Building Sustainably

Building sustainably

Building Sustainably is our framework for future homes, great places and better living. It brings together our ambitions, targets, activities, and metrics across our most important issues. We’re totally committed to Building Sustainably, protecting and enhancing the things that matter to us most as a business: our people, the places we create, and the natural world in which we operate.

Building sustainably framework

Nature

Biodiversity & Nature

Target

Demonstrate a minimum biodiversity net gain (BNG) of 10% across all development designs submitted for planning from 2023.
10% of strategic land sites submitted for planning must have a Species Enhancement Plan from July 2025.
Creation of a homes for nature plan for each development submitted for planning from FY26.

FY25 Performance

100%
New target
New target

Progress and Focus Areas

An Ecology Consultant Panel for Divisions has been launched to ensure high quality services relating to BNG. We are also undertaking reviews of BNG sites in construction to ensure delivery of BG Plans in practice.
Implementation of the Future Homes Hub ‘Homes for Nature’ commitment, and monitoing requiring us to install integrated nest bricks, boxes and hedgehog highways in all new developments.
Nature-related supply chain risks and opportunities discovery work completed in preparation for The Taskforce on Nature-related Financial Disclosures (TNFD) and initial high-level disclosure in ARA.
After ten successful years, our RSPB Partnership has been extended for another five years.

Key : On track Target met Monitor Below target/target not met New target

Natural Resources

Waste and Circular Economy

Target

Reduce construction waste intensity (tonnes per 100m2 of housebuild equivalent build area) to 4.54 by 2025.
Maintain 95% diversion of construction waste from landfill.

FY25 Performance

Progress and Focus Areas

Construction efficiency through standardisation in our house types and increased use of timber frame.
A new Waste Management Standard has been launched for Barratt Redrow.
Increased focus on segregation to maximise recycling.

Reducing waste through house design is a key consideration in the new housetype portfolio to be launched in FY26

Modern Methods of Construction

Target

Apply offsite based products and systems in 30% of homes by 2025.

FY25 Performance

Progress and Focus Areas

The adoption of MMC, particularly timber frame construction, helps to mitigate the long-term challenges posed by the shortage of skilled workers within the industry, as well as increasing build efficiency, reducing embodied carbon and on-site construction waste.
Assessed over 20 lightweight facade systems as part of a recent full market review. Trialling a new alternative exterior finish and replacing the traditional brick façade. This consists of a composite board which can be manufactured off-site.

Deforestation

Target

100% of timber certified for net zero deforestation (for all timber procured via Group agreements, BD Living, Oregon and sub- contractor fencing).****

FY25 Performance

99.96%

Progress and Focus Areas

Barratt David Wilson fencing contractors were excluded from data consolidation due to a low response rate from suppliers
We will continue to work with suppliers and commercial managers to seek alternative sources.
Improved access to data will be a focus for this financial year

Water

Target

Installation of meter reading devices to all compounds (% of sites able to provide water data including compound, legally completed plots, sales area and ‘other’)

FY25 Performance

New target

Progress and Focus Areas

Technological solution identified.
Our goal is to improve understanding of operational baseline water use through detailed data, and identify opportunities to reduce consumption through efficiency measures and leakage detection.
The Group Head of Infrastructure and Utilities continues to chair the 'Water Matters' Group with the Home Builders Federation.

Key : On track Target met Monitor Below target/target not met New target

Carbon Reduction

Carbon

Target

Previous BDW target: Reduce absolute scope 1 & 2* GHG emissions 54.7% by FY 2030 and 90% by FY 2040 from a FY 2018 base year.
Previous Redrow target: 42% absolute reduction in Scope 1 and 2 emissions by 2030 and net zero by 2040 versus 2021.
Previous BDW target: Reduce scope 3 GHG emissions 68.7% per 100m2 of legally completed area by FY 2034 and 90% by FY 2040 from a FY 2018 base year.
Previous Redrow target: 25% absolute reduction in Scope 3 emissions by 2030 and net zero by 2045 versus 2021.

