Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Health and Safety
• Community Engagement
• Employee Development
• Customer Satisfaction

Environmental Achievements

• Built more homes to Code for Sustainable Homes standard (22% of homes sold)
• Improved waste recycling to 82% of total waste produced
• Reduced waste sent to landfill by 20% per home
• Total energy consumption of 24.7 million kilowatt hours and CO2 emissions of 14 thousand tonnes

Social Achievements

• 93% of customers would recommend Persimmon to a friend
• Invested £18.2m in community infrastructure projects
• Built 1,779 new affordable homes
• Built 5,716 new homes on brownfield land (61% of all homes completed)
• Delivered 5,359 training days to employees (2.2 days per employee)
• Over 98% of workforce meets Construction Skills Certification Scheme (CSCS) requirements

Governance Achievements

• Complied with the Combined Code on Corporate Governance
• Implemented new procedures to minimize accidents
• Strengthened audit criteria for health and safety
• Provided significant investment in health and safety training

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic conditions and constrained marketplace due to mortgage availability
• Increased waste generated per home sold (6.9 tonnes) due to new site openings
• Increase in reportable accidents (RIDDORs) to 59 (6.5 per 1,000 employees) primarily due to slips, trips, and falls
• Uncertainty surrounding the new planning regime introduced by the Coalition Government

Mitigation Strategies

• Focus on tight cost control, maximisation of sales revenues, and strong cash generation
• Improved waste recycling rates
• Implemented new procedures to minimize accidents and work closely with HSE
• Continued pursuit of long land bank strategy while gradually reducing land supply

Supply Chain Management

Responsible Procurement

• Maintain a very strong and diverse supply chain, not dependent on a single supplier or subcontractor

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Space4 Eco housing range

Awards & Recognition

• 30 NHBC Pride in the Job awards
• Two Local Authority Building Control Excellence awards

Environmental Metrics

ESG Focus Areas

• Putting customers first
• Prioritising health and safety
• Building sustainable homes
• Operating efficiently and responsibly
• Investing in our communities
• Investing in our people

Environmental Achievements

• Recycled 84% of waste generated, diverting 52,000 tonnes from landfill.
• Reduced waste sent to landfill by 60% since 2008.
• Reduced vehicle fleet fuel consumption by 4%.
• Planted 169,576 trees.
• Built 2,512 homes meeting Code for Sustainable Homes or EcoHomes standards (27% of total output).

Social Achievements

• 91% of customers would recommend Persimmon to a friend.
• Built 1,791 affordable homes (19% of total output).
• Provided 3,507 days of employee training.
• Invested over £24 million in community facilities.
• Donated £94,000 to charity, with employees raising an additional £91,000.

Governance Achievements

• Implemented a robust incident-led investigative reporting system.
• Group Head Office, South Midlands, and Westbury Partnerships reaccredited against the Committed 2 Equality (C2E) standard.
• Persimmon Homes Southern regional business accredited for the first time against the C2E standard.

Climate Goals & Targets

Environmental Challenges

• Increase in the number of accidents on sites (RIDDOR reportable accidents increased from 59 to 90).
• Lower than expected customer satisfaction score in the NHBC/HBF survey (3* rating, 79% recommendation score).

Mitigation Strategies

• Increased health and safety training by 37% compared to 2010 (382 days).
• Implemented new initiatives to improve after-sales service to customers.
• Increased focus on worker engagement and involvement in hazard identification and risk assessment.
• Toolbox talks will concentrate on behavior and attitude to improve health and safety culture.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing bricks locally to reflect local vernacular.
• Sourcing staircases and roof trusses locally.
• Using products and materials with good environmental credentials.
• Working with suppliers to reduce packaging waste.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (Space4 manufacturing site)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Space4 timber frame system
• Insuslab insulated foundation technique

Awards & Recognition

• Persimmon South Coast won the Construction Health and Safety Group ‘Outstanding Contribution to Training’ award.
• 21 site managers collected NHBC Pride in the Job Quality Awards, 4 receiving Seal of Excellence Awards.

