring of priority material issues for external stakeholders only (split by classification).


Material


Not material



• How we manage operations efficiently and add value• Waste created by our operations• Our corporate governance and integrity• Respecting human rights• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we are engaging with customers• How we are creating opportunities for young people

• How we manage effluents pollutants and control of hazardous substances• How we demonstrate advocacy and leadership on responsible business• How we prevent bribery and corruption• Our innovation• How we are engaging with our suppliers• How we secure a living wage• The way we engage with the local community• How we are helping promote industry-wide skills

• How we source materials responsibly• How we are promoting equality and diversity of our employees• Details about freedom of association• The employee practice of our suppliers and subcontractors• How we are improving our understanding of the wider benefits to local communities• How we protect our customer data privacy• How we support inclusion and equality

• The impact of our operations on biodiversity and habitats• Our approach to climate change (policy and strategy)• The energy use of our operations• Policies and practices related to our transportation• The carbon emissions of our operations• The environmental performance of buildings and infrastructure we deliver• The environmental performance of our suppliers and subcontractors• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Our impact on social value• The way we anticipate and respond to new and emerging markets

Table 7 • Scoring of priority material issues for Morgan Sindall Construction & Infrastructure (split by classification).


Material


Not material



• How we source materials responsibly• Waste created by our operations• How we demonstrate advocacy and leadership on responsible business• How we prevent bribery and corruption• Our innovation• How we are engaging with our suppliers• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we are engaging with customers• How we support inclusion and equality• How we are creating opportunities for young people

• How we manage operations efficiently and add value• Our corporate governance and integrity• Respecting human rights• How we are promoting equality and diversity of our employees• How we secure a living wage

• The impact of our operations on biodiversity and habitats• Our approach to climate change (policy and strategy)• How we manage effluents pollutants and control of hazardous substances• The environmental performance of our suppliers and subcontractors• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• The employee practice of our suppliers and subcontractors• How we protect our customer data privacy• How we are helping promote industry-wide skills• The way we anticipate and respond to new and emerging markets

• The energy use of our operations• Policies and practices related to our transportation• The carbon emissions of our operations• The environmental performance of buildings and infrastructure we deliver• How we are improving our understanding of the wider benefits to local communities• The way we engage with the local community• Our impact on social value

Table 8 • Scoring of priority material issues for Overbury (Fit Out) (split by classification).


Material


Not material



• How we manage operations efficiently and add value• How we source materials responsibly• Waste created by our operations• How we demonstrate advocacy and leadership on responsible business• Respecting human rights• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• The way we engage with the local community• How we are engaging with customers• How we are creating opportunities for young people

• How we prevent bribery and corruption• Our corporate governance and integrity• How we are promoting equality and diversity of our employees• How we secure a living wage• How we are improving our understanding of the wider benefits to local communities• How we are helping promote industry-wide skills

• The impact of our operations on biodiversity and habitats• Our approach to climate change (policy and strategy)• How we manage effluents pollutants and control of hazardous substances• Our innovation• How we are engaging with our suppliers• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• The employee practice of our suppliers and subcontractors• How we protect our customer data privacy• How we support inclusion and equality• The way we anticipate and respond to new and emerging markets

• The energy use of our operations• Policies and practices related to our transportation• The carbon emissions of our operations• The environmental performance of buildings and infrastructure we deliver• The environmental performance of our suppliers and subcontractors• Our impact on social value

Table 9 • Scoring of priority material issues for Lovell Partnerships (Partnerships Housing) (split by classification).


Material


Not material



• Our approach to climate change (policy and strategy)• Waste created by our operations• The environmental performance of buildings and infrastructure we deliver• How we demonstrate advocacy and leadership on responsible business• How we prevent bribery and corruption• Our corporate governance and integrity• Our approach to health and safety• The development and training of our employees• How we are promoting equality and diversity of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we are improving our understanding of the wider benefits to local communities• Our impact on social value• How we are engaging with customers• The way we anticipate and respond to new and emerging markets

• The impact of our operations on biodiversity and habitats• How we manage operations efficiently and add value• Respecting human rights• Our innovation• The way we engage with the local community• How we are creating opportunities for young people

• How we manage effluents pollutants and control of hazardous substances• The energy use of our operations• How we source materials responsibly• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• How we secure a living wage• How we protect our customer data privacy• How we support inclusion and equality• How we are helping promote industry-wide skills

• Policies and practices related to our transportation• The carbon emissions of our operations• The environmental performance of our suppliers and subcontractors• How we are engaging with our suppliers• Details about freedom of association• The employee practice of our suppliers and subcontractors

Table 10 • Scoring of priority material issues for Muse Developments (Urban Regeneration) (split by classification).


