Embed Size (px)
Citation preview
1
2020 PERFORMANCE DATA AND COMMENTARY www.sembcorp.com
ENVIRONMENTAL
Material Issue – Climate Change
ALL ENVIRONMENTAL INDICATORS
We continued to build our renewable energy business, in line with our aim to reduce our greenhouse gas (GHG) emissions intensity and move towards a balanced portfolio of low-carbon assets:
• We grew our gross renewables capacity comprising wind, solar and energy storage assets to 3,218MW from 2,721MW at the end of 2019
• We improved our CDP Climate Change score from B- to B
• We climbed 10 places and ranked 50th in the Top 100 Green Utilities Report by Energy Intelligence
• We also placed 13th in the Top Power Generators Ranked by Renewables Capacity by Energy Intelligence
The data in this document is presented in accordance with the GRI standards: Core option, and the relevant GRI Standards topic and indicator is specified. In 2020, we revised our disclosures for Waste Indicators to begin aligning with the updated 2020 GRI Standards on Waste.
PricewaterhouseCoopers LLP undertook a limited assurance engagement in respect of selected sustainability information in this document, a subset of which is presented in our 2020 Sustainability Report that appears in our 2020 Annual Report.
2
Disclosure 305-1: Direct (Scope 1) GHG emissions Disclosure 305-2: Energy indirect (Scope 2) GHG emissionsDisclosure 305-3: Other indirect (Scope 3) GHG emissions Disclosure 305-4: GHG emissions intensityDisclosure 305-7: Nitrogen oxides (NOx ), sulfur oxides (SOx ), and other significant air emissions
GRI 305 Emissions 2016
1 The GHG and biogenic emissions data is reported using an equity share approach. The atmospheric emissions data is reported using an operational control approach2 Emission factors used are from:
i. Baseline Emission Factors of China's Regional Power Gridii. Central Electricity Authority of India iii. Energy Market Authority, Singaporeiv. Guidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions by Chinese Chemical Manufacturersv. IPCC Fifth Assessment Report (Global Warming Potential factors with 100-year time horizon)vi. IPCC Guidelines for National Greenhouse Gas Inventories for 2006vii. UK Government GHG Conversion Factors for Company Reporting 2020
3 Direct (Scope 1) emissions include entities that produce GHGs from the combustion of fossil fuels combustion in our energy, water, waste management and Urban business’ assets, with the exception of 2018 data that excludes the Urban business. It excludes emissions from our anaerobic wastewater treatment plants, chemical waste, and maintenance and servicing equipment. Only CO2 , CH4 , N2O and SF6 emissions are included in the calculation of direct emissions
4 Energy Indirect (Scope 2) GHG emissions include location-based data for all energy, water, waste management and Urban business’ assets, with the exception of 2018 data that excludes the Urban business. In Singapore our operations purchase energy from our own assets; to avoid double counting, the emissions resulting from these have been accounted for under Scope 1 emissions. CO2 , CH4 and N2O emissions are included in the calculation of indirect emissions, except for India where their grid emission factor only takes into account CO2
5 Indirect (Scope 3) GHG emissions include our fuel and energy related activities (Category 3) and use of sold products (Category 11), i.e. our Natural Gas retail business activities. Both of these categories are most material and relevant to our business. We started to account for Scope 3 GHG emissions from 2019
6 Biogenic emissions from the combustion of biomass are reported separately, in accordance with GRI Standards7 Our GHG emissions intensity includes both Scope 1 and 2 emissionsr Indicates restated figure* Measurement units: ktCO2e: kilotonnes of carbon dioxide equivalent ktCO2: kilotonnes of carbon dioxide
Our GHG emissions intensity was 0.54 tonnes of carbon dioxide equivalent per megawatt hour (tCO2e/MWh) compared to 0.55 tCO2e/MWh in 2019. The slight decrease in emissions intensity was due to an increase in renewable energy generation. Scope 3 GHG emissions increased by 16% to 9.7 million tCO2e from 8.3 million tCO2e due to an increase in our stake in the gas business.
Our Emissions Profile1
2019
25,851.3r
304.8r
8,344.2
4,533.5
3,810.7
620.3r
30.6
74.6
2.5
N.A
N.A
0.55r
2020
26,303.5
224.8
9,673.4
4,432.3
5,241.1
518.1
28.9
65.9
2.6
2.6
0.001
0.54
2018
23,672.5r
255.2r
N.A
N.A
N.A
446.7
41.1
80.0
2.7
N.A
N.A
0.56r
GHG emissions (absolute)2 (ktCO2e)
Scope 1 emissions3
Scope 2 emissions4
Scope 3 emissions (Total)5
a) Scope 3 - Category 3: Fuel and energy related activities
b) Scope 3 - Category 11: Use of sold products
Biogenic emissions (absolute) (ktCO2)
Biogenic emissions6
Atmospheric emissions (absolute) (kt)
Nitrogen oxides (NOx )
Sulfur oxides (SOx )
Particulate matter (PM)
Non methane volatile organic compounds (NMVOCs)
Hazardous air pollutants (HAP): Mercury compounds
GHG emissions (intensity)7 (tCO2e/MWh)
GHG emissions intensity
kt: kilotonnestCO2e/MWh: tonnes of carbon dioxide equivalent per megawatt hour
3
Disclosure 302-1: Energy consumption within the organisation
GRI 302 Energy 2016
1 99.9% of energy is consumed in our energy operations. Remaining energy is used in our water operations, waste management business and mobile combustion2 60% of energy is purchased for consumption in our water operations and remaining 40% of energy is purchased for consumption in our energy operations3 Total energy consumption within Sembcorp = Fuel consumption (Non-renewable) + Fuel consumption (Renewable) + Energy purchased for consumption +
Self-generated electricity (renewables) – Total Energy soldr Indicates restated figure* Measurement units: PJ: petajoules
Energy Management
Material Issue – Resource Management
We seek to take a holistic view of resource management in line with our aim to grow and innovate our business solutions to support a circular economy, while ensuring more efficient operations to avoid or minimise the unnecessary use of resources.
Total energy consumption within Sembcorp in 2020 is 184PJ. We set internal targets for our plants to improve operational performance and efficiency.
2019
306.7r
135.5
0.6
167.1
3.5
4.4
2.5
1.9
0.6
10.7
148.1r
124.9
17.6
5.5
0.0
176.2r
2020
319.2
147.4
0.4
167.5
3.9
3.3
2.1
1.4
0.7
13.9
154.3
134.0
15.1
5.1
0.1
184.3
2018
272.1
101.8
0.4
167.1
2.7
4.0
5.2
3.8
1.4
6.2
127.4
106.3
21.1
N.A
N.A
160.1
Energy consumption and sold (PJ)
Fuel consumption (Non-renewable)1
Natural gas
Fuel oil, diesel or petrol
Coal
Waste
Fuel consumption (Renewable) - Biomass
Energy purchased for consumption2
Electricity
Steam
Self-generated electricity from solar and wind
Total energy sold
Electricity
Steam
Cooling
Heating
Total energy consumption within Sembcorp3
We have maintained our energy intensity of our energy assets from last year. The energy intensity of water produced increased due to the exclusion of our Chile and Panama water assets which were divested during the year and increase in energy consumption due to higher desalinated water demand.
This year, our global energy and water facilities undertook a total of 24 energy optimisation projects at an approximate total cost of S$6.6 million with a potential overall annualised savings of S$3.3 million. The projects have led to greater efficiency in our plants and resulted in the reduction of over 60,000MWh1 of electricity. This is equivalent of over 21,000 tCO2e emissions avoided and power consumed by approximately 14,000 households in a year2.
