Sustainability at Sembcorp is about striving for excellence and continuous improvement in identifying, understanding and responding to evolving environmental, social and governance challenges facing our businesses.
MANAGING SUSTAINABILITY
At Sembcorp, we believe in building sustainable businesses that deliver long-term shareholder value and growth. We believe that a truly sustainable business not only creates economic value, but does so in a way that benefits its stakeholders.
Environmental, social and governance (ESG) considerations are embedded in our business decisions and processes. We believe that taking ESG considerations into account helps us understand our risks and responsibilities in a holistic manner. We also believe that when our strategy and business decisions incorporate ESG concerns, we are better prepared to respond to the challenges we face.
The management of our sustainability issues is centred on five focus areas. Our key sustainability principles are set out in our Sustainability Policy. These principles are applied throughout our management systems and processes. We aim to continually improve our management systems, and evaluate our management approach by benchmarking it against industry best practice. We adopt a precautionary approach to avoid or minimise negative impacts. A list of our policies, certified facilities as well as memberships and participation in external initiatives can be found
in the Sustainability section of our website.
Sustainability is addressed at the highest levels at Sembcorp. Our Board of Directors oversees the
business affairs of the Group and is collectively responsible for our long-term success. The main duties of the board include providing leadership on Sembcorp’s overall strategy, which takes into consideration sustainability issues. The board also ensures the adequacy of the Group’s framework for risk management and internal controls.
Sembcorp’s Sustainability Steering Committee (SSC) provides strategic direction for managing sustainability-related risks and opportunities.
It also guides the development and improvement
of frameworks, policies, guidelines and processes
to ensure that sustainability issues are effectively managed. The SSC is a high-level committee chaired by the Group Chief Financial Officer, and comprises senior executives across various functions, including asset management, human resources, health, safety and environment (HSE) and corporate relations.
At the business unit level, economic, operational, as well as health and safety issues and other risks are reviewed by the head of operations at bi-monthly business unit management meetings and risk management committee meetings. The Group’s performance in these areas is evaluated against internal targets. Business units also provide quarterly governance assurance certifications on the adequacy of their risk management and internal control systems in line with Sembcorp’s Governance Assurance Framework (GAF).
In 2015, Sembcorp became a signatory to the United Nations (UN) Global Compact, joining more than 8,000 companies globally who have taken a stand for a sustainable future.
Sembcorp was also selected as an index component of the Dow Jones Sustainability Asia / Pacific Index 2015.
Sustainability contact
Sembcorp welcomes feedback on our sustainability issues and reporting at
[email protected].
The table below shows quantitative data that reflects our performance in areas that have been identified as material to our businesses and stakeholders.
More performance data, including qualitative data, is available in the individual sections for each focus area in this report, as well as in the
Sustainability section of our website.
Materiality analysis enables Sembcorp to define sustainability issues that are of greatest significance to our businesses and stakeholders over the long term. As we seek to make progress in our sustainability journey, drive performance and transparency, and embed sustainability into Sembcorp’s culture, this focus on materiality is vital.
Our reporting is currently focused on 11 material issues, grouped into five focus areas. Each focus area is owned by an appointed SSC member. The
five focus areas and 11 material issues are recognised
by both internal and external stakeholders. For each material issue, we report the sustainability context, its relevance to Sembcorp, and our management approach and performance.
Sustainability issues were identified in line
with Global Reporting Initiative (GRI) guidelines. The materiality review took into account GRI’s Electric Utilities Sector Supplement, the Dow Jones Sustainability Index and other relevant frameworks and peer reviews. We prioritised issues using
a materiality matrix, taking into account their significance to Sembcorp and our stakeholders according to clearly defined criteria based on
the AA1000AS five-part materiality process.
The materiality assessment and review were conducted with input from an independent sustainability consultant. To increase the robustness of this assessment, we incorporated feedback from our stakeholders, including shareholders, financial institutions, the investment community, regulators, customers, suppliers and non-governmental organisations. The survey, commissioned in 2012, was conducted by an independent firm to ensure anonymity for respondents. On the whole, respondents agreed on where our focus should lie. Their responses also helped us refine aspects of the material issues that our key stakeholders were interested in, and provided input on how we could better communicate these issues.
Sembcorp embarked on reviewing and updating our materiality issues in late 2015. As part of this materiality review process, we will be undertaking a stakeholder engagement survey, and gathering input from internal and external stakeholders across our different business units globally and
at the corporate level. We will review and use
the information we gather from our stakeholders to refresh our material issues and ensure that Sembcorp continues to align our sustainability efforts with business growth. The results of this materiality review and the corresponding updates to our material issues and indicators will be presented in our 2016 report.
In 2015, we strengthened the link between risk management and sustainability at Sembcorp, by developing risk appetite statements for each of our sustainability focus areas. The risk appetite statements and associated key risk indicators set the direction and boundaries for the execution of our strategy, and provide early warning of increasing risk exposure in each focus area.
Reporting framework and scope
Our annual Sustainability Report is prepared in accordance with GRI G4 Core requirements.
It is guided by SGX Guidelines on Sustainability Reporting as well as the Ten Principles of the UN Global Compact. Our
GRI content index can be found in the sustainability section of our website.
Our report provides information on Sembcorp’s subsidiaries and covers the calendar year. It excludes joint ventures, partnerships and associates for which Sembcorp does not have management and / or operational control. As our Marine business is separately listed in Singapore and reports its activities separately, it is therefore excluded from this report. New acquisitions and subsidiaries are given one year or more upon the completion of construction or agreement to integrate their reporting systems with that of the Group. Thereafter, their sustainability data will be reported externally once a full calendar year of data is collected. Data pertaining to entities divested during the year is excluded from our report. This year, we expanded the scope of our occupational health and safety reporting to also include assets and projects under construction, with data reported from the onset of construction activities. We aim to work towards external assurance of the report.
The table below shows our reporting scope by business line and focus area.
Data measurement and quality
All data measurements are in line with GRI G4 recommendations for our chosen indicators. Greenhouse gas (GHG) emission factors are based
on the 2006 Intergovernmental Panel for Climate Change (IPCC) guidelines, except for those relating
to our operations on Teesside, UK, which use emission factors adapted from the US Environmental Protection Agency and the 2013 and 2014 Government Greenhouse Gas Conversion Factors for Company Reporting issued by the UK’s Department for Environment, Food & Rural Affairs and Department of Energy & Climate Change. Occupational health and safety indicators follow standards set out by the US National Institute for Occupational Safety and Health (NIOSH) and the International Association of Oil and Gas Producers (IOGP).
While there are inherent limitations to the accuracy of data, we seek to minimise any errors and irregularities by strengthening our internal controls.
