We believe that considering our stakeholders in key business decisions is not only the right thing to do, but is fundamental to our ability to drive value creation over the longer term.
The Directors of Unipart, and those of all UK companies, must act in accordance with a set of general duties. These include a duty under Section 172 of the Companies Act 2006 to promote the success of the Company, and in doing so the Directors must have regard (amongst other things) to certain stakeholders and other factors.
In this statement, on pages 23 to 26, we set out our approach to stakeholder engagement and highlight examples of how each of our key stakeholder groups have been considered and engaged.
Further information on our stakeholders and how we engage with them can be found in the Strategic Report, the Sustainability and Responsibility Report and the Corporate Governance Statement within this Annual Report.
Our approach
The Board recognises that the long-term success of Unipart is strongly linked to active engagement with and consideration of all its stakeholders. Effective engagement allows the Board to understand relevant stakeholder views on material issues which may impact the business and helps to inform the Board’s decision making. In accordance with their statutory duties, the Directors are responsible for ensuring that appropriate stakeholder consideration and engagement activities are carried out. However, stakeholder consideration is also embedded throughout the business, with the Executive Leadership Team and senior management actively engaged in communication and involvement initiatives.
At the heart of our approach to stakeholder engagement is The Unipart Way. Principle 4 of The Unipart Way, ‘we manage with a long-term view’, guides our thinking and encourages the adoption of longer-term strategic initiatives rather than short-term gains. We always aim to act fairly across all our stakeholders and create an enduring reputation as a Group where people want to work, customers want to partner with us for the long-term, and suppliers want to collaborate with us, whilst at the same time ensuring the Group maintains the highest levels of ethical standards and support for the environment and the communities in which it operates.
Our people
Why they matter
We believe that our people make the difference. We cannot operate and achieve our strategic goals without engaged employees that feel appreciated and are motivated to deliver for our customers and the Group’s long-term success.
Key priorities
Feeling valued and appropriately rewarded; having a safe, inclusive and diverse place to work with a respectful corporate culture; being able to share their views and have their voice heard in decision-making; having the opportunity to learn, develop and grow.
How the Board engages
The Directors engage with our people in several ways, including regular updates to the business from our Group Chief Executive, management brief newsletters, our in-house news programme, Grapevine, and leadership conferences. In addition, the Directors regularly join leadership team meetings across the business and will frequently take the opportunity to hear from and engage with employees directly during site visits.
How Unipart engages
Through The Unipart Way, our people are empowered to embrace challenges, solve problems and drive continuous improvement. We offer a wide range of training and development programmes, including our Gate to Great journeys, and support our people to learn and grow so that we can promote from within and provide long-term and fulfilling careers across the Group.
Employee engagement is a key metric, and results from the annual employee engagement surveys give the Board and the Executive Leadership Team an informed picture of how our people feel about working at Unipart. As noted in the Sustainability and Responsibility Report, in 2022, our satisfaction score increased to 3.7, with employee engagement increasing to 3.9, reflecting the focus we have placed on:
● increasing the opportunities for personal growth, development and promotion;
● enhancing our recognition culture through the launch of the CARE framework, sharing local best practice schemes and raising the overall awareness of the importance of recognition with our leadership teams; and
● ensuring our people feel cared about by Unipart through our wellbeing initiatives, including the continued roll out of the Mental Health First Aider programme and providing support through Unipart WorkWell, with services such as Lifeworks and Salary Finance.
Our Mark In Action award programme, led by our Executive Chairman, celebrates those employees who have demonstrated world class levels of productivity, quality and customer service. In 2022, 79 individuals were recognised through the programme; they join over 3,500 employees who have received the prestigious Mark In Action award since the programme commenced in 1988.
Our customers
Why they matter
Our customer promise is ‘to understand the real and perceived needs of our customers better than anyone else and serve them better than anyone else’. By delivering our customer promise, we can achieve sustainable, profitable growth to ensure the future success of our business.
Key priorities
To have their needs understood and fulfilled; to be listened to; to enjoy a long-term, mutually beneficial partnership based on transparency and integrity; a positive and timely approach to the resolution of any challenges.
How the Board engages
In support of our customer promise, Board members engage with prospective, new and existing customers. Customer feedback is incorporated into business updates and proposals for the Board’s review and consideration. Throughout 2022, the Board was briefed regularly on the status of our relationships with key customers.
How Unipart engages
By focusing on what matters most to our customers and prospective customers and what is happening in their markets, our engagement activities are designed to ensure that valued customers never leave us and new customers seek us out. The Unipart Way provides a structured approach to drive increased customer loyalty, identify new opportunities with existing customers and win new customers.
