2014 Sustainability Report

Transcription

Leighton Asia
Sustainability
Report 2014
Contents
Part 1
Managing Director Statement
P01
About Leighton Asia
P03
Projects Awarded and Delivered
P05
Leighton Asia in Figures
P07
Corporate Governance
P13
Roadmap to Sustainability
P15
Stakeholders, Materiality and Risk
P17
Part 2
Leighton Asia, as part of the Leighton
Group, is listed on the following indices:
Performance
P21
Safety
P29
Integrity
P33
Team Spirit
P45
Sustainability Goals 2015
P49
Awards
P53
Current Projects P57
Assurance Statement
P61
GRI Indicators
P62
Appendix
P65
Memberships
P68
Any queries and comments relating to this report should be directed to:
Sustainability.Report@leightonasia.com
CONTENTS
About this report
Report Scope
• Leighton Asia’s Sustainability Report 2014 is our fifth
annual sustainability report. Our previous reports were
published for 2008, 2011, 2012 and 2013.
This report is presented
in two sections:
• This report has been prepared against the G4 (Core)
sustainability reporting guidelines set out by the
Global Reporting Initiative (GRI). Standard disclosures
relating to corporate governance, environmental,
social and economic performance can be found on
pages 62 – 64.
• Leighton Asia comprises three operating companies,
Leighton Asia Limited, Leighton Offshore and Leighton
India under which five business entities operate in
ten countries throughout Asia and the Middle East.
Internally and throughout this report, these five entities
are referred to as: Hong Kong & Macau; Southeast
Asia Construction; Indonesia Asia Mining; Leighton
Offshore; and Leighton India.
• We began gathering baseline data in July 2011 for
all operations except Leighton India and Leighton
Offshore.
• Leighton India and Leighton Offshore began regular
reporting on Health and Safety, Environment (including
environmental performance indicators, Scope 1 and 2
GHG emissions and waste management), and Security,
as of March 2012. Their initial reports covered the
first quarter. Thereafter, Leighton India and Leighton
Offshore began to report on a monthly basis.
Part 1 Pages 1 – 20
Provides an overview of our financial, environmental
and safety performance; our corporate governance;
our sustainability strategy and goals; and our key
stakeholders, materiality analysis and risk management.
Part 2 Pages 21 – 68
Provides a review of our sustainability performance,
measured against how well we have adhered to our
core values:
Performance
Safety
Integrity
Team Spirit
3
• Measurement and calculation techniques are explained
in the Appendix.
• Financial data is presented in US dollars and
environmental data is provided in metric units.
• This report has been reviewed by senior management
and qualified employees who confirm that the content
of this report provides an accurate reflection of our
performance and actions.
For the purposes of quantitative data reporting, Leighton
Asia’s reporting boundary includes all activities that Leighton
Asia businesses, including project sites and offices, perform
within the physical site boundary.
• SGS HK Ltd has been commissioned to provide an
independent assessment of the quantitative data,
initiatives, stakeholder engagement and materiality
analysis presented in this report. Their assurance
statement can be found on page 61 of this document.
LEIGHTON ASIA
SUSTAINABILITY REPORT 2014
REPORT SCOPE
2014 was a transformative year for Leighton Asia. Our ongoing strategic
realignment will enable us to further consolidate our leadership position
and progress our sustainable business strategy in Asia’s infrastructure
markets throughout 2015 and beyond.
1
Last year saw Leighton Asia further
streamline its operations to leverage the
comparative advantage of its respective
businesses. The result is that we are now
consolidating our position as a leader in Asia’s
construction and civil engineering markets.
Key management changes to support our
sustainable regional business model have enabled
our Asia business to emerge stronger and more
resilient than ever. We closed the year with a full
order book and a strong pipeline of work for 2015.
In 2014 we successfully delivered 17 projects across
India, Indonesia, Mongolia, Malaysia, Philippines and
Hong Kong. We were awarded 14 projects with a
combined contract value of US$1.6 billion, bringing
our work-in-hand to a total value of approximately
US$6 billion.
Our sustainable business strategy continues to
target business resilience through talent retention
and development; through improving our
resource efficiency and energy performance in
our operations; and on embedding stakeholder
engagement as a form of risk management at the
operational level.
MANAGING DIRECTOR STATEMENT
Differentiating ourselves as a responsible, reliable,
safe contractor and partner is key to our success.
In the markets we operate in, it is vital that we
maintain our reputation for being a contractor that
consistently acts with integrity.
The completion of our group-wide Code of Business
Conduct training, supported by our anti-Bribery
and Corruption training in 2014, is consequently an
important milestone for our business. This training
continues the excellent work undertaken in 2013
to develop, launch and socialise our Leighton Asia
Code of Conduct.
In terms of our human capital strategy, labour
availability and talent retention present an increasing
challenge in Asian markets. To ensure we attract
and retain a sustainable workforce across our
projects, we have maintained an unwavering focus
on safety.
The appointment of our General Manger, Safety
in 2013 has visibly paid off. I am very pleased to
report that in 2014 we incurred zero fatalities and
achieved an exceptional reduction in our lost time
injury (LTI) rate. Our Wave One and Alliance Tritvam
projects in India achieved 9.6 million and 10 million
manhours Lost Time Injury-free – noteworthy
2
achievements of which we are proud.
We also appointed a Talent and Development
Manager in 2014 with the objective of building a
robust succession pipeline of experienced engineers
and project managers. Our aim is to reinforce our
reputation as an employer of highly professional
people who are loyal to Leighton, and to whom
Leighton is equally loyal.
In response to the global issue of resource scarcity
and climate change, in 2014 we set ourselves the
target of implementing waste and energy efficiency
programmes across 100% of our projects. By the
end of 2014, 88% of our projects had deployed
waste management measures, and 93% had
deployed energy efficiency measures.
prepared for the operational impact arising from
climate change and related extreme weather events.
While our achievement in this area has been
satisfactory, greater effort is required to ensure that
our operations are as resource efficient as possible
and that consideration for energy and waste
management is given at every stage of the project
cycle, from design through to completion.
Looking ahead to 2015, we will continue to seek
out every opportunity to improve performance
on safety; heighten commercial rigour; improve
our resource efficiency; and attract and retain top
talent. By doing so, we will successfully achieve our
overarching objective of optimising our operational
efficiency across all levels of our business.
Not only do these measures reduce our carbon and
waste footprint; they focus our teams on delivering
improved client solutions; result in more sustainable
supply chains; and they deliver a positive impact on
the margin.
In view of increasing resource scarcity, such
measures are considered by Leighton Asia to
be necessary to counter resource scarcity and
commensurate rising costs, and to ensure we are
LEIGHTON ASIA
Manuel Álvarez Muñoz
Managing Director Leighton Asia, India and Offshore
MANAGING DIRECTOR STATEMENT
“
Our Vision
To be renowned for our passionate
commitment to consistently delivering
infrastructure and complex building projects to
the highest standards of safety and integrity;
for embracing innovation; and for leveraging
our broad knowledge base to grow our
people and our business across
Asia and beyond.
”
Who we are
3
Leighton Asia is the leading
international contractor
delivering on and offshore
infrastructure and services to
clients across Asia and the
Middle East. In 2014 we had a
presence in Hong Kong, Macau,
India, Indonesia, Iraq, Malaysia,
Mongolia, the Philippines,
Singapore, Thailand, and the
United Arab Emirates.
What we do
Infrastructure
Since undertaking our first civil engineering project in Hong Kong
in 1978, Leighton Asia has established itself as a market leader in
delivering site preparation and land reclamation, railway systems,
bridges, tunnels, power stations, airports, pipelines, roads and
renewable energy infrastructure.
ABOUT LEIGHTON ASIA
South Island Line (East) - Contract 903 - Hong Kong
Our diverse portfolio of public and private sector projects
encompasses commercial and residential developments, an
increasing number of which meet international and local green
building standards, such as the US Green Building Council’s
Leadership in Energy and Environmental Design (LEED)
standards and Hong Kong’s Building Environmental Assessment
Method (BEAM).
Contract mining
As a member of the Leighton Group, we are the world’s
largest mining contractor with expertise in coal, and ore (gold,
copper, nickel and iron ore) extraction. From feasibility studies
and concept planning to comprehensive mine operation and
environmental management, our proven track record for
excelling under challenging conditions, in remote locations and
extreme climates, makes us a trusted partner in the markets
where we operate. We currently have mining operations in
Indonesia, Philippines and Mongolia.
Where we are
14
18
India
Hong Kong
& Macau
Projects
Projects
2
Projects
12
Projects
Philippines
2
2
Projects
Projects
Malaysia
Singapore
Offshore
DTL3 Contract 935 - Construction & Completion of Jalan
Besar Station & Associated Tunnels - Singapore
2014 current projects
Indonesia
Indonesia
Projects
Mining Projects
17
7
Our Values
Offshore oil and gas infrastructure
Our offshore operations include procurement, construction,
installation and commissioning and life of field services
(LOFS). We focus on subsea pipelines, single point mooring
systems (SPMs), offshore structures and subsea construction
services. Our pipe-lay experience includes both small and large
diameters, as well as some of the most complex subsea pipeline
installations and shore crossings in South East Asia, the Middle
East and Africa.
4
Our core values form the bedrock of our success.
They guide us every day in how we approach our work
and how we interact with each other, our clients and
communities throughout the eleven countries in which
we operate.
Our core values transcend borders. They unite our
many cultures and countries, enabling us to operate as
‘One Leighton Asia’, to a common standard and purpose.
PERFORMANCE
Be commercially competitive
TEAM SPIRIT
Encourage innovation and
technological leadership
Create a fun, challenging and
performance driven culture
SAFETY
Provide a safe and healthy workplace
INTEGRITY
Act with integrity & fairness
Recognise the needs of
the community
Protect the environment
LEIGHTON ASIA
ABOUT LEIGHTON ASIA
Projects awarded in 2014
Renewable Energy
Green Buildings
LEED - Leadership in Energy and Enviromental Design
BEAM: Building Environmental Assessment Method
Country
5
PROJECTS AWARDED
Project name
Macau
Wynn Macau South Casino Renovation Works
Hong Kong
SCL1175 Building Services for Kai Tak Station
Hong Kong
HY/2011/08 CWB Tunnel Bldgs, Systems and Fittings
Hong Kong
SCL1176 Building Services for Sung Wong Toi Station
Hong Kong
HY/2013/01Hong Kong Border Crossing Facility
Passenger Clearance Building
Hong Kong
Hong Kong Observation Wheel-Foundation Works
Indonesia
Freeport-Construction of CIP Office Building
Indonesia
Fonterra Borobudur Project
Indonesia
Coca Cola Warehouse Bali
Indonesia
Freeport
Indonesia
MGM Bambang River Crossing
Indonesia
TCI-Indonesia Cemerlang
Philippines
NLEX Segment 10
India
LULU, Kochi
Classification
BEAM Platinum
Gold LEED
Projects delivered in 2014
Projects delivered in 2014
Country
Project name
Classification
India
Mohali Water Pipeline Projects
India
Angul Steel Plant
India
Ramanujam IT City
India
Façade Work for Block D
India
Chenani to Nashri Tunnel
(handed back to client)
India
Wave II – 50:50 JV with Infra 13
Gold LEED
Mongolia
Windfarm
Wind energy
Hong Kong
Hong Kong Observation Wheel - Foundation Works
Hong Kong
Process Electrical Works – Sludge
Malaysia
Asian Rare Earths
Malaysia
Tanjung Bin Unit 4 Cooling Water Intake, Pump Station
and Offshore Discharge Culvert
Indonesia
Supreme Rajabasa
Indonesia
Coca Cola Semarang
Offshore
Balongan
Offshore
Qatargas 2
Philippines
Masbate Gold Mining Project
Philippines
City of Dreams, Manila
LEIGHTON ASIA
Gold LEED
6
Waste-to-energy
Geothermal energy
PROJECTS DELIVERED
Leighton Asia in figures
Class 1
ZERO
Fatalities
17
Projects
delivered
Level 1
ZERO
Environmental
Incidents
14
Projects
awarded
7
16,461
Employees
$
6.1 US Billion
Value of
work-in-hand
US
6.5%
Increase on previous
years’ revenue
81
Projects
on-going
1,600,000,000
Combined total value of projects awarded in 2014
LEIGHTON ASIA IN FIGURES
Leighton Asia revenue share
Revenue share by business
unit
Revenue share by
sector
Revenue share by
geographical region
5%
11%
11%
75%
59%
5%
14%
95%
8%
17%
Infrastructure (Civil & construction)
Hong Kong and Macau
Asia
Mining
Indonesia Asia Mining
Middle East
O
ffshore (Oil & Gas)
Southeast Asia Construction
Leighton Offshore
L eighton India
12000
12,000
10000
9,000
8000
Year-on-year
financial
performance
88
6000
6,000
Value of work-in-hand (USD millions)
Total Revenue (USD millions)
4000
3,000
2000
0
0
2012
2013
2014
2012
Performance Indicators
Ecomomic performace
12,000
Total Revenue
Value of work in hand as of Dec 31st 2014
9,000
Combined total value of contracts awarded in 2014
Total Employee wages & benefits LAIO FY Dec14 total staff costs
6,000
Payments to government (tax) LAI FY Dec14 Tax paid net of refund
0
1000 2000 3000 4000 5000 6000 7000
Millions USD
3,000
0
201
LEIGHTON ASIA
LEIGHTON ASIA IN FIGURES
Safety performance
Safety Lag and Lead Indicators 2014-16
Table 1
Lag Indicators
Actual 2014
Target 2014
Target 2015
Target 2016
Total fatalities
0
0
0
0
Lost time injury frequency rate
1.17
1.20
1.15
1.10
Total recordable injury frequency rate
2.98
3.8
3.6
3.4
Average lost time rate
74.38
45
40
40
Severity rate
87.31
57.5
57
57
Class 1 damage frequency rate
0.03
0
0
0
Actual 2014
Target 2014
Target 2015
Target 2016
Significant near miss incident frequency rate (SNMIFR)*
0.74
≥ 2.0
≥ 2.0
≥ 2.0
% Close out of incident alerts
96%
100%
100%
100%
% Strive for LIFE walks conducted to schedule
107%
100%
100%
100%
% of Level 1 & 2 Audits Conducted to Schedule
99%
100%
100%
100%
% of PD / PM, supt, supervisors / foreman
completed the Strive for LIFE Leadership Course
83%
80%
80%
80%
% HSE toolbox talks conducted to schedule
112%
100%
100%
100%
Table 2
Lead Indicators
Note: All calculations, methodologies and definitions are explained in the Appendix on pages 65 – 67
*SNMIFR target is greater than 2 because Leighton Asia encourages projects to report all ‘signigicant near misses’ as a precautionary approach to managing safety
risks so as to embed a positive reporting culture throughout the business.
