Sustainability Report

Leighton Asia, India and Offshore

Sustainability Report

2013

About this report The Leighton Asia, India and Offshore Sustainability Report 2013 is our fourth annual sustainability report. Our previous reports were published in 2008, 2011 and 2012. The information provided in this report covers the reporting period January 2013 - December 2013. Leighton Asia, India and Offshore (LAIO) comprises six business entities operating in fourteen countries throughout Asia and the Middle East. Internally and throughout this report, these six entities are referred to as: Business Units 1, 2, 3 and 4, Leighton Offshore and Leighton Welspun-India (LWIN). In November 2013, an internal restructuring saw these six entities reduced to five entities, comprising Hong Kong & Macau, Southeast Asia Construction, Indonesia Asia Mining, Leighton Offshore and Leighton India. All figures in this report correspond to the original six business unit structure. We began gathering baseline data in July 2011 for all operations except LWIN and Leighton Offshore. LWIN and Leighton Offshore began regular reporting on Health and Safety, Environment (including environmental performance indicators, Scope 1 and 2 GHG emissions and waste management), and Security, as of March 2012. Their initial reports covered the first quarter. Thereafter, LWIN and Leighton Offshore began to report on a monthly basis. Measurement, calculation methodology and reporting boundaries are explained in the Appendix. Financial data is presented in US dollars and environmental data is provided in metric units. SGS HK Ltd. has been commissioned to provide an independent assurance report on the quantitative data, initiatives, stakeholder engagement and materiality analysis presented in this report. Their report can be found on p8081 of this report. This report has been prepared against the guidelines set out by the Global Reporting Initiative (GRI). The table identifying Standard Disclosures, as required by the GRI, can be found on pages 82 -85.

All queries and comments relating to this report should be directed to:

2

Sustainability Report 2013

Rikki Stancich Group Sustainability and Communications Manager [email protected]


3

About this report The Leighton Asia, India and Offshore Sustainability Report 2013 is our fourth annual sustainability report. Our previous reports were published in 2008, 2011 and 2012. The information provided in this report covers the reporting period January 2013 - December 2013. Leighton Asia, India and Offshore (LAIO) comprises six business entities operating in fourteen countries throughout Asia and the Middle East. Internally and throughout this report, these six entities are referred to as: Business Units 1, 2, 3 and 4, Leighton Offshore and Leighton Welspun-India (LWIN). In November 2013, an internal restructuring saw these six entities reduced to five entities, comprising Hong Kong & Macau, Southeast Asia Construction, Indonesia Asia Mining, Leighton Offshore and Leighton India. All figures in this report correspond to the original six business unit structure. We began gathering baseline data in July 2011 for all operations except LWIN and Leighton Offshore. LWIN and Leighton Offshore began regular reporting on Health and Safety, Environment (including environmental performance indicators, Scope 1 and 2 GHG emissions and waste management), and Security, as of March 2012. Their initial reports covered the first quarter. Thereafter, LWIN and Leighton Offshore began to report on a monthly basis. Measurement, calculation methodology and reporting boundaries are explained in the Appendix. Financial data is presented in US dollars and environmental data is provided in metric units. SGS HK Ltd. has been commissioned to provide an independent assurance report on the quantitative data, initiatives, stakeholder engagement and materiality analysis presented in this report. Their report can be found on p8081 of this report. This report has been prepared against the guidelines set out by the Global Reporting Initiative (GRI). The table identifying Standard Disclosures, as required by the GRI, can be found on pages 82 -85.

All queries and comments relating to this report should be directed to:

2


Rikki Stancich Group Sustainability and Communications Manager [email protected]


3

Scope of this report This report covers the activities of business entities that have been managed by Leighton Asia, India and Offshore management entity, or that have been operated by Leighton Asia, India and Offshore in a joint venture (JV) from 01 January 2013 to 31 December 2013. This is our fourth sustainability report. As with our previous three reports, the opening pages of our 2013 Sustainability Report provide an overview of our business performance, our safety and environmental performance, diversity, material risks and opportunities, our approach to risk management, our corporate governance structure, our stakeholders, and the key focus areas

Table of contents

of our sustainability strategy . The second part of our report is structured around our seven core values. Each section details how we have embedded our values, providing insight

Managing Director’s statement

6

into our strategy and actions for addressing our impacts and stakeholder

About LAIO

8

concerns. The independent assurance report on this report provided by SGS HK Ltd. can be found on pages 80-81.

LAIO 2013 in figures

10

2013 highlights

20

Corporate governance

22

Our stakeholders

24

Risk management

26

Our roadmap to sustainability

27

Materiality

28

Our SMART strategy

30

Core Values

4


Be commercially competitive

32

Provide a safe and healthy workplace

38

Act with integrity and fairness

50

Protect the environment

54

Recognise the needs of the community

62

Create a fun, challenging and performance-driven culture

68

Encourage innovation and technological leadership

76

External Assurance Statement

80

GRI Checklist

82

Appendices

86 Sustainability Report 2013

5

Scope of this report This report covers the activities of business entities that have been managed by Leighton Asia, India and Offshore management entity, or that have been operated by Leighton Asia, India and Offshore in a joint venture (JV) from 01 January 2013 to 31 December 2013. This is our fourth sustainability report. As with our previous three reports, the opening pages of our 2013 Sustainability Report provide an overview of our business performance, our safety and environmental performance, diversity, material risks and opportunities, our approach to risk management, our corporate governance structure, our stakeholders, and the key focus areas

Table of contents

of our sustainability strategy . The second part of our report is structured around our seven core values. Each section details how we have embedded our values, providing insight

Managing Director’s statement

6

into our strategy and actions for addressing our impacts and stakeholder

About LAIO

8

concerns. The independent assurance report on this report provided by SGS HK Ltd. can be found on pages 80-81.

LAIO 2013 in figures

10

2013 highlights

20

Corporate governance

22

Our stakeholders

24

Risk management

26


27

Materiality

28

Our SMART strategy

30

Core Values

4



32


38


50


54


62


68


76

External Assurance Statement

80

GRI Checklist

82

Appendices

86 Sustainability Report 2013

5

Managing Director’s statement: 2013 was a year of strategic realignment under the Leighton Group’s initiative of ‘stabilise, rebase and grow’. In our second year operating as a single corporate entity under the Leighton Asia, India and Offshore business structure, we sharpened our focus on business efficiency, targeting our commercial, financial, human resources, safety and sustainability performance.

2013 was a year of strategic realignment under the Leighton Group’s initiative of ‘stabilise, rebase and grow’.

It was a year as challenging as it was rewarding.

into 2014 and beyond, we will maintain an

commitment. Our Executive Leadership team

Our strategic business realignment that took

Despite volatile commodity market conditions,

unwavering focus on client alignment.

correspondingly committed to reviewing our

place throughout 2013 will create greater

receivables on the balance sheet and

safety regime. In September we appointed

stability, longevity and opportunity for LAIO

disappointing safety performance, we closed

2013 had some tremendously high points for

a General Manager dedicated to Safety and

and the communities in which we deliver our

2013 with work in hand worth US$7.5 billion.

our business. Our Hong Kong and Macau

tasked him with reviving our Strive for L.I.F.E

projects. The result is that we are moving into

The year’s challenges were equally matched by

operation was awarded the Wynn Palace

programme and embedding a high standard of

2014 as a leaner, more agile business poised for

outstanding contract awards and a strategic re-

contract, worth US$2.5bn, the largest by value

safe practice across our business operations.

further growth.

organisation that has laid the foundations for a

ever to be awarded to this company. Among the

more resilient business going forward.

20 contracts won during the year we were also

In 2013 we further sharpened our focus on

awarded a second major contract in Singapore,

sustainability by appointing a Sustainability

Early in the year we instigated a strategic

securing our foothold in this exciting growth

Manager to create a strategic focus on resource

Business Transformation Programme (BTP) with

market.

efficiency, energy efficiency and community

the purpose of realigning our support functions

investment across our businesses. An internal

to ensure sustainable and consistent success in

The year closed on a high note with the

and external stakeholder engagement exercise

the way we win and deliver projects across Asia.

announcement that our parent company

conducted in mid-2013 enabled us to identify

Leighton Holdings had acquired the remaining

our areas of greatest impact around which our

The roll out of our BTP culminated in several

stake in the Leighton Welspun joint venture. As

sustainability strategy is now focused.

major milestones in 2013, moving us

a wholly-owned Leighton subsidiary, Leighton

progressively toward our vision of operating as

India is now in a stronger position to address

‘One LAIO’. The first was our Southeast Asia

India’s high-growth infrastructure market, fully

pre-contracts hub and Shared Services Centre

aligned to LAIO’s standards.

Ian Edwards Managing Director Leighton Asia, India and Offshore

for HR, Admin, Finance and IT going live in October. A second major milestone was the

We undoubtedly had a disappointing year in

realignment of functional support across our

2013 in terms of safety. Despite achieving an

Asia business units throughout November and

impressive number of Lost Time Injury-free

December and into 2014.

records and safety performance awards on many of our projects across Asia, we tragically

6

A key focus area for us has been client

lost four lives and incurred a class 1 injury.

integrity and the type of new work on-boarded

These incidents underscored the need for

throughout 2013 indicated that in this respect,

us to address our existing safety standards

it was very successful year. Looking ahead

and performance with renewed focus and



7

Managing Director’s statement: 2013 was a year of strategic realignment under the Leighton Group’s initiative of ‘stabilise, rebase and grow’. In our second year operating as a single corporate entity under the Leighton Asia, India and Offshore business structure, we sharpened our focus on business efficiency, targeting our commercial, financial, human resources, safety and sustainability performance.

2013 was a year of strategic realignment under the Leighton Group’s initiative of ‘stabilise, rebase and grow’.

It was a year as challenging as it was rewarding.

into 2014 and beyond, we will maintain an

commitment. Our Executive Leadership team

Our strategic business realignment that took

Despite volatile commodity market conditions,

unwavering focus on client alignment.

correspondingly committed to reviewing our

place throughout 2013 will create greater

receivables on the balance sheet and

safety regime. In September we appointed

stability, longevity and opportunity for LAIO

disappointing safety performance, we closed

2013 had some tremendously high points for

a General Manager dedicated to Safety and

and the communities in which we deliver our

2013 with work in hand worth US$7.5 billion.

our business. Our Hong Kong and Macau

tasked him with reviving our Strive for L.I.F.E

projects. The result is that we are moving into

The year’s challenges were equally matched by

operation was awarded the Wynn Palace

programme and embedding a high standard of

2014 as a leaner, more agile business poised for

outstanding contract awards and a strategic re-

contract, worth US$2.5bn, the largest by value

safe practice across our business operations.

further growth.

organisation that has laid the foundations for a

ever to be awarded to this company. Among the

more resilient business going forward.

20 contracts won during the year we were also

In 2013 we further sharpened our focus on

awarded a second major contract in Singapore,

sustainability by appointing a Sustainability

Early in the year we instigated a strategic

securing our foothold in this exciting growth

Manager to create a strategic focus on resource

Business Transformation Programme (BTP) with

market.

efficiency, energy efficiency and community

the purpose of realigning our support functions

investment across our businesses. An internal

to ensure sustainable and consistent success in

The year closed on a high note with the

and external stakeholder engagement exercise

the way we win and deliver projects across Asia.

announcement that our parent company

conducted in mid-2013 enabled us to identify

Leighton Holdings had acquired the remaining

our areas of greatest impact around which our

The roll out of our BTP culminated in several

stake in the Leighton Welspun joint venture. As

sustainability strategy is now focused.

major milestones in 2013, moving us

a wholly-owned Leighton subsidiary, Leighton

progressively toward our vision of operating as

India is now in a stronger position to address

‘One LAIO’. The first was our Southeast Asia

India’s high-growth infrastructure market, fully

pre-contracts hub and Shared Services Centre

aligned to LAIO’s standards.

Ian Edwards Managing Director Leighton Asia, India and Offshore

for HR, Admin, Finance and IT going live in October. A second major milestone was the

We undoubtedly had a disappointing year in

realignment of functional support across our

2013 in terms of safety. Despite achieving an

Asia business units throughout November and

impressive number of Lost Time Injury-free

December and into 2014.

records and safety performance awards on many of our projects across Asia, we tragically

6

A key focus area for us has been client

lost four lives and incurred a class 1 injury.

integrity and the type of new work on-boarded

These incidents underscored the need for

throughout 2013 indicated that in this respect,

us to address our existing safety standards

it was very successful year. Looking ahead

and performance with renewed focus and



7

About LAIO Where we are

Our Vision Our Values

• We strive to be the leading construction and mining service provider throughout Asia.

Our seven core values guide us every day in how we approach our work and how we interact with each other, our clients

• We are driven by our people, values, local knowledge and

and communities throughout the fifteen countries in which we operate.

international experience. Our core values transcend borders. They unite our many cultures and countries, enabling us to operate as ‘One LAIO’, to a

• We are firmly focused on customer, community and shareholder

common standard and purpose. Our seven core values comprise the following:

objectives.

Who we are Headquartered in Hong Kong, Leighton

In 2013, LAIO consolidated its six business units into five to

Asia, India and Offshore is the leading

represent the following regions and sectors:

international contractor delivering a full

•

Hong Kong and Macau

suite of infrastructure, mining and offshore

•

Indonesia and Asia Mining: Indonesia and Mongolia

oil and gas services to clients across the

•

Southeast Asia Construction: Malaysia, Philippines,

Asia region. In 2013, we had a presence

Singapore, Thailand and Indo-China

in China, Hong Kong, India, Indonesia,

•

Leighton Offshore: LFM and Leighton Engineering

Iraq, Laos, Macau, Malaysia, Mongolia,

•

Leighton India

• • • • • • •

Be commercially competitive Provide a safe and healthy workplace Act with integrity and fairness Protect the environment Recognise the needs of the community Create a fun, challenging and performance-driven culture Encourage innovation and technological leadershipt

Philippines, Singapore, Thailand, Vietnam, and the United Arab Emirates. In 2011, the Asia, India and Offshore operations were brought together to operate under a single operating company structure called Leighton Asia, India and Offshore (LAIO). LAIO is wholly owned by Australia’s Leighton Holdings, one of the world’s major contracting, services and project development organisations and the world’s largest contract miner.

8


What we do

Infrastructure

Our diverse portfolio of public and private sector projects encompasses

Since undertaking our first civil

commercial and residential

engineering project in Hong Kong in

developments.

the mid-1970s, we have established ourselves as a market leader across

An increasing number of these meet

Asia.

international and local green building standards, such as the US Green

We deliver site preparation and land

building Council’s Leadership in Energy

reclamation, railway systems, bridges,

and Environmental Design standards

tunnels, power stations, airports,

(LEED) and Hong Kong’s Building

pipelines, roads and renewable energy

Environmental Assessment Method

infrastructure.

(BEAM).

Offshore oil and gas Our offshore operations include procurement, construction, installation and commissioning (EPCIC) and life of field services (LOFS), spanning India, South East Asia, the Middle East and Africa. We focus on subsea pipelines, single point moorings (SPM), offshore structures and subsea construction services. Our pipelay experience includes both small and large diameters, as well as

some of the most complex subsea pipeline installations and shore crossings in South East Asia, the Middle East and Africa. Leighton Fabrication and Modularisation is our strategic procurement business where we specialise in fabrication, large pre-assembled modularisation solutions and associated international shipping and logistics.

Contract mining Our expertise in efficient resource extraction includes coal, gold, copper, nickel and iron ore. From feasibility studies and concept planning to comprehensive mine operation and environmental management, our proven track record for excelling under challenging conditions, remote locations and extreme climates, makes us a trusted partner in the markets where we operate. We currently have mining operations in Indonesia, Philippines and Mongolia.


9

About LAIO Where we are

Our Vision Our Values

• We strive to be the leading construction and mining service provider throughout Asia.

Our seven core values guide us every day in how we approach our work and how we interact with each other, our clients

• We are driven by our people, values, local knowledge and

and communities throughout the fifteen countries in which we operate.

international experience. Our core values transcend borders. They unite our many cultures and countries, enabling us to operate as ‘One LAIO’, to a

• We are firmly focused on customer, community and shareholder

common standard and purpose. Our seven core values comprise the following:

objectives.

Who we are Headquartered in Hong Kong, Leighton

In 2013, LAIO consolidated its six business units into five to

Asia, India and Offshore is the leading

represent the following regions and sectors:

international contractor delivering a full

•

Hong Kong and Macau

suite of infrastructure, mining and offshore

•

Indonesia and Asia Mining: Indonesia and Mongolia

oil and gas services to clients across the

•

Southeast Asia Construction: Malaysia, Philippines,

Asia region. In 2013, we had a presence

Singapore, Thailand and Indo-China

in China, Hong Kong, India, Indonesia,

•

Leighton Offshore: LFM and Leighton Engineering

Iraq, Laos, Macau, Malaysia, Mongolia,

•

Leighton India

• • • • • • •

Be commercially competitive Provide a safe and healthy workplace Act with integrity and fairness Protect the environment Recognise the needs of the community Create a fun, challenging and performance-driven culture Encourage innovation and technological leadershipt

Philippines, Singapore, Thailand, Vietnam, and the United Arab Emirates. In 2011, the Asia, India and Offshore operations were brought together to operate under a single operating company structure called Leighton Asia, India and Offshore (LAIO). LAIO is wholly owned by Australia’s Leighton Holdings, one of the world’s major contracting, services and project development organisations and the world’s largest contract miner.

8


What we do

Infrastructure

Our diverse portfolio of public and private sector projects encompasses

Since undertaking our first civil

commercial and residential

engineering project in Hong Kong in

developments.

the mid-1970s, we have established ourselves as a market leader across

An increasing number of these meet

Asia.

international and local green building standards, such as the US Green

We deliver site preparation and land

building Council’s Leadership in Energy

reclamation, railway systems, bridges,

and Environmental Design standards

tunnels, power stations, airports,

(LEED) and Hong Kong’s Building

pipelines, roads and renewable energy

Environmental Assessment Method

infrastructure.

(BEAM).

Offshore oil and gas Our offshore operations include procurement, construction, installation and commissioning (EPCIC) and life of field services (LOFS), spanning India, South East Asia, the Middle East and Africa. We focus on subsea pipelines, single point moorings (SPM), offshore structures and subsea construction services. Our pipelay experience includes both small and large diameters, as well as

some of the most complex subsea pipeline installations and shore crossings in South East Asia, the Middle East and Africa. Leighton Fabrication and Modularisation is our strategic procurement business where we specialise in fabrication, large pre-assembled modularisation solutions and associated international shipping and logistics.

Contract mining Our expertise in efficient resource extraction includes coal, gold, copper, nickel and iron ore. From feasibility studies and concept planning to comprehensive mine operation and environmental management, our proven track record for excelling under challenging conditions, remote locations and extreme climates, makes us a trusted partner in the markets where we operate. We currently have mining operations in Indonesia, Philippines and Mongolia.