Focus Areas and Material Issues
Sembcorp manages sustainability through five areas of focus. These focus areas are aligned with how we drive success for the Group. Under each focus area, we discuss our management approach to the relevant material issues and our performance against each issue.
MATERIAL ISSUES
Stakeholder Engagement
We recognise the importance of building relationships and communicating openly with our stakeholders.
We identified our stakeholder groups following a stakeholder mapping exercise, done in accordance with the AA1000 Stakeholder Engagement Standard by an independent consultant in 2012. Using a structured approach, stakeholders were mapped based on their level of influence and interest. The level of stakeholder interest against each material issue was also reviewed and a survey
was conducted to invite feedback on our material issues from selected key stakeholder groups.
This allowed us to understand the concerns and perspectives of our external stakeholders in relation to our material issues, in order to formulate our sustainability priorities. It also helped to guide our communication to stakeholders on our performance and progress on our material issues.
More information on the
platforms we use to regularly engage our stakeholders can be found in the Sustainability section of our website.
CASE STUDY
Working together to respond to
a drought crisis: Sembcorp Siza Water
As a result of El Niño, South Africa is facing one of its worst droughts in 30 years. The drought, which began in late 2014, has been declared a crisis by the government. Amongst the worst-hit areas in the country is the Dolphin Coast, where our municipal water business Sembcorp Siza Water operates.
As the local water provider, Sembcorp Siza Water has played a key role in managing the impact
of the drought from an early stage. When the drought hit, it became apparent that it would be impossible for the conventional water system to be fully operational. Sembcorp Siza Water worked out a drought plan with local authorities and the bulk water supplier, and rolled this out to the community through an intensive communications campaign. Through daily slots on local radio, regular updates in newspapers and on the company website, flyers and text message alerts, we educated consumers on the crisis, called for support for the drought plan and communicated tips on how to save water. We
also met key stakeholders face-to-face, including local councillors and authorities, as well as the ratepayers’ association, chamber of commerce and local business leaders, and held media interviews and briefings. The response to these measures led to the community reducing its water usage by 5,000 cubic metres per day.
In the course of engaging consumers and local councillors, the need to find innovative solutions to the water crisis was raised. Arising from this, we commissioned boreholes to augment water supply. In addition, we conducted a month-long online survey, during which 96% of consumers voted in favour of introducing recycled water
to their potable water. We then completed a facility that reclaims potable water from effluent, increasing the water supply by 4,000 cubic metres. This has been a great success, eliminating the need for water shedding in the community.
This experience demonstrates that technical expertise is only part of the solution. To change public behaviour and generate sustainable solutions, engagement and partnership with stakeholders is also key.
Economic
To deliver long-term value and growth
Why this is material
Long-term economic viability is at the core of Sembcorp’s approach to building sustainable businesses. As we build successful, sustainable businesses, societies and communities benefit. Our businesses deliver the economic engine to support industrialisation and urbanisation. Our operations
generate employment, contracts for local suppliers and tax revenues for governments and result in infrastructure development in our host communities. For more information on our contributions to communities, please refer to the Community section of this report. We drive our economic sustainability by monitoring and managing four key facets of our business: capital and portfolio management, reliability of our assets, products and services, innovation and business development for new income streams.
Capital and portfolio management
Sembcorp’s businesses often involve large-scale, long-term projects that require significant initial capital outlay. Strong financial health and a disciplined approach to investment are therefore necessary for us to succeed. At the same time, as Sembcorp continues to grow, we believe it is important for us to maintain a balanced portfolio of businesses across geographical regions and business segments, with the appropriate level of risk. Capital allocation, including the geographical distribution of our investments, is managed from this perspective.
Reliability
The reliability of our supply, assets and products
is vital not only for our reputation, but also for
our long-term profitability. Our Group is heavily invested in the Utilities business, which involves
the development and sustained operation of energy and water facilities. We are committed to long-term customer contracts and our products and services, such as power, steam, water and wastewater treatment, are essential to our customers. By investing in the proper care and maintenance of
our assets, we ensure that their useful life, and therefore their ability to generate stable recurring income and a reliable supply of products and services, is sustained throughout our long investment horizon.
Innovation
We recognise that technology and innovation
is important in maintaining and enhancing our relevance, profitability and competitive advantage. This includes applied research and development (R&D) and improvements that optimise our operations and enhance our efficiency, as well
as new technologies and methodologies that offer wider sustainability benefits.
New income streams
To deliver long-term growth, we continuously explore new business opportunities and maintain a pipeline of upcoming projects, which includes both greenfield and brownfield investments.
Positioned for Growth in the Right Businesses, in the Right Markets
As part of our strategy to ensure long-term growth, we continue to expand our operations overseas. In 2015, overseas contributions amounted to 60% of our Utilities business’ net profit excluding corporate costs and significant items.
We leveraged our strong development capabilities to grow through greenfield projects in rapidly developing economies, announcing our first energy projects in Myanmar and Bangladesh. In addition, we expanded our desalination capacity in the UAE and wind power assets in China. These projects,
when completed, will provide us with new income streams.
Our approach
Capital and portfolio management
We have robust frameworks and processes in place to ensure our investment and business decisions take into account long-term considerations.
In addition, potential acquisitions and growth opportunities are evaluated based on strict investment guidelines. Depending on criteria
such as project value and country risk, approval for projects may involve the Senior Management Committee, the board and / or its Executive or Risk Committee.
We actively manage our risk portfolio, including monitoring balance sheet liquidity ratios and country risk profiles. For more information on
risk management at Sembcorp, please refer to the
Risk Management and Internal Controls chapter.
Reliability
Reliability of our assets, products and services
The reliability of our assets is of critical importance, and is rigorously managed from the design phase through to the operation and maintenance phase. In the design and construction phases, we focus on installing sufficient operational flexibility and selecting quality equipment. In the operation and maintenance phases, regulatory and manufacturers’ standards are strictly adhered to. The reliability of our plants is further monitored through monthly performance indicators which our management oversees. Technical audits and checks are also conducted on our plants.
Product safety and compliance
Product safety is a priority in our business, as non-compliance can result in serious health, safety and operational issues for our customers, many of whom depend on us for basic utilities or require our products for their industrial processes. We implement a robust maintenance and monitoring regime, which
includes stringent inspections and the installation of meters and sensors at both our and our customers’ facilities. To ensure the safe delivery of our products, we have rigorous maintenance regimes in place and regularly inspect our delivery systems, including checking pipelines for leaks. We also conduct regular sampling and laboratory tests to meet regulatory requirements and to ensure that the water we produce is safe for our customers and end users.