Material


Not material



• How we source materials responsibly• Waste created by our operations• How we prevent bribery and corruption• Our innovation• How we are engaging with our suppliers• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we help our employees achieve work-life balance• How we are engaging with customers• How we are creating opportunities for young people

• How we are recruiting and retaining our employees• How we secure a living wage• How we are helping promote industry-wide skills

• Our approach to climate change (policy and strategy)• How we manage effluents pollutants and control of hazardous substances• Policies and practices related to our transportation• How we demonstrate advocacy and leadership on responsible business• Our corporate governance and integrity• Respecting human rights• How we ensure responsible selling and marketing• How we are promoting equality and diversity of our employees• The way we engage with the local community• How we protect our customer data privacy

• The impact of our operations on biodiversity and habitats• The energy use of our operations• The carbon emissions of our operations• How we manage operations efficiently and add value• The environmental performance of buildings and infrastructure we deliver• The environmental performance of our suppliers and subcontractors• How we ensure that conflicts of interest are avoided• Details about freedom of association• The employee practice of our suppliers and subcontractors• How we are improving our understanding of the wider benefits to local communities• Our impact on social value• How we support inclusion and equality• The way we anticipate and respond to new and emerging markets

Table 11 • Scoring of priority material issues for Morgan Lovell (Fit Out) (split by classification).


Material


Not material



• How we manage operations efficiently and add value• How we demonstrate advocacy and leadership on responsible business• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we are engaging with customers• How we are creating opportunities for young people

• Waste created by our operations• Respecting human rights• Our innovation• How we are promoting equality and diversity of our employees• How we secure a living wage• The way we engage with the local community• How we protect our customer data privacy

• How we manage effluents pollutants and control of hazardous substances• How we source materials responsibly• How we prevent bribery and corruption• Our corporate governance and integrity• Our impact on social value• How we support inclusion and equality• The way we anticipate and respond to new and emerging markets

• The impact of our operations on biodiversity and habitats• Our approach to climate change (policy and strategy)• The energy use of our operations• Policies and practices related to our transportation• The carbon emissions of our operations• The environmental performance of buildings and infrastructure we deliver• The environmental performance of our suppliers and subcontractors• How we are engaging with our suppliers• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• The employee practice of our suppliers and subcontractors• How we are improving our understanding of the wider benefits to local communities• How we are helping promote industry-wide skills

Table 12 • Scoring of priority material issues for Morgan Sindall Property Services (split by classification).


Material


Not material



• The environmental performance of buildings and infrastructure we deliver• Our corporate governance and integrity• The development and training of our employees• How we are engaging with our employees• How we help our employees achieve work-life balance

• The energy use of our operations• The carbon emissions of our operations• How we demonstrate advocacy and leadership on responsible business• Our innovation• Our approach to health and safety• How we are promoting equality and diversity of our employees• How we are recruiting and retaining our employees• The way we engage with the local community• How we are engaging with customers

• Our approach to climate change (policy and strategy)• How we manage operations efficiently and add value• How we source materials responsibly• Waste created by our operations• Respecting human rights• How we are engaging with our suppliers• How we secure a living wage• How we are improving our understanding of the wider benefits to local communities• How we support inclusion and equality• The way we anticipate and respond to new and emerging markets• How we are creating opportunities for young people

• The impact of our operations on biodiversity and habitats• How we manage effluents pollutants and control of hazardous substances• Policies and practices related to our transportation• The environmental performance of our suppliers and subcontractors• How we prevent bribery and corruption• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• The employee practice of our suppliers and subcontractors• Our impact on social value• How we protect our customer data privacy• How we are helping promote industry-wide skills

Table 13 • Scoring of priority material issues for Community Solutions Partnership Services (Investments) (split by classification).


Material


Not material



• The environmental performance of buildings and infrastructure we deliver• Respecting human rights• Our innovation• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we are recruiting and retaining our employees• How we help our employees achieve work-life balance• How we are engaging with customers• How we support inclusion and equality• How we are creating opportunities for young people

• Our approach to climate change (policy and strategy)• The energy use of our operations• Our corporate governance and integrity• How we are promoting equality and diversity of our employees• How we secure a living wage• How we are helping promote industry-wide skills

• How we manage effluents pollutants and control of hazardous substances• The environmental performance of our suppliers and subcontractors• How we demonstrate advocacy and leadership on responsible business• How we prevent bribery and corruption• Details about freedom of association• The employee practice of our suppliers and subcontractors• How we protect our customer data privacy• The way we anticipate and respond to new and emerging markets

• The impact of our operations on biodiversity and habitats• Policies and practices related to our transportation• The carbon emissions of our operations• How we manage operations efficiently and add value• How we source materials responsibly• Waste created by our operations• How we are engaging with our suppliers• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• How we are improving our understanding of the wider benefits to local communities• The way we engage with the local community• Our impact on social value

Table 14 • Scoring of priority material issues for Baker Hicks (split by classification).


