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Nationwide Corporate Responsibility Report 2008/9




Nationwide corporate responsibility report 2008/9 We’re different Because you set our agenda Being a building society makes us fundamentally different from the big banks we compete with. We don’t have shareholders, we are owned by our members. So you set our agenda. And we never forget that. Which is why for us ‘Corporate Responsibility’ is so much more than just words that put a gloss on what we do. For us, Corporate Responsibility is central to the way we do business. Our directors in action And I think our members recognise that. They see that we are seeking to run their Society in a prudent, secure and responsible way that puts their needs first. In July 2009 in a survey conducted by Moneywise, Nationwide was named as the financial brand consumers trust most. And for me personally, that public awareness is really important. UK consumers need to know that we offer a real alternative to the banks – an organisation that can compete with the banks in terms of scale and resources – but also an organisation that lives by a different agenda, one set by its members. MoneyActive launch Maxine Taylor So I hope this report on the way we approach our business shows you that we take our responsibilities seriously and that as your building society we are doing all we can to live up to your expectations of us. Of course, I do not want to pretend that everything is rosy. The credit crunch and this recession have created a really tough environment for us and many of our members. We have had to take some hard commercial decisions. However we continue to embrace our responsibilities to our members, the community, our employees and the environment. There will always be more we can do, but I am absolutely convinced that we are heading in the right direction. Comic Relief Day Mark Rennison and Tony Prestedge Graham Beale, Chief Executive DSE event David Rigney and Robin Bailey With origins dating back to 1846, and after a succession of some 100 mergers, we really have become the nation’s building society. Today, we help over 14 million customers with their finances, our total assets add up to some £200 billion and we have over 900 retail outlets. Contents • Our Strategy page 04 • CR Governance page 09 • Finance page 10 • Housing page 18 • Environment page 24 • Community page 31 • Data Tables page 44 To help you get the most out of our Corporate Responsibility (CR) report we’ve highlighted some key messages. Key facts bubble – All our CR activities are based on real social, economic and environmental issues. Look out for the key statistics that have helped shape our CR agenda and share in some of our successes. We work collaboratively with our partners across the private, public and third sector. Look out for this symbol to learn more about how we engage with our stakeholders. CR in ACTION – We’ve included a variety of practical examples to demonstrate the impact of our CR activities. You don’t have to take our word for it. Read what our partners have to say about Corporate Responsibility at Nationwide. In 2007 we asked our membership to confirm whether they were happy for us to dedicate 1% of our pre-tax profits to our Corporate Responsibility activity. 98% of respondents voted yes. Among other things, this report tells you what we’ve been doing with that money. P4 Nationwide Corporate Responsibility Our Strategy Mission statement As a UK based mutual we exist solely for the benefit of our members . We help them and their families meet their financial needs in a sustainable, responsible and secure way - as we have done since 1846, in a manner that is open, honest, and fair co Environmental Management Community Investment m un ity en vi ro m t en m n This year we set out on our new three year CR strategy. It rein Employee Engagement Homeless Support Financial Capability u ho si ng Affordable & Sustainable Housing Since our CR Summary Report was published in September 2009, our strategy wheel has been updated and simplifed in response to employee feedback. Responsible Lending and Savings an ce Supply Chain fin Impact? Take a look… Nationwide Corporate Responsibility P5 Finance Helping with indebtedness. Improving people’s financial capability. Being a responsible lender. orporate sponsibility help Our Homeowner Mortgage Charter spells out our commitment to help people stay in their homes when they run into temporary financial difficulty. We estimate we returned £680 million of benefits to our members in the 2008/9 financial year through better rates and lower charges. Through our MoneyActive programme, we’ve committed £3 million over 3 years to increase the number of financial capability volunteers at Citizens Advice from 100 to 1400, reaching an additional 100,000 people in need. Helping people to manage their finances At children, parents and teachers can all find fun programmes, linked to the National Curricula, including Finance for 4-16 year olds. Over 2.5 million hits in 10 months. 2.5m hits prudent With our ‘Trust Us, Trust You’ campaign, it’s no surprise we’re Responsible Credit Card Award winner for the second year running. Our mortgage arrears are a quarter of the national average – reflecting our prudent lending practices over the long term. P6 Nationwide Corporate Responsibility Housing Supporting affordable housing. Helping the homeless. Encouraging sustainable housing. porate nsibility We’ve joined forces with Shelter, the housing and homelessness charity. As well as exploring potential joint policy we have funded the Shelter Housing Support Service, Bristol, helping 60 families and 56 children. Nationwide provided £100 million of funding for affordable housing in 2008/09. Altogether we currently provide over £9 billion of funding to this sector and some of our employees provide further help, sitting on housing association boards. Nationwide is committed to the principles of low cost home ownership (LCHO) and has been one of the main lenders in this area of the market for more than 20 years. Nationwide supports all current government LCHO initiatives and offers mortgages that help to make home ownership accessible. £100m In partnership with the Royal Institute of British Architects we set up the Nationwide Sustainable Housing Awards in October 2008, to encourage architects and design students to build sustainability into their future designs. While at, 4-11 year olds can find out all they need to know about sustainable housing in a fun and interactive way. Nationwide Corporate Responsibility P7 Environment ate Managing and reducing our direct environmental impact, in particular reducing our carbon footprint; having a positive wider impact through our people and suppliers. bility We continue to provide our online customers the option of paperless statements for FlexAccounts, cardbased savings accounts and credit cards. Despite an increase in the number of accounts, the volume of paper we use in administrating them has reduced by nearly 6%. paper suppliers All our tenders for new contracts include guidelines on our approach to Corporate Responsibility and clarify what we expect of our suppliers. During the last year we introduced energy management controls at 30 of our branches that will generate a 16% reduction in energy use and subsequent cost savings for each branch. The system will be extended to an additional 180 branches this year. Our new company car scheme positively rewards those who choose cars with lower emissions. We also promote alternatives such as video and teleconferencing so sometimes people don’t need to travel at all. positive 16% We donate obsolete stock of corporate clothing to Dress for Success, a charity which supports women who have suffered domestic violence to get back into the work place. P8 Nationwide Corporate Responsibility Community Engaging our employees, supporting communities, and funding The Nationwide Foundation. corporate responsibility In 2009 we introduced four ‘CR Engagement Days’ to enable our employees and members to get involved and increase awareness of community issues. So far netting over £500,000 for Comic Relief, Action for Children, Macmillan’s ‘World’s Biggest Coffee Morning’ and BBC’s Children in Need. diversity We were listed in the Top 10 of the Business in the Community Race for Opportunity programme (for private sector) and allocated an overall Gold status. Macmillan has been our flagship charity for over 15 years and during that time we’ve raised £5 million for them with a record £534,000 being given in 2008 alone. In 2008, we joined forces with Heritage Lottery Fund and Business in the Community to run the ‘Nationwide and Heritage Community Awards’ which recognised the importance of volunteering. In October 2009, we unveiled our new Employee Volunteering Strategy, which provided new opportunities for volunteering and supported charities with much needed skills. talent Our longstanding sponsorship of Disability Sport Events (DSE) creates opportunities for disabled people in sport as well as identifying future talent. Nationwide Corporate Responsibility P9 CR Governance Overall responsibility for Corporate Responsibility across the Group lies with our Board of Directors. Individual accountabilities have been listed below: Issue Board Member Position Workplace – occupational health & safety Graham Beale Chief Executive Workplace – employee issues Tony Prestedge Group Development Director Marketplace – customers/consumers* Chris Rhodes Group Product & Marketing Director Marketplace – supply chain David Rigney Group Operations Director Environment David Rigney Group Operations Director Corporate Responsibility* David Rigney Group Operations Director *For the period 2008/09, Stuart Bernau was accountable for Marketplace – customers/consumers, and Tony Prestedge was accountable for Corporate Responsibilty. In line with our renewed commitment to Corporate Responsibility we reviewed and refreshed our governance structure. During 2008/09 our new Corporate Responsibility Committee, (CRC) met on a quarterly basis and was chaired by the Group Development Director**. Members include senior managers and directors from across the business responsible for HR, Business Services, Customer Experience, Procurement, Retail, Commercial Lending, Brand Development, the Nationwide Foundation and Corporate Affairs. ** David Rigney, Group Operations Director took over responsibility in November 2009 Purpose of the Corporate Responsibility Committee • To define and govern the Nationwide CR strategy • To take ownership of the CR agenda and promote an integrated approach. To escalate issues to board level • To measure the impact of CR, to celebrate successes and commit to continuous improvement. The UK’s most trusted provider In July 2009, Moneywise magazine named Nationwide as ‘Overall Most Trusted Company’ in their Customer Service Awards 2009. The result came after 10,000 consumers responded to Moneywise’s survey, carried out over four months, which is believed to be the largest dedicated customer service survey for Financial Services held in the UK. P10 Nationwide Corporate Responsibility finance Because it’s what we do Our financial CR activity focuses on key areas where