GO NORTH EAST ENVIRONMENTAL & SOCIAL REPORT 2005 OUR RESPONSIBILITY Paul Matthews A message from the Managing Director Welcome to this, our first corporate social responsibility report. We have been serving bus users in the North East for over 100 years. In this time, we have learned that the secret of being a successful business is to be a responsible business.We take our responsibilities very seriously. Last year, we took part in a programme of meetings and discussions to check which responsibilities our stakeholders considered to be priorities. Issues such as convenience, reliability, safety, local air quality and noise all emerged as important. As a result of our work, we have adopted a series of principles that define our responsibilities to both the communities of the North-East and the environment. We are proud of our achievements so far. Over three-quarters of our services are ‘Easy Access’, designed to help people with prams, pushchairs or wheelchairs, or with other mobility issues.We believe that investing in new technology is good for safety through CCTV, good for services and reliability through satellite vehicle tracking and realtime passenger information, and good for the environment as we reduce our emissions. We serve and depend on the community around us. Our responsibilities go beyond running services.We have a duty to help our communities flourish.This was why we set up our Community Bus Miles Scheme, which helps local groups and charities extend their work in the communities.This Scheme goes from strength to strength. We know that people want to learn more about what we are doing and this is why we have produced this report.We are committed to improving the way that we run our business. Let us know if you have any comments, views or ideas on how we can do so, or on any further issues that should be covered in this report. Paul Matthews Managing Director Contents About Go North East About The Go-Ahead Group plc About this report 2 The Marketplace 4 The Workplace 6 The Environment 8 The Community IBC Auditing & verifying this report 1 Go North East Environmental & Social Report 2005 Who we are Go North East is the leading bus operator in the north of England operating through its subsidiaries Go Gateshead, Go Wear and Go Northern. During the past year we have operated around 800 buses on local services in and around Newcastle upon Tyne, Durham, Gateshead, Sunderland, Darlington and the surrounding areas. About The Go-Ahead Group plc Go North East is the founding company of the Go-Ahead Group plc. Go-Ahead is now a major provider of transport services across the UK employing over 20,000 people and carrying around 700 million passengers. Its operations span bus, rail, parking and aviation support services. Go-Ahead offers its operating companies freedom to develop and run their businesses: local people make local decisions on running local services. Go-Ahead also provides a common framework for managing companies’ impacts on society and the environment.This report describes our performance against that framework. About this report This report describes our performance in meeting our responsibilities as a business in the 12 months to 2nd July 2005. It is divided into four main sections, which describe the ways in which our business impacts on the world around us, and our responsibilities for managing these impacts: Marketplace – how we run our services Workplace – the issues that affect the people who work for us Environment – our impact on the environment and how we manage and reduce it Community – our role in the communities where we operate To keep this report short, we have placed our full report containing a lot more information on the web www.go-ahead.com/corporateresponsibility NORTH TYNESIDE NEWCASTLE UPON TYNE SOUTH TYNESIDE SUNDERLAND GATESHEAD STANLEY DURHAM CONSETT DARLINGTON MIDDLESBROUGH Our company structure ensures that local people make local decisions about local services 1 2 Go North East Environmental & Social Report 2005 THE MARKETPLACE Our responsibilities in the marketplace We want people to travel by bus as our business success depends on our ability to attract or retain passengers. Increasing bus usage is good for our business, good for the environment and good for the community, since bus services play a key role in combating social exclusion; however, the realities of bus transport make this a difficult objective to achieve. Road traffic has grown by 80% since 1980, but the vast majority of this growth is due to an explosion in car ownership. As incomes rise, bus usage falls.The number of passengers using our services fell by 2% last year. Despite the market conditions, stabilising and growing passenger numbers are objectives we share with our local authority partners. We are committed to working in partnership with the Regional and Local Authorities, local employers and bus passengers to make sure that we make the case for putting the bus at the heart of a sustainable transport