Environmental Metrics

ESG Focus Areas

• Customer satisfaction
• Health & Safety
• Sustainable Homes
• Efficient Operations
• Employee Development
• Community Engagement

Environmental Achievements

• Reduced waste generated per home sold by 3%
• Recycled 88% of construction waste
• Reduced CO2 emissions per home sold by 2.6%
• Reduced energy consumption in main offices

Social Achievements

• Regained 4-star rating in the 2012 HBF survey (84% of customers would recommend)
• Donated a house worth £250,000 to The Harley Staples Cancer Trust
• Invested over £33 million in new community facilities
• Reduced reportable RIDDOR accidents by 41%

Governance Achievements

• Established new Worker Engagement Procedures to support a safety-based culture
• All operating businesses achieved a Bronze award in internal health & safety audits (75% policy conformance)

Climate Goals & Targets

Environmental Challenges

• Slightly lower demand from the social housing sector for homes adhering to sustainable standards
• Potential flooding concerns on new housing developments

Mitigation Strategies

• Incorporated learnings from sustainable standards into homes not formally assessed
• Undertake flood risk assessments and develop management strategies in consultation with the Environment Agency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Principles; sourcing materials with excellent environmental credentials; using timber from sustainable sources (FSC, PEFC, or SFI certified)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Space4 technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community
• Customers
• Resource efficiency
• Skills development
• Health and safety

Environmental Achievements

• 90% of construction waste recycled (2012: 88%)
• Waste per home built reduced by 11% to 5.7 tonnes (2012: 6.4 tonnes)
• All homes built assessed for energy efficiency against the Standard Assessment Procedure
• 99% of houses built to the Code for Sustainable Homes or Ecohomes standard achieved Level 3 or above
• Sold 135 homes to Code for Sustainable Homes Level 4 standard
• Sold over 4,200 Persimmon homes using Space4 technology (36% of new home sales)
• 845 homes sold with renewable energy technology
• Reduced CO2 g/km emissions across motor fleet by 15% (from 135 g/km in 2012 to 116 g/km in 2013)

Social Achievements

• Provided over 4,400 days of training to employees
• Increased number of apprentices and trainees to 277 (2012: 90)
• Awarded Equality Accreditation in Employment and Customer Service at the silver level by Equality Accreditation Services (EAS)
• Invested over £38m in new community facilities (up from £33m in 2012)
• Donated £154,000 to charitable causes
• Sold 2,121 affordable/social homes to Housing Associations

Governance Achievements

• Complies with the UK Corporate Governance Code
• Board regularly reviews policies and procedures to ensure compliance

Climate Goals & Targets

Environmental Challenges

• Physical risks (weather events disrupting construction)
• Regulatory risks (stringent environmental standards causing delays and increased costs)
• Financial risks (impact on insurance, mortgages, and consumer demand)
• Product risk (meeting demands for sustainable housing)
• Supply chain risk (regulation impacting energy-intensive manufacturers)
• Reputational risk (meeting shareholder expectations and adapting to changing needs)

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for locally sourced, recycled, and reclaimed materials; commitment to procuring timber from sustainable sources (FSC, PEFC, SFI)

Climate-Related Risks & Opportunities

Physical Risks

• Storms and flooding

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Space4 technology

Awards & Recognition

• 4-star rating in the 2013 HBF/NHBC National New Homes Customer Satisfaction Survey
• Nine Persimmon site managers won Pride in the Job Quality Awards

Environmental Metrics

ESG Focus Areas

• Sustainable homes
• Excellent customer focus
• Robust health and safety
• Our environment
• Our people
• Our communities

Environmental Achievements

• Construction waste recycled 92% (+2% from 2014)
• Average energy efficiency of new homes (SAP) is 83 (40% more energy-efficient than existing housing stock)

Social Achievements

• Provided £46m of community infrastructure, schools and open space
• Launched Community Champions campaign, supporting 548 organisations and donating over £516,000
• Increased number of trainees and apprentices by 32% to 580 employees
• Provided over 10,210 training days to employees (average 2.4 days per employee)