we think we can make a difference: supporting people when they are in debt; providing people with the skills and knowledge to avoid financial difficulty; and providing clear, transparent products. Find out more at Supporting people when they are in debt Mortgage Charter People get into difficulties for any number of reasons such as redundancy and illness and not just because they have simply borrowed too much. We know that. Which is why we think it’s so important to be fair and supportive. Homeowners’ Mortgage Charter - To demonstrate our commitment to our mortgage customers we have produced Nationwide’s Homeowner Mortgage Charter. This charter sets out our promise to work with and support customers experiencing a period of temporary financial difficulty and to ensure all options are explored to keep customers in their homes. The charter is made up of ten key commitments to members experiencing difficulties paying their mortgage. The commitments cover all stages of the process from when the problems first start right through to home repossessions. We will help members obtain independent free debt advice, create action and payment plans and promise to only use court action as a last resort. The Charter is available at Mortgage Rescue Scheme - Nationwide supports the Government’s Mortgage Rescue Scheme and seconded an employee to the Department for Communities & Local Government for six months in order to help devise and develop this scheme. Mortgage Rescue provides an option of last resort for vulnerable households facing loss of their home as a result of repossession. Arrears Management - Our mortgage arrears are a quarter of the national average. Probably because when we sit down with our customers to discuss their borrowing requirements, we try to ensure they don’t get in over their heads. We lend responsibly. To help improve the experience of customers across the sector we have contributed to research commissioned by Shelter and carried out by the Centre for Housing Policy at York University. The aim of the project was to identify good practice examples of arrears management and repossession issues among the lender community. Credit Card Breathing Space - If a not-for-profit debt advice agency formally lets us know that one of our customers is in serious discussion with them to draft a debt repayment plan, we will suspend collection activity for 30 days while those discussions continue. And if they need more time to finalise the plan and so long as progress is being made, they can opt to extend this breathing space a further 30 days. Online Support - A wide range of information is available to our customers via our website advising them on what they can do if they have payment difficulties. As well as self help information, the site provides links to external advice agencies and other sources of support. It also tells them how to contact Nationwide and about the support they can expect. In 2008/09 Citizens Advice advised on 1.93 million new debt problems, an 11% increase on 2007/08 P12 Nationwide Corporate Responsibility Providing people with the skills and knowledge to avoid financial difficulty Debt is the number one issue that Citizens Advice Bureaux advise on, accounting for one in three of all enquiries or an average of 7,241 new enquiries every day. Many clients cite poor financial skills and lack of understanding as one the main causes of their debt problems. MoneyActive Partnership with Citizens Advice Back in 2008 we started consulting with Citizens Advice to identify how Nationwide could help them deliver and improve capacity to help the growing number of people in debt. Our partners at Citizens Advice explained that out of the 20,000 people who regularly give their time to Citizens Advice only 100 volunteers were involved in financial capability work, teaching people to manage their money better. In response we announced our £3 million ‘MoneyActive’ partnership. The three year project will fund the recruitment and training of 1,300 additional volunteers, delivering financial education to 100,000 people within communities across the UK. Nationwide’s support of MoneyActive will see the number of volunteers trained to deliver proactive, financial education rise from 100 to 1,400. In its first year, MoneyActive will provide training and support to volunteers in 75 bureaux. The volunteers will often work in partnership with community groups and partner organisations to run sessions tailored for local needs as well as providing one-to-one coaching on money management and helping those already in debt to break the cycle. Bureau workers will also be given the knowledge, skills and confidence to pass on budgeting, borrowing and savings tips to their clients. As part of the project, Nationwide’s funding will enable the Citizens Advice website ‘AdviceGuide’ to be updated with additional financial information. The site currently attracts seven million visitors every year. “Debt problems continue to be the number one issue seen in bureaux. This is a unique and extremely ambitious project which delivers on our commitment to do more to help people avoid getting into financial crisis. Nationwide’s support means that bureaux will be able to reach hundreds of thousands of clients in their local communities with financial education sessions and advice on money matters. David Harker, Chief Executive, Citizens Advice Helping people to manage their finances Mark Hoban MP (Shadow Financial Secretary to the Treasury), Graham Beale (Chief Executive of Nationwide), David Harker (Chief Executive of Citizens Advice), Dr Vince Cable MP (Liberal Democrat Shadow Chancellor of the Exchequer) and Ian Pearson MP (Economic Secretary to the Treasury). Nationwide Corporate Responsibility P13 CR in ACTION David is a volunteer at Sheffield Mental Health Citizens Advice Bureau, a service dedicated to the provision of advice for mental health service users. “We help a lot of clients with their debt problems. When they see us they are often at a real crisis point. It makes sense to do what we can to help prevent them getting into financial problems in the first place. Last week I met up with a former debt client, her mental health issues were part of the reason her finances had spiralled out of control. We looked at budgeting and put together a savings plan so she can start putting money aside and hopefully avoid running up debts if her health became an issue again. “I’ve just completed a training skills course and am soon going to start delivering financial capability sessions to groups. We were taught about adult learning techniques, how to make the training relevant and engaging, and how to develop sessions tailored to the needs of the group. We’ll be working with healthcare professionals, giving them the skills to help their clients, and directly with service users. The MoneyActive project has given us the opportunity to develop our service and try out new initiatives.” We believe prevention is better than cure. That’s why we have invested in financial education for children, young people and adults so they can manage their money with confidence, independently and responsibly in the future. Nationwide Education - Despite being a key life skill, finance can be one of the most challenging topics to teach young people. So in consultation with teachers, parents, education professionals and government agencies, we decided to expand our investment in Nationwide Education and create a new programme - Financial Capability. In September 2008, Nationwide Education became the first - and continues to be the only - free, educational website with comprehensive finance modules for ages 4-18+, full of interactive games, fact sheets and work sheets. We’ve always recognised that teachers and parents are the experts in educating children, not us. That’s why the website is linked to the National Curricula and has specific sections with hints and tips to help bring finance to life. Since its launch, our Financial Capability programme has been accredited by the Personal Finance Education Group and has received positive feedback from teachers across the UK. Finance is a serious subject but we hope Nationwide Education offers young people a fun and engaging way of learning and will help them manage their money responsibly and independently in the future. Financial Capability programmes Target age group ‘Counting on Money’ 4-7 ‘The Cost of Money’ 7 - 11 ‘Savings & LifeSkills’ 12-14 / 14-16 ‘Finance World’ 16-18+ 59% of 12-19 years olds are not sure they have the right information to manage their finances on leaving school. Young Enterprise survey, summer 2009. P14 Nationwide Corporate Responsibility CR in ACTION One of the first schools to use the Nationwide Education Financial Capability programme was Normanton Common Primary School in West Yorkshire. “The Nationwide Education resource has given our pupils and teachers improved confidence and understanding in learning about financial capability,” said Glyn Bishop, Head Teacher, Normanton Common Primary School. The teachers at Normanton Common found the resources flexible enough to use with a range of ages and abilities, in a classroom setting, with small groups or individuals. The story book in the 4-7 Counting on Money module was used in a school assembly and a link to the materials has been put on the school’s Virtual Learning Environment, which means that they can be used by parents and pupils at home too. We run focus groups with teachers, parents and students before the resources are launched to collect their feedback. Our employees have visited a number of schools across the UK to help teach finance and a new section of the website is soon to be launched providing more employees with the opportunity to help their local school. Steven Gerrard talking to pupils about Nationwide Education at the Christ the King Centre for Learning in Liverpool. The launch of the new Savings and Lifeskills programme will play a pivotal role in helping young people become more aware of their finances and learn the value of savings. Barry Sheerman, MP and chair of the Children, Schools and Families Select Committee Teenager’s Guide to Money - Away from the online world, we’ve ti uca on.c r ove d io cte ce a r Nat t t sin a s t s i 08 ha lion h 0 2 r il 3 m embe Ed de nwi t Sep sponsored the Teenager’s Guide to Money, a book designed to teach young adults about money and help them be financially independent and responsible in the future. The book came in response to research that indicated that two-thirds of teenagers did not think that they have a good knowledge of finance. In May 2008 we distributed 5,000 copies of the book to schools and colleges across the UK. rint, ge this 10 e Nationwide Corporate Responsibility P15 Responsible lending and clear, transparent products CREDIT CARDS Supporting members when they are facing financial difficulty, and investing in Financial Education is only Manaour giAt ngthe half the story. values is providing the right products and services in the first place. ur crofedNationwide’s card res yoheart it partly about lending prudently, but it’s also about being totally clear with our ponsproduct This is partly about design, ibly Trust about Us, Trwhat customers u they can expect