We maintain regular dialogue with our key stakeholders so that we can take account of their views and act with regard to their interests. Our approach to engagement extends across all of our stakeholders, from those who influence what we do and benefit from the value we create, to those who just influence what we do.
Our culture
We believe that a healthy corporate culture is vital to the creation and protection of long-term value and the success of our business model is driven by our culture, which is founded on our core values: safety, customer focus, integrity and commitment.
Our culture is characterised by a respect for our talented people, a desire to deliver the best possible outcomes for our colleagues, clients and partners, the encouragement of openness and transparency, a collaborative approach towards working with our customers and our supply chain, and a regard for the value we can bring to local communities and the environment. All new employees receive a formal induction and are made aware of our core values and culture.
We believe that through our recruitment, performance management and reward processes, we support and encourage behaviours consistent with the Group's purpose, values, strategy and culture. These principles are driven by the board and embedded in the culture and operations of all Group companies.
Information on our performance against our safety, health, environmental and people objectives can be found in our 2023 'building a responsible and sustainable business' report.
Detailed below are the ways in which the Group as a whole engages with our stakeholders and more information can be found in the governance report which describes how the board engages with its direct stakeholders: the Group's shareholders, employees, clients, suppliers and funders.
Shareholders
Why we engage
We have c. six million shareholders, including institutional and personal investors, providing the Group with funds for investment in long-term growth. The board are committed to building and maintaining good positive relationships with all shareholders and ensuring regular, open dialogue with them throughout the year.
How we engage
- Our executive directors communicate regularly with institutional investors and analysts and all shareholders are invited to the Group's annual general meeting.
- Our non-executive directors are also available to meet with shareholders.
- The Group's website provides an important resource for communications to all stakeholders, with a specific section dedicated to investors.
- The Group provides regular updates on financial performance and significant events using a regulatory information service and responds to queries received from shareholders.
Their key material issues
- Share price growth and a continuing progressive dividend policy.
- Robust financial and risk management.
- Strong corporate governance.
- Regular communication of the Group's performance and strategy, including climate-related strategic objectives.
Customers
Why we engage
Our proven ability to work collaboratively and innovatively with clients is fundamental to our success and is critical to securing new work and achieving our strategic goals.
How we engage
- We focus on early contract engagement with clients, anticipating the issues they face, providing problem-solving solutions and delivering the best results to balance time, cost and quality objectives, whilst ensuring that risk and reward are appropriately shared.
- Our aim is to secure work where possible through partnerships, framework arrangements or repeat business. We nurture long-term relationships with our clients and partners, which can be achieved by taking the time to understand their priorities and then delivering on their project goals.
- On completion, clients are asked for feedback on their experience in face-to-face interviews using detailed questionnaires. The results are shared and analysed, in order to drive further improvements.
- Customer feedback and key customer strategic initiatives are regularly reported to the board. The board also takes the lead in suggesting specific customer collaborations.
Their key material issues
- Outstanding customer service, benefiting from our employees' technical knowledge and expertise.
- Working closely from the start to develop innovative and cost-efficient methods.
- Collaborative approach to lower carbon emissions and improving sustainability across all projects.
- The Group's continued good financial health and our strong balance sheet.
Colleagues
Why we engage
Our people are our biggest asset and to protect this we are committed to effectively managing all aspects of health and safety and creating a safe and inclusive working environment where everyone can be themselves and be their best.
How we engage
- Our MyVoice forum is a key component of our listening strategy. Three times a year colleague representatives from across the group meet with our CEO, workforce engagement director and HRD to provide us with a view of colleague sentiment and key topics of interest. Additional meetings take place when the business has key topics to discuss with the forum.
- We keep our colleagues informed of our financial performance through emails and articles on our intranet and through annual colleague roadshows.
- On average we share around 10 articles per month on our Connect platform with colleagues having the opportunity to comment, like or raise questions. Articles range from project wins, to benefits updates, to wellbeing guidance and advice to surveys around specific topics. Our executive committee review engagement levels with the platform on a monthly basis.
- Management teams run briefing sessions locally throughout the year on business goals, market conditions and company performance and we have commenced a roll out of bi monthly update emails from business unit directors to their respective teams.
- We offer share plans to colleagues (including the opportunity to save for three years under our SAYE scheme) to encourage them to engage with business performance and progress.
Their key material issues
- The cost-of-living crisis
- To work in a safe, suitable and respectful environment.
- Investment in personal and professional development.
- Consistent and fair treatment across all aspects of our people practices.
- Access to healthcare support for both physical and mental health concerns.
Suppliers
Why we engage
Our relationships with our supply chain partners are of strategic importance and key to the Group's success.
We develop long-term relationships with our supply chain and work with them to ensure we successfully deliver our projects efficiently and to a high standard.
How we engage
- Most of our suppliers are signed up to Group-wide agreements. We have a structured timetable of senior contact with suppliers of strategic importance and hold regular meetings with suppliers, covering a broad range of topics, including identifying and managing any incidents of modern slavery.
- We have a comprehensive Group-wide supplier accreditation process which involves reviewing and scoring supplier performance on criteria such as quality and safety and providing them with constructive feedback.
- Subcontractors who achieve preferred status benefit from long-term relationships and repeat work.
- Our policy is to treat our suppliers and contractors fairly and with respect, which includes paying our supply chain promptly. Our three main businesses are all signatories of the Prompt Payment Code ('PPC').
- The board receives feedback on the performance of key suppliers and on our prompt payment practices and specific supplier initiatives.
Their key material issues
- Repeat opportunities to work with the Group.
- To be treated fairly and with respect.
- Prompt payment.
- Sound health and safety performance.
Local communities
Why we engage
Engagement with the wide range of communities in which the Group operates is recognised as an important part of the delivery of our projects and is referenced, where appropriate, in reports to the board throughout the year.
How we engage
- Our directors have taken up opportunities to learn more about engagement with community stakeholders on specific projects through our programme of site visits.
- Through social and charitable committees within each business and through the Severfield Foundation we get involved with and raise money for local events, such as school or college talks or careers fairs, or supporting local charities. More details of the work of the Severfield Foundation can be found on People.
- The board receives regular ESG and climate-related reports and updates from the SHE director. Further detail of the governance of climate-related matters can be found in our Task force on Climate-related Financial Disclosures report ('TCFD') on Climate-related financial disclosures.
Their key material issues
- Improvements to and investment in the local environment and quality of life of those that live and work in the surrounding areas of the projects we work on or our factories.
- Sustainable buildings and infrastructure which considers whole life impact.
- Continuing commitment from the board to reduce carbon emissions to achieve the Group's sustainability target of Net Zero by 2040 for scope 1 and 2 emissions and 2050 for scope 3 emissions.