A recent survey showed 75% of respondents agree a company can take actions to both increase profits and improve economic and social conditions in the community where it operates.
Climate change and sustainable development
172 countries signed the United Nations Framework Convention on Climate Change (UNFCC) Paris Agreement and agreed to take steps to limit global warming to well below 2-degrees above pre-industrial levels. Additionally, 193 UN member states adopted the Sustainable Development Goals in 2015 to tackle poverty, inequality and climate change.
3 million people in modern slavery globally. The UK Modern Slavery Act 2015 ensures businesses are held to account for modern slavery in their operations and supply chains.
How we tackle these challenges
We have a detailed framework of policies and procedures in place across Capita, outlining our approach to human rights, health safety and the environment and community and charities. Our Ethical Code Statement, refreshed in 2017, sets out how we conduct business responsibly, encouraging us to work together, support our customers, deliver long term social and environmental value and be open, transparent and law-abiding. These policies are managed through our risk management framework ensuring that all operating countries and subsidiaries are compliant.
Our functional heads of procurement, human resources, health, safety and environment, and risk and compliance ensure that we have programmes in place to embed ethical behaviours at the heart of everything we do.
Working with our suppliers
Consisting of over 31,000 suppliers, we recognise that Capita’s supply chain is critical to the company’s success; the agility, speed and value we need to be competitive are founded on equitable supplier relationships.
We actively encourage supplier diversity and currently 60% of our supply base are classed as small and medium sized enterprises (SMEs). We monitor our payment terms and, on average, we pay SMEs within 20 days of invoice receipt (target: 30 days). The equivalent figure for non-SMEs is 32 days (target: 40 days).
For larger suppliers who supply goods or services across Capita, a Preferred Supplier List is maintained to encourage the use of associated contractual terms where possible. Preferred Suppliers are also highlighted on Capita’s purchasing platform and employees are made aware that no further tendering is required if a Preferred Supplier is selected. The Group Procurement team is responsible for maintaining awareness of Preferred Supplier relationships across the business.
Capita’s Procurement Team works with colleagues and suppliers to ensure that all necessary due diligence checks are undertaken, utilising a new procurement solution introduced during 2017. In the year we have audited 63% of our material suppliers (those with whom we spend over £1m) (57% of spend). These checks assess suppliers’ approach to human rights, data protection, modern slavery and environmental issues and are not only necessary to comply with associated legislation but are also good practice for any responsible organisation. If risks are identified, we work with suppliers to address them. Once a supplier is approved, employees are free to make contact to discuss their needs.
Protecting our information and data
We regard the fair and lawful processing, and correct treatment of personal information as crucial to the success of our operations, maintaining confidence between our business and those with whom we work, including our clients.
We fully endorse and adhere to the principles of data protection as set out in our Data Protection Policy and Information Security Policy which ensure that we treat personal information correctly in accordance with the law.
Data protection standards are led by the Capita Privacy Team which considers the data protection legislation and, more broadly, controls on who has access to personal data, who we share it with, how we use it, what we collect and finally ensuring it is safeguarded and disposed of properly when we no longer have a business need to process it.
In order to comply with the General Data Protection Regulations (GDPR), we have a comprehensive programme in place and a network of trained privacy professionals across the divisions providing advice and guidance on their specific GDPR compliance programmes. As well as ensuring that Capita data controllers are compliant with the new requirements we are providing expert help and assistance where we are a data processor for our clients.
We have appointed a Capita data protection officer. Her central team, together with the privacy leads across our divisions, ensure that privacy is high on the agenda across Capita. We have raised awareness of privacy and data protection through various initiatives including mandatory data protection training through our Think Privacy; Think Security campaign in summer 2017.
Bribery and corruption
We have zero tolerance of bribery and corruption. Our Anti-Bribery and Corruption Policy applies to all Capita businesses and employees. Our Risk and Compliance Team monitors compliance against this policy, ensuring all businesses are aware of their responsibilities in terms of donations, facilitated payments, gifts and hospitality. All employees must complete financial crime training annually.
Human rights and modern slavery
We are committed to respecting the human rights of our employees and those within the communities in which we work. Our Human Rights Policy details our commitments to upholding the principles of human rights as set out in the United Nations’ Universal Declaration of Human Rights (UDHR) and the International Labour Organisation (ILO) core conventions on Labour Rights. Within our Modern Slavery Statement, we set out our approach to stamping out modern slavery in our operations and supply chain.
Our Ethical Code Statement, refreshed in 2017, sets out how we conduct business responsibly, encouraging us to work together, support our customers, deliver long term social and environmental value and be open, transparent and law-abiding. We expect our businesses and our employees to demonstrate these commitments in their decision-making and conduct.
We recognised that some situations can be more ethically challenging than others and therefore our Open Door Policy and Speak Up Policy enables employees to challenge and report ethical concerns. Our Open Door Policy helps us to encourage a culture of active listening by supporting employees to raise any concern openly at any time in confidence.
If employees raise concerns that there may be potential criminal matters that have or are taking place, or failures in applying key Capita policies, then our Speak Up policy requirements must be followed.
Both our open door and speak up approach encourage employees to raise concerns to their line manager or supervisor in the first instance. Employees can also report matters dealt with under our speak up policy through our dedicated ‘whistleblowing’ channel if it would be more appropriate to raise them in this way or if a speak up matter is not being dealt with. Our speak up policy also sets out that employees may also raise ‘protected disclosure’ concerns to external bodies such as regulatory or professional bodies covering specific industries.
Managing our environmental performance
We recognise that our operations have an impact on the environment in terms of our carbon footprint contributing to climate change and the resources we use to deliver our services. We’re committed to getting our own house in order reducing our carbon footprint, using resources wisely and delivering our services to clients in an environmentally sustainable manner.
We are committed to reducing our carbon footprint which we report in terms of tonnes CO2 equivalent (tCO2e) and tonnes CO2 equivalent per person. We are proud to have reduced our emissions once again this year by 11% (7.4% reduction in tCO2e/headcount) from 2016. We have achieved this predominantly through our energy reduction programme in the UK portfolio, which we commenced in 2015 and has already resulted in a financial saving of £1.8M. We analyse our energy consumption to identify high consuming properties and put in place energy reduction projects such as optimising our heating and cooling controls, setting standards for our operating hours and temperatures and installing LED lighting. We have also delivered energy management workshops with all our facility managers giving them the tools and techniques to develop and deliver action plans to improve and maintain the energy efficiency of their buildings.
We will continue to focus on driving down our emissions from energy in 2018, as well as look at further improvements to the way we collect data and manage our resource use, for example we will look to improve the data collection for our company-owned vehicle mileage, waste and water.
Our commitments and metrics
We will conduct our business in an open, honest and transparent manner, embedding responsible and sustainable business practices into the way we work with clients, suppliers and the way we run our business.
63% of suppliers audited against our ethical standards
60% SME's in our supply chain
11% reduction in carbon footprint
Our ethical due diligence of our suppliers will continue in 2018 extending beyond our material suppliers to all our suppliers. We are also reviewing our Ethical Code Statement and accompanying guidance to employees and will be rolling this out via an animation to remind people to ask questions, raise concerns and report incidents. We will continue to focus on driving down our emissions from energy in 2018, as well as look at improving the way we collect data on our resources use, for example waste and water.