from us and we expect from them. st You Top tips in t current c he limate Credit Card - For the second year in a row, we’ve been Most Responsible judged the most responsible credit card lender at The Card Awards. The Society picked up the award for ‘Most Responsible Credit Card Lending Practices’ in February 2009. The award was given for Nationwide’s ‘Trust Us, Trust You’ campaign. Trust Us, Trust You was launched in 2008; its key message is that cardholders can trust Nationwide to lend responsibly, while Nationwide provide tips to help consumers borrow responsibly. By working together both lender and borrower can benefit. The Card Awards also praised Nationwide’s responsible approach to credit card lending, particularly: our simplified marketing material; free commission on overseas payments, which saves customers £17.6 million a year; the way we deal with customers experiencing financial difficulties; and our ‘positive order of payments,’ which saves cardholders money by ensuring that we clear their most expensive borrowing first. To win this award for the second year running is a fantastic achievement for the Society and reflects our ongoing approach to responsible lending, while offering products which are fair and transparent. It has never been more important for card providers to demonstrate responsible lending practices and we believe our ‘Trust Us, Trust You’ initiative clearly sets out our commitment. Jeremy Wood, Divisional Director, Nationwide Positive order of payments - Nationwide’s ‘positive order of payments’ saves credit cardholders money by ensuring that we clear their most expensive borrowing before their cheapest borrowing. Almost all credit card providers in the UK allocate payments in an adverse way. Nationwide estimates that overall, UK consumers would save around £500 million if all credit card providers adopted a positive order of payments. Protecting our members - We are committed to protecting our members and their savings. We have lobbied for the Financial Services Compensation Scheme (FSCS) to raise the limit of guaranteed deposits from £50,000 to £100,000 per individual. This move would cover 99% of our members’ savings and would provide reassurance to savers. To protect our customers after our mergers with the Cheshire, Derbyshire and later the Dunfermline building societies we worked with the regulator to protect their savings under the FSCS. As a result in November 2008 it was announced that existing customers of merged building societies would retain their full compensation allowances of £50,000 until December 2010 as long as they continue to operate as separate savings brands. This gives our customers an extra guarantee and the peace of mind that their savings are protected. P16 Nationwide Corporate Responsibility Ethical Investment - Unlike High Street banks, the vast majority of our lending is to individuals to buy their properties. We are required by the Financial Services Authority (FSA) to hold some of our assets in ‘liquid’ form to ensure that funds are always available if members wish to withdraw money from their accounts. The FSA tells us where we can invest this liquidity (primarily in mainstream financial institutions). Nationwide does not generally invest in equities, although 1% of our total assets are invested in some UK and overseas corporate bonds. We do not however offer a full range of corporate banking services, and our Commercial Division focuses on lending to three sectors: • UK registered social landlords (Housing Associations) • Commercial and residential property investors • Private Finance Initiatives (PFI) funding new schools, hospitals and social housing projects. We continue to keep the question of a formal investment policy under review. We are pleased to offer our customers an ethical investment option called the Ethical Trust through our partner, Legal and General. The Legal & General Ethical Trust gives you a share of an investment fund, which invests in FTSE 350 companies that conform to a range of ethical and environmental guidelines. Based on customer preferences L&G exclude companies that are substantially involved in or cause: animal testing; countries with poor human rights records; gambling; health and safety breaches; intensive farming; major arms exporter to oppressive regimes; nuclear power; pornography; use or sale of tropical hardwood; production of ozone depleting chemicals; production or sale of tobacco; production or sale of weapons systems; provision of nuclear weapons and water pollution. Listening to feedback - Nationwide is committed to listening to our customers and members in order to provide services and products that meet their needs. Our ‘Voice of the Customer’ programme helps us to manage and acquire customer feedback in an integrated way. In 2008/09 we received nearly 15,000 pieces of customer feedback a month. In addition to waiting for feedback, we actively consulted 2,500 customers per month on their opinions of the services they received and other products and improvements they would like to see. We also held regular ‘TalkBack’ events which provided an opportunity for our members to question Nationwide directors face-to-face or online. Since 1997 we have held 104 of these debates across the UK with eight events in 2008/09 attended by 1,138 members. Our new Members’ Zone has been created to provide another opportunity for members to engage with us and has a selection of news articles, podcasts and opinion polls. CR in ACTION Improving Customer Experience - In response to customer feedback, we developed our online mortgage switcher, a new online facility which enables customers at the end of their deal to switch to a new product without going into a branch. Of the customers we invited to switch their mortgage, 46% have taken advantage of this facility. We have also overhauled our ISA processing capability, improving turnaround times and capacity. Improvements include the setting up of an ISA training academy, a comprehensive review of literature, IT enhancements, a new ISA Gateway on our intranet, prioritised ISA processing at our distribution centre and a new application tracking system. Following member feedback, we have reviewed our bereavement process. A new Senior Liaison Officer now looks after the case providing a single point of contact for the customer and we have introduced a new dedicated helpdesk. The new system has resulted in a simpler process for customers, requiring fewer phone calls or branch visits and has led to an 83% reduction of complaints compared to the previous year. To provide our customers with best value we have widened our product range to allow more customers the flexibility to build up overpayment reserves and those on tracker products to switch to a fixed rate product at any time. Find out more at Coming soon... Nationwide Education’s ‘Finance World’ programme for ages 16+ Macmillan help branch staff understand the issues facing customers with cancer 2009 AGM donation funds Macmillan advisors who deliver vital financial support to cancer patients and carers New partnership with Skill Force to provide financial education to young people at risk of exclusion P18 Nationwide Corporate Responsibility housing Because it’s a fundamental human need Our CR work in the housing arena centres around three aims: supporting and promoting affordable housing; supporting people who are homeless or have housing issues; and encouraging and supporting sustainable living and housing. Find out more at Supporting and promoting affordable housing It is our responsibility to make the most of our resources for the benefit of our members; we are also keen to support communities around the country. Investing in affordable housing allows us to do both; we provide the finance on commercial terms and any profits we make, we plough back into our business for the benefit of members. Nationwide provided £100 million of funding for affordable housing in 2008/09 As an established and leading funder of affordable housing we not only help provide homes for people who would otherwise struggle to afford a place of their own, we’re in a position to influence the development of the UK’s affordable housing policy; we work proactively with Government agencies and departments as well as The Council of Mortgage Lenders. What’s more, some of our Housing Finance employees support the sector voluntarily by sitting on housing association boards and rural housing forums. Nationwide is committed to the principles of low cost home ownership (LCHO) and has been one of the main lenders in this area of the market for more than 20 years. Nationwide supports all current government LCHO initiatives and offers mortgages that help to make home ownership accessible. Two of our core markets, the housing association and PFI sectors involve us lending to organisations that have a positive social and/or environmental impact and benefit. Housing associations in particular provide social benefit in terms of improving the lives of their tenants through the provision of good quality, affordable housing as well as neighbourhood regeneration, home improvement, training and skills courses. In addition the regeneration work in urban areas will have a positive environmental impact, while all new housing that is built must be to specified environmental standards. Many PFI projects that we fund in the social housing and education sectors will also have significant environmental and social impacts. CR in ACTION One particular type of housing association, the Large Scale Voluntary Transfers (LSVTs), is created when local authority tenants vote to transfer to a new landlord. They provide significant social and environmental benefits through the improvement of the housing and neighbourhoods, often on big, run down urban estates. When we consider funding LSVTs it is important for us to see that their business plans also include measures to improve the environment, local services and social infrastructure as well as the actual housing. This is to ensure that sustainable demand is created for the housing, which means that our borrower will have a strong long term source of rental income with which to repay their debt. Nationwide currently provides over £9 billion of funding to the Affordable Housing sector. 