For our projects in 2020, the type of energy saved was electricity and the basis for the calculations were from the projected annualised savings that had been realised from each of the projects.
Disclosure 302-3: Energy intensity
GRI 302 Energy 2016
Disclosure 302-4: Reduction of energy consumption
GRI 302 Energy 2016
1 Based on projected annualised energy savings2 Based on the average energy consumption of a 4-room public housing unit in Singapore. Source: Energy Market Authority, 2020
1 Energy intensity is calculated using energy consumed as numerator (GJ), and product energy generated (MWh) or water produced (m3) as the denominator. The intensity figure reported is for energy consumed within the organisation. This ratio uses the energy consumption within the organisation
r Indicates restated figure
2019
3.4
0.05r
2020
3.4
0.07
2018
3.5
0.05
Energy intensity1
Energy intensity of our energy generation assets (GJ/MWh)
Energy intensity of our water assets (GJ/m3)
* Measurement units: GJ/MWh: gigajoules per megawatt hour GJ/m3: gigajoules per cubic meter million m3: million cubic meters
4
5
Our interactions with water as a shared resource:
• Our energy generation and water assets withdraw water from sea, surface water bodies, third party water and wastewater utilities. 99% of water withdrawn by our energy generation assets was seawater that was used for cooling purposes and 3.5% of total water we withdrew was used for consumption within our operations. The majority of water withdrawn by our water assets was seawater that was used for desalination into potable water. The water withdrawn from surface and ground sources was treated to produce potable water for municipal customers. The water withdrawn from third party sources consist of wastewater and treated wastewater that we treat for discharge or reclamation. Of this, we reclaimed 60.4 million m3. 8.4% of water we reclaimed was treated in a water stressed area.
• In order to assess the resilience of our assets to extreme weather events and continuity of operations, a high level assessment of climate related physical risks across Sembcorp's energy assets based on RCP8.5 and RCP4.5 scenarios was conducted in 2017. Based on the high level physical risk assessment, we established a priority list for review of high risk assets. We then took a deep dive on the high risk assets to assess the mitigation measures based on high risk hazards including water stress.
• Group HSSE policy and standard, and Group Environmental policy require our operations to abide by the local regulations. The local regulatory effluent discharge standards form the minimum standards set for the quality of effluent discharge.
Disclosure 303-1: Interactions with water as a shared resourceDisclosure 303-2: Management of water discharge-related impacts
GRI 303 Water and Effluents 2018
Energy Management
* Measurement units: GJ/MWh: gigajoules per megawatt hour GJ/m3: gigajoules per cubic meter million m3: million cubic meters
6
Water flow of our Energy Generation and Water assets1
1 In adopting GRI Standards, we have defined the terms as follows: • Water withdrawal: includes all water we extract from the sea, surface, ground or third party sources such as wastewater from our customers or treated water from water public utilities • Water discharge: includes all water that is discharged from our operations to various destinations including the sea, surface and third parties such as customers • Water consumption: comprises the water we use in our own operations and administrative buildings. It excludes water that we withdraw and treat for supply to customers
7
Disclosure 303-3: Water withdrawalDisclosure 303-4: Water dischargeDisclosure 303-5: Water consumption
GRI 303 Water and Effluents 2018
1 Numbers may not add up as they are rounded to the nearest one decimal place2 One ML is equivalent to 1,000m3
3 Data is collected from meters4 Freshwater constitutes any water that has a concentration of total dissolved solids less than 1,000 mg/L5 Other water constitutes any water that has a concentration of total dissolved solids higher than 1,000 mg/L 6 Third party includes water received from water utilities7 The data includes water that we treat and discharge for our customers. Discharge figures are derived from a mix of direct measurement and mass balance 8 Includes cooling water and seawater that we supply to our customersr Indicates restated figure* Measurement units:
ML: megalitres
Water profile1
ML2019 2020
All areas Water stressedareas
All areas Water stressedareas
Water withdrawal3
Water discharge7
Water consumption
2,322,738.4
2,043,420.4
0.0
2,043,420.4
96,876.0
96,876.0
0.0
84,103.7
84,103.7
0.0
53,119.0
53,119.0
0.0
45,219.3
0.0
45,219.3
2,272,013.9
1,516,925.5
18,127.9
736,960.5
418,857.0
1,853,156.9
50,724.5
1,067,643.9
993,831.3
0.0
3,491.4
49,785.0
20,536.2
1,032,752.9
203,023.6
829,729.3
34,891.0
2,194,139.1r
1,944,310.2r
22,515.3
94,936.6r
72,580.4
59,796.6
2,139,113.9r
-
-
55,025.2r
2,322,013.7r
1,944,310.2r
-
-
131,954.3
-
-
100,796.3r
-
-
74,578.4
-
-
70,374.5
-
-
2,257,365.1r
1,407,692.5
33,137.9
816,534.7
-
-
64,648.6r
Total
Freshwater4
Other water5
Total
Freshwater
Other water
Total
Freshwater
Other water
Total
Freshwater
Other water
Total
Freshwater
Other water
Total
Total
Total
Total water withdrawal
Seawater
Surface water
Groundwater
Wastewater
Total water discharge
Seawater
Surface water
Third party water8
Freshwater
Other water
Total water consumption
Water source
Third party water6
8
Our energy operations withdrew 1,106,207.3ML of water in 2020:
• 99.3% was seawater that was used for plant cooling purpose. We withdrew 119,405.4ML of seawater for our India operations and 979,489.7ML of seawater for our Singapore operations to reduce use of freshwater
• 0.3% was surface water that was used for plant cooling purposes
• 0.3% was groundwater that was used for cooling purposes
• 0.1% came from water utilities and was used for our operations
Our water operations and others (waste operations and offices) withdrew over 1,216,531.1ML of water in 2020:
• 77.6% was seawater and was used to produce desalinated water. Our desalinated water production is located in water stressed areas to provide potable water for the community.
• 7.7% was surface water, the majority of which was used to produce water for municipal customers
• 6.8% was water from water utilities, of which 85% was supplied to our NEWater plant for reclamation
• 3.7% was wastewater from our customers. Out of the total volume of wastewater we treated, 24% was reclaimed and supplied to customers
• 4.1% was groundwater, 100% of which was treated and supplied to municipal customers
• 0.1% (84.4ML) came from water utilities and was consumed in our waste operations and offices
Our energy and water operations discharged 2,272,013.9ML of water in 2020:
• 66.8% was discharged to the sea. The discharged water consisted of treated effluent, rejected water from seawater desalination and used cooling water
• 32.4% was discharged to our customers as cooling water, treated industrial and municipal water. A small volume of this water was saline water from desalination process
• 0.8% was treated effluent that was discharged to surface water
Water consumption is defined by GRI as total water withdrawal minus total water discharge. Our overall water consumption for all of our global assets is over 50,724.5ML.
9
We have revised our disclosures for waste to begin aligning with the new GRI 303: Waste 2020 Standard.
Both hazardous and non-hazardous waste is generated from our operations. Our material waste streams are fly ash, wastewater and general waste. We manage our waste as per our Group HSSE policy and standard. In areas of hazardous waste management, our Group Waste Management standard requires third party contractors to be licensed by local regulatory authorities.
In India, 100% of ash generated as a by-product in our thermal plant was fully recycled into bricks, cement and used in the filling of low-lying areas and dyke raising. In our operations in the UK and Singapore, we generate steam and electricity from municipal and commercial waste collected from industries and residential customers. We actively seek to reduce the volume of sludge generated in our wastewater treatment operations through methods including anaerobic sludge digestion. In addition, non-hazardous sludge is converted into useful products such as bricks or plant fertiliser where possible.
