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Our Environmental, Social and Governance Commitment

Environmental, Social and Governance (ESG) issues sit at the very heart of what we do: delivering superb public services that transform outcomes and make a positive difference for our fellow citizens.

We support governments in delivering their public policy commitments, often in very sensitive areas. Our role is to deliver specific elements of those policies in the most effective, efficient and caring manner, working with our customers to maximise the value generated for society, in whose best interest those policies are developed.

Our approach is structured around our key stakeholder groups. This enables us to maintain focus on achieving an optimal balance of sustainable value creation for all, regardless of the scope, scale, pace and direction of change.

Where we operate, what we do and who we serve is carefully governed.  This ensures we think very carefully and challenge ourselves about what and where we do business, the impact that we will have and that any new business aligns with our strategy, Values and ESG principles.

Our social agenda

It is our Social impact that most defines our ESG agenda.  We serve society as a public service provider, an employer and a participant in global industry, infrastructure and economy.

  • We are a team of more than 50,000 people. Our workforce is vibrant, diverse and dynamic – drawn primarily from the communities in which we operate and reflective of the communities we serve.
  • We perform a fundamental role in the functioning of an orderly society: protecting national and international security interests; safeguarding those in our care and beyond; facilitating the safe and efficient movement of people and goods; enhancing patient experience and care quality; and contributing to the wellbeing of citizens and communities.
  • We strive to:
    • behave with integrity and treat people with respect, within the bounds of expected individual and corporate behaviour, with regard for relevant laws and regulatory requirements, with sensitivity to local cultures and with respect for human rights;
    • promote and enable the diversity, development, wellbeing and safety of our people;
    • understand the complex social challenges that shape our chosen markets and help our customers address them in order to create positive and sustainable outcomes for society; and
    • be responsible in how we manage our impact on the communities and economies in which we operate.

Our environmental agenda

We are committed to limiting our environmental impact.

  • We adopt sustainable business practice to reduce the environmental impacts of the services we deliver, the products and services we buy and the ways in which we operate.
  • Where we have direct control of environmental impacts, activities are managed locally. Across more than two thirds of our business we work on our customers’ premises and are not in direct control of environmental impacts. In such cases, we work collaboratively with our customers, supporting them in applying their own environmental management systems and objectives.
  • We strive to:
    • build a culture of environmental stewardship that drives improvement;
    • minimise adverse environmental impact through effective environmental management systems;
    • actively manage environmental hazards and risks arising from our activities and services; and
    • monitor our performance and investigate any incidents that occur.

Our governance agenda

For Serco, governance is not an exercise in compliance, nor is it a specific form of management – it is an essential part of our public service ethos.

  • Our governance structure seeks to enable effective direction, control and assurance of the business, including where and how we operate and how we manage our responsibilities to stakeholders.
  • Our comprehensive corporate governance framework defines responsibilities and accountabilities to safeguard long-term shareholder value.
  • Our management framework, the Serco Management System, defines ‘what’ we do through policies, standards and procedures whilst our Code of Conduct defines our expectations of ‘how’ we do it, underpinned by our Values and commitment to behave with integrity and treat people with respect.
  • We strive to:
    • maintain an effective system of internal control that safeguards the best interests of our stakeholders, assets and reputation;
    • manage our business within an organisational structure where responsibilities and accountabilities are clearly defined and allocated appropriately;
    • manage our exposure to risks through robust procedures and controls;
    • make sure our legal entities comply with relevant laws, properly record all commercial, business and legal transactions and retain material documents, and correctly report their business activities; and
    • meet our regulatory obligations in relation to Serco’s listing on the London Stock Exchange.

Management and governance of our ESG agenda

Our Corporate Responsibility (CR) framework drives our ESG agenda. Structured around our key stakeholder groups, it brings all our material ESG challenges together into one model.  Each element in our CR framework is firmly embedded in how we grow and manage our business – defined and driven by specific Group strategies and policy systems, with appropriate Board and Executive oversight, and dedicated leadership at both Group and Divisional levels.

In determining ‘what’ activities we undertake and ‘where’ we do business, we apply formal governance processes, standardised programme management frameworks and share best practice to balance risk with innovation, assure the operational viability of our proposals and retain objectivity whilst challenging ourselves to make sure we understand and provide appropriately for the ESG impact that we have and the value we create.

Board oversight of our ESG agenda is enabled through its standing committee, the Corporate Responsibility Committee (CRC). The principal focus of the CRC is on holding the organisation firmly to its Values and standards of behaviour.

Reporting on our ESG responsibilities

We work to keep our ESG reporting at a level we believe appropriate for our business and useful for our stakeholders. Our approach is determined not only by reporting obligations but also to provide insight into what matters most to our business and our stakeholders and to share our progress in each area. This provides assurance that we are properly addressing our responsibilities and communicating our position and performance across relevant ESG criteria.

For more information, please visit www.serco.com/about/corporate-responsibility and www.serco.com/about/our-policies

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