AVEVA, as a global company, understands the impact that we can have on our stakeholders, on our communities and on our environment.
Preparing for growth
This past year, through the combination of AVEVA and the Schneider Electric industrial software business (SES), we have merged together two outstanding software companies, to create a new global leader in engineering and industrial software. Through this combination we have grown substantially, bringing our employee numbers to over 4,400, spread across over 80 locations in more than 40 countries. Our people are critical to our business success, and we have worked hard to engage and communicate essential information to all our stakeholders around the future growth of our business. Throughout the integration planning of the combination of the companies, we worked together to develop communications that welcomed, explained to, and supported all employees as they joined the new combined AVEVA, helping everyone understand what would happen and when. This of course continues as we operate as one organisation – through a combined change management strategy we will continue to develop and support our employees so they understand clearly our business strategy, their role and how they contribute to our success.
Engaging with our employees through effective communication
The way our employees communicate outside of work has changed over recent years at a great pace with the development of social media, and we recognise that some traditional methods of communications are now no longer relevant. We are reflecting this change in the way employees receive information when they come into the workplace. This is critically important through periods of change, so we have developed our strategy to make sure that we provide quick and easy access to tools that engage our employees. We have moved our intranet to a Cloud-based tool, providing access when on the move or working away from the office. The functionality is based on social media tools, providing the option for employees to comment, like, blog and collaborate with each other, wherever they are located.
As the tool is Cloud-based, employees joining AVEVA as part of the combination were able to access the intranet on their first day, with many sending welcome messages to each other. Through the intranet and the wellestablished network of Global Communications Ambassadors across AVEVA, the communications team continues to encourage articles where employees can share stories of where they have supported each other, raised funds or supported their local community, as well as to recognise successes. The new tool is proving to be a more collaborative environment in which to communicate, as well as enhancing employee engagement, providing more opportunity for two-way dialogue, particularly with the Executive Leadership Team. Feedback is something we ask for regularly, with the use of the pulse survey tool and through other mechanisms. We asked for our employees’ views on the plans for the combination leading up to the close of the transaction, using the feedback to provide relevant updates. We have continued to ask for feedback, either through the online tool or our ambassadors, so we can take the appropriate action and provide regular integration updates. We also ask our ambassadors to provide comments and suggestions from within the regions on the topics people want to hear more about.
Developing AVEVA’s ‘new’ culture
AVEVA has undergone a transformational change in the past 12 months, combining two globally recognised and successful organisations to create one inclusive and diverse organisation. As part of the overall project to integrate the two businesses, the culture of our new organisation is an important element to develop. Culture is the knowledge, mindset and behaviours of our employees that uniquely define the ‘new’ AVEVA. We are working across the organisation, bringing teams together to help us answer the question of what we want our culture, our values and our customer and employee experiences to be. Through the sharing of stories of what is great about each organisation and by collating ideas and thoughts, we will develop a culture that our people will want to both own and believe in, so we can better serve our customers and shareholders to reflect the way we work. The work has begun and we will be engaging employees in the outcomes and how they can get involved over the coming months.
Supporting women in our industry
As an engineering and technology organisation, we understand the challenges faced in hiring women into technical roles across our industry. To address this, we launched AVEVA’s Women in Science and Engineering (WISE) programme during the year. WISE is a UK campaign for gender balance in science, technology and engineering. Our involvement with WISE will support us with best practice and the opportunity to learn from other Science, Technology, Engineering and Maths (STEM) organisations facing similar challenges. As a global organisation we are looking to apply the approach across all our regions, and we have a vision to raise the number of women in technical roles from the existing level of 20% to 30% by 2020.
