To deliver on our sustainable development purpose, we announced two important decarbonisation commitments at the UN climate change conference, COP26: one is focused on our energy sector work and the other on our sustainable approach to building design. These commitments take us beyond simply reducing our own Scope 1–3 greenhouse gas emissions to achieve net zero by 2030 and into the wider world of how we deliver our work for clients.
The last year has demonstrated how we can both work flexibly and continue to deliver excellent work for our clients. Many of us have missed the collaboration and creativity that comes from working side by side, while technology has enabled us to work with each other in new ways at greater distances. We want to combine the best of these experiences, so as the pandemic recedes, we are committed to operating a flexible workplace, one that attracts, develops and keeps the best talent here at Arup while supporting their wellbeing. I am really proud of our members and the way we’ve performed over the last 12 months. Our strong performance gives us a solid platform to build on for the year ahead.
Alan Belfield
We are here to createa more sustainable future, balancing the needs of people, places and planet.
We recognise that creating real sustainable development requires combined economic, social, and environmental transformation on a global scale. Our contribution to making this transformation a reality is through our projects for clients. In this annual report we share examples of how our projects, designed and delivered on behalf of our clients and partners, are bringing sustainable development to life around the world.
Annual Report 2021
Creating
Sustainable
Futures
Creating Sustainable Futures is Arup’s strategy and purpose. It drives all work with our clients and the communities in which we are based and work. Arup’s members are determined to shape a better and more sustainable world - for all.
A challenging, yet inspiring year
Alan Belfield, Chair
“
Explore
2021
Our performance
Revenue
Our vision
Our performance
Supporting communities
Awards
Our vision
Our decarbonisation commitments
While this year was an extremely challenging one, it was also an inspiring year. We’ve worked on some fantastic projects, served our clients well in difficult times and continued to win new work.
It’s been incredible to observe what our members have managed to achieve, despite the COVID-19 pandemic and with three quarters of our people working from home. I couldn’t be prouder of the commitment and dedication that everyone has shown.
%
62
%
32
2018
1.56 £bn
2019
1.71 £bn
2021
1.72 £bn
2020
1.80 £bn
In this financial year, Arup delivered a strong performance with our revenue at £1.72bn, similar to the previous year, with an operating profit (before staff-profit sharing) of 10%.
This was a considerable achievement in a very difficult period when COVID-19 had a major impact on our operations, our clients and the economies in which we operate in. The pandemic affected some areas of our business such as aviation, but other areas grew including government and healthcare work. Steps were taken early in the year to introduce various cash conservation measures and unfortunately we had to reduce our staff numbers.
Capital expenditure was reduced, pay rises were delayed and we benefited from a large reduction in business travel costs. We also placed an increased focus on cash collection, working with our clients and suppliers to convert cash efficiently and to pay it out in a timely manner.
These actions have made sure that, overall, we have a very positive cash position – enabling the firm to deal with any shocks to the business resulting from the impacts of the pandemic.
A strong second half of the year saw staff numbers return close to the levels of March 2020, with our forward order book at £1.3bn – the same level as 12 months previously.
Across each of our five Regions we performed well, particularly in East Asia, which was a strong growth area. This has left us in solid commercial position with a return to modest growth expected this year.
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Supporting
communities
Climate change hits the world’s most vulnerable people and communities the hardest. Our members commit their time and expertise to helping communities build resilience to the climate crisis, COVID-19 and to address long-standing challenges of equity and access. Our recent community engagement work has included a focus on sustainable housing and supporting young women to develop their knowledge and passion for science, technology, engineering and mathematics (STEM).