Our Supply Chain
Sembcorp’s main suppliers consist of equipment manufacturers, raw material suppliers and engineering, procurement and construction (EPC) contractors.
Equipment manufacturers supply us with large-scale equipment such as gas turbines and desalination units as well as process equipment such as switchgears and control systems. Raw material suppliers supply fuel and chemicals needed to run our plants, while EPC contractors develop and construct our greenfield plants. Our plants are designed and built to have a long, productive lifespan, and it is with this perspective that we procure our equipment. We seek to ensure we procure high-quality and technologically advanced equipment that will last. We have stringent requirements for quality and therefore engage reputable suppliers who abide by global environmental, social and governance standards.
Our Group Procurement Policy provides guidelines and control principles for various stages of the procurement process.
We also recognise the importance of evaluating our suppliers to ensure supply chain risks and negative impacts are minimised. For example, our operations in Singapore carry out an annual vendor performance evaluation for our top suppliers by volume and dollar value. Through this process, we rate these suppliers on health, safety and the environment (HSE), as well as quality assurance and service level criteria. We also review their audited financial reports. In addition, for EPC contracts, contractors are
assessed based on their track record with respect to project type, size and location experience, among other criteria. We value the opportunity to positively influence our suppliers towards greater HSE awareness and social responsibility. We believe that securing a pool of suppliers that share our commitment to sustainability will mitigate risks to our operations and reputation.
Supplier diversification
Our efforts to ensure supply chain security include diversifying supply to mitigate concentration risk. In Singapore, for instance, Sembcorp’s operations maintain at least one primary and one secondary supplier for key spare parts and consumables, wherever possible.
Fuel procurement
Fuel is a significant cost component for Sembcorp’s power and steam generation operations. The security of our fuel supply is also vital to the sustained performance of our assets. In view of this, we have a Group Fuel Management department that looks into issues such as security of supply, monitoring of price fluctuations and optimisation
of fuel mix. To further diversify our fuel mix and tap sustainable sources, Sembcorp has increased our use of alternative fuels and renewables.
In Singapore, for instance, our solid waste management operations provide a reliable supply of waste wood for our woodchip boiler plant. In our biomass power plant in the UK, waste wood from sustainably-managed forests and sawmills, as well as arboricultural residues, is used as fuel.
Innovation
Sembcorp’s Technology Advisory Panel, which includes our Chairman, Group President & CEO and other invited experts, provides strategic direction for our technology and innovation programmes. The panel oversees the development and application of significant emerging technologies in the energy and water sectors and provides guidance to Sembcorp’s leadership on technological trends
and opportunities. It is supported by an in-house Group Technology department.
Headed by our Chief Technology Officer,
our Group Technology department oversees our R&D and innovation efforts. Besides tracking our investment in innovation and its corresponding returns, we also track indicators such as the number of projects screened. This ensures that we have a pipeline of innovation projects being developed and implemented in a timely manner.
To further encourage innovation from bottom up, Sembcorp’s !DEA Awards programme rewards innovative ideas and efforts across the Group. Past winning entries have included process innovations that have resulted in cost savings and improved HSE performance, as well as innovations that have led to the development of new products and services.
Our ongoing engagement with venture capitalists, technology companies and tertiary research institutes helps us keep abreast of the latest technological advancements. In looking at new technology, we prioritise innovations that address the needs of our operations, but also consider more general proposals.
Promoting Clean Technology
Sembcorp pioneered the commercial reclamation of water from treated industrial and municipal wastewater effluent in Singapore. We have established ourselves as
a trusted wastewater treatment provider in Singapore as well as in industrial clusters in China. By integrating wastewater treatment, water reclamation and water supply in a closed loop, Sembcorp helps its customers reduce their water consumption and conserve this precious resource.
Sembcorp has also established a dedicated Renewables department to pursue clean technology opportunities. In 2015, Sembcorp acquired Green Infra, a leading renewable energy company in India, and expanded its wind power capacity in Huanghua, Hebei, China.
New income streams
Sembcorp’s Group Business Development & Commercial department is structured and equipped to pursue new business opportunities with agility and focus. Dedicated teams look into growing
our businesses in both existing and new markets.
To ensure our continued growth, we identify and develop a healthy pipeline of projects. We also seek to grow through strategic partnerships with our customers, by continuously developing innovative and competitive solutions that meet their evolving needs.
We actively invest in sustainable and green business lines, which will give us an edge in an increasingly resource-scarce world. We take a disciplined approach and employ a stringent evaluation process to all our projects and investments.
Our performance
Sembcorp’s financial performance and key economic indicators can be found in our Group Financial Review chapter and Financial Statements.
As a global energy and water company with
a rich history of being driven by technology and innovation, Sembcorp hopes to contribute towards raising Singapore’s profile as a hub for applied R&D, while supporting the long-term growth of the energy and water sectors. To this end, we
have collaborated with several partners in various innovation projects. Ongoing partnerships include the Sembcorp Industrial Living Laboratory with
the Singapore Economic Development Board
and the Sembcorp-EMA Energy Technology Partnership with the Energy Market Authority (EMA) of Singapore. These projects leverage Sembcorp’s facilities for late-stage test-bedding and co-innovation of energy, water and environmental technologies, and explore the commercialisation
of R&D solutions. The investments in these multi-year projects, which include matching grants from the authorities and other partners, are worth up to S$18 million.
In 2015, we acquired Green Infra, a renewable energy company in India. This acquisition not only marked our entry into India’s renewable energy market, but also signified a major step in our strategy to grow our renewable business. In Myanmar, we were selected to develop the largest independent gas-fired power plant in the country. This project marked Sembcorp’s entry into Myanmar’s fast-growing power market. We also announced our entry into the Bangladesh power market and expanded our renewable energy business in Huanghua, China, with the development of two wind farms.
A strong push for innovation, coupled with a keen pursuit of growth opportunities, puts Sembcorp in an excellent position to build a strong future.
Going forward
The Group will maintain a disciplined approach to managing its financial position and portfolio. We will continue to deepen our asset management as well as business development and commercial capabilities, optimise plant performance and grow our asset portfolio for a greater recurring income base.
We will continue to identify and develop new and innovative technologies and leverage investments made for technologies relevant to our business. In addition, we will build on our culture of innovation through the recognition and implementation of !DEA Awards projects and other innovation proposals. In the near future, we expect to implement further phases
of the Virtual Brain predictive maintenance and optimisation project and develop it for application to other water treatment processes. We will also continue to engage our partners in our ongoing projects, while scanning the landscape for more innovation opportunities.