9
Summary of Key Lag Indicators (12 months to date: January to December 2014)
Table 3
ALTR: 74.38 (45)
64
53.39
53.95
59.22
TRIFR: 2.98 (3.8)
63.22
61.78
63.35
LTIFR: 1.17 (1.20)
64.39
66.02
PC1FR: 0.57 (1.2)
68.23
73.43
73.55
74.38
32
16
8
4
2
1
0.5
9
8
9
7
6
4.05
4
3.83
1.70
1.73
1.64
1.02
0.96
0.91
Jan
Feb
Mar
3.65
3
3.68
3.65
3.53
3.44
3.41
3.22
3.07
2.98
1.54
1.61
1.58
1.54
1.50
1.42
1.29
1.24
1.17
0.84
0.78
0.71
0.65
0.56
0.60
0.57
0.57
Apr
May
0.71
Jun
Number of Potential PD Class 1 Incident
Lost time injury frequency rate (12MTD)
Total Recordable Injury Frequency Rate (12MTD)
SAFETY PERFORMANCE
7
4
3
4.05
11
9
Jul
Aug
Sept
Number of Class 1 Incident
Average Lost Time Rate (12MTD)
Potential Class 1 Frequency Rate
Oct
Nov
Dec
Environmental performance
Environmental Lead and Lag Indicators 2014-15
Table 4
Environment Lead Indicators
Actual 2014
target 2014
Target 2015
% of Environment management system compliance
audits conducted to schedule
96%
100%
100%
% Environmental toolbox talks
100%
100%
100%
% of projects implementing environmental management
plans
95.3%
100%
100%
% projects implementing waste reduction measures
88.1%
100%
100%
% of projects implementing energy efficiency measures
93.3%
100%
100%
Note: All calculations, reporting boundaries, methodologies and definitions are explained in the Appendix on pages 67-69
Table 5
Environment Lag indicators
Actual 2014
Target 2014
Target 2015
Level 1 incidents
0
0
0
Level 2 Incidents
1
≤3
≤3
Environmental incident frequency rate
0
≤0.03
≤0.03
Breaches
0
0
0
Valid public complaints
8
≤6
≤6
Energy Use & Emisisons
2014
2013
2012
Direct energy intensity
0.06
0.11
0.14
1
Indirect energy intensity
0.44
0.61
0.52
Electricity (kWh)
52,756,158
59,613,413
38,039,765
Diesel (litres)
180,435,782
271,182,211
266,818,395
Petrol (litres)
636,551
1,205,200
625,076
LPG (litres)
297,364
295,785
750,256
Total GHG emissions (tC20e)
529,769
777,677
738, 772
Scope 1 (direct emissions - tC02e)
487,971
730,710
707,228
Scope 2 (indirect emissions - tC02e)
41,798
46,957
31,554
Waste performance
2014
2013
2012
Solid waste intensity (kg/manhours)2
1.22
1.15
1.0
Total solid waste generated (C&D + inert, tonnes)
843,675
162,196
68,484
Total solid waste diverted (tonnes)
435,867
53,525
19,192
Total waste incinerated (tonnes)
15,087
6,593
8,672
Total liquid waste (cubic metres)
47,849
49,939
18598
Total Construction and Demolition (C&D) waste
145,374
-
-
C&D waste to landfill (tonnes)
51,850
-
-
C&D waste diverted or recycled (tonnes)
78,437
-
-
C&D waste incinerated (tonnes)
15,087
-
8,672
Total inert waste
698,301
162,196
68,484
Inert waste diverted / reused (tonnes)
357,430
-
-
Inert waste to public fill/land reclamation (tonnes)
340,871
-
-
Man-hours worked
118,696,101
97,523,806
71356450
10
Note:
1. Significantly improved energy intensity is a result of two major mining operations being handed back to the client and scaled back production on one of our largest mines.
2. New reporting methodology for waste introduced in July 2014 required projects to capture and report data relating to non-inert and inert waste separately, resulting in an
upwardly skewed total waste generation and waste intensity figure. These figures were not reported in 2012 and 2013.
LEIGHTON ASIA
ENVIRONMENTAL PERFORMANCE
Millions of litres
Energy performance
Total Scope 1 emissions and energy intensity
Scope 1 emissions by business activity
1%
Tonnes of C02e
kWh/manhours
800,000
0.14
600,000
400,000
10000
20,513,801
8000
43%
6000
0.08
200,000
126,186,28
50%
0.06
17,601,257
10,671,488
4000
0.04
2000
0.02
0
Corporate Offices
0
Indonesia Asia Mining
Leighton India Offshore
-00
2012
8,748,602
0.12
0.10
7%
12000
0.16
2013
2014
Build
Total Scope 1 emissions (tonnes of C02e)
Civil (includes offshore)
Carbon intensity (Indirect energy use - kWh/manhours)
Mining
Scope 1 emissions by energy source (tC02 equivalent)
Total Scope 2 emissions and energy intensity
GJ/manhours
Tonnes of C02e
50,000
Tonnes
140,000,000
0.7
0.6
LPG
40,000
120,000,000
0.5
100,000,000
11
Petrol
30,000
80,000,000
60,000,000
0.4
Diesel
0.3
20,000
40,000,000
20,000,000
0
LPG
0.2
HK&M
0
Southeast Asia
Construction
Indonesia Asia
Mining
Leighton India
90,521
198,283
17
Offshore
10,000
8,543
0
Petrol
63,125
250,225
239,561
4,622
79,018
Diesel
7,426,970
17,601,257
126,186,289
20,513,801
8,707,465
0.1
0.00
2012
Carbon intensity (Indirect energy use - kWh/manhours)
C&D waste footprint and intensity
Tonnes
124
276
87
2014
Total Scope 2 emissions (tonnes of C02e)
Scope 3 emissions (tonnes of C02 equivalent)
2013
Waste intensity
160,000
1.60
140,000
1.40
120,000
1.20
100,000
1.00
80,000
0.80
60,000
0.60
40,000
0.40
20,000
0.20
0.00
0
2012
2013
Total to landfill
2014
Total recycled
Waste intensity (kg/manhours)
Concrete
ENERGY PERFORMANCE
Rebar
Structural Steel
The above chart represents non-inert (C&D) waste only.
Please refer to page 10 for total inert waste generated,
diverted and sent to public fill.
Diversity & employment
Promoting local employment
Leighton Asia employees by gender
(total workforce)
6958
3000
2500
4483
2000
1500
2678
1000
800
74 55
LAIO
Corp
500
739
306
141 149 23
55
HK & Indonesia SEA
Offshore
Macau
& Asia Const’n
Mining
0
LAIO
Corp
India
HK & Indonesia SEA
Offshore
Macau & Asia Const’n
Mining
Local
Male
Female
Millions of litres
India
Expat
Note: No Leighton Asia employees were covered by collective bargaining agreements
as at December 31 2014
Note: Employees figures relate to total employees as at December 31 2014
Expatriate vs local employment ratio
Workforce profile
8000
4.0
3.5
Total Revenue
Total Revenue
3.0
2.5
2.0
mployee wages & benefits LAIO FY Dec14 total staff costs
1.5
6000
Target 3.5%
12
4000 & benefits LAIO FY Dec14 total staff costs
Total Employee wages
Expat % in headcount
Payments to government (tax) LAI FY Dec14 Taz paid net of refund
to government (tax)
1.0LAI FY Dec14 Taz paid net of refund
0.5
0
1000 2000 3000 4000 5000 2000
6000 7000
0
0
1000 2000 3000 4000 5000 6000
Millions USD
Millions USD
2011
2012
2013
2014
The ratio of expatriate to local senior management
(Level 5) is 40:37, or as a fraction in percentage:
52% expatriate managers to 48% locally employed
managers.
0
LAIO
Corp
HK & Indonesia SEA
Offshore
Macau
& Asia Constr’n
Mining
Total Workforce
Paid monthly
India
Paid daily
Wage equity: gender - employee average wage ratio
Developing skills and competencies
400,000
350,000
300,000
Total Revenue
250,000
200,000
150,000
Total Employee wages & benefits LAIO FY Dec14 total staff costs
Male
100,000
Female
Payments to government (tax) LAI FY Dec14 Taz paid net of refund
50,000
1.01:1 0.94:1
0
0
LAIO
Corporate
HK&M
Indonesia
Asia
Mining
Southeast
Asia
Construction
Offshore
Total Training Hours - Corporate
Total
Training Hours - Project
India
Tonnes 4000 5000 6000
1000 2000 3000
160,000
Millions
USD
140,000
120,000
Earnings ratios do not include Level 6 (Executive
100,000
General Management) or expatriate earnings; they are
80,000
representative of local employee wages only.
60,000
LPG
40,000
20,000
0
LEIGHTON ASIA
Petrol
Total to landfill
EMPLOYEE DIVERSITY
Diesel
201
2012
Waste intens
Corporate governance
Leighton Asia is not a legal entity in itself; rather, it represents three operating companies
Leighton Asia Limited (LAL), Leighton Offshore (100% ownership) and Leighton India Limited as
a single consolidated Operating Company that is wholly-owned by the publicly listed Leighton
Holdings Limited (LHL).
The financial and non-financial performance of these three companies is consolidated at the Leighton Asia
level for reporting to Leighton Holdings.
In 2014 the Leighton Group undertook a Strategic Review that saw it streamline its operations into four
areas: Construction; Mining; Public Private Partnerships (PPPs); and Engineering. Under the new structure,
Leighton Asia now focuses on construction and civil engineering; all mining operations have been handed
over to Thiess. As of January 2015, Leighton Asia ceased capturing environmental and safety data relating
to Leighton Asia-branded mining projects. The result, going forward, will be a signficant decrease in our
reported waste and direct emissions.
Leighton Asia comprises five business units
Operating company
13
Business Unit
Country
Leighton Asia Limited
Hong Kong & Macau
Hong Kong and Macau
Malaysia, Singapore, Philippines,
Thailand, Indo-China
Indonesia & Asia Mining
Indonesia and Mongolia
Leighton Offshore
Leighton Offshore (LFM,
Leighton Engineering)
Iraq and UAE
Leighton India Ltd
Leighton India
India
Leighton Asia’s senior management and employees are governed by a framework of policies endorsed by
Leighton Holdings’ Chairman and Chief Executive Officer Marcelino Fernández Verdes, and by Leighton
Asia’s Managing Director, Manuel Álvarez Muñoz.
These policies establish clear expectations of employee behavior regarding Health and Safety,
Environment, Communications, Code of Business Conduct, Supply Chains and Procurement, Diversity
and Equal Opportunity, ICT and Competition.
Corporate structure 2014
—CONSTRUCTION
LEIGHTON HOLDINGS
—MINING
—PPPs
FLEETCO
—AUSTRALIA
CORPORATE GOVERNANCE
—INTERNATIONAL
—AUSTRALIA
—INTERNATIONAL
—ENGINEERING
Executive Leadership
Changes
Board and Advisory Board
Changes
2014 saw significant changes to our our
Executive Leadership Team:
During 2014, management changes at
Leighton Holdings resulted in alterations to
the Board of Directors.
• Manuel Álvarez Muñoz replaced Ian Edwards as
Managing Director of Leighton Asia, India and
Offshore
• Cris Dedigama appointed Executive General
Manager, Iraq.
• Brian Gillon, former General Manager of Hong
Kong & Macau, resigned. Managing Director
Manuel Álvarez Muñoz now leads the Hong
Kong & Macau Business
• Jim Salmon Executive General Manager, India,
was replaced by Jeremy Truebridge, Country
Manager, India
• Justin Collings, President Director, Indonesia Asia
Mining, resigned
On July 10 2014, Leighton announced changes to
its Board Committees and Operating Company
Advisory Boards, namely:
• E stablishing the Board Audit and Risk
Committee by combining the Audit Committee
and the Tender Review and Risk Committee;
• E stablishing a Tender Review Management
Committee, for the examination of tenders by
management;
•C
hanging the composition of standing Board
Committees; and
•D
isbanding the Operating Company Advisory
Boards, including that of Leighton Asia.
• Boyd Merrett appointed GM Hong Kong
14
2014 saw a realignment of the Leighton Group
businesses, enabling Leighton Asia to further
enhance its competitive advantage in construction
and infrastructure.
At the end of 2014, in order to focus specifically
on construction and infrastructure, Leighton Asia
transitioned its mining operations to Thiess.
Leadership 2014
Functional Support
Hong Kong
Macau
South East Asia Construction
Leighton Offshore
Leighton India
Chief Financial Officer
— Peter Pollard
Executive General Manager
People
— Leigh Stewart
Risk & Governance
— David Palser
Managing Director
Manuel Alvarez Muñoz
General Manager
— Boyd Merrett
LEIGHTON ASIA
General Manager
— Mike Clarke
– Philippines
– Singapore
– Malaysia
– Indonesia
— Tony Harvey
— Cris Dedigama
General Manager
— Jeremy Truebridge
CORPORATE GOVERNANCE
Roadmap to sustainability: SMART
Our brand
is not just a logo.
Our brand is our people.
Which is why Leighton
Asia’s sustainablity strategy
begins and ends with our
employees.
15
2013
AWARENESS
2014
DELIVERY
2015
IMPROVEMENT
2016
SMART
ROADMAP TO SUSTAINABILITY
Working SMART is central to Leighton Asia’s sustainability
strategy. Put simply, we are committing to Sustainably
Managing All Resources for Tomorrow – the emphasis
being on ‘all’.
Our SMART waste and energy efficiency programme aims
to introduce a standardised approach to energy and waste
management. Initially it is being rolled out on selected projects
in Hong Kong, with the ultimate objective of improving resource
efficiency on all new projects going forward.
We operate in high impact sectors - construction, mining and
offshore oil & gas infrastructure.
To minimise the impact of our operations, the SMART
sustainability strategy encourages our teams, where possible,
to take a life-cycle approach to resource efficiency. This means
reducing waste through smarter design and procurement;
reducing fuel burn through smarter asset management;
improving energy efficiency in our workplaces through design and
awareness; retaining our valuable human capital by educating,
training and providing our employees with clear career progression
paths; and above all, protecting our people by ensuring that our
workplaces are safe and secure.
By doing so, we will secure the resources, manpower and client
demand upon which our business success relies, for years to
come.
Because reputation is built not just on project delivery; it is built on
how we deliver our projects.
In other words, on time and to budget... Without any fatalities or
Class 1 safety incidents... With minimal environmental impact and
reduced waste... By a conscientious team with a ‘can do’ attitude,
that is committed to leaving a positive legacy in the communities in
which we operate.
Roadmap to sustainability: resource efficient
Human capital
Resource efficiency
Our people are the bedrock of our success. We operate in high
risk sectors, which makes safety our first priority. Which is why
we are passionately committed to ensuring that our people
return home safe, every day.
In 2013 we set a target for all of our projects to implement
rigorous waste management and energy efficiency strategies.
In 2014, we began launching a two-tiered programme on
several major projects in Hong Kong, targeting office efficiency
and project site efficiency. These programmes are being piloted
in Hong Kong with the objective of delivering tangible benefits
to our clients and to our margin. We aim to begin reporting on
the financial benefit of our sustainability strategy from 2016
onward.
We introduce world-class safety practices and standards
wherever we operate and our management is committed to
the philosophy that productivity and safety must go hand-inhand.
Our safety training facilities and programmes ensure that our
teams are equipped to perform their respective tasks safely
and effectively, while our bespoke safety incident management
system (SIMS), enables us to manage and reduce safety risks
across our business.
Employing locally
We are fully committed to upskilling local communities. Back
in 2011 we set ourselves a target of not employing more than
3.5% expatriates within our workforce. Since its inception
we have consistently outperformed this target.In 2014,
expatriates accounted for 1.8% of our workforce.
Committed to business integrity
Several markets in which we operate are classified ‘high risk’
on Transparency International’s Corruption Index. To support
our employees in making the right decisions and to act with
integrity, we have developed and embedded our Code of
Business Conduct, supported by policies, standards and
on-going training in the form of e-learining modules and
workshops.
In 2014 we also carried out an exhaustive risk analysis in order
to develop a country risk register across our region. A series
of high-level workshops were held to introduce and roll out
our new Country Risk Rating System. The Country Risk Rating
System is designed to inform the business planning process;
identify all moderate and high-risk areas for subsequent work
on review of existing mitigations and proposed additional
controls; and to enable on-going reviews of community,
political and client/credit risks.
LEIGHTON ASIA
Environmental stewardship
We are continually improving our business-wide Environmental
Management and Reporting System, which meets ISO14001:
2004 Environmental Management System standards.
Our environmental incidents and alerts management system
enables us to identify and resolve environmental externalities
arising from our operations, such as those relating to noise, air,
water and light pollution.
By ensuring we deploy the latest technologies and
methodologies to minimise our environmental impacts we
maintain our reputation for being a trustworthy contractor in
Asia.
Respect for communities
A methodical, standardised approach to stakeholder
engagement ensures that all Corporate Community
Investment initiatives undertaken by Leighton Asia at both
project and corporate level, are legal, ethical, fully address
stakeholder expectations, and are aligned to our core business
activities.
In 2014 we approved and published a standard and
procedure to ensure that our projects and corporate head
offices undertake regular stakeholder engagement. The
Corporate Community Investment Standard and Procedure
provide a clear framework to guarantee that our approach to
stakeholder engagement is standardised across the business.
This will be rolled out and embedded throughout Leighton
Asia during 2015.
ROADMAP TO SUSTAINABILITY
16
Stakeholders,
Materiality & Risk
Our material impacts...
Factors material to our
business sustainability...
Our stakeholders...