To improve the tracking of waste-related data, Sembcorp uses a cloud-based environmental data management system. All of our processes, documentation and materials are held within our internal environmental data management system.
Please refer to our waste process flow overview of our waste related impacts in our value chain.
Disclosure 306-1: Waste generation and significant waste-related impactsDisclosure 306-2: Management of significant waste-related impacts
GRI 306 Waste 2020
Waste Management
Energy Generation Assets: Material Waste Process Flow
* Operations and maintenance (O&M) hazardous waste includes lamp, paint coatings, contaminated containers, antifreeze, sealant, etc. E-waste includes all electrically powered devices and supplies such as batteries and toner cartridges.
10
Water Assets: Material Waste Process Flow
* Operations and maintenance (O&M) hazardous waste includes lamp, paint coatings, contaminated containers, antifreeze, sealant, etc. E-waste includes all electrically powered devices and supplies such as batteries and toner cartridges.
11
12
Disclosure 306-2: Waste by type and disposal method
GRI 306 Effluents and Waste 2016
2020
1,715.8
0.4
1,711.8
0.0
6.6
6.5
72.0
(81.5)
0.0
33.4
0.04
0.2
0.0
0.0
13.8
19.0
0.4
Waste generation (kt)
Non-hazardous waste
Reused
Recycled1
Recovered
Composting
Incineration
Landfill
Ash Pond
On-site storage
Hazardous waste
Reused
Recycled
Recovered
Composting
Incineration
Landfill
On-site storage
1 81.5KT of ash from ash pond was excavated and recycled.
* Measurement units: kt: kilotonnes
13
Disclosure 306-3: Waste generated
GRI 306 Waste 2020
2020
1,715.8
1,683.2
3.7
28.4
0.5
33.4
7.7
0.2
0.002
11.4
14.1
Waste generation1 (kt)
Non-hazardous waste
Ash
O&M waste
Sludge
Others (General waste)
Hazardous waste
Ash
Oil and chemical waste
Electronic waste
O&M waste
Sludge
1 Hazardous and non-hazardous waste materials are defined by relevant country regulations in each market
We generated 1.7 million tonnes of waste, an 8% reduction from last year. This was due to lower electricity production in our coal-fired power plants and wastewater treatment volume, resulting in reduced ash and sludge generation respectively. 98% of waste generated was non-hazardous waste and 2% was hazardous waste. 95% of non-hazardous waste was recycled into bricks, cement and used in the filling of low-lying areas and dyke raising.
We strive to adopt circularity measures in our operations. For example, chemical waste from our customers is reused as a fuel in our energy generation assets. We recycle some wastewater from our customers back to our water assets for treatment and reclamation. We also achieved 100% recycling rate of ash produced by our coal-fired power plants in India.
* Measurement units: kt: kilotonnes
14
Disclosure 307-1 Non-compliance with environmental laws and regulations
GRI 307 Environmental Compliance 2016
Material Issue – Local Environmental Protection
Details of fines can be found on page 40 of this document.
• We developed our Group HSSE Legal and Regulatory Governance Framework to guide our operations towards the highest standards of environmental compliance
• We registered zero significant1 spill incidents across our global operations
Disclosure 306-3: Significant spills
GRI 306 Effluents and waste 2016
1 A significant spill refers to an accidental release of a hazardous substance which results in severe and / or persistent environmental damage, and is classified as having major or massive impact in our Group HSSE Hazard Identification and Risk Management Standard. Significant spills are reported upon the occurrence of the incident
15
GRI 102 General disclosures 2016
Disclosure 102-48: Restatements of information
Indicators Units YearReported
figuresRestated figures Reason
Disclosure 305-1: Direct (Scope 1) GHG emissions
We included chemical waste in in our operational boundary of Scope 1 emissions for 2020. Therefore, Scope 1 emissions for 2018 were restated to enable comparability over time.
We included chemical waste and SF6 gas in our operational boundary of Scope 1 emissions for 2020. We started to account for SF6 in 2019. Therefore, Scope 1 emissions for 2019 were restated to enable comparability over time. Also, Scope 1 emissions were restated due to accounting error in two of our sites and use of updated emissions factors for our waste facility.
We included battery storage losses from purchased electricity and steam losses from purchased energy (steam) in our operational boundary of Scope 2 emissions with the exception of 2018 data that excludes the battery storage losses as battery storage sites commenced operation in 2019.
In 2020, We started to include our Scope 2 emissions in our GHG emissions intensity. Therefore, GHG emissions intensity figures for 2018 and 2019 were restated to enable comparability over time.
Biogenic emissions for 2019 were restated due to use of updated emissions factors for our waste facility.
We restated our fuel consumption figures due to an accounting error in our conversion factors in one of our sites.
We started to account for energy sold (cooling and heating) in 2020, in addition to energy and steam sold. Therefore, energy consumption within organisation for 2019 was restated to enable comparability over time. We did not track data on cooling and heating sold in 2018.
We restated our water withdrawal, water discharge and water consumption figures for 2019 due to an accounting error in one of our sites.
Disclosure 305-2: Energy indirect (Scope 2) GHG emissions
Disclosure 305-1: Biogenic emissions
Disclosure 305-4: GHG emissions intensity
Disclosure 302-1: Energy consumption within the organisation-Fuel consumed (Non-renewable)
Disclosure 302-1: Energy consumption within the organisation
Disclosure 303-3: Water withdrawal (All areas)
Disclosure 303-3: Water withdrawal (Water stressed areas)
Disclosure 303-4: Water discharge(All areas)
Disclosure 303-4: Water discharge(Water stressed areas)
Disclosure 303-5: Water consumption (All areas)
Disclosure 303-5: Water consumption(Water stressed areas}
2019
2018
2019
2018
2019
2019
2019
2019
2019
2019
2019
2019
2019
2019
2018
23,615.7 23,672.5
26,003.7 25,851.3
252.7 255.2
303.1
531.0
304.8
620.3
0.55 0.56
0.54 0.55
306.0 306.7
181.0 176.2
1,971,349.1 2,322,013.7
1,843,474.4 2,194,139.1
1,925,273.4 2,257,365.1
1,807,022.3 2,139,113.9
46,075.7 64,648.6
36,452.2 55,025.2
ktCO2e
ktCO2e
tCO2e/MWh
PJ
ktCO2
PJ
ML
We restated our energy intensity for water assets for 2019 due to an accounting error in one of our sites.
Disclosure 302-3: Energy intensity 2019 0.04 0.05GJ/m3
ML
ML
ML
ML
ML
* Measurement units: ktCO2e: kilotonnes of carbon dioxide equivalent ktCO2: kilotonnes of carbon dioxide tCO2e/MWh: tonnes of carbon dioxide equivalent per megawatt hour
GJ/m3: gigajoules per cubic meter PJ: petajoules ML: megalitres
ALL SOCIAL INDICATORS
2020 PERFORMANCE DATA AND COMMENTARY www.sembcorp.com
SOCIAL
Material Issue – Health and Safety
16
In line with our aim to be an organisation that puts safety first, we continued to review and improve upon workplace health and safety processes. Key initiatives in 2020 include:
• We reviewed the standard operating procedures for all markets to ensure that they meet the Sembcorp Group HSSE standards and address critical control points
• A series of four Group HSSE standards workshops were held for our global Group HSSE network and were subsequently cascaded to our local operations. These workshops aimed to ensure that requirements as set out in the standards were understood by our operations
• We implemented a safety review plan for our wind operations in India to assess critical work procedures and to tighten safety protocols in order to mitigate health and safety risks
• We undertook a Permit-to-Work enhancement programme for our utilities operations in Singapore to improve safety governance and the control of critical work activities
Disclosure 403-1: Occupational health and safety management system
GRI 403 Occupational Health and Safety 2018
Disclosure 403-2: Hazard identification, risk assessment, and incident investigation
GRI 403 Occupational Health and Safety 2018
17
The Group Health, Safety, Security and Environment (HSSE) management system details expectations and principles relating to different aspects and activities of stakeholders across the entire Group, including contractors, vendors and suppliers working within or at project sites outside our facilities. Our management approach and elements are in alignment with the relevant OHSAS and ISO Standards, ensuring that we comply with the legal requirements relating to HSSE in all respective jurisdictions of our operations. In addition, the framework is supported by Sembcorp’s 10 Elements for HSSE Excellence.