9

ZERO level 1

environmental incidents

74

safety awards

US$3.7 billion

2013 Revenue share by geographical region

combined total value of contracts awarded in 2013

12

19,959 employees

increase on previous

contracts awarded in 2013

Leighton india 8% Vietnam, Laos, China, Thailand & Cambodia 0%

Hong Kong and Macau 41%

Malaysia 3%

US$7.5 billion

20

Leighton offshore 11%

Sri Lanka and Singapore 2%

projects delivered in 2013

8.33% year’s revenue

LAIO 2013 in figures: financial performance

Indonesia 25% Philippines and Guam 4% Mongolia 5%

value of work in hand as of December 31, 2013

82

2013 Revenue share by sector * Civil includes offshore Oil and Gas

projects on going

Building Mining

22%

Civil 53% 25%

2013 Revenue share by business centre Leighton Asia

8%

Leighton Offshore

11%

LAIO 2013 in figures: Snapshot 10


Leighton Welspun India 81%


11

ZERO level 1

environmental incidents

74

safety awards

US$3.7 billion

2013 Revenue share by geographical region

combined total value of contracts awarded in 2013

12

19,959 employees

increase on previous

contracts awarded in 2013

Leighton india 8% Vietnam, Laos, China, Thailand & Cambodia 0%

Hong Kong and Macau 41%

Malaysia 3%

US$7.5 billion

20

Leighton offshore 11%

Sri Lanka and Singapore 2%

projects delivered in 2013

8.33% year’s revenue

LAIO 2013 in figures: financial performance

Indonesia 25% Philippines and Guam 4% Mongolia 5%

value of work in hand as of December 31, 2013

82

2013 Revenue share by sector * Civil includes offshore Oil and Gas

projects on going

Building Mining

22%

Civil 53% 25%

2013 Revenue share by business centre Leighton Asia

8%

Leighton Offshore

11%

LAIO 2013 in figures: Snapshot 10


Leighton Welspun India 81%


11

LAIO 2013 in figures: health and safety performance

Total Recordable Injury Frequency Rate (rolling 12 months)

Safety Lag Indicator Performance and Targets 2013-15

4.20

Table 1

4.12

4.10

4.04 3.97

4.00

LAIO Actual 2013

LAIO Target 2013

LAIO Target 2014

LAIO Target 2015

Total Fatalities

4

0

0

0

Lost time injury frequency rate

1.67

1.25

1.20

1.15

Total recordable injury frequency rate

4.08

4

3.8

3.6

Average Lost Time Rate

53.33

45

45

40

Severity Rate

88.46

60

57.5

57

Class 1 Damage Frequency Rate

0.06

0

0

0

Safety Lag Indicators

3.90

3.81

3.74

Frequency Rate

3.76

3.71

3.70 3.60 3.50 Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13

Class 1 Damage Frequency Rate (rolling 12 months) 0.07 0.06

0.06 0.05

0.05

0.04

0.05

0.04

0.04 0.04 0.03

C1DFR Target

0.04

0.04

Class 1 Damage

0.03

Frequency Rate

0.02 0.01

Safety Lead Indicators

LAIO Actual 2013

LAIO Target 2013

LAIO Target 2014

LAIO Target 2015

Significant Near Miss Incident Frequency Rate (SNMIFR)

6.70

≥ 5.0

≥ 5.0

≥ 5.0

% Close out of Incident Alerts

95.26%

≥ 95%

100%

100%

0

Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13

Loss Time Injury Frequency Rate (rolling 12 months) 1.80 1.62

95.53%

100%

% of Level 1 & 2 Audits Conducted to Schedule

91.16%

100%

100%

100% 100%

1.20

72.72%

% HSE toolbox talks conducted to schedule

103.99%

80%

80%

80%

100%

0.95

1.28

1.15 1.04

LTIFR Target Loss Time Injury Frequency Rate

0.97

0.80 0.60 0

100%

1.07 0.99

1.00

% of PD / PM, Supt, Supervisors / Foreman completed the Strive for LIFE Leadership Course

1.34

1.40 1.28

100%

1.67

1.52

1.60

% Strive for LIFE walks conducted to schedule


0.03

0.03

Table 2

12

TRIFR Target Total Recordable injury

0.04

Safety Lead Indicator Performance Targets 2013-15

4.08

3.99

3.88

3.86

3.80

4.10


100% Sustainability Report 2013

13

LAIO 2013 in figures: health and safety performance

Total Recordable Injury Frequency Rate (rolling 12 months)

Safety Lag Indicator Performance and Targets 2013-15

4.20

Table 1

4.12

4.10

4.04 3.97

4.00

LAIO Actual 2013

LAIO Target 2013

LAIO Target 2014

LAIO Target 2015

Total Fatalities

4

0

0

0

Lost time injury frequency rate

1.67

1.25

1.20

1.15

Total recordable injury frequency rate

4.08

4

3.8

3.6

Average Lost Time Rate

53.33

45

45

40

Severity Rate

88.46

60

57.5

57

Class 1 Damage Frequency Rate

0.06

0

0

0

Safety Lag Indicators

3.90

3.81

3.74

Frequency Rate

3.76

3.71

3.70 3.60 3.50 Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13

Class 1 Damage Frequency Rate (rolling 12 months) 0.07 0.06

0.06 0.05

0.05

0.04

0.05

0.04

0.04 0.04 0.03

C1DFR Target

0.04

0.04

Class 1 Damage

0.03

Frequency Rate

0.02 0.01

Safety Lead Indicators

LAIO Actual 2013

LAIO Target 2013

LAIO Target 2014

LAIO Target 2015

Significant Near Miss Incident Frequency Rate (SNMIFR)

6.70

≥ 5.0

≥ 5.0

≥ 5.0

% Close out of Incident Alerts

95.26%

≥ 95%

100%

100%

0


Loss Time Injury Frequency Rate (rolling 12 months) 1.80 1.62

95.53%

100%

% of Level 1 & 2 Audits Conducted to Schedule

91.16%

100%

100%

100% 100%

1.20

72.72%

% HSE toolbox talks conducted to schedule

103.99%

80%

80%

80%

100%

0.95

1.28

1.15 1.04

LTIFR Target Loss Time Injury Frequency Rate

0.97

0.80 0.60 0

100%

1.07 0.99

1.00

% of PD / PM, Supt, Supervisors / Foreman completed the Strive for LIFE Leadership Course

1.34

1.40 1.28

100%

1.67

1.52

1.60

% Strive for LIFE walks conducted to schedule


0.03

0.03

Table 2

12

TRIFR Target Total Recordable injury

0.04

Safety Lead Indicator Performance Targets 2013-15

4.08

3.99

3.88

3.86

3.80

4.10


100% Sustainability Report 2013

13

LAIO 2013 in figures: employee diversity

Total LAIO employees by gender 100% 80% 60% 40% 20% 0%

2013

2012

Female Staff

Male Staff

Employees by gender 2012-2013 2000 1500

Leighton Asia India and Offshore Locally employed vs.expat ratio 2013

1735 1470

1000

853

500 0

477

367

2012 2013 2012 2013

155

2012 2013

147

152

2012 2013

2012 2013

BU2

Male Staff

Female Staff

(2012)

Male Staff

Female Staff

(2013)

4

1409

3.5

834 561

354 385

BU1

1366

890 170

315 91

2012 2013

88

70

2012 2013 2012 2013

BU3

273

BU4

2012 2013

82

77

79

2012 2013 2012 2013 2012 2013

Leighton offshore

Leighton Welspun

3 2.5 2 1.5 1 0.5

*This table corresponds to 2013 figures for permanent staff only

0 Quarter 1

Quarter 2

Quarter 4

Quarter 3 Target 3.5%

Expat% in total headcount


Promoting local employment 2013 Employee breakdown 2013 5,000 3000

2104

4,969

4,000

2000

1441

1500

3,500 3,000

626

962

1000

2,500 480

500 0

4,870

4,500

108

98

57 BU1

BU2

60

23 BU3

BU4

290

Leighton Offshore

47 Leighton-Welspun

2,000 1,500

2,212 1,553

1,000

1,426

649

537

500

1,488

1,060

839 350

0 Expat

Local

BU1

BU2

*This table corresponds to 2013 figures for permanent staff only Staff

BU3

BU4

6

Leighton offshore

Leighton Welspun

Wages

Note: ‘Staff’ represents Leighton Asia salaried, permanent employees i.e. wages are paid monthly and do not vary according to the hours worked during the period. Note: ‘Wages’ represents Leighton Asia employees paid on an hourly rate i.e. labourers on project sites

14



15

LAIO 2013 in figures: employee diversity

Total LAIO employees by gender 100% 80% 60% 40% 20% 0%

2013

2012

Female Staff

Male Staff

Employees by gender 2012-2013 2000 1500

Leighton Asia India and Offshore Locally employed vs.expat ratio 2013

1735 1470

1000

853

500 0

477

367

2012 2013 2012 2013

155

2012 2013

147

152

2012 2013

2012 2013

BU2

Male Staff

Female Staff

(2012)

Male Staff

Female Staff

(2013)

4

1409

3.5

834 561

354 385

BU1

1366

890 170

315 91

2012 2013

88

70

2012 2013 2012 2013

BU3

273

BU4

2012 2013

82

77

79

2012 2013 2012 2013 2012 2013

Leighton offshore

Leighton Welspun

3 2.5 2 1.5 1 0.5


0 Quarter 1

Quarter 2

Quarter 4

Quarter 3 Target 3.5%

Expat% in total headcount


Promoting local employment 2013 Employee breakdown 2013 5,000 3000

2104

4,969

4,000

2000

1441

1500

3,500 3,000

626

962

1000

2,500 480

500 0

4,870

4,500

108

98

57 BU1

BU2

60

23 BU3

BU4

290

Leighton Offshore

47 Leighton-Welspun

2,000 1,500

2,212 1,553

1,000

1,426

649

537

500

1,488

1,060

839 350

0 Expat

Local

BU1

BU2

*This table corresponds to 2013 figures for permanent staff only Staff

BU3

BU4

6

Leighton offshore

Leighton Welspun

Wages

Note: ‘Staff’ represents Leighton Asia salaried, permanent employees i.e. wages are paid monthly and do not vary according to the hours worked during the period. Note: ‘Wages’ represents Leighton Asia employees paid on an hourly rate i.e. labourers on project sites

14



15

Table 4

LAIO 2013 in figures: environmental performance Scope 2 emissions & energy intensity (kWh/manhours)

Total Scope 1 emissions (tCO2e) & energy intensity Tonnes of carbon dioxide equivalent (tC02-e) 800,000 700,000

730,710

707,228

500,000

0.1

400,000

0.08

300,000

0.06

200,000

0.04

100,000

0.02

0

0 2012

0.9 50

0.14 0.12

0.8

40

Table 3

0.5 0.2 0.2

10

0.0

0

2012

2013

Indirect energy use intensity: 0.61 (kWh/manhours)

Scope 2 emissions (tCO2-e)

Note: Scope 2 emissions are based on emissions factors provided by Intergovernmental Panel on Climate Change and the International Energy Agency.

Total scope 1 GHG emissions (tCO2e) by activity

26,907

4,047

Scope 1 emissions by energy source (tCO2e)

2,756

91,404

454

19,196 196,240

50,271

426,976

584,988

BU1

BU2

BU3

BU4

LO

LWIN

LAIO Target 2014

% of Environment Management System Compliance Audits conducted to schedule

92.8%

100%

100%

% Environmental Tool Box Talks conducted to schedule

100%*

100%

100%

% of projects implementing environmental management plans

N/A

N/A

100%

% of projects implementing waste reduction or resource efficiency initiative

N/A

N/A

100%

Environment Lag Indicator Performance and Targets Environment Lag Indicators

LAIO Actual 2013

LAIO Target 2013

LAIO Target 2014

No. of Level 1 incident

0

0

0


1

≤3

≤3

Environmental Incident Frequency Rate (level 1 & 2)

0.0103

≤0.03

≤0.03

No. of Breaches

0

0

0

No. of Valid Public Complaints

44

≤6

≤6

Carbon intensity (GJ/manhours)*

0.11

Electricity (Kwh)

59,613,413

Diesel (litres)

271,182,211

Petrol (litres)

1,205,199

LPG (litres)

46,236

0.1

Refer to p88 for methodology used to calculate Scope 1 and 2 emissions and related energy intensity factors.

15,339

LAIO Target 2013

Note: All calculations, reporting boundaries, methodologies and definitions are explained in the Appendix on pages 86 - 89

0.4

20

Note: Scope 1 emissions figures reported for 2012 have been adjusted to reflect National Greenhouse Accounts (Australia) emissions factors used for the 2013 reporting period.

46,051

LAIO Actual 2013

*The actual number of toolbox talks exceeded the scheduled toolbox talks for 2013: Scheduled: 15,668; Actual: 15,752

0.6

30

Direct energy use intensity: 0.11 (GJ/manhours)

Total scope 1 emissions (tCO2e) by business centre

Environment Lead Indicators

0.7

38,039,765

2013


1.0

59,613,413

60

0.16

600,000

Intensity

kWh (000)

Intensity

Environment Lead Indicator Performance and Targets

Mining

Build

0.10

777,667 Total greenhouse gas (GHG) emissions tonnes carbon dioxide equivalent (tCO2e) Scope 1 (direct emissions)

730,710

Scope 2 (indirect emissions)

46,957

Solid waste intensity (KG/manhours)

1.15

1.13

727,501

Civil

Office

Diesel

Petrol

LPG

Total waste generated (tonne):

162,196

Solid

112,257

Liquid

49,939

% of total waste generated (solid/ liquid) treated using: Note: In October 2013, the LAIO businesses were restructured from six business units to five (refer to the Corporate Governance section on page 22 for an explanation of the restructuring). Emissions figures reported for 2013 correspond to the original six business unit structure for the 2013 reporting period.

16


Landfill

63%

Reused and Recycled

33%

Incinerated

4%

Manhours worked

97,523,806

N/A


17

Table 4

LAIO 2013 in figures: environmental performance Scope 2 emissions & energy intensity (kWh/manhours)

Total Scope 1 emissions (tCO2e) & energy intensity Tonnes of carbon dioxide equivalent (tC02-e) 800,000 700,000

730,710

707,228

500,000

0.1

400,000

0.08

300,000

0.06

200,000

0.04

100,000

0.02

0

0 2012

0.9 50

0.14 0.12

0.8

40

Table 3

0.5 0.2 0.2

10

0.0

0

2012

2013

Indirect energy use intensity: 0.61 (kWh/manhours)


Note: Scope 2 emissions are based on emissions factors provided by Intergovernmental Panel on Climate Change and the International Energy Agency.

Total scope 1 GHG emissions (tCO2e) by activity

26,907

4,047

Scope 1 emissions by energy source (tCO2e)

2,756

91,404

454

19,196 196,240

50,271

426,976

584,988

BU1

BU2

BU3

BU4

LO

LWIN

LAIO Target 2014

% of Environment Management System Compliance Audits conducted to schedule

92.8%

100%

100%

% Environmental Tool Box Talks conducted to schedule

100%*

100%

100%

% of projects implementing environmental management plans

N/A

N/A

100%

% of projects implementing waste reduction or resource efficiency initiative

N/A

N/A

100%

Environment Lag Indicator Performance and Targets Environment Lag Indicators

LAIO Actual 2013

LAIO Target 2013

LAIO Target 2014


0

0

0


1

≤3

≤3

Environmental Incident Frequency Rate (level 1 & 2)

0.0103

≤0.03

≤0.03

No. of Breaches

0

0

0

No. of Valid Public Complaints

44

≤6

≤6

Carbon intensity (GJ/manhours)*

0.11

Electricity (Kwh)

59,613,413

Diesel (litres)

271,182,211

Petrol (litres)

1,205,199

LPG (litres)

46,236

0.1

Refer to p88 for methodology used to calculate Scope 1 and 2 emissions and related energy intensity factors.

15,339

LAIO Target 2013

Note: All calculations, reporting boundaries, methodologies and definitions are explained in the Appendix on pages 86 - 89

0.4

20

Note: Scope 1 emissions figures reported for 2012 have been adjusted to reflect National Greenhouse Accounts (Australia) emissions factors used for the 2013 reporting period.

46,051

LAIO Actual 2013

*The actual number of toolbox talks exceeded the scheduled toolbox talks for 2013: Scheduled: 15,668; Actual: 15,752

0.6

30

Direct energy use intensity: 0.11 (GJ/manhours)

Total scope 1 emissions (tCO2e) by business centre

Environment Lead Indicators

0.7

38,039,765

2013


1.0

59,613,413

60

0.16

600,000

Intensity

kWh (000)

Intensity

Environment Lead Indicator Performance and Targets

Mining

Build

0.10

777,667 Total greenhouse gas (GHG) emissions tonnes carbon dioxide equivalent (tCO2e) Scope 1 (direct emissions)

730,710

Scope 2 (indirect emissions)

46,957

Solid waste intensity (KG/manhours)

1.15

1.13

727,501

Civil

Office

Diesel

Petrol

LPG

Total waste generated (tonne):

162,196

Solid

112,257

Liquid

49,939

% of total waste generated (solid/ liquid) treated using: Note: In October 2013, the LAIO businesses were restructured from six business units to five (refer to the Corporate Governance section on page 22 for an explanation of the restructuring). Emissions figures reported for 2013 correspond to the original six business unit structure for the 2013 reporting period.

16


Landfill

63%

Reused and Recycled

33%

Incinerated

4%

Manhours worked

97,523,806

N/A


17

LAIO waste footprint

LAIO solid waste management 2013 (tonnes)

80000

Solid Waste & Intensity (kg/manhours) Solid Waste

120,000

1.20

100,000

1.15

80,000

1.10

60,000

1.05

40,000

1.00

20,000

0.95

0

Intensity:1.15 (kg/manhours)

60000 40000 20000 0

BU1

BU2

Incinerated

Recycled

BU3

BU4

LO

LWIN

Landfilled

0.90

2012

2013

LAIO liquid waste management 2013 (cubic metres)

Liquid waste Liquid Waste

0.60

60,000.00 50,000.00 40,000.00

40000

0.50

30000

0.40

20000

0.30

30,000.00

Intensity: 0.51 (kg/manhours)

10000 0

0.20

20,000.00

BU1

BU2

Incinerated

Recycled

BU3

BU4

LO

LWIN

0.10

10,000.00

0.00

0

2012

Landfilled

2013

LAIO waste footprint: liquid and solid waste 80000 60000 40000 20000 0

BU1

Total Solid

18


BU2

BU3

BU4

LO

LWIN

Total liquid


19

LAIO waste footprint

LAIO solid waste management 2013 (tonnes)

80000

Solid Waste & Intensity (kg/manhours) Solid Waste

120,000

1.20

100,000

1.15

80,000

1.10

60,000

1.05

40,000

1.00

20,000

0.95

0

Intensity:1.15 (kg/manhours)

60000 40000 20000 0

BU1

BU2

Incinerated

Recycled

BU3

BU4

LO

LWIN

Landfilled

0.90

2012

2013

LAIO liquid waste management 2013 (cubic metres)

Liquid waste Liquid Waste

0.60

60,000.00 50,000.00 40,000.00

40000

0.50

30000

0.40

20000

0.30

30,000.00

Intensity: 0.51 (kg/manhours)

10000 0

0.20

20,000.00

BU1

BU2

Incinerated

Recycled

BU3

BU4

LO

LWIN

0.10

10,000.00

0.00

0

2012

Landfilled

2013

LAIO waste footprint: liquid and solid waste 80000 60000 40000 20000 0

BU1

Total Solid

18


BU2

BU3

BU4

LO

LWIN

Total liquid


19

2013 highlights Projects delivered:

Major projects awarded:

Infrastructure Project

Infrastructure projects

Hong Kong & Macau

Leighton India

Hong Kong Academy - BEAM PLUS (provisional Platinum) North Lantau Hospital - Platinum BEAM Black Point Gas Supply Project Wynn Fire Detection & Voice Evacuation System Work Wynn Palace - Ground Improvement Wynn Palace - Pre-Construction Services Sludge Treatment Facility (waste to energy)

Proctor and Gamble earthworks Mongolia Salkhit Wind Farm

Hong Kong & Macau

Tin Shui Wai Hospital – awarded by HKSAR Architectural Services Department

Hong Kong & Macau

Tin Shui Wai Hospital (MEP Subcontractor Work) - awarded by Leighton Able Joint Venture

Hong Kong & Macau

Process Electrical Works - Sludge Treatment Facility (awarded by Veolia WaterVeolia Environmental Services Ltd HK) - Waste to energy

Indonesia Caterpillar LMT Facility

India

DLF Camellias (Gurgaon) – awarded by DLF Ltd.

Indonesia

Indonesia Supreme Rajabasa, Geothermal Project

CCA Cibitung Project SEA Construction US Embassy Vientiane Laos - aiming for silver LEED certification

Offshore Projects Qatargas SPM#1 Floating Hose Replacement Shell Bukom SBM 48 Subsea Pipeline Repair

Indonesia Supreme Energy Rantau Dedap, Geothermal Project Hong Kong and Macau Wynn Cotai Resort - Overall Project - awarded by Wynn Resorts

Leighton Engineering Cape Lambert

Hong Kong and Macau Hung Hom Station & Stabling Sidings - awarded by Mass Transit Rail (MTR)

APLNG Jetty Piles Davao Power Plant Steel Piles

Singapore Springleaf Station and Associated Tunnels – awarded by Land Transport Authority Singapore Philippines

Belle Grande Casino – awarded by MCE Leisure (Philippines) Corp

Indonesia

Evoluzione Motorcycle Tyre Factory – awarded by PT Evoluzione Tyre Indonesia (JV between Pirelli & Astra)

India Mohali Water Pipeline Project – awarded by Greater Mohali Area Development Authority (GMADA) Malaysia

Tg Bin 4 Turbine Hall Civil Works – awarded by Madajaya Corporation Berhad

Offshore Projects India

Heera Redevelopment Phase-II Pipeline Project - awarded by Oil and Natural Gas Company (ONGC)

India

Additional Pipeline Project - awarded by Oil and Natural Gas Company (ONGC)

Indonesia

Balongan Pipeline Project – awarded by PT Timas Suplindo

Mining Indonesia Hong Kong Academy BEAM Plus (provisional Platinum)

20


North Lantau Hospital, Platinum BEAM certified

Salkhit Wind Farm, Mongolia

AKT-LCI Mining Services – awarded by PT Asmin Koalindo Tuhup

Green building certified:

BEAM: Hong Kong’s Building Environmental Assessment Method LEED: Leadership in Energy and Environmental Design

Renewable energy projects


21

2013 highlights Projects delivered:

Major projects awarded:

Infrastructure Project

Infrastructure projects

Hong Kong & Macau

Leighton India

Hong Kong Academy - BEAM PLUS (provisional Platinum) North Lantau Hospital - Platinum BEAM Black Point Gas Supply Project Wynn Fire Detection & Voice Evacuation System Work Wynn Palace - Ground Improvement Wynn Palace - Pre-Construction Services Sludge Treatment Facility (waste to energy)

Proctor and Gamble earthworks Mongolia Salkhit Wind Farm

Hong Kong & Macau

Tin Shui Wai Hospital – awarded by HKSAR Architectural Services Department

Hong Kong & Macau

Tin Shui Wai Hospital (MEP Subcontractor Work) - awarded by Leighton Able Joint Venture

Hong Kong & Macau

Process Electrical Works - Sludge Treatment Facility (awarded by Veolia WaterVeolia Environmental Services Ltd HK) - Waste to energy

Indonesia Caterpillar LMT Facility

India

DLF Camellias (Gurgaon) – awarded by DLF Ltd.

Indonesia

Indonesia Supreme Rajabasa, Geothermal Project

CCA Cibitung Project SEA Construction US Embassy Vientiane Laos - aiming for silver LEED certification

Offshore Projects Qatargas SPM#1 Floating Hose Replacement Shell Bukom SBM 48 Subsea Pipeline Repair

Indonesia Supreme Energy Rantau Dedap, Geothermal Project Hong Kong and Macau Wynn Cotai Resort - Overall Project - awarded by Wynn Resorts

Leighton Engineering Cape Lambert

Hong Kong and Macau Hung Hom Station & Stabling Sidings - awarded by Mass Transit Rail (MTR)

APLNG Jetty Piles Davao Power Plant Steel Piles

Singapore Springleaf Station and Associated Tunnels – awarded by Land Transport Authority Singapore Philippines

Belle Grande Casino – awarded by MCE Leisure (Philippines) Corp

Indonesia

Evoluzione Motorcycle Tyre Factory – awarded by PT Evoluzione Tyre Indonesia (JV between Pirelli & Astra)

India Mohali Water Pipeline Project – awarded by Greater Mohali Area Development Authority (GMADA) Malaysia

Tg Bin 4 Turbine Hall Civil Works – awarded by Madajaya Corporation Berhad

Offshore Projects India

Heera Redevelopment Phase-II Pipeline Project - awarded by Oil and Natural Gas Company (ONGC)

India

Additional Pipeline Project - awarded by Oil and Natural Gas Company (ONGC)

Indonesia

Balongan Pipeline Project – awarded by PT Timas Suplindo

Mining Indonesia Hong Kong Academy BEAM Plus (provisional Platinum)

20


North Lantau Hospital, Platinum BEAM certified

Salkhit Wind Farm, Mongolia

AKT-LCI Mining Services – awarded by PT Asmin Koalindo Tuhup

Green building certified:

BEAM: Hong Kong’s Building Environmental Assessment Method LEED: Leadership in Energy and Environmental Design

Renewable energy projects


21

Corporate governance Leighton Asia, India and Offshore is a management entity representing three operating companies including

The result of the re-organisation saw our Philippines operation

The restructure also saw a reorganisation of our senior

David Palser

merge with the South East Asia Construction Business.

management:

previously General Manager, Pre Contracts, Risk and Governance, was appointed as Executive General Manager,

Leighton Asia Limited (LAL), Leighton Offshore (100% ownership) and, until December 2013, Leighton-Welspun

We aligned our coal mining operations, with the UHG Mine in

Tony Harvey

Contractors Limited – 60.1%), as a single consolidated

Mongolia reporting to our Mining Division in Indonesia.

now leads the Southeast Asia Construction operation.