And your expectations
of us
OUR IMPACTS
Human capital Impact Environmental Impact Social Impact Business Impact Economic Impact
Safety
Skills/
career
Air
quality
Waste/
resource
management
Up-skilling
communities
Quality
of life
Labour
availability
Tax impact
(corporate,
profit, carbon
income)
livelihoods
Investment
Wages
Job
security
Noise
Water
Education
Empowerment
Industrial
relations
Regulatory
certainty
Supply
chain
Positive
legacy
OUR STAKEHOLDERS
17
Parent company
Employees
Clients
Business Partners
Subcontractors & Suppliers
Communities
Regulator
YOUR EXPECTATIONS
Human Capital
Impact
Environmental
Impact
Social
Impact
Business
Impact
Leadership
and Governance
• Provide a safe
workplace
• Reduce environmental
incidents and provide
effective remediation
• Provide employment
opportunities
• Successful project
delivery to programme
and budget
• Demonstrate strong
business ethics and
competitive behaviour
• Maintain good
industrial relations
• P rovide a clear
explanation of our
expectations via
policies and standards
• E nsure robust safety
incident reporting and
investigation
• P rovide training and
career development
•R
ecruitment and
retention
•R
espect diversity and
equal opportunity
• Maintain ambient
environment quality
(i.e. noise, air, water)
• Electricity use
management
• Fuel use management
• Reduce waste streams,
close the loop
• GHG emissions
reduction
• Minimise biodiversity
impact
• Adapt to and address
climate change
MATERIALITY AND RISK
•M
aintain quality of
common goods
• P rovide transparent
communications
and engagement
opportunities
•C
orporate Community
Investment
•A
dapt to and address
climate change
• Labour availability
• Manage subcontractor
liabilities
• Product societal value
(legacy of quality
infrastructure)
•C
ommercial
competitiveness
• Regulatory certainty
• Payment of taxes
•A
ppropriate level
of executive
compensation
• E stablish supply chain
standards and clear
selection criteria
• E ngage with supply
chain to ensure
Leighton standards are
maintained
22
14
15
6
12
11
21
17
20
18
19
Clients were engaged via regular one-on-one
meetings.
Low importance
Governments and regulators were engaged
through our active participation in advisory
groups, consultations and workshops.
Local communities were engaged through
direct communications, townhalls, baisuns,
breakthrough ceremonies and CSR initiatives.
High importance to stakeholders
High influence on business success
Low influence
Moderate importance to stakeholders
High influence on business success
Maintain high safety standards across
business, incur zero fatalities
17
Diversity and equal opportunity
2
Successful project delivery to programme,
on budget
18
Provision of policies and standards
Business integrity and competitive
behaviour
19
Supply chain standards and selection
3
20
Supply chain engagement and
transparency
Availability of skilled labour
5
Subcontractor liabilities
6
Environmental management
8
Recruitment and retention
9
Availability of resources
10
Regulatory certainty
11
Employee health and safety
12
Communications and engagement
13
Executive compensation
14
Industrial relations
15
Product societal value
16
Waste management / resource efficiency
LEIGHTON ASIA
High influence
Influence on business success
1
4
Importance to stakeholders
Suppliers and subcontractors identified as having
a material impact on our resource efficiency
performance were directly engaged through kickoff workshops, toolbox talks on environmental
performance criteria and questionnaires.
2
7
16
23
5 4
10
25
24
3
8
13
In 2014, Leighton Asia engaged its stakeholders in
the following manner:
1
9
High importance
Leighton Asia
materiality matrix
18
High importance to stakeholders
Low-moderate influence on business success
21
Corporate Community Investment
22
Energy use and management
23
GHG emissions reduction
24
Biodiversity impact
25
Employment opportunities
MATERIALITY AND RISK
Our stakeholders
Stakeholder
Expectations for 2014
How Leighton Asia addressed
stakeholder expectations
Parent companies:
Leighton Holdings
Hochtief ACS
• E nsure the corporate overhead is ‘rightsized’ to support our projects
• E nsure all expenditure directly supports
core business operations
•D
eliver all projects to programme, on
budget
•R
ecover and prevent all unauthorised
revenue
• CEO focus group sessions
• Monthly and quarterly upward reporting
• Strategic review and alignment of
operations – Parent company engagement
though reports, VCs and focus groups
Regulator
•R
emain compliant with local regulations
•G
enerate and promptly file tax revenues
• P rovide transparency and integrity in all
business transactions
• Regulatory compliance reports
• Maintained ISO14001: 2004 Environmental
Management System certification across
projects
• Compliance with client EIA recommendations
• Compliance with Leighton’s environmental
standard
• Environmental Management System to
identify and mitigate impacts
•Internal training to promote awareness
on emissions reduction via energy and fuel
efficiency, waste reduction, biodiversity
protection, deforestation, sediment and
erosion control
19
Government
STAKEHOLDER ENGAGEMENT
perate in a manner both
•O
environmentally and socially responsible
•D
emonstrate commitment to corporate
governance
• F acilitate knowledge transfer by
introducing international industry best
practice
• F acilitate technology transfer through
strategic partnerships
•B
usiness performance in accordance with
international standards
• Participation in local business advisory
panels, industry and sustainable
development committees to address local
issues (C&D waste management, carbon
legislation and climate change adaptation)
• Collaboration and support to address
local issues (i.e. Corporate Community
Investment, education and up-skilling of
local communities)
• Adoption of new technologies and business
partnerships that facilitate knowledge
transfer
Stakeholder
Expectations for 2014
How Leighton Asia addressed
stakeholder expectations
Employees
• Competitive remuneration
• Job security
• Safe working environment
• Career and professional development
• Performance recognition
• Support to carry out duties in accordance
with LAIO Code of Business Conduct
• Maintained OHSAS 18001 Saftey
Management System certification
• Bi-annual performance development reviews
• Management development
• Market benchmarking of salary data
• Vocational/technical skill development
• Safety training and workshops
• Recognition awards
• Recruitment drives
• Further education opportunities (Leighton
Masters, scholarship and training schemes)
• Regular internal corporate communications
(online corporate magazine, intranet)
Clients
• Deliver our projects on time, within
budget
• Deliver high-quality projects at
competitive rates
• Deploy industry best practice
• Remain compliant with local legislation
• Comply with internal, national and
international standards on safety and
environmental performance
• Maintained quality standards in compliance
with ISO 9001: 2008 Quality Management
System standard
• Regular client interfacing
• Regular reporting (in accordance with client
needs)
Business partners,
sub-contractors and
suppliers
• Meet JV expectations
• Adopt international industry best-practice
• Provide clear procurement guidelines
• Fair payment terms
• Provide a safe working environment
• Safety training
• Supplier engagement via development of
procurement rating system
• Supplier engagement via waste
management programme
Community
• Ensure the quality of common goods is
preserved (soil quality, air quality, water
quality)
• Support for local communities by
providing employment opportunities
• Support local supply chains
• Address concerns and expectations
via community engagement and
corresponding initiatives
• Direct stakeholder engagement (to the
extent permitted by client relationship)
• Complaints hotline (project specific)
• Community liaison officers
• Strategic Corporate Community Investment
initiatives
• Up-skilling local communities from ground
up
• Maintaining most favourable expat-local
employment ratio for community
LEIGHTON ASIA
STAKEHOLDER ENGAGEMENT
20
We will
• Work
efficiently
• Respond to our markets
• Optimise profits
• Deliver on time
• Maximise local expertise
BE COMMERCIALLY
COMPETITIVE
Aligned to our commercial
focus on strategic money
management, our sustainability
strategy focuses on resource
efficiency.
21
This encompasses construction materials
such as steel, timber and concrete; fuel and
electricity use; and supplier engagement to
reduce the volume of packaging waste that
crosses our project site boundaries.
In 2014, reinforcing steel (rebar) and concrete
accounted for 43% and 37% of our materials
procurement, respectively. Of this, rebar is 100%
recycled. Structural steel and timber accounted
for 15% and 5%. Through a series of waste
management workshops on our projects in Hong
Kong, we have identified measures to improve the
efficient use of these resources.
Among the measures identified are financial
incentives for subcontractors to reduce wastage of
rebar, cabling and pipes; reusing inert waste and
secondary aggregate as backfill on our projects; and
redeployment of concrete waste to build temporary
road structures, hard stands and precast concrete
PERFORMANCE
road barriers, among other things.
Our teams have focused on prefabrication
where possible, and deploy metal formwork to
reduce timber use. In 2015, our SMART waste
management programme will establish waste
baselines on our projects (based on a ‘do nothing’
scenario), against which we will set hard targets and
KPIs in order to measure our progress.
We have also heightened our focus on quality
control, with the objective of improving
procurement calculations and reducing waste
through careful monitoring and inspection.
Given the diverse nature of our projects across the
sectors in which we operate, rather than setting
a group target for waste reduction and recycling,
we have opted to set waste reduction and energy
efficiency targets on a project-by-project basis. In
2014 our key performance indicators on waste
management and energy efficiency were based on
the number of projects that had implemented the
energy and waste plans.
As of December 31 2014, no fewer than 88% of
our projects had implemented waste management
plans, while 93% had implemented energy
efficiency plans (refer to p10).
Business
sustainability
through
commercial
accountability
Maintaining our commercially
competitive edge is an imperative in
Asia’s aggressive infrastructure markets.
Matthew Voon, Commercial Manager
for our Hong Kong business, explains
how we successfully defend our position
as a sought after contractor in Asia.
Matthew Voon, Senior Commercial Manager, Hong Kong
22
Pivotal to our commercial success is our project
and operations managers’ full accountability for
the delivery of our projects, inclusive of financial
performance. Our project leaders’ success – and
that of their teams - is measured against hard
targets and key performance indicators.
While Leighton Asia empowers our project leaders
to work independently, each remains aligned to our
results-orientated approach. Through leadership
and teamwork there is a strong focus on budget
accountability to manage and control project costs.
This approach provides our project leaders with a
commercially competitive platform from which to
deliver our projects. This same philosophy translates
into value generation for our clients.
Underpinning our focus on commercial sustainability
is a framework of robust management procedures
and controls that allow us to identify contract
variations and changes in a timely manner. Our
objective is to agree, where practicable, the time and
cost impact of change with the client, before the
work starts. Such measures protect our projects’ cash
flow and remove constraints to delivery. Our renewed focus on reducing work under-claims
prevents our projects from committing to costs that
have not been approved by the client. This reduces
the incidence of unapproved revenue, protects our
balance sheet and helps us deliver to our clients’
expectations. By keeping them informed on forecast
out-turn costs, we limit the propensity for budget
‘surprises’.
This philosophy is clearly aligned to the expectations
of our shareholders and stakeholders. It also has a
positive impact on client relations and reinforces our
reputation for being a reliable contractor.
As our projects in Hong Kong continue to grow in
size, scale and complexity, our focus on commercial
awareness is now greater than ever before. Our
people continue to play a key role in the company’s
commercial sustainability through leadership,
teamwork, managing costs and minimising work
under-claims.
Contract 904 South Island Line (East) - Hong Kong
LEIGHTON ASIA, INDIA & OFFSHORE
PERFORMANCE
Building a sustainable supply chain
As a major contractor in the construction,
infrastructure and mining sectors, supply chain
of our suppliers and sub-contractors are pivotal
to our success. If we accept sub-standard goods
and services, we ultimately bear the financial and
reputational cost of rework and project delays.
Similarly, if downstream labour practices are
inappropriate, we risk a breach of our internal
standards on labour practices and potential project
delays arising from labour disputes.
To minimise such risks, in Hong Kong, for example,
we subject all our new and inactive suppliers and
sub-contractors to a rigorous pre-qualification
process. Upon selection, we continue to regularly
monitor the performance of our supply chain with
formal assessments twice per year. This ensures
that our suppliers consistently meet our standards
of quality, ethics, compliance and environmental
performance.
23
Our suppliers are assessed across key performance
areas, including: safety; production; quality;
environmental protection and commercial aspects.
They are banded according to their aggregate score
providing our projects with an up-to-date indicator
of performance.
Supply chain engagement
Given that on average, 34% of construction site
waste is generated from packaging, we have
taken the initiative to encourage our suppliers to
reduce the amount of packaging they use. In 2014
we began engaging our suppliers on packaging
waste, asking them to either find alternatives to
plastic packaging materials, or to switch from using
disposable to reusable packaging. The result has so
far been positive on the projects that have engaged
their supply chains.
To support this initiative, we adjusted our
subcontractor and supplier agreements for projects
implementing the SMART programme in Hong
Kong and Macau to include criteria on reducing
packaging. We also developed a sub-contractor and
supplier guide to packaging.
The purpose of our packaging guide is to explain
why we are asking them to reduce packaging; to
demonstrate the business and environmental case
for doing so; to clearly establish our expectations of
what types of packaging are considered acceptable
and unacceptable; and to explain how we will
support them in collecting their reusable packaging.
During kick-off meetings with sub-contractors
identified as having a material impact on our waste
streams, we clearly set out our expectations on
waste reduction and explain to our sub-contractors
and suppliers the mutual benefits of improved
resource efficiency.
SUPPLY CHAIN ENGAGEMENT
Saving time and costs
by working smarter
As with any well-orchestrated project,
the SIL 903 project team left nothing to
chance. Every detail, from community
engagement through to breakthrough
technologies and methodologies
deployed, was meticulously planned.
‘Winner of MTR Corporation’s Chairman’s Award’ neatly
sums up the level of success enjoyed by our Hong Kong
South Island Line 903 project. Despite the extremely
challenging environment and high-risk nature of the job, the
team managed to hit the original programme targets while
achieving cost savings for the client.
By Paul Freeman,
Operations Manager
New methodologies
Taming the tide
Inspired engineering
South Island Line (East) Contract 903
Value engineering was key to winning
MTR Corporation’s South Island Line
contract 903. Not only did it deliver
notable time and cost savings, it
significantly de-risked the project from
the client’s perspective.
The original design called for onehundred and twenty-six 1.5 metre
diameter bored piles to support
each of the three sections of railway
viaduct. Because the job demanded
that we enter a tight area with a lot of
equipment and utilities, we redesigned
the project to use bigger, fewer piles
– 79, in total, with 2.0 -2.8 metre
diameters.
Many major utilities run alongside a
stretch of the viaduct. Taking this into
consideration our redesign resulted in
a far safer, less disruptive, cheaper and
more time-efficient outcome.
LEIGHTON ASIA
A major portion of the viaduct traces
the path of a nullah, or stormwater
drain. While tidal water flows up the
nullah, rainwater from the surrounding
catchment area also flows down in
the opposite direction, creating a flood
zone in the middle. Compounding the
situation was Hong Kong’s high rainfall
incidence during six months of the year.
Originally this precluded work taking
place during the months April through
to October. A special formwork/
falsework system spanning across the
width of the nullah was devised to
enable the construction of the nullah
deck year round. Apart from that,
the team devised a “stop log” system,
which provided an access road and tidal
water barrier in one, to enable the works
inside the nullah to be carried out in a
reasonably dry working environment.
During intensive rainfall, the stop log
would be raised, allowing a throughflow
of water to prevent flash flooding.
When it eased off, the stop log would
be dropped and the water pumped out
to allow works to continue.
Our team ran a 24-7 surveillance of
the stop logs in order to manage the
nullah through storms and typhoons.
As a result, the nullah modification
and viaduct works were completed
satisfactorily without causing any
flooding incident to the public.
The railway viaduct traverses 12 major
traffic arteries. To minimise traffic
disruption and avoid fatal incidents,
the project team was instructed to
only operate at night, within a six-hour
window – inclusive of blocking the
road, to re-opening the road to morning
traffic.
This extremely tight window precluded
deployment of mobile cranes, which
were too slow and expensive; while the
space constraint precluded the use of
launching girders.
Instead the team called on Hochtief–
owned US bridge building company
Flat Iron to deploy its Beam and Winch
system. The system allowed work
preparation to begin immediately and
ensured all traffic lanes leading into
Aberdeen tunnel re-opened on time
in the early hours of the morning. The
method proved to be far more timeefficient and was far lower risk in terms
of traffic impediments due to work-time
overrun.
Leighton was the first to introduce and
successfully deploy the Beam and Winch
system in Hong Kong as an alternative
to the comparatively slower and more
costly method of crane erection and
launching girders where the viaduct
crossed the roads.
By constantly identifying opportunities
to re-engineer the project, the Contract
903 team successfully eliminated
unnecessary risk, sped progress, and
ultimately delivered excellent results.
INNOVATION
24
We will
ENCOURAGE
INNOVATION AND
TECHNOLOGICAL
LEADERSHIP
25
INNOVATION
• Challenge
the conventional
• Adapt to new technologies
• Invest for the future
• Share knowledge
• Learn from mistakes
In 2014 the Leighton Asia-LNS Joint
Venture put the finishing touches to a
major underground sewage drainage
system and in doing so, solved multiple
engineering challenges.
Hong Kong’s Harbour Area
Treatment Scheme, or HATS
Stage 2A, will capture
approximately 650,000 cubic
metres of sewage from eight
drop points running along Hong
Kong island, that plunge into
one of Hong Kong’s deepest
subsea tunnel networks. The
tunnel will transfer the sewage
beneath the harbour to a
treatment facility.
To avoid disruption to Hong Kong’s
heavily populated residential areas
while leaving adequate room for
future underground infrastructure,
the tunnel was designed to run at a
depth of 80m to 120m below land
surface. The depth, coupled with
noise enclosures that achieved a
40 decibel reduction, enabled the
JV team to drill, blast and grout 24
hours a day, with minimal disruption
to residents above.