64,000 households are trapped in temporary accommodation in England. P20 Nationwide Corporate Responsibility Supporting people who are homeless or have housing issues Shelter Partnership - During 2008/09 we embarked on a new, forward-thinking partnership with Shelter exploring policy issues surrounding homelessness. Using our shared expertise we believe the partnership has the potential to deliver real solutions which will help to prevent people becoming homeless. Some of the key areas the partnership will focus on include provision of advice and support services for consumers in mortgage arrears, good practice in arrears management, responsible lending and house price fluctuations. We’re also working with Shelter to help those people who are homeless or in desperate housing need. In November 2008 Nationwide started to fund Shelter’s Housing Support Service in Bristol. We initially donated £81,000 to the project, which offers free support for homeless families making the transition into a settled home, and helps children and young people overcome the disruption and trauma caused by homelessness. During the next 12 months we will extend our work with Shelter to support Housing Support Services in Milton Keynes and Dorset, hoping to reach 2,310 people. CR in ACTION Shelter’s Housing Support Service provide wide-ranging services include housing advice, help with household budgeting and tackling debt, and support for people with physical and mental health problems. The service also offers practical support, helping families moving into a new home to find furniture and household items. Finally, community activities offer homeless families the chance to meet and share their experiences. Thanks to the work of volunteers in Bristol, homeless young people have the opportunity to take part in simple activities like football that they may otherwise miss out on. As a result of our support, Shelter’s Housing Support Service in Bristol has helped 60 homeless families and 56 children. When their support ended 93% of people engaged with the project were able to live independently. We are very excited about the partnership with Nationwide and grateful for their generous support. This partnership has already made a massive difference to the lives of homeless families and children in the South West and will now enable us to continue our vital services. Karen MacVean, Service Manager for Shelter’s Housing Support Service, Bristol Nationwide Corporate Responsibility P21 Encouraging and supporting sustainable living and housing Clearly while people need homes, building them has an impact on the environment, so we’ve launched two new initiatives to promote sustainable living. Nationwide Sustainable Housing Awards Our Sustainable Housing Awards evolved from a member’s suggestion at the 2007 AGM and were launched in partnership with the Royal Institute of British Architects (RIBA) in October 2008. The competition is set to run for three years and is designed to promote economic and environmental sustainability by encouraging architects and design students to incorporate issues of sustainability into their future designs. We’re looking to stimulate and reward innovative thinking. The theme for the 2008/09 awards was ‘Sustainable Housing in an Urban Environment’ with three sub-categories of ‘New Build’, ‘Regeneration’ and ‘Communities and Neighbourhood’. Submissions were received from both British and international students including entries from Iran, Japan and Greece. The first awards ceremony took place at the RIBA headquarters in London hosted by Wayne Hemingway, founder of Red or Dead and current Chairman of Building for Life, an organisation that promotes excellence in the quality of design of new housing. The winning and shortlisted entries were exhibited at the RIBA headquarters. For more information on the 2009/10 competition ‘Suburban Urban – Secure and Green’, visit Wayne Hemmingway, Sunand Prasad, Graham Beale and winner Helen Ayton Graham Beale and winner Pierre Lecomte Wayne Hemmingway, Sunand Prasad, winners Hannah Smith, Joseph Thompson and James Watts and Graham Beale Wayne Hemmingway, Sunand Prasad, Graham Beale and winner Jason Ramlugon I am delighted that students of Architecture both in the UK and overseas have responded so positively to the challenges of the Nationwide Sustainable Housing Awards 2008, exploring innovative strategies to support and stimulate sustainable lifestyles in the context of urban environments. Sunand Prasad RIBA President 2007 - 2009 P22 Nationwide Corporate Responsibility Sustainable Housing Awards – Year Two NATIONWIDE SUSTAINABLE HOUSING AWARDS 2009 For 2009/10 the theme is ‘Suburban Urban – Secure and Green’ and prizes will be awarded for designs in either newbuild, refurbishment or community projects. The aim of the competition is to stimulate and reward innovative thinking about how people can live more sustainably in the future – picking up key characteristics of what might be recognised today as a ‘suburban’ lifestyle but developed in new ways to reflect ‘suburban’ values, i.e. set in the context of a denser, more resource-efficient future. As Chair of Building for Life I am constantly aware of the need to balance quality, quantity and price when it comes to housing. I firmly believe it’s possible to achieve that balance through great design and creativity. So, I am pleased to join Nationwide Building Society and RIBA Competitions in supporting the Nationwide Sustainable Housing Awards, which are all about challenging our future architects to be more sustainable for the long term. Wayne Hemingway Nationwide Education ‘Sustainable Living’ At Nationwide we believe education is the key to preventing or curbing our current social and environmental problems. Our online Sustainable Living programmes are designed to engage children aged 4-11 years with what we need to do to live more sustainably. Sustainable Living programmes aim to help pupils think about sustainability at both an individual and global level. The first programme ‘Sustainable Housing’, launched in February 2009, introduces primary school children to sustainability in the home and starts to introduce the concept of the wider community. The subsequent programmes, ‘Sustainable Communities’ and ‘Sustainable World’, are aimed at secondary school students and will be launched in 2010. They will focus on wider community, country, and then global issues and will link the financial and environmental aspects of sustainability and decisions around how we live. Find out more at Coming soon... Nationwide Education’s ‘Home Safety’ programme New funding for Shelter services in Dorset and Milton Keynes The second year of Nationwide’s Sustainable Housing Awards – ‘Suburban Urban’ P24 Nationwide Corporate Responsibility environment Because we’ve all got a role to play Our environmental CR activity is focused on managing and reducing our direct environmental impacts in particular reducing our carbon footprint; we’re also looking to have a positive wider impact through our people and suppliers. Find out more at Reducing our direct environmental impact Reducing our direct environmental impact is vital to maintaining our long-term sustainability, reducing costs for our members and meeting government legislation now and in the future. This means setting comprehensive targets on energy, water, travel, waste, and paper and then delivering against them. In relation to our carbon footprint, we’re working to stabilise our CO2 emissions and then put in a five-year plan to reduce them with our long term aspiration being to meet the government’s own targets of an 80% reduction on existing levels by 2050. CR in ACTION Building Management System - During the last year we introduced energy management controls at 30 of our branches. Mini Building Management Systems (BMS) are linked to the branch heating, cooling, ventilation, lighting and security systems. When the security system is armed, the BMS automatically switches off the services that are not required when the building is unoccupied and manages these services effectively when the building is in use. The energy management equipment and remote control of heating, air conditioning, lighting and ventilation in and out of working hours will generate a 16% reduction in energy use and subsequent cost savings for each branch. This is one of a number of actions we are taking to first stabilise our CO2 emissions at their current level before we move forward and work to reduce them. This doesn’t just reduce our environmental impact but provides value to our members by saving money. P26 Nationwide Corporate Responsibility Environmental Management System During 2008/09 we have implemented an Environmental Management System (EMS) at our internal print and distribution unit. The unit produces all our application forms as well as internal printing, scanning and distribution. Within just 12 months the EMS has been implemented and ISO14001 accredited. ISO 14001 is an internationally accepted standard and certifies that our internal print and distribution unit has the necessary systems, policies and procedures to manage and improve environmental performance. As part of the accreditation the unit has put in place operational controls to manage waste, the print process and to prepare for emergencies such as spills of ink fluids or potentially harmful waste solutions. The system has also past a mid-term review; this means that standards have been maintained. In the next year we will be working to implement environmental management controls across other areas of the business. Waste and resource management Building efficiency - One of our major focus areas for the next five years is to increase the efficiency of our buildings. This has included moving our call centre staff to a new building rated BREEAM “Very Good”. BREEAM is the Building Research Establishment Environmental Assessment Method - a voluntary measurement system to rate the environmental performance of a building. Four BREEAM ratings are available: pass, good, very good and excellent. We are in the process of constructing a new data centre, due to go live in 2011, which is on track to be rated BREEAM “Very Good”. Sustainability has been a consideration throughout the process from location, design and fit out. As our data centres use a significant amount of energy, this efficient building will go a long way to reduce our energy use. Mace Technology, the company constructing Nationwide’s new data centre, has achieved five stars in a British Safety Council five star environmental management system audit. The company has always placed great emphasis on maintaining a high level of environmental and health and safety performance, winning numerous awards and accolades but this is the first time that any Mace Group company has achieved this high level environmental award. The international standard sees auditors examine the whole environmental management system of a business, including compliance and best practice. I am once again delighted that through the hard work of the Nationwide team Mace Technology has succeeded in gaining five stars in the recent BSC environmental audit. As with the safety audit, this is the highest mark achievable and sets a new benchmark for the Mace Group. This is an achievement we can all be proud of. Joint managing director of Mace Technology Phil Coutts Our new mini Building Management Systems will generate a 16% reduction in energy per branch. Nationwide Corporate Responsibility P27 Energy source - We can never forget that while fulfilling our environmental and community responsibilities we exist to give our members value for money. So following issues with supply and demand, price changes and changes to the government’s framework on carbon legislation, we decide to stop buying electricity from purely renewable sources in October 2008. This has resulted in an increase in our reported carbon footprint, when compared to previous CR reports. In absolute terms our energy use has increased by 3%. Paper - Paper is one of our most significant waste streams. It is company policy that all paper is treated as confidential waste and all of our confidential paper waste is recycled. So, while