Governance, Risk and Compliance
To maintain high standards of behaviour and integrity and be best in class for governance practices
Why this is material
Governance and ethical business
Responsible business conduct ensures the long-term viability of our businesses and builds trust
and confidence with our stakeholders. We commit to high standards of behaviour and integrity in everything we do, and comply with all laws and regulations wherever we operate. We believe in conducting our business legally, fairly, honestly and with integrity, and expect the same of those with whom we do business. Sembcorp has zero tolerance for fraud, bribery and corruption.
Risk and regulatory compliance
Risk management is an integral part of Sembcorp’s approach to operating sustainably. As we continue to grow and expand our global footprint, we are inadvertently exposed to diverse risks, such as political and regulatory, market, competition, supply chain, human resources, project and cost management risks, environmental and social risks, as well as the risk of possible fraud, corruption and bribery.
Besides helping to preserve our bottom line by reducing the likelihood and impact of potential losses, risk management provides a common basis on which to evaluate new business opportunities. It also assures our board and shareholders that key enterprise and business risks faced by the organisation have been identified, assessed and managed with appropriate risk mitigation and controls.
Sembcorp is committed to a high standard
of regulatory compliance. Non-compliance with applicable laws and regulations may subject us to statutory and regulatory fines, resulting in material litigation. It may also affect our reputation, financials and licence to operate.
Communicating Our Code of Business Conduct Through Electronic Learning
The Sembcorp Code of Business Conduct expresses the high standards of behaviour and integrity expected from our employees worldwide.
An e-learning course in multiple languages was launched globally to further communicate our Code of Business Conduct and help employees better understand its requirements, guiding principles and application in their daily course of work.
Our approach
Governance and ethical business
Sembcorp is led by an effective board mainly comprising of independent non-executive directors. The board is collectively responsible for the long-term success of the Group. Part of its role is to ensure that the Group’s internal control and risk management systems are adequate and effective, and that our obligations to key stakeholders are understood and met. Several board committees, including the board’s Risk Committee, have been established with clearly written terms of reference, both to assist the board in fulfilling its responsibilities, and to provide an independent oversight of management. The board’s Risk Committee has oversight of our Fraud Risk Management and Anti-Bribery and Corruption Policy.
Sembcorp complies with the Code of Corporate Governance 2012 issued by the Monetary Authority of Singapore, and reports our governance processes and activities with reference to the principles set out in it.
In addition, Sembcorp’s core values of
Insight, Integral and
Integrity define our approach to sustainable growth and form the foundation
of Sembcorp’s Business Principles and Code of Business Conduct (CBC). Employees are required
to comply with the requirements of the CBC, which addresses Sembcorp’s stance in the following areas:
Providing a fair, equitable workplace environment that is free from harassment
Corruption and bribery
Money laundering
Political contributions
Contributing to communities
Health, safety and the environment
Requirements of the CBC are communicated
to employees globally through an e-learning course delivered in multiple languages. The CBC is also published on our website. Employees are required to acknowledge that they agree to abide by its principles and requirements and promptly report any violation through available reporting channels. Suppliers and contractors who work with Sembcorp
are expected to respect and follow the CBC as well.
The standards of our CBC are also applied in our approach towards tax risk management. It is our policy to:
Observe compliance with relevant taxation laws and regulations and other regulatory disclosure requirements
Apply diligent professional care and judgement to arrive at well-reasoned recommendations, supplemented by advance rulings from tax authorities, written advice and confirmation from external tax advisors / experts, as appropriate
Ensure that all decisions are taken at an appropriate level and supported by a business purpose / commercial rationale and the appropriate documentation
Establish and maintain adequate documentation of the Group’s tax risk evaluation and tax risk management, and update the Group’s tax risk management policies including internal controls, as and when appropriate
Develop and foster good and respectful professional relationships with all tax authorities, government bodies and other related third parties
Risk and regulatory compliance
Risk management and system of internal controls
Sembcorp actively equips our management with tools to manage and control any risks associated with our existing business activities and investment decisions.
We also closely monitor key risk indicators as part of the requirements of our Risk Appetite Framework.
Our enterprise risk management (ERM) framework and GAF are aligned with best practice standards such as ISO31000 and standards issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
The Group’s risks and monitoring of internal controls are managed through:
Periodic review and reporting of corporate and operational risks and controls through detailed risk and controls registers
Review of major occurrences, key risk areas and significant control lapses at business unit management meetings and risk management committee meetings
Risk assessments at the investment appraisal and due diligence stages
Monitoring of key risks and control lapses through a quarterly governance assurance certification submission
An internal controls policy and manual have also been established to provide a clear framework for what constitutes an effective and adequate system of internal controls. They also provide guidelines on the appropriate segregation of duties and a checklist of recommended internal controls for
our business units to put in place.
Internal audits are regularly performed based on
an approved audit work plan, and cover high-risk areas such as possible fraud, bribery and corruption.
Emergency response plans are in place and crisis simulation exercises are conducted to ensure that we are adequately prepared for foreseeable emergencies. This is to ensure that in the event of an emergency, we are better able to handle the crisis and can minimise any negative impacts.
For more information on Sembcorp’s governance and risk management systems, please refer to our
Corporate Governance Statement and
Risk Management and Internal Controls chapter.
Training and performance management
The Group provides awareness training and
workshops on ERM, GAF, as well as fraud risk
management and business continuity management
on a periodic basis. Desktop exercises and simulation
for crisis management, emergency response drills and
business continuity exercises are also conducted
regularly to validate and fine-tune our procedures
and plans and improve our preparedness.
In order to enhance corporate governance
and risk management excellence at Sembcorp,
key risk and governance performance indicators
have been identified and incorporated as part
of the remuneration requirements for senior
management. For more details on senior
management remuneration and reward, please
refer to our
Corporate Governance Statement.
Our performance
Through the successful global roll-out of two
e-learning courses on anti-bribery, corruption
and the CBC, we continued to emphasise
the importance of fraud risk management and
measures to guard against the risk of bribery and
corruption in our business. Employees are required
to pass a test to affirm their knowledge and
understanding of the subject. They are also required
to acknowledge that they agree to abide by the
principles and the requirements of the CBC. We
continued to communicate our zero tolerance for
fraud, bribery and corruption to our employees and
engage them on our whistle-blowing policy and
guidelines through fraud awareness workshops with
updated case studies and training sessions.
Sembcorp received the Most Transparent
Company Award in the oil and gas category at the
Securities Investors Association (Singapore) Investors’
Choice Awards 2015. We were also ranked sixth in
the 2015 edition of the Governance & Transparency
Index, a well-respected index assessing the
transparency of 639 Singapore-listed companies.