To prevent ground settlement, our
team drilled horizontally to probe
the rock ahead of the tunnel face,
pre-grouting as they progressed. By
injecting grout ,the team reduced
water inflows of more than 1000
litres per minute down to levels as
low as 2.5 litres over a 100-metre
stretch of tunnel. This represents
a world-class achievement – it has
rarely been attempted or achieved
on other tunnel projects.
To advance the tunnel more quickly,
the team adopted cutting-edge
grouting techniques that addressed
the specific rock characteristics.
Our team also devised an automated
system to remove the excavated rock
spoil, almost doubling the removal
capacity to 100 tonnes per hour. In
the best rock conditions, the team
advanced the tunnel at a rate of
more than 50 metres per week. By
tunnel completion, the team had
excavated 180,000 cubic metres of
rock spoil along a distance of 7,467
metres.
The team opted to pump the
concrete to carry out the tunnel
lining job, setting a record distance
for Hong Kong at 2.3 kilometres –
among the top three distances for
concrete pumping in the world.
Buried deep beneath the ground, the
team’s accomplishments will literally
never see the light of day. Yet, by
helping to preserve the quality of
Hong Kong’s iconic Victoria Harbour,
the city’s residents will feel the result
of the Leighton – LNS JV team’s
commitment to excellence and
outstanding performance for years
to come.
Harbour Area Treatment Scheme - Stage 2A - Hong Kong
LEIGHTON ASIA
INNOVATION
26
Built to last: The value of strong
contractor-client relationships
Nothing says “We’re leaders at what we do” better than
repeat business. Here in Macau, Leighton is currently
undertaking its fifth major luxury building project in ten
years – the Wynn Palace. It is also our fourth consecutive
contract with the same client, Wynn Resorts.
By Mike Clarke – General Manager, Macau
Leighton’s successful partnership with Wynn Resorts demonstrates what can be
achieved by taking the time to understand your client. Our understanding of
Wynn’s vision; our deep respect for maintaining their design concepts; and the
consequent level of trust we have earned, have made us a formidable team.
Mike Clarke - General Manager, Macau
Giving the client confidence is key. Right from the outset of our current project, we
have remained focused on ‘not leaving success to chance’. We have concentrated
on doing things differently to ensure the project’s success; on the 5% that makes
a difference; and on meeting the client’s expectations. The project’s set-up was
approached very deliberately, with a defined start-up vision, project values, and a
well-developed implementation strategy.
Among other things, we took time to understand our client’s areas of focus, while
leveraging our previous success factors. We ensured subcontractors were aligned
with our objectives by establishing a contractors’ leadership group. We ran highly
visible quality and safety campaigns. And we ensured strong government relations
by providing a training scheme that fulfilled our promise of leaving an upskilled
workforce when the project is complete. Every detail mattered, right down to how
we presented ourselves to the client and public through our site offices.
27
At every opportunity, we have aimed to go further and be better. And that’s a
philosophy that gets you far in a town like Macau.
PERFORMANCE
Innovative approaches to
managing our waste
As Hong Kong’s waste export and disposal options
dwindle, the need for on-site sustainable solutions for
project waste is greater than ever. Consequently, our
projects constantly seek out innovative uses and costeffective methods for waste management.
A good example of this was demonstrated by our 903 South Island Line (East)
project, when marine sediment was removed from the Aberdeen channel during
the construction of the Aberdeen channel railway bridge between Wong Chuk
Hang Station and Lei Tung Station.
The fine-grained sediment that accumulates as a result of particles settling on the
ocean floor is high in heavy metals, leaving biodegrading on land or at sea out of
the question as it threatens to pollute the environment. Meanwhile, transporting
the sediment to the correct facility would have required costly barges and tugboats,
and would have generated considerable greenhouse gas emissions and roadside
pollution in the process.
Contract 903 South Island Line (East) - Hong Kong
Our SIL903 team collaborated with our client MTR Corporation to devise
an environmentally benign and cost effective use for the toxic marine sediment.
The marine sediment was to be stabilised and used as in-situ backfill, resulting in
significant transportation time and cost savings. The team perfected a cement,
granite and marine sediment mix designed to stabilise and solidify the marine
sediment for backfill use on land.
28
With no precedent in the Environmental Impact Assessment process and differing
from original recommendations, the project team and MTR Corporation worked
hard to gain approval from Hong Kong’s authorities.
The innovative approach taken by our SIL903 project team was recognised at MTR’s
Projects Innovation Conference 2014. We were awarded the Bronze Award in
November 2014.
Wynn Palace - Macau
LEIGHTON ASIA
PERFORMANCE
Work environments in
the construction, mining
and offshore oil and
gas sectors are difficult,
tough and high risk. They
are also often subject to
demanding schedules,
making productivity an
imperative.
So when it comes to safety, we seek to be
equal to those challenges and to promote the
synergy between safety, productivity and
business sustainability.
29
At Leighton Asia, we make everyone – from the
Designer and Engineer, through to the General
Manager - accountable when it comes to safety.
By approaching our work in terms of ‘safe
productivity’, we safeguard our people and our
business integrity. Our Simply Safe campaign,
launched at the end of 2013, seeks to embed this
thinking into our project teams.
In March 2014, we held our inaugural Safety
Summit, led by our senior management and
attended by our operations managers, project
directors, senior engineers and safety leaders.
The Safety Summit kicked off our renewed safety
campaign, the success of which is evident in 2014’s
excellent safety record.
Our objective is to reinforce our precautionary
approach to safety – our rigorous training, incident
reporting and Incident Cause Analysis Method
(ICAM) systems – with visible, accountable safety
leadership.
SAFETY
Safety
Class 1
Practices
(COPS)
How do you embed a safety culture
during a period of exponential growth
among Indonesian labourers from
a subsistence farming background?
Andrew Hall, our Health & Safety
leader for our Southeast Asia
operation, reveals his strategy.
By Andrew Hall, SHEQ Manager, Southeast Asia Construction
Leighton Indonesia has experienced
considerable growth in the past five years,
swelling from an average workforce of almost
3000 personnel in 2008, to over 8500 in 2014.
Because a significant portion of this workforce
originates from remote areas of the Indonesian
archipelago – the majority from subsistence
agricultural based economies - many are unfamiliar
with risks associated with heavy industry and the
safety rules and regulations that must be followed to
ensure their own and other’s safety on the job.
In an effort to convey Leighton Asia’s safety
expectations, a number of initiatives were launched
by the Indonesian business in support of our Strive
for L-I-F-E programme. These included the Rules
for L.I.F.E Comic book, an animated induction
movie and real life accident stories, all supported
by a comprehensive framework of standards and
procedures.
Despite our best efforts, following a review of
incidents and causes it transpired that few of our
operational staff were aware of our official standard
operating procedures – in reality there were simply
too many documents, full of too many words, that
had little impact on our people at the front line.
Leighton Essentials, John Holland Global Mandatory
Requirements & the Thiess Critical Safety Controls.
The review enabled us to take best practice from
across the entire business. We then engaged
an international publishing company to assist in
developing a series of new procedures termed ‘Class
One Practices’ or COPs. This user-friendly easy-toread format ensured that our minimum expectations
for managing Class One Risks were appropriately
communicated.
30
The COP’s were designed to easily illustrate our
safety expectations, in some cases, without even
having to read a word. During the development of
the Safety COPs series, we presented them to one
of Leighton Asia’s 5 Areas of Focus working groups.
The group was so impressed with the concept
that they decided to establish it as a Leighton Asia
benchmark, and are now rolling out the COPs to the
entire business.
True to our corporate values, we have demonstrated
that the ideas and concepts conceived within our
Business Units, no matter where they are in Asia,
deliver world-class safety standards that can be
adopted across the region.
To address this, in 2013- 2014 our Indonesian
safety team, with the support of the Executive
Management, embarked on our biggest Strive
for LIFE project yet. The initiative began with a
comprehensive review of Leighton Asia, India and
Offshore’s operational procedures, followed by a
review of all Leighton Group companies’ Class Onefocused Safety Standards/Procedures, such as the
Andrew Hall - SHEQS Manager, SEAC
LEIGHTON ASIA
SAFETY
Making Leighton Asia ‘Simply Safe’
Achieving a consistently strong safety performance
requires dedicated safety leadership. In 2014, we rolled
out our ‘Simply Safe’ campaign, which aimed to create
accountability among each and every Leighton employee
for being a safety leader responsible for making our
workplaces safe.
Safety is about personal
hazard awareness, team
cooperation and taking quick,
decisive action... And it is never
compromised for the sake of
productivity.
Dean Cowley – General
Manager, Safety
31
2014 has been a strong year for safety performance across the whole of
Leighton Asia. With our total recordable injury frequency rate (TRIFR)
and Lost Time Injury (LTI) rates both trending down, it has been a very
positive year in terms of our key Lag metrics across the business. Most
importantly, we incurred zero fatalities.
We still face several challenges, in particular, regarding the overall
number of Potential Class One Incidents (PC1s) reported. Our reporting
culture around PC1 events is very good and is continually improving,
and our investigation process using the Incident Cause Analysis Method
(ICAM) is very robust. The challenge now is for us to be more effective at
acting on lessons learned in order to become a true learning organisation. In 2014, key initiatives launched in support
of the LAIO safety agenda included:
• Class One Practices, which define LAIO expectations
for the operational standards and management of class 1 risks.
• Simply safe campaign – ‘Don’t walk past it, fix it.’
• Safety leadership refresher training, with the objective
of re-energising and re-focusing our management staff.
• Take 5: Re-launch of the ‘Take 5’ task-specific briefings to workers in order
to ensure an effective and consistent message is getting across to the frontline.
• An improved and streamlined Incident Alert process,
which is now more concise and focused.
• Launched key training curriculums, such as the Crane,
Scaffold & Electrical appreciation course, across LAIO.
Safety is about personal hazard
awareness, team cooperation and
taking quick, decisive action... And it
is never compromised for the sake of
productivity.
Goals for 2015
• Integration of the Safety, Health, Environment & Quality (SHEQ) team /
disciplines.
• Achieve consistency in all operational standards and
processes across the entire LAIO business in the SHEQ space.
COMMITTED
TO RESULTS
SAFETY
Reward safe practices
In 2014, several major projects achieved outstanding
results in terms of Lost Time Injury–Free, safety and good
housekeeping performance. Throughout the year our
projects picked up a total of 58 awards.
Among our more notable achievements, our Wave One project in Noida,
Delhi, chalked up ‘10 Million Safe Man-hours’ without a single lost-time
injury (LTI). Elsewhere in India our Alliance TRITVAM project achieved its
Diamond target of 9.6 million man-hours LTI-free.
Our Central Wanchai Bypass – Central Interchange project in Hong Kong brought
home a silver Good Housekeeping award from the Occupational Safety & Health
Council and Construction Industry Council. The project has now picked up ‘Good
Housekeeping’ awards for four years running. To achieve this outcome, the team
applied the ‘5S’ methodology (organisation, neatness, cleanliness, standardisation
and discipline) into its safety management system and safety culture, implementing
a series of ‘hard’ and ‘soft’ controls to improve the working environment and
workers’ safe behaviour.
Taking the ‘Simply Safe’ pledge - CWB-CI
Hong Kong 2014
A separate project in Hong Kong, Express Rail Link contract 822, picked up MTR
Corporation’s prestigious Best Contractor Award for achieving an impressive score
of 88% from Det Norske Veritas (DNV) for the site’s physical condition. This was the
highest physical condition score of all MTR Express Rail Link (XRL) Tunnel projects
during the second-half of 2014.
32
Our Contract 811B project similarly achieved a score of 88% in its DNV audit. These
are among the highest scores ever to have been awarded in Hong Kong.
In Macau, our Wynn Palace project team scooped the highest awards across the
top three categories at the 2014 Macau Safety Awards, run by Macau’s Labour
Affairs bureau, including: Best main contractor; Best safety management system;
and Best safety management practitioner (Duane Cheung). A further eight awards
were picked up by our workers and subcontractors employed on the project.
Leighton Asia Safety Summit 2014, Hong Kong
LEIGHTON ASIA
SAFETY
We will
• Respect
all people
• Be truthful and honest
• Be open-minded
• Be consistent
• Act fairly
33
INTEGRITY
Anti
corruption
workshop
Increasingly in the Philippines,
there is a strong political and
social desire to eliminate corrupt
practices. From a business
perspective, this creates
significant opportunity for
us, given Leighton’s ongoing
commitment to maintaining
high ethical standards.
By Paul Corbett – Country Manager, Philippines
Historically, there have been unique challenges for
businesses operating in regions with a legacy of
corrupt practices. In South East Asia, our Leighton
Code of Business Conduct has helped us manage
these concerns, by providing a strong reference
point when dealing with third parties.
In the Philippines, the best approach is to avoid
situations where integrity risks may arise. As such,
we ensure that we are involved in quality projects
with quality clients who value integrity as much as
we do. This is reinforced by our Philippines team,
who is committed to Leighton’s core value: ‘Act
with Integrity and Fairness’.
when accepting or offering gifts and hospitality;
with staff aware of Leighton policies in place to
regulate these matters.
The Code and Integrity related workshops have
empowered our people to speak up about situations
they face, and to seek advice on their concerns.
The support provided by Leighton Asia’s Reportable
Conduct Committee and management has helped
to reinforce compliance with the Code as a nonnegotiable part of working for Leighton.
In 2014, our Philippines team undertook further
training on our Code by participating in a series
of workshops on how to deal with bribery and
corruption concerns. This provided us with an
opportunity to discuss what it means to ‘Act with
Integrity’ on a day-to-day basis.
I attended the workshops in Davao and Manila and
particularly enjoyed contributing to the conversation
and addressing ways to deal with some of the
scenarios regularly faced by our team.
A key outcome is that our team gained a stronger
understanding of how to avoid and/or manage
situations which may otherwise cause integrity
concerns, especially when asked for a ‘favour’, or
LEIGHTON ASIA
INTEGRITY
34
General Manager’s Comment:
Embedding Ethics into
Leighton’s Business Culture
By David Palser – Executive General Manager, Risk and Governance
In 2014, the Leighton Asia Compliance Team built
on the successful Code of Business Conduct (Code)
e-training programme, by implementing a range of
initiatives to further embed the ‘Success with Integrity’
culture and ensure that our staff are always focused on:
• Winning and delivering successful projects with integrity every time;
• Performing their job with integrity;
• Never compromising their integrity and ethical standards; and
• Being part of a company recognised as a leader for doing business with integrity.
35
In support of this focus, priority initiatives successfully implemented
during 2014 included:
David Palser, EGM - Risk & Governance
•C
ode of Conduct e-training for staff above project level manpower (covering
5,500 people region-wide);
• T oolbox Ethics Training for project level manpower, helping everyone to
understand the importance of integrity to our operations;
•M
andatory induction e-training for new employees;
• E nhanced reporting frameworks, to improve transparency and compliance with
ethical standards at the project level;
• Internal reviews of projects to assess risks against internationally recognised
benchmarks;
•O
ngoing enhancement of systems and processes to encourage employees to
‘Speak Up’ and raise genuine business conduct concerns (with Leighton Asia’s
Whistleblower Standard providing clear guidance to staff on how to report any
unethical behaviour).
We achieved our key targets for 2014 initiatives, with a 97.5% completion rate for
Code of Conduct e-training; and 90% of all project manpower involved in toolbox
ethics training.
We are proud to have made significant strides forward in continuing to embed the
‘Success with Integrity’ culture across Leighton Asia; and will maintain the focus
through 2015.
INTEGRITY
Be truthful and honest
Leighton Asia continues to encourage transparency
and honesty across all levels of our organisation, with
ongoing initiatives to improve reporting, monitoring and
compliance against our Code and associated standards.
Be consistent
Irrespective of position, all employees are expected to adopt consistent business
approaches to integrity and ethical matters. Consistency is achieved through
ongoing training and awareness, communication and regular interaction with all
internal stakeholders on integrity matters and our core expectations. This approach
will ensure ongoing excellence for Leighton Asia, with successful project delivery
built on integrity as a cornerstone value.
Corporate ethics goals 2015
In 2015, Leighton Asia will remain focused on Success with Integrity and build
on the achievements of 2014. We will continue to communicate to our employees,
through education and training, our four key principles:
• that our employees must adhere to the highest levels of ethical standards on all
occasions;
36
• that managers must commit to their teams to never ask them to do something
which is against the Leighton Core Values and our Code;
• that Leighton Asia commits to all staff to ensure that everyone is trained to
perform their job with integrity every time; and,
• that no employee is ever put in a position where they feel that they must
compromise their integrity for the benefit of Leighton Asia.