ensuring that we protect our customers’ information and security, we can be confident that we recycle 100% of paper from all of our UK sites. To help reduce paper consumption and our customers’ paper waste we provide our online customers with the option of paperless statements for FlexAccounts, card-based saving accounts and credit card statements. Despite an increase in the number of accounts, the volume of paper we procure to administer them has reduced by nearly 6%. Water use - Reducing the cleaning frequency of the outside of Nationwide House, our head office in Swindon, has resulted in some major water savings. This has been achieved by coating some parts of the building with a non-toxic, biodegradable biocide which stops algae from growing. Office furniture and corporate clothing - In 2008/09 none of the 130.1 tonnes of surplus furniture was sent to landfill. Instead 101.9 tonnes was recycled and 28.2 tonnes was redistributed to charities and organisations such as the NHS. With design changes to our corporate clothing every two years, waste corporate clothing has the potential to be a large waste stream for Nationwide. However none of our old clothing goes to landfill. We send old clothing stock the charity Dress for Success, a charity which supports women who have suffered domestic violence to get back into the work place (see page 29). General waste - With almost 900 branches across the country, waste management provides a number of challenges. It is our aim to reduce waste to landfill and achieve high levels of recycling across our business. The challenge is to find a cost effective, low carbon solution. We have begun to develop a solution to this problem for our paper waste. We have arranged to use available secure space on the return trip of our distribution service to bring the paper from branches to a central point where it will be sent for secure shredding and recycling. In addition to this we have put balers in place at our central distribution depot and compressors in place at Nationwide House to compact and reduce the volume of our paper waste. This in turn reduces the frequency of collections needed to take the waste off site to be processed and therefore reduces carbon emissions from travel. 5 star environmental award for company constructing Nationwide’s new data centre. P28 Nationwide Corporate Responsibility Working to have a wider impact through our suppliers and employees Payment times - We take our responsibility to pay our suppliers on time seriously and recognise the risks that late payment causes to us and our suppliers. Our standard payment terms of 45 days reflect our position as a financial services provider. While many companies strive to increase their credit terms we believe that by supporting our suppliers with fair and equitable terms we maintain the strength of our position in the market. Throughout 2009/10 we are taking further proactive actions to mitigate any unnecessary late payments through improved reporting and encouraging joint responsibility across Nationwide. Supplier questionnaire/survey - All tenders for new contracts include guidelines on our approach to Corporate Responsibility and the expectations that we have in relation to our suppliers. In addition, we undertake reviews of our suppliers’ CR reports as part of our tender process. During 2009/10 we will be investigating in greater detail the approach of our suppliers in line with our own policies. This will ensure that, where appropriate, we evaluate our suppliers against both their approach to CR as well as their commercial effectiveness. Responsible purchasing - We make a number of our purchasing decisions based on CR criteria. From 1 April 2009 all paper used for point of sale literature (e.g. product leaflets) and statement inserts will be Forest Stewardship Council (FSC) certified which guarantees the paper is from sustainable, well-managed forests. We have moved from using recycled paper because it was becoming increasingly difficult to source in the volumes we need. Once it becomes more widely available and cost viable, we will revert to FSC accredited recycled paper. In addition, as much corporate clothing as possible is made from sustainable materials and all pieces are ethically produced. For example, our shirt for men is made from 100% organic fibres. Nationwide donates obsolete corporate clothing to ‘Dress for Success’ a charity which supports women who have suffered domestic violence to get back into the work place. Nationwide Corporate Responsibility P29 CR in ACTION Dress for Success - Through good procurement decisions our corporate clothing shows how effective waste management can be built into the design of a product. In 2008 we started to donate our obsolete stock of corporate clothing to Dress for Success, a charity which supports women who have suffered domestic violence to get back into the work place. In addition to helping these women to re-skill and write their CVs, Dress for Success provides them with suits to wear to interviews. If the woman is successful in securing a job they are provided with a week’s worth of corporate work wear. This removes some of the barriers which prevent disadvantaged women from entering mainstream employment. Much of this recycling would not be possible if re-usability was not considered at the design and procurement stage. Company branding on Nationwide corporate wear is intentionally kept discreet. Any branding on Nationwide clothing is either on excess material, which can be easily removed for reuse, or is masked by similar colouration such as dark blue embroidery on a dark blue suit. To prevent security issues that re-distributing corporate wear could produce, all Nationwide branches introduce the new corporate clothing at the same time, removing the possibility of someone impersonating a Nationwide employee. Proactive procurement decisions have helped Nationwide overcome the barriers that prevent other companies from reusing and recycling their corporate wear. Employee awareness - Raising employee awareness is key to reducing our carbon footprint. As part of our commitment to continually improving our energy efficiency we have relaunched our employee environmental intranet site which provides information to help reduce Nationwide’s environmental impact through reduced energy use and business travel. Alongside the intranet re-launch we launched an employee Environment Awareness campaign in March 2009. The initial focus was on energy encouraging employees to “Be a Nationwide Saver” and to be more aware of the energy they use. This kind of campaign will be repeated for other environmental issues such as travel. Employee travel - We have a network of video and telephone conferencing facilities which enable people to have meetings without the need to travel and we encourage people to consider alternatives to driving when looking to hire vehicles. For the times when the use of a car is necessary we have moved to more efficient vehicles which emit less CO2. Our new company car scheme gives employees a wide choice, it positively rewards drivers who choose cars with lower emissions. Employees who do not normally need a car for business purposes are able to use hire cars and once again cars with lower carbon emissions are promoted. Find out more at Coming soon... Roll out of new Building Management System to 180 branches – saving vital energy A new Nationwide Education ‘Sustainable Living’ programme for ages 12-16 P31 Nationwide Corporate Responsibility community Because together people can achieve incredible things Our CR work in the community starts close to home – being a responsible employer and helping our employees to succeed. Our charitable partnerships continue to make a real difference to those in need. Find out more at Being a responsible employer Our employees have the greatest impact on ensuring Nationwide remains a responsible financial services provider and a responsible employer. PRIDE is Nationwide’s unique set of behaviours which defines the way we do business with our members, customers, suppliers, partners and colleagues. All Nationwide employees are introduced to PRIDE as part of their induction and are measured against the behaviours as part of their performance appraisal. Our PRIDE behaviours were refreshed and re-launched by Chief Executive, Graham Beale, in April 2008 and have since been further integrated into our new performance management system, which was rolled out across the UK with an extensive training programme for all people managers. Opportunity and diversity - At Nationwide we embrace diversity and continue to be committed to promoting equality of opportunity and creating a supportive and inclusive culture for all our employees, members and business partners. This is supported by our Diversity and Equality of Opportunity Committee (DEOC), chaired by the Divisional Director for Sales and Investment. The DEOC is comprised of senior managers from across the business. . The DEOC is sanctioned by the Nationwide Executive Directors Committee and aims to: • promote equality of opportunity and diversity for all Nationwide employees and customers • ensure that barriers to equality are identified and removed to maximise the potential of all our employees • ensure that barriers to equality are identified and removed to maximise accessibility for our customers and potential customers • create an inclusive approach that values the contribution of every individual. We work closely with a number of external organisations to promote diversity. We were a founding member of the ‘Employers’ Forum on Age’ and have been a member now for 12 years. The forum is a network of businesses who recognise the benefit of an age diverse workforce and are committed to attracting and retaining talent regardless of age. We are a member of Business in the Community’s ‘Race for Opportunity’ programme, which aims to promote employment opportunities for ethnic minorities in the UK. In 2008 we were placed as one of the Top 10 performers in the Private Sector and in 2009 we achieved an overall status of Silver in their national benchmarking survey. As part of the ‘Employers’ Forum on Disability’ we have the opportunity to work closely with Government and other stakeholders sharing best practice to make it easier to employ disabled people and to serve disabled customers. Through Business in the Community’s ‘Opportunity Now’ programme we have been recognised externally for our work on gender equality and best practices in the workplace, and in 2009 achieved a status of Silver for our annual benchmarking submission. Nationwide is also a Stonewall Diversity Champion; Stonewall is the UK’s leading gay, lesbian and bisexual equality organisation. P33 Nationwide Corporate Responsibility Employee development - Providing employees with the right training to do their job is part of our role as a responsible employer. Over 2008/09 we have prioritised training for our regulated branch employees. This has enabled the Society to improve competence and evidence in regulatory areas, ensuring compliance with the Treating Customers Fairly guidelines and continued sales in a weaker economic climate. In total, 43,215 days of face-to-face training were delivered in 