Two significant incidents resulting in fines
amounting to S$109,000 were incurred by
our operations in Chile for non-compliance to
water quality and discharge standards. Additional
treatment plants as well as facility enhancements
have been installed to ensure non-recurrence.
Our operations in Singapore incurred a penalty
of S$50,000 due to an unsuccessful gas turbine
fuel changeover.
As part of our ongoing effort to build in-house
capabilities, readiness and resilience to crisis and
emergency response situations, we have conducted
regular crisis simulation exercises and awareness
trainings. Notably, we successfully conducted an
exercise simulating a raw water contamination
incident at our Fuzhou municipal water operations.
This exercise was conducted in partnership with
the local authorities, and received media coverage
highlighting Sembcorp and the local government’s
resolve in being prepared for such incidents.
In Singapore, we also successfully conducted a
crisis preparedness exercise simulating a pipeline
leakage and used our incident management system
to monitor the incident remotely from the crisis
command centre. The exercise included involvement
of the Singapore Civil Defence Force and a customer
that would be affected by such an incident.
Going forward
We understand that the pursuit of excellence in
corporate governance and risk management is a
continuous journey. Hence, we will continue to strengthen our frameworks and policies to align
them with industry best practice. To build a
positive risk and governance culture, we will
continue to communicate and engage our
employees and stakeholders through continuous
awareness workshops and training sessions.
We will also provide the right systems and
tools to enhance the risk management and
governance process.
People
To provide a fair, diverse and inclusive
workplace, and continually improve
our human resource management and
people development
Why this is material
Our employees play a vital role in ensuring
we achieve our business strategy and goals.
Of the issues relating to our people, such as fair
employment, labour relations and human rights,
we have identified people development to be
the most material.
People development
To be a high-performance organisation, it is crucial
to develop a competent, capable and motivated
workforce that can meet the business challenges
of today and tomorrow.
The nature of our business is such that we require
specialist technical expertise. However, some of the
markets in which we operate lack a qualified labour
force with the necessary technical skill sets that our
business demands. In other markets, these skill sets
are highly sought after across several industries. In
addition, the commercial and regulatory environment
we operate in is also becoming increasingly complex.
Therefore, there is a critical need to attract, retain
and develop competent employees who possess
a deep understanding of the company and its
industry sectors.
Developing Capabilities for the Future
To meet the demands of our growing business,
specialised training programmes were
organised in different countries and operations
to ensure a pipeline of qualified employees
who demonstrate both core and functional
competencies. For instance, in Andhra Pradesh,
India, more than 160 graduates of local
engineering colleges have been admitted to
our training programme since 2013. This
programme is equivalent to a postgraduate
diploma course in thermal power plant
engineering, and is offered free of charge. After
the course, suitable participants are recruited
for full-time positions at our power plant. In
China, the general managers of our operations
underwent training which covered our core
competency framework, business conduct,
internal audit procedures, as well as operational
case studies. In Singapore, executives attended
renewable energy teach-ins to increase depth
of knowledge in that area.
Our approach
Human resource policies and management
The Senior Management Committee, supported
by the Group Human Resources department,
is responsible for setting key policies relating to
our employees.
Country-specific human resource policies, as
well as all other company policies and guidelines,
are available and accessible to employees on
our intranet.
We stay abreast of the latest developments
and best practice for human resource management
through our membership and participation in
external organisations such as the Singapore
National Employers Federation, the Temasek Human
Resource Council and The Conference Board,
as well as numerous local roundtable groups.
Further details on our approach and initiatives
on labour relations, remuneration and employee
welfare and engagement can be found in the
People
portion of the Sustainability section of our website.
Human rights and labour relations
The Group is committed to uphold and respect
the spirit of the UN Universal Declaration of Human
Rights and the International Labour Organisation’s
Declaration on Fundamental Principles and Rights
at Work. We fully support the UN Global Compact
principles on human rights and labour, and abide by
the Employers’ Pledge of Fair Employment Practices
under Singapore’s Tripartite Alliance for Fair and
Progressive Employment Practices. Our CBC sets out
our stand on fairness, opportunity, non-discrimination,
dignity, respect and harassment. We do not hire
forced or child labour, and comply with local
regulations restricting forced or child labour wherever
we operate. While our operations span five continents
where labour laws, regulations and practices differ
widely, we remain committed to high standards of
human resource management globally. We abide by
local laws wherever we operate, including meeting or
exceeding minimum wage requirements where such
requirements exist. Examples of other regulations our
global operations comply with include the Broadbased
Black Economic Empowerment Amendment
Act 2013 in South Africa, and localisation
requirements at our operations in Oman and the UAE.
We recognise the value and benefit of mutual
discussion. Our grievance handling policy seeks
to manage employee grievances in a fair and
reasonable manner, with an escalation path to the
Group President & CEO where necessary. We seek
to maintain good labour management relations, and
hold constructive ongoing exchanges with employee
unions in our various operations. All Sembcorp
employees are entitled to practise freedom of
association and to be covered by collective
agreements in the workplace, within the regulatory
boundaries of each of the jurisdictions in which we
operate. In countries where our operations are
covered by collective agreements, procedures for
grievance handling are specified in the agreements.
People development
People development is driven at the board level by
the Executive Resource & Compensation Committee.
Our “My Career Journey @ Sembcorp”
programme guides the identification, development
and deployment of employees across the organisation.
The programme encompasses three aspects:
- Strategic workforce planning
- Competency framework
- Development journeys
The framework aligns the development of the
organisation and the individuals within it, addressing
both organisational needs and employee aspirations.
Employee learning and development
Employees at Sembcorp are empowered to be
responsible for their learning and development,
supported by their supervisors.
Our engineers and technicians receive up-to-date
technical training by experts. All employees are also
encouraged to attend relevant professional courses.
We offer our employees the opportunity to
develop their careers and gain international
exposure through job rotations and attachments
in different cultural and operational settings. We
currently have more than 50 employees of different
nationalities seconded from our Singapore offices
to various overseas operations. We also provide
internships and industrial attachments that offer
students and Sembcorp scholars practical experience
and exposure to our operations.
We support our employees in their pursuit
of continuous improvement and sponsor selected
employees who wish to pursue higher qualifications
in fields relevant to their work. To develop our
leaders, we sponsor senior executives’ enrolment in
programmes at leading institutes such as Harvard
Business School, The University of Pennsylvania
Wharton School, INSEAD and Temasek’s Business
Leadership Centre. Sembcorp scholarships are also
offered to promising students at various tertiary
institutions. Once they graduate, a comprehensive
development plan is mapped out to groom them
for management positions.