Read more
Million Cool Roofs Challenge
Mexico
Proving the value of passive cooling techniques
Read more
Storm-resistant housing designfor rural communities
Resilient housing for the underprivileged
Philippines
Read more
Digital tools used to accelerate solar-powered air conditioning
Solar Air Conditioning Sizing Tool
Mexico
Read more
Building collective knowledge in low-impact, low-carbon construction
Olkola Knowledge Centre
Australia
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Read more
Inspiring young women topursue careers in STEM
I Wish
Ireland
At a glance
0
3,200
6,400
9,600
12,800
16,000
Members
0
1,360
2,720
4,080
5,440
6,800
Clients
0
30
60
90
120
150
Countries
Rob Boardman
Chief Financial Officer
Gender balance
Full membership
Leadership
%
75
male
%
25
female
Chair’s statement
Robust performance
75th
Anniversary
Sustainable futures
A better
way
Flexible
working
Top of the page
Our vision
Our performance
Supporting communities
Robust performance
Despite the shock to the global economy, we delivered a strong performance for the financial year ending 31 March 2021. Our revenue was £1.717bn, similar to the year before, and we returned a profit of 10% (before the application of the global profit-share scheme), which reflects the substantial effort made by everyone in the firm to maintain our operations through the pandemic.
Notwithstanding the shortterm uncertainty as the pandemic took hold, our continued focus on winning new work and supporting our clients across the business means we are in a strong commercial position for the road ahead. While the world’s responses to the pandemic had major impacts on some of our businesses like aviation, other areas, such as science, industry and technology, and healthcare grew during the year.
75th Anniversary
In 2021, we passed a significant milestone: it was 75 years ago that Ove Arup founded the firm. Since then, we have grown and thrived by doing high-quality work and staying true to the aims and values he identified as central to who we are.
Ove believed in ‘total design’ and we still believe in that today. In a rapidly changing and complex world, only the widest cooperation can solve the big issues the world faces around climate change and resilience.
Although he wouldn’t recognise the digital tools we now use, Ove would be familiar with how we’re trying to influence the world, and the underlying spirit and the creativity that we bring to our projects. He observed that our work must be excellent and socially useful and, as we carry it out, we need to be straight and honourable in our dealings.
I think we are all thankful that he gifted us an organisational structure, a mission and an independence that is as relevant today as 75 years ago.
Sustainable futures
Clarity and direction are incredibly valuable in a crisis. So, in July 2020, we launched Sustainable futures – a new three-year strategy with sustainable development at its heart. It positions us to have a more positive impact on the built environment than ever before – to create a greener, cleaner, fairer and more sustainable society. The strategy now guides the choices that we make and the projects we pursue.
The big drivers for change continue to be around urbanisation, population growth, climate change and scarcity of resources. The pandemic has brought a renewed and vital focus on city resilience and the need to act on climate change.
Our clients are increasingly engaging with the urgency of climate action and the scale of change required to achieve net-zero emissions globally by 2050. Our advisory role has also grown, from services like sustainable investment consulting, through to helping clients get ready for the EU Taxonomy for sustainable economic activities.
A better way
The effects of climate change and the impact of the COVID-19 pandemic has highlighted the increasing importance of resilience – to improve cities’ and communities’ ability to adapt to rapidly changing circumstances and increasing risk. There is a better way to a sustainable future. Our focus is to use our design and advisory services to produce safer, more inclusive, resilient and sustainable cities and infrastructure.
Much of our current work points to the sustainable world we want to see. We’re delighted to be working on the design of 1,000 hectares of artificial islands in Hong Kong as part of the Lantau Tomorrow Vision, proposed to meet the long-term housing, social and economic development needs of Hong Kong.
Flexible working
The last year has demonstrated how we can both work flexibly and continue to deliver excellent work for our clients. Many of us have missed the collaboration and creativity that comes from working side by side, while technology has enabled us to work with each other in new ways at greater distances.
We want to combine the best of these experiences, so as the pandemic recedes, we are committed to operating a flexible workplace, one that attracts, develops and keeps the best talent here at Arup while supporting their wellbeing. I am really proud of our members and the way we’ve performed over the last 12 months. Our strong performance gives us a soli platform to build on for the year ahead.