To our stakeholders
Date: 14.01.2015

Frontier operates according to four internal key values aimed at promoting staff welfare and engagement. These are:

- fun – making Frontier a welcoming and enjoyable place to work;
- interesting – doing work that is challenging and makes a difference;
- profitable – and sustainably so; and
- open – having a culture that generates trust, respect and integrity.

I am pleased to confirm that Frontier Economics reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations.

We also commit to share this information with our stakeholders using our primary channels of communication.

Yours sincerely,
Michael Ridge
Chief Operating Officer

The focus of the company in this area has been to ensure that none of the work that we do for clients makes us complicit with human rights violations. This has been our focus since Frontier, in its own operations, has and continues to respect human rights principles, in accordance with the laws of the countries in which its offices are located (UK, Germany, Spain, Belgium, France and Ireland).

Risks are most likely to arise for us where Frontier is called upon to work for companies operating in countries where local laws may not fully protect human rights and/or uphold non-discriminatory principles. Our priority is therefore to ensure that, as Frontier grows internationally and expands the scope of the work it does, we do not place ourselves in situations where we may be complicit with or are remaining silent in the face of possible human rights violations.

Frontier’s public commitment to the UNGC in February 2014 was our first formal step. This year our focus has been on putting in place an internal review mechanism that is effective in ensuring that Frontier’s business winning activity remains at all times consistent with the principles of the UNGC.

Goals for the coming year

Frontier will be monitoring the application of this framework in the coming year, to ensure that it has been firmly embedded into Frontier’s culture. We will be communicating to colleagues across the firm the importance of giving explicit consideration to these issues when doing business. Our commitment to human right principles will be explicitly embodied within our general terms of business.

Frontier’s Executive is ultimately responsible for ensuring that the company does not engage in commercial relationships that would make it complicit with human rights violations.

We do not consider there to be any concerns internally in this area. Frontier has put in place policies and open channels of communication in order to identify and address any issues that might arise in relation to employee welfare. For example, we have anti-harassment and anti-bullying policies to protect our employees alongside a range of other policies aimed at promoting well-being within the workplace. Perhaps more importantly, Frontier has a flat management structure where communication between colleagues at all levels in the company is actively promoted and colleagues with management responsibilities in particular listen and are responsive to feedback from the wider firm.

Progress made this year

In 2014, we have progressed in this area in the following ways:
• We have made a public commitment by joining the UNGC. We have made presentations internally to ensure that all colleagues are aware of our commitment and what this implies. Responsibility for monitoring, promoting and communicating our activities in this area has been given to our Corporate and Social Responsibility team.
• We have implemented a bid review framework, whereby project managers are required to consider explicitly any possible human rights issues when bidding for new work. After an initial trial period, we have issued guidance on how to assess the extent of such risks. This guidance also makes clear that any project where there is scope for concern need to be considered and approved by the top executive body at Frontier (the Exec). In addition, other colleagues are encouraged to voice any concerns that they may have regarding the compatibility of any project with both these principles and the values of the firm.

Frontier has introduced a process for tracking how possible new work has been assessed to help us better understand the risks that we face and ensure that we meet the UNGC principles, including those relating to human rights violations. As part of the new bidding review framework, Frontier’s project managers are required to report any potential project leads that have been rejected due to concerns that they might conflict with the UNGC principles or out values.

Outcomes this year

While in the previous year project managers reported a small number of projects that were considered and rejected on these grounds, no such projects were identified in 2014. We believe that this reflects the fact that, following the guidance issued, project managers have internalised the UNGC principles. While this is positive, we remain vigilant as we further expand our business.

There have been no issues raised under our anti-harassment and anti-bullying policies this year, reflecting our strong track record since Frontier was created 15 years ago.

Frontier is owned and run by its employees. Much of the day-to-day management of Frontier is done through internal teams containing a mix of people from different levels and roles within the business. The welfare of our colleagues is at the very core of our activity, since the value we bring to our clients lies in the people who work at Frontier.

Frontier runs a large range of initiatives aimed at ensuring staff feel happy and fulfilled in their working environment. These include measures to promote work-life balance, career development, progression and fulfilment, and overall social cohesion within the company. It also means promoting colleagues’ engagement with the values of the company, and ensuring that they feel empowered to make change happen.

In terms of the labour principles specifically mentioned in the UNGC, our focus has been on ensuring the absence of any form of discrimination. Neither forced nor child labour are a concern in the context of Frontier’s work. Frontier is open to unionization and committed to ensuring all our employees have a voice. Frontier’s open culture promotes staff participation and employee empowerment (each member of staff owns a share of the company and has an equal vote in the company’s AGM).

In the area of discrimination, Frontier is committed to providing equal opportunities to all employees and prospective employees, independently of age, disability, gender, marital or civil partnership status, pregnancy or maternity, race, colour, nationality, ethnic origin, religion or belief, sex or sexual orientation. In addition, as with violations of human rights, Frontier is committed to not being associated with any form of discrimination by clients or other third parties.