AssuranceOur Group HSSE assurance is aligned with Sembcorp’s Integrated Assurance Framework (IAF). The IAF adopts a three lines of defence (LOD) approach that sets in place a robust accountability system to enable effective controls for identified risks and to promote continual improvement.
• First LOD – regular site-level HSSE inspections and evaluation of HSSE control effectiveness are conducted at all plants and sites as part of our assurance regime
• Second LOD – on-site operations reviews conducted by subject matter experts from other markets and the Global Operations department evaluate the efficacy of plants’ or sites’ HSSE controls. To promote the systematic and timely conduct of assurance exercises at our facilities, a validation and verification schedule is formulated on an annual basis using an internal risk-based assessment to ensure that the assurance exercise will focus on higher risk areas. Priority is given to plants or sites with higher risk ratings. Findings of the exercise then form the basis of recommended improvement plans at each site
• Third LOD – the integrated audit provides independent assurance to ensure compliance with our operating standards
Hazard Identification and Risk AssessmentTo ensure that major HSSE risks are reduced to as low as reasonably practicable, our Group HSSE Management Framework ensures processes for hazard identification and risk assessment are in place. Our methodology involves regular reviews of risk assessments and related procedures at the plant level to ensure that control measures stay relevant to our operations. Appropriate levels of management and relevant operational subject matter experts perform regular reviews of critical activities to ensure robust risk management. Such reviews also take into consideration the root causes identified through investigations following an incident, as well as observations from internal and external safety assurance reviews.
Regular operations reviews are conducted to help sites identify areas for improvement including operational and health and safety processes. The exercises may involve peer reviews with participation and feedback from other market functions. These collaborative efforts aim to foster operational excellence across the Group and markets by providing post-review support to the improvement efforts of each site.
18
Incident Investigation and Reporting Our Group HSSE Policy sets out our commitment to maintaining a safe and healthy workplace for the benefit of all employees and visitors to our offices and facilities. In addition to hazard identification and risk assessment, we have robust reporting systems outlined in our Group HSSE incident reporting and investigation protocol that help us make good on this commitment. All HSSE incidents and near misses related to our activities are classified, reported and thoroughly investigated. We apply the ‘Fish Bone’ and the ‘Five Whys’ methodologies to ensure that root causes are accurately identified and addressed. Our Group HSSE incident reporting and investigation protocol sets out the requirements based on the severity of an incident and level of investigation required, after which the appropriate corrective actions or preventive measures are taken and tracked to prevent recurrence.
These processes are complemented by our Behavioural-based Safety (BBS) observation programme, which aims to improve the observation skills of our workforce to identify unsafe behaviours in the workplace and encourage greater individual ownership of workplace safety. BBS observations are recorded through a web-based mobile application, and classified according to the different categories of unsafe acts or conditions. Recorded data is analysed monthly to identify the top three unsafe acts or conditions and recommended preventive measures are then implemented and tracked, in an iterative approach to improving health and safety.
To further encourage a ground up approach to safety, we have in place our Code of Conduct and Whistle-blowing Policy to empower our workforce. For example, employees have the right to say no to working in an unsafe or risky environment which may jeopardise themselves or visitors. We also provide relevant avenues for employees and contractors to report all HSSE incidents and non-conformance, without fear of reprisal or retaliation.
Disclosure 403-3: Occupational health services
GRI 403 Occupational Health and Safety 2018
Disclosure 403-4: Worker participation, consultation, and communication on occupational health and safety
GRI 403 Occupational Health and Safety 2018
Disclosure 403-5: Worker training on occupational health and safety
GRI 403 Occupational Health and Safety 2018
100% of contractors and subcontractors received relevant health and safety training designed for their scope of work.
Percentage of contractor and subcontractor employees that have undergone relevant health and safety training
EU18 Social, Labour Practices and Decent Work: Employment
Disclosure 403-6: Promotion of worker health
GRI 403 Occupational Health and Safety 2018
19
Occupational health management is integrated into our Group HSSE Management Framework, and covers work-related health exposures, such as exposure to noise pollution, hazardous substances and poor indoor air quality such as dusty conditions. Safe work procedures are also developed to safeguard the worker against any exposures arising from work-related activities. Occupational health surveillance is provided in accordance with local HSSE regulations for affected employees with potential exposure to occupational hazards, to identify and mitigate potentially adverse health effects. For example in Singapore, work-related noise-induced deafness is diagnosed and certified by specialist doctors appointed by local regulatory authorities. Additionally, Group Human Resources & Organisation Development in Singapore also facilitates employees’ access to occupational health service providers by either arranging for appointments to visit appointed health services providers, or bringing specialist doctors on-site to conduct specific health assessments such as hearing tests.
We provide Group Term Life and Group Personal Accident coverage in all our key markets. Besides mandatory medical screenings for employees potentially exposed to occupational health hazards, voluntary annual health screenings are available free of charge to all employees in most markets. Around the world, we also have employee-led committees who organise a range of recreational activities as well as nutrition and stress management programmes to support employees’ physical and mental well-being.
We recognise that a successful safety culture must be underpinned by open and transparent communication. To facilitate an effective governance structure and two-way communication within our facilities, HSSE committees have been set up at every plant and project site. Chaired by the plant manager or project manager, these committees comprise representatives from management, various functions and professional groups. The committee meets at least once a month to review safety initiatives, hazards identified and related mitigation measures, lessons learned from incidents, feedback from the workforce and share best practices. Our contractors are invited to the committee meeting when needed. Additionally, a similar HSSE committee is also established for engagement and consultation with our contractors.
Equipping our people with relevant HSSE and technical capabilities ensures the presence of competent HSSE practitioners and line managers across our operations. Training plans are tailored according to the particular operation or site’s risk profile and local conditions. Examples of operations-specific training include defensive driving at our solid waste management unit as well as project commissioning and construction orientation for project development teams. An annual global HSSE workshop also provides a platform for learning as well as the sharing of corporate initiatives and best practices by different operations.
Disclosure 403-7: Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
GRI 403 Occupational Health and Safety 2018
Asset LifeCycle Phase
Occupa�onal Healthand Safety Risks / Hazards
CorrespondingMi�ga�on Measures
Assets in Operation Physical• Fires or explosions • Excessive noise at certain work areas• Ergonomic hazards from manual handling • Working at height• Working in confined spaces
Mechanical• Working with machinery that has moving and / or rotating parts
Electrical• Exposure to voltage, current, static charge, magnetic fields
Chemical• Exposure to flammable, toxic, corrosive and reactive materials
Biological• Risk of infectious diseases such as COVID-19
Psychological• Stress • Fatigue
Assets in ProjectPhase and / orConstruction
Activities
Physical• Fires or explosions • Excessive noise at certain work areas• Ergonomic hazards from manual handling • Working at height• Working in confined spaces
Mechanical• Working with machinery that have moving and rotating parts
Chemical• Exposure to asbestos containing materials, lead paints, chemical products, fumes, dusts and gases
Biological• Risk of malaria • Risk of infectious diseases such as COVID-19• Exposure to Legionella bacteria from contaminated water on construction sites, which may lead to infection
Psychological• Stress • Fatigue
20
The table below summarises the potential hazards that are associated with our operations, including hazards that pose a risk of high-consequence injuries, risks as well as health and safety impacts to our employees, contractors and the community.