LEIGHTON ASIA
INTEGRITY
We will
•R
educe
our carbon
footprint
• Use resources efficiently
•M
inimise our impact
on the environment
• Recycle
• Train our people
37
At Leighton Asia we are
committed to complying
with environmental
regulations within our
respective jurisdictions
across the region, as well
as with our own internal
environmental and resource
efficiency standards.
All of our projects’ environmental management
systems are designed in accordance with ISO
14001:2004 Environmental Management S ystem,
with over 95% independently certified. Going
beyond compliance, we have also established
internal performance targets and KPIs to reduce our
energy and waste footprints.
ENVIRONMENT
Restoring the
rainforest,
educating
our people
Tony Harvey, General Manager
of Leighton Asia’s Southeast Asia
Construction business explains
his decision to support a local
reforestation programme in Malaysia.
By Tony Harvey, Executive General Manager - Southeast Asia
By Tony Harvey, General Manager - SEAC
Through Leighton Asia’s SMART sustainability
strategy we have committed to managing
natural resources responsibly, reducing our
waste streams, responding to community
needs and improving our environmental
performance.
As part of our internal environmental education and
community investment programme, we decided
to support a local reforestation programme by
sponsoring 1000 trees to be planted in the 2014
‘Save our Rainforest Race’ in Malaysia. The objective
of this series of reforestation events is to restore
a total of 42 hectares of rainforest in an area just
outside of the capital, Kuala Lumpur.
The events are a joint effort between a local nongovernmental organization named PEKA, and
Malaysia’s Forestry Department, to restore rainforest
biodiversity while increasing public awareness about
deforestation.
38
Ahead of the actual race day, we held a series of
lunchtime meetings during which we invited PEKA
to educate our staff about the current issue of
deforestation in Malaysia and to encourage our
employees to actively address this issue.
Our education campaign was a success; in support
of Leighton’s 1000 trees sponsorship, 40 Leighton
Asia employees from our KL office rolled up their
sleeves on Race Day to help restore two hectares
of rainforest.
Save Our Rainfirest Race 2014, Malaysia
LEIGHTON ASIA
ENVIRONMENT
Protect the environment
Protecting the environments in which we operate
remained an ongoing business and strategic focus for
us during 2014, writes Chris Telford, Group Manager Quality and Environment.
Throughout the year, we supported the successfully delivery of our construction
projects by identifying and implementing effective mitigation measures to
prevent or minimise environmental impacts to within acceptable levels.
“Through smart
engineering, we have
significantly reduced the
period of disruption and
impact to local communities
arising from our projects.”
39
Chris Telford, Group Manager Quality & Environment
I am pleased to report that we incurred zero environmental breaches, and zero level 1
incidents (please refer to the appendix for definitions). Several of our projects gained
recognition for our strong environmental performance from our clients and other
stakeholders, evidenced by the awards received in 2014 (please refer to page 56).
In 2014, environmental reporting standards were reviewed and improved across the
Leighton Group. The result was clearer definitions and reporting consistency, which
provided a greater level of confidence in the data we capture. This yielded a marked
improvement in the depth and accuracy of our environmental reporting, enabling us
to better identify opportunities for improvement within the business and to share that
knowledge within the group.
Given the wide spectrum of work that we have undertaken, (ranging from complex
buildings, large civil infrastructure and tunnels, to mining), setting across-the-board
reduction targets has been challenging. Our approach has therefore been to identify
improvement initiatives on a project-by-project basis, allowing each project to identify
opportunities that are appropriate to their works.
In densely populated urban areas such as Hong Kong and Singapore, avoiding nuisance
to local communities is an essential part of project planning. Mitigation measures to
prevent adverse impacts such as noise, dust and vibration, coupled with pro-active
community engagement to explain our work methods, have proven to be very effective.
Consequently, we have successfully maintained strong levels of compliance on our
projects while working in increasingly challenging operating conditions.
In Hong Kong, we are constructing mass transit railways and associated stations,
sometimes only metres away from adjacent high-rise housing and the general public.
By changing rock breaking methodology on several of our projects from traditional
mechanical breaking to blasting, we have reduced the overall impact to the public
significantly in terms of period of disruption and impact through smart engineering.
Our projects have also implemented both waste reduction and resource efficiency
initiatives, with workshops being held at the start of new projects to identify opportunities
such as working with our supply chain to avoid waste in packaging materials. These
initiatives provide a ‘win-win’ result in reducing environmental impacts while making us
more efficient and competitive in business.
ENVIRONMENT
Sustainable mining:
Fuel, tyre & asset efficiency
Rikki Stancich, Group Manager – Sustainability
& Corporate Affairs, provides insight into our
approach to sustainable coal and ore extraction.
When it comes to the environmental impact
of diesel emissions and tyre waste, our mining
operations have the largest footprint across
our businesses.
Jerky driving results in massive rocks spilling from
the truck tray. The resulting safety hazard causes
swerving and braking and even less fuel-efficient
driving.
In 2013 Leighton Asia’s mining activities accounted
for 80 percent of our total direct greenhouse gas
emissions. Of this, Indonesia’s diesel use on its
mining operations accounted for nearly 60 percent.
Consequently, in 2014, reducing our carbon
footprint via diesel efficiency on our Indonesian
mining operations was a focus area of our
sustainability strategy.
The consequences of high rolling resistance are
many and varied, and are often easy to spot. But
the real challenge lies in identifying the most cost
effective measures that yield the highest return on
fuel and tyre efficiency. Targeted road maintenance
and operator behaviour are key; but which measures
in particular yield the highest efficacy?
On any mine, a key factor determining truck
productivity and fuel consumption is the rolling
resistance, or ease with which the truck carries
its haul from the mine pit to the dump. Rolling
resistance is determined by the haul route’s gradient
and ground conditions.
Given the depth of some of our mine pits, coupled
with intense local rainfall and soft ground conditions
in the equatorial region, rolling resistance on our
sites can often be high. Poor road conditions result
in fuel inefficient driver behaviour due to gear
hunting and engine revving.
Following extensive research we identified a solution
that enables us to model existing haul routes and
establish a baseline against which to accurately
quantify the financial and carbon reduction and
safety benefits of specific road maintenance and
operator behaviour measures.
In the first quarter of 2014 our Indonesia mining
team began assessing how best to deploy this
solution. Initial estimates indicate that the solution
could reduce direct greenhouse gas emissions from
a single mine site by roughly 2,000 tonnes of C02e
(carbon dioxide equivalent) per year, while delivering
combined fuel and tyre savings and productivity
gains in excess of US$2 million per year, per project.
Wahana Mine, South Kalimantan, Borneo, Indonesia
LEIGHTON ASIA
ENVIRONMENT
40
We will
•D
evelop
long-term
community partnerships
• Promote our brand
•P
rioritise local employment
• Take the initiative
•E
ngage with our
communities
Meeting stakeholder
expectation through
community engagement
41
In 2014 our business recognised the value
stakeholder engagement presents as an
effective risk management tool for ensuring
that our projects are delivered to programme.
To ensure that we take a systematic approach
to identifying, understanding and mitigating
community-related risks on our projects we
developed and formalised a standard and
procedure for stakeholder engagement and
community investment.
This standard and procedure guides us both
at corporate and at project level with regards
to carrying out stakeholder engagement and
identifying appropriate forms of community
investment.
This approach to community engagement and
investment will be embedded throughout the
business in 2015.
COMMUNITY
Project
excellence
through
stakeholder
engagement
Effective stakeholder
engagement can mitigate
project risk and enhance our
Leighton Asia brand. Our
Singapore team, through
careful planning, has
achieved just this.
By Freddie Chan, Public Relations Officer - Singapore
Stakeholder engagement is a crucial part
of risk management on any project. By
identifying our key stakeholders and opening
a dialogue we are able to identify and address
concerns that might otherwise culminate in
project delays and cost overruns.
Our T208 Springleaf Station and Tunnel project
in Singapore provides an outstanding example of
how our team is engaging the local community in
a manner that ensures smooth project delivery and
enhances our brand and reputation.
Crucial to any good stakeholder engagement
programme is two-way communication. The
engagement platforms provided by Leighton Asia
are as much about providing information as they are
about identifying and understanding stakeholder
concerns. Examples include town-hall meetings, site
barbeques, house visits, tours, questionnaires, and
regular news and SMS updates.
By clearly explaining the project, the equipment
used and its likely impact during construction, works
sequencing and project timeframes, stakeholders
gain greater understanding of the project.
LEIGHTON ASIA
Direct engagement also fosters empathy among
stakeholders and the project team.
Providing stakeholders with the opportunity to voice
concerns and ask questions enables our project
team to identify and mitigate potential risk by
minimising disruption to the local community.
42
The T208 project is now well underway. Current
ground improvement works in close proximity to
private residential and commerce areas demands
that our PR team maintains regular contact with
stakeholders, providing project updates and
gathering feedback to ensure minimal disruption as
the project proceeds.
As the first point of contact for the public, our
PR team provides a crucial interface between
our stakeholders and our project team. Our
engagement platform, coupled with calm
professionalism in receiving and responding to
stakeholder concerns, is crucial to cementing
Leighton Asia’s reputation as a considerate and
responsible contractor.
COMMUNITY
Being a socially
responsible business
In early 2014, Leighton
sponsored just under 100
Leighton employees and
their families to support Plan
International’s ‘Walk for
Children 2014’ event.
Respect and trust are hard won, but easily lost.
Leighton’s ‘Caring Company’ status in Hong Kong
is proof of how going beyond compliance yields
the priceless reward of respect and trust within our
communities.
Rikki Stancich, Group Manager - Sustainability & Corporate Affairs
Our Hong Kong business is proud to have been accorded ‘Caring Company’ status
by the Hong Kong Council of Social Services (HKCSS) since 2012. By awarding us
‘Caring Company’ status, the HKCSS publicly acknowledges that Leighton has,
through the actions of its employees, demonstrated good corporate citizenship.
To achieve this status, our employees have walked the talk on supporting worthy
causes. They have supported the less fortunate in our communities through
support to elderly, disabled and rehabilitation centres, and through the provision of
educational programmes.
They have rolled up their sleeves and tackled the issue of marine litter by supporting
the International Coastal Clean-up, three years running. This important programme
forms part of a global analysis of marine litter dispersal patterns to understand and
assist efforts to tackle marine pollution at source.
43
Our employees have voted with their feet on issues such as child poverty and
deforestation. In early 2014, 80 Leighton employees and their families joined nearly
1000 people to walk against poverty in Plan International’s ‘Walk for Children
2014’ event. Our Leighton-Gammon joint-venture project team built the ramp
that provided event participants with an experience to help them understand the
hardships faced by children walking to school in remote rural areas of China.
In Malaysia, 40 Leighton employees rolled up their sleeves and helped plant 1000
Leighton-sponsored trees as part of a rainforest reforestation programme.
Over the years Leighton has repeatedly demonstrated its commitment to caring
about the communities in which we operate. So when those communities stand up
and applaud our efforts, it is strong indicator that we have succeeded in living up to
our core value ‘Respect the needs of the community’.
COMMUNITY
Engage with our communities
Our Corporate Community Investment (CCI) programme
is an integral part of how we live by our core value
‘Recognise the needs of the Community’.
Throughout 2014, our CCI programme was split across five key areas:
Corporate partnerships comprise strategic forms of support of not-for-profit or
community organisations that we have selected to support on the basis that they
help us to address our stakeholder concerns. These formed 4% of our overall CCI
budget in 2014.
Commercial sponsorships enable us to support important local events and in
doing so, become actively involved in the local cultural celebrations and events. This
accounted for 28% of our total CCI budget in 2014.
Charitable donations accounted for 30% of our CCI budget in 2014. Such
donations are voluntary and are at the discretion of our individual business units,
which are best placed to understand and respond to local requirements. These
donations support a wide range of causes corresponding to local community needs
and appeals from not-for-profit organisations. They directly address stakeholder
concerns and have relevance to our core operations.
44
Employment branding, training and talent attraction accounted for 7% of our
total spend. The nature of such investment is to attract and retain young talent and
provide career progression paths for our local younger employees.
Site events accounted for 31% of our CCI budget in 2014. Some examples of our
site events include local cultural observances, stakeholder engagement events, site
celebrations, participation in charitable events such as marathons and other similar
team building exercises that have a benefit to the local community.
Walk for Children 2014, Hong Kong
LEIGHTON ASIA
COMMUNITY
We will
• Celebrate
CREATE A FUN,
CHALLENGING AND
PERFORMANCE-DRIVEN
CULTURE
success
• Empower people
• Encourage teamwork
•E
mbrace cultural
differences
45
Growing our talent
At Leighton Asia we are committed to providing our employees with a clear career development
path. 100% of our full-time employees receive Performance Development Reviews (PDRs) every
six months.
Our PDRs enable managers to establish goals and performance indicators for their respective team
members at the start of every year. These goals and KPIs are then used to measure employees progress and
performance at the six and twelve-month reviews.
Our PDRs equally provide an opportunity for our employees to voice their career aspirations and their
training targets for any given year. This methodical approach ensures that our employees’ performance can
be measured, and that employees can progress their careers in a fair and transparent manner.
TEAM SPIRIT
Rising stars of Leighton:
HKIE’s President Protégé
Leighton graduate engineer, Ryan Kow, is the first of our young
engineers to represent Leighton on the HKIE President Protégé
Scheme.
By Ryan Kow, Graduate Engineer - Hong Kong
46
During my first year working for Leighton
in Hong Kong, I joined a delegation trip to
Zhu Hai and Macau to learn more about
engineering development in the region.
On this trip I met several fellow graduate engineers
who at the time were President Protégés under the
Hong Kong Institute of Engineers’ (HKIE) President’s
Protégé scheme.
Inspired, I immediately sought endorsement from
my Engineering Supervisor and applied for the HKIE
Protégé scheme.
An exhaustive interview process ensued, during
which I competed against many of Hong Kong’s
elite graduate engineers. I was extremely fortunate
to rank among the ten young engineers from
diverse disciplines selected to be the President’s
Protégé for the 2014-15 Session.
This Session’s theme is ‘Inspire the Young’.
LEIGHTON ASIA
The implication is that, not only do I benefit
from Ir Victor Cheung’s mentorship; I also have a
heightened opportunity to learn more from the
senior figures in this industry; I am more involved
in the HKIE activities; and I have the chance to
work alongside young elite engineers from other
disciplines.
I am incredibly grateful for the sponsorship from
Leighton to support my participation in this scheme.
I am equally grateful for the support provided by
my Engineering Supervisor and Engineering Mentor,
who provide on-going encouragement, motivation,
inspiration and advice in developing my skill set.
I am extremely proud to represent Leighton on
the scheme. Not only am I the first Graduate
Engineer from Leighton ever to be selected to be
the HKIE President’s Protégé; I now have the chance
to promote Leighton’s unique and international
teamwork values through my involvement.
TEAM SPIRIT
Empowering our people
Susan Gleave, our Group Manager - Talent &
Development, explains how Leighton’s People Plan
is the bedrock of our sustainable business strategy.
Stanley Dragon Boat races 2014, Hong Kong
As a civil engineering and construction contractor in Asia, an acute risk
we face is shortage of skilled labour. Taking the short-term view, if we
cannot get the right people on the job, we risk falling behind programme
and incurring penalty costs. In the long-term, we need to have a robust
succession plan in place if we are to continue playing a key role in building
Asia’s cities and infrastructure.
“As a large employer in
Asia, we are committed
to providing continuous
development and career
opportunities for our people.”
Susan Gleave, Group Manager
- Talent & Development
Maintaining a sustainable pipeline of skilled professionals, engineers and senior
project management is therefore pivotal to our success.
With this in mind, in 2014 our Talent & Development team formed
working groups across our projects to create a Leighton Asia competency
framework. This framework defines the desired operational and
commercial competencies of our future project leaders. By assessing 175 of
our current project leaders against the competency profile, we were able to
identify and address development needs across our business.
As a large employer in Asia, we are committed to providing continuous
development and career opportunities for our people. In this respect, during 2014
we heightened our focus on honing our peoples’ technical skills and on providing
project management development opportunities. We also standardised our graduate
engineering programme and opened it up to all our Southeast Asia countries.
47
Our Talent and Development strategy for 2015 remains fully aligned to our 2014
sustainable business objectives of strengthening our existing and future project
leaders’ skills and capabilities.
Our focus is firmly on growing our operational and commercial competencies with
a view to building a pipeline of commercially astute project leaders who possess
strong project management skills. By doing so, we will continue to be a major player
in Asia’s construction markets for years to come.