Goals for the coming year

Our goal this year is to promote further employee engagement with the Frontier values and its UNGC commitment, in particular among our more junior colleagues. In our view, this is the best guarantee that these values and principles remain relevant and a continuing focus for our staff.

Frontier has put in place a range of policies and initiatives aimed at ensuring the welfare of our employees. These include flexible and generous maternity leave, flexible working arrangements (e.g. working part-time, working from home), supporting charity initiatives (e.g. red nose day, partnership with homeless association), mentoring and external support channels.

On the area of equality, Frontier has a written policy setting out our commitment to combat discrimination on the grounds of ethnic origin, religion or belief, disability, age and sexual orientation. It also monitors whether and how such policies are applied in practice, as we recognise that discrimination may sometimes be implicit or indirect.

Progress made this year

This year Frontier has taken further measures to prevent any potential discrimination issues arising, in particular:
 - colleagues have undergone training for interviewing to ensure that their assessment of candidates is based entirely on objective criteria; and
 - emphasising in the latest guidance provided to project managers that, in pursuing new business, they must ensure that Frontier is not placed in any situation where it would be associated with forms of discrimination.

In other areas, Frontier has:
 - pushed forward mental health initiatives, aimed at increasing the awareness, understanding and acceptance of mental health issues and problems; and
 - revamped its framework for pro-bono work in order to promote wider staff participation.

We monitor our performance against the company’s values through a variety of informal and more formal ways: staff feedback, group discussions, our appraisal system and staff surveys. We monitor in particular the data on colleagues’ promotions to understand whether there are potential gender barriers to progression.

Outcomes this year

The overall women participation at all levels of the company was slightly below parity (at around 40%) with a lower level of female participation in more senior positions in the firm.

This legacy position is, however, changing as colleagues progress through the firm. During 2014, Frontier had four senior promotions – two women and two men. At the more junior level, this year we have hired 16 new analysts and consultants – 11 of which (69 %) were women.

Moreover, Frontier is a relatively diverse company, notwithstanding the majority of staff being based in our UK office. This is reflected in the composition of Frontier staff by nationality at the start of 2014 and reflects the effort made by Frontier’s recruitment team.

This effort has continued this year, with 11 of the new analysts and consultants hired coming from outside the UK (69 %), 1 out of Europe (6%).

Frontier’s business does not have, by its nature, a high negative impact on the environment, but Frontier is nonetheless committed to reducing this impact as much as possible.

In particular, Frontier aim is firstly to minimise our usage of paper, energy, water and other scarce resources, and secondly to reduce the impact of business travel on carbon emissions.

Goals for the coming year

Frontier wants to become ISO1400 certified this year.

Frontier has set up a team responsible for reducing Frontier’s impact on the environment back in 2010. In the same year it adopted an environmental policy.

Since then the office has been refurbished with energy savings in mind and we have been expanding the portfolio of off-setting projects to include the Kenyan Energy Efficient Stove Project, which helps build energy saving cooking stoves for villages in Kenya, and the Ugandan Community Borehole Project, which is based around rehabilitation of boreholes in North East Uganda. In addition, Frontier has taken multiple green office initiatives, such as:
 - reduce need or impact of travel – through individual and firm wide video-conferencing systems;

 - waste reduction – through more landfill, recycling, “follow-me” printing system to save paper waste; and

- save energy – through virtualising our server equipment and upgrading our colour printer to low-energy and wax print colours, automatic switch-off systems for office lights and printers, and “zip taps” for hot water.

Our employees are encouraged to do their share in reducing the carbon footprint. With this in mind, the Green Team has been raising awareness around the office regarding the need to switch off the computer equipment when not in use, the importance of recycling and of choosing environmentally friendly transport (this includes company ‘Boris Bike’ account and a ‘cycle to work’ scheme).

Progress made this year

Frontier is currently implementing changes to become ISO14000 certified next year. This implies making a gap analysis of where we can improve further and, based on this assessment, set up an environmental management system.

We review our processes on a regular basis to ensure that all appropriate measures are being implemented and efforts are being made to mitigate harm to the environment.

Frontier also regularly monitors its energy use at the offices and runs annual carbon emission audits, having received “carbon zero” status since 2010.

Outcome this year

This year, the combined impact of our carbon reducing initiatives plus the two offsetting initiatives mentioned above implied net emissions for the year of 0 tCO2e.

Frontier aims to conduct all of its business in an honest and ethical manner. We are committed to acting professionally, fairly and with integrity in all our business dealings and relationships.

Frontier has anti-bribery and corruption policies, and a zero-tolerance approach to these issues. Any employee who breaches this policy will face disciplinary action, which could result in dismissal for gross misconduct. Any non-employee who breaches this policy may have their contract terminated with immediate effect.

Any employees offered a bribe, or asked to make one, or suspecting that any bribery, corruption or other breach of this policy has occurred or may occur, are required to notify their manager or the People Director as soon as possible.

In the 15 years of Frontier’s history, we have not had any incidents with corruption.