2008/09 with a further 4,890 days of externally delivered specialist training. This is an average of 2.34 days training per employee. Nationwide first achieved the Investors in People in 1993 and we were first awarded ‘Champion’ status in 2004. In November 2008 this status was renewed. We are one of only 42 companies out of 68,000 other IIP companies to be awarded ‘Champion’ status. Communication – We work hard at keeping employees informed and engaged in how the business is run. These activities come under the heading of ‘Voicebox’. Voicebox gives employees a chance to make their voice heard at Nationwide and engages them in discussions about current issues, giving them a chance to feed back with their views and suggestions. As well as putting forward new views and perspectives. Some of the initiatives that have been part of Voicebox include: ‘Brainwaves’, an employee suggestion scheme aimed at reducing costs and increasing efficiency, the annual ‘Viewpoint’ employee survey and ‘TalkBack’ sessions which allow employees to hear how the business is performing and discuss current issues with Executive and Divisional Directors. One new initiative has been our ‘Your Say Cafés’ which brings employees from all areas of the organisation together with management to discuss issues that matter to the business. Health, safety and wellbeing - We are committed to helping our employees have a healthy work life balance and in 2009 we were one of 20 companies awarded Top Employers by Working Families, a charity which helps children, working parents and carers and their employers find a better balance between responsibilities at home and work. Our careline allows our employees to talk confidentially about any workplace and personal health or wellbeing issues. CR in ACTION – working through cancer People are often keen to return to work following a cancer diagnosis, not just for financial reasons, but also to regain a sense of normality. All employers, including Nationwide have a role to play in reviewing and enhancing their polices and processes to ensure they are able to provide the necessary support. Macmillan is responding to this and working with the government and employers to improve the experience of people with cancer as they return to the workplace. We have offered our experience of employment practices as part of an expert panel to develop the ‘Working through Cancer’ toolkit. The toolkit provides practical resources and guidelines for HR managers, line managers and employees affected by cancer. Coming soon: We are one of two businesses piloting the toolkit this year. We hope our involvement will not only help our own employees but also lead the way to improved levels of support across the UK. Investors in People ‘Champion’ status since 2004. Nationwide Corporate Responsibility P34 Engaging our employees We work hard to create a working environment that is safe, inclusive and provides opportunities for people to reach their potential. We also recognise that our employees want to make a difference. £ Altogether Better – Our new Altogether Better campaign combines our Payroll Giving, Volunteering and Charity of Choice activities. Our underlying strap line is “Altogether we can change things for the better.” £ £ Vote Volunteer Give Vote - Our employees have recently re-elected Macmillan Cancer Support as Nationwide’s Charity of Choice, continuing our long-term relationship with them. Volunteer – Employees can now find a variety of volunteering opportunities on our CR intranet including opportunities with Citizens Advice, Macmillan, Shelter, Disability Sport Events, local schools and community groups. Nationwide Education – our educational website – will soon boast an Employee Section. It’s designed to give our employees a framework and materials to teach finance in schools. Give – We have recently re-launched our payroll giving facility. Employees can donate to a charitable or community cause that is important to them, every month via payroll. Using our new payroll giving online system it takes minutes for employees to get involved. Fundraising – Employees and members have traditionally been fantastic at raising money for a variety of charities. We are proud to be one of the first companies to support Macmillan’s new innovative ‘text to donate’ campaign. The idea is simple yet could make a huge difference to cancer patients and their families up and down the country. Employees and members have been invited to text NATION to 07134 to make a £3 donation towards Macmillan’s fantastic work. 85% of employees surveyed feel more positive or much more positive about Nationwide as a result of our CR activities. P35 Nationwide Corporate Responsibility CR in ACTION – CR Engagement Days During 2009 we have introduced four CR Engagement Days per year. This enables employees across the whole organisation to get involved and raise money for four very worthwhile causes: • Comic Relief • Action for Children • Macmillan Cancer Support (World’s Biggest Coffee Morning) • BBC Children in Need So far our members and employees have raised an amazing £500,000 through our CR days. The spirit of our CR days was captured in the efforts of one Nationwide employee who spent seven hours non stop on the cross trainer in aid of Action for Children in the middle of the Nationwide head office in Swindon. Peter Gough was joined by four of Nationwide’s directors taking it in turns to provide moral support on a neighbouring rowing machine. Peter ran a massive 153km – that’s the equivalent of 3.5 marathons in one go. Nationwide employee, Peter Gough, who spent seven hours non stop on the cross-trainer in aid of Action for Children covering over 150km The fundraising day was a fantastic example of the commitment of Nationwide people to raising money for good causes. I have never witnessed such enthusiasm on such a large scale. We really hope that we continue to work with Nationwide in the future as they are amazing supporters to have on board. James Thackray, Head of Corporate Development, Action for Children Nationwide Corporate Responsibility P36 Supporting communities across the UK Our commitment to the community reflects the views of our members who voted overwhelmingly in support of Nationwide investing at least 1% of pre-tax profits, in community and environmental activities in 2007. Our community programme is based on a variety of new and established partnerships with charities including Macmillan, Shelter, Disability Sports Events, Action for Children, Skill Force and Citizens Advice, as well as a number of local causes. Macmillan Cancer Support - Macmillan has been our flagship charity since 1993 and during that time we’ve raised £6 million for them with a record £534,000 being given in 2008 alone, which helped fund the Plymouth and Durham Cancer Information Centres, the Macmillan Cancer Guide and their Carols in the Cathedral. CR in ACTION In 2008 and 2009 Nationwide promised to donate 20p for each vote cast in the AGM. In both years we reached our targets and together made a donation of £500,000. In 2008 our donation was been split between two of Macmillan’s cancer information and support services: the Mustard Tree Cancer Information and Support Centre in Plymouth and another centre in County Durham. Both centres provide people with cancer and their carers with clear information and face-to-face support including booklets, leaflets and videos, information on self help, support groups and complementary therapies. The 2009 donation helped to fund Welfare Benefits Advisors based at Citizens Advice Bureaux in Hinckley, Lutterworth and Market Harborough. Offering vital financial support and advice to cancer patients and their carers. Angela Porfit, cancer patient and one of Macmillan’s champions. From myself and everyone at Macmillan, thank you for your commitment to improving the lives of people affected by cancer. Your innovative fundraising and dedicated support helps to take us one step closer to our ambition of reaching and supporting everyone living with cancer. Ciarán Devane, Chief Executive, Macmillan P37 Nationwide Corporate Responsibility Disability Sport Events (DSE) Our longstanding sponsorship of DSE creates opportunities for disabled people in sport as well as identifying future talent. Congratulations to wheelchair racer Daniel Lucker who was awarded the national ‘Rising Star’ Award at the Nationwide DSE Sports Awards in December 2008 and has since won the London Wheelchair Mini Marathon. DSE award winners in Manchester Nationwide and Heritage Community Awards In 2008, we joined forces with Heritage Lottery Fund and Business in the Community to run ‘Nationwide and Heritage Community Awards’ which recognise the importance of volunteering. The initial awards were presented to the worthy winners in November 2008. Local causes It’s not just national charities and causes we support: our CR representatives around the country use their local knowledge to identify local causes and to work with charity partners. Projects near our Swindon headquarters include GWR Kids, Learning for Life, Think Swindon, SMASH, Junior Good Citizen, Community Foundation for Wiltshire & Swindon, Prospect Hospice, Swindon Tigersharks and Swindon Cares. Cats’ Eyes Each year thousands of people are killed or injured on roads in the UK. Of those most at risk, child pedestrians are perhaps one of the more vulnerable groups of road users, with many still learning road awareness skills as they walk to and from school on an almost daily basis. To help combat this serious issue Nationwide has been distributing more than 13 million reflectors to schools throughout the UK since 2000. By taking the simple step of wearing a reflector, a child pedestrian is visible from 150 metres with low beam headlights, compared to only 30 metres without one. We welcome the fact that the latest statistics show the casualty rate amongst child pedestrians has significantly fallen 59% since the Cats’ Eyes reflector programme began. Our Nationwide Education website also provides children, parents and teachers with free fun educational games and worksheets to increase awareness of road safety. Road crashes are one of the biggest causes of death and injury of children in the UK. Although there have been reductions in child casualties overall, the danger to young pedestrians increases dramatically in the winter months as daylight hours decrease and visibility is reduced by a third. In the month of October last year, there were 860 child pedestrian casualties, a dramatic increase of 60% compared to the month of August. Nationwide’s Cats’ Eyes reflectors, together with the ‘Be Safe, Be Seen’ and ‘Safer Travel’ road safety programmes on Nationwide Education, play a key role in helping young children stay safe on our roads. Dawn Boyfield MBE, Director of Parliamentary Advisory Council for Transport Safety Nationwide Corporate Responsibility P38 Sponsorship Our sponsorships aim to involve our customers and reach communities both regionally and nationally. Nationwide football sponsorships Football is the national sport in the UK so sponsoring football enables Nationwide to communicate our brand, products and services to the widest audience possible. Nationwide has been sponsoring football in the UK