Material


Not material



• Our approach to climate change (policy and strategy)• The environmental performance of buildings and infrastructure we deliver• Our corporate governance and integrity• How we are engaging with customers• Our innovation• Our approach to health and safety• The development and training of our employees• How we are engaging with our employees• How we help our employees achieve work-life balance• How we are improving our understanding of the wider benefits to local communities

• The energy use of our operations• How we source materials responsibly• How we demonstrate advocacy and leadership on responsible business• How we prevent bribery and corruption• Respecting human rights• How we are promoting equality and diversity of our employees• How we are recruiting and retaining our employees• The way we engage with the local community• Our impact on social value• How we are helping promote industry-wide skills• How we are creating opportunities for young people

• The impact of our operations on biodiversity and habitats• How we manage operations efficiently and add value• How we are engaging with our suppliers• The employee practice of our suppliers and subcontractors• How we secure a living wage• The way we anticipate and respond to new and emerging markets

• How we manage effluents pollutants and control of hazardous substances• Policies and practices related to our transportation• The carbon emissions of our operations• Waste created by our operations• The environmental performance of our suppliers and subcontractors• How we ensure responsible selling and marketing• How we ensure that conflicts of interest are avoided• Details about freedom of association• How we protect our customer data privacy• How we support inclusion and equality

Table 15 • Scoring of priority material issues for Morgan Sindall Investments (split by classification).


Material


Not material


22

Appendix 1: Methodology The IMS Consulting Materiality Tool establishes material issues using a combination of the

‘relevance’ and ‘significance’ assigned to each issue. In this context, ‘relevance’ is the frequency with which any given issue is said to be material by respondents, while ‘significance’

is the perceived importance of that issue. For an issue to be material, it must be relevant

and/or significant above certain thresholds. It is the combination of these two elements (i.e. the red zone in the graph) determines which issues are most likely to be material.

In the online consultation, stakeholders were presented with a ‘long list’ of potentially material

issues – divided up by the People, Planet and Profit pillars. These were the same issues as used in the 2013 assessment, albeit with better descriptors.

o First, stakeholders were asked to select which issues are most relevant to their relationship with Morgan Sindall Group (up to maximum of five per pillar).

o Then, for the issues they selected only, they were asked to score their significance out of

100.

o This means the subsequent assessment of material issues to stakeholders is based on both

(i) the number of stakeholders who identify a particular issue as relevant as well as (ii) the average significance stakeholders assign to that issue.

For relevance (i.e. number of stakeholders), the results of this online consultation were used to calculate a relevance score (the percentage of respondents who selected each issue,

potentially ranging from 0% to 100%).

For significance (i.e. average score), the online consultation provided the average score for

each issue (between 0 and 100).

These two values were used to produce the following materiality groupings for Morgan Sindall Group based on the views of its stakeholders:

o Material

To be in this group, Issues that are EITHER (i) selected by over 75% of respondents and have an average score greater that the overall average score ("highly relevant")

OR (ii) have an average score greater than the overall average score plus one standard deviation and are selected by over 50% of respondents ("highly significant") OR (iii)

both.

o Close to being material


23

To be in this group, Issues that are EITHER (i) selected by over 75% of respondents (“relevant”) OR (ii) have an average score greater than the overall average score plus

one standard deviation and are selected by over 25% of respondents (“significant”) OR (iii) are selected by over 50% of respondents and have an average score greater than

the overall average.

o Unlikely to be material

To be in this group, issues were BOTH selected by less than 50% of respondents AND have an average score less than the overall average score (“neither relevant nor

significant”).

o Not material All remaining issues are in this group. It means that although there might be some

indication that these issues could be important (“somewhat relevant or significant or both”), there is not enough evidence to designate them as important overall.

To establish a ‘final’ potential list of material issues, it is important to consider internal as well

as external views. In the absence of a Group workshop (as in 2015/2016) to inform which issues matter most to the business, the 2018 assessment is based on the following:

o The internal view is provided by management-level employees

o The external view is provided by all other employees and external stakeholders

These results are combined using a ‘highest common denominator’ approach – that is taking the highest materiality level provided for each issue by the two views (e.g. if internal view is

material and external view is possibly material, that issue would be considered material

overall).


24

Contacts Roxanne Ratcliff

Engagement Specialist [email protected]

+44 (0)7870 832998

UK

13-14 Orchard Street Bristol BS1 5EH

+44 (0) 117 905 5050

FRANCE

57 rue d’Amsterdam 75008 Paris

+33 (0) 1 53 32 17 44


mailto:[email protected]

Contact: [email protected]

+44(0)117 905 5050 www.imsplc.com

Documents

Responsible Business MATERIALITY FINDINGS REPORT 2018...GRI G4 Sustainability Reporting Guidelines cross-referenced with the United Nations’ Sustainable Development Goals (SDGs)