Governance

Standards for running a company

1. Primary goals

2. Key actions

3. Strategy actions

- Senior-level oversight

- Acting responsibly

- Integrated risk and finance approach

- Continuous improvement across environmental management systems

- Collaboration

Focusing on our…

11. Senior level oversight of the whole programme through the four levels of governance. Setting the strategy, measuring, reporting and incorporating transparent and public disclosure of material impacts, progress and targets.

12. Act responsibly and show the highest levels of ethical and moral stewardship regarding tax evasion, lobbying, bribery, and corruption and ensure appropriate whistleblowing schemes are in place.

13. Collaboration with all stakeholders is encouraged and implemented throughout the business.

14. Finance and Risk Teams to drive sustainable investment and transparent disclosure throughout the business with TCFD / TNFD integrated into risk approach. Incorporate sustainability objectives, targets, accountability, and compensation for all managers.

15. Environmental management systems and sustainability frameworks will be established, maintained, and improved. Embed these practices throughout the business and fulfil our moral, legal, and contractual obligations.

1. Primary goals

2. Key actions

2.1 Implementing initiatives through the Plan Zero and Social Value Working Groups.

2.2 Overseeing the full ESG programme incorporating environmental sustainability and social value through our ESG Committee.

2.3 Understanding risks and opportunities for business growth through our Plan Zero Steering Group.

2.4 Reporting into the Board as a standing item on the agenda.

2.5 Establishing a strong culture of ethics and integrity to build trust and credibility with stakeholders.

2.6 Acting in stakeholders’ best interests, including employees, communities, shareholders and customers.

Senior-level oversight

Our governance strategy actions include:

1. Establishing a formal governance structure to address ESG matters with a standing item agenda at each Board meeting.

2. Establishing controls for risk management to balance the risks and growth opportunities addressing the near, medium and long-term corporate strategy.

3. Supporting Board decisions through the ESG Committee, Plan Zero and Social Value Steering and Working Groups.

4. Committing to ongoing dialogue with shareholders, incorporating a full programme of formal and informal events, institutional investor meetings and presentations to ensure that Mitie’s performance, strategies, objectives and transition plans are clearly communicated.

5. Training senior executives in ESG, with renumeration linked to targets.

6. Showing leadership with a Board-level commitment to ESG.

Act responsibly

Our governance strategy actions include:

1. Upholding all aspects of Health and Safety for a zero-harm workplace.

2. Embedding our vision and values into the culture (One Code / Supplier Code of Conduct).

3. Addressing human rights issues and modern slavery in the supply chain – not just at policy level but also investigating and reporting.

4. Ensuring a robust whistleblowing procedure.

5. Improving transparency in public statements and reporting through the website, annual report and ESG report on issues including taxation, lobbying, bribery and corruption.

6. Promoting ED&I with all colleagues and adhering to ethics and our compliance policies.

7. Strengthening our annual employee appraisal (MiReview) process to set SMART objectives that add value to the business, building colleague development plans, and conducting transparent pay reviews related to individual performance on ESG issues.

Finance and Risk Teams

Our governance strategy actions include:

1. Disclosing the organisation’s governance around climate-related risks and opportunities.

2. Disclosing the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning.

3. Disclosing how the organisation identifies, assesses and manages climate-related risks.

4. Disclosing the metrics and targets used to assess and manage relevant climate-related risks and opportunities.

5. Undertaking scenario analysis for two warming pathways – RCP 2.6 (-1.5^oC warming) and RCP 8.5 (-4^oC warming).

6. Risks and opportunities reviewed at appropriate management meetings.

7. Assessing climate risk for seven ‘perils’ – flooding, tropical cyclone, river flood, sea-level rise, precipitation, drought, fire weather stress and heat weather stress. Quantifying the expected cost of damage using financial impact score per peril, scenario and time horizon.

8. Renumerating appropriately at all levels of the business and linking performance to sustainability targets, objectives and accountability.

Environmental management systems and sustainability frameworks

Our governance strategy actions include:

1. Maintaining the ISO14001 Environmental Management and ISO50001 Energy Management Systems.

2. Continuing to report our climate-change mitigation and carbon reporting to CDP.

3. Enhancing the Task Force on Climate-Related Disclosures recommendations.

4. Transitioning the ISO50001 Energy Management System from Mitie Energy to Mitie Group.

5. Adopting the Thrive and Social Value Portal platforms to enhance our reporting on social value against the UK Government’s Social Value Model, aligned to the Mitie Social Value Framework.

Collaboration

Our governance strategy actions include:

1. Continuing to collaborate with policy makers in public and private sector organisations.

2. Creating an investment fund to provide project enhancements, delivery solutions and thought leadership relating to ESG.

3. Seeking out collaboration initiatives with industry peers to transform and improve sustainability and social value in FM.