Sustainability and environmental performance are often used interchangeably.

To have a truly
sustainable business, we must not only achieve (and exceed where possible) key social, environment
and quality standards, but also meet key financial commitments such as cash flow and profit. The
business has recognised for some time that our best performing projects not only have an excellent
health, safety, environment and quality record but also perform well financially. In response to the
sustainability challenge, in January 2013 Taylor Woodrow launched its Sustainability Matrix. The matrix
is part of core business strategy and performance against each element of the matrix is discussed and
reviewed monthly at the divisional management meetings. The matrix is comprised of a range of key
performance indicators (KPIs) split into three areas: Economic Social Environment

The sustainability KPIs were launched in January 2013, and several core KPIs are monitored and
measured via the Project Managers Report (PMR). These core KPIs are collated into a league table to
show the best and worse performing projects based on the information provided by the project
managers. Some of the core KPIs are also linked to performance related incentives on the project, so
there is a personal financial incentive to perform well for the projects senior management team.
Performance against the KPIs is split into: Threshold, Expected and Aspirational. Threshold: Minimum,
required level to avoid threat to business. Expected: Level required for assured sustainability in line with
our best performing competitors. Aspirational: Challenging but achieveable level of performance -
differentiation of performance in relation to competit