Others changes include the alignment of our fabrication

Patrick Brothers

During 2012, an OpCo Board Governance review was

and modularisation business (LFM) in Thailand and our

joined Leighton Asia, India and Offshore in the role of

conducted. It was completed late 2012 and approved by the

On 27 December 2013, Leighton Holdings publicly

engineering business Leighton Engineering (LE) in KL to report

Chief Development Officer.

LHL Board at its meeting on 2 November 2012. On the basis

announced that it had purchased the Welspun Group’s

to Leighton Offshore.

Advisory Board

Operating Company wholly-owned by Leighton Holdings (LHL).

of the review, it was agreed that:

Dean Cowley

39.9 per cent stake in the Indian-based joint venture, to secure 100 per cent ownership of this business.

Executive compensation

was promoted to the role of General Manager, Safety

Advisory Boards would be established for each of the

to assume overall responsibility for driving forward our

Operating Companies;

This business was renamed Leighton India and continues

Executive compensation has both fixed and variable (at

strategic safety agenda and promoting our Strive for L.I.F.E

to report through Leighton Asia, India and Offshore under

risk) remuneration. The variable component is in the form of

initiative.

LAIO Managing Director Ian Edwards.

Short Term Incentive (STI) bonuses and is limited to senior management and the executive leadership team.

The consolidated financial and non-financial performance

Paul Kimberley previously General Manager of our Philippines,

existing Operating Company boards would be replaced with Leighton Group and Operating Company executives

The STI bonus structure is linked to a number of financial and

Mongolia and LFM operation, was appointed as Head of

for reporting to its parent company, Leighton Holdings.

non-financial indicators, the latter of which include, among

Commercial on the Wynn Macau project. LAIO’s Advisory Board was established on 2 November, 2012.

other things, safety performance.

Leigh Stewart

It comprises four members, all of whom are non-Executive

Discretionary bonuses for employees not participating in the

previously General Manager, People, Safety Environment

directors, with the purpose of providing advisory advice and

STI scheme are linked to the performance of their respective

was appointed as Executive General Manager, People and

guidance to all entities within LAIO management control.

departments, sectors and overall business performance.

Sustainability.

In November 2013, LAIO initiated a restructuring of its Executive Leadership team (ELT). LAIO’s six business units were consolidated into five.

2012

2013

BU1 Hong Kong & Macau

Hong Kong and Macau Hong Kong & Macau

BU2 Mongolia and Philippines

Southeast Asia Construction Malaysia, Singapore, Philippines, Thailand, Indo-China

BU3 Indonesia BU4 Malaysia, Singapore, Thailand, Laos, Vietnam Leighton Offshore Malaysia, UAE and Iraq

the role and responsibilities of the Operating Company boards to statutory responsibilities would be reduced; and

of the three companies is consolidated at the LAIO level

functional support model and a re-organisation of its

Risk and Governance.

Indonesia and Asia Mining Indonesia & Mongolia Leighton Offshore LFM, Leighton Engineering Leighton India India

Leighton-Welspun India 22



23

Corporate governance Leighton Asia, India and Offshore is a management entity representing three operating companies including

The result of the re-organisation saw our Philippines operation

The restructure also saw a reorganisation of our senior

David Palser

merge with the South East Asia Construction Business.

management:

previously General Manager, Pre Contracts, Risk and Governance, was appointed as Executive General Manager,

Leighton Asia Limited (LAL), Leighton Offshore (100% ownership) and, until December 2013, Leighton-Welspun

We aligned our coal mining operations, with the UHG Mine in

Tony Harvey

Contractors Limited – 60.1%), as a single consolidated

Mongolia reporting to our Mining Division in Indonesia.

now leads the Southeast Asia Construction operation.

Others changes include the alignment of our fabrication

Patrick Brothers

During 2012, an OpCo Board Governance review was

and modularisation business (LFM) in Thailand and our

joined Leighton Asia, India and Offshore in the role of

conducted. It was completed late 2012 and approved by the

On 27 December 2013, Leighton Holdings publicly

engineering business Leighton Engineering (LE) in KL to report

Chief Development Officer.

LHL Board at its meeting on 2 November 2012. On the basis

announced that it had purchased the Welspun Group’s

to Leighton Offshore.

Advisory Board

Operating Company wholly-owned by Leighton Holdings (LHL).

of the review, it was agreed that:

Dean Cowley

39.9 per cent stake in the Indian-based joint venture, to secure 100 per cent ownership of this business.


was promoted to the role of General Manager, Safety

Advisory Boards would be established for each of the

to assume overall responsibility for driving forward our

Operating Companies;

This business was renamed Leighton India and continues

Executive compensation has both fixed and variable (at

strategic safety agenda and promoting our Strive for L.I.F.E

to report through Leighton Asia, India and Offshore under

risk) remuneration. The variable component is in the form of

initiative.

LAIO Managing Director Ian Edwards.

Short Term Incentive (STI) bonuses and is limited to senior management and the executive leadership team.

The consolidated financial and non-financial performance

Paul Kimberley previously General Manager of our Philippines,

existing Operating Company boards would be replaced with Leighton Group and Operating Company executives

The STI bonus structure is linked to a number of financial and

Mongolia and LFM operation, was appointed as Head of

for reporting to its parent company, Leighton Holdings.

non-financial indicators, the latter of which include, among

Commercial on the Wynn Macau project. LAIO’s Advisory Board was established on 2 November, 2012.

other things, safety performance.

Leigh Stewart

It comprises four members, all of whom are non-Executive

Discretionary bonuses for employees not participating in the

previously General Manager, People, Safety Environment

directors, with the purpose of providing advisory advice and

STI scheme are linked to the performance of their respective

was appointed as Executive General Manager, People and

guidance to all entities within LAIO management control.

departments, sectors and overall business performance.

Sustainability.

In November 2013, LAIO initiated a restructuring of its Executive Leadership team (ELT). LAIO’s six business units were consolidated into five.

2012

2013

BU1 Hong Kong & Macau

Hong Kong and Macau Hong Kong & Macau

BU2 Mongolia and Philippines

Southeast Asia Construction Malaysia, Singapore, Philippines, Thailand, Indo-China

BU3 Indonesia BU4 Malaysia, Singapore, Thailand, Laos, Vietnam Leighton Offshore Malaysia, UAE and Iraq

the role and responsibilities of the Operating Company boards to statutory responsibilities would be reduced; and

of the three companies is consolidated at the LAIO level

functional support model and a re-organisation of its

Risk and Governance.

Indonesia and Asia Mining Indonesia & Mongolia Leighton Offshore LFM, Leighton Engineering Leighton India India

Leighton-Welspun India 22



23

Our stakeholders Stakeholder

Parent companies: Leighton Holdings Hochtief ACS

Expectations for 2013

CEO roadshows

Structure business plans around the 2013 Leighton Group corporate strategy

Regular board meetings

Remain compliant with local regulations Generate and promptly file tax revenues Provide transparency and integrity in all business transactions

Government

Operate in a manner that is environmentally and socially responsible Facilitate knowledge transfer in international industry best practice Facilitate technology transfer through strategic partnerships Business performance in accordance with international standards

Employees

How LAIO addressed stakeholder expectations

Deliver our vision to be renowned for excellence through our operating brands and the empowerment of our people

Set and achieve realistic goals set out within business plans Regulator

Stakeholder

Competitive remuneration Job security Safe working environment Career and professional development

Regular client interfacing

Deliver high quality projects at competitive rates

Regular reporting (according to client needs)

Meet JV expectations

Safety training

Adopt international industry best-practice

Supplier engagement via development of procurement rating system

Provide clear procurement guidelines Fair payment terms

Regulatory compliance reports

Provide a safe working environment

Community

Ensure the quality of common goods is preserved (preserve soil quality, air quality, water quality)

Application of Strive for Life Essentials which define the way all Class 1 Risk activities are to be managed Robust application of a focussed Class 1 Risk identification and mitigation process Direct stakeholder engagement (to the extent permitted by client relationship) Complaints hotline (project specific) Community liaison officers

Collaboration and support to address local issues (i.e. Corporate Community Investment, education and up-skilling of local communities)

Support for local communities by providing employment opportunities Support local supply chain

Strategic Corporate Community Investment initiatives

Adoption of new technologies and business partnerships that facilitate knowledge transfer

Address concerns and expectations via community support initiatives

Up-skilling local communities

Minimise or mitigate impact of our operations by conducting reviews of client

Compliance with client EIA recommendations

EIA and EMP related documents and consult with them where we have access to the information prior to contract award

Compliance with Leighton’s internal minimum environmental standard Identification of environmental risks at pre-tender stage using our ARM

Bi-annual performance development reviews Management development Market benchmarking of salary data Vocational/technical skill development

Performance recognition

Safety training and workshops

Support to carry out duties in accordance with LAIO Code of Business Conduct

Recognition awards

Staff surveys Recruitment drives Mentoring schemes Further education opportunities (Leighton Masters, scholarship and training schemes) Regular internal corporate communications (inSite and Strive for Life magazines, intranet) Family/ Community engagement


Business partners, sub-contractors and suppliers

Environmental impact assessment statements

Participation in local business advisory panels, industry and sustainable development committees to address local issues (C&D waste management, carbon legislation and climate change adaptation)

Deliver our projects on time, within budget

Comply with internal, national and international standards on safety and environmental performance

Regular workshops Quarterly strategy and update meetings


Deploy industry best practice Remain compliant with local legislation

Monthly and quarterly upward reporting

Cultural awareness training

24

Clients


Environment

Upon contract award, review comprehensive risk assessments with project team to ensure we identify all the foreseeable issues Develop project environmental plans to ensure we capture all the relevant controls and monitoring requirements Conduct regular internal auditing Conduct regular recertification audits for ISO 14001

Maintaining most favourable expat-local employment ratio for community

Deployment of Environmental Management System to identify and mitigate impacts Internal training to promote awareness surrounding emissions reduction via energy and fuel efficiency, waste reduction, biodiversity protection, deforestation, sediment and erosion control Projects submit monthly reports capturing main energy and waste data Ensure any environment-related issues are addressed promptly through regular reporting to and meetings with Business Unit Executive Committee Sustainability Report 2013

25

Our stakeholders Stakeholder

Parent companies: Leighton Holdings Hochtief ACS


CEO roadshows

Structure business plans around the 2013 Leighton Group corporate strategy

Regular board meetings

Remain compliant with local regulations Generate and promptly file tax revenues Provide transparency and integrity in all business transactions

Government

Operate in a manner that is environmentally and socially responsible Facilitate knowledge transfer in international industry best practice Facilitate technology transfer through strategic partnerships Business performance in accordance with international standards

Employees


Deliver our vision to be renowned for excellence through our operating brands and the empowerment of our people

Set and achieve realistic goals set out within business plans Regulator

Stakeholder

Competitive remuneration Job security Safe working environment Career and professional development

Regular client interfacing

Deliver high quality projects at competitive rates

Regular reporting (according to client needs)

Meet JV expectations

Safety training

Adopt international industry best-practice

Supplier engagement via development of procurement rating system

Provide clear procurement guidelines Fair payment terms

Regulatory compliance reports

Provide a safe working environment

Community

Ensure the quality of common goods is preserved (preserve soil quality, air quality, water quality)

Application of Strive for Life Essentials which define the way all Class 1 Risk activities are to be managed Robust application of a focussed Class 1 Risk identification and mitigation process Direct stakeholder engagement (to the extent permitted by client relationship) Complaints hotline (project specific) Community liaison officers

Collaboration and support to address local issues (i.e. Corporate Community Investment, education and up-skilling of local communities)

Support for local communities by providing employment opportunities Support local supply chain

Strategic Corporate Community Investment initiatives

Adoption of new technologies and business partnerships that facilitate knowledge transfer

Address concerns and expectations via community support initiatives

Up-skilling local communities

Minimise or mitigate impact of our operations by conducting reviews of client

Compliance with client EIA recommendations

EIA and EMP related documents and consult with them where we have access to the information prior to contract award

Compliance with Leighton’s internal minimum environmental standard Identification of environmental risks at pre-tender stage using our ARM

Bi-annual performance development reviews Management development Market benchmarking of salary data Vocational/technical skill development

Performance recognition

Safety training and workshops

Support to carry out duties in accordance with LAIO Code of Business Conduct

Recognition awards

Staff surveys Recruitment drives Mentoring schemes Further education opportunities (Leighton Masters, scholarship and training schemes) Regular internal corporate communications (inSite and Strive for Life magazines, intranet) Family/ Community engagement


Business partners, sub-contractors and suppliers

Environmental impact assessment statements

Participation in local business advisory panels, industry and sustainable development committees to address local issues (C&D waste management, carbon legislation and climate change adaptation)

Deliver our projects on time, within budget

Comply with internal, national and international standards on safety and environmental performance

Regular workshops Quarterly strategy and update meetings


Deploy industry best practice Remain compliant with local legislation

Monthly and quarterly upward reporting

Cultural awareness training

24

Clients


Environment

Upon contract award, review comprehensive risk assessments with project team to ensure we identify all the foreseeable issues Develop project environmental plans to ensure we capture all the relevant controls and monitoring requirements Conduct regular internal auditing Conduct regular recertification audits for ISO 14001

Maintaining most favourable expat-local employment ratio for community

Deployment of Environmental Management System to identify and mitigate impacts Internal training to promote awareness surrounding emissions reduction via energy and fuel efficiency, waste reduction, biodiversity protection, deforestation, sediment and erosion control Projects submit monthly reports capturing main energy and waste data Ensure any environment-related issues are addressed promptly through regular reporting to and meetings with Business Unit Executive Committee Sustainability Report 2013

25

Risk management


Active Risk Management

Operating in the construction, mining and oil &

Enhancing Risk Maturity

Stakeholders Surpass expectations

gas sectors, the impact on air, water, ambient At LAIO, risks and opportunities are managed

Throughout the second half of 2013, our risk

environment, resources and communities arising

via a fully integrated, real time web-based

team focussed on team building and risk

from our core activities are material.

system, Active Risk Manager (ARM).

management system improvements. The LAIO Risk Management Policy and

less energy, both reduces our materials

to the business as well as those that could

Standards were launched in October 2013. The

impact and translates into immediate and

substantively influence the decisions of

Crisis Management Standard, Procedure and

significant savings. Similarly, reducing waste

our stakeholders, we identify and assess

Plan were revised and issued with a successful

on our construction sites and maximising

opportunities and risks using a risk matrix

audit conducted by Leighton Holdings and

the opportunity for materials reuse across

comprising nine levels, covering thirteen key

completed in November 2013.

projects, delivers environmental benefits, as well as savings related to procurement, avoided

areas including: For 2014 the focus will be on the

transport costs and landfill fees.

Leighton

SMART

Sustainability Managing all resources for tomorrow

Workplace Health and Safety

implementation of the Functional Support

Impact on Margin or PBT

Operating Model. This represents a fundamental

In recent years LAIO has been raising the bar

Financial Impact on Working Capital or

shift in the way risk management is supported

on environmental performance and resource

Securities

throughout the business and should result in

efficiency through green office initiatives, fuel

Security

significantly increased capability, consistency

efficiency and waste management campaigns

Physical Environment

and effectiveness.

(Please refer to pages 52-59).

Legal/Regulatory

In parallel with this, several initiatives already

To ensure resource efficiency becomes standard

underway at site level; and carving out sector-

Management Impact

underway will continue to enhance the value of

business practice, in 2013 LAIO appointed a

specific sustainability strategies for our mining

Schedule Impact to Critical Path

Active Risk Management (ARM) software and

Sustainability Manager to work closely with

and construction sectors.

the risk management processes to the business.

LAIO’s respective business units and relevant

Environment Minimise our impact

In order to identify risks considered material

Energy Efficiency Reduce our emissions

Reducing our carbon footprint and using

Resource Efficiency Minimise our waste streams

Reputation/Community/Media

Risk ranking is based on probability of

stakeholders in order to develop a sustainability

By the close of 2013 we reached consensus

occurrence, a qualitative assessment and the

strategy that sets out clear energy, fuel and

on a roadmap that will see us through to

recurrence timeframe.

waste management frameworks and targets and

2016, by which we can achieve our SMART

to communicate best practice to the group.

goal of embedding resource efficiency into our corporate culture. Through effective and

By the close of 2013, significant steps had

efficient use of materials and resources we will

been taken along our path to sustainability.

remain commercially competitive in a manner

These included defining our vision; determining

that is consistent with our core values, without

our level of commitment among employees;

compromising our business opportunities of

holding our first company-wide energy efficiency

tomorrow.

workshop and identifying efficiency targets for diesel consumption in 2014; launching corporate green office schemes to complement the host of excellent green office initiatives

26



27

Risk management


Active Risk Management

Operating in the construction, mining and oil &

Enhancing Risk Maturity

Stakeholders Surpass expectations

gas sectors, the impact on air, water, ambient At LAIO, risks and opportunities are managed

Throughout the second half of 2013, our risk

environment, resources and communities arising

via a fully integrated, real time web-based

team focussed on team building and risk

from our core activities are material.

system, Active Risk Manager (ARM).

management system improvements. The LAIO Risk Management Policy and

less energy, both reduces our materials

to the business as well as those that could

Standards were launched in October 2013. The

impact and translates into immediate and

substantively influence the decisions of

Crisis Management Standard, Procedure and

significant savings. Similarly, reducing waste

our stakeholders, we identify and assess

Plan were revised and issued with a successful

on our construction sites and maximising

opportunities and risks using a risk matrix

audit conducted by Leighton Holdings and

the opportunity for materials reuse across

comprising nine levels, covering thirteen key

completed in November 2013.

projects, delivers environmental benefits, as well as savings related to procurement, avoided

areas including: For 2014 the focus will be on the

transport costs and landfill fees.

Leighton

SMART

Sustainability Managing all resources for tomorrow

Workplace Health and Safety

implementation of the Functional Support

Impact on Margin or PBT

Operating Model. This represents a fundamental

In recent years LAIO has been raising the bar

Financial Impact on Working Capital or

shift in the way risk management is supported

on environmental performance and resource

Securities

throughout the business and should result in

efficiency through green office initiatives, fuel

Security

significantly increased capability, consistency

efficiency and waste management campaigns

Physical Environment

and effectiveness.

(Please refer to pages 52-59).

Legal/Regulatory

In parallel with this, several initiatives already

To ensure resource efficiency becomes standard

underway at site level; and carving out sector-

Management Impact

underway will continue to enhance the value of

business practice, in 2013 LAIO appointed a

specific sustainability strategies for our mining

Schedule Impact to Critical Path

Active Risk Management (ARM) software and

Sustainability Manager to work closely with

and construction sectors.

the risk management processes to the business.

LAIO’s respective business units and relevant

Environment Minimise our impact

In order to identify risks considered material

Energy Efficiency Reduce our emissions

Reducing our carbon footprint and using

Resource Efficiency Minimise our waste streams

Reputation/Community/Media

Risk ranking is based on probability of

stakeholders in order to develop a sustainability

By the close of 2013 we reached consensus

occurrence, a qualitative assessment and the

strategy that sets out clear energy, fuel and

on a roadmap that will see us through to

recurrence timeframe.

waste management frameworks and targets and

2016, by which we can achieve our SMART

to communicate best practice to the group.

goal of embedding resource efficiency into our corporate culture. Through effective and

By the close of 2013, significant steps had

efficient use of materials and resources we will

been taken along our path to sustainability.

remain commercially competitive in a manner

These included defining our vision; determining

that is consistent with our core values, without

our level of commitment among employees;

compromising our business opportunities of

holding our first company-wide energy efficiency

tomorrow.

workshop and identifying efficiency targets for diesel consumption in 2014; launching corporate green office schemes to complement the host of excellent green office initiatives

26



27

Materiality stakeholder engagement exercise was

strategies of our clients and competition in order

conducted to ensure that our sustainability

to gain a broader understanding of stakeholder

strategy addresses the expectations and

expectations and perceived material risks

concerns of our stakeholders. The engagement

across our sectors.


process took the form of an employee survey, questionnaires and one-to-one interviews with

Environmental incidents and remediation Energy use and management Fuel use and management Waste management GHG emissions reduction Biodiversity impact

Environment

Leadership and Governance

Environmental and Social Governance issues

Business Model

Social Capital

Human Capital

Communications and engagement Corporate Community Investment Client satisfaction Addressing impacts

Employee health and safety Safety incidents and investigation Training and development Recruitment and retention Diversity and equal opportunity

l

Importance to stakeholders

staff and clients, supplemented with

High importance

desk-top research into the sustainability

22

14

1 2 5 3 4

10

13 25

17

24 23

7

8

9

15

6 11

12 16

18 20

21

19

Low importance

In 2013 a preliminary internal and external

High importance to stakeholders High influence on business success 1

Class 1 safety incidents and / or fatality

2

Long-term viability of core business

3

Business ethics and competitive behaviour

4

Recruitment and retention

5

Commodity market volatility

6

Subcontractor liabilities

7

Environmental incidents and management

8

Fuel use and management

9

Waste management

10

Communications and engagement

11

Employee health and safety

12

Training and development

13

Regulatory certainty

14


15

Industrial relations

16

Product societal value

17

Diversity and equal opportunity

Low importance to stakeholders High influence on business success 18

Low influence

High influence

Influence on business success

19

Policies and standards

20

Supply chain standards and selection

21

Supply chain engagement and transparency

High importance to stakeholders Low-moderate influence on business success 22

The following preliminary materiality assessment is based on primary stakeholder engagement with: •

Parent company

•

Management (HSE, Risk, Commercial, People and Talent, Ethics and Compliance and Business Performance managers)

•

Employees (via an internal sustainability survey)

•

Clients (via a survey and face-to-face interviews)

•

Review of our peers’ sustainability strategies within in our geographical scope

28


Business ethics and competitive behavior Policies and standards Executive compensation Supply chain standards and selection Supply chain engagement and transparency

Labour availability

Corporate Community Investment

23

Energy use and management

24

GHG emissions reduction

25

Biodiversity impact

To ensure that stakeholder engagement remains an on-going process throughout the business, standards and procedures were drafted in 2013 to

Long-term viability of core business Industrial relations Commodity market volatility Labour availability Subcontractor liabilities Product societal value (legacy of quality infrastructure) Commercial competitiveness Regulatory certainty

internalise stakeholder engagement as part of our risk management process and to support our Environmental Management and Corporate Community Investment programmes. These will be implemented in 2014.