TEAM SPIRIT
ROI (Recruitment, On-boarding
and Induction) training
The success of our business hinges on the competency of
our people, writes Pamela Lau, Training & Development
Manager.
Poor hiring decisions are costly and represent an area of high risk, in terms
of jeopardising successful project delivery. To ensure we hire the right
people for the job, we rolled out our ROI (Recruitment, On-boarding and
Induction) training programme in 2014, targeting senior and line managers.
The objective was to equip our management team with the skills to spot the best
candidates for the job, and to provide those candidates with the kind of interview,
induction, on-boarding and follow-up that keeps top talent engaged beyond the
first 100 days... and ultimately, beyond the three-year mark.
By the close of 2014, we had successfully trained 189 senior managers and line
managers on the Leighton Asia approach to hiring across our businesses.
The training programme was designed and delivered in-house, with examples
and tools developed in the context of our business. In addition to rolling out
a standardised process for hiring, we also shared useful tools and tips, such as
role profiles, behavioural-based interviewing techniques and resumé screening,
supported by an interview assessment guide and candidate assessment forms.
48
Our training program was structured around the six key elements of an effective
recruitment system. These elements include: resourcing planning & approvals;
candidate sourcing; candidate care; planning & preparation for interview;
assessment & selection; and on-boarding & induction.
Each element was explained in detail with exercises, video clips and simulations
to facilitate an engaging learning experience. Every element plays an important
part in terms of successful hiring, on-boarding and induction, and each is equally
important to help the new hire assimilate into the team and the company. A
successful ROI is a joint effort that leverages the accountability of the hiring
manager and HR team.
LEIGHTON ASIA
TEAM SPIRIT
Roadmap to achieving our SMART goals
2016 Goals
2014 Goals
2014 Status
2015 goals
Energy Efficiency
Plant & Equipment Consolidate best
practices from pilot
programme.
Nil
Not applicable
Roll out to new and
targeted projects.
Conduct workshops at pilot
programme projects to identify
fuel and energy efficiency
opportunities.
Establish energy and fuel baseline
and identify improvement targets
and action plan.
Measure performance and assess
success factors.
Site Offices
All new targeted
project site offices
established according
to energy efficiency
best practice.
Done
Prepare and introduce project site
office design guideline for energy
efficiency.
Not applicable
Develop guidance on materials
efficiency practices for use when
preparing tender submissions.
Done
Evaluate the implementation and
effectiveness of the guideline by
supply chain.
Roll out waste management pilot
programme on targeted Hong Kong
projects.
Done
Pilot programme waste reduction
targets confirmed.
Establish baseline of waste produced
Done
Continue to roll out waste
management workshops on new
projects and monitor progress
Launch energy efficiency programme
on project site offices, identify
opportunities, commit to implementing
energy efficiency measures.
Materials Efficiency
Clients
49
Pre-contract teams to Nil
implement material
efficiency guide during
tender preparation.
Able to provide
guidance to clients on
benefits of materials
efficiency in their
projects.
Supply chain
Expand pilot
programme to all
building projects.
Implement pilot programme to develop
Supplier and Subcontractor Packaging
Guide.
Initiated on targeted Hong Kong
projects.
Project Site
Expand programme to
all projects.
2015 SUSTAINABILITY GOALS
2016 Goals
2014 Goals
2014 Status
2015 goals
Human Capital
Health & Safety
We consistently
achieve target of zero
Class 1 incidents and
a downward trend in
LTIFR.
Having visible and focussed leadership.
On-going
Having visible and focussed
leadership.
Being a learning organisation.
Being a learning organisation.
Embedding safe operating standards
and procedures.
Embedding safety at the pre-contracts
and planning stages.
Ensuring we have the correct
knowledge and verification of
competency.
Embedding safe operating
standards and procedures.
Embedding safety at the precontracts and planning stages.
Ensuring we have the correct
knowledge and verification of
competency.
50
Australian Embassy - Jakarta, Indonesia
LEIGHTON ASIA
2016 Goals
Training &
Communications
Values-based
Recruitment
2014 Goals
2014 Status
2015 goals
ROI training
scheduled
and rolled out
throughout year.
Full training
support provided
to ensure our
workforce
maintains relevant
skills and to
support career
development
paths.
Provide project management
development opportunities
Introduce clear recruitment, induction
and on-boarding guidelines to ensure
fairness, equality and values-based
hiring.
Completed
Continue to roll out initiatives
aimed at fostering employee
loyalty to Leighton Asia
Establish a benchmark for high
potentials in order to build talent
pipeline.
Completed
The RIGHT Way guide completed and
translated into 7 languages. Groupwide e-learning rolled out.
Completed
All employees are fully briefed
on code of conduct. Continuing
communications and training
ensure that our core value
of Acting with Integrity is
understood and embedded.
Not applicable
Prepare and issue water efficiency
guidelines for use by all projects.
Ore core values are
brought to life by our
employees. Our brand
is synonymous with
commercial excellence,
safety and integrity.
189 senior managers and line
managers trained on the Leighton
Asia approach for hiring across our
businesses.
Our employees are our
most valued asset. We
attract and retain the
best talent.
Strengthen our peoples’ technical
skills
Strengthen our peoples’ technical
skills
Provide project management
development opportunities
Integrity
Ethics
51
We are renowned
within our sectors
for our integrity,
transparency and
accountability.
Anti corruption and bribery workshops
held across business.
Group messaging and toolbox talks
underway.
Business cards with ethics hotline and
prompts distributed to employees.
Environment
Water
Projects to identify
and implement
opportunities for
water efficiency and
saving.
Savings quantified and
monetised
Nil
2016 Goals
2014 Goals
2014 Status
2015 goals
Community
Stakeholder
Engagement
Media
Business has
integrated stakeholder
engagement into
risk management
approach. Regular,
targeted stakeholder
engagement to
ensure our projects
can proceed with
minimal disruption in a
manner that is mindful
of community and
environment.
Establish standard and guidance
to ensure consistent approach to
stakeholder engagement is taken
across the business.
Completed
Assess efficacy of engagement
framework. Identify where we
have fallen short. Determine
strategy for meeting
expectations.
All CSR activities
address stakeholder
concerns relating to
our core business
activities. They
are consistently
communicated
internally and
externally.
Establish standard and guidance
to ensure consistent approach to
community investment is taken across
the business.
Done
All relevant projects are
undertaking regular stakeholder
engagement to ensure concerns
are identified and risks are
mitigated, facilitating smooth
project delivery
Regular participation
in industry associations
ensures that LAIO is
shaping future policies
and regulations,
remains ahead of the
curve on legislative
changes that impact
the industries in which
we operate.
Identify relevant areas that are subject
to legislative change (i.e. energy
management, waste management etc.)
and industry groups that are engaging
with governments. Identify and
leverage engagement opportunities.
Done
Establish a clear position on
pending policies and ensure these
are presented to governments
via active participation in
industry associations, meetings,
engagement.
Regularly
communicate our
vision, progress,
strategy and
achievements via
our external website
(sustainability reports
and microsite), social
media platforms,
columns and press
interviews.
Migrate corporate magazine and
sustainability report online (to support
resource efficiency strategy).
Done
Announce sustainability report and
strategy on social media platforms.
Done
Establish framework for information
and channels for disemination of best
practice.
Done
LEIGHTON ASIA
Share Leighton Asia’s story via
external press, social media
and speaker opportunities at
conferences.
52
Safety Awards
Hong Kong & Macau
Date of Award
53
Project1
Awarding Body
Award
18-Feb-2014
H2547 SIL903
Occupational Safety and
Health Council
Work Stress Management Best Practices Award
16-Mar-2014
H2514 STF
Labour Department
Silver Award
16-Mar-2014
H2514 STF
Labour Department
Gold Award Sub-contractor (Building Construction
Site)
16-Mar-2014
H2514 STF
Labour Department
Gold Award - Safety Team
16-Mar-2014
H2540 CWB
Labour Department
Gold Award - Construction Industry Safety Award
Scheme 2013/2014
16-Mar-2014
H2547 SIL903
Labour Department
Merit in safety team category in the Construction
Industry Safety Award Scheme
16-Mar-2014
H2601 SCL1112
Labour Department
Silver Silver in the Civil Engineering Sites category of
Construction Industry Safety Award Scheme 2013
16-Mar-2014
H2601 SCL1112
Labour Department
Meritorious Prize Prize in the Safety Teams category
of Construction Industry Safety Award Scheme 2013
22-Mar-2014
H2561 XRL810A
Labour Department
Merit Award in Civil Engineering Sites Category of
Construction Industry Safety Award Scheme
26-Mar-2014
H2547 SIL903
MTRC
Contractors’ Supervisor Safety Award - Runner Up Mr. Shea Wei Ming
26-Mar-2014
H2527 XRL811B
MTRC
Runner up - Contractor Supervisor Award - Lee
Cheuk Fan, Andy
26-Mar-2014
H2555 SIL904
MTRC
Contractor Safety Award - Silver
26-Mar-2014
H2555 SIL904
MTRC
Contractors’ Supervisor Safety Award Runner Up Chan Kwok Sing Saky
25-Apr-2014
C2604 Wynn
Palace Project
DSAL (Macau Labour
Department)
2013 Macau Safety Award - Best Subcontractor
Award - Bronze Prize
25-Apr-2014
C2604 Wynn
Palace Project
DSAL (Macau Labour
Department)
Macau Construction Safety Award - Best Main
Contractor (Gold)
25-Apr-2014
C2604 Wynn
Palace Project
DSAL (Macau Labour
Department)
Macau Construction Safety Award - Best Safety
Management System (Gold)
25-Apr-2014
C2604 Wynn
Palace Project
DSAL (Macau Labour
Department)
Mr Duane Cheung received the Macau Construction
Safety Award - Best Safety Practitioner (Gold)
25-Apr-2014
C2604 Wynn
Palace Project
DSAL (Macau Labour
Department)
Mr Ng Chio Kuong received the Macau Construction
Safety Award: Best Safety Worker (Merit)
25-Apr-2014
C2604 Wynn
Palace Project
DSAL (Macau Labour
Department)
Mr Lam Kuan Lao received the Macau Construction
Safety Award - Best Safety Worker (Merit)
27-May-2014
H2555 - SIL904
DB & Hong Kong
Construction Association
(HKCA)
Bronze Award in the Innovative Safety Initiative
Award 2014, Health and Welfare Category: Fit
testing of respiratory protective equipment face piece
27-May-2014
H2555 - SIL904
Take 5, organized by
Development Bureau &
HKCA
Merit Award in Innovative Safety Initiative Award
2014, SMS Training and Promotion Category
29-May-2014
H2540 CWB
Development Bureau (DB)
& Construction Industry
Council (CIC)
Silver Award in the Considerate Contractors Site
Award Scheme 2013
29-May-2014
H2555 - SIL904
Development Bureau
Bronze Award in Considerate Contractors Site Award
SAFETY AWARDS
Date of Award
Project1
Awarding Body
Award
27-May-2014
H2561 - XRL810A
Development Bureau HK
Construction Association
& Construction Industry
Council
29-May-2014
H2555 - SIL904
Development Bureau
Mr Lee King Yeung received the Model Frontline
Supervisor Award
29-May-2014
H2555 – SIL904
Development Bureau
Mr Hui Chi Chiu received Model Worker Award
29-May-2014
H2601 - SCL1112
Development Bureau
Silver Award in the Considerate Contractor Site
Award Scheme 2013
09-July-2014
H2488 HATS
Health Council (OSHC)
Certificate of Participation of Best Safe Working Cycle
Site
09-July-2014
H2540 CWB
Sliver Award at the Construction Safety Promotional
Campaign 2014
09-July-2014
H2561 XRL810A
Gold Award for Best Safety Enhancement Program
for Working at Height
09-July-2014
H2561 XRL810A
Bronze Award of Best Presentation
09-July-2014
H2601 SCL1112
Health Council
Bronze Award at the Best Method Statement Award
Competition
05-Sep-2014
H2488 HATS
Health Council
Safety Performance Award (Construction)
29-Sep-2014
H2538 XRL822
Mass Transit Railway
Corporation (MTRC)
Best contractor (XRL project - Tunnels South Section)
at the Tenth Contractors Safety Conference
10-Sep-2014
H2547 SIL903
MTRC
Silver Award in Best Contractor Award (Civil)
Silver Award in the Innovative Safety Initiative Award
2014
10-Sep-2014
H2547 SIL903
MTRC
Mr Shea Wei Ming received the Winner Contractor’s
Supervisor Safety Award
10-Sep-2014
H2555 SIL904
MTRC
Mr CHAN Shun Choi received the Runner Up
Contractor’s Supervisor Safety Award
10-Sep-2014
H2561 XRL810A
MTRC
Best Site Condition Award (Runner-up)
12-Sep-2014
H2547 SIL903
The Lighthouse Club
Mr LEE Yick Hang received the Safety Professional
Award (Distinction)
12-Sep-2014
H2547 SIL903
The Lighthouse Club
Safe Subcontractor Award (Silver award) - Associated
Engineers Ltd.
29-Sep-2014
H2561 XRL810A
MTRC
Best Effort Award 2014
29-Sep-2014
H2561 XRL810A
MTRC
Subcontractor Alfasi received the Subcontractors
Safety Award 2014
10-Sep-2014
H2601 SCL1112
MTRC
Mr Gabriel So received Stakeholder Engagement
Award Scheme
12-Sep-2014
H2601 SCL1112
The Lighthouse Club
Safe Project Team-Merit Award
29-Sep-2014
H2601 SCL1112
MTRC
Best Effort Award
11-Oct-2014
H2601 SCL1112
The Lighthouse Club
Safe Subcontractor Award - Intrafor (subcon) 2014
06-Dec-2014
H2561 XRL810A
Health Council
Gold Award of Safe Lifting Operation Competition
06-Dec-2014
H2561 XRL810A
Health Council
The Best Crane Operator Award
06-Dec-2014
H2561 XRL810A
Health Council
The Best Signalman Award
LEIGHTON ASIA
SAFETY AWARDS
54
Safety Awards
Indonesia & Asia Mining
Date of Award
Project1
Awarding Body
Award
Gold certificate of Appreciation in 3rd Indonesian Fire
& Rescue competition 2014
10-Feb-2014
ID211 Toka
Tindung
19-Mar-2014
ID229 AEJ :
Man Power and
Australian Embassy
Transmigration Department
Project
Tertib K3 - Safety Award from Basarnas
26-May-2014
ID020 BSF
MENAKERTRANS
4,580,612 manhours LTI-free
29-May-2014
ID212– MSJ
Basarnas SAR National
22-Oct-2014
ID006 BKS
Manpower Department RI
IFRC Board of Directors
The Best Graduate of OHS Expert (AK3 Umum) Kadhafi Satria
South East Asia Construction
Date of Award
55
Project1
Awarding Body
Award
27-Aug-2014
S1012 - C935
Building & Construction
Authority
Green and Gracious Builder Award
04-Sep-2014
S1012 - C935
Annual Safety Award
Convention
Certificate of Merit from Land Transport Authority
(LTA)
07-Oct-2014
S1012 - C935
LTA
Innovative noise management Award at the Annual
Safety Award Convention
07-Oct-2014
SG1303 - T208
Annual Safety Award
Convention
Innovative noise management Award at the Annual
Safety Award Convention
22-Oct-2014
ID006 - BKS
Manpower Department RI
The Best Graduater of OHS Expert (AK3 Umum)
26-Dec-2014
SG1303 - T208
WSH Council
BizSafe Star Certified - LCAL (Singapore)
26-Dec-2014
SG1303 - T208
WSH Council
BizSafe Star Certified - LCAL (Singapore)
Note 1: Please refer to page 57-60 for full project name
Ipoh to Padang Besar Double Tracking Project, Malaysia
SAFETY AWARDS
Environmental Awards
Hong Kong (2013-2014)
Date of Award
Project
Awarding Body
Award
May 02, 2014
South Island Line
903
Environmental Campaign
Committee
Hong Kong Award for Environmental Excellance
Bronze Award
May 02, 2014
Central Wanchai
Bypass - Central
Interchange
Committee
Hong Kong Award for Environmental Excellance –
Certificate of Merit
May 02, 2014
Sludge treatment
Faclility
Committee
Hong Kong Award for Environmental Excellance –
Certificate of Merit
May 09, 2014
Central Wanchai
Bypass - Central
Interchange
Development Bureau and
Construction Industry
Council
Outstanding Environmental Management and
Performance Award (Public Work – New Works) 2013
– Bronze Award
May 09, 2014
Shatin to Central
Link 1112
Development Bureau and
Construction Industry
Council
Outstanding Environmental Management and
Performance Award (Non-Public Work Sites – New
Works) 2013 Bronze Award
September 10, 2014
Shatin to Central
Link 1112
MTR Corporation
MTR Environmental Award 2014 – Gold Award
November 25, 2014
South Island Line
903
MTR Corporation
Project Innovation Award 2014 – Brown Award
March 26, 2015
Tin Shui Wai
Hospital
Architectural Services
Department
Silver - Green Contractor Award 2014
56
Rantau Dedap Geothermal Power Project , South Sumatra Indonesia
LEIGHTON ASIA
ENVIRONMENTAL AWARDS
Hong Kong & Macau 2014 Projects
Leighton
Share
Project
Code
Project Name
H2561
XRL810A-West Kowloon Terminus Station North
50%
MTR Corporation Limited
Building (inc Refurb)
H2561A
XRL810A - Electrical & Mechanical Work for
XRL810A
100%
Leighton Gammon Joint Venture
H2566
XRL816D-W K Terminus - FS, Plumbing &
Drainage
50%
H2566A
XRL816D - W K Terminus - Allotted Work
100%
C2604
Wynn Palace Resort - Overall Project Report
100%
Wynn Resorts (Macau) S.A.