Our customer engagement surveys provide detailed insight into our customers’ views of Unipart, our people, our performance, our value, our delivery and our alignment to their goals. The survey offers a valuable opportunity to explore customer perceptions, gain insights into their markets and future direction, and identify how we can increase the value that Unipart provides. Scores and comments are reviewed by the relevant leadership teams as well as the Executive Leadership Team.
Our suppliers
Why they matter
Our trusted suppliers enable us to provide our customers with the high-quality products and services they expect, and support delivery of our customer promise.
Key priorities
Long-term relationships built on mutual aspirations, integrity and professionalism; being treated fairly and ethically.
How the Board engages
The Board reviews and considers supplier relationships and feedback in operational, performance and risk updates. We have strong codes of conduct in relation to anti-bribery and corruption, competition law, human trafficking and modern slavery, and prevention of the facilitation of criminal finances legislation: any departure from these by our suppliers is reported to the Board.
How Unipart engages
Supplier engagement generally occurs on a day-to-day basis at operational levels to ensure that our expectations are met from a quality and delivery perspective. However, where strategic-led discussions are required, engagement is escalated to senior levels of the business.
Long-term agreements are entered into with key suppliers where appropriate, and performance targets are regularly agreed with suppliers to align with our drive for continuous improvement. The Group has instilled a culture of ensuring we pay suppliers in line with commercially agreed payment terms.
Our shareholders
Why they matter
Securing our shareholders’ trust through continuous engagement ensures their ongoing investment and support.
Key priorities
Delivering sustainable, profitable growth over the long-term; seeing proactive and conscientious Environmental, Social and Governance (ESG) plans being formed and corresponding good performance in ESG areas.
How the Board engages
The Group’s largest shareholder is UGC Pension Funding LP, whose shareholdings are beneficially held on behalf of the Group’s main defined benefit pension schemes. Board members attend and participate in pension trustee meetings to support the collaborative relationship between the Group and the schemes and to update the trustee boards on the Group’s performance.
How Unipart engages
A large proportion of our shareholders are existing or former employees and engagement with them is principally through the Annual Report & Accounts. In addition, our Communications team and Group Company Secretary are available to respond to queries from shareholders throughout the year. Our website (www.unipart.com) provides regular updates on our activities and news.
Our pension scheme members and trustees
Why they matter
Our employees and former employees who are members of our pension scheme, represent the heritage of our Group. We have made long term commitments to the trustees of the pension scheme to pay contributions into those schemes in order that pensioners are paid their pensions in full when they retire.
Key priorities
By delivering reliable cash generative growth, the Group can deliver on its long term pension commitments, which coupled with the investment strategy of the pension fund provides the foundation for ensuring member benefits are paid in full and on time.
How the Board engages
The Board agrees scheme-specific funding plans with the trustees of the Group’s defined benefit pension arrangements as part of the triennial valuation process. These funding plans are designed to ensure that, along with a prudent assessment of asset returns, the schemes will be fully funded within an acceptable timeframe. The Group Finance Director meets with the Trustees on at least a bi-annual basis to present updates on Unipart’s financial performance.
How Unipart engages
We actively engage with pension trustees on the performance of investments and assets. Active, deferred and pensioner members can access all the information they need to manage their pension arrangements, including key scheme documentation, through our dedicated website (unipartpensions.com).
Our communities and the environment
Why they matter
Community acceptance and mutual respect allows us to operate successfully and ensures we are a force for good for the people and places we impact. This includes the wider environment, where considerate use of resources contributes towards our long-term sustainability.
Key priorities
To be a socially responsible business that cares about its long-term impact on the environment and the communities it operates in.
How the Board engages
Doing well by doing good has been at the heart of our responsible business strategy for more than three decades. The Directors continue to oversee our sustainability strategy, including our obligations in respect of environmental responsibility. Following our commitment to the UN Race to Zero Campaign in 2021, the Board recognised the need for Unipart to be ambitious on its journey to net zero carbon and, in 2022, it set the target of net zero greenhouse gas emissions across our operations (Scope 1 and 2) by 2030 and carbon net zero across our whole value chain (Scope 3) by 2040.
How Unipart engages
Through our community engagement programmes, we seek to limit any adverse impacts we may have whilst encouraging our employees to play an active part in their local communities. In 2022, employees joined together for the first BIG Charity Challenge to raise money and awareness for Macmillan Cancer Support and Alzheimer’s Society, as well as a number of causes local to our sites and the communities we work within.