29

Materiality stakeholder engagement exercise was

strategies of our clients and competition in order

conducted to ensure that our sustainability

to gain a broader understanding of stakeholder

strategy addresses the expectations and

expectations and perceived material risks

concerns of our stakeholders. The engagement

across our sectors.


process took the form of an employee survey, questionnaires and one-to-one interviews with

Environmental incidents and remediation Energy use and management Fuel use and management Waste management GHG emissions reduction Biodiversity impact

Environment

Leadership and Governance

Environmental and Social Governance issues

Business Model

Social Capital

Human Capital

Communications and engagement Corporate Community Investment Client satisfaction Addressing impacts

Employee health and safety Safety incidents and investigation Training and development Recruitment and retention Diversity and equal opportunity

l

Importance to stakeholders

staff and clients, supplemented with

High importance

desk-top research into the sustainability

22

14

1 2 5 3 4

10

13 25

17

24 23

7

8

9

15

6 11

12 16

18 20

21

19

Low importance

In 2013 a preliminary internal and external

High importance to stakeholders High influence on business success 1

Class 1 safety incidents and / or fatality

2

Long-term viability of core business

3

Business ethics and competitive behaviour

4

Recruitment and retention

5

Commodity market volatility

6

Subcontractor liabilities

7

Environmental incidents and management

8

Fuel use and management

9

Waste management

10

Communications and engagement

11

Employee health and safety

12

Training and development

13

Regulatory certainty

14


15

Industrial relations

16

Product societal value

17


Low importance to stakeholders High influence on business success 18

Low influence

High influence

Influence on business success

19

Policies and standards

20

Supply chain standards and selection

21

Supply chain engagement and transparency

High importance to stakeholders Low-moderate influence on business success 22

The following preliminary materiality assessment is based on primary stakeholder engagement with: •

Parent company

•

Management (HSE, Risk, Commercial, People and Talent, Ethics and Compliance and Business Performance managers)

•

Employees (via an internal sustainability survey)

•

Clients (via a survey and face-to-face interviews)

•

Review of our peers’ sustainability strategies within in our geographical scope

28


Business ethics and competitive behavior Policies and standards Executive compensation Supply chain standards and selection Supply chain engagement and transparency

Labour availability

Corporate Community Investment

23

Energy use and management

24

GHG emissions reduction

25

Biodiversity impact

To ensure that stakeholder engagement remains an on-going process throughout the business, standards and procedures were drafted in 2013 to

Long-term viability of core business Industrial relations Commodity market volatility Labour availability Subcontractor liabilities Product societal value (legacy of quality infrastructure) Commercial competitiveness Regulatory certainty

internalise stakeholder engagement as part of our risk management process and to support our Environmental Management and Corporate Community Investment programmes. These will be implemented in 2014.


29

LAIO gets SMART To date significant steps have already been taken along our unique path to sustainability. These include defining our vision; determining the level of commitment among our employees; holding our first energy efficiency workshop and setting efficiency targets for diesel consumption in 2014; and launching corporate green office schemes to complement the host of excellent green office initiatives underway at project site level. Through effective and efficient use of materials and resources we will remain commercially As many as 96% of respondents believe it is

competitive in a manner that is consistent with

important that LAIO adopts and commits to

our core values, without compromising our

sustainability. In fact, 34% feel so strongly about

business opportunities of tomorrow.

the subject that it could influence our future career and employer choices. We have some way to go before we can claim to truly live up to two of our core values Our SMART sustainability strategy is the

This has formed the basis of our ‘Be SMART’

product of an internal and external stakeholder

campaign that is now being rolled out across the

engagement exercise we carried out mid-2013

business, and which forms the basis of LAIO’s

to identify the material impacts of our business

sustainability vision.

and, by doing so, shape our sustainability strategy.

Our internal stakeholder engagement survey found that more than 90% of us agree that

To capture the collective vision of what

sustainability is relevant to LAIO’s:

sustainability means to LAIO, we asked our employees what sustainability means to them.

Long-term competitive advantage

The words they used most frequently are those

Client retention

which now form our sustainability strategy

Operational efficiency

tagline:

Brand enhancement Employee retention

Sustainably Managing All Resources for Tomorrow (SMART)

‘Protect the environment’ and ‘Recognise the needs of the community’. Only 16% and 11% believe that we currently adhere to those values “extremely well”. Our employees believe that greater focus is needed in the areas of fuel efficiency, greenhouse gas emissions reduction and environmental protection. When it comes to Corporate Social Responsibility (CSR), nearly 80% of us understand that the term means “a company’s initiative to assess and take responsibility for its impact on the environment and on social welfare, beyond what is required by regulators”. All of our Business Units regularly engage in CSR-related activities, yet only 56% of our respondents were aware of the excellent efforts of our LAIO businesses, which means we need to improve the way we communicate with each other.

30



31

LAIO gets SMART To date significant steps have already been taken along our unique path to sustainability. These include defining our vision; determining the level of commitment among our employees; holding our first energy efficiency workshop and setting efficiency targets for diesel consumption in 2014; and launching corporate green office schemes to complement the host of excellent green office initiatives underway at project site level. Through effective and efficient use of materials and resources we will remain commercially As many as 96% of respondents believe it is

competitive in a manner that is consistent with

important that LAIO adopts and commits to

our core values, without compromising our

sustainability. In fact, 34% feel so strongly about

business opportunities of tomorrow.

the subject that it could influence our future career and employer choices. We have some way to go before we can claim to truly live up to two of our core values Our SMART sustainability strategy is the

This has formed the basis of our ‘Be SMART’

product of an internal and external stakeholder

campaign that is now being rolled out across the

engagement exercise we carried out mid-2013

business, and which forms the basis of LAIO’s

to identify the material impacts of our business

sustainability vision.

and, by doing so, shape our sustainability strategy.

Our internal stakeholder engagement survey found that more than 90% of us agree that

To capture the collective vision of what

sustainability is relevant to LAIO’s:

sustainability means to LAIO, we asked our employees what sustainability means to them.

Long-term competitive advantage

The words they used most frequently are those

Client retention

which now form our sustainability strategy

Operational efficiency

tagline:

Brand enhancement Employee retention

Sustainably Managing All Resources for Tomorrow (SMART)

‘Protect the environment’ and ‘Recognise the needs of the community’. Only 16% and 11% believe that we currently adhere to those values “extremely well”. Our employees believe that greater focus is needed in the areas of fuel efficiency, greenhouse gas emissions reduction and environmental protection. When it comes to Corporate Social Responsibility (CSR), nearly 80% of us understand that the term means “a company’s initiative to assess and take responsibility for its impact on the environment and on social welfare, beyond what is required by regulators”. All of our Business Units regularly engage in CSR-related activities, yet only 56% of our respondents were aware of the excellent efforts of our LAIO businesses, which means we need to improve the way we communicate with each other.

30



31



Work efficiently Respond to our markets Optimise profit Deliver on time Maximise local expertise

The playing field for construction companies

Rather than centering our strategy on price and

operating in Asia has changed dramatically in

margin, we are taking a client-centric approach

recent years. Asia’s high octane growth has

focused on winning repeat, quality business. We

been a magnet for international contractors, with

are assertively carving out our market position

the result that Asia now hosts twice as many

by tailoring solutions that address client needs,

competitors aggressively bidding for work.

ensuring that the value we deliver goes beyond price competitiveness. We are also building a

The dynamics of this highly competitive

reputation for putting in our best commercial

environment demand that we adjust our

offer, first time, every time.

game plan in order to remain commercially competitive.

This strategic approach presents greater stability, longevity and opportunity for LAIO.

“We are taking a client-centric approach focused on winning repeat, quality business”. Patrick Brothers Chief Development Officer

32


Our key differentiator is that we are an

By establishing a foundation of long-term,

Asian construction business in Asia; not an

high value relationships with clients built on

international company operating in Asia. Our

trust, empathy and respect, we are securing a

solid track record in Asia for successfully

prosperous future for our clients, our employees

delivering quality projects has allowed us to shift

and our shareholders.

our focus from being a transactional business targeting high volume diversified work, to taking a partnership-building approach where we focus on low volume, high yielding partnerships with international firms.

Patrick Brothers Chief Development Officer


33



Work efficiently Respond to our markets Optimise profit Deliver on time Maximise local expertise

The playing field for construction companies

Rather than centering our strategy on price and

operating in Asia has changed dramatically in

margin, we are taking a client-centric approach

recent years. Asia’s high octane growth has

focused on winning repeat, quality business. We

been a magnet for international contractors, with

are assertively carving out our market position

the result that Asia now hosts twice as many

by tailoring solutions that address client needs,

competitors aggressively bidding for work.

ensuring that the value we deliver goes beyond price competitiveness. We are also building a

The dynamics of this highly competitive

reputation for putting in our best commercial

environment demand that we adjust our

offer, first time, every time.

game plan in order to remain commercially competitive.

This strategic approach presents greater stability, longevity and opportunity for LAIO.

“We are taking a client-centric approach focused on winning repeat, quality business”. Patrick Brothers Chief Development Officer

32


Our key differentiator is that we are an

By establishing a foundation of long-term,

Asian construction business in Asia; not an

high value relationships with clients built on

international company operating in Asia. Our

trust, empathy and respect, we are securing a

solid track record in Asia for successfully

prosperous future for our clients, our employees

delivering quality projects has allowed us to shift

and our shareholders.

our focus from being a transactional business targeting high volume diversified work, to taking a partnership-building approach where we focus on low volume, high yielding partnerships with international firms.

Patrick Brothers Chief Development Officer


33


Work efficiently 2013 has been a transformative year for LAIO. To improve the way we win and deliver projects we: Launched a shared services centre for HR, Admin, Finance and IT support and a pre-contracts hub, operating out of our Kuala Lumpur office; Initiated a realignment of our functional support services across our geographies and sectors; Leveraged our economies of scale by establishing our Leighton Fabrication and Modularisation (LFM) business; Aligned our fabrication and modularization business (LFM) in Thailand and our engineering business Leighton Engineering (LE) in KL to report to Leighton Offshore. Improved alignment to our geographies and sectors as part of our Business Transformation Programme, by reorganising our operations

Our operations have been reclassified into three main sectors from four, comprising infrastructure (including

from six to five entities.

construction and civil engineering); Mining; and Offshore Oil and Gas, within a new operating structure:

Three objectives were set to secure LAIO’s business sustainability. These

Hong Kong & Macau:

included closing our underclaims gap; maintaining an unwavering focus

Infrastructure

on client integrity; and progressing our strategy to operate as ‘One LAIO’ across the Asia region.

Southeast Asia Construction: Infrastructure and Mining

Indonesia and Asia Mining:

“ Several presitgious contract awards demonstrate our strategy to build a project portfolio comprising a specific contract type and client profile.”

Mining and Infrastructure

Mark Smith Deputy CFO

Offshore: Including LE and LFM, this operating unit provides oil and gas infrastructure, engineering and fabrication services.

Leighton India: Infrastructure and Offshore

34



35


Work efficiently 2013 has been a transformative year for LAIO. To improve the way we win and deliver projects we: Launched a shared services centre for HR, Admin, Finance and IT support and a pre-contracts hub, operating out of our Kuala Lumpur office; Initiated a realignment of our functional support services across our geographies and sectors; Leveraged our economies of scale by establishing our Leighton Fabrication and Modularisation (LFM) business; Aligned our fabrication and modularization business (LFM) in Thailand and our engineering business Leighton Engineering (LE) in KL to report to Leighton Offshore. Improved alignment to our geographies and sectors as part of our Business Transformation Programme, by reorganising our operations

Our operations have been reclassified into three main sectors from four, comprising infrastructure (including

from six to five entities.

construction and civil engineering); Mining; and Offshore Oil and Gas, within a new operating structure:

Three objectives were set to secure LAIO’s business sustainability. These

Hong Kong & Macau:

included closing our underclaims gap; maintaining an unwavering focus

Infrastructure

on client integrity; and progressing our strategy to operate as ‘One LAIO’ across the Asia region.

Southeast Asia Construction: Infrastructure and Mining


“ Several presitgious contract awards demonstrate our strategy to build a project portfolio comprising a specific contract type and client profile.”

Mining and Infrastructure

Mark Smith Deputy CFO

Offshore: Including LE and LFM, this operating unit provides oil and gas infrastructure, engineering and fabrication services.

Leighton India: Infrastructure and Offshore

34



35


Optimise profit Several prestigious contract awards including the Wynn Resorts ‘Wynn Palace’ project in Macau and the DLF’s luxury ‘Camellias’ project in Delhi India, illustrate our on-going strategy to build a project portfolio built on the right contract conditions, market segments and client profile. Going forward, this approach enables us to achieve a balance of service delivery to our clients, and cash-backed profit to our shareholders. In late 2012 and into 2013 a widening gap between work completed and paid for was acknowledged as untenable. Concerted efforts throughout 2013 to close the under-claims gap initially paid off, with the gap narrowing from its peak in mid-2013. This was acheived through various initiaives throughout the company, aligned with our parent company’s ‘Stabilise, Rebase & Grow’ strategy. For example, our Hong Kong and Macau business

We have been driving a quality management approach

developed a commercial awareness campaign

throughout Leighton Asia, India and Offshore that enables

called the ‘Foundations of Commercial Success’.

leadership, coaching and faciltators mutual support to ensure the task in hand is achieved.

The initiative aimed to heighten commercial awareness across our projects and encourage

The Leighton Asia, India and Offshore Quality Management

them to get ‘Back to Basics’ to enable us to deliver

Campaign comprises eight quality management principles.

an improved operating performance through

By working as a team, our goal is to do it once and do it right.

Prioritise local employment

stronger financial performance and overall margin improvement.

Customer focus

Leadership

We are committed to upskilling local communities and leaving a positive legacy of skilled labour wherever we have a market presence. To achieve this, since 2011 we have set ourselves a target for employing no more than 3.5% expats annually. In 2013, as with previous years, we outperformed our target, employing at most 2.3% expats during the year (please refer to p15).

Key initiatives have now been put in place and are being developed across Business Unit 1 in the areas of Leadership, Teamwork, and Cost

Mutually Beneficial Supplier Relationaships

& Revenue to ensure our commercial culture is instilled and embedded across all of our projects, communicated via the following strategic money

Factual approach to decision making

Involvement of people

Quality management principles

Process approach

management model. This model will help our people to guide their

Continual improvement

System approach to management

thinking, to help them make the right decisions and, ultimately to create the right commercial outcomes.

36



37


Optimise profit Several prestigious contract awards including the Wynn Resorts ‘Wynn Palace’ project in Macau and the DLF’s luxury ‘Camellias’ project in Delhi India, illustrate our on-going strategy to build a project portfolio built on the right contract conditions, market segments and client profile. Going forward, this approach enables us to achieve a balance of service delivery to our clients, and cash-backed profit to our shareholders. In late 2012 and into 2013 a widening gap between work completed and paid for was acknowledged as untenable. Concerted efforts throughout 2013 to close the under-claims gap initially paid off, with the gap narrowing from its peak in mid-2013. This was acheived through various initiaives throughout the company, aligned with our parent company’s ‘Stabilise, Rebase & Grow’ strategy. For example, our Hong Kong and Macau business

We have been driving a quality management approach

developed a commercial awareness campaign

throughout Leighton Asia, India and Offshore that enables

called the ‘Foundations of Commercial Success’.

leadership, coaching and faciltators mutual support to ensure the task in hand is achieved.

The initiative aimed to heighten commercial awareness across our projects and encourage

The Leighton Asia, India and Offshore Quality Management

them to get ‘Back to Basics’ to enable us to deliver

Campaign comprises eight quality management principles.

an improved operating performance through

By working as a team, our goal is to do it once and do it right.

Prioritise local employment

stronger financial performance and overall margin improvement.

Customer focus

Leadership

We are committed to upskilling local communities and leaving a positive legacy of skilled labour wherever we have a market presence. To achieve this, since 2011 we have set ourselves a target for employing no more than 3.5% expats annually. In 2013, as with previous years, we outperformed our target, employing at most 2.3% expats during the year (please refer to p15).

Key initiatives have now been put in place and are being developed across Business Unit 1 in the areas of Leadership, Teamwork, and Cost

Mutually Beneficial Supplier Relationaships

& Revenue to ensure our commercial culture is instilled and embedded across all of our projects, communicated via the following strategic money

Factual approach to decision making

Involvement of people

Quality management principles

Process approach

management model. This model will help our people to guide their

Continual improvement

System approach to management

thinking, to help them make the right decisions and, ultimately to create the right commercial outcomes.

36



37



“Safety must, and will, remain a key driver for the sustainability of our business.” Dean Cowley General Manager Health Safety & Security

Reward safe practices Be tough on policy Provide continuous safety training Implement safety management plans Promote employee health

2013 was an extremely challenging year for

parties involved favour contractors who share

Safety at LAIO. Despite the commitment of our

their values and recognise the importance of

leaders and our staff to safety, we unfortunately

keeping people safe and ensuring that we send

suffered four tragic fatalities across our

everybody home to their loved ones at the end

business.

of each day.

To address this issue, we appointed LAIO’s

Our ability to tender and win work relies largely

first General Manger of Safety in October 2013.

on our reputation and the confidence that

Dean Cowley was promoted from our Hong

our clients have in us to deliver. Poor safety

Kong business into the role, to ensure that we

performance will ultimately impact program,

achieve our goal of zero fatalities and Class 1

bottom line, reputation, and our ability to win

Incidents.

future work with clients of choice. Safety must, and will, remain a key driver for the sustainability

The following Q&A provides insight into Dean

of our business.

Cowley’s background and experience, and his vision for taking LAIO’s safety strategy forward.

What is your background in safety management?

Why is it important that safety remains high on LAIO’s strategic agenda?

I have worked in the construction industry for

Accidents make no sense on any level - they

region.

over 25 years, the last 14 years of which I have specialised in construction safety in the Asia

ruin lives, damage reputations and cost untold amounts of money. They are not good for business, for the individuals injured or for the families left behind.

What do you perceive as the biggest challenge to embedding a safety culture across LAIO? One of the biggest challenges is having

The creation of a safe working environment

people at all levels of the organisation, be

is important on many levels, from the client,

they management staff or frontline workers,

government and community perspective. All

38



39



“Safety must, and will, remain a key driver for the sustainability of our business.” Dean Cowley General Manager Health Safety & Security

Reward safe practices Be tough on policy Provide continuous safety training Implement safety management plans Promote employee health

2013 was an extremely challenging year for

parties involved favour contractors who share

Safety at LAIO. Despite the commitment of our

their values and recognise the importance of

leaders and our staff to safety, we unfortunately

keeping people safe and ensuring that we send

suffered four tragic fatalities across our

everybody home to their loved ones at the end

business.

of each day.

To address this issue, we appointed LAIO’s

Our ability to tender and win work relies largely

first General Manger of Safety in October 2013.

on our reputation and the confidence that

Dean Cowley was promoted from our Hong

our clients have in us to deliver. Poor safety

Kong business into the role, to ensure that we

performance will ultimately impact program,

achieve our goal of zero fatalities and Class 1

bottom line, reputation, and our ability to win

Incidents.

future work with clients of choice. Safety must, and will, remain a key driver for the sustainability

The following Q&A provides insight into Dean

of our business.

Cowley’s background and experience, and his vision for taking LAIO’s safety strategy forward.

What is your background in safety management?

Why is it important that safety remains high on LAIO’s strategic agenda?

I have worked in the construction industry for

Accidents make no sense on any level - they

region.

over 25 years, the last 14 years of which I have specialised in construction safety in the Asia

ruin lives, damage reputations and cost untold amounts of money. They are not good for business, for the individuals injured or for the families left behind.

What do you perceive as the biggest challenge to embedding a safety culture across LAIO? One of the biggest challenges is having

The creation of a safe working environment

people at all levels of the organisation, be

is important on many levels, from the client,

they management staff or frontline workers,

government and community perspective. All

38



39


One of the most significant indicators of progress was when I actually started receiving e-mails from people around the business telling me that the information contained within had helped them to identify similar risks on their own projects and to prevent similar incidents. This, I believe, is when our Hong Kong and Macau operation started to move towards being a truly learning organisation. The challenge for us now is to replicate this positive and open reporting culture across LAIO and to ensure that lessons are learned and acted upon.