FY25 Performance

Targets under development
Targets under development

Progress and Focus Areas

We are in the process of developing a new, unified target to achieve net zero (previously validated targets lapsed at the point of integration).
Significant activities such as an increase in uptake in HVO and a reduction in usage of diesel generators contributed towards emissions reductions in FY25.
99% of our emissions occur outside our direct operations – with an estimated 49% from construction materials, site preparation and building, and 49% from homes in use.

Target

Report embodied carbon based on Environmental Product Declarations for 80% of materials emissions by June 2027.
No diesel generators on sites by 2030.
Extend coverage of HVO across the Group to 60% by June 2026 and 80% by June 2027.
Net-zero greenhouse gas emissions across the value chain by FY 2040.

FY25 Performance

New target

Progress and Focus Areas

Materials and products contribute up to 49% of the whole life carbon. A carbon assessment of ten housetypes in both masonry and timber frame has been carried out. This has informed our approach to quantity-based reporting and have assessed carbon emissions of five product groups: gypsum (plasterboard), bricks; doors, kitchens, PVC.
The use of diesel generators for long hire times is being monitored and reviewed each month to reduce this and obtain site electrical connections.
Hybrid battery storage units continue to be used where appropriate. We have concluded a limited trial of a hydrogen telehandler and are reviewing feasibility for deployment.
The use of HVO is now business as usual across the Group and has contributed to the significant emissions reductions from 2018. HVO abated 5,810 tCO2e in FY25 and replaced 39% (BDW: 56%) of fuel used.
Our Product and Innovation process actively assesses embodied carbon when looking at building materials the Group may wish to trial or adopt.

Zero Carbon Homes

Target

All new housetypes to be zero carbon from 2030 (regulated energy).

FY25 Performance

On track

Progress and Focus Areas

Key findings from eHome2 are informing our exemplar projects and 2025 specifications.
Customer focus group held at the eHome2 and Zed house to explore consumers’ face to face reactions to a zero-carbon home, perceptions of homes built using MMC and to gather in-situ feedback on various technologies within the home.
Working in partnership with an energy supplier to deliver low/zero bills on c.20 plots.
Continued engagement with the Future Homes Hub groups on topics such as electric vehicles, user guidance for air source heatpumps and embodied carbon.

Renewable Energy

Target

BDW: 100% of own electricity is on renewable tariffs by 2025.
Redrow: Purchase 100% REGO-backed renewable electricity for all operations (offices and construction sites) by the end of FY24.

FY25 Performance

Progress and Focus Areas

Continue to engage with a provider of unmetered supplies to sites to secure REGO-backed supplies.
Monitoring of non-Group supplies for plots and compounds has indicated that all are now REGO-backed.
Several offices in the BDW estate have landlord-controlled utilities and as such we were unable to change these to REGO-backed.

Sustainable Travel

Target

BDW: 100% of company car fleet free of diesel and petrol cars by 2028.
Redrow: 100% of company car fleet free to be EVs by end of 2025.

FY25 Performance

88.2% (electric or hybrid)

Progress and Focus Areas

Ongoing work to develop a target to electrify the Group’s commercial vehicle fleet. We are trialling smaller, electric customer service vans to determine the pace of wider adoption.
Group HR and Group Procurement are currently reviewing the fleet policy and the car choices available and improving range of electric cars to 300+ miles.

Resilience

Target

Conduct research and scenario analysis to identify major financial risks associated with climate change, and develop business proposals for mitigation and adaptation.

FY25 Performance

Target met

Progress and Focus Areas

We are in our fifth year of TCFD reporting. In accordance with Listing Rule 9.6.6 R and the Climate-related Financial Disclosure Regulations (CFD) 2022, our FY25 Annual Report and Accounts include climate-related financial disclosures consistent with all eleven TCFD recomendations and all eight CFD requirements.
In FY24, we initiated our alignment with the Taskforce on Nature-related Financial Dislcosures (TNFD), building on our established TCFD reporting.
We are also preparing for the adoption of the International Sustainability Standards Board (ISSB) standards, work is underway to integrate these into our broadeder sustainability risk framework.