In recognition of our commitment and changes we have made on the journey so far, the WISE Campaign named us Employer of the Year in 2017. We have made progress in our commitment to WISE and with the continued support of our Board of Directors and Executive Leadership Team, we will continue to drive the changes required. This year we published our Gender Pay Gap Report, covering employees in the UK. The full report is available on our website at http://www.aveva.com/en/ Investors/Corporate_Governance/ Corporate_Responsibility/ On average, women were paid 26% less than men. AVEVA, like many other engineering-led organisations, have more men within the organisation, with a disproportionate representation in senior roles. In the UK, particularly in our Research & Development function, we have a high concentration of engineering roles. Our WISE initiative will help us to redress the balance, along with our continued investment in both graduate and apprenticeship programmes. Whilst we recognise it will take time to deliver our vision, we are making changes now, to see a positive impact later. Our global graduate and apprenticeship schemes continue to grow, covering both technical and business-based disciplines. Many of our candidates go on to enjoy successful careers with AVEVA. This is something we look forward to expanding over the coming years.
Advancing our talent at AVEVA
During the year we invested more into our Talent Acquisition team as we continue to seek the highest calibre employees to join our team. Our Learning and Development team continues to offer employees tailored programmes and a range of opportunities for both career progression and personal development, as well as for rolling out mandatory refresher training on areas such as IT security. Other areas where we mandate e-learning, alongside updates to corporate policies, include Anti-Bribery and Corruption, Whistleblowing, Corporate Gifts & Hospitality and Export Compliance. With the introduction of the new GDPR guidelines in May, we conducted local training and communicated via our internal channels, to support our employees and managers in understanding their responsibilities and actions required.
Science, Technology, Engineering and Mathematics (STEM) ambassadors
Linked to our vision to develop our recruitment of talent, AVEVA has a number of STEM ambassadors across the organisation who dedicate time to speak with and mentor school and university students about the benefits of a STEM career choice. AVEVA continues to build strong relationships with local schools. As well as its sponsorship of the Engineering and Maths courses through the provision of AVEVA employees’ time and support at Villiers Park Educational Trust, based in Cambridge, AVEVA has also helped students at the Netherthorpe School in Chesterfield, UK, to develop a STEM project as part of the Go4SET initiative. It aims to encourage young students aged 12-14 to get involved with STEM-related activities and demonstrate how they can be applied in a real-world setting. We work with an organisation called ‘Form the Future’, whose mission is to empower young people in their career choices and prepare them for the future, and to enable businesses to safeguard and build their talent pipeline. Through Form the Future we work with 11-18 year olds, to give them essential skills for their future careers and inspire their interest in STEM. Relationships like this are a great example of our outreach agenda supporting our WISE strategy. We want to encourage more students, especially females, to take up STEM subjects at GCSE level.
AVEVA has continued to work with local vocational training centres, universities and further education establishments to donate software and training for the use on engineering and Computer-Aided Design (CAD) degree courses. It benefits students, employers, and the global engineering economy in developing engineering skills, understanding engineering concepts and industry-ready knowledge, which can be applied directly to capital-intensive industries. During the year we donated or subsidised software to educational establishments in Vietnam, Indonesia, India and South Korea. Colleagues in India visited the Sridevi Women’s Engineering College in Hyderabad, where our volunteers mentored the MBA students on skills such as CV writing, group discussions, and personal interviews. AVEVA presented its first University award in 2018, when Technical University (TU) Dortmund and West Virginia University received funding for research programmes tied to engineering design and simulation. Winners were selected from 20 submissions, and funds will be used for research that provides proof of concepts, demonstrations of feasibility and related activities. Selection criteria were based on a number of factors, including how the Research & Development grant might drive future innovation across industrial operations, how it could be completed through the use of existing resources, and how the output could be incorporated into future software offerings.