for over a decade; we are the team sponsor of the England, Wales and Northern Ireland football teams and an Official Partner of the Scotland football team. Nationwide is also the England Team Sponsor for all 18 England football teams run by the Football Association. The teams include the women’s and men’s senior teams, nine men’s and women’s youth teams and seven disability football teams. Nationwide customers have access to the majority of benefits that these football sponsorships provide. Opportunities to win VIP hospitality, match tickets, see your child lead out the team, watch team training and meet the players are just some of the exclusive benefits that Nationwide customers can win by entering competitions held on This website also provides all the up-to-date international football news and content as well as exclusive interviews with players and managers across all four home nation teams. Official supplier to the new Wembley Stadium Nationwide is the Official Financial Services Supplier providing all the cash machines (ATMs) within Wembley Stadium. These ATMs will be free of charge to supporters and customers at Wembley, making it one of the few stadiums in the world where such an offer is in place. Bournemouth Symphony Orchestra We’re proud to be the Principle Sponsor of the Bournemouth Symphony Orchestra (BSO). This sponsorship enables us to engage with enthusiasts of the BSO through a series of concerts and events across the year. We also have a major presence as an employer in Bournemouth as well as across the BSO’s heartland of the south west. RAF Central Band - Nationwide has continued to sponsor ‘A night with the Central Band of the Royal Air Force’ at the Wyvern theatre in Swindon in aid of the Royal Air Force Association. The RAF Association (RAFA) is a membership organisation of serving and former members of the Royal Air Force, their families and dependants and all those supporting the aims of the Association. It is the largest single-service membership organisation in the United Kingdom and has roughly 74,000 members and 500 branches in the UK, Europe and further afield. The Association provides help and advice, assistance, comradeship and, where required, welfare and care for the whole RAF family. Mosaic Nationwide is currently working with Mosaic, a national project, led by the Campaign for National Parks, that aims to build sustainable links between black and minority ethnic communities and the National Parks and the Youth Hostels Association (YHA). The Mosaic project works by training influential leaders from ethnic minoyrity communities to become ‘Community Champions; promoting the National Parks and the YHA in their communities. 81% of employees think Nationwide is a socially responsible company. P39 Nationwide Corporate Responsibility The Nationwide Foundation In 2008/09 we donated £2 million in funding to the Nationwide Foundation. The Nationwide Foundation is a registered charity set up and funded by Nationwide Building Society. During the last financial year, the Foundation continued to make large grants through its Investor Programme and also made 109 small grants to charities across the UK, helping 77,000 people. The Foundation is more than a grant giving body. One of its key objectives is to encourage community partners to work together. Charities benefitting from the Investor Programme receive £150,000 over three years for core, development and project work, and there is also the opportunity to access an additional shared fund of £250,000 to finance partnership activities. By sharing expertise and consolidating resources charities often achieve much more. Working in partnership with the Abbey Charitable Trust and Volunteering England, the Foundation also commissioned research into how charities can benefit from ‘non-financial support’ e.g. skilled volunteers, gifts in kind, equipment, and in particular, how companies and charities can work more effectively together for mutual benefit. The research highlighted how companies can add significant value by offering the specialist skills of their staff through volunteering programmes. The findings are helping to inform our own new Employee Volunteering strategy. In 2008/09, the Foundation reviewed and evolved its funding strategy. It will focus on two core areas: housing and financial inclusion, specifically focusing on charities representing disadvantaged older people and survivors of domestic abuse. Registered Charity Number: 1065552 Toynbee Hall Thanks to the Foundation funding, Toynbee Hall, a charity working with the local community in the East End of London, is training workers in women’s refuges to support survivors of domestic abuse with their financial problems. Runnymede Trust The Foundation has supported four Runnymede Trust projects dealing with the savings and financial advice needs of people from Black and Minority Ethnic groups. These include research on financial inclusion and a national conference to promote these diversity issues. The Nationwide Foundation set to help 11,000 people The Nationwide Foundation has recently announced a new grants programme totalling £2.3 million. The grants will fund eight charities which help people who face financial exclusion or housing issues. The money will benefit up to 11,000 survivors of domestic abuse and disadvantaged older people over the next three years. The Nationwide Foundation will also provide consultancy support to build the robustness and infrastructures of the charities funded. This may include deploying consultants and funding training needs for staff and trustees. “We’ve carefully studied the charities’ bids and are convinced that these charities can make a real difference to the lives of older people and survivors of domestic abuse. We know that a lack of financial capability can prevent someone leaving an abusive relationship, and that many older people are needlessly living in cold, sub-standard homes because they are unable to access the right assistance. This three-year commitment allows the charities time to make a real difference and to build legacy so that their good work will continue,” said Lisa Parker, chief executive of the Nationwide Foundation. The eight charities which the Foundation is supporting as part of the Investor Programme are: • Age Concern Camden (partnership with Age Concern London) • Age Concern Wirral • Centre for Policy on Ageing • Centre for Sustainable Energy (partnership with both Mendip and Somerset West Care & Repair) • The Haven • Money Advice Plus - MAP (partnership with national Women’s Aid) • Runnymede Trust • Thanet Citizens’ Advice Bureau (partnership with Shelter Kent branch and Canterbury and Shepway Citizens’ Advice Bureaux) In addition to the three year Investor Programme, Nationwide Foundation also provides grants of up to £5,000 to smaller charities with incomes of less than £500,000. For more information about the Nationwide Foundation and the Investor Programme visit Find out more at Local involvement - our regional brands in action The Cheshire, Derbyshire and Dunfermline Building Societies are Nationwide’s regional brands. Each has their own commitment to their communities. For the past five years Cheshire has supported Henshaw’s work with blind and visually impaired children and adults across the North of England. That’s included supporting their Christmas Carol Concert, which in 2008 raised £4,500, as well as taking part in slightly less sedate activities such as abseiling. Cheshire also operates several affinity account schemes for local football clubs and 21 hospices across the North West region. Over £60,000 was raised through donations from the ‘Caring for Hospices’ affinity savings accounts in 2008. Toynbee Hall Strong relationships have been forged with East Cheshire Hospice in Macclesfield, supporting the charity not only through affinity savings accounts, but also fundraising activities such as sponsoring its annual 10km Midnight Thanks Walk. to The Foundation funding, Toynbee a charity workingAdventure with Farm Trust (CAFT), a charity providing More locally, Cheshire has Hall, supported The Children’s the local community in the East End of respite for terminally ill, chronically sick, disabled and disadvantaged children. In July 2009, Cheshire sponsored the annual International Boccia Championships for the second year. Similar to boules, Boccia is London, has trained workers in women’s a Paralympics sport originally designed to be played by people with Cerebral Palsy. In April 2009, Cheshire refuges to support survivors of domestic donated £1,300 to Windyways Animal Rescue Centre to provide food and bedding for injured, abandoned abuse with their financial problems. and sick animals. Cheshire also works with other organisations to raise funds through donations and employee involvement initiatives such as raffles and local fundraising. A recent Cheshire versus Derbyshire Building Societies football match raised over £600 for the East Cheshire Hospice, in addition, they collected football boots and kits for the Boots for Africa campaign, a charity providing football equipment for disadvantaged children across Africa. All this plus supporting the fundraising days of the big national charities such as Comic Relief, ChildLine, Children in Need and Action for Children. P42 Nationwide Corporate Responsibility Proud to be a part of Derbyshire Building Society is committed to offering support to groups within the local area, which offer social inclusion for all and helped over 150 charities, community groups, organisations and good causes in 2008/09. Derbyshire is engaged in a 13 year partnership with Rainbows Children’s Hospice, the only children’s hospice in the East Midlands. The hospice receives no government funding so has to rely solely on donations and fundraising. Derbyshire‘s support for the hospice includes an affinity savings account which generates over £25,000 per year, an annual ‘Light Up a Life’ appeal, events and personal fundraising. The company has been the principal sponsor of the Derby 10k and Family Fun Run since 2001. The annual event, in aid of local charity Sporting Futures, regularly attracts 3,500 runners and is regarded as one of the top five races of its kind in the UK, as well as one of the premier events in Derby’s sporting calendar. Through its long-standing relationship with Derby County Football Club, the popular Derby Rams affinity savings account has enabled Derbyshire to help the club develop its First Team stars of the future. The income this account generates for the club goes directly towards funding its youth academy. It has helped local youngsters such as Tom Huddlestone, Lee Camp, Giles Barnes, Lewin Nyatanga and Miles Addison achieve their dream of becoming professional footballers. Derbyshire has enjoyed a long and successful relationship with the Rams, both as main club sponsor and sponsor of its Football in the Community programme. We also enjoy affinity relationships with other clubs including Grimsby Town, Mansfield Town, Chesterfield FC and Sheffield Wednesday and the funding we provides helps all these clubs develop the game at grass roots level. Derbyshire also has an affinity relationship with the National Trust, which has seen savers help raise