• Implementation of mandatory Project HSSE Plan requirements, which facilitates compliance of projects with the Group HSSE Management Framework and associated policies, and meet customer requirements and stakeholder expectations
• Implementation of a mandatory HIRM process, which provides a structured approach to identifying and evaluating HSSE risks and hazards arising from our activities. This in turn informs decisions to be taken to eliminate or minimise any risk of harm
• Implementation of a mandatory Hazards Identification and Risk Management (HIRM) process, which provides a structured approach to identifying and evaluating HSSE risks and hazards arising from our activities. This in turn informs decisions to be taken to eliminate or minimise any risk of harm
• Stringent inspection and checks on the execution of critical activities to ensure conformance to safety requirements at site, such as Permit to Work requirements
• Training to ensure a properly equipped and competent workforce
• Qualification and selection of competent contractors
• Health surveillance check-up for workers based on specific exposures
• Behavioural-based observations recorded by the workforce
Disclosure 403-8: Workers covered by an occupational health and safety management system
GRI 403 Occupational Health and Safety 2018
Disclosures 403-9 and 403-10: Work-related injuries and Work-related ill health
GRI 403
473.1
137.0
9.7
Accident Severity Rate (number per million man-hours)1,3Lost Time Injury Rate (number per million man-hours)1,2
0 0
500
2018 2019 2020 2018 2019 2020
1.1
0.9
0.5
1.5
1.0
0.5
400
300
200
100
Occupational Health and Safety 2018
21
100% of our employees are covered by our Group HSSE Management Framework. We expect our contractors, vendors and suppliers working within our project sites and / or facilities to demonstrate conformance to our Group HSSE policies.
The conformance to and implementation of our Group HSSE Management Framework is internally audited by an internal assurance process, and also accredited with the relevant OHSAS and ISO Standards.
1 Group Health and Safety Performance is reported and recorded in accordance with the reporting requirements defined in the Group HSSE Health and Safety Performance Reporting Standards. The principles adopted in our standards are consistent with the general principles of the Global Reporting Initiative Standards, the International Association of Oil and Gas Producers Reporting Standards, and the US National Institute for Occupational Safety and Health (NIOSH). Occupational health and safety data covers employees and contractors in our operational assets and assets under construction. It also includes data from administrative offices and service companies, with the exception of our corporate headquarters. All injuries involved male employees and contractors
2 Lost time injury rate is defined as the number of fatalities and lost work day cases per million man-hours worked. It includes high-consequence work-related injuries, which refer to injuries that result in permanent disability and / or injuries that require long term follow up such as physiotherapy treatment and where the individual is not expected to recover fully to pre-injury health status within six months
3 Accident severity rate is defined as the number of lost work days per million man-hours worked. We record lost time due to one fatality as 6,000 lost work days, in line with guidelines by the US NIOSH
Types of Injury and Injury Rate by Region (Employees)1
Group Group Group
2020 2019 2018
China IndiaRest Of
AsiaMiddle
EastUK
22
1 Group Health and Safety Performance is reported and recorded in accordance with the reporting requirements defined in the Group HSSE Health and Safety Performance Reporting Standards. The principles adopted in the Standards are consistent with the general principles of the GRI Standards, the IOGP Reporting Standards, and guidelines by the US NIOSH. It includes data from administrative offices and service companies, with the exception of our corporate headquarters. All injuries incurred involved male employees and contractors
2 Lost work day count begins the day after the onset of the accident. “Days" refers to calendar days. It includes high-consequence work-related injuries, which refer to injuries that result in permanent disability and / or injuries that require long term follow up such as physiotherapy treatment and where the individual is not expected to recover fully to pre-injury health status within six months. In 2020, we reported zero high-consequence work-related injuries involving employees
3 First aid injuries are excluded from the injury rates4 Fatal accident rate is defined as the number of fatalities per 100 million man-hours worked5 Lost time injury rate is defined as the number of fatalities and lost work day cases per million man-hours worked. It includes high-consequence work-related injuries6 Accident severity rate is defined as the number of lost work days per million man-hours worked. We record lost time due to one fatality as 6,000 lost work days, in
line with guidelines by the US NIOSH7 Total recordable injury rate is defined as the number of fatalities, lost work day cases, medical treatment cases, and restricted work cases per million man-hours
worked
Number of work-relatedinjuries, by type
Fatalities
Lost work day cases2
Medical treatment cases
Restricted work cases
Occupational diseases
First aid cases
Injury rate3
Fatal accident rate4
Lost time injury rate5
Accident severity rate6
Total recordable injury rate7
Occupational disease rateper million man-hours
Number of man-hoursworked
0
11
0
1
3
0
0
2.1
16.9
2.3
0.6
5,277,584
0
1
1
0
1
0
0
0.6
41.3
1.2
0.6
1,694,645
0
0
0
0
0
2
0
0.0
0.0
0.0
0.0
1,443,801
0
0
0
0
0
4
0
0.0
0.0
0.0
0.0
629,500
0
0
0
0
0
1
0
0.0
0.0
0.0
0.0
631,150
0
0
0
0
0
2
0
0.0
0.0
0.0
0.0
435,977
0
12
1
1
4
9
0
1.2
15.7
1.4
0.4
10,112,657
0
18
9
0
2
17
0
2.0
22.3
3.0
0.2
9,112,288
0
18
4
0
1
33
0
1.5
30.0
1.8
0.1
12,208,823
Singapore
Types of Injury and Injury Rate by Region (Contractors)1
23
2020 2019 2018
China IndiaRest Of
AsiaMiddle
EastUK
1 Group Health and Safety Performance is reported and recorded in accordance with the reporting requirements defined in the Group HSSE Health and Safety Performance Reporting Standards. The principles adopted in the Standards are consistent with the general principles of the GRI Standards, the IOGP Reporting Standards, and guidelines by the US NIOSH. It includes data from administrative offices and service companies, with the exception of our corporate headquarters. All injuries incurred involved male employees and contractors
2 Lost work day count begins the day after the onset of the accident. “Days" refers to calendar days. It includes high-consequence work-related injuries, which refer to injuries that result in permanent disability and / or injuries that require long term follow up such as physiotherapy treatment and where the individual is not expected to recover fully to pre-injury health status within six months. In 2020, we reported zero high-consequence work-related injuries involving contractors
3 First aid injuries are excluded from the injury rates4 Fatal accident rate is defined as the number of fatalities per 100 million man-hours worked. It includes high-consequence work-related injuries5 Lost time injury rate is defined as the number of fatalities and lost work day cases per million man-hours worked6 Accident severity rate is defined as the number of lost work days per million man-hours worked. We record lost time due to one fatality as 6,000 lost work days, in
line with guidelines by the US NIOSH7 Total recordable injury rate is defined as the number of fatalities, lost work day cases, medical treatment cases, and restricted work cases per million man-hours
worked
Number of work-relatedinjuries, by type
Fatalities
Lost work day cases2
Medical treatment cases
Restricted work cases
Occupational diseases
First aid cases
Injury rate3
Fatal accident rate4
Lost time injury rate5
Accident severity rate6
Total recordable injury rate7
Occupational disease rateper million man-hours
Number of man-hoursworked
0
7
0
3
0
1
0.0
2.1
19.6
3.0
0.0
3,360,652
0
0
0
0
0
0
0.0
0.0
0.0
0.0
0.0
803,735
0
0
0
0
0
16
0.0
0.0
0.0
0.0
0.0
6,591,136
0
0
0
0
0
5
0.0
2.4
2.4
2.4
0.0
417,774
0
0
0
0
0
4
0.0
0.0
0.0
0.0
0.0
1,086,160
0
0
1
0
0
0
0.0
0.0
0.0
1.2
0.0
825,763
0
8
1
3
0
26
0.0
0.6
5.1
0.9
0.0
13,085,219
2
8
3
1
0
44
0.1
0.6
715.0
0.8
0.0
16,987,939
1
7
5
2
0
32
2.9
0.2
3.2
0.0
0.0
35,071,960
Singapore Group Group Group
There were no fatalities involving members of the public.