H2590
Tin Shui Wai Hospital
51%
HKSAR - Architectural Services Department
H2590A
Tin Shui Wai Hospital - MEP Subcontract Work
100%
Leighton Able Joint Venture
H2590A
Tin Shui Wai Hospital - MEP Subcontract Work
(Elimination)
100%
Leighton Able Joint Venture
C2625
Wynn Macau South Casino Renovation Works
100%
Wynn Resorts (Macau) S.A.
H2620
HKBCF Passenger Clearance Building
83.70%
HKSAR - Highway Department
H2488
Harbour Area Treatment Scheme Stage 2A
(HATS) - construction of a sewage conveyance
system from Aberdeen to Sai Ying Pun.
80%
HKSAR - Drainage Services Department
57
PROJECT LIST
Client
Activity
Civil
Hong Kong & Macau 2014 Projects
Project
Code
Project Name
Leighton
Share
Client
Activity
H2514
Sludge Treatment Facilities
24%
HKSAR - Environmental Protection
Department
Civil
H2527
XRL811B W Kowloon Terminus Approach Tunnel (South)
50%
Civil
H2538
XRL822 Tse Uk Tsuen to Shek Yam Tunnels
100%
Civil
H2540
Central-WanChai Bypass - Central Interchange
100%
HKSAR - Highways Department
Civil
H2555
55%
Civil
H2547
SIL904 Lei Tung & Sth Horizons Stations & Tunnels
Limited
SIL903 - Ocean Park & Wong Chuk Hang Station
100%
Civil
H2601
SCL 1112 Hung Hom Station
100%
Civil
H2601A
SCL 1112 MEP Subcontract Work
100%
Leighton Contractors (Asia) Limited
Civil
H2618
SCL1175 Building Services for Kai Tak Station
100%
Civil
H2613
CWB HY/2011/08 - Tunnel Bldgs, Systems & Fittings
100%
HKSAR - Highways Department
Civil
H2622
SCL 1176 Bldg Services for Sung Wong Toi Stn & SUA
100%
Civil
H2624
SCL1123 Exhibition Stn & Western Approach Tunnel
51%
Civil
58
Guangzhou-Shenzhen-Hong Kong Express Rail Link Contract 810A
LEIGHTON ASIA
PROJECT LIST
Southeast Asia 2014 Projects
Project
Code
Leighton
Share
Client
Activity
M370
Malaysia: Northern Double Track
100%
MMC Gamuda Joint Venture Sdn Bhd
Civil
MY1203
Malaysia :Tg Bin 4 CW Intake, Pumpstation & Discharge Culver
50%
Mudajaya Corportation Bhd
Civil
MY1303
Malaysia: Tg Bin 4 Turbine Hall Civil Works
100%
Mudajaya Corporation Berhad
Civil
P1120
Philippines: Davao Power Plant
100%
Therma South Inc.
Civil
P1007
Philippines: NLEX Segment 10
100%
Manila North Tollways Corporation
Civil
Philippines: Masbate Gold Mine
100%
Completed end of 2014 and handed to client
January 2015
Mining
P1301
Philippines: Belle Grand Casino
100%
Completed end of 2014 and handed to client
January 2015
Building (inc
Refurb)
S1012
Singapore: C935 Sungei Road Station and Associated Tunnels
50%
Land Transport Authority of Singapore
Civil
SG1303
Singapore: T208 Springleaf Station and Associated Tunnels
50%
Land Transport Authority Singapore
Civil
ID229
Indonesia: Australian Embassy, Jakarta
70%
Commonwealth of Australia, c/o DFAT
Building (inc
Refurb)
ID233
Indonesia: Coca Cola Warehouse Semarang
100%
PT Coca-Cola Bottling Indonesia
Building (inc
Refurb)
ID238
Indonesia: Evoluzione Motorcycle Tyre Factory
100%
PT Evoluzione Tyre Indonesia- JV btn Pirelli &
Astra
Building (inc
Refurb)
ID241
Indonesia: Fonterra Borobudur Project
100%
PT Fonterra Brands Manufacturing Indonesia
Building (inc
Refurb)
ID242
Indonesia: Coca Cola Warehouse Bali
100%
PT Coca Cola Bottling Indonesia
Building (inc
Refurb)
ID243
Indonesia: MGM Bambang River Crossing
100%
PT Marunda Grahamineral
Civil
ID244
Indonesia: Freeport Small Job
100%
PT Freeport Indonesia
Building (inc
Refurb)
525028
Indonesia: Haju Stage 3 Construction Work
100%
Lahai Coal, PT
Civil
525015
Indonesia: Vale Construction Services
100%
Vale Indonesia Tbk, PT
Process (inc
SME)
525020
Indonesia: Saipem Karimun Project
100%
PT. Saipem Indonesia Karimun Branch
Process (inc
SME)
525027
Indonesia: Seruyung Gold Development Project
100%
PT Sago Prima Pratama (J-Resource)
Civil
ID240
Indonesia: Freeport Target Management Fee
100%
Building (inc
Refurb)
ID239
Indonesia: Freeport - Construction of CIP Office Building
100%
Building (inc
Refurb)
ID235
Indonesia: Freeport - Construct Super Block at Ridge Camp
100%
Building (inc
Refurb)
ID236
Indonesia: Freeport - Melati Kitchen Renovation and Expansion
100%
Building (inc
Refurb)
ID228
Indonesia: Caterpillar LMT Facility
100%
PT Caterpillar
Building (inc
Refurb)
ID230
Indonesia: Freeport - New Ridge Camp Bus Terminal at MP72
100%
Building (inc
Refurb)
ID231
Indonesia: Freeport - 1,500 Man Barrack(RCBK W/H Conversion)
100%
Building (inc
Refurb)
ID232
Indonesia: Supreme Energy Rantau Dedap Geothermal
100%
PT Supreme Energy
Civil
P2306
59
Country, Project Name
PROJECT LIST
India & Offshore 2014 Projects
Project
Code
Country, Project Name
Leighton Share
Client
Activity
IN016
India: Ghaziabad-Kanpur Signal
100%
Indian Railway Project Management
Unit
Civil
I1013
India: Wave One Construction (Structure)
50%
Wave City Center Pvt Ltd
I1043E
India: Wave Eleven
50%
Wave City Tower Private Limited
I1132
India: TRITVAM, Kochi
100%
TRIF Kochi Projects Pvt. Ltd.
I1252
India: DLF Camellias - Gurgaon
100%
DLF Limited
I1311
India: DLF Golf Course & Other
100%
DLF Limited
I1321
India: LULU, Kochi
100%
LULU Convention & Exhibition
Center Pvt Ltd
I1007H
India: Chenani to Nashri Tunnel NH - 1A KM 89-130
100%
Il&FS Ttansportation Networks
Limited
Civil
I1018A
India: Storm Water Outfall
100%
Indian Oil Corporation Ltd
Process (inc SME)
I1154
India: Pipeline Replacement Project-3
100%
Oil & Natural Gas Corporation
Process (inc SME)
I1173
India: Cairn 3
100%
Cairn Energy India Pty Ltd
Process (inc SME)
I1165
India: Cairn 2
100%
Cairn Energy India Pty Ltd
Process (inc SME)
I1303
India: Heera Redevelopment Ph-II Pipeline Project
100%
Process (inc SME)
I1249
India: Additional Pipeline Project
100%
Process (inc SME)
S432
Offshore: Crude Oil Export Facility Reconstruction, Iraq
100%
South Oil Company
Civil
S397
Offshore: ICOEEP Iraq Phase1
100%
South Oil Company
Civil
J1108
Offshore: JHL(SEA)JV - Pile supply to GLNG, QCLNG
50%
John Holland Pty Ltd
Civil
J1107
Offshore: JHL(SEA)JV - WICET Stockyard
50%
John Holland Pty Ltd
Civil
J13001
Offshore: Sumandak
70%
Petronas Carigali Sdn Bhd
Civil
J13002
Offshore: Bekok-A & Tiong-A
70%
Civil
J13003
Offshore: Cendor Bridge
70%
Kencana HL Sdn Bhd
Civil
J13004
Offshore: Baram BADP-B
70%
Civil
LE003
Offshore: Sealine Detailed Design
100%
Leighton Offshore Pte Ltd
Civil
LE008
Offshore: SOC Phase 1 Support
100%
Civil
LE006
Offshore: LO Technical Support
100%
Civil
J14001
Offshore: HK Metal Loss on Subsea Pipeline
100%
Leighton Contractors (Asia) Limited
Civil
LEIGHTON ASIA
60
PROJECT LIST
Third-party report verification
ASSURANCE STATEMENT
SGS STATEMENT ON ASSURANCE
Leighton Asia Sustainability Report 2014
NATURE AND SCOPE OF THE ASSURANCE
SGS Hong Kong Ltd was commissioned by Leighton Asia (thereafter as “Leighton”) to conduct an independent
assurance of the “Sustainability Report 2014”. The scope of the assurance, based on the SGS Sustainability
Report Assurance methodology, included the text and data in accompanying tables, contained in the Report.
Data and information of Leighton were included in this assurance process, which covered Hong Kong & Macau,
Southeast Asia, Offshore and India.
The information in the report and its presentation are the responsibility of Leighton. SGS has not been involved
in the preparation of any of the material included in the Report. Our responsibility is to express an opinion on
the text, data, graphs and statements within the mentioned scope of assurance set out below with the intention
to inform all Leighton’s stakeholders.
The SGS protocols are in accordance with internationally recognized guidance, including the Principles
contained within the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (2011) for accuracy
and reliability and the guidance on levels of assurance contained within the AA1000 series of standards and
guidance for Assurance Providers.
This Report has been assured at a basic assurance by using our protocols for:
ASSURANCE OPINION

Evaluation of content veracity; and
On the basis of the methodology described and the verification work performed, we are satisfied that the

Evaluation against the AA1000 Accountability Principles (2008).
information and data contained within the Report verified is accurate, reliable and provides a fair and balanced
representation of Leighton sustainability activities in 2014. The assurance team is of the opinion that the Report
The assurance comprised a combination of pre-assurance research, interviews with the management and
can be used by the Reporting Organisation’s stakeholders.
employees, project site visit, documentation and record review.
61
AA1000 ACCOUNTABILITY PRINCIPLES (2008) CONCLUSIONS, FINDINGS AND RECOMMENDATIONS
Financial data drawn directly from independently audited financial accounts has not been checked back to
source as part of this assurance process.
Inclusivity:
Stakeholder mapping, engagement and prioritization of stakeholders and their concerns are
clearly presented.
STATEMENT OF INDEPENDENCE AND COMPETENCE
The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than
Materiality:
Materiality assessment and materiality matrix are developed.
140 countries and providing services including management systems and services certification; quality,
environmental, social and ethical auditing and training; environmental, social and sustainability report assurance.
Responsiveness: Stakeholders expectations are addressed and responded.
SGS affirms our independence from Leighton, being free from bias and conflicts of interest with organization, its
subsidiaries and stakeholders.
Signed:
The assurance team was assembled based on their knowledge, experience and qualifications for this
assignment, and comprised auditors registered with Lead Auditor of SA 8000, ISO 26000, ISO 14001, OHSAS
For and on behalf of SGS Hong Kong Limited
18001 and GRI-nominated Trainer in Sustainability Reporting.
ASSURANCE OPINION
On the basis of the methodology described and the verification work performed, we are satisfied that the
information and data contained within the Report verified is accurate, reliable and provides a fair and balanced
Ben
Tsang
Patrick
representation
of Leighton sustainability activities in 2014. The assurance
team LEUNG
is of the opinion that the Report
Senior Director, China and Hong Kong
Lead Assuror
can be used by the Reporting Organisation’s stakeholders.
Systems and Services Certification
13 May 2015
AA1000
ACCOUNTABILITY PRINCIPLES (2008) CONCLUSIONS, FINDINGS AND RECOMMENDATIONS
www.sgs.com
Inclusivity:
Stakeholder mapping, engagement and prioritization of stakeholders and their concerns are
clearly presented.
Materiality:
Materiality assessment and materiality matrix are developed.
Responsiveness: Stakeholders expectations are addressed and responded.
