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Independent Scrutiny Board reports on ENGIE’s progress on Responsible Business
ENGIE, the leading energy and services Group, has reported for the first time on progress made against its Responsible Business Charter, which was launched in 2018.
Operating at the highest economic, social and environmental standards has always been absolutely fundamental to ENGIE’s operations. In September 2018, to further underline the commitment of the business in this area a new Responsible Business Charter was established. The Charter ensures that ENGIE will make commitments in the four areas of fair business growth, transparency and accountability, being a fair employer, and supporting communities and the environment. The four commitments are validated by supporting Key Performance Indicators (KPIs).
To hold ENGIE to account for delivery and publicly report against progress, a Scrutiny Board was also established chaired by Lord Kerslake and its independence verified by the Centre for Public Scrutiny - a national charity specialising in governance and scrutiny. The report highlights a number of achievements made during the last 12 months including:
- The voluntary publication of pay ratios and improvements made
- Improved standards in employee engagement and recognition
- Commitment to new diversity and inclusion targets for ethnicity and gender
- The review of benefits for lower paid staff which resulted in the inclusion of additional holiday entitlement
- Achievement of the new ISO sustainable procurement standard
- Progress made in environmental improvement and commitment to zero carbon.
The report also recognised that for other KPIs, whilst progress is being made, desired results will take slightly longer to achieve. These include the fair payment of suppliers, customer service to business clients, reduction in the gender pay gap and improving the data available to inform equal opportunities. The Scrutiny Board was satisfied that realistic and robust action plans are in place for these and will continue to monitor them.
Lord Kerslake, Chair of the Scrutiny Board said: “ENGIE’s decision to create an independent Scrutiny Board is a bold one and they should be commended for it. The business has been at the forefront of promoting high ethical standards for number of years and I believe this type of innovative governance model should seriously be considered by other private sector organisations, particularly those delivering publicly funded services or projects.
ENGIE has been transparent throughout the process, providing full disclosure of any documents requested. The Board see our role as providing independent verification and where required, highlighting issues which may be impacting on the wider sector. We recognise that ENGIE is committed to evolving as a responsible business and ENGIE is on a journey to raise standards.”
Nicola Lovett, CEO ENGIE UK & Ireland said: Creating the Responsible Business Charter and the Scrutiny Board reflected our ambition to a leader in Responsible Business, using transparency and scrutiny to bring additional insight, challenge and drive to the way we operate. After twelve months, I am confident these bold steps were right for our business and that this sets a new standard for the sector to follow. While I am pleased that we have made significant progress in a number of key areas, we understand that there is still much more that needs to be done to meet our own high targets. Throughout 2020, we will continue to work closely with the Board to make further progress acting upon their advice and recommendations.”
The Scrutiny Board will continue its role throughout 2020 to validate and scrutinise the KPIs of the charter throughout the year, with the outcomes and recommendations publicly disclosed , again through an independent Annual Report, managed and overseen by the Centre for Public Scrutiny.
The independent Scrutiny Board is Chaired by Lord Kerslake, with 2019 members comprising Sir Mike Rake, Joan MacNaughton, Lord Adebowale, Jane Ramsey, and Baroness Drake.
More information on the Responsible Business Charter and Scrutiny Board can be found here and periodic announcements will be made as the work of the Scrutiny Board progresses.