Injuries and fatalities to the public involving company assets, including legal judgement, settlements and pending legal cases of diseases
EU25 Social, Labour Practices and Decent Work: Customer Health and Safety
24
25
* All indicators in the People section of this Commentary relate to permanent and contract employees of Sembcorp and its subsidiaries, unless otherwise stated
In line with our aim to create a purpose-driven, values-based and performance-led culture, we continued to implement initiatives to provide an environment where our people can grow and excel:
• We launched the Sembcorp Academy which aims to provide more structured learning opportunities for employees. The Academy kicked off with technical development programmes for operations and maintenance employees in Singapore
• We piloted a graduate development programme designed to attract high calibre graduates from local universities in Singapore
• We launched the Flexible Benefits Programme in Singapore. This provided employees with more choice to decide how they use their flexible credits
• To help employees better adapt to the changing work environment, we launched a global virtual wellness campaign to encourage healthy habits while working from home. We also launched an employee assistance programme in Singapore where employees could seek consultation services and professional support to better manage the stress associated with the COVID-19 pandemic
Material Issue – People*
GRI 102 Organisational Profile 2016Disclosures 102-7 and 102-8: Scale of organisation and information on employees and other workers
Total Number of Employees by Employment Contract, by Gender
Total Number of Employees by Employment Type, by Gender
Total Number of Employees by Employment Contract, by Region
26
Employment Contract
Permanent
Contract
Male
3390
779
Female
890
54
Total
4280
833
Male
4169
1
Female
944
6
Total
5113
7
Employment Type
Full-time
Part-time
Permanent
1788
869
898
347
174
204
Contract
794
7
2
4
26
0
Total
2582
876
900
351
200
204
Region
Singapore
China
India
UK
Rest of Asia
Middle East
Sembcorp’s principal activities are those of an investment holding company, as well as the corporate headquarter and the production and supply of utilities services, terminalling and storage of petroleum products and chemicals. Of the span of activities we engage in, a significant portion of our construction activities are performed by contractors. In India, technical support for operations and maintenance is also largely performed by contractors. There were no seasonal or significant variations in our employee numbers during the year. Data is extracted and compiled through our human resources SAP system as well as excel spreadsheets. Employee numbers are expressed as head count.
China
Male
Female
2.5
2.1
India
Male
Female
3.0
3.0
United Kingdom
Male
Female
1.0
1.0
Disclosure 102-41: Collective bargaining agreements
Number of Times Standard Entry Level Wage is Greater Than the Local Minimum Wage
Disclosure 202-1: Ratios of standard entry level wage by gender compared to local minimum wage
GRI 202 Market Presence 20161
GRI 102 Stakeholder Engagement 2016
1 Data presented is from our key markets of Singapore, China, India and the UK. Key markets are considered significant locations of operations as defined by total assets, which determine human resource activities
2 Singapore does not have a minimum wage
27
Singapore2
Male
Female
N.A
N.A
Local minimum wage is not differentiated by gender. Starting salaries of our permanent and contract employees are reviewed annually to ensure they are at or above the local minimum wage.
In 2020, 33% of Sembcorp’s permanent and contract employees were covered by collective bargaining agreements.
All our employees are entitled to practise freedom of association and are covered by collective bargaining agreements, within the regulatory boundaries of each jurisdiction. In countries where our operations are covered by collective agreements, we abide by the terms stated in these agreements, including those relating to minimum notice periods. Procedures for grievance handling are also specified in the agreements. Where collective agreements do not exist, we abide by the terms stated in employment contracts.
Age group
<30 years
30-49 years
≥50 years
Total
Number of employees
238
336
60
634
Rate (%)
4.7
6.6
1.2
12.4
Gender
Male
Female
Total
%
58.3
68.4
88.9
100.0
Disclosure 202-2: Proportion of senior management hired from the local community
GRI 202 Market Presence 2016
Proportion of senior management1 hired from local2 community at significant locations of operation3
1 Senior management is defined as employees in the senior leadership council and specific employees with the highest responsibility roles2 Local is defined as citizens and permanent residents of said country 3 Significant locations of operation is determined by total assets, which determine volume of human resource activities
GRI 401 Employment 2016Disclosure 401-1: New employee hires and employee turnover
Number and Rate of New Hires by Gender
Number and Rate of New Hires by Age Group
The total rate of new employee hires is 12.4%.
28
Location
Singapore
China
India
United Kingdom
Number of employees
498
136
634
Rate (%)
9.7
2.7
12.4
Gender
Male
Female
Total
Number of employees
510
124
634
Rate (%)
12.2
13.3
Number and Rate of New Hires by Region
0
8
16
2
14
4
6
12
10
202020192018
Employee Turnover1 (%)
1 The data covers both voluntary and involuntary turnover of permanent and contract employees of Sembcorp and its subsidiariesr Indicates restated figure. In 2020 we included the data of contract employees for completeness. Employee turnover rate for 2019 is restated to include contract
employees and to enable comparability over time
1 Rate of employee turnover by gender is the percentage of employee turnover by gender over the total number of employees in the respective gender category
Number and Rate of Employee Turnover by Gender1
11.6
12.4
13.9r
29
Number of employees
446
50
59
53
25
1
634
Rate (%)
8.7
1.0
1.2
1.0
0.5
0.0
12.4
Region
Singapore
China
India
UK
Rest of Asia
Middle East
Total
Employee turnover was 12.4% in 2020 compared to 13.9% in 2019. The voluntary turnover rate was 9.0% in 2020, down from 10.5% in 2019.
Number of employees
350
147
57
53
16
11
634
Rate (%)
13.6
16.8
6.3
15.1
8.0
5.4
Region
Singapore
China
India
UK
Rest of Asia
Middle East
Total
Age group
<30 years
30-49 years
≥50 years
Total
Number of employees
145
346
143
634
Rate (%)
15.3
11.4
12.7
Number and Rate of Employee Turnover by Age Group1
Number and Rate of Employee Turnover by Region2
Employee Distribution by Tenure (%)
■ <1 year ■ 1-3+ years ■ 4-9+ years ■ ≥ 10 years
31.5
35.3
21.5
11.7
33.4
29.0
28.1
9.5
Tenure of existing employees, broken down by employee categorySCI Sembcorp Indicator: Employee Distribution by Tenure
1 Rate of employee turnover by age group is the percentage of employee turnover by age group over the total number of employees in the respective age group2 Rate of employee turnover by region is the percentage of employee turnover by region over the total number of employees in the respective region
30
Non- ExecutiveExecutive
EU15 Social, Labour Practices and Decent Work: Employment Percentage of employees eligible to retire in the next five and ten years broken down by job category and by region
4.8
9.5 10.9
5.6
0
4
2
6
8
12
10
14
16
18
Non-ExecutiveExecutive
1 Retirement age is defined in accordance with Singapore’s statutory requirement age as 62 years. The UK has no statutory retirement age
■ Eligible to retire over the next five years ■ Eligible to retire between five to ten years
Employees Eligible to Retire1 by Employee Category (%)
6.7
13.2
0
10
20
5
15
25
30
6.7
2.7
China UK
3.4
1.7
IndiaSingapore
1.5
10.511.4
13.4
Rest of Asia
3.4
5.9
Middle East
■ Eligible to retire over the next five years ■ Eligible to retire between five to ten years
Employees Eligible to Retire1 by Region (%)
31
Disclosure 402-1: Minimum notice periods regarding operational changesGRI 402 Labour / Management Relations 2016
Disclosure 404-1: Average hours of training per year per employeeGRI 404 Training and Education 2016
Training Hours (average hours per employee)1
1 The data covers both permanent and contract employees of Sembcorp and its subsidiaries
0
10
20
5
15
25
30
202020192018
25.2
23.6
29.4
Average Training Hours by Gender
32
In countries where our operations are covered by collective agreements, we abide by the minimum notice period stated in the agreements. Notice period, and provisions for consultation and negotiation are specified in collective bargaining agreements.
