Morgan Sindall : 2022 Responsible business data sheet

Morgan Sindall Group plc

Responsible Business Data Sheet 2022

AT A GLANCE

We are a leading UK construction and regeneration group.

ConstructionRegeneration

Our purpose is harnessing the energy of our people to achieve the improbable.

Through five divisions, we deliver construction and regeneration for the public, commercial and regulated sectors.

Our talented teams, empowered by our philosophy of decentralisation, work hard to exceed the expectations of all our stakeholders.

Construction & Infrastructure

Revenue

£1,569m

Education, healthcare, commercial, industrial, leisure and retail markets.

morgansindallconstruction.com

Highways, rail, energy, water and nuclear markets.

morgansindallinfrastructure.com

Infrastructure includes BakerHicks design activities based out of the UK and Switzerland.

bakerhicks.com

Fit Out

Revenue

£968m

Fit out and refurbishment in commercial, central and local government offices, as well as further education.

overbury.com

Office interior design and build services direct to occupiers.

morganlovell.co.uk

Property

Services

Revenue

£163m

Response and planned maintenance services for social housing and the wider public sector.

morgansindallpropertyservices.com

Partnership	Urban
Housing	Regeneration
Revenue	Revenue
£696m	£244m

Partnerships with local	Transforming the
authorities and housing	urban landscape
associations. Mixed-	through partnership
tenure developments,	working and the
building/developing	development of
homes for open market	multi-phase sites
sale and for social/	and mixed-use
affordable rent, design	regeneration.
and build house	museplaces.com
contracting and planned
maintenance and
refurbishment.
corporate.lovell.co.uk

02 Morgan Sindall Group plc Responsible Business Data Sheet 2022

CONTENTS

2022 HIGHLIGHTS

What it means to be	04
a responsible business
Our responsible business strategy	05
Listening to our stakeholders	06
Our 2022 performance	07
ƒ	Protecting people	07
ƒ	Developing people	08
ƒ	Improving the environment	09
ƒ	Working together with	11
	our supply chain
ƒ	Enhancing communities	12
External accreditations	14

This data sheet forms part of our annual reporting suite that includes our 2022 annual report, our 2022 gender pay gap report, our 2022 modern slavery statement and our 2022 GRI (Global Reporting Initiative) report. It includes our performance against our targets together with a wider set of metrics used to track progress against our responsible business strategy, our social and environmental impact and the effectiveness of our initiatives. For transparency we have included, where possible, performance data for the past three years to show long-term trends.

More information on the projects and commitments behind these figures, including detail on our divisions' activities during the year, can be found in our 2022 annual report, and further information is

Financial strength

£3,612m

Revenue

(2021: £3,213m)

£136.2m

Profit before tax (adjusted*)

(2021: £127.7m)

£256m

Average daily net cash

(2021: £291m)

101.0p

Total dividend per share

(2021: 92.0p)

Social and environmental value

882

Apprentices and sponsorships for graduates and national vocational and professional qualifications (2021: 807)

A

CDP score for our climate change disclosures and performance for the third year running

AAA

MSCI2 environmental, social and governance rating for the second year running

67p

Monetary value of social activities per £1 of project spend on 110 projects measured

(2021: 71p on 112 projects measured)

available on our website.

2022 data has been taken from the 2022 audited annual report for Morgan Sindall Group plc.

1. Adjusted excludes the impact of intangible amortisation and exceptional items.
2. MSCI provides decision support tools and services for the global investment community.

03 Morgan Sindall Group plc Responsible Business Data Sheet 2022

WHAT IT MEANS TO BE A RESPONSIBLE BUSINESS

Making our business better and better for our stakeholders

As our operational Scope 3 emissions are only a small proportion of our total indirect emissions, we view our 2030 target as our starting point. In 2022, we extended our net zero goal to include total Scope 3 emissions. This is a much wider definition of Scope 3 that incorporates carbon embodied in materials, those emitted during construction and those estimated to be emitted from operating the buildings for 60 years after we hand them over to the client. We are now targeting 2045 to be net zero in our total emissions. As we did with our 2030 operational targets, we are getting our new targets revalidated by the Science Based Targets initiative (SBTi) which will give our plans real substance and validity. It's important to note that, while we have made good progress on our

Our supply chain is very important to us;

we regard them as partners and are strongly committed to paying them on time. Looking after our own people is also essential, and our health and safety data are very clear and tangible measures. Our safety performance has improved over the last 12 months, with our reportable accidents reducing to 24 from 44

in 2021; however, this requires a continuous and never-ending focus. In terms of making our business better, diversity in all its forms, and particularly inclusivity, is business critical.

We know that our diversity stats need improving and while we have made good progress to address inclusivity across the Group, increasing our diversity remains a challenge and we've still got a way to go.

John Morgan, Chief Executive

Our responsible business strategy is framed around five Total Commitments to our stakeholders: protecting people, developing people, improving the environment, working together with our supply chain and enhancing communities. We aim to be fully transparent in everything we do, and we report on our performance against our Total Commitments every year. I am very pleased that in 2022, for the second year running, we were recognised for our achievements across the environmental, social and governance spectrum and awarded an 'AAA' rating by MSCI.

In terms of our environmental performance in 2022, we achieved an 'A' score from CDP on our leadership on climate change, for the third year running. We reduced our Scope 1, Scope 2 and operational Scope 3 carbon emissions by 4% from 2021 despite a higher level of activity in the year, and by 40% against our 2019 baseline. We are on track to achieve our accredited, science-based operational net zero pathway by 2030.

carbon emissions since 2010, we have further work to do to address the challenge of total Scope 3 emissions.

Improving the environment is not just about carbon emissions, it's also about reducing waste and increasing biodiversity. We reduced our total waste by 57% in 2022, diverting 96% from landfill, and invested in two UK-based carbon offsetting projects that will yield additional biodiversity benefits.

Social value for communities is a prominent factor in our bidding, particularly with the public sector, with clients asking us how we can contribute more. Delivering social value is a business imperative, as well as being the right thing for us to do as an organisation.

Our activities in this area are numerous, well embedded across the Group and delivered locally, at an individual project level.

We are committed to being a responsible business. We aim to be transparent about what we're good at and what we're not so good at, what we do, how we do it and what we're trying to achieve. This is the approach that will help us become better.

John Morgan

Chief Executive

04 Morgan Sindall Group plc Responsible Business Data Sheet 2022

OUR RESPONSIBLE BUSINESS STRATEGY

Our Total	We have been using our five
Total Commitments as a
Commitments to	framework for our responsible
our stakeholders	business strategy since 2008.
For each Commitment, we have one or more
	formal key performance indicators (KPIs) in place
	against which we measure our progress using
	medium- and long-term quantitative targets.
	We regularly review our targets to ensure they
Protecting	are sufficiently stretching. In addition to the KPIs,
we monitor our performance against a wide
people
range of metrics.
	+ See pages 7 to 13 for our performance in 2022
	against our KPIs, targets and wider metrics.
	Developing
	people

Enhancing	Our Total
communities	Commitments

Improving the

environment

Working together with our supply chain

Our Total Commitments align with the UN Sustainable Development Goals to 'end poverty, protect the planet and ensure prosperity for all'. We have identified the following six goals as those where the Group can make the most impact:

05 Morgan Sindall Group plc Responsible Business Data Sheet 2022