strategy for the region. Our consultations with employees, passengers and other stakeholders have confirmed that increasing travel by bus is seen as our main responsibility, and indicated the factors that most influence people to choose our services: Our responsibility: to provide reliable, convenient and punctual services This year saw the re-launch of Go North East’s X66, a fast, frequent, regular and non-stop service connecting the MetroCentre shopping centre and the Gateshead Interchange. X66’s articulated buses’ extra accessibility, comfort and safety features are now complimented by the newly opened Centrelink bus way.This is helping deliver consistently reliable journeys via a dedicated bus way along the bank of the river Tyne. X66 still offers a more personal service manned by dedicated drivers, its own in-service cleaner at the interchanges and a dedicated supervisor. X66 Centrelink represents a major investment in the future of bus travel in the North East. Reliability, convenience and punctuality Accessibility for all Safety and security Affordability We are therefore reporting our performance in each of these key areas. Articulated, low-floor buses enhance comfort and reliability on the X66 route The Marketplace Our responsibility: ensuring accessibility for all, particularly people with disabilities Go North East was the first bus company to introduce an Easy Access Guarantee onto its bus network. Traditionally, bus design has been geared towards the able bodied. Low-floor buses fitted with powered ramps represent a major step forward in improving access for all. Currently 54% of our whole fleet is made up of low-floor buses and we have more than 75% of our regular daily services operating with our Easy Access buses. This year saw the X10 service between Newcastle and Middlesbrough convert to accessible buses, and we have set new targets to increase the proportion of low-floor buses on our services for 2005/6. Passenger journeys Vehicle kms travelled 69.06m 59.62m % of low floor buses in fleet 54 55 44 03 04 05 Size of bus fleet 810 757 842 04-05 Our responsibility: ensuring the safety and security of passengers, employees and the general public 03-04 Safety of passengers, staff and the general public is our first priority. We have an established Health & Safety Management System to meet this objective. Vehicle accidents per million vehicle km travelled We have invested almost £1 million in CCTV equipment and support as an effective means of deterring and detecting crime whilst improving personal safety and passenger confidence. Nearly half of our buses are equipped with CCTV systems. Our responsibility: affordability to ensure as many as possible can use our services Go North East offers a wide range of tickets designed to save passengers money every time they travel.The Go’n’Save cards offer savings for both regular travellers and less frequent users and make bus travel far more affordable.The Go’n’Save schemes are available for one day, one week, one month or one year, and in a variety of flexible packages. Extra discounts incentivise purchase off bus. 02-03 13.68 12.96 10.87 04-05 03-04 02-03 Average age of fleet: Government-Industry target vs Go North East (years) Government-Industry target (max) 7.41 6.63 8 6.67 Average fleet age 03 04 05 VOSA PSV vehicle test pass rate Go North East National average 98.87% 84.13% Scheduled km operated buses Industry target 98.7% 99.5% 3 4 Go North East Environmental & Social Report 2005 THE WORKPLACE Our responsibilities in the workplace Our business success and ability to run our services depend on the 2,079 people we employ, over three-quarters of whom have direct contact with the passengers we serve. Our responsibility is to provide a positive work environment conducive to the recruitment and retention of our people. We are committed to being a good employer. This means treating people well regardless of gender, race, age, or where practical, disability. We invest in a range of employee benefits that help us to recruit, retain and motivate our employees. Our responsibility: training & development We invest in our people and provide opportunities to improve and to develop their professional skills. We offer driver training for those who are new to the company and driver refreshers for experienced staff. We also support the development of customer service and customer care skills. Many of our staff have pursued additional vocational qualifications with our support. Trainees out ‘on manoeuvres’ Chris Moyes (Go-Ahead’s Chief Executive) thanks Larry Singh for 35 years of service The Workplace Our responsibility: maintaining recruitment levels The challenges of bus driving can make it difficult to recruit and retain good people. We recruited 546 people last year and are looking at new and innovative ways to fill vacancies. Poland has a good supply of qualified bus drivers looking for new opportunities, and focusing recruitment efforts on the country has enabled us to employ 