As a leader in our industry sectors, Sembcorp
encourages our employees to share and exchange
best practices through seminars, roadshows and
local and international conferences.
Developing local capability
We believe in recruiting, grooming and retaining
local talent as a long-term investment in our future
and an integral part of our strategy for our overseas
operations. This leads to knowledge transfer and
capability development in the local community.
Localisation is an important part of our strategy
to grow our overseas projects sustainably. We aim
to progressively localise the workforce at our
overseas operations across all positions, including
management positions, in line with each
jurisdiction’s regulatory and operating environment.
When we begin operating in a new market,
employees who are seconded from our head office
to start up the operations are given a clear
responsibility to develop local talent. As the
capabilities of local employees grow, the team is
gradually localised, and the number of expatriates
seconded from head office progressively reduced.
All employees across the Group are offered the
same development opportunities. At our overseas
operations, local employees are also encouraged to
develop their professional and managerial skills
through international exposure, such as on-the-job
training in Singapore or at other Sembcorp
operations around the world.
Performance appraisals
All employees undergo half-yearly performance
appraisals, where performance, expectations,
training needs and targets for the coming year are
discussed and agreed upon by the employee and
supervisor. An assessment of core competencies and
areas for improvement is embedded in the appraisal
format. Going through the appraisal process helps
us inculcate our core values in every employee, and
clearly articulate the competencies and functional
skills needed for their development.
Our performance
The continued implementation of our competency
framework and the enhancement of our learning
and development framework were our main areas of
focus in 2015. We revamped our approach towards
learning and development, with a focus on engaging
internal stakeholders to ascertain the learning and
development needs across the business. Through
this process, we developed our learning model and
framework and documented methods of learning.
These will form the basis for the implementation of
our learning management system (LMS). This system
was launched in late 2015 with initial e-learning
courses on our CBC, as well as on anti-bribery and
corruption awareness.
We embarked on a review of our global
employee health benefit packages, and aim to
work towards harmonising our employee health
benefit entitlements globally. This ensures that
our health benefits are transparent and consistent
across the Group.
We remain committed to meeting localisation
targets and to training local talent at our overseas
operations. In 2015, our operations in Singapore
hosted 30 student interns from Singapore as well as
China, India, Oman, Chile, Indonesia and Australia.
Going forward
A study was commissioned in 2015 to harmonise
our employee health benefit (EHB) programme
globally. We aim to execute country specific EHB
programmes in 2016. We will continue to roll out
more e-learning courses while promoting greater
availability and use of the LMS throughout the
organisation. We will participate in the new Industry Mentors’ Network Programme organised by the
Ministry of Education. As part of this initiative,
students from polytechnics in Singapore will be
matched with mentors from Sembcorp, who will
provide advice on career goals. The students will
also have the opportunity to shadow their mentors
at work or networking functions.
Health, Safety and the Environment
To instil sound and practical health
and safety management as part of
our workplace culture, and protect the
environment in our business activities,
products and services through good
environmental practices
Health, safety and the environment (HSE) is
a top priority at Sembcorp and an area in which
we are committed to continuous improvement. We
recognise the importance of incident investigation,
and set aside resources to ensure that all incidents
are thoroughly investigated, corrective actions are
implemented and any areas of improvement are
shared across the organisation.
Why this is material
Occupational health and safety
It is important to us that occupational health
and safety is stringently managed. As a global
developer, owner and operator of power and water
plants, we recognise our responsibility in ensuring
that all workers and contractors are competent and
equipped to work in the safest way possible. Many
of our plants are in developing economies and it is
often a challenge to build a local workforce that is
attuned to our global health and safety standards.
By effectively and proactively managing work-related
hazards, we minimise health and safety-related
incidents wherever we operate and protect
our workforce, including staff of our contractors.
Climate change
We recognise the threat that climate change
represents to the planet and the impact this would
have on our businesses. The 2015 United Nations
Climate Change Conference reflected the
commitment of governments to reduce global
warming. Hence, to mitigate potential regulatory,
physical and supply risks, we adhere to and
support common policy positions adopted by
governments on climate change. We also keep
abreast of the wider body of academic and
institutional research on the subject.
By employing innovative technology and
renewable resources, we provide competitive and
reliable energy and water solutions to customers
and communities, while mitigating the impact of
our activities on climate change.
Environmental protection
Sembcorp recognises its duty to protect the
environment and conserve resources. Since our
utilities businesses consume natural resources
directly, it is here that our responsible stewardship
can have the greatest impact.
Increasing Our Renewable Energy Portfolio
As part of our strategy to maintain a balanced
portfolio, we grew our renewable energy
assets in 2015 with the acquisition of a leading
renewable energy company in India present
across six states, and expanded our wind farms
in China. Today, we have 918 megawatts of
wind and solar power in operation and in
development in India, and 544 megawatts
of wind power in China.
Our approach
HSE policy and guidelines
The Group’s HSE department establishes key HSE
operating philosophy and standards, including
benchmarks and key performance indicators to
drive improvements across Sembcorp’s global sites.
It works closely with regional HSE coordinators to
ensure that issues across the Group are managed
in an effective and timely manner. Our Group
HSE Policy articulates our commitment to our
stakeholders with respect to health, safety and
the environment.
Our Group HSE Guidelines are part of a broader
HSE management system, which establishes tools
and requirements to monitor and report HSE
indicators based on Sembcorp’s “four zero” (4/0)
targets. The 4/0 targets are: zero harm to people,
zero damage to the environment, zero damage to
assets and zero instances of non-compliance with
legal and regulatory requirements. Our board’s Risk
Committee reviews our HSE performance quarterly.
We are committed to meeting or exceeding our
regulatory obligations as well as the HSE standards
and certifications we subscribe to. For a list of the certifications achieved by Sembcorp’s businesses,
please refer to the Awards, Memberships and
Certifications portion of the Sustainability
section of our website.
In addition, we believe in actively engaging
both internal and external stakeholders to help
keep our workplace and environment safe.
Training and audits
Providing our employees with relevant training
ensures that we have a competent team that
works safely. Specific training needs are identified
and customised based on job requirements.
Once a year, the Group HSE department
organises a workshop for HSE officers from
various global sites to keep them abreast of
corporate initiatives. The workshop is also aimed at
encouraging and facilitating the exchange of ideas
and best practices across our global operations. This
annual event provides a platform for the planning
of group-level HSE goals and initiatives, and allows
participants to learn from their colleagues.
HSE assurance audits are conducted regularly to
review key internal controls and ensure compliance
with regulatory and corporate requirements. Our
assurance process is supported by a validation and
on-site verification process which involves in-depth
examination of the site’s HSE Management System
and its implementation. To further enhance our
performance in this area, we leverage expertise
across business units, and weave training and peer
assistance elements into an assurance programme
to promote good practices across the Group.
