Section 172 of the Companies Act 2006 requires directors to take into consideration the interests of stakeholders and other matters in their decision making.
The directors continue to have regard to the interests of the shareholders, company’s employees, customers, suppliers and other stakeholders, the impact of its activity on the community and environment along with the company’s reputation for good business conduct, when making decisions.
In this context, acting in good faith, the directors consider what is most likely to promote the success of the company for its members in the long term.
| Stakeholders | Engagement | Key Topics this year | Main impact |
|---|---|---|---|
| We owe fiduciary duties to our shareholders who have significant capital invested in the business for the long term. We need to ensure the financial wellbeing of their investment. | We provide regular updates during the year on both financial and non-financial matters to our shareholders, as part of a wider report on the performance of the Group. In addition, our Group CEO meets with shareholders face to face during the year. | – Financial performance against budget. – Managing the impact and disruption of Covid 19 – Replacement of existing sites within the M25 with a new hub location. – Simplification of the group’s structure. – Significant business development opportunities. – Operational matters. | – Shareholders are engaged, fully informed and supportive of management. |
| Employees Our employees are key to the success of our business. Their wellbeing and engagement in the business are our top priorities. | We communicate constantly with our employees. During this year this included: – As part of our ISO accreditation, we have a global code of conduct for all employees. – We have a reporting and monitoring system for the tracking of incidents and near misses from identification to resolution. – PentaNet, our internal share point site, gives employees a clear view of updates and business developments across the Pentagon group. – We undertake an annual voice of the business exercise across all Pentagon businesses, where each entity globally gives feedback on behalf of their teams on the group’s performance. – Regular health and safety reviews and updates. – Training and development. | – The move to the new hub location at Dartford. – Regular message from the Group CEO to all staff on the business. – Employee engagement using regular updates on customer wins and job volumes processed each month. – Covid-19 employee wellbeing guidance, workplace assessments for remote working, refresher training on cyber security and fraud, return to workplace safety audits. | – A confidential whistle blower’s hot line accessible to all staff around the globe. – Employee feedback via PentaNet and the voice of the business exercise. – QHSE incidents and near misses reporting across all the group’s global sites are categorised by root causes. This helps us to ensure that we maintain a focus on best practice. – Increasing use of the occupational health scheme. |
| Customers We value our customers, providing them with Best-In-Class service and they generate the turnover to invest in our people and business and add value to our shareholder’s investment. | – We have regular email updates to all customers. In addition to this, our sites have regular contact with their local customers and the larger multi- site customers are kept informed by our regional management teams. | – Contract performance. – Keeping customers updated with possible solutions to operational issues including Covid-19. – Working collaboratively with our key customers to meet their complex and time critical business needs. – Renegotiation of contract terms. | – We maintain and strengthen long standing key customer relationships in the year. – Key customers have been supportive of our move to a hub location at Dartford. |
| Stakeholders | Engagement | Key Topics this year | Main impact |
|---|---|---|---|
| Suppliers Providing us with essential time critical services. They ensure we can operate our business efficiently and effectively, in line with our customer’s expectations. | – We maintain a list of approved suppliers, who are regularly screened against our internal ISO accredited QHSE criteria for international compliance, quality, health & safety, and security. | – Performance reviews of approved suppliers to ensure continued compliance with our standards. – Renegotiation of contract terms. | – We maintain a constructive long-term relationship with key suppliers. |
| Bankers We have a long-standing relationship with our bankers, who provide support in terms of banking facilities to ensure us to invest and grow the business. | – We have regular contact through quarterly business reviews and ad hoc day to day conversations on international operational transactions. | – Financial performance of the business. – Compliance with international compliance regulations including anti Bribery, KYC and sanctioned countries restrictions. | – As a result of regular communication, the company enjoys good relations with its bankers. |
| Community As part of the wider Pentagon Group, we operate a Global Network of Logistics and Supply Chain Management Solutions. We must ensure that our operations have as little effect on the areas in which we operate. | – We communicate regularly with our customers and the wider population via our website and letters. – We have put in place a social community to help select and support a handful of local charities. – In Aberdeen, we have put in place an apprenticeship scheme supporting local school leavers. – In Dartford, we have recently introduced schemes for school leavers and graduates. | – Develop more rounded individuals. – This year, our staff supported several charities in the year including AberNecessities who support underprivileged families in Aberdeenshire, the Sparkle Foundation who focus on improving the life chances of vulnerable children in Malawi and the Australian Bushfire Appeal. – Understanding cultural differences. | – Information being disseminated to people who may otherwise not be aware of what it is we do and how we can make a positive impact on the built environment. – Enabled young adults who would otherwise not have the opportunity. – Support the social network in our local communities. |
| Environment As part of the wider Pentagon Group, we operate a Global Network of Logistics and Supply Chain Management Solutions. We must ensure that our operations have as little effect on the environment and where possible emissions are reduced. | – Identified a supply chain partner to engage with for C02 efficiency and reductions across our UK sites. – As part of our ISO accreditations, we have global certification to ISO 14001 environmental standards. – Focus on our Business Sustainability rating and Corporate Social Responsibility. | – Reduction of emissions to air. – SECR. – ESOS. – Energy efficiency opportunities for new premises. – Client usage. – Assessment of our Business Sustainability rating and Corporate Social Responsibility. | – Energy savings identified at key UK facilities and reductions to C02 usage. – Upgrading facilities at new Dartford location to realise reduction in energy usage. – Ecovadis silver medal for Business Sustainability and Corporate Social Responsibility. |