We achieved an average of 23.6 training hours per employee in 2020. The lower training uptake was due in part to employees transitioning to work from home arrangements. COVID-19 restrictions also limited the number of practical training sessions that could be conducted. Certain training sessions were also cancelled as vendors were unable to conduct virtual sessions.
Gender
Male
Female
No. of hours
23.2
25.5
Average Training Hours by Employee Category
Employee category
Executive
Non-executive
No. of hours
23.9
23.1
33
Disclosure 404-3: Percentage of employees receiving regular performance and career development reviewsGRI 404 Training and Education 2016
Percentage Breakdown of Total Employees Who Received a Performance Review by Gender
Percentage Breakdown of Total Employees Who Received a Performance Review by Employee Category
100% of all employees1 due for a performance review received one. As part of the performance review, employees are assessed for the achievement of their work targets and how well they demonstrate the Sembcorp Leadership Competencies.
Gender
Male
Female
%
82.3
17.7
Employee category
Executive
Non-executive
%
63.9
36.1
1 Employees who joined before 1 October 2020 are eligible for a performance review.
Sembcorp Indicator: Employee EngagementSCI
In 2020, all of our board directors were above 50 years old.
Disclosure 405-1: Diversity of governance bodies and employeesGRI 405 Diversity and Equal Opportunity 2016
16.9
62.5
20.7
54.1
24.3
21.50
40
80
20
60
100
Non-executiveExecutive
■ <30 years ■ 30-49 years ■ ≥50 years
Employee Distribution by Employee Category and Age Group (%)
0
40
80
20
60
1007.9
92.1
Non-executive
20.4
79.6
Senior Management
9.1
90.9
Board of Directors1
■ Male ■ Female
Governance Bodies and Employee Distribution by Employee Category and Gender (%)
75.4
24.6
Executive
1 Board of Directors as of December 31, 2020
34
We launched global pulse surveys in April and June 2020 to better understand how employees were coping amid the pandemic. Findings and concerns highlighted in the first survey were followed up on. The results were reflected in improved scores from the second pulse survey, including better employee well-being, and improved sentiment towards the organisational and enhanced digital support given to help employees adapt to the changing work environment.
A global employee engagement survey was conducted in November 2020. Employee participation rates in the engagement survey improved significantly from 59% in 2019 to 82% in 2020, while the employee engagement dimension scored above global industry benchmarks.
Disclosure 406-1: Incidents of discrimination and corrective actions takenGRI 406 Non-discrimination 2016
Disclosure 407-1: Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk GRI 407 Freedom of Association and Collective Bargaining 2016
Disclosure 408-1: Operations and suppliers at significant risk for incidents of child labourGRI 408 Child Labour 2016
Disclosure 409-1: Operations and suppliers at significant risk for incidents of forced or compulsory labour GRI 409 Forced or Compulsory Labour 2016
35
No incidents relating to employees that were reported and reviewed were established to be incidents of discrimination during the reporting period.
In the event an employee has a grievance to raise, our grievance handling and whistle-blowing policies are readily available and transparent. The grievance procedure sets out our approach to the fair handling of employee complaints, and the establishment of confidential channels to submit feedback. We encourage an open culture where employees are able to speak up and raise issues as they arise through email or phone, without fear of reprisal. In the event of harassment, we ensure that remediation is undertaken in line with our Grievance Handling Policy.
No incidents were reported in our operations during the reporting period where the right to exercise freedom of association and collective bargaining was violated or at significant risk.
Data from suppliers is not available. We have reviewed and are in the process of implementing a system to collect data on our suppliers. For example, the vendor pre-qualification questionnaire was updated in 2019 to include questions related to collective bargaining. Vendors are only on-boarded when their responses have been reviewed and accepted. In 2020, we also conducted global training for relevant procurement teams on our Supplier Code of Conduct (Supplier CoC).
No incidents of child labour were reported in our operations during the reporting period.
Data from suppliers is not available. We have reviewed and are in the process of implementing a system to collectdata on our suppliers. For example, the vendor pre-qualification questionnaire was updated in 2019 to include questions related to child labour. Vendors are only on-boarded when their responses have been reviewed and accepted. In 2020, we also conducted global training for relevant procurement teams on our Supplier CoC.
No incidents of forced or compulsory labour were reported in our operations during the reporting period.
Data from suppliers is not available. We have reviewed and are in the process of implementing a system to collectdata on our suppliers. For example, the vendor pre-qualification questionnaire was updated in 2019 to include questions related to forced or compulsory labour. Vendors are only on-boarded when their responses have been reviewed and accepted. In 2020, we also conducted global training for relevant procurement teams on our Supplier CoC.
GRI 201 Economic Performance 2016Disclosure 201-1: Direct economic value generated and distributed
Material Issue – Community
* On an accruals basis** On September 11, 2020, the Company distributed its holdings of ordinary shares in the capital of its subsidiary, Sembcorp Marine, to its shareholders.
Consequent to this, dividend distribution in specie of S$1,597 million was included in the negative S$2,158 million of direct value retained by Sembcorp
DIRECT VALUE GENERATED & DISTRIBUTED BY SEMBCORP
TURNOVER
S$5,447million
DIRECT VALUE DISTRIBUTED TO OTHERS
Materials and Services Cost Employees Governments Capital Providers Communities
S$4,075m* S$396m*
S$37m
S$3,093m S$3.5m
DIRECT VALUE RETAINED BY SEMBCORP
(S$2,158 million)**
This includes dividends, dividend distribution in specie, distributions on
perpetual securitiesand interest paid
This includesincome taxes paid,
net of refundsreceived
This includeswages, salariesand benefits
This includes materialsand subcontract costs,
which comprisepurchases from
suppliers, contractorcosts and other
operating expenses
This includesdonations fromour businesses’
engagement withcharitable
organisationsor activities
36
The Business for Societal Impact (formerly known as LBG) Guidance Manual guides the tracking and reporting of our community contributions. This uses standardised definitions and valuations to account for our total community giving, and ensures greater accountability with more measurable outcomes for our contributions.
Our Community Investment Guidelines provide a strategic approach to our charitable contributions and community investments. The guidelines aim to achieve a greater proportion of investments in long-term initiatives which integrate community needs with our business objectives, core competencies or assets. Our efforts currently focus on the following five Sustainable Development Goals (SDGs):
Disclosure 203-1: Infrastructure investments and services supportedGRI 203 Indirect Economic Impacts 2016
0
1.5
2.5
1
2
3
4
3.5
202020192018
Community Contributions (S$ million)
3.5
1.1
1.4
In 2020, we launched the Sembcorp Energy for Good Fund in Singapore with an initial injection of S$1.5 million.Of this, over S$1 million was used to provide relief to the social sector, essential workers and migrant workers whowere impacted by the pandemic. This includes S$350,000 of grants which were distributed to 35 smaller charities in Singapore to help defray their operating costs. This enabled them to continue serving vulnerable individuals and groups in the community. Each S$10,000 grant will help to cover the charity’s utilities expenses for between six and 12 months on average, depending on usage.