Occupational health and safety
We actively monitor and manage the risks associated
with our activities and services, including those at
assets that are still under construction, to prevent and
reduce workplace injuries and occupational illnesses.
Our approach towards managing health and safety
risks is to strive to eliminate any risks that we identify.
Our health and safety framework is anchored
by Sembcorp’s 10 Elements for Good HSE.
Each element is linked to a set of expectations
and standards, with emphasis on effective risk
management and good planning for safe
operations and construction. For example, the
setting up of a Safe Operation Committee is a
mandatory requirement at all our operations and
projects. This is to ensure that adequate review
and assessment of risks and controls for critical
activities is conducted prior to approval being
granted to carry out the work.
Every year, the Group HSE department sets
and drives the year’s objectives and targets based
on a performance gap analysis to improve on
areas of weakness.
Project and asset life cycle risk assessment and
injury prevention
Integrating HSE considerations into all phases of
our operations demonstrates our commitment to
proactive HSE management. The asset life cycle
assessment approach is embedded in our project
conceptualisation phase, development and
construction phase, as well as operation phase.
Project due diligence studies provide a good
understanding of the potential impact of our
operations and allow the most appropriate solutions
to be applied in order to prevent or reduce the
likelihood of incident occurrence. For example,
hazard and operability studies during the design
and construction stages identify potential risks, legal
requirements and safety considerations. Final design
and construction activities are organised to avoid
or minimise the impact of the risks identified.
We seek to ensure that operation and process
controls are implemented to prevent harm to
people and the environment.
Climate change
The quest for greater energy efficiency presents
both cost and opportunities for Sembcorp.
We recognise that investing in energy-efficient,
renewable and low-carbon technologies not only
helps manage emissions, but also makes business
sense. We are committed to setting achievable
energy efficiency and renewable energy targets,
and developing strategies to mitigate the impact
of our operations on the environment.
We take a four-pronged approach to this issue:
- Maintaining a diversified energy generation
portfolio
- Growing our renewable energy business as
part of a balanced portfolio
- Maintaining and building efficient energy
and water facilities
- Actively engaging stakeholders
Environmental protection
At Sembcorp, we aim to ensure compliance to
environmental regulations and adequate resource
allocation for the maintenance of environmental
quality wherever we operate.
We conduct environmental studies in
accordance with national and / or international
standards and methodologies for new projects and
major expansions. These include environmental
impact assessments, environmental baseline studies,
and pollution control studies. Recommendations
from the assessments form part of our management
of HSE risks and these recommendations
are incorporated into the planning, design,
construction and commissioning of new plants.
Atmospheric emissions
Our approach to managing atmospheric emissions is
through reducing fuel consumption and increasing
energy efficiency. We adhere to local regulatory
emission limits and aim to minimise our impact on
the environment and the surrounding community.
Water
We apply integrated water and wastewater
management solutions for better efficiency
and resource use. For example, by integrating
wastewater treatment, water reclamation and water
supply in a closed loop, we help our customers
reduce their water consumption and conserve this
precious resource. We bring the same expertise to
our own operations so as to consume water
responsibly and efficiently.
We treat wastewater in the most effective and
energy-efficient manner. With our strong technical
expertise, we tailor the treatment process and
technical configuration based on the expected
wastewater profile. Treatment processes applied
include mechanical, chemical, biological or
membrane technologies, or a combination of these.
Sembcorp is able to effectively treat multiple
streams of industrial wastewater with wide-ranging
chemical oxygen demand and salinity to meet
effluent discharge standards. Our comprehensive
water sampling and testing regime ensures
consistent compliance with such standards. Treated
effluent from our wastewater treatment facilities
may be further treated to produce demineralised
water at our water reclamation facilities.
Our large-scale water reuse and seawater
desalination facilities offer high-quality water to
industries and households in water-scarce areas
such as the UAE and Oman.
Waste and spills
We apply stringent controls in the management of
waste generated from our operations. We adhere
to discharge and emission limits set by local
authorities, and implement containment measures
to minimise any direct impact to the environment,
vegetation and the surrounding community.
All waste generated by our operations or
collected by us on behalf of our customers is
disposed of in accordance with local regulations.
In the event that an emergency occurs from, for
example, a major spillage or hazard at our industrial
facilities, we will immediately activate emergency
response plans that have been put in place.
Sembcorp also actively develops its capabilities
to recover energy from waste. For example, at our
Sembcorp Woodchip Boiler Plant in Singapore,
woodchips processed from waste wood collected by
our solid waste management operations are used to
produce economical and renewable steam. This
way, we are able to manage the entire energy-from-waste
value chain and take advantage of the
synergies between our energy and solid waste
management businesses.
Our performance
This year, we expanded the scope of our
occupational health and safety reporting to
include assets and projects under construction.
These projects are generally undertaken by our contractors and sub-contractors. In recognising
that we have a responsibility as developers of
any project, we aim to promote health and safety
amongst all companies and individuals within
our sphere of influence. We believe that this
commitment will become increasingly important
as we strengthen our presence in emerging
markets, where local health and safety regulations
and enforcement may not be as mature as in
developed countries.
Our health and safety performance charts reflect
group-wide performance and cover both assets
in operation and under construction. A detailed
breakdown of health and safety data is available
on our website. We also adopted NIOSH and IOGP
standards in our health and safety reporting, as
part of our efforts to adopt best practice.
As our operations expanded in 2015, we
continued to strengthen health and safety
management and made process improvements.
Key initiatives included:
Strengthening ownership of HSE by all
employees across all levels of seniority
Focusing on mitigating risk for critical activities
with high potential for serious consequences
Enforcing compliance to safety requirements
and expectations
Promoting active engagement of on-site staff,
including those employed by our contractors
It is with great regret that we report three
fatalities in 2015. One fatality was the result of a
vehicular accident involving our employee in
Mbombela, South Africa. The other two fatalities
respectively resulted from a fall from height at
the site of our Thermal Powertech Corporation
India facility in India and a forklift accident at a
construction site in Singapore where our design
and construction business was carrying out work.
Every incident was investigated thoroughly to
identify root causes and the necessary corrective
actions have been taken.
We remain committed to ensuring the efficiency
of our operations while optimising the use of
resources. In 2015, we grew our renewable energy
capacity with the acquisition of Green Infra,
a leading renewable energy company in India,
and new wind farm capacity in Huanghua,
Hebei province, China.
Our nitrogen oxide (NO
x) emissions amounted
to 3,700 tonnes, sulphur oxide (SO
x) emissions
amounted to 800 tonnes and particulate matter
(PM) emissions amounted to 200 tonnes in 2015.