What is your strategy to help LAIO live by our core value of ‘Provide a safe and healthy workplace? My role was created in order to heighten the understand why change is needed.

executive leadership team’s focus on LAIO’s

Embedding the right type of culture is about

health and safety performance and to include it

having all levels of the organisation on board,

within their strategic agenda. I aim to facilitate

aligned with the LAIO values, understanding the

and support a safety-focused leadership team

Strive for L.I.F.E objectives and expectations

and to provide clear direction and structure for

and delivering against these with focus and

LAIO’s health and safety management.

commitment.

In your time with Leighton, what has been the most significant indicator of progress in a health and safety context?

Our success hinges on our ability to consistently

Leighton Asia, India and Offshore (LAIO) is

deliver our projects safely and effectively.

committed to excellence in Health and Safety practices wherever we operate. To support our

To achieve this, we at Leighton Asia are in the

goal of zero fatalities and Class 1 Incidents, we

process of refreshing our approach to safety.

aim for each our business units to have access

While we do not question our people’s hard work

to a dedicated Strive for L.I.F.E Training Centre

and commitment to safety, we must review our

based on our Hong Kong blueprint, where our

current approach to ensure we get a different

safety training can effectively be delivered.

outcome to last year’s safety performance. Our refreshed safety strategy seeks to achieve this through Five Key Areas of Focus that were identified during an exhaustive internal engagement exercise on safety, conducted by our GM Safety, Dean Cowley, in the fourth quarter of

“A safe and healthy workplace is dependent on the actions of every individual and the continuous dedication and professionalism of our support staff.”

2013. The purpose of the engagement exercise was to identify gaps and areas for improvement to the Strive for L.I.F.E. safety programme.

Kogi Ramakrishnan, HSE Clerk, Leighton Northern Double Tracking Project, Malaysia.

The 5 key areas of focus include: Being a learning organisation

Focused & accountable leadership

campaign and safety alert process in our Hong Kong and Macau business, there was a notable degree of reluctance. It was initially perceived

Safe operating standards & procedures

as a negative thing, in terms of admitting that something had gone wrong and then sending alerts across the business to highlight these failures. Dean Cowley General Manager - Safety & Security


Provide continuous safety training

Strategic planning & pre-contracts

When we launched the Near Miss reporting

40

Implement Safety management plans

Knowledge & verification of competency


41


One of the most significant indicators of progress was when I actually started receiving e-mails from people around the business telling me that the information contained within had helped them to identify similar risks on their own projects and to prevent similar incidents. This, I believe, is when our Hong Kong and Macau operation started to move towards being a truly learning organisation. The challenge for us now is to replicate this positive and open reporting culture across LAIO and to ensure that lessons are learned and acted upon.

What is your strategy to help LAIO live by our core value of ‘Provide a safe and healthy workplace? My role was created in order to heighten the understand why change is needed.

executive leadership team’s focus on LAIO’s

Embedding the right type of culture is about

health and safety performance and to include it

having all levels of the organisation on board,

within their strategic agenda. I aim to facilitate

aligned with the LAIO values, understanding the

and support a safety-focused leadership team

Strive for L.I.F.E objectives and expectations

and to provide clear direction and structure for

and delivering against these with focus and

LAIO’s health and safety management.

commitment.

In your time with Leighton, what has been the most significant indicator of progress in a health and safety context?

Our success hinges on our ability to consistently

Leighton Asia, India and Offshore (LAIO) is

deliver our projects safely and effectively.

committed to excellence in Health and Safety practices wherever we operate. To support our

To achieve this, we at Leighton Asia are in the

goal of zero fatalities and Class 1 Incidents, we

process of refreshing our approach to safety.

aim for each our business units to have access

While we do not question our people’s hard work

to a dedicated Strive for L.I.F.E Training Centre

and commitment to safety, we must review our

based on our Hong Kong blueprint, where our

current approach to ensure we get a different

safety training can effectively be delivered.

outcome to last year’s safety performance. Our refreshed safety strategy seeks to achieve this through Five Key Areas of Focus that were identified during an exhaustive internal engagement exercise on safety, conducted by our GM Safety, Dean Cowley, in the fourth quarter of

“A safe and healthy workplace is dependent on the actions of every individual and the continuous dedication and professionalism of our support staff.”

2013. The purpose of the engagement exercise was to identify gaps and areas for improvement to the Strive for L.I.F.E. safety programme.

Kogi Ramakrishnan, HSE Clerk, Leighton Northern Double Tracking Project, Malaysia.

The 5 key areas of focus include: Being a learning organisation

Focused & accountable leadership

campaign and safety alert process in our Hong Kong and Macau business, there was a notable degree of reluctance. It was initially perceived

Safe operating standards & procedures

as a negative thing, in terms of admitting that something had gone wrong and then sending alerts across the business to highlight these failures. Dean Cowley General Manager - Safety & Security


Provide continuous safety training

Strategic planning & pre-contracts

When we launched the Near Miss reporting

40

Implement Safety management plans

Knowledge & verification of competency


41


for L.I.F.E Training Centre in India in early 2012

Focus on fatigue

specifically for Leighton workers operating in the

Any degree of tiredness, from a slight lull in

offshore oil and gas sector.

energy level to extreme exhaustion can affect balance, concentration and the ability to

Throughout 2013 the centre has been used to

make critical decisions, with countless safety

provide specialist Class 1 Risk training for our

implications in the high-risk environments in

employees and workers in areas including hot

which we operate.

works, advanced fire-fighting, confined space and lifting and rigging and training.

India

A ‘Family Fatigue Awareness Programme’ in Indonesia took place at the Martabe Mine Project in Indonesia in May 2013. The day-long

In 2013, Leighton India opened a Strive for

programme, which is fully endorsed by our client

L.I.F.E training centre at the remote Chenani

PT Agincourt Resources, is designed to engage

Nashri Tunnel Project. The project has been

and educate employees’ families on the dangers

subject to unpredictable rock-falls and the

of fatigue in the work environment.

centre features a mock-up area that simulates rock-fall occurrences to heighten awareness and

The emphasis was on the importance of family

safe practice.

support for miners to ensure workers are not

Indonesia

In Hong Kong a dedicated 9,000 square foot

The Hong Kong centre was recently upgraded

Knowledge and Skills Training Centre houses

to incorporate a new mock-up area which

a 6,000 square foot mock-up of a live site

simulates the collapse of soil in an excavation

environment as well as two training classrooms,

along with an enhanced working at height

fully equipped with the latest multi-media

section. Having assessed local training needs

technology. From here Advanced Safety

our Hong Kong and Macau operation is currently

Induction Training (ASIT) is provided, using many

placing an increased focus on awareness

forms of interactive and dynamic media.

surrounding electrical safety.

The one-day programme consists of a morning

Offshore

session devoted to safety awareness and theory

Our offshore vessels present a unique

and an afternoon of practical safety training

environment for the safety education of workers.

to include: lifting, confined spaces, ladders,

Here, hands-on, practical training provided must

working on slopes and unprotected edges,

meet the particular and varied nature of our

electrical safety, working with slewing /moving

marine-related engineering and infrastructure

equipment, working with scaffold and working

projects, while maintaining the consistent ‘Strive

at height. It is strictly forbidden for employees,

for L.I.F.E message’.

or indeed anybody to work on a Leighton site in Hong Kong without the resulting Certificate in

Leighton India’s EPC-2 and EPC-3 teams were

Advanced Safety.

the first to establish a state-of-the-art Strive

42


unduly tired when on the job.

Our Indonesian operation has developed a

Throughout the day, employees’ family members

Learning Management System (LMS) that

are shown a documentary about employees

traverses all functional disciplines and has taken

involved in real life work incidents, followed by

the business to an average of 15,000 to 20,000

a video detailing the Strive for L.I.F.E framework

hours of training per month.

for fatigue management. They are also given a site tour to help illustrate potential safety issues.

Training is delivered through various focused groups, each employing a team of specialists

Singapore

to transfer knowledge and skills that equip our

Staff at the Jalan Besar Project in Singapore

employees to manage the many logistical and

completed a nine-week Safe Work Campaign

infrastructure challenges our operation faces.

mid-2013 that focused on improving the work environment. The campaign, which benefitted

Central to the Indonesian operation’s approach

from the active involvement of the Singapore

to Health Safety and Environment training is the

Civil Defense Force, targeted demarcation of

use of friendly media to deliver key messages

access and material laydown areas; improved

(movies, comics, reader-friendly procedures).

work rest areas and amenities on site; improved

This effort is backed up by the delivery of Class

work techniques; a review of temporary

1 Risk focused training packages developed

services at the workface and implementation

to meet each occupational need, which are

of practicable safety improvements; and

integrated into every training function within the

reinforcement of the Project Emergency

business.

Response procedures.


43


for L.I.F.E Training Centre in India in early 2012

Focus on fatigue

specifically for Leighton workers operating in the

Any degree of tiredness, from a slight lull in

offshore oil and gas sector.

energy level to extreme exhaustion can affect balance, concentration and the ability to

Throughout 2013 the centre has been used to

make critical decisions, with countless safety

provide specialist Class 1 Risk training for our

implications in the high-risk environments in

employees and workers in areas including hot

which we operate.

works, advanced fire-fighting, confined space and lifting and rigging and training.

India

A ‘Family Fatigue Awareness Programme’ in Indonesia took place at the Martabe Mine Project in Indonesia in May 2013. The day-long

In 2013, Leighton India opened a Strive for

programme, which is fully endorsed by our client

L.I.F.E training centre at the remote Chenani

PT Agincourt Resources, is designed to engage

Nashri Tunnel Project. The project has been

and educate employees’ families on the dangers

subject to unpredictable rock-falls and the

of fatigue in the work environment.

centre features a mock-up area that simulates rock-fall occurrences to heighten awareness and

The emphasis was on the importance of family

safe practice.

support for miners to ensure workers are not

Indonesia

In Hong Kong a dedicated 9,000 square foot

The Hong Kong centre was recently upgraded

Knowledge and Skills Training Centre houses

to incorporate a new mock-up area which

a 6,000 square foot mock-up of a live site

simulates the collapse of soil in an excavation

environment as well as two training classrooms,

along with an enhanced working at height

fully equipped with the latest multi-media

section. Having assessed local training needs

technology. From here Advanced Safety

our Hong Kong and Macau operation is currently

Induction Training (ASIT) is provided, using many

placing an increased focus on awareness

forms of interactive and dynamic media.

surrounding electrical safety.

The one-day programme consists of a morning

Offshore

session devoted to safety awareness and theory

Our offshore vessels present a unique

and an afternoon of practical safety training

environment for the safety education of workers.

to include: lifting, confined spaces, ladders,

Here, hands-on, practical training provided must

working on slopes and unprotected edges,

meet the particular and varied nature of our

electrical safety, working with slewing /moving

marine-related engineering and infrastructure

equipment, working with scaffold and working

projects, while maintaining the consistent ‘Strive

at height. It is strictly forbidden for employees,

for L.I.F.E message’.

or indeed anybody to work on a Leighton site in Hong Kong without the resulting Certificate in

Leighton India’s EPC-2 and EPC-3 teams were

Advanced Safety.

the first to establish a state-of-the-art Strive

42


unduly tired when on the job.

Our Indonesian operation has developed a

Throughout the day, employees’ family members

Learning Management System (LMS) that

are shown a documentary about employees

traverses all functional disciplines and has taken

involved in real life work incidents, followed by

the business to an average of 15,000 to 20,000

a video detailing the Strive for L.I.F.E framework

hours of training per month.

for fatigue management. They are also given a site tour to help illustrate potential safety issues.

Training is delivered through various focused groups, each employing a team of specialists

Singapore

to transfer knowledge and skills that equip our

Staff at the Jalan Besar Project in Singapore

employees to manage the many logistical and

completed a nine-week Safe Work Campaign

infrastructure challenges our operation faces.

mid-2013 that focused on improving the work environment. The campaign, which benefitted

Central to the Indonesian operation’s approach

from the active involvement of the Singapore

to Health Safety and Environment training is the

Civil Defense Force, targeted demarcation of

use of friendly media to deliver key messages

access and material laydown areas; improved

(movies, comics, reader-friendly procedures).

work rest areas and amenities on site; improved

This effort is backed up by the delivery of Class

work techniques; a review of temporary

1 Risk focused training packages developed

services at the workface and implementation

to meet each occupational need, which are

of practicable safety improvements; and

integrated into every training function within the

reinforcement of the Project Emergency

business.

Response procedures.


43


Awards Date of award

Project

Awarding body

Award

Country

Date of award

Project

Awarding body

Award

Country

Dec 2013

Harbour Area Treatment Scheme

Occupational Safety and Health Council & Construction Industry Council

Good Housekeeping Award Merit Award

Hong Kong

Sep 2013

South Island Line 903

Lighthouse Club, Hong Kong

Safe Project Team Awards Runner Up

Hong Kong

Dec 2013

Central Wanchai Bypass – Central Interchange


Good Housekeeping (Construction) Gold Award

Hong Kong

Sep 2013



Safe Subcontractor Awards Distinction - Richwell

Hong Kong

Caring Construction Site Award Scheme Gold Caring Award

Sep 2013

Express Rail Link 811B


Safe Project Team Awards Distinction

Hong Kong


Occupational Safety and Health Council & Labour Department

Sep 2013




Hong Kong

Sep 2013


Mass Transit Railway

Silver Safety Award

Hong Kong

Sep 2013



Hong Kong Occupational Safety and Health Award Safety Culture Award – Gold Award

Hong Kong


Hong Kong Occupational Safety and Health Award Safety Enhancing Program Award – Gold Award

Hong Kong

Nov 2013

Nov 2013

Tin Shui Wai Hospital


Hong Kong


Hong Kong

Nov 2013



Caring Construction Site Award Scheme Silver Caring Award

Hong Kong

Nov 2013



Caring Construction Site Award Scheme Diamond Caring Award

Hong Kong

Sep 2013


Oct 2013


Hong Kong Electrical and Mechanical Services Department

Outstanding Registered Electrical Worker Awards Scheme 2013 Best Safety Award - CHEUNG Kam Piu

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Safe Working Cycle Site – Gold

Hong Kong

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Safety Enhancement Program for Working at Height – Silver

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Occupational Program to Prevent heat Stroke at Work – Merit

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Outstanding Metal Scaffolder – Merit (Signh Sukhdev)

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Presentation Award – Bronze

Hong Kong

Jun 2013



Projects Division Safety Week 2013 SIL (East) Project – Best Contractor

Hong Kong

May 2013

Black Point Gas Supply project

Development Bureau & Construction Industry Council

Considerate Contractors Site Award Scheme 2012 Considerate Contractors Site Award (CCSA) – Merit Award

Hong Kong

Sep 2013



Safe Foreman Award Champion

Sep 2013



Safe Subcontractor Awards Runner Up – Smart Grand

Hong Kong

Sep 2013



Safe Subcontractor Awards Runner Up – Fang Sheung

Hong Kong

Sep 2013



Safe Subcontractor Awards Merit –Koon Fung

Hong Kong



Site Safety Professionals Awards Runner Up – Mr. Jim Chung

Hong Kong

Sep 2013 Sep 2013 Sep 2013

44






Site Safety Professionals Awards Runner Up – Mr. Thomas Yee Chairman’s Award Gabriel So

Hong Kong

Hong Kong


45



Project

Awarding body

Award

Country

Date of award

Project

Awarding body

Award

Country

Dec 2013



Good Housekeeping Award Merit Award

Hong Kong

Sep 2013




Hong Kong

Dec 2013



Good Housekeeping (Construction) Gold Award

Hong Kong

Sep 2013



Safe Subcontractor Awards Distinction - Richwell

Hong Kong


Sep 2013



Safe Project Team Awards Distinction

Hong Kong



Sep 2013




Hong Kong

Sep 2013



Silver Safety Award

Hong Kong

Sep 2013



Hong Kong Occupational Safety and Health Award Safety Culture Award – Gold Award

Hong Kong


Hong Kong Occupational Safety and Health Award Safety Enhancing Program Award – Gold Award

Hong Kong

Nov 2013

Nov 2013



Hong Kong


Hong Kong

Nov 2013



Caring Construction Site Award Scheme Silver Caring Award

Hong Kong

Nov 2013



Caring Construction Site Award Scheme Diamond Caring Award

Hong Kong

Sep 2013


Oct 2013


Hong Kong Electrical and Mechanical Services Department

Outstanding Registered Electrical Worker Awards Scheme 2013 Best Safety Award - CHEUNG Kam Piu

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Safe Working Cycle Site – Gold

Hong Kong

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Safety Enhancement Program for Working at Height – Silver

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Occupational Program to Prevent heat Stroke at Work – Merit

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Outstanding Metal Scaffolder – Merit (Signh Sukhdev)

Hong Kong

Jul 2013



Construction Safety Forum and Award Presentation Best Presentation Award – Bronze

Hong Kong

Jun 2013



Projects Division Safety Week 2013 SIL (East) Project – Best Contractor

Hong Kong

May 2013



Considerate Contractors Site Award Scheme 2012 Considerate Contractors Site Award (CCSA) – Merit Award

Hong Kong

Sep 2013



Safe Foreman Award Champion

Sep 2013



Safe Subcontractor Awards Runner Up – Smart Grand

Hong Kong

Sep 2013



Safe Subcontractor Awards Runner Up – Fang Sheung

Hong Kong

Sep 2013



Safe Subcontractor Awards Merit –Koon Fung

Hong Kong



Site Safety Professionals Awards Runner Up – Mr. Jim Chung

Hong Kong

Sep 2013 Sep 2013 Sep 2013

44






Site Safety Professionals Awards Runner Up – Mr. Thomas Yee Chairman’s Award Gabriel So

Hong Kong

Hong Kong


45



Project

Awarding body

Award

Country

May 2013



Considerate Contractors Site Award Scheme 2012 Outstanding Environmental Management and Performance Award (OEMPA) – Silver Award

Hong Kong


Considerate Contractors Site Award Scheme 2012 Model Frontline Supervisors Awards – Mr. Chui Yiu Ming (Foreman)


Considerate Contractors Site Award Scheme 2012 Model Workers Award – Mr. Gurung Dilip Kumar (Metal Scaffolding Competent Person)

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

Mar 2013

46











Sludge Treatment Facility

Express Rail Link 822



Considerate Contractors Site Award Scheme 2012 Best Model Frontline Supervisor Award – Mr. Wayne Lui

Hong Kong

Hong Kong

Hong Kong


Considerate Contractors Site Award Scheme 2012 Considerate Contractors Site Award (CCSA) – Gold Award

Hong Kong



Hong Kong

Considerate Contractors Site Award Scheme 2012 Model Frontline Supervisors Award – Mr. Khan Nasir Ali

Hong Kong

Considerate Contractors Site Award Scheme 2012 Model Workers Award – Mr. Chan Choi Hok

Hong Kong

Considerate Contractors Site Award Scheme 2012 Considerate Contractors Site Award (CCSA) – Silver Award

Hong Kong

Development Bureau, Construction Industry Council, Hong Kong Construction Association

Innovative Safety Initiative Award 2013 Silver Award

Hong Kong


Innovative Safety Initiative Award 2013 Merit Award





Grand Safety Award

Project

Awarding body

Award

Country

Mar 2013



Gold Safety Award

Hong Kong

Mar 2013



Lowest Reportable Accident Frequency Rate Award

Hong Kong

Mar 2013



Silver Safety Award

Hong Kong

Mar 2013

Hong Kong Academy

Labour Department

Construction Industry Safety Award Scheme 2012/13 Building Sites (Private Sector) - Gold Award

Hong Kong

Hong Kong

Hong Kong

Considerate Contractors Site Award Scheme 2012 Model Workers Award – Mr. Singh Sukhdev


Date of award

Mar 2013

Hong Kong Academy

Labour Department

Construction Industry Safety Award Scheme 2012/13 Subcontractor (Building Sites) – Merit Award (Billion Ford )

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Civil Engineering Sites – Silver Award

Hong Kong

Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Safe Worker Award (Worker: Chiu Tong Shing)

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Civil Engineering Sites – Merit Award

Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Subcontractor (Civil Sites) – Gold Award (Smart Grand )

Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Safety Team – Merit Award

Hong Kong

Mar 2013


Labour Department


Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Safe Worker Award (Worker: Hussain Razwan)

Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Subcontractor (Civil Sites) – Bronze Award (Ah Ngau )

Hong Kong

Feb 2013

Express Rail Link 810A

Occupational Safety and Health Council

Occupational Health Award 2013 Prevention of the Pneumoconiosis Best Practices Merit Award

Hong Kong

Hong Kong

Hong Kong


47



Project

Awarding body

Award

Country

May 2013




Hong Kong


Considerate Contractors Site Award Scheme 2012 Model Frontline Supervisors Awards – Mr. Chui Yiu Ming (Foreman)


Considerate Contractors Site Award Scheme 2012 Model Workers Award – Mr. Gurung Dilip Kumar (Metal Scaffolding Competent Person)

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

May 2013

Mar 2013

46















Considerate Contractors Site Award Scheme 2012 Best Model Frontline Supervisor Award – Mr. Wayne Lui

Hong Kong

Hong Kong

Hong Kong


Considerate Contractors Site Award Scheme 2012 Considerate Contractors Site Award (CCSA) – Gold Award

Hong Kong



Hong Kong

Considerate Contractors Site Award Scheme 2012 Model Frontline Supervisors Award – Mr. Khan Nasir Ali

Hong Kong

Considerate Contractors Site Award Scheme 2012 Model Workers Award – Mr. Chan Choi Hok

Hong Kong

Considerate Contractors Site Award Scheme 2012 Considerate Contractors Site Award (CCSA) – Silver Award

Hong Kong


Innovative Safety Initiative Award 2013 Silver Award

Hong Kong


Innovative Safety Initiative Award 2013 Merit Award





Grand Safety Award

Project

Awarding body

Award

Country

Mar 2013



Gold Safety Award

Hong Kong

Mar 2013



Lowest Reportable Accident Frequency Rate Award

Hong Kong

Mar 2013



Silver Safety Award

Hong Kong

Mar 2013

Hong Kong Academy

Labour Department

Construction Industry Safety Award Scheme 2012/13 Building Sites (Private Sector) - Gold Award

Hong Kong

Hong Kong

Hong Kong

Considerate Contractors Site Award Scheme 2012 Model Workers Award – Mr. Singh Sukhdev


Date of award

Mar 2013

Hong Kong Academy

Labour Department

Construction Industry Safety Award Scheme 2012/13 Subcontractor (Building Sites) – Merit Award (Billion Ford )

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Civil Engineering Sites – Silver Award

Hong Kong

Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Safe Worker Award (Worker: Chiu Tong Shing)

Mar 2013


Labour Department


Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Subcontractor (Civil Sites) – Gold Award (Smart Grand )

Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Safety Team – Merit Award

Hong Kong

Mar 2013


Labour Department


Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Safe Worker Award (Worker: Hussain Razwan)

Hong Kong

Mar 2013


Labour Department

Construction Industry Safety Award Scheme 2012/13 Subcontractor (Civil Sites) – Bronze Award (Ah Ngau )

Hong Kong

Feb 2013



Occupational Health Award 2013 Prevention of the Pneumoconiosis Best Practices Merit Award

Hong Kong

Hong Kong

Hong Kong


47



Project

Awarding body

Award

Feb 2013



Occupational Health Award 2013 Hearing Conservation Best Practices Merit Award



Feb 2013

Country Hong Kong



Occupational Health Award 2013Prevention of the Pneumoconiosis Best Practices Merit Award

Hong Kong

Jan 2013


Drainage Services Department

Tunnel Safety Campaign - Champion

Hong Kong

Jan 2013



Safe Lifting Competition 2012 – 2013; Crawler Crane Category – Champion The best operator/riggers/signalman

Hong Kong

Jan 2013



Safe Lifting Competition 2012 – 2013; Crane Truck Category – Bronze Award

Hong Kong

Jan 2013



Safe Lifting Competition 2012 – 2013; Crawler Crane Category – Bronze Award

Hong Kong

Jan 2013

Balikpapan Support Facility

Mayor of Balikpapan

Zero Incident Award

Indonesia

Feb 2013

MSJ Coal Mine Project

East Kalimantan Regent, Indonesian Department of Manpower

Zero Incident Award

Indonesia

Apr 2013


Indonesia Department of Manpower

Zero Incident Award

Indonesia

July 2013

New Sustralian Embassy Jakarta Project

Indonesian World Records Museum (MURI)

Indonesian World Records Certificate for The Largest Relocation of Banyan Trees

Indonesia

Nov 2013

Wahana Coal Mine project

Mine Minister, Indonesia

Pratama Award in Occupational Health and Safety Management for the main contractor in Mineral and coal mining services category

Indonesia

Oct 2013


Director of East Kalimantan Traffic Police Department

Safety Pioneer for internal and external road safety

Indonesia

48


Project

Awarding body

Award

Country

Sep 2013

M370 Northern Electrified Double Tracking Project

Malaysia Occupational Safety & Health Association (MOSHPA)

OHS Excellence Gold Award for OSH Management in Railway Construction2013

Malaysia

Oct 2013

EPC 2&3 Project

Cairn India Ltd.