Key : On track Target met Monitor Below target/target not met New target

Places

Placemaking

Great Places

Target

All developments submitted for planning from January 2026 will include play spaces that are inclusive.***

FY25 Performance

New target

Progress and Focus Areas

Updated our Inclusive Play Manual (originally produced collaboratively with Whizz Kidz in 2024). The manual establishes a new standard for Play in the housebuilding industry and provides guidance to the business as well as our suppliers on inclusive and accessible play space design, procurement and implementation.
Launched a Playmaking campaign, influencing the way all new developments are built and ensuring that inclusive and accessible spaces become the standard, not the exception.
Working on a new placemaking approach based on a set of principles for designing and delivering high quality, healthy places, creating homes for nature and enhancing existing communities while complementing and integrating with their surroundings.

Key : On track Target met Monitor Below target/target not met New target

Green Finance

Green Lending and Finance

Target

Work with lenders and government to unlock green mortgages for customers to purchase our homes and explore the potential of new green finance products.

FY25 Performance

On track

Progress and Focus Areas

Regular structured engagement directly with key lenders and surveyors to align priorities, promoting the enhancements to New Build lending criteria, process and products.
Supported the Future Homes Hub Valuation and Lending Committee to link energy efficiency and other sustainable benefits to lending criteria and affordability.
Our Head of Corporate Sustainability provided our lenders with a tailored update on our sustainability initiatives.

Key : On track Target met Monitor Below target/target not met New target

People

Human Rights

Modern Slavery

Target

Maintain our status as a Living Wage Employer.

FY25 Performance

Status maintained

Progress and Focus Areas

We maintained our Living Wage Foundation accreditation, reflecting the Group's commitment to ensuring all those who work directly or indirectly providing labour on our sites or within our offices are paid an independently calculated rate of pay, based on the actual cost of living.

Key : On track Target met Monitor Below target/target not met New target

People and Partners

Development

Target

Maintain an average of four training days per employee per year.

FY25 Performance

3.74 training days

Progress and Focus Areas

952 colleagues have already passed through our Management Development Offer scheme.
Our My Learning portal enables access to a wide variety of digital learning modules as well as blended courses, supporting our colleagues' personal development
We run talent development programmes for our most senior talent as well as programmes supporting our diversity and inclusion goals.
Our extensive apprenticeships programmes now provide development opportunities for around 400 colleagues a year, representing trade skills, management development and graduates.

Attraction

Target

Maintain 7% of workforce in a graduate, apprenticeship or trainee role.

FY25 Performance

Progress and Focus Areas

We have engaged with over a million students through our School Outreach Partnership. The partnership was recognised by the Personnel Today Awards where it won the “Innovation in Recruitment” award in November 2024.
58.1% of those who have completed the Graduate Scheme are still employed by the business in Manager or Director roles.
We have four-degree apprenticeships, delivered in partnership with Sheffield Hallam University, encompassing construction, quantity surveying, technical design and real estate. In FY25, our apprenticeship and degree programmes included 405 participants, around 5.0% of our workforce.

Employee engagement

Target

Exceed 75th percentile score in the engagement survey.

FY25 Performance

74.9%

Progress and Focus Areas

Our April 2025 survey, the first which measured responses from the enlarged Group, showed an overall engagement score of 74.9%.

Reward and Benefits

Target

Gender and Ethnicity pay gap reporting

FY25 Performance

Gender:
Mean: 9.6%
Median: 7.4%
Ethnicity
Mean: 6.6%
Median: 3.6%

Progress and Focus Areas

Following the introduction of diversity and inclusion targets for our most senior leaders in FY24, which produced positive results, we have extended this to all leadership across the Group in FY25.
We ensure we have gender balanced and diverse recruitment shortlists and provide inclusive hiring training for all recruiting managers.
We measure gender and ethnic representation in each function and level across the Group on a quarterly basis.

