Search Trigger

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.

Detailed here 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.

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 2022 'building a responsible and sustainable business' report.

During the last 12 months, with the continuation of the COVID-19 pandemic, we have continued to see the value to the business of our culture, and our people have really come to the fore to enable us to continue to carry on trading as normally as possible. We have continued to hold regular video conference calls with the executive team and the board and to frequently communicate with those working from home. During this period, we issued several communications with advice on working from home, including how to cope with certain mental health issues arising from the crisis itself, as well as information on the practicalities of working from home.

Shareholders

Why we engage

We have c. 6 million shareholders, including institutional and personal investors, providing the Group with funds for investment in long-term growth. The board is 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, benefitting 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 performance and delivering a strong balance sheet.

Employees

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, inclusive, and diverse working environment where everyone can thrive.

How we engage

  • We keep our employees informed of our financial performance through newsletters, emails, an intranet and briefing sessions, and let them know of any external factors and significant events that might have an impact on them.
  • During the COVID-19 outbreak in particular, we have communicated regularly with our staff via a dedicated online information hub relating to the crisis through our intranet platform.
  • We offer share plans to employees (including the opportunity to save for three years under our SAYE scheme) to encourage them to engage with business performance and progress.
  • Each Group company updates its employees on business goals, market conditions and company performance. Business-specific employee roadshows are held throughout the year and employees are invited to give their views and provide feedback on a range of topics.
  • This year we launched MyVoice, a comprehensive engagement programme led by Louise Hardy, our workforce engagement director, to ensure that the views of our staff are represented in the board room.

Their key material issues

  • To work in a safe and respectful environment, with consideration given to employees' physical and mental health concerns.
  • Commitment to continually improving health and safety targets, and reducing IFRs.
  • Investment in personal and professional development.
  • A fair reward and benefit structure.

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'), and for the PPC reporting period of 1 October 2021 to 26 March 2022, all of the Group's businesses that are PPC signatories reported that between 90 and 95 per cent of our suppliers and subcontractors were paid within 60 days.
  • 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 Building a Responsible and Sustainable Business.
  • 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 ('TCFD') report onĀ Building a Responsible and Sustainable Business.

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.