70 experienced Polish drivers, with more to come. A special induction programme for these recruits covers language and cultural training as well as intensive support on the Highway Code. All new drivers have a designated mentor and are accompanied until they are ready to go solo. Our bus drivers have given enthusiastic help introducing their Polish colleagues to the regional culture. As a major local employer and recruiter, we advertise job opportunities through newspapers and radio, as well as on our buses and vans, on our website and in depots. We distribute leaflets at job centres and hold recruitment open days. Retention is being improved through improved basic pay, better terms and conditions and a wider range of employee benefits. Number of employees 2079 2077 2152 04-05 03-04 02-03 Diversity by gender (Male) 1901 1891 1962 04-05 03-04 02-03 Diversity by gender (Female) 04-05 03-04 02-03 178 186 190 Diversity by age 16-19: 0.5% 20-29: 9.5% 30-39: 22.4% 40-49: 30.8% 50-59: 29.5% 60-64: 6.9% 65+: 0.3% Physical assaults on staff per million passenger journeys 04-05 03-04 0.10 0.41 0.84 02-03 Employee turnover rate (%) 04-05 03-04 02-03 Detailed employment information is kept up to date on the website 18.5 20.3 25.8 5 6 Go North East Environmental & Social Report 2005 THE ENVIRONMENT Our responsibilities to the environment Bus companies have positive and negative impacts on the environment. Our buses are a source of greenhouse gases and local air pollutants, whilst depots and garages use energy for maintenance, heating and cooling. Equally greater use of our buses can produce reduced emissions from cars. Our main responsibility is to minimise the environmental impact of our buses, particularly emissions and noise. We do this through good maintenance, investment in our fleet and the use of Continuously Regenerative Traps (CRTs) which control and reduce emissions. Environmental impact is minimised through good maintenance and investment Our responsibility: reducing congestion People are travelling more and more. Overall, we travel three times more than we did 50 years ago and most of this explosion has been in travel by car. Cities such as Durham, Newcastle and Sunderland are centres for students, tourists, visitors as well as working cities. Getting the right balance between the needs of pedestrians, drivers, cyclists and the bus is critically important. Public transport is part of the solution and is seen to be so. More passengers can travel in a bus than a car, bringing benefits for reduced environmental impact and congestion. We work closely with local authorities throughout our operating area to promote and improve the service that we offer. The Environment Our responsibility: reducing emissions We must earn the right to put bus travel at the heart of an environmentally sustainable transport strategy by managing our own impact on air quality. VOSA emissions pass rate 100% 99.14% The average age of our fleet is 6.67 years, substantially less than the Government-Industry target of 8 years. New vehicles have lower emission specifications than older vehicles, and we are investing in new buses with emission-reducing CRT traps as standard. We have made further progress on meeting our target to increase CRT traps this year. Go North East A key element of driver training looks at steady driving and ensuring that engines are not idling unnecessarily, techniques that further reduce emissions.This is part of our commitment under our partnerships with local councils. % of fleet with Euro II engines or above National average 71 67 04-05 03-04 54 02-03 % of fleet with CRT 49 44 04-05 03-04 30 02-03 Air pollution NOx (g) per passenger journey 7.82 7.81 7.77 04-05 03-04 02-03 We are purchasing low emission buses powered by Euro IV engines Our responsibility: testing new technology The standard for Go-Ahead is to power our buses using Ultra Low Sulphur Diesel.The use of ULSD together with retro-fitting of CRTs has helped to reduce our vehicles’ emissions substantially. We consistently test the environmental performance and commercial viability of alternative approaches.This year, we carried out a trial of a biodiesel fuel, a cleaner-burning diesel fuel made from natural, renewable sources such as vegetable oils. Whilst the performance of the product met our requirements, it is currently not commercially viable to use. The UK Government is aware of and considering the position. Our responsibility: measuring our performance The Go-Ahead Group came top of the public transport companies that participated in the Business in the Community Corporate Responsibility Index 2004.The index criteria were made more challenging in 2004. We improved our score to 81%. In the Environment Index, we scored 85%. Air pollution PM (g) per passenger journey 04-05 03-04 02-03 0.12 0.16 0.22 Air pollution CO2 (kg) per passenger journey 0.81 0.80 0.77 04-05 03-04 02-03 Air pollution CO (g) per passenger journey 1.00 1.10 1.16 04-05 03-04 02-03 Air pollution