Governance Achievements

• Complied with the UK Corporate Governance Code 2014

Climate Goals & Targets

Environmental Challenges

• Achieving implementable detailed planning consents
• Resourcing sites with skilled labour
• Increased demand for skilled labour and materials
• Maintaining a high level of compliance with health and safety standards

Mitigation Strategies

• Disciplined growth of the business to meet market demand
• Closely managing work in progress levels and matching supply to demand
• Comprehensive management systems to ensure regulatory compliance
• In-house training programmes for apprentices and mature trainees
• Strong control over development costs and work in progress
• Improved build programme management to capture productivity gains

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Space4 system (modern method of construction using off-site factory based manufacturing techniques)

Environmental Metrics

ESG Focus Areas

• Our Customers
• Our People
• Our Wellbeing
• Our Environment
• Our Communities

Environmental Achievements

• Waste recycled increased to 93% (2015: 92%)
• All homes built were assessed for energy efficiency against the Standard Assessment Procedure (SAP) with an average rating of 83.
• Space4 produced c. 5,500 timber frame and roof cassette kits in 2016. A further 1,666 homes in Scotland were built using timber frames from third party suppliers. In total, over 45% of the homes we built in 2016 included a form of off-site manufacturing.
• The average CO2 emissions of our motor fleet reduced by 4% from 105 g/km in 2015 to 101 g/km in 2016.
• Commissioned our own concrete brick factory which will have the capacity to produce 80 million concrete bricks a year. These are more sustainable than clay bricks, using less energy during manufacture and will secure availability of a key material component.

Social Achievements

• Increased employees to 4,526 people in 2016 (2015: 4,188)
• The amount of training provided to our workforce increased to 10,550 days (2015: 10,212).
• Re-accredited by Innovatec AS at the Silver Level for Equality in Employee Management and Service Delivery.
• Delivered 2,218 homes to Housing Associations in 2016 (2015: 2,147). In addition, we delivered a further 230 affordable homes to our communities on a discounted open market value basis and using shared equity scheme facilities. The total value of affordable houses we delivered in 2016 was c. £262 million.
• Invested £65 million in new community facilities, including schools and public open spaces in 2016 (2015: £47 million).
• Donated £628,000 to community groups and charities through the Community Champions initiative in 2016. A further £108,000, including fundraising by our employees, was donated to other charitable causes making the total charitable donation in 2016 £736,000 (2015: £672,000).

Governance Achievements

• Changed our reporting line so that the Corporate Responsibility Committee now reports directly to the Board.

Climate Goals & Targets

Environmental Challenges

• Sufficient supply of skilled labour
• Physical/weather-related risks – the changes in weather patterns and frequency of weather events, particularly storms and flooding, that may increase the likelihood of disruption to our construction process
• Regulatory risks – changes to national regulation resulting in environmental and other standards which could cause additional planning delays and increase our construction and compliance costs
• Financial risks – the availability of mortgages and house insurance and thus consumer demand
• Product risk – meeting increased Government and customer demands for sustainable housing
• Supply chain risk – ensuring that key materials used in the build process are consistently and readily available.
• Reputational risk – meeting the expectations of customers, shareholders and other stakeholders, protecting our reputation and ensuring our ability to adapt to changing consumer and regulatory needs
• Health and safety risk – ensuring the health and safety of our employees, subcontractors, home owners and visitors to our construction sites
• Human Resource risk – our ability to attract, retain and motivate employees of the requisite quality and with the relevant skills to deliver our business strategy

Mitigation Strategies

• Investing in our workforce, ensuring that everyone has the training and development they need to perform to their maximum.
• Creation of the Home Building Skills Partnership
• Creating a culture that motivates and rewards our colleagues for their performance and allows them to share in our success.
• Construction of our brick factory for the manufacture of concrete bricks for use on our developments.
• Improved communication processes with customers prior to them moving into their new home
• Strengthened build management processes to manage delivery of their new home to expected timeframes.
• Improved processes to demonstrate the features of the new home to customers, assistance with identifying any small remaining issues on moving in day and providing improved systems and processes for our customer care teams to support the prompt rectification of any outstanding matters.
• Introduced customer care performance measures for relevant employees’ remuneration