Best Safe Performing EPC Contractor

India

Sept 2013

Pipeline Replacement Project 3

Greentech Foundation

12th Annual Silver Greentech Safety Award 2013 for ‘Outstanding Achievement in Safety Management’

India

Feb 2013

EPC 2&3 Project

Cairn India Ltd.


India

Jan 2013

EPC 2 Power generation and distribution project

RoSPA

Gold Award for Occupational Health and Safety 2013

India

Sep 2013

Downtown Line Stage 3 C935

Land Transport Authority

Annual Safety Award 2013 – Merit Award

Singapore

Sep 2013



Construction Environmental Award 2013- Merit Award

Singapore

Hong Kong


Feb 2013

Date of award


49



Project

Awarding body

Award

Feb 2013






Feb 2013

Country Hong Kong



Occupational Health Award 2013Prevention of the Pneumoconiosis Best Practices Merit Award

Hong Kong

Jan 2013


Drainage Services Department

Tunnel Safety Campaign - Champion

Hong Kong

Jan 2013



Safe Lifting Competition 2012 – 2013; Crawler Crane Category – Champion The best operator/riggers/signalman

Hong Kong

Jan 2013



Safe Lifting Competition 2012 – 2013; Crane Truck Category – Bronze Award

Hong Kong

Jan 2013



Safe Lifting Competition 2012 – 2013; Crawler Crane Category – Bronze Award

Hong Kong

Jan 2013


Mayor of Balikpapan

Zero Incident Award

Indonesia

Feb 2013

MSJ Coal Mine Project

East Kalimantan Regent, Indonesian Department of Manpower

Zero Incident Award

Indonesia

Apr 2013


Indonesia Department of Manpower

Zero Incident Award

Indonesia

July 2013

New Sustralian Embassy Jakarta Project

Indonesian World Records Museum (MURI)

Indonesian World Records Certificate for The Largest Relocation of Banyan Trees

Indonesia

Nov 2013

Wahana Coal Mine project

Mine Minister, Indonesia

Pratama Award in Occupational Health and Safety Management for the main contractor in Mineral and coal mining services category

Indonesia

Oct 2013


Director of East Kalimantan Traffic Police Department

Safety Pioneer for internal and external road safety

Indonesia

48


Project

Awarding body

Award

Country

Sep 2013

M370 Northern Electrified Double Tracking Project

Malaysia Occupational Safety & Health Association (MOSHPA)

OHS Excellence Gold Award for OSH Management in Railway Construction2013

Malaysia

Oct 2013

EPC 2&3 Project

Cairn India Ltd.


India

Sept 2013

Pipeline Replacement Project 3

Greentech Foundation

12th Annual Silver Greentech Safety Award 2013 for ‘Outstanding Achievement in Safety Management’

India

Feb 2013

EPC 2&3 Project

Cairn India Ltd.


India

Jan 2013

EPC 2 Power generation and distribution project

RoSPA

Gold Award for Occupational Health and Safety 2013

India

Sep 2013



Annual Safety Award 2013 – Merit Award

Singapore

Sep 2013



Construction Environmental Award 2013- Merit Award

Singapore

Hong Kong


Feb 2013

Date of award


49



Respect all people Be truthful and honest Be open minded Be consistent Act fairly

David Palser, our Executive General Manager - Risk and Governance provides insight into the ‘conscience of our company’ and the measures taken over the last twelve months to embed a culture of integrity throughout the Leighton Asia business.

1) What is your role in the field of ethics and compliance?

As Executive General Manager, Risk & Governance, I am the senior executive responsible for leading the development and maintenance of the Leighton Asia Integrity Programme (“The RIGHT Way”), which ensures that Leighton Asia continues to achieve “Success with Integrity”. I am very lucky to lead a dedicated team of professionals who have often been described as the ‘conscience of the organisation’.

“Living our Code of Conduct ensures we have the right people, doing the right things for the right reasons.”

50


2) Why is it important to you, personally, that Leighton Asia commits to its core value of ‘Act with Integrity and Fairness’?

Leighton’s reputation is one of its most valuable assets. The daily actions of our employees affect that reputation, both positively and negatively. It is therefore essential that every employee does the right thing, every day. Success and integrity go hand-in-hand. Integrity is essential to our business success; there can be no success without integrity.


51



Respect all people Be truthful and honest Be open minded Be consistent Act fairly

David Palser, our Executive General Manager - Risk and Governance provides insight into the ‘conscience of our company’ and the measures taken over the last twelve months to embed a culture of integrity throughout the Leighton Asia business.

1) What is your role in the field of ethics and compliance?

As Executive General Manager, Risk & Governance, I am the senior executive responsible for leading the development and maintenance of the Leighton Asia Integrity Programme (“The RIGHT Way”), which ensures that Leighton Asia continues to achieve “Success with Integrity”. I am very lucky to lead a dedicated team of professionals who have often been described as the ‘conscience of the organisation’.

“Living our Code of Conduct ensures we have the right people, doing the right things for the right reasons.”

50


2) Why is it important to you, personally, that Leighton Asia commits to its core value of ‘Act with Integrity and Fairness’?

Leighton’s reputation is one of its most valuable assets. The daily actions of our employees affect that reputation, both positively and negatively. It is therefore essential that every employee does the right thing, every day. Success and integrity go hand-in-hand. Integrity is essential to our business success; there can be no success without integrity.


51


Strategy

(continued) Acting with integrity is not just about the impact on Leighton’s business. It also has an important personal element. By failing to act with integrity our employees put themselves at risk of not only losing their jobs and livelihoods, but also of going to prison. The impact of that on their wider community of family and friends would be devastating. Too often there are stories of people being sent to prison who were not motivated by personal gain, but had acted in the belief that their actions were in the interest of the company. No job is worth that.

The Leighton Asia Integrity Programme is a ‘risk-based’ integrated system, designed to address the identified integrity risks faced by the business. It includes the following key components: Culture, Leadership (“Tone from the Top”) and Clear Accountability; Effective Governance – Reportable Conduct Group; Dedicated Ethics & Compliance specialists;

3) What has been the biggest challenge in embedding

Leighton Asia has a long and proud history of building important infrastructure in Asia over the last 40 years. We employ around 20,000 people in over 10 countries, across many different cultures and languages. A number of countries in which we operate are considered to be ‘high risk’ from an integrity perspective. I strongly believe that our

this core value

employees recognise the importance of acting with integrity and that they take pride in

across the LAIO

Leighton Asia’s reputation for integrity and excellence.

“Adequate Procedures” (Rules, Processes & Systems); Whistleblower System; Training and Awareness; and Record Keeping and Reporting.

Other key milestones for Leighton Asia in 2013 included: In February, Leighton Asia appointed a Group Compliance Manager, with day-to-day responsibility for supporting our Business Units to act with integrity. In March, Leighton Asia introduced the independentlyoperated “Leighton Ethics Line” to provide our employees with another avenue to report concerns that something may not be in accordance with our Code. Released the “Living our Code: The RIGHT Way – A Message from our Managing Director” video to our staff (a copy of which can be found on our intranet page). Throughout 2013 our Reportable Conduct Group, comprising the Leighton Asia MD (Chairman), CFO, EGM, Risk & Governance, EGM, People, Safety & Sustainability

businesses and

The biggest challenge has been educating our people about the integrity risks they may

Our focus in 2013 was to continue the education of our

and Group General Counsel (Secretary), met regularly to

how have you

face in their daily jobs and how they should respond in situations that may compromise

employees in how to act with integrity through Leighton Asia’s

consider any reportable incidents and provide oversight of

overcome this?

their integrity. The issue lies less with behaviours that are obviously illegal or unethical,

“Living our Code” campaign. This included:

the Leighton Asia Integrity Programme.

but rather those situations where the boundaries are less clear. The risks to our people of being inadvertently placed in a situation where their integrity may be comprised has

The issue of updated Standards covering Gifts & Hospitality,

increased significantly over the last few years.

Sponsorships & Charitable Donations, Political Contributions & Activities, and Market Disclosure & Communications.

Given these challenges, I am personally committed to ensuring that: •

Every Leighton Asia employee is provided with sufficient knowledge, training, tools and support to enable them to perform their job with integrity every single time; and

•

staff with further work on updating our Standards and Procedures, enhanced induction training and toolbox training for our labour on our project sites.

Our Executive Leadership Team participated in a half day

We will also be implementing our Code Champions

workshop entitled “Living our Code: The Role of Leadership”.

initiative, where we appoint a Code Champion on each of our Projects to provide a focal point for integrity for our

No Leighton Asia employee is ever placed in a situation where they feel they must compromise their integrity for the good of the company.

In 2014 we will continue to focus on educating our

The development and launch of our Code of Conduct e-learning module to all of our 5,700 staff (completed

It all starts with our Code of Business

in 2014). The e-learning module is available in English,

Conduct, the cornerstone of the

Chinese, Mongolian, Bahasa Indonesian and Hindi.

project teams. Finally, we will enhance our record keeping and reporting.

Leighton Integrity Programme. Our Code is a roadmap to guide all

The development and delivery of the Prevention of Bribery

employees in how to conduct business

and Corruption training programme to around 600 of our

while maintaining the highest standards

staff that were identified as being in roles that may expose

of honesty and integrity. As long as our

them to risks of bribery and corruption.

people live by our Code they will be be fine. David Palser Executive General Manager, Risk and Governance

52



53


Strategy

(continued) Acting with integrity is not just about the impact on Leighton’s business. It also has an important personal element. By failing to act with integrity our employees put themselves at risk of not only losing their jobs and livelihoods, but also of going to prison. The impact of that on their wider community of family and friends would be devastating. Too often there are stories of people being sent to prison who were not motivated by personal gain, but had acted in the belief that their actions were in the interest of the company. No job is worth that.

The Leighton Asia Integrity Programme is a ‘risk-based’ integrated system, designed to address the identified integrity risks faced by the business. It includes the following key components: Culture, Leadership (“Tone from the Top”) and Clear Accountability; Effective Governance – Reportable Conduct Group; Dedicated Ethics & Compliance specialists;

3) What has been the biggest challenge in embedding

Leighton Asia has a long and proud history of building important infrastructure in Asia over the last 40 years. We employ around 20,000 people in over 10 countries, across many different cultures and languages. A number of countries in which we operate are considered to be ‘high risk’ from an integrity perspective. I strongly believe that our

this core value

employees recognise the importance of acting with integrity and that they take pride in

across the LAIO

Leighton Asia’s reputation for integrity and excellence.

“Adequate Procedures” (Rules, Processes & Systems); Whistleblower System; Training and Awareness; and Record Keeping and Reporting.

Other key milestones for Leighton Asia in 2013 included: In February, Leighton Asia appointed a Group Compliance Manager, with day-to-day responsibility for supporting our Business Units to act with integrity. In March, Leighton Asia introduced the independentlyoperated “Leighton Ethics Line” to provide our employees with another avenue to report concerns that something may not be in accordance with our Code. Released the “Living our Code: The RIGHT Way – A Message from our Managing Director” video to our staff (a copy of which can be found on our intranet page). Throughout 2013 our Reportable Conduct Group, comprising the Leighton Asia MD (Chairman), CFO, EGM, Risk & Governance, EGM, People, Safety & Sustainability

businesses and

The biggest challenge has been educating our people about the integrity risks they may

Our focus in 2013 was to continue the education of our

and Group General Counsel (Secretary), met regularly to

how have you

face in their daily jobs and how they should respond in situations that may compromise

employees in how to act with integrity through Leighton Asia’s

consider any reportable incidents and provide oversight of

overcome this?

their integrity. The issue lies less with behaviours that are obviously illegal or unethical,

“Living our Code” campaign. This included:

the Leighton Asia Integrity Programme.

but rather those situations where the boundaries are less clear. The risks to our people of being inadvertently placed in a situation where their integrity may be comprised has

The issue of updated Standards covering Gifts & Hospitality,

increased significantly over the last few years.

Sponsorships & Charitable Donations, Political Contributions & Activities, and Market Disclosure & Communications.

Given these challenges, I am personally committed to ensuring that: •

Every Leighton Asia employee is provided with sufficient knowledge, training, tools and support to enable them to perform their job with integrity every single time; and

•

staff with further work on updating our Standards and Procedures, enhanced induction training and toolbox training for our labour on our project sites.

Our Executive Leadership Team participated in a half day

We will also be implementing our Code Champions

workshop entitled “Living our Code: The Role of Leadership”.

initiative, where we appoint a Code Champion on each of our Projects to provide a focal point for integrity for our

No Leighton Asia employee is ever placed in a situation where they feel they must compromise their integrity for the good of the company.

In 2014 we will continue to focus on educating our

The development and launch of our Code of Conduct e-learning module to all of our 5,700 staff (completed

It all starts with our Code of Business

in 2014). The e-learning module is available in English,

Conduct, the cornerstone of the

Chinese, Mongolian, Bahasa Indonesian and Hindi.

project teams. Finally, we will enhance our record keeping and reporting.

Leighton Integrity Programme. Our Code is a roadmap to guide all

The development and delivery of the Prevention of Bribery

employees in how to conduct business

and Corruption training programme to around 600 of our

while maintaining the highest standards

staff that were identified as being in roles that may expose

of honesty and integrity. As long as our

them to risks of bribery and corruption.

people live by our Code they will be be fine. David Palser Executive General Manager, Risk and Governance

52



53



Reduce our carbon footprint Use resources efficiently Minimise our impact on the environment Recycle Train our people

Our Hong Kong based Environmental Engineer,

regarding this project.

Donald Ip, explains how our high profile Central Interchange - Central Wan Chai by-pass

We have leveraged the opportunity presented

project has gone the distance on environmental

by the site’s high profile location to showcase

performance

our performance in environmental protection. As our works progress, we continue to find new

Guided by our core value “Protect the

ways to excel in environmental performance and

Environment”, here at our Central Interchange

below are some examples of how we are doing

project we are always seeking innovative ways

this:

to minimise our impact on the environment and local communities.

•

Before the project works began, we took care to relocate the existing flora

“Leighton Asia is playing a leading role in setting Asia’s construction industry on a sustainable course.”

Our project site, located in one of the busiest

and donate it to our stakeholders, the

commercial districts in Hong Kong, is

International Finance Centre (IFC),

developing an underground by-pass that will

and other interested parties, such as

provide much needed relief to traffic congestion

universities. This created goodwill

on the water front roads in Central, Wan Chai

and helped us to earn the trust of the

and Causeway Bay.

community. •

The works include two bridges totaling 305

existing Leighton and non-Leighton

metres, 224 metres of cut-and-cover tunnels, a

projects elsewhere in Hong Kong Island

116-metre long approach ramp, realigning and

for use as backfill. In doing so, we

reconstructing existing roads and associated

recycled waste material locally which

landscaping works.

avoided transport emissions. •

Due to the project’s complex site logistics and

54


Centre was opened in March 2011 to address

We imported crushed rock as bedding material from other Leighton work sites,

space restrictions, a Central Community Liaison Protecting natural heritage: relocating sacred Banyan trees at the Australian Embassy project in South Jakarta, Indonesia.

We exported sand from our site to

diverting material for reuse.

and manage stakeholder and public issues


55



Reduce our carbon footprint Use resources efficiently Minimise our impact on the environment Recycle Train our people

Our Hong Kong based Environmental Engineer,

regarding this project.

Donald Ip, explains how our high profile Central Interchange - Central Wan Chai by-pass

We have leveraged the opportunity presented

project has gone the distance on environmental

by the site’s high profile location to showcase

performance

our performance in environmental protection. As our works progress, we continue to find new

Guided by our core value “Protect the

ways to excel in environmental performance and

Environment”, here at our Central Interchange

below are some examples of how we are doing

project we are always seeking innovative ways

this:

to minimise our impact on the environment and local communities.

•

Before the project works began, we took care to relocate the existing flora

“Leighton Asia is playing a leading role in setting Asia’s construction industry on a sustainable course.”

Our project site, located in one of the busiest

and donate it to our stakeholders, the

commercial districts in Hong Kong, is

International Finance Centre (IFC),

developing an underground by-pass that will

and other interested parties, such as

provide much needed relief to traffic congestion

universities. This created goodwill

on the water front roads in Central, Wan Chai

and helped us to earn the trust of the

and Causeway Bay.

community. •

The works include two bridges totaling 305

existing Leighton and non-Leighton

metres, 224 metres of cut-and-cover tunnels, a

projects elsewhere in Hong Kong Island

116-metre long approach ramp, realigning and

for use as backfill. In doing so, we

reconstructing existing roads and associated

recycled waste material locally which

landscaping works.

avoided transport emissions. •

Due to the project’s complex site logistics and

54


Centre was opened in March 2011 to address

We imported crushed rock as bedding material from other Leighton work sites,

space restrictions, a Central Community Liaison Protecting natural heritage: relocating sacred Banyan trees at the Australian Embassy project in South Jakarta, Indonesia.

We exported sand from our site to

diverting material for reuse.

and manage stakeholder and public issues


55


Minimise our impact The Arabian Gulf provides a crucial habitat for local marine

Offshore’s technical and management practice has resulted

species, as well as supporting the livelihoods of the local Al

in negligible impact to the marine environment and negligible

Fao fishing community. Offshore dredging and pipe lay can

impact on the livelihoods of local communities.

significantly disrupt the seabed, with potentially long-term negative impacts on local marine biodiversity.

Leighton Offshore use of Trailer Suction Hopper Dredger (TSHD) has minimised the long-term impacts of dredging activities of

If not properly managed, the negative impact on the marine

shallow water pipelay. Regular turbidity monitoring has indicated

ecosystem can be far-reaching, resulting in disruption to

that sediment dispersal during dredging using this technology

local biodiversity and migration of or damage to benthic

did not affect the Phytoplankton and Zooplankton in the project

species.

marine area. These are crucial to the continuing growth of the marine ecosystem.

We regularly capture and record data to identify and

Roger Wong, Senior Project Manger with members of his environmental team Donald Ip and Phil Mak

56

To reduce our water footprint, we use

Using pre-cast concrete roadside barriers

recycled water for our wheel washing system

also reduces our timber consumption and

and for dust suppression.

waste. This faster installation method also

delivered valuable time and cost savings to

To reduce our electricity use, we installed

solar photovoltaic panels and solar lighting

the project.

systems in our site office.

To reduce noise impact on pedestrians,

we set up flexible noise barriers along the

footbridges spanning our construction site.

We used precast overhead ventilation

Award in 2013, among others while Hong Kong’s

duct (OHVD) panels that are not only more

prestigious Environmental Campaign Committee

environmentally friendly, but by using our

recognised our project’s performance on energy

transportable scaffold module negates

and waste management by certifying our project

the need for employees to work at height

“EnergyWi$e” and “WasteWi$e”.

and by doing so cancelling out potential

safety risks.