Signed:
For and on behalf of SGS Hong Kong Limited
Ben Tsang
Senior Director, China and Hong Kong
13 May 2015
www.sgs.com
ASSURANCE STATEMENT
Patrick LEUNG
Lead Assuror
Global Reporting Initiative (G4 ) General Standard Disclosures
Disclosure
Page number
External Assurance on Standard Disclosures
G4-1
p1, p2
Managing Director Statement
G4-2
p15-17
Key impacts, risks and opportunities
G4-3
Inside cover facing
Name of organisation
G4-4
p3, p4
Primary services
G4-5
p3, p4
Location of headquarters
G4-6
p3, p4
Geographical presence
G4-7
Inside cover, p3, p13
Nature of ownership and legal form
G4-8
p3, p4
Markets and sectors served
G4-9
p5-11
Scale of organisation (employees, revenue, performance)
G4-10
p12
Employee diversity
G4-11
p12
Collective bargaining
G4-12
p21-23
Description of Supply Chain
G4-13
p13, p14
Signficant changes during the reporting period
G4-14
p13-16, p31-32, p39-40
Precautionary approach to Safety and Environment
G4-15
p13-16
Economic, environmental and social charters
G4-16
p68
List of associations and memberships
G4-17
Front cover facing, p3, p4, p13
Entities included in consolidated financial statements
G4-18
Front cover Facing, p17-20
Process for defining content and Aspect Boundaries
G4-19
p4, p17, p18
Material Aspects identified in the process for determining
report content
G4-20
p18, p19, p20
Aspect boundaries within the organisation
G4-21
p15-20
Aspect boundaries outside the organisation
G4-22
No re-statements of information
Restatements of information
G4-23
p13, p14
Significant changes impacting Scope and Boundaries
G4-24
p19, p20
Stakeholders engaged by the organisation
G4-25
p17-20
Basis for identification of stakeholders and whom to engage
G4-26
p19, p20
Approach to stakeholder engagement
G4-27
p19, p20
Topics and concerns raised through stakeholder engagement
G4-28
Front cover facing
Reporting period
G4-29
Front cover facing
Date of most recent report
G4-30
Front cover facing
Reporting cycle
G4-31
Inside front cover
Contact point for questions regarding report or its contents
G4-32
Front cover facing
Report ‘In Accordance’ option selected by organisation
G4-33
Front cover facing
Policy and practice regarding seeking external assurance
p13, p14
Leighton Holdings Annual Report
Governance structure of the organisation
p4, p13, p31-48
Values, principles and standards
Strategy & Analysis
Organisational Profile
Commitments to External
Initiatives
Identified Material Aspects
and Boundaries
Stakeholder Engagement
Report Profile
Governance
G4-34
G4-35- 55
Ethics and Integrity
G4-56
LEIGHTON ASIA
GRI DISCLOSURES
62
Global Reporting Initiative (G4 ) Specific Standard Disclosures
Category & Aspect
Indicator assessed by external verifier
Page number
G4-EC1
Direct economic value generated and distributed
p8
G4-EC2
Implications, risks and opportunities due to climate change
p2,16,21
G4-EC6
Proportion of senior management hired from the local
community
p12
G4-EN1
Materials used by weight or volume
p21
G4-EN2
% materials used that are recycled inputs - rebar
p21
G4-EN3
Energy consumption within organisation
p11
G4-EN4
Energy consumption outside of organisation
p11
G4-EN5
Energy intensity
p11
G4-EN6
Reduction of energy consumption
p11
G4-EN15
Direct Greenhouse gas emission (scope 1)
p11
G4-EN16
Indirect Greenhouse gas emissions (Scope 2)
p11
G4-EN17
Other indirect greenhouse gas emissions (Scope 3)
p11
G4-EN18
Greenhouse gas emissions intensity
p11
G4-EN19
Reduction of Greenhouse gas emissions
p11
G4-EN22
Total water discharge by quality and destination
To be included in the
2016 Report
G4-EN23
Total weight of waste by type and disposal method
p10
G4-EN24
Total number and volume of significant spills
p10
Fines for non-compliance with environmental laws and
regulations
N/A
G4-EN32
% of new suppliers screened using environmental criteria
p23
G4-EN33
Actual and potential negative impacts in supply chain and actions
p23
taken
G4-EN34
Number of grievances filed about environmental impacts filed,
addressed and resolved through formal grievance mechanisms
p10
Total number and rates of new employee hires and employee
turnover rates
p47, 48
Type of injury and rates of injury
p9
G4-LA9
Average hours of training per year, per employee, by gender, by
employee category
p12
G4-LA10
Programmes for skills managmeent and career management
p47, 48
G4-LA11
Percentage of employees receiving regular performance
development reviews
p45
Economic
Economic Performance
Environmental
Materials
Emissions
Effluents and Waste
63
Compliance
G4-EN29
Supplier Environmental Assessment
Social
Labour Practices and Decent Work
G4-LA1
Occupational Health and Safety
G4-LA6
Training and Education
GRI DISCLOSURES
Category & Aspect
Indicator assessed by external verifier
Page number
Composition of governance bodies and breakdown of employees
according to gender and employee category
p12, 13, 14
Ratio of basic salary and remuneration of women to men
p12
G4 - LA14
Percentage of new suppliers screened using labour practices criteria
p23
G4 - LA15
Significant actual and negative impacts for labour practices in the
supply chain and actions taken
p23
G4 - HR3
Total number of incidents of discrimination and corrective actions
taken
To be recorded in
future reports
G4 - HR6
Forced or compulsory labour
To be addresssed
in future reports
G4 - HR10
Percentage of new suppliers screened using human rights criteria
To be recorded in
future reports
G4 - HR11
Significant actual and negative human rights impacts in the supply
chain and actions taken
To be recorded in
future reports
G4-SO1
Percentage of operations with implemented local community
engagement, impact assessments and development programmes
p16
G4-SO2
Operations with significant, actual or potential negative impacts on
local communities
p16, 17, 28
G4-SO3
Total number and percentage of operations assessed for risks related
to corruption and the significant risks identified
p16
G4-SO4
Communications and training on anti-corruption policies and
procedures
p34, 35, 36
Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance
N/A
G4 - SO9
Percentage of suppliers that were screened using criteria for impacts
on society
To be reported in
future reports
G4 - SO10
Significant actual and potential negative impacts on society in the
supply chain and actions taken
To be addressed in
future reports
G4 - SO11
Number of grievances about impacts on society filed, addressed, and
resolved through formal grievance mechanisms
To be be
addressed in
future reports
Diversity and Equal
Opportunity
G4 -LA12
Supplier Assessment for Labour
Practices
G4 -LA13
Human rights
Supplier Human Rights
Assessment
Local Communities
64
Anti-Corruption
Compliance
G4 - SO8
Supplier Assessment for Impact
on Society
LEIGHTON ASIA
GRI DISCLOSURES
Appendix
Explanation of terms
Business units refer to our regional operations
and are defined as follows:
Breaches refer to the number of breaches of statutory
health requirements, including improvement notices,
prohibition notices, penalty notices and prosecutions.
Hong Kong & Macau: Hong Kong, Macau
Indonesia Asia Mining: Indonesia, Mongolia, Philippines
Southeast Asia Construction (SEAC): Malaysia,
Philippines, Singapore, Thailand, Laos Vietnam
Leighton Offshore (LO): Malaysia, United Arab Emirates
and Iraq
Leighton India (LI): India
Class 1 damage refers to a workplace injury or illness
which permanently alters an individual (i.e. fatality,
quadriplegia, paraplegia, amputation, disabling or
pyschological injury.
Table 1
Class 1 Damage Frequency Rate (C1FR) is the number
of incidents of Class 1 Damage per million man-hours
worked in a period.
Number of Class 1 in the month x 1,000,000
65
Number of hours worked in the month
Lost Time Injury Frequency Rate (LTIFR) is the number
of occurrences of lost time injury/disease (personal
damage) per million man-hours worked.
Number of lost time injuries x 1,000,000
Number of hours worked in the month
Severity Rate (SR) is the number of working days lost
due to lost time injury per million man-hours worked.
Days lost x 1,000,000
Significant Near Miss Incident Frequency Rate
(NMIFR) is the total number of near miss incidents having
the potential to result in a total recordable injury but,
due to circumstances, resulted in no personal, plant or
property damage per million man-hours worked. This is
calculated as:
Number of near miss Incidents x 1,000,000
Number of man-hours worked in the month
% Close-out of Incident Alerts is the percentage of
incident alerts issued which have been formally closed out
and evidence returned to the business unit.
Table 5
Environmental incidents are broken down into the
following classifications:
Level 1 High severity:
Pollution or degradation which has or may have
irreversible detrimental effects on the environment and/or
community
Level 2 Medium severity:
Pollution or degradation which has persistent but
reversible effects on the environment and/or community
Environmental Incident Frequency Rate (EIFR) is the
number of environmental incidents (Level 1 and 2) per
million man-hours in the month.
Number of lost time injuries in the month
Number of level 1 and 2 environmental incidents x 1,000,000
Average Lost Time Rate (ALTR) determines the average
lost time per lost time injury.
Number of man-hours worked in the month
Days lost x 1,000,000
Number of lost time injuries in a period
Total Recordable Injury Frequency Rate (TRIFR) is the
number of Class 1 Damage Injuries + LTI + MTI + RWI per
million man-hours worked.
(Number of fatalities + CI + LTI + MTI + RWI) x 1,000,000
Number of lost time injuries in a period
APPENDIX
Table 2
Breaches refer to the number of breaches of statutory
environmental requirements and environmental approvals
or licence conditions.
This includes improvement notices, prohibition notices,
penalty notices and prosecutions.
Formal public complaints are the number of formal,
valid complaints received relating to company activities,
i.e. relating to noise disturbance.
Carbon Footprint
Our carbon footprint is calculated on the basis of
Greenhouse Gas (GHG) emissions, defined as a
combination of gases, including carbon dioxide (C02),
Methane (CH4), Nitrous Oxide (N20) and Sulfur Dioxide
(S02) produced from the combustion of fuel and other
events.
GHG emissions are expressed in tonnes of C02 equivalent
(tC02 – e). This measure allows the total emissions of
various GHGs to be expressed as a single value of tonnes
of C02.
Reporting boundary
Scope 1 emissions are direct emissions arising from
sources owned or operated by Leighton Asia, India and
Offshore and its subcontractors, for example, emissions
from the plant fleet on site.
When control of activities is shared with other Leighton
Group operating companies, for example in joint ventures
or partnerships, information is split equally or as agreed to
avoid double-counting. When control of activities is shared
with parties outside the group, reported information is
reported in its entirety.
Scope 1 emissions are direct emissions arising from
sources owned of operated by Leighton Asia and its
subcontractors, for example, emissions from plant and
equipment on site.
The energy sources that result in C02 emissions include
electricity, coal, natural gas, diesel and petrol.
In 2014, the majority of fuel use by subcontractors
operating within our project site boundaries was captured.
By 2015 we aim to be capturing all subcontractor fuel use
within our project site boundaries.
We do not measure levels of two other major GHGs
because our emissions of these are negligible. These
include: perfluorocarbons (mainly associated with
aluminium and magnesium production) and sulphur
hexafluoride (used in some electrical equipment).
Definition
- C02 emissions are represented on the basis of litres
of fuel combusted and in the change in the tonnes of
C02 resulting from energy use in the year ended 31
December 2014 compared to the 2012 baseline; and
- Total energy consumption in GJ per litre of fuel
combusted
total energy use and is expressed as gigajoules per manhour worked. This measure is used to calculate the energy
intensity of our corporate, construction, offshore, and
mining activities (covering the period January 01, 2014 –
December 21, 2014).
Total emissions during the reporting year are compared to
total emissions in the baseline year (2012).
Explanation of methodology for calculating
Scope 1 emissions
Each project records volumes of fuel combustion of diesel,
petrol and LPG. The fuel component of our ANFO use
(for explosives in civil engineering and mining activities) is
accounted for in our diesel combustion figures.
In order to calculate the energy intensity of our operations,
each energy use is converted to gigajoules (GJ), using the
conversion factors and calorific values.
C02 emissions from fuel combusted on project sites is
calculated on the basis of energy sources converted to
gigajoules, multiplied by the carbon emission factor for
each energy type (in kg C02 per GJ).
Total C02 emissions during the reporting year is the sum
of C02 emissions for each energy source.
66
We calculate fuel combustion emissions as per litre of
fuel combusted, based on the following formula, using
emissions factors provided by the Australian National
Greenhouse Gas Accounts (NGA):
Eij= Qi x ECi x EFijoxec
1,000,000
Where:
Eij is the emissions of gas type (j), (carbon dioxide,
methane or nitrous oxide, from fuel type (i) (C02-e tonnes)
Q is the quantity of fuel type (i) (litres) combusted for
stationary energy purposes
ECi is the energy content factor of fuel type (i) (gigajoules
per litre) for stationary energy purposes, according to the
emissions factors provided by NGA.
If Q is measured in gigajoules then EC1 is 1
EFijoxec is the emissions factor for each fuel type (j)
(which includes the effect of an oxidation factor) for fuel
type (i) (kilograms C02-e per gigajoule), according to the
emissions factors provided by NGA.
Performance measure: Energy intensity is defined as
LEIGHTON ASIA
APPENDIX
Definition of energy intensity
Performance data preparation and assumptions
Measuring energy intensity enables us to track our energy
performance over time. Our energy intensity is calculated on
the basis of Scope 1, or direct emissions generated by our
core activities; and Scope 2, or indirect emissions arising from
electricity use. We calculate energy intensity on the basis of
energy used (Gigajoules) per manhour worked, which links
our energy use to productivity. doing so helps us to track our
enabling energy efficiency performance and to identify areas of
the business that require improvement.
Primary energy use data is captured for each project site from
meter readings and invoices.
Scope 2 emissions
Our Scope 2, or indirect emissions, are defined as emissions
released as a result of the offsite generation of electricity or the
production of heat, cooling or steam consumed by the site,
including subcontractors on site.
Carbon emission factors for electricity (Scope 2 emissions)
reflect the country or sub-region where each project site is
located. These vary on the basis of feedstock used by the
power generation utility to generate electricity a (i.e. coal,
geothermal, wind, solar).
67
Our Scope 2 emissions are calculated on a country-by-country
basis, using emission figures provided by the Institute for
Global Environmental Strategies Grid EF sheet, UNFCCC, CDM
Project database, updated Jan 08 2014. Hong Kong, Macau,
Philippines, Malaysia, Singapore and Thailand emission factors
are provided by local utilities.
Scope 3 emissions
Our Scope 3 emissions relate to the embedded carbon, or
‘cradle-to-gate emissions’ in the key materials used on our
construction projects. The materials captured are concrete,
rebar and structural steel. The emissions factor relates to the
energy used to produce and transport those materials to our
construction sites. This information allows our clients to more
fully understand the life-cycle emissions of their respective
projects.
The emissions factors used to calculate our embedded carbon
are derived from a Consultancy Study carried out by ARUP on
behalf of the Electrical and Mechanical Services Depeartment
(EMSD) of Hong Kong into the Lifecycle Energy Analysis of
Buidling Construction.
The Emissions factors used are as follows:
•
•
Concrete: 0.17
Rebar: 0.38
•
Structural Steel: 5.34
APPENDIX
With the exception of Hong Kong & Macau, in 2014
environmental data was manually captured by each project in
excel spreadsheets and was reported upward from project site
to Leighton Asia corporate head office on a monthly basis;
and from Leighton Asia corporate head office to Leighton
Holdings on a quarterly basis.
In the same period, Hong Kong & Macau used an online
greenhouse gas emissions and resource use database to
capture data at project level for monthly BU reporting
purposes.
In 2014 we upgraded the HK&M online database (now
referred to as the Environmental Resources System - ERS) with
the intention of rolling it out across the Leighton Asia business
in 2015.
In order to provide an accurate account of our GHG emissions
in 2014, we used emissions factors to convert the various
types of emissions to a common denominator (C02-e). For the
purposes of calculating Scope 1 emissions, we used emissions
factors provided by the Australian National Greenhouse Gas
Accounts (2014) and the Intergovernmental Panel on Climate
Change (IPCC).
For Scope 2 emissions, we used emissions factors provided by
the Institute for Global Environmental Strategies Grid EF sheet
(updated Jan 08 2014), UNFCCC, CDM Project database, and
where possible, factors provided by local utilities.
Waste footprint:
Waste types and volumes are defined as follows:
Solid waste (Tonnes)
Solid waste is divided into construction and demolition waste
(C&D waste) and inert waste (rock spoil, soil and aggregate).
Waste is classified by the amount of waste generated that
is sent to landfill and the amount of waste that is diverted
(reused or recycled). Waste is reported using the following
metrics:
Liquid waste (cubic metres)
Incinerated waste (tonnes)
Waste performance, or intensity is calculated on the basis of
kilograms of waste generated per man-hour worked.
Memberships and Associations
BusinessOrganisation
BusinessOrganisation
Hong Kong
Australian Chamber of Commerce in HK
Singapore (TUCSS)
Singapore
The Singapore Contractors Hong Kong
British Chamber of Commerce
in HK
Association Ltd (SCAL)
Hong Kong
Employer’s Federation of HK
Singapore
Lighthouse Club
Malaysia
Construction Industry Development Board (CIDB)
Malaysia
Master Builders Association Malaysia (MBAM)
Malaysia
Malaysia Australia Business Council (MABC)
Hong Kong
Hong Kong Green Building Council
Malaysia
Malaysia Oil & Gas Services Council (MOGSC)
Hong Kong
Malaysia
Malaysian - German Chamber of Commerce & Industry (MGCC)
Malaysia
British Malaysian Chamber of Commerce (BMCC)
Malaysia
Malaysian Employers Federation HK General Chamber of Hong Kong
Commerce
Hong Kong
HK Construction Association
Hong Kong
The Lighthouse Club
Hong Kong
Association for Project Management
Business Environment Council
Indonesia
APINDO (Asosiasi Pengusaha Indonesia; Indonesian Business Association)
Indonesia
GAPENRI (Gabungan Perusahaan Nasional Rancang Bangun Indonesia; National Association
of Indonesian Design)
Indonesia
Asosiasi Kontraktor Indonesia: Indonesian contractors association
Indonesia
Kamar Dagang dan Industri; Jakarta Chambers of Commerce & Industry
Indonesia
Indonesian Australian
Business Council
Indonesia
Indonesian Petroleum Association
Indonesia
Indonesian Geothermal Association
Indonesia
British Chamber of Commerce
Indonesia
American Chamber of Commerce
Indonesia
Castle Asia
Leighton Offshore
Pte Ltd (Singapore) International Marine Contractors Association (IMCA) Marine Division
Leighton Offshore
Pte Ltd (Singapore) International Pipe Line & Offshore Contractors Association (IPLOCA)
Singapore
Singapore
AustCham Singapore
The Tunnelling and Underground Construction Society
LEIGHTON ASIA
(MEF)
Malaysia
National Institute of Occupational Safety & Health (NIOSH)
Philippines
Lighthouse Club
Philippines
Makati Business Club
Philippines
People Management Association of the Philippines
Philippines
ANZ Chamber of Commerce
Philippines
The Wallace Business Forum
Philippines
Philippine Contructors
Association Inc.
Philippines
Philippine Chamber of
Commerce Industry
Philippines
Pollution Control Assoc of the Phils
Philippines
Procurement Supply Institute
of Asia Inc.
Philippines
Lighthouse Charity
Philippines
Occupational Health and
Safety Council
Philippines
Employers Confederation
of the Philippines
Philippines
New Zealand Business Council
MEMBERSHIPS & ASSOCIATIONS
68
70
DIGITAL ENVIRONMENTS
The complete contents of our e-magazine
can be found on http://www.leightonasia.com

2014 Sustainability Report

Transcription

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