HC (g) per passenger journey 04-05 03-04 02-03 0.53 0.68 0.88 7 8 Go North East Environmental & Social Report 2005 THE COMMUNITY Our responsibilities to the community Bus companies are an integral part of the community; we provide essential services for the people that live and work in the region, as well as other visitors. Running our services is the main way that we contribute towards improving the commercial and social wellbeing of the local area. Successful communities are in our interests as a local service provider, and we contribute through encouraging employee fundraising, providing cash donations and offering free travel as prizes for good causes. Community spend Community Bus Miles make sport more accessible for young people The Go North East community investment programme is the Bus Miles Scheme, which makes donations and has free miles for organisations giving young people improved access to sport and educational opportunities. Bus Miles, along with the school buses that we provide, aims to build relationships with our future customers. Organisations benefit directly through drawing on their Bus Miles account, but they can also be used to secure support from other funders. Partners include Newcastle Falcons Rugby Club, Gateshead City Learning Centre and Sunderland AFC Foundation. £45,181: 13.8% of total Group spend (£327,470) At a local operating company level community investment is driven through ‘support in kind’ activities, while the Group Head Office handles direct financial donations. The figures above include an element of both these community investment streams. SUMMARY INDEPENDENT VERIFICATION AND AUDIT STATEMENT The SMART Company was commissioned by the Go-Ahead Group plc to undertake an independent review of their Environmental and Social Report for the period July 2004 to June 2005.An Associate Director, who did not participate in the data gathering and report writing process, conducted the verification. The verification was undertaken using the principles of the assurance standard AA1000: materiality completeness and responsiveness.This is the fourth consecutive year that SMART has provided assurance for Go Ahead and we have undertaken a rolling programme of audits, ensuring all operating companies have been audited at least once during this period. In 2005 a sample of three operating companies was visited as part of the verification process. Sample checks of the data sources were undertaken and interviews were conducted with members of the management team who had been responsible for data collection.We are therefore satisfied that this report is a reliable and accurate reflection of the performance of the company.A full verification report, containing a more detailed analysis together with recommendations for developing the processes for measuring, managing and reporting Go-Ahead plc’s environmental and social impacts, can be found at www.go-ahead.com/corporateresponsibility. Helen Rushton, Associate Director, The SMART Company, September 2005 Go-Ahead Go North East is part of The Go-Ahead Group plc. Members of the group operate bus services (in the south of England, North East England and London) commuter train networks, aviation ground handling and parking services. Other companies within the group are: • aviance • Brighton & Hove Bus Company • London Central & London General • Meteor • Metrobus • Oxford Bus Company • Southern Railway • Thameslink • Wilts & Dorset More information on how Go North East manages its responsibilities can be found at www.go-ahead.com/corporateresponsibility If you have any comments, views or ideas on how we might improve, or have any thoughts on other issues that we should address in this report, please write to: Paul Matthews Managing Director Go North East 117 Queen Street, Gateshead NE8 2UA Telephone: 0845 60 60 260 Email: [email protected] This report was put together by The Go-Ahead Group with help from The SMART Company, and designed and produced by Rare Corporate Design, London. Printed by Beacon Press using their environmental print technology which minimises any negative environmental impacts resulting from the printing of this document. includes the use of vegetable based inks, recycling of 88% of dry waste and 95% of cleaning solvents for future use. Beacon Press uses 100% renewable energy, is a Carbon Neutral company, has ISO14001 & EMAS accreditation and holds the Queen's Award for Sustainable Development. Printed on Revive Matt which is made from 75% post consumer waste and 25% mill broke. In order to minimise the environmental impacts of our reports, Go Ahead is working with The CarbonNeutral Company to assess and 'offset' the greenhouse gas emissions created by the production and distribution of our annual and corporate responsibility reports. 16.64 tonnes of CO2 will be balanced through native forestry Donkleywood, a UK Forestry project in Northumberland, making both these reports CarbonNeutral. 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