To avoid noisy, high emission mechanical

equipment such as concrete lorry mixers,

we modified our construction method by

using pre-cast concrete roadside barriers

instead of cast-in-situ barriers.


monitor impacts arising from our marine construction

The project has also committed to maintain air quality levels at or

activities, as well as deploying state-of-the art technology

above 2010 levels. To achieve this, our team regularly monitors

and best practice in order to minimise our impact on the

NOX, SOX and CO2 emissions, while using low sulfur diesel and

marine environment.

properly maintaining our equipment. Continuous daily monitoring over a six month period has revealed that all recorded levels of

On our Sealine project, regular monitoring of marine

air quality meet Iraqi standards and WHO Guidelines.

species and the fishing industry indicates that Leighton

Our efforts have not gone unnoticed; the Hong Kong Government awarded our project Gold, Silver and Bronze trophies for Outstanding Environmental Performance Management Award in 2011, 2012 and 2013, a Diamond Caring

Environmental testing - Crude oil export facility reconstruction project Phase 3 (Sealine) Donald Ip Environmental engineer


57


Minimise our impact The Arabian Gulf provides a crucial habitat for local marine

Offshore’s technical and management practice has resulted

species, as well as supporting the livelihoods of the local Al

in negligible impact to the marine environment and negligible

Fao fishing community. Offshore dredging and pipe lay can

impact on the livelihoods of local communities.

significantly disrupt the seabed, with potentially long-term negative impacts on local marine biodiversity.

Leighton Offshore use of Trailer Suction Hopper Dredger (TSHD) has minimised the long-term impacts of dredging activities of

If not properly managed, the negative impact on the marine

shallow water pipelay. Regular turbidity monitoring has indicated

ecosystem can be far-reaching, resulting in disruption to

that sediment dispersal during dredging using this technology

local biodiversity and migration of or damage to benthic

did not affect the Phytoplankton and Zooplankton in the project

species.

marine area. These are crucial to the continuing growth of the marine ecosystem.

We regularly capture and record data to identify and

Roger Wong, Senior Project Manger with members of his environmental team Donald Ip and Phil Mak

56

To reduce our water footprint, we use

Using pre-cast concrete roadside barriers

recycled water for our wheel washing system

also reduces our timber consumption and

and for dust suppression.

waste. This faster installation method also

delivered valuable time and cost savings to

To reduce our electricity use, we installed

solar photovoltaic panels and solar lighting

the project.

systems in our site office.

To reduce noise impact on pedestrians,

we set up flexible noise barriers along the

footbridges spanning our construction site.

We used precast overhead ventilation

Award in 2013, among others while Hong Kong’s

duct (OHVD) panels that are not only more

prestigious Environmental Campaign Committee

environmentally friendly, but by using our

recognised our project’s performance on energy

transportable scaffold module negates

and waste management by certifying our project

the need for employees to work at height

“EnergyWi$e” and “WasteWi$e”.

and by doing so cancelling out potential

safety risks.

To avoid noisy, high emission mechanical

equipment such as concrete lorry mixers,

we modified our construction method by

using pre-cast concrete roadside barriers

instead of cast-in-situ barriers.


monitor impacts arising from our marine construction

The project has also committed to maintain air quality levels at or

activities, as well as deploying state-of-the art technology

above 2010 levels. To achieve this, our team regularly monitors

and best practice in order to minimise our impact on the

NOX, SOX and CO2 emissions, while using low sulfur diesel and

marine environment.

properly maintaining our equipment. Continuous daily monitoring over a six month period has revealed that all recorded levels of

On our Sealine project, regular monitoring of marine

air quality meet Iraqi standards and WHO Guidelines.

species and the fishing industry indicates that Leighton

Our efforts have not gone unnoticed; the Hong Kong Government awarded our project Gold, Silver and Bronze trophies for Outstanding Environmental Performance Management Award in 2011, 2012 and 2013, a Diamond Caring

Environmental testing - Crude oil export facility reconstruction project Phase 3 (Sealine) Donald Ip Environmental engineer


57


Reduce our Carbon Footprint Our Hong Kong operation has gone the extra mile on resource efficiency, with six project site offices deploying green building solutions. These initiatives enable us to test which practices work best, are cost effective and beneficial to the environment.

Use resources efficiently

fuel and cost efficient to develop a treatment facility

In August 2013 representatives from each of LAIO’s

Sustainability initiatives were designed for two

on site. The result has been a monthly saving of

business units attended an energy efficiency

early adopter projects - the Wynn Macau project in

10.21 tonnes of CO2e.

workshop with the objective of:

Macau, and the Wahana mine in South Kalimantan

•

Indonesia - with the objective of manging waste

The site’s annual average potable water

Understanding where our biggest energy

on construction projects and reducing carbon

consumption amounts to 3.3 million litres. Initially

consumption occurs by project type, by

emissions on mining projects.

the water had been transported by road from Udhampur, located 60km away.

industry sector, by business unit •

Identifying opportunities to reduce consumption

•

Identifying how to improve and leverage energy

• •

Chenani-Nashri Tunnel Project (India) By introducing a reverse osmosis water treatment

data gathering

The Chenani-Nashri Tunnel project being

system on-site to treat local water sources instead

Sharing and leveraging internal best practice on

undertaken by Leighton Wellspun involves the

of trucking in the water, the project team has

energy efficiency measures

construction of a 9km - 2 lane main tunnel along

prevented 8.9 tonnes of CO2e from entering the

Contributing to LAIO’s sustainability strategy

with parallel escape tunnel in the lower Himalayan

atmosphere every month.

mountain range. Centralised water heating systems with insulation

By mapping our energy profile by sector and by activity, we were able to identify our target areas

The remoteness of the site demands a large,

were also installed onsite, avoiding 354.19 tonnes of

for fuel reduction and energy efficiency. Through

permanent workforce to be housed and fed on-site,

CO2 from entering the atmosphere every month.

this exercise we identified our initial target areas

presenting challenges relating to energy and waste

for increasing energy efficiency and awareness,

management. To address these issues, the project

Other energy efficiency measures introduced at

including:

invested in onsite sewage and water treatment

the project site include the installation of energy

facilities, designed with fuel efficiency and reduced

efficient lighting, timers on light switches and other

emissions in mind.

electrical equipment, and Variable Frequency Drives

- Equipment idling

(VDFs) for automatic control of tunnel ventilation

- Operator training and behaviour - Change management via green office

On average, the site produces 1.3 million litres of

initiatives

sewage each month. With the nearest treatment

- Procurement and supply chain engagement

facility located in Jammu, a distance of 180km

fans and water supply pumps.

A novel ‘drought-resistant’ green roofing system, designed to provide noise and heat insulation was introduced on the cross-boundary GuangzhouShenzhen-Hong Kong Express Rail Link (XRL) joint venture site office roof, while the office at Central Interchange site, Hong Kong, boasts green roofs. The green roofing used on our Hong Kong site offices has proven to reduce roof temperatures by between 5-9 degrees Celsius, while small rooftop wind turbines generate around 100kWh per month. Solar photovoltaic panels generate around 390kWh for the Central Bypass Interchange Community Liaison centre, while a sunlight receiver unit, coupled with fibre optic cables, provides natural light to the Central Interchange site office’s conference room. Natural light wells and skylights were incorporate to enhance the working environment while reducing energy consumption at our site office for Hong Kong’s Lai Chi Kok Drainage Tunnel Scheme. Smart card systems, sensor lighting and timer switches are used to control office lighting and electrical appliance use in several of our site offices.

away, the project team calculated that it was more 58



59


Reduce our Carbon Footprint Our Hong Kong operation has gone the extra mile on resource efficiency, with six project site offices deploying green building solutions. These initiatives enable us to test which practices work best, are cost effective and beneficial to the environment.

Use resources efficiently

fuel and cost efficient to develop a treatment facility

In August 2013 representatives from each of LAIO’s

Sustainability initiatives were designed for two

on site. The result has been a monthly saving of

business units attended an energy efficiency

early adopter projects - the Wynn Macau project in

10.21 tonnes of CO2e.

workshop with the objective of:

Macau, and the Wahana mine in South Kalimantan

•

Indonesia - with the objective of manging waste

The site’s annual average potable water

Understanding where our biggest energy

on construction projects and reducing carbon

consumption amounts to 3.3 million litres. Initially

consumption occurs by project type, by

emissions on mining projects.

the water had been transported by road from Udhampur, located 60km away.

industry sector, by business unit •

Identifying opportunities to reduce consumption

•

Identifying how to improve and leverage energy

• •

Chenani-Nashri Tunnel Project (India) By introducing a reverse osmosis water treatment

data gathering

The Chenani-Nashri Tunnel project being

system on-site to treat local water sources instead

Sharing and leveraging internal best practice on

undertaken by Leighton Wellspun involves the

of trucking in the water, the project team has

energy efficiency measures

construction of a 9km - 2 lane main tunnel along

prevented 8.9 tonnes of CO2e from entering the

Contributing to LAIO’s sustainability strategy

with parallel escape tunnel in the lower Himalayan

atmosphere every month.

mountain range. Centralised water heating systems with insulation

By mapping our energy profile by sector and by activity, we were able to identify our target areas

The remoteness of the site demands a large,

were also installed onsite, avoiding 354.19 tonnes of

for fuel reduction and energy efficiency. Through

permanent workforce to be housed and fed on-site,

CO2 from entering the atmosphere every month.

this exercise we identified our initial target areas

presenting challenges relating to energy and waste

for increasing energy efficiency and awareness,

management. To address these issues, the project

Other energy efficiency measures introduced at

including:

invested in onsite sewage and water treatment

the project site include the installation of energy

facilities, designed with fuel efficiency and reduced

efficient lighting, timers on light switches and other

emissions in mind.

electrical equipment, and Variable Frequency Drives

- Equipment idling

(VDFs) for automatic control of tunnel ventilation

- Operator training and behaviour - Change management via green office

On average, the site produces 1.3 million litres of

initiatives

sewage each month. With the nearest treatment

- Procurement and supply chain engagement

facility located in Jammu, a distance of 180km

fans and water supply pumps.

A novel ‘drought-resistant’ green roofing system, designed to provide noise and heat insulation was introduced on the cross-boundary GuangzhouShenzhen-Hong Kong Express Rail Link (XRL) joint venture site office roof, while the office at Central Interchange site, Hong Kong, boasts green roofs. The green roofing used on our Hong Kong site offices has proven to reduce roof temperatures by between 5-9 degrees Celsius, while small rooftop wind turbines generate around 100kWh per month. Solar photovoltaic panels generate around 390kWh for the Central Bypass Interchange Community Liaison centre, while a sunlight receiver unit, coupled with fibre optic cables, provides natural light to the Central Interchange site office’s conference room. Natural light wells and skylights were incorporate to enhance the working environment while reducing energy consumption at our site office for Hong Kong’s Lai Chi Kok Drainage Tunnel Scheme. Smart card systems, sensor lighting and timer switches are used to control office lighting and electrical appliance use in several of our site offices.

away, the project team calculated that it was more 58



59


All site offices use energy efficient T5 lighting and

Conservation of natural heritage: Indonesia

energy labeled Grade 1 air conditioning and electrical

The Leighton Total Joint Operation (LTJO), which is

appliances, delivering up to 20% and 49% energy

building the new Australian Embassy in Patra Kuningan,

savings, respectively. Additionally, all new purchased

South Jakarta, was presented with a certificate of

plant meets current local emissions standards.

recognition for the largest relocation of banyan trees


Award

Awarding body

Project / Person

Country

2013

1st Runner up Young Green Leader Award

Hong Kong Institution of Engineers

Environmental Manager Lighting Chan

Hong Kong

2013

Green Contractor

Architectural Services Department

North Lantau Hospital project

Hong Kong

2013

Bronze Environmental Award

Mass Transit Railway Corporation


Hong Kong

2013



Express Rail Link - Contract 822

Hong Kong

2013

Bronze Outstanding Environmental Management and Performance Award (Public Work – New Works) 2013

Development Bureau and Construction Industry Council

Central-Wanchai Bypass Central Interchange

Hong Kong

2013

Bronze Outstanding Environmental Management and Performance Award (NonPublic Work Sites – New Works) 2013


West Kowloon Terminus Project

Hong Kong

2013

Grand Award 2013 Hong Kong Construction Association Innovative Environmental Awards

Hong Kong Construction Association

Express Rail Link Contract 810A

Hong Kong

undertaken in Indonesia by the Indonesian World Records Our sites are now beginning to use LED lighting to

Museum (Museum Rekor Dunia Indonesia - MURI).

illuminate street level pedestrian walkways and footpath

LTJO successfully relocated three banyan trees at the

underpasses. These improve luminescence, while

construction site of the New Australian Embassy.

reducing energy use by up to 50%. The relocation process took place between 720 February At the Kowloon West Terminus site, solar-powered traffic

2013, with up to four days needed per tree relocation. The

warning lights have avoided the use of 800 conventional

award was presented to our Australian Embassy project

batteries each month, reducing the site’s overall battery

team by Bapak Paulus Pangka SH, Senior Manager of the

waste by 40%.

Indonesian World Records Museum in June.

Our Hong Kong operation has representation at the

Water and waste management: Hong Kong

CCBF (Climate Change Business Forum) Advisory

All Hong Kong work sites have waste water treatment

Group, the construction demolition and waste advisory

plants on site. Several projects reuse this water for other

group, the energy efficiency advisory group, the British

purposes, such as wheel washing or dust suppression.

Chamber Environmental Committee, and the Australian chamber sustainable development committee, all of

Surplus excavated materials from projects are, whenever

which participate in consultation for government policy

possible, reused in other projects or taken to external

and programmes.

outlets for positive uses such as backfilling and rock crushing.

Minimise our impact on the environment Water monitoring: Indonesia

Environmentally friendly waste management: India Over 3000 workers residing in the LWIN TRIL work site camp, consuming up to 3 meals a day from the camp mess, generate a significant amount of food waste.

2013

Energy Saving Award for XRL VMV Energy Saving Competition



Hong Kong

2013

Bronze Award Hong Kong Award for Environmental Excellance 2013

Environmental Protection Department


Hong Kong

2013

Certificate of Merit Hong Kong Award for Environmental Excellance 2013



Hong Kong

2013




Hong Kong

2013

Certificate of Merit

Construction Environmental Award, Land Transport Authorigty

DTL3 Contract 935 - Construction & Completion of Jalan Besar Station & Associated Tunnels

Singapore

On the island of Borneo, where we are providing mining services to PT Marunda Grahamineral for a coal mining

Rather than sending the food waste to landfill, LWIN’s

project in Laung Tuhup of Central Kalimantan’s Murung

TRIL project team has set up an organic compost

Raya Regency, we have implemented regular water

converter to convert the kitchen waste into compost.

monitoring to prevent our activities from polluting the local environment and water supply, in particular, a small

Initially, a method of vermicomposting was employed

river nearby.

to manage the waste. However, due to the volume of waste produced the project adopted a technology-based

This includes monitoring the water’s pH, which is a

solution to convert the food waste matter into organic

measure of how acidic or basic it is, against the set

compost.

of standards maintained by Indonesia’s Ministry of Environment. The coal mining project involves the

The final compost is being used to fertilise the camp’s

extraction of over 2 million tonnes of high-quality thermal

fruit and vegetables gardens, and flower beds located on

and coking coal per annum by traditional drill and blast

site.

and truck and shovel methods.

60



61


All site offices use energy efficient T5 lighting and

Conservation of natural heritage: Indonesia

energy labeled Grade 1 air conditioning and electrical

The Leighton Total Joint Operation (LTJO), which is

appliances, delivering up to 20% and 49% energy

building the new Australian Embassy in Patra Kuningan,

savings, respectively. Additionally, all new purchased

South Jakarta, was presented with a certificate of

plant meets current local emissions standards.

recognition for the largest relocation of banyan trees


Award

Awarding body

Project / Person

Country

2013

1st Runner up Young Green Leader Award

Hong Kong Institution of Engineers

Environmental Manager Lighting Chan

Hong Kong

2013

Green Contractor

Architectural Services Department

North Lantau Hospital project

Hong Kong

2013




Hong Kong

2013



Express Rail Link - Contract 822

Hong Kong

2013

Bronze Outstanding Environmental Management and Performance Award (Public Work – New Works) 2013



Hong Kong

2013

Bronze Outstanding Environmental Management and Performance Award (NonPublic Work Sites – New Works) 2013


West Kowloon Terminus Project

Hong Kong

2013

Grand Award 2013 Hong Kong Construction Association Innovative Environmental Awards

Hong Kong Construction Association


Hong Kong

undertaken in Indonesia by the Indonesian World Records Our sites are now beginning to use LED lighting to

Museum (Museum Rekor Dunia Indonesia - MURI).

illuminate street level pedestrian walkways and footpath

LTJO successfully relocated three banyan trees at the

underpasses. These improve luminescence, while

construction site of the New Australian Embassy.

reducing energy use by up to 50%. The relocation process took place between 720 February At the Kowloon West Terminus site, solar-powered traffic

2013, with up to four days needed per tree relocation. The

warning lights have avoided the use of 800 conventional

award was presented to our Australian Embassy project

batteries each month, reducing the site’s overall battery

team by Bapak Paulus Pangka SH, Senior Manager of the

waste by 40%.

Indonesian World Records Museum in June.

Our Hong Kong operation has representation at the

Water and waste management: Hong Kong

CCBF (Climate Change Business Forum) Advisory

All Hong Kong work sites have waste water treatment

Group, the construction demolition and waste advisory

plants on site. Several projects reuse this water for other

group, the energy efficiency advisory group, the British

purposes, such as wheel washing or dust suppression.

Chamber Environmental Committee, and the Australian chamber sustainable development committee, all of

Surplus excavated materials from projects are, whenever

which participate in consultation for government policy

possible, reused in other projects or taken to external

and programmes.

outlets for positive uses such as backfilling and rock crushing.

Minimise our impact on the environment Water monitoring: Indonesia

Environmentally friendly waste management: India Over 3000 workers residing in the LWIN TRIL work site camp, consuming up to 3 meals a day from the camp mess, generate a significant amount of food waste.

2013

Energy Saving Award for XRL VMV Energy Saving Competition



Hong Kong

2013

Bronze Award Hong Kong Award for Environmental Excellance 2013



Hong Kong

2013




Hong Kong

2013




Hong Kong

2013

Certificate of Merit

Construction Environmental Award, Land Transport Authorigty

DTL3 Contract 935 - Construction & Completion of Jalan Besar Station & Associated Tunnels

Singapore

On the island of Borneo, where we are providing mining services to PT Marunda Grahamineral for a coal mining

Rather than sending the food waste to landfill, LWIN’s

project in Laung Tuhup of Central Kalimantan’s Murung

TRIL project team has set up an organic compost

Raya Regency, we have implemented regular water

converter to convert the kitchen waste into compost.

monitoring to prevent our activities from polluting the local environment and water supply, in particular, a small

Initially, a method of vermicomposting was employed

river nearby.

to manage the waste. However, due to the volume of waste produced the project adopted a technology-based

This includes monitoring the water’s pH, which is a

solution to convert the food waste matter into organic

measure of how acidic or basic it is, against the set

compost.

of standards maintained by Indonesia’s Ministry of Environment. The coal mining project involves the

The final compost is being used to fertilise the camp’s

extraction of over 2 million tonnes of high-quality thermal

fruit and vegetables gardens, and flower beds located on

and coking coal per annum by traditional drill and blast

site.

and truck and shovel methods.

60



61



Develop long-term community partnerships Promote our brand Prioritise local employment Take the initiative Engage with our communities

Case study: Toka Tindung Gold Mine Project In the heart of the North Sulawesi rainforest is the Toka Tindung gold mining project, a powerful example of Leighton Asia, India and Offshore’s commitment to up-skilling local communities. By Ronald Steven, Superintendent - Human Resources The Toka Tindung project, which commenced in 2010, took me back to my hometown of Minahasa to head up human resources and

By recruiting unskilled workers - men and women alike - and training them to operate mechanical and heavy equipment, LAIO fully demonstrated its commitment to up-skilling local communities. We rolled out heavy equipment operator training in a three-month window, during which locals demonstrated an impressive appetite for learning and for honing their newly acquired skills. Over 86 percent of the project’s 469 employees are now locally hired. When considering that the community initially lacked any mining skill whatsoever, this is an impressive feat.

community engagement on behalf of the project. Representing LAIO on home ground, to my own community, was both an honour and a challenge. The broad expectation was that Leighton’s presence in the area would have a positive knock-on effect on the local economy and on socio-economic conditions.

Community engagement sends a powerful message to our stakeholders about our commitment to leaving a positive legacy across Asia 62


Our Chenani-Nashri project gives back to local communities on many levels.

But to achieve this, the local community needed first to be empowered through education and

Ronald Steven Superintendent – HR

training. The 13 villages that surround the mine site are home to over 10 thousand people, most of whom are fishermen and farmers.


63



Develop long-term community partnerships Promote our brand Prioritise local employment Take the initiative Engage with our communities

Case study: Toka Tindung Gold Mine Project In the heart of the North Sulawesi rainforest is the Toka Tindung gold mining project, a powerful example of Leighton Asia, India and Offshore’s commitment to up-skilling local communities. By Ronald Steven, Superintendent - Human Resources The Toka Tindung project, which commenced in 2010, took me back to my hometown of Minahasa to head up human resources and

By recruiting unskilled workers - men and women alike - and training them to operate mechanical and heavy equipment, LAIO fully demonstrated its commitment to up-skilling local communities. We rolled out heavy equipment operator training in a three-month window, during which locals demonstrated an impressive appetite for learning and for honing their newly acquired skills. Over 86 percent of the project’s 469 employees are now locally hired. When considering that the community initially lacked any mining skill whatsoever, this is an impressive feat.

community engagement on behalf of the project. Representing LAIO on home ground, to my own community, was both an honour and a challenge. The broad expectation was that Leighton’s presence in the area would have a positive knock-on effect on the local economy and on socio-economic conditions.

Community engagement sends a powerful message to our stakeholders about our commitment to leaving a positive legacy across Asia 62


Our Chenani-Nashri project gives back to local communities on many levels.