Supply Chain Management

Responsible Procurement

• Preference for locally sourced goods, including recycled and reclaimed materials

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns and frequency of weather events, particularly storms and flooding

Transition Risks

• Changes to national regulation resulting in environmental and other standards

Sustainable Products & Innovation

• Space4 technology
• Concrete bricks

Environmental Metrics

ESG Focus Areas

• Customers
• People
• Wellbeing
• Environment
• Communities

Environmental Achievements

• Reduced total operational carbon footprint by 5% to 30,830 tonnes CO2e (2016: 32,599 tonnes CO2e)
• Reduced greenhouse gas emissions per home sold by ~10% to 1.92 tonnes CO2e (2016: 2.15 tonnes CO2e)
• Improved Carbon Disclosure Project score from D to C
• Brickworks began production in November, manufacturing over 3 million concrete bricks

Social Achievements

• Increased number of new homes sold to 16,043 (2016: 15,171)
• 79.1% of customers would recommend Persimmon (2016: 74.6%)
• Delivered 3,005 affordable homes (2016: 2,448), valued at £348 million (2016: £262 million)
• Contributed £64 million to local communities through planning contributions (2016: £65 million)
• Persimmon Charitable Foundation donated £748,842 to good causes

Governance Achievements

• Reaccredited by Innovatec AS at the Silver Level for Equality in Employee Management and Service Delivery
• Signed up to the Home Building Skills Pledge
• Regularly engages with stakeholders to understand their concerns

Climate Goals & Targets

Environmental Challenges

• Skills shortage in the construction industry
• Changes in weather patterns and frequency of weather events
• Changes to national regulations
• Reduction in the availability of mortgages and house insurance
• Failure to meet increased Government and customer demands for sustainable housing
• Inability to access key materials
• Reputational risk
• Health and safety risks

Mitigation Strategies

• Commitment to apprenticeships and ex-forces trainees
• Use of Space4 modern method of construction
• Comprehensive management systems to ensure regulatory compliance
• Monitoring lead indicators on the UK housing market
• Aligning homes and developments with the 12 Building for Life principles
• Manufacturing own components (Brickworks and Space4)
• Regular stakeholder engagement
• Comprehensive management systems and controls overseen by Group Health & Safety Department

Supply Chain Management

Responsible Procurement

• Supplier Principles

Climate-Related Risks & Opportunities

Physical Risks

• Changes in weather patterns and frequency of weather events

Transition Risks

• Changes to national regulations

Sustainable Products & Innovation

• Concrete bricks
• Space4 timber frame system
• LED bulbs

Awards & Recognition

• Innovatec AS Silver Level for Equality in Employee Management and Service Delivery

Environmental Metrics

ESG Focus Areas

• Climate change action and resilience
• Social value and enhancing communities
• Health and safety

Environmental Achievements

• Reduced greenhouse gas emissions per home sold from 2.03 tCO2e in 2020 to 1.82 tCO2e in 2021
• Switched all offices and manufacturing facilities to 100% renewable energy
• Reduced NHBC Reportable Items by 17%
• Operational waste recycled 94%

Social Achievements

• Achieved a five-star rating from the HBF customer satisfaction survey
• Improved eight-week customer satisfaction score to 92.0% (from 89.7% in 2020)
• Donated c.£1.8m to around 900 charities and community groups
• Delivered 2,759 affordable homes

Governance Achievements

• Established a Sustainability Committee reporting directly to the Board
• Created a new Group Sustainability Director position
• Included an environmental metric as part of executive and management remuneration plans for 2022

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (indirect emissions from supply chain, homes in use, and employee commuting)
• Improving data capture and reporting methodologies for operational emissions
• Addressing under-representation of women and ethnic minority groups in the workforce