Globally, our markets responded to community needs throughout the year as well as during our annual Sembcorp Gives Back Week in September 2020.
Total volunteer man-hours was more than 2,000 hours, of which over 3% was spent outside of working hours.
In 2020, Sembcorp contributed S$3.5 million through cash and in-kind donations to charities and communityinitiatives globally, which included over S$600,000 in mandatory contributions and close to S$52,000 in leveragedcontributions. Of our total contribution, S$1.7 million was channelled to support pandemic-related causes.
37
Community Contributions by Contribution Motive (%)
■ Community investments■ Charitable gifts
51
Disclosure 413-1: Operations with local community engagement, impact assessments, and development programsGRI 413 Local Communities 2016
49
38
Some 86% of our operations support communities through local community engagement and / or development programmes. We plan to grow this coverage to 100% by 2022.
Total giving of
S$3.5 million
Community Contributions by Subject Focus (%)
■ Education / Youth development■ Community / Social welfare ■ Environment
34
4
61
Breakdown based on the Business for Societal Impact (formerly LBG) Guidance Manual
Total giving of
S$3.5 million
www.sembcorp.com
GOVERNANCE
Material Issue – Corporate Governance
Material Issue – Ethical Business and Compliance
ALL GOVERNANCE INDICATORS
39
2020 PERFORMANCE DATA AND COMMENTARY
• In 2020, 100% of our employees completed mandatory compliance trainings and acknowledged compliance to the Code of Conduct
• In addition to mandatory e-learning, we conducted 29 training workshops targeting employees whose work exposed them to higher risk of bribery and corruption. Over 1,100 employees globally attended these video conference trainings, with the aim to heighten their awareness of anti-bribery and corruption, fraud, financial crimes and conflict of interest
• A total of 23 data protection and cyber security awareness training workshops were conducted for over 900 employees globally
• As part of our continuous improvement efforts, we updated and enhanced our Group Conflict of Interest Policy
• We increased the scope of our Third Party Due Diligence compliance programme
Fines and SanctionsWe are committed to complying with statutory and regulatory requirements. We report significant fines or monetary sanctions that are equal to or above S$50,000 that are paid during the financial year.
In 2020, we paid fines totalling S$549,000 in Chile for incidents that occurred in 2012, 2013 and 2017 relating to delays in the registration of a water well and the construction and expansion of sewage treatment plants that were committed to under a regulatory development plan. Our Chile business was divested on July 29, 2020.
• We ranked eighth in the Singapore Governance and Transparency Index 2020, the leading index for assessing the corporate governance practices of Singapore-listed companies
• We placed fifth in the inaugural Singapore Board Diversity Index developed by Willis Towers Watson in partnership with the Singapore Institute of Directors and supported by BoardAgender
• We received the ASEAN Asset Class Award in the 2019 ASEAN Corporate Governance Scorecard assessment
As disclosed in our Annual Report 2019, legal proceedings related to the discharge of off-specification wastewater by a joint venture wastewater treatment company in China resulting from the illegal and criminal activities of some former employees were concluded in February 2020. The Group paid S$10 million in fines for the criminal case in 2019 and agreed to a S$44 million settlement for the civil claim.
Following this incident, we took all necessary steps to further strengthen our internal controls and processes across our water operations in China. The Group also committed to invest S$45 million over a four-year period to support environmental protection in the country.
Disclosure 205-2: Communication and training about anti-corruption policies and procedures
GRI 205 Anti-corruption 2016
GRI 206 Anti-competitive Behaviour 2016
40
Our Group Anti-bribery and Corruption policy defines bribery as the offering, promising, authorising, providing or receiving anything of a value to/from a customer, business partner, vendor or other third party in order to induce or reward the improper benefit or performance of an activity connected with a business. 100% of our employees completed mandatory compliance trainings and acknowledged compliance to the Code of Conduct.
In addition to mandatory e-learning, we conducted 29 training workshops targeting employees whose work exposed them to higher risk of bribery and corruption. Over 1,100 employees globally attended these video conference trainings, with the aim to heighten their awareness of anti-bribery and corruption, fraud, financial crimes and conflict of interest.
Disclosure 307-1: Non-compliance with environmental laws and regulations
GRI 307 Environmental Compliance 2016
In 2020, there were no significant* fines paid in relation to the non-compliance with environmental laws and regulations.
As disclosed in our Annual Report 2019, legal proceedings related to the discharge of off-specification wastewater by a joint venture wastewater treatment company in China resulting from the illegal and criminal activities of some former employees were concluded in February 2020. The Group paid S$10 million in fines for the criminal case in 2019 and agreed to a S$44 million settlement for the civil claim. Details of these fines are described under “Fines and Sanctions” in this document.
Disclosure 206-1: Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices
No legal actions for anti-competitive behaviour, anti-trust and monopoly practices recorded during reporting period.
• In 2020, 100% of our employees completed mandatory compliance trainings and acknowledged compliance to the Code of Conduct
• In addition to mandatory e-learning, we conducted 29 training workshops targeting employees whose work exposed them to higher risk of bribery and corruption. Over 1,100 employees globally attended these video conference trainings, with the aim to heighten their awareness of anti-bribery and corruption, fraud, financial crimes and conflict of interest
• A total of 23 data protection and cyber security awareness training workshops were conducted for over 900 employees globally
• As part of our continuous improvement efforts, we updated and enhanced our Group Conflict of Interest Policy
• We increased the scope of our Third Party Due Diligence compliance programme
Fines and SanctionsWe are committed to complying with statutory and regulatory requirements. We report significant fines or monetary sanctions that are equal to or above S$50,000 that are paid during the financial year.
In 2020, we paid fines totalling S$549,000 in Chile for incidents that occurred in 2012, 2013 and 2017 relating to delays in the registration of a water well and the construction and expansion of sewage treatment plants that were committed to under a regulatory development plan. Our Chile business was divested on July 29, 2020.
As disclosed in our Annual Report 2019, legal proceedings related to the discharge of off-specification wastewater by a joint venture wastewater treatment company in China resulting from the illegal and criminal activities of some former employees were concluded in February 2020. The Group paid S$10 million in fines for the criminal case in 2019 and agreed to a S$44 million settlement for the civil claim.
Following this incident, we took all necessary steps to further strengthen our internal controls and processes across our water operations in China. The Group also committed to invest S$45 million over a four-year period to support environmental protection in the country.
* We report significant fines or monetary sanctions that are equal to or above S$50,000 that are paid during the financial year.
GRI 415 Public Policy 2016
GRI 419 Socioeconomic Compliance 2016
Material Issue – Risk Management
41
Disclosure 415-1: Political contributions
Our Code of Conduct states that we are politically neutral and we do not contribute funds or non-monetary support, including lobbying, to any political party, politician, elected official, or candidate for public office in any country or jurisdiction.
Disclosure 419-1: Non-compliance with laws and regulations in social and economic area
In 2020, we paid significant* fines totalling S$549,000 in Chile for incidents that occurred in 2012, 2013 and 2017 relating to delays in the registration of a water well and the construction and expansion of sewage treatment plants that were committed to under a regulatory development plan. Our Chile business was divested on July 29, 2020. Details of these fines are described under “Fines and Sanctions” in this document.
The Group has completed the transition from Governance Assurance Framework to an Integrated Assurance Framework (IAF) to put greater emphasis on the three lines of defence model.
* We report significant fines or monetary sanctions that are equal to or above S$50,000 that are paid during the financial year.
