We have a very simple strategy — to hand off a stronger, more sustainable business to the next generation. It doesn’t mean just being a ‘green’ business — it needs to be economically sustainable, environmentally sustainable — the sort of business that the next generation wants to carry on.
Wates Group, one of the leading privately-owned construction, residential development and property services businesses in the UK, celebrated its 125th anniversary in 2022, and the company in the same year won the prestigious Queen’s Award for Enterprise in the Sustainable Development category for the third time, unique in the sector.
The company’s sustainability journey began in the mid-‘70s when Wates became involved with an eco-village development where the company built the most sustainable house that had ever been constructed in the UK. The development was one of the earliest public recognitions of the importance of energy performance and the efficiency of housing. Since then, Wates has continued further along the sustainability journey.
In the words of Wates Group Chairman Sir James Wates, “Being a force for good doesn’t come automatically. Companies need clarity of purpose, grounded in social value, and a good steersman to help them deliver that value. Our business is construction, development and property services, so we’re very much in the built environment — one of the biggest contributors to carbon in the world. At the very least, we want to be a business that’s responsible and responsive to that.”
Handing over a stronger business to each generation
Sir James emphasizes that “We have a very simple strategy — to hand off a stronger, more sustainable business to the next generation. It doesn’t mean just being a ‘green’ business — it needs to be economically sustainable, environmentally sustainable — the sort of business that the next generation wants to carry on. It also has to be sustainable in terms of the communities we engage with and our people. And it must be structured in a way that future generations are able to own it in a successful way. So, there are a multitude of issues.”
A significant focus of Wates’ strategy today is the recognition that diversity and inclusion are major contributors to sustainability. As Sir James explains, “If you’re always fishing in the same pond, you’re getting the same answer every time. So as a business, you always have to be looking across a pond that’s larger than your natural pond — and the more angles you can bring to the table, the better.”
Turning sustainability into a competitive differentiator
The Wates property services business conducts public sector social housing repairs and maintenance. As such, a major part of the company’s service offering is related to how the company engages with its tenants and with the local community.
Wates hires local staff. The company provides training on how to ‘own’ properties by equipping their customers with the skills to maintain and repair their homes through apprenticeships and training programs. Watts Property Services explains that “We engage with the tenant community to support what they’re doing — which, in turn, supports the local community overall. Training and teaching our customers are ‘soft’, high-value outcomes that give us a competitive advantage. It’s something we’ve always done, but now we’ve codified it. We’ve recognized that it is something that has always come naturally to us, and perhaps the time has come for us to be less quiet about it.”
Disrupting traditional operating practices
From a practical point of view, Wates established a sustainability committee of the board approximately six years ago. It is led by a family member to ensure that there continues to be high engagement on sustainability issues at the highest level. The company has committed to net-zero carbon in its operations by 2025, and to do that, it is investing in the people who understand the issues in the business.
“Alongside that”, says Sir James, “we have looked at our governance practices, which continue to shift and evolve. We’re looking to achieve more strategic, highlevel governance where we can set out the values of the family — which are all about having a sustainable business in its broadest possible sense — and translating those values throughout the business and with our stakeholders.
Underneath it all, I believe that we have to disrupt and change the way we’ve been operating for the past 125 years. We have to do things differently, seize new initiatives and be open minded to make our business sustainable for the next generation, and the next generation after that.”