Going forward
As Sembcorp continues to grow its businesses and
footprint globally, we expect more challenges ahead
in the management of on-site HSE.
In 2016, we will concentrate on strengthening
the foundations of our HSE management based on
the key themes of:
Visible HSE leadership
Project HSE management
Management of critical risks with Life-saving
Rules and Safe Operations Committees
Promoting active engagement within sites
and with all stakeholders
Specific programmes tailored around these
key themes have been implemented progressively
across our global sites. We will continue to build
upon these foundations in response to the
challenges ahead. We believe that the application
of validation and verification will be the key to
continuous improvement. Therefore, our internal
validation and verification peer assist programme
will be instrumental in the compliance and
continuous improvement in HSE management.
Community
To be a responsible business, making a
positive contribution to our communities
Why this is material
Community integration
Sembcorp provides solutions that are essential to
everyday life. We view our integration with, support
of and contribution to our host communities as part
of our licence to operate. We are committed to
assessing and responsibly managing our impact on
our local communities, as well as investing in them.
Sembcorp Gives Back Day:
Celebrating the 20th Anniversary
of our Utilities Business
At Sembcorp, we recognise that our success
is made possible by the trust that our
communities place in us. This year, we
marked the 20
th anniversary of our Utilities
business on August 12 in a meaningful way,
with Sembcorp Gives Back Day.
As part of this global initiative in aid of our
communities, employees in more than 10
countries, including Singapore, China, India,
Vietnam, Oman, UAE, South Africa, UK, Chile,
Panama and Antigua, volunteered their time
and participated in activities in support of local
worthy causes. These activities included helping
out at hospices, orphanages and old folks’
homes, installing or repairing facilities to
provide drinking water for the local community,
improving shower and sanitation facilities at
schools, and cleaning up local beaches.
Our approach
The needs of one community can be very different
from those of the next. It is our belief that our
local operations are best placed to not only understand these different needs but also to forge
the necessary partnerships with relevant local
stakeholders to address them. Therefore, while the
Group provides the strategic framework, tools and
guidelines to ensure consistency and acceptable
standards, community integration is managed at
the local level.
Our business grows through the development
or acquisition of utilities assets. In the development
of greenfield plants, we recognise that there is
often a social and environmental impact on the
communities around us. Therefore, environmental
and social impact studies are carried out in
accordance with both international and national
standards for major new projects and expansions.
These studies typically include social management
plans that are implemented by the operations
teams through the various stages of the
site’s development.
Sembcorp’s global corporate social responsibility
(CSR) framework provides a strategic and consistent
approach for our charitable contributions and
community investments. We focus on fostering
environmental stewardship and improving the
quality of life of the communities we are in.
Our CSR framework aligns the tracking and
reporting of our community contributions with
guidelines set by the London Benchmarking Group.
This allows us to account for our total community
giving – or the amount disbursed through
sponsorships or donations – using standard
definitions and valuations, and helps us ensure
that the contributions recorded are meaningfully
spent on community investment activities.
We encourage open communication with the
communities we operate in. At our local sites, we
use various communication platforms, including
community liaison panels and meetings, as well as
telephone and email exchanges, to connect with
our communities.
Key programmes
The Sembcorp Water Initiative
In many of the emerging markets which we have
recently entered, communities surrounding our
sites lack access to clean water. The Sembcorp
Water Initiative was established in 2013 to address
this problem. Under the initiative, we work with
local authorities to implement solutions or facilities
to improve access to water for communities in the
immediate vicinity of our operations. To date, the
Sembcorp Water Initiative has been launched for
communities in Quang Ngai and Nghe An in
Vietnam, where we are developing urban
development and power projects, as well as in
Andhra Pradesh in India, where we have two
power projects. So far, this initiative has benefited
more than 23,000 people.
The Sembcorp Garden City Fund
The Sembcorp Garden City Fund was established
in 2010 to support the conservation of Singapore’s
natural heritage. Through the fund, we have
sponsored the establishment of the Sembcorp
Forest of Giants, a living gallery of rare giant tree
species under threat. The fund has also supported public green education programmes such as the
Festival of Biodiversity. In celebration of Singapore’s
golden jubilee in 2015, Sembcorp pledged
S$10 million through the fund to expand and
enhance the Cool House at the Singapore Botanic
Gardens’ National Orchid Garden. This is a
temperature-controlled glasshouse where visitors
can view rare and beautiful orchids from Asia,
the Americas and Africa.
The Sembcorp Water Technology Prize and the
Sembcorp-EMA Energy Challenge
Established in 2010 and 2014 respectively, these
competitions give young people exposure to the
water and energy challenges faced by countries
and governments, and aim to inspire bright young
minds to consider a career in the water and energy
industries. The Sembcorp Water Technology Prize is
an annual competition co-organised with Singapore’s
national water agency PUB for secondary school and
junior college students, while the Sembcorp-EMA
Energy Challenge is co-organised by Sembcorp and
the EMA for students from institutes of technical
education, polytechnics and universities.
Sembcorp Gives Back
Sembcorp’s operations all over the world actively
contribute to a range of causes, whether in cash,
in kind or through lending its employees’ time
and expertise. Sembcorp encourages employee
volunteerism by organising regular volunteering
events and by giving volunteers time off from
work to help out with local worthy causes.
Our performance
In 2015, Sembcorp and Sembcorp Marine
contributed a total of S$7.1 million to charities
and community investments globally. Excluding
Sembcorp Marine’s contribution, S$3.3 million in
cash and in-kind donations was contributed by
Sembcorp, of which S$19,700 comprised mandatory contributions. These contributions supported
causes such as youth development, environmental
and water conservation education, as well as
apprenticeships and job training programmes.
Total volunteer man-hours amounted to more than
9,200 hours, of which 16% were spent outside
of working hours due to event requirements.
We continued to work on improving internal
guidelines and controls with regard to community
and social impact. We established our Group
stakeholder and community engagement policy
as well as our community grievance management policy to ensure that our businesses, especially those
at project development stage, adopt a structured
process to engage stakeholders within their
communities and ensure grievances are addressed.
In 2015, 89% of our operations had local
community engagement and / or development
programmes.
Going forward
In line with our focus on managing community
and social impact responsibly, we aim to enhance
our internal processes with an environmental and
social investment framework. This framework
aims to embed environmental and social impact
considerations at the onset of projects during
the investment approval process. By highlighting
potential environmental or social impacts, this will
help mitigate impact and support integration with
our communities, while ensuring that obligations
to our communities, partners and capital providers
are met.