Supporting our local communities through charitable giving and volunteering
Corporate Social Responsibility is a great way for us to engage with our local communities and understand their needs better. It’s also a way for our employees to express their interests, by supporting charitable causes closer to their hearts. Throughout the year, AVEVA continued to build close relationships with local communities by both volunteering and fundraising, and has donated nearly £50,000 to charities and good causes. Recipients include the British Red Cross, Arthur Rankin Hospice, Guide Dogs for the Blind, and the Alzheimer’s Society. News of Hurricane Harvey that affected the Texas area back in August 2017 was very close to our hearts. AVEVA’s Houston office was closed for a period of time, and some employees were displaced from their homes. AVEVA donated $15,000 to a local charity, the JJ Watt Foundation, to support the provision of help on the ground during what was a devastating time for the community. Employees in Houston volunteered at the local foodbank, providing people with much-needed provisions. AVEVA also supports employees who take on personal challenges to raise money for charities of their choice by matching the funding raised. Charities that benefited during the year included Sarcoma UK, Macmillan Cancer Support and East Anglia Children’s Hospice. Across the globe, AVEVA employees continued to give time and help fundraise for their local communities. In India, AVEVA employees were involved in clothes drives, donating items to underprivileged families; they also gave numerous blood donations in conjunction with local blood banks to support medical emergencies and care for sufferers of the disease Thalassemia. Colleagues in Japan helped to raise money for vaccines, improvements to health facilities and manpower training in Asia and Africa.
Our policies – supporting our people
As a global organisation, we recognise that our business has the responsibility to respect and to contribute positively to human rights. We are committed to improving our practices for a number of mandated and monitored policies and training. Policies are there to ensure that the Company understands its role in making sure we are a compliant organisation, and are committed to acting ethically and with integrity in all business matters. These are reviewed on an annual basis and cover Anti-Bribery and Corruption, Respect for Human Rights, Social matters, Employees, and Environmental matters.
In the last 12 months, following the most recent policy reviews, AVEVA has updated and improved its employee policies in a range of areas, including paid parental leave, and in recognition of the gender imbalance driven by the recent gender pay gap requirements outlined above, on setting aspirational targets for the number of women both invited to interview as well as employed by the Group, particularly in senior management roles. AVEVA has an equal opportunities policy, covering everyone working in or for the Company. The policy is designed to tackle all forms of discrimination and celebrate diversity in the workplace. AVEVA is committed to improving its practices to combat slavery and human trafficking and to ensuring that there is no modern slavery in any part of its supply chain. AVEVA has a very clear stance on Anti-Bribery and Corruption. We have a robust policy in place and, as a global business, have defined what constitutes a breach of the policy. We mandate the completion of e-Learning modules for Anti-Bribery and Corruption for all employees, to ensure that everybody is aware of both AVEVA’s and their own obligations.
Transparency and disclosure are fundamental to our relationships with customers, partners and suppliers. We maintain open, honest and fair discussions with each of our stakeholders to reinforce our reputation as a trusted and ethical organisation.
AVEVA is committed to minimising its carbon emissions, increasing the use of recycling opportunities and reducing the use of valuable natural resources. We are continually improving the way in which we capture and record our emissions data.
For the purposes of this report, the emissions have been calculated according to the ‘Environmental Reporting Guidelines: Including mandatory greenhouse gas emissions reporting guidance’ issued by the Department for Environment, Food and Rural Affairs (DEFRA), and by applying DEFRA’s conversion factors.
We have aimed for the greenhouse gas (GHG) emissions to be captured for all of our UK and overseas offices between April 2017 and March 2018, but unfortunately it has not been possible to collect carbon emission information from all of our heritage SES offices, so instead we have estimated emissions data based on headcount information of heritage AVEVA and SES, using data from our heritage AVEVA offices. The data presented is consistent with the Reported numbers (i.e. on a reverse acquisition basis). Due to the complexities of collecting carbon emission data from the SES business, the comparative data presented is for heritage AVEVA only. We have put processes in place to be able to capture this information for the SES entities for FY19 onwards. The 2017 financial year serves as the baseline for our targets. For our carbon intensity ratio we have measured our carbon usage as it relates to our business performance, citing tonnes of CO2e/£ million of revenue. In 2018 this intensity ratio reduced to 13.65 tonnes CO2e/£ million (2017 – 15.14).
Tonnes of CO2e
|Scope 1 – Combustion of fuel and operation of facilities
Scope 2 – Electricity, heat, steam and cooling purchased
for own use
Scope 3 – Transmission and distribution losses
|Intensity measurement (Scopes 1 and 2)
– Tonnes CO2e/£m revenue