Diversity and Inclusion

Target

35% of all employees to be female by the end of FY26 vs FY23
Overall, 10% increase in ethnic minority employees by the end of FY26 vs FY23.

FY25 Performance

32% of all employees are female
12% increase in ethnic minority employees vs FY23

Progress and Focus Areas

Our Catalyst programme aims to address some of the barriers faced by women as they progress into senior management and leadership positions.
Our Spotlight programme supports colleagues from ethnic minority backgrounds and provides them with a network throughout the business, exposure to senior leaders and valuable learning and insight through expert trainers.
Our colleague networks, supporting gender, race and religion, disability, parents and carers, and LGBT+ play a vital role in creating a welcoming and supportive environment, addressing specific challenges faced by different groups. The networks are each sponsored by a member of the executive team and we run multiple events across the year including virtual “tea and chats”, podcasts, face to face sessions and informative articles for our internal intranet.

Key : On track Target met Monitor Below target/target not met New target

Safety and Wellbeing

Health and Safety

Target

Maintain Injury Incident Rate (IIR) at the level recorded in 2015 (381 or less per 100,000 employees including sub- contractors).

FY25 Performance

BDW: 316
Redrow: 147
Barratt Redrow: 272

Progress and Focus Areas

We remain focussed on improving our site-based processes and procedures, In FY25 our SHE audit compliance improved to 97%.
We continue to build on our health and safety performance through site induction training, safety awareness for all personnel, challenging unsafe behaviours and developing our site managers’ vigilance to health and safety risks on site.
340 Mental Health First Aiders supporting employees across the business.
Expanded our Employee Assistance Programme to include 24/7 remote GP access, cancer assist, medical second opinions and physiotherapy.
Working with the Lighthouse Construction Industry Charity we have delivered a series of ‘Make it Visible Tours’, bringing wellbeing advice directly to our site-based teams. In FY25, 17 sites were visited, engaging more than 400 employees and subcontractors.
New addiction and dependency support service launched with Six MHA, providing colleagues support for any addiction through phone, email or app.

Key : On track Target met Monitor Below target/target not met New target

*market-based – i.e. based on the energy mix Barratt procures. Location-based emissions (that use grid average) decreased by 7% compared to FY24.

**All carbon data is based on full year data, 01/07/24 – 29/06/25, for both BDW and Redrow.

***Applies to full or reserved matters planning applications.Where Barratt Redrow is in control of the delivery and/or supplier, play spaces will be designed to align with the Group Inclusive Play Guidance.

****PEFC (programme for the Environment of Forest Certification) and FSC (Forest Stewardship Council) certified. See our ESG Basis of Reporting for scope.

What matters most

To identify and prioritise the issues that matter most to our stakeholders and our business, we analyse our stakeholders’ expectations as well as the social, environmental and economic impacts along our value chain in a materiality analysis. This helps to ensure our strategy remains relevant and fit for the future while focusing on building long term value.

Both Barratt Developments and Redrow undertook materiality assessments, and they were broadly aligned around the material issues identified. We will use the combined outcomes of both materiality assessments to inform our future strategy.

Barratt Developments' Materiality Assessment

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Redrow’s Materiality Assessment

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Stakeholder Engagement

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Supporting the sustainable development goals

Our strategy has been developed to contribute towards the United Nations Sustainable Development Goals (SDGs), a global blueprint for achieving a more sustainable future. The 17 goals represent an ambitious call to action for sectors of society to address key global challenges including climate change, biodiversity loss and social inequality.

We have reviewed all SDGs and identified nine where our business can deliver the greatest positive impact. This selection was informed by analysis of our operations, material sustainability issues, as well as engagement with stakeholders.

By focusing on the SDGs most relevant to the built environment, we ensure our strategy supports long-term value creation whilst contributing to national and global sustainability objectives.

Supporting the sustainable development goals

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Natural resources