more than £3,500 for the charity. This money has been used to maintain some of the region’s most historic homes, parks and gardens. Other charities supported by the Derbyshire include Derbyshire Children’s Holiday Centre, Treetops Hospice, Derbyshire Association for the Blind, Padley Group and East Midlands in Bloom. The Dunfermline Building Society has a long tradition of supporting the community. Its support to Art in Hospital enables them to deliver extensive visual art therapy programmes to elderly and physically disabled people in residential care homes and hospitals throughout Scotland. Dunfermline received a commendation in the first year of this partnership through the Arts & Business Scotland Awards 2008 Community Award. Many of our employees were invited to participate in the art workshops, which they found enlightening, therapeutic and an excellent way of developing their communication skills. During the past five years, Dunfermline employees have been involved in a number of initiatives to raise funds for charitable causes all over Scotland, including: The Great Scottish Run, Maggie’s Centres Monster Hike and Bike and The Moonwalk in aid of Breast Cancer. Dunfermline supports a number of other charities including our two employee chosen charity partners: Macmillan Cancer Support and Leukaemia Research. Dunfermline also supports local initiatives close to our branches such as hospice appeals, playgroups and sporting organisations. Find out more at Coming soon... Our new Employee Volunteering programme We’re one of two businesses piloting Macmillan’s Working Through Cancer toolkit P44 Nationwide Corporate Responsibility Workplace Data Number of employees Average during year No. of employees (Group) 2006/07 2007/08 2008/09 16815 18318 18935 Society - central admin* 7592 8469 9821 Society - branches 8248 8827 8315 Subsidiaries Full-time 975 1022 799 11519 12784 13409 Part-time 5296 5534 5526 % full-time 68.50 69.79 70.82 % part-time 31.50 30.21 29.18 60+ 50-59 40-49 30-39 20-29 <20 Age profile of employees 2006/07 2007/08 2% 2% 12% 12% 24% 24% 28% 26% 30% 31% 4% 5% 2008/09 2% 12% 25% 25% 32% 5% Gender profile of all employees 2006/07 2007/08 2008/09 Female 71% 70% 70% Male 29% 30% 30% Employee diversity profile (%)  2006/07 2007/08 2008/09 Asian Other 1.0% 0.9% Bangladeshi 0.5% 0.4% Black African 1.1% 1.1% Black Caribbean 0.8% 0.8% Black Other 0.3% 0.3% Chinese 0.2% 0.2% Indian 2.7% 2.6% Pakistani 0.7% 0.7% 0.6% 0.6% 0.2% 0.3% Other Other Mixed Background   Undeclared/Blank   7.8% 13.0% White   84.1% 79.3% Nationwide Corporate Responsibility P45 Length of service (number of years) 2006/07 2007/08 2008/09 < 2 years 16% 23% 23% 2-5 years 18% 18% 19% 5-10 years 25% 22% 21% 10-15 years 10% 10% 11% 15-20 years 17% 13% 9% > 20 years 13% 14% 16% Number of reported accidents  2006/07 930 2007/08 862 2008/09 942 Number of RIDDORS 2006/07 2007/08 33 2008/09 33 33 • RIDDORS are those accidents reported to the local Enivronmental Health Officer under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995  Training days delivered / sponsorship for qualifications 2006/07 Delegate days delivered Number of employees sponsored to study externally 2007/08 2008/09 48705 40618 43292 235 240 200 P46 Nationwide Corporate Responsibility Community Data How Nationwide contributes by type (£ ‘000s) 2006/07 Cash 2007/08 2008/09 3,882 2,829 4,918 268 303 557 396 432 4.439 3,493 5,653 Time Management Costs Total Community Contribution Cash Time Management Costs How Nationwide contributes by type (%) 2006/07 2007/08 87% 81%   8% 13% 11% 2008/09 87% 5% 8% Charitable gift Community investment Commercial initiatives How Nationwide contributes by motivation (%) 2006/07 2007/08 3% 4% 94% 75% 3% 21% 2008/09 3% 86% 12% What Nationwide supports by category (%) Education and young people Health Economic development Environment Arts and culture Social welfare Other support 2006/07 2007/08 2008/09 36% 5% 0% 1%  0% 49% 7% 45% 8% 0% 0% 0% 40% 6% 26% 8% 0% 1% 0% 52% 13% London Benchmarking Group (LBG) key performance indicators 2006/07 Nationwide Community contribution (£ million) 2007/08 Sector 4.43 Nationwide 12.2 2008/09 Sector 3.49 14.3 Nationwide 5.65 Sector 19.27 Community contribution % pre-tax profit 0.68 0.59 0.51 0.6 2.67 0.49 Contribution per employee (£) 319 315 191 362 299 303 Community contribution % Revenue 0.23 0.19 0.16 0.25 0.25 0.11 Nationwide Corporate Responsibility P47 Environment Data How we use the following data We use the data on Customer Accounts to help us understand more about our environmental performance. For the purposes of understanding our environmental performance Customer Accounts are calculated as the number of open accounts with one or more named customers. Where an account is open in one or more persons names the account is still counted as one account; i.e. we count open accounts not account relationships. Customer accounts (millions): Number of accounts (millions) Percentage Change 2006/07 22.45 - 2007/08 23.67 4% 2008/09 26.22 4% Baseline: 2000/01- 14.56 million customer accounts CO2 emissions (tCO2) (Total Scope 1 and Scope 2 emissions) 2006/07 51,498 3357 54, 855 Energy use in buildings Business travel Total 2007/08 57,631 3307 60,938 2008/09 58,665 3214 61, 879 Baseline: 2001/02- Total Scope 1 & Scope 2 emissions was 48,075 tCO2 Total Greenhouse Gas (GHG) emissions from energy use in our buildings (tonnes of CO2 equivalent (tCO2eq )) Energy use in buildings GHG (tCO2eq) Of which: Tonnes of carbon dioxide (tCO2) Tonnes of methane (CH4) -as carbon dioxide equivalents (tCO2eq)) Tonnes of nitrous oxides(N20) -as carbon dioxide equivalents (tCO2eq) 2006/07 51,871 2007/08 58,041 2008/09 60,261 51,498 57,631 58,665 26.47 30.33 31.14 346.62 380.18 399.20 Tonnes of Greenhouse Gas emissions (tCO2eq) per 1000 customer accounts 2006/07 2.31 2007/08 2.45 2008/09 2.3 Total Greenhouse Gas emissions From energy use in our buildings (kgCO2eq) - per meter squared of building portfolio 2006/07 187.2 2007/08 194.9 2008/09 208.2 Gas Oil, Electricity & Natural gas consumption (million kilowatt-hours) 2006/07 110.5 2007/08 125.7 2008/09 129.4 P48 Nationwide Corporate Responsibility Gas Oil, Electricity & Natural Gas Consumption (million kilowatt-hours per 1000 accounts) 2006/07 4,918.9 2007/08 5,316.2 2008/09 4,935.4 Gas Oil, Electricity & Natural Gas Consumption Baseline (2000/01): 6, 836 million kilowatt-hours per 1000 accounts. Gas Oil, Electricity & Natural Gas Consumption (million kilowatt-hours per meter squared of building portfolio) 2006/07 398.7 2007/08 422.2 2008/09 447.0 Gas Oil, Electricity & Natural Gas Consumption Baseline (2000/01): 360.8 (million kilowatt-hours per meter squared of building portfolio). About these data tables: In all instances data refer to the financial year 2008/09, and exclude: the subsidiary Nationwide International, Nationwide Ireland, and our Regional Brands (the Cheshire, Derbyshire and Dunfermline Building Societies). Emissions for road travel are calculated using actual vehicle mileage and CO2 data for individual cars based on manufacturers’ emissions data. For tCO2 from energy used in our buildings we’ve re-calculated emissions reported in our previous Better Society reports to enable us to make like-for-like comparisons for energy use in our buildings. We’ve taken this decision based on guidance from Defra’s GHG Conversion Factors for Company Reporting (June 2009). Carbon dioxide equivalent and kWh from Gas Oil, used in our stand by generators, is calculated using an estimated no of litres combusted, based on generator size, number of ‘runs’ and the duration of each ‘run’. We will be looking to better quantify our use of Gas Oil in our next CR report. For the purposes of understanding our environmental performance, accounts are calculated using the number of open accounts with one or more customers. Where an account is open in one or more persons names the account is still counted as one account; i.e. we count open accounts not account relationships. All previous data has been re-calculated to reflect this change. For more information on what consitutes Scope 1 and Scope 2 please visit index.htm Nationwide Corporate Responsibility P49 Emissions from Business Travel: Types of Transport – Tonnes of CO2 (tCO2) 2006/07 Company cars Hire cars Air Rail Total tCO2 from business travel 2,896.8 460.3 536.1 121.6 4,014.8 2007/08 2008/09 2,912.1 394.6 523.1 135.55 3,965.4 2,765.3 449.0 425.0 54.88 3,694.1 2007/08 14.0 2.5 3.8 2.3 22.6 2008/09 12.9 2.9 2.5 0.9 19.3 Emissions from Business Travel Baseline (2004/05): 3,998 tCO2. Business Travel by Road, Air & Rail (millions of km) Company cars Hire cars Air Rail Total distance travelled (millions km) 2006/07 11.9 2.8 4.1 2.0 20.8 Business travel by road, air & rail baseline (2004/05): 23.7 millions of km. About these data tables: Company vehicles: Emissions are calculated using actual vehicle mileage and CO2 data for individual cars based on manufacturers’ emissions data. Hire car: Hire car emissions were calculated for the first time in 2004/2005. Emissions are calculated based on average miles driven per day and have used an average gCO2/km of vehicles hired during the reporting period, based on car manufacturers’ emissions data. Emissions from air: Air travel data are calculated using sector miles travelled (point to point). Emission data are calculated using Defra guidelines for domestic, short haul and long haul flights (including uplift factors where relevant) for each reporting period. Emissions from rail: Rail travel data are calculated using sector miles travelled (point to point). Emission data are calculated using Defra guidelines for each reporting period. Emissions data for air & rail travel 2007/2008 are incomplete: km travelled modal splits for road, rail and air have been calculated for 2004/05 to 2006/07 and for 2008/09 to estimate 2007/08 data. We aim to validate these figures in our next CR report. P50 Nationwide Corporate Responsibility Waste management in administrative buildings 2006/07 2007/08 2008/09 Recycled waste (inc confidential paper) 922.1 4791.6 4813.4 Sent to landfill 528.5 865.8 878.78 Waste disposal baseline for administrative buildings (2002/03): 865.6 tonnes recycled and 431.5 tonnes disposed to landfill (In 2007 the Portman Building Society branches joined our paper recycling scheme) Water consumption 2006/07 Thousand cubic metres 2007/08 228.9 2008/09 272.9 290.5 Paper use (tonnes) Source/Type In-house print volumes (tonnes) Society photocopier paper Non-recycled 37 Recycled 1121 1065 Total 1172 1102 Non-recycled 524 527 10 8 534 535 Total All paper types 2008/09 51 Recycled Point of sale materials* 2007/08 Non-recycled 0 0 Recycled 2369 2215 Total 2369 2215 575 564 Recycled 3500 3288 Total 4075 3852 Non-recycled *These items are printed by our supply chain partner on non Nationwide premises. This is the first time we have reported paper consumption; we will look to further validate these figures in our next CR report. Nationwide Sustainable Housing Awards Action for Children Day Disability Sport Events Swindon Half Marathon Shelter Housing Support Services Please contact us at: [email protected] STOP PRESS: Our new Members’ Zone continues to offer a great way for us to talk to you and you to us.