Mitigation Strategies

• Engaged an external consultant to calculate the embodied carbon of homes
• Engaged with major suppliers to support the embodied carbon study
• Improved diesel fuel use data capture on sites
• Introduced electric vehicle options into the car fleet
• Commissioned a Diversity & Inclusion Review

Supply Chain Management

Responsible Procurement

• Partnership with Supply Chain Sustainability School
• Engagement with top suppliers to utilize carbon reporting tools and training
• Encouraging high-risk suppliers to use Modern Slavery training

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB

Third-party Assurance: Bureau Veritas (limited assurance)

Sustainable Products & Innovation

• Timber frame manufacturing (Space4)
• Infra-red heating
• Solar PV panels
• Air source heat pumps
• Electric vehicle charging

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Engagement
• Workforce Diversity & Inclusion
• Build Quality & Safety
• Ethical Supply Chain

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions to 21,973 tonnes CO2e (2022: 25,017 tonnes)
• 98% of operational waste recycled (2022: 96%)
• Construction of a second zero-carbon home
• Trial of hybrid diesel generators demonstrating significant diesel usage and cost savings

Social Achievements

• Improved HBF customer satisfaction score to 92.9% (2022: 89.6%)
• 43% improvement in NHBC reportable items
• Donated approximately £734,000 to 384 charities (2022: £676,000)
• Improved Trustpilot score for Persimmon Homes to 4.2 (2022: 3.9)
• Launched Persimmon Pride network for LGBTQ+ colleagues
• 81% employee engagement score (comparable to four-year average)

Governance Achievements

• Signed English and Welsh Building Safety Remediation Agreements
• Appointment of Andrew Duxbury as CFO
• Appointment of Alexandra Depledge MBE and Colette O’Shea as Independent Non-Executive Directors
• Updated Remuneration Policy approved by over 98% of shareholders
• Inclusion of an environmental metric in the performance condition for 2023 share awards

Climate Goals & Targets

Environmental Challenges

• Lower volumes due to challenging macroeconomic backdrop (higher mortgage rates, economic uncertainty)
• Build cost inflation (c. 8-9% in 2023)
• UK planning system challenges (lengthy processes, uncertainty around local housing plans)
• Labour shortages in the construction industry
• Affordability challenges for first-time buyers
• Legacy building safety remediation works

Mitigation Strategies

• Enhanced planning approach resulting in c. 11,000 plots achieving detailed consent
• Disciplined cost control, including work in progress investment matching demand
• Vertical integration (Brickworks, Tileworks, Space4) to enhance supply chain resilience and mitigate material costs
• Proactive supplier negotiations
• Apprenticeship and graduate recruitment programs
• Sales incentives and part exchange offerings
• Participation in Government’s First Homes scheme

Supply Chain Management

Responsible Procurement

• Supplier Principles
• Inclusion of environmental and sustainable criteria in RFIs and RFQs
• Quarterly supplier reviews
• Partnership with Supply Chain Sustainability School
• Requirement for FSC or PEFC certified timber

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress
• Drought stress
• Precipitation
• Flood
• Windstorms
• Sea level rise
• Subsidence
• Infrastructure stress

Transition Risks

• Increasing cost of raw materials
• Pricing of greenhouse gas emissions
• Climate-related regulations impacting products and services
• Changing consumer preferences
• Technology shifts
• Supply chain resilience
• Cost of capital
• Low carbon technology availability
• Skill shortage impacting ability to install low carbon technology
• Reputation investment risk
• Stakeholder risk
• Employee risk

Opportunities

• Increased demand for energy-efficient homes
• Green premiums on new build properties
• Reduced embodied carbon through vertical integration

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Ernst & Young LLP (limited assurance)

Sustainable Products & Innovation

• Zero-carbon homes
• Energy-efficient homes with air source heat pumps, improved insulation, and solar panels
• Use of TopHat modular units

Awards & Recognition

• HBF five-star rating
• Princess Royal Training Award