But to achieve this, the local community needed first to be empowered through education and

Ronald Steven Superintendent – HR

training. The 13 villages that surround the mine site are home to over 10 thousand people, most of whom are fishermen and farmers.


63


Engage with our communities

Develop long-term community partnerships


Our Corporate Community Investment (CCI)

At project and corporate level, local community

LAIO and its employees responded swiftly when

programme is an integral part of how we live

engagement helps us to meet stakeholder

Typhoon Yolanda struck the coastal Philippines

by our core value ‘Recognise the needs of

expectations and provides an opportunity for us

provinces of Leyte and Semar on 8 November

the Community’. Throughout 2013, our CCI

to enhance our reputation by giving back to the

2013. In its wake, the typhoon left more than

programme was split across four key areas:

communities in which we operate.

5000 dead and millions displaced.

Corporate partnerships comprise

Our commitment to developing long-term

To provide immediate assistance to those in

strategic forms of support of not-for-profit or

community partnerships and prioritising local

need, LAIO and its employees raised a total

community organisations,that we have selected

employment is evident in our local-expat

of US$65,597 which was donated via the

to support on the basis that they help us to

employment ratio:

Philippine Businesses for Social Progress

address our stakeholder concerns. These

(PBSP), a well-established local aid agency that

formed 7% of our overall CCI budget in 2013.

LAIO has supported on previous occasions.

Commercial sponsorships enable us

Corporate Community Investment 2013

to support important local events and in doing

The amount raised was enough to provide almost 6400 people with five days of relief in food, drinking water and hygiene kits. For many,

so, become actively involved in the celebration

Corporate Partnerships

12% 7%

of local cultures. This accounted for 46% of our

Charitable Donations

total CCI budget in 2013.

Commercial Sponsorships

35%

Charitable donations accounted for

this support literally offered a lifeline.

46%

In-kind contributions

Bantayan Island was one of the worst hit areas and the typhoon’s aftermath made it difficult to transport relief goods to the area. PBSP and

35% of our CCI budget in 2013. The nature of

LAIO targeted this area for the provision of relief

such donations is voluntary and intermittent,

packs and, going forward, will focus efforts

supporting a wide range of causes in response

on a local community recovery and rebuild

to local community needs and appeals from

programme.

not-for-profit organisations, with limited direct relevance to to the business.

Corporate Community Investment across Asia

Leighton also assisted several employees to return to their respective Provinces to reunite

In-kind support and donations

LAIO Corporate (head office HK)

formed 12% of our CCI in 2013. Some examples

16%

of our in-kind support and donations include donating electronic equipment from demobilised projects to charity organisations such as Tabungan Surga Foundation in Indonesia to be passed on to schools and adult training centres;

1% 7% 0% 3%

HK & Macau Philippines

6%

47%

with their families. We also provided immediate support to those employees who sadly lost their homes to the typhoon.

Mongolia Indonesia

20%

Singapore Offshore & Malaysia

and donating washing machines, tumble dryers, groceries and clothing Care Malaysia, to be passed on to elderly and homeless residences.

The above chart represents community investment by country. LAIO Corporate represents investment by head office on behalf of all Leighton Asia Business Units.

LWIN (65%)

64



65


Engage with our communities



Our Corporate Community Investment (CCI)

At project and corporate level, local community

LAIO and its employees responded swiftly when

programme is an integral part of how we live

engagement helps us to meet stakeholder

Typhoon Yolanda struck the coastal Philippines

by our core value ‘Recognise the needs of

expectations and provides an opportunity for us

provinces of Leyte and Semar on 8 November

the Community’. Throughout 2013, our CCI

to enhance our reputation by giving back to the

2013. In its wake, the typhoon left more than

programme was split across four key areas:

communities in which we operate.

5000 dead and millions displaced.

Corporate partnerships comprise

Our commitment to developing long-term

To provide immediate assistance to those in

strategic forms of support of not-for-profit or

community partnerships and prioritising local

need, LAIO and its employees raised a total

community organisations,that we have selected

employment is evident in our local-expat

of US$65,597 which was donated via the

to support on the basis that they help us to

employment ratio:

Philippine Businesses for Social Progress

address our stakeholder concerns. These

(PBSP), a well-established local aid agency that

formed 7% of our overall CCI budget in 2013.

LAIO has supported on previous occasions.

Commercial sponsorships enable us

Corporate Community Investment 2013

to support important local events and in doing

The amount raised was enough to provide almost 6400 people with five days of relief in food, drinking water and hygiene kits. For many,

so, become actively involved in the celebration

Corporate Partnerships

12% 7%

of local cultures. This accounted for 46% of our

Charitable Donations

total CCI budget in 2013.

Commercial Sponsorships

35%

Charitable donations accounted for

this support literally offered a lifeline.

46%

In-kind contributions

Bantayan Island was one of the worst hit areas and the typhoon’s aftermath made it difficult to transport relief goods to the area. PBSP and

35% of our CCI budget in 2013. The nature of

LAIO targeted this area for the provision of relief

such donations is voluntary and intermittent,

packs and, going forward, will focus efforts

supporting a wide range of causes in response

on a local community recovery and rebuild

to local community needs and appeals from

programme.

not-for-profit organisations, with limited direct relevance to to the business.

Corporate Community Investment across Asia

Leighton also assisted several employees to return to their respective Provinces to reunite

In-kind support and donations

LAIO Corporate (head office HK)

formed 12% of our CCI in 2013. Some examples

16%

of our in-kind support and donations include donating electronic equipment from demobilised projects to charity organisations such as Tabungan Surga Foundation in Indonesia to be passed on to schools and adult training centres;

1% 7% 0% 3%

HK & Macau Philippines

6%

47%

with their families. We also provided immediate support to those employees who sadly lost their homes to the typhoon.

Mongolia Indonesia

20%

Singapore Offshore & Malaysia

and donating washing machines, tumble dryers, groceries and clothing Care Malaysia, to be passed on to elderly and homeless residences.

The above chart represents community investment by country. LAIO Corporate represents investment by head office on behalf of all Leighton Asia Business Units.

LWIN (65%)

64



65


Take the initiative

infrastructure contractors. Our Community Liaison

“Poorly managed community relations can potentially delay projects, or worse, undermine reputations.”

Officer, Twinko Li, provides insight onto how we

Considering ourselves part of Hong Kong’s

manage these challenges by making community

vibrant community, we also gladly participated

engagement our priority.

in festive, local events such as the Aberdeen

Famed for being the world’s most ‘vertical city’ and for boasting one of the highest population densities on the planet, Hong Kong presents a unique set of challenges for building and

Dragon Boat Race and the opening ceremony Among the most expensive cities in the world to

of Tai Wong Yeh Temple, an historical temple in

live, Hong Kong’s limited land footprint has made

Hong Kong.

space a premium. The resulting demand for better infrastructure and taller buildings has rendered

We are often recognised for our genuine effort

direct interface and disruption to local communities

to engage with local communities: the sheer

simply unavoidable.

number of appreciation letters and awards we receive from stakeholders and clients

Poorly managed community relations can

throughout the year are testimony to this.

potentially delay projects, or worse, undermine reputations. That is why, in Hong Kong’s context, our core value of ‘recognising the needs of the community’ is fundamental to our success.

Awards

To maintain a strong relationship with our stakeholders, we establish communication

Date of award

channels with our stakeholders very early on.

Award

Awarding body

Business Unit

Through regular meetings, information corners, resident briefings and 24-hour hotlines, we endeavor to listen to the community, to understand how our works are affecting their daily life, business or property, and to identify how best to

11/2013

Top Fundraising Team Award, International Coastal Cleanup 2013

HK Green Council

Hong Kong and Macau

6/2013

Bronze Award, Corporate and Employee Contribution Programme

The Community Chest (HK charitable organisation)

Hong Kong and Macau

Twinko Li Community Liaison Officer

address concerns.

66



67


Take the initiative

infrastructure contractors. Our Community Liaison

“Poorly managed community relations can potentially delay projects, or worse, undermine reputations.”

Officer, Twinko Li, provides insight onto how we

Considering ourselves part of Hong Kong’s

manage these challenges by making community

vibrant community, we also gladly participated

engagement our priority.

in festive, local events such as the Aberdeen

Famed for being the world’s most ‘vertical city’ and for boasting one of the highest population densities on the planet, Hong Kong presents a unique set of challenges for building and

Dragon Boat Race and the opening ceremony Among the most expensive cities in the world to

of Tai Wong Yeh Temple, an historical temple in

live, Hong Kong’s limited land footprint has made

Hong Kong.

space a premium. The resulting demand for better infrastructure and taller buildings has rendered

We are often recognised for our genuine effort

direct interface and disruption to local communities

to engage with local communities: the sheer

simply unavoidable.

number of appreciation letters and awards we receive from stakeholders and clients

Poorly managed community relations can

throughout the year are testimony to this.

potentially delay projects, or worse, undermine reputations. That is why, in Hong Kong’s context, our core value of ‘recognising the needs of the community’ is fundamental to our success.

Awards

To maintain a strong relationship with our stakeholders, we establish communication

Date of award

channels with our stakeholders very early on.

Award

Awarding body

Business Unit

Through regular meetings, information corners, resident briefings and 24-hour hotlines, we endeavor to listen to the community, to understand how our works are affecting their daily life, business or property, and to identify how best to

11/2013

Top Fundraising Team Award, International Coastal Cleanup 2013

HK Green Council

Hong Kong and Macau

6/2013

Bronze Award, Corporate and Employee Contribution Programme

The Community Chest (HK charitable organisation)

Hong Kong and Macau

Twinko Li Community Liaison Officer

address concerns.

66



67


Create a fun, challenging and performancedriven culture

celebrate success empower people encourage teamwork embrace cultural differences work hard and play hard prioritise local employment By creating a fun, challenging and performancedriven workplace, we ensure that our employees have the opportunity to both hone their strengths and work collaboratively to achieve excellent results. Our commitment to empowering our people and celebrating our successes makes Leighton Asia a compelling choice for graduates. Thomson K.Y. Leung, Graduate Engineer, Hong Kong, explains why he decided to join Leighton Asia. As a final-year student looking for a job, Leighton really caught my eye. It was one of the few companies that offered the possibility of being more than just a day job. All the employees looked energetic and engaged, and Leighton’s albums were packed with images that exuded team morale, such as the Dragon Boat Competition and Charity Walks. A company that encourages its staff to have fun and interact with each other outside of working hours most definitely enhances a sense of belonging. This was a key motivating factor behind my decision to start a career with Leighton.

In 2012-13 I was fortunate enough to hold the position of Chairman of the Leighton Young Professional Club. During this time I discovered that our core value ‘Create a fun, challenging and performance-driven culture’ is present everywhere in our company. The friendships we have created at Leighton are priceless. There are so many opportunities to meet colleagues from different project sites. The dragon boat competition and the training leading up to it provided an opportunity for team building that was really beyond compare. Not only did the competition earn us a trophy; it forged strong teammates and close friendships. Leighton doesn’t simply provide a job; it invests significant resources to ensure that we, the graduate employees, learn, play and develop, both personally and professionally. The resulting relationships forged, the memories, backed by encouragement and appreciation from the company, is without a doubt the right mix for building a strong team of people dedicated to ensuring the future success of this business.

“As a graduate engineer, Leighton really caught my eye…It offered the possibility of more than just a day job…” Thomson Leung Graduate Engineer, Hong Kong and Macau

68



69


Create a fun, challenging and performancedriven culture

celebrate success empower people encourage teamwork embrace cultural differences work hard and play hard prioritise local employment By creating a fun, challenging and performancedriven workplace, we ensure that our employees have the opportunity to both hone their strengths and work collaboratively to achieve excellent results. Our commitment to empowering our people and celebrating our successes makes Leighton Asia a compelling choice for graduates. Thomson K.Y. Leung, Graduate Engineer, Hong Kong, explains why he decided to join Leighton Asia. As a final-year student looking for a job, Leighton really caught my eye. It was one of the few companies that offered the possibility of being more than just a day job. All the employees looked energetic and engaged, and Leighton’s albums were packed with images that exuded team morale, such as the Dragon Boat Competition and Charity Walks. A company that encourages its staff to have fun and interact with each other outside of working hours most definitely enhances a sense of belonging. This was a key motivating factor behind my decision to start a career with Leighton.

In 2012-13 I was fortunate enough to hold the position of Chairman of the Leighton Young Professional Club. During this time I discovered that our core value ‘Create a fun, challenging and performance-driven culture’ is present everywhere in our company. The friendships we have created at Leighton are priceless. There are so many opportunities to meet colleagues from different project sites. The dragon boat competition and the training leading up to it provided an opportunity for team building that was really beyond compare. Not only did the competition earn us a trophy; it forged strong teammates and close friendships. Leighton doesn’t simply provide a job; it invests significant resources to ensure that we, the graduate employees, learn, play and develop, both personally and professionally. The resulting relationships forged, the memories, backed by encouragement and appreciation from the company, is without a doubt the right mix for building a strong team of people dedicated to ensuring the future success of this business.

“As a graduate engineer, Leighton really caught my eye…It offered the possibility of more than just a day job…” Thomson Leung Graduate Engineer, Hong Kong and Macau

68



69


Celebrate success At Leighton Asia, in order to create a culture where

Over 300 of our senior managers were given “License to

expectations are clearly understood and aligned to business

Hire” training which exposed our senior managers to new

priorities, we have implemented a contemporary approach

ways of approaching recruitment interviews to ensure that

to performance management for our employees.

we only hire the best of the best for Leighton.

We have developed a bonus structure that recognises

Coaching has been proven to be one of the most effective

and rewards achievement to ensure that our employees

ways in which managers are able to develop the capabilities

receive full recognition for meeting their performance goals.

of their teams. Therefore, we developed and rolled out

Together, these two aspects of performance and reward

“Manager as Coach” training across Leighton Asia.

come together to ensure we maintain a performance driven culture.

We spent time educating our managers on how they can best communicate with their people to ensure that lessons

Encourage teamwork

are learned, improvements in performance are made and

Our projects across Asia often require our people to work in

business profitability is enhanced.

remote locations, often under demanding conditions. Part of our culture is to ensure that we nurture an enduring team

Executive development

spirit within a collaborative environment that empowers our

The Leighton Asia executive leadership team attended a

people to rise up to such challenges.

PROJECT leadership summit in August 2013. The summit saw Leighton’s top 100 global leaders come together in

We at Leighton Asia pride ourselves on our ability to

Sydney to discuss and share perspectives on the business

successfully deliver projects in the most extreme conditions

and our future strategic direction.

and remote locations. Whether it be in the sub-zero winters

Talent management

of the Mongolian steppes, or the sweltering heat of the

Over the two days our leaders undertook Master Classes

Borneo jungle, our people unfailingly pull together as a

and workshops to broaden their thinking and perspectives.

team to successfully deliver our projects and meet client

The group was fortunate enough to have presentations from

Employee engagement

expectations.

academics, industry leaders, politicians, sporting leaders

In July 2013, all Leighton Asia employees were invited

The results confirmed the underlying strength of the LAIO

and media commentators on issues impacting the business

to participate in an employee engagement survey.

culture and emloyment brand. Throughout 2014, further

Empower people

engagements actions will be created for each region to

and their own leadership style.

Throughout 2013 we continued to build and develop

A total of 68% of our employees responded to the

the capabilities of our managers. One particular area of

survey, which was designed to give us a better

development targeted was the skills of our management to

understanding of how engaged employees are with the

recognise and ensure we were recruiting the right talent.

company, how enabled they feel, and whether adequate

continue this positive level of engagement.

Am I enaged, enabled and energized to deliver my best performance?

support is in place to enable our employees to sustain

Sustainable Engagement

their energy and enthusiasm for working at LAIO. The survey was administered between 15th July and 7th August 2013 Across LAIO’s 6 Business Units. Nine

Engagement

demographic questions were asked, which allowed the data to be organised by: business units, location, job

Commitment Satisfaction

level, employment status, length of service, age, gender, ethnic/cultural background & functional role.

70


Am I happy here?

Do I intend to stay here?

Am I rationally and emotionally connected and motivated to invest discretionary effort


71


Celebrate success At Leighton Asia, in order to create a culture where

Over 300 of our senior managers were given “License to

expectations are clearly understood and aligned to business

Hire” training which exposed our senior managers to new

priorities, we have implemented a contemporary approach

ways of approaching recruitment interviews to ensure that

to performance management for our employees.

we only hire the best of the best for Leighton.

We have developed a bonus structure that recognises

Coaching has been proven to be one of the most effective

and rewards achievement to ensure that our employees

ways in which managers are able to develop the capabilities

receive full recognition for meeting their performance goals.

of their teams. Therefore, we developed and rolled out

Together, these two aspects of performance and reward

“Manager as Coach” training across Leighton Asia.

come together to ensure we maintain a performance driven culture.

We spent time educating our managers on how they can best communicate with their people to ensure that lessons

Encourage teamwork

are learned, improvements in performance are made and

Our projects across Asia often require our people to work in

business profitability is enhanced.

remote locations, often under demanding conditions. Part of our culture is to ensure that we nurture an enduring team

Executive development

spirit within a collaborative environment that empowers our

The Leighton Asia executive leadership team attended a

people to rise up to such challenges.

PROJECT leadership summit in August 2013. The summit saw Leighton’s top 100 global leaders come together in

We at Leighton Asia pride ourselves on our ability to

Sydney to discuss and share perspectives on the business

successfully deliver projects in the most extreme conditions

and our future strategic direction.

and remote locations. Whether it be in the sub-zero winters

Talent management

of the Mongolian steppes, or the sweltering heat of the

Over the two days our leaders undertook Master Classes

Borneo jungle, our people unfailingly pull together as a

and workshops to broaden their thinking and perspectives.

team to successfully deliver our projects and meet client

The group was fortunate enough to have presentations from

Employee engagement

expectations.

academics, industry leaders, politicians, sporting leaders

In July 2013, all Leighton Asia employees were invited

The results confirmed the underlying strength of the LAIO

and media commentators on issues impacting the business

to participate in an employee engagement survey.

culture and emloyment brand. Throughout 2014, further

Empower people

engagements actions will be created for each region to

and their own leadership style.

Throughout 2013 we continued to build and develop

A total of 68% of our employees responded to the

the capabilities of our managers. One particular area of

survey, which was designed to give us a better

development targeted was the skills of our management to

understanding of how engaged employees are with the

recognise and ensure we were recruiting the right talent.

company, how enabled they feel, and whether adequate

continue this positive level of engagement.

Am I enaged, enabled and energized to deliver my best performance?

support is in place to enable our employees to sustain

Sustainable Engagement

their energy and enthusiasm for working at LAIO. The survey was administered between 15th July and 7th August 2013 Across LAIO’s 6 Business Units. Nine

Engagement

demographic questions were asked, which allowed the data to be organised by: business units, location, job

Commitment Satisfaction

level, employment status, length of service, age, gender, ethnic/cultural background & functional role.

70


Am I happy here?

Do I intend to stay here?

Am I rationally and emotionally connected and motivated to invest discretionary effort


71


Scholarships (Indonesia)

Leighton Masters After four years, the Leighton Masters Degree in Project

“The four-year Leighton Masters Degree programme was

LAIO supports local educational and training needs of

Bandung’s Rector, Dr Akhmaloka, expressed his appreciation

Management has produced its first graduating class. The

an exceptionally unique experience for me. In particular, the

the construction and mining industries by providing a

to all the scholarship donors and called for greater support to

tailored programme was developed by Leighton Holdings

residential week gave me a chance to meet people from

number of scholarships each year to qualified students,

assist students in their future development.

in partnership with the University of New South Wales in

different operating companies within the group and share job

apprentices and employees. In Indonesia, we were

Australia.

knowledge and experience with them,” noted Patrick.

honoured at an Institut Teknologi Bandung programme

Dr Akhmaloka presented a number of awards, including one

for scholarship donors.

to our Indonesia operation, which was received by Corporate Human Resources Manager Rina Hamarto.

Representing the best and brightest from across the

The greater part of the four-year course is conducted through

Leighton Group, nine graduates were provided with

distance learning with participants attending the classroom-

Held at the Aston Primera Pasteur Hotel Bandung in

a golden opportunity to further enhance their project

based portion of the programme in Sydney, Australia. Since

West Java on 8 February, the event was themed “We

management skills and deepen their knowledge of

launching five years ago, the Leighton Masters programme,

Share and We Care” and highlighted the work of 55

Leighton Group processes and procedures.

has proven to be extremely sought-after among Leighton’s

scholarship donors. In his speech, Institut Teknologi

young professionals. Among the 2013 graduates were Senior Site Agent William Holden and Site Agent Patrick Kwong from Leighton Asia, India and Offshore.

72



73


Scholarships (Indonesia)

Leighton Masters After four years, the Leighton Masters Degree in Project

“The four-year Leighton Masters Degree programme was

LAIO supports local educational and training needs of

Bandung’s Rector, Dr Akhmaloka, expressed his appreciation

Management has produced its first graduating class. The

an exceptionally unique experience for me. In particular, the

the construction and mining industries by providing a

to all the scholarship donors and called for greater support to

tailored programme was developed by Leighton Holdings

residential week gave me a chance to meet people from

number of scholarships each year to qualified students,

assist students in their future development.

in partnership with the University of New South Wales in

different operating companies within the group and share job

apprentices and employees. In Indonesia, we were

Australia.

knowledge and experience with them,” noted Patrick.

honoured at an Institut Teknologi Bandung programme

Dr Akhmaloka presented a number of awards, including one

for scholarship donors.

to our Indonesia operation, which was received by Corporate Human Resources Manager Rina Hamarto.

Representing the best and brightest from across the

The greater part of the four-year course is conducted through

Leighton Group, nine graduates were provided with

distance learning with participants attending the classroom-

Held at the Aston Primera Pasteur Hotel Bandung in

a golden opportunity to further enhance their project

based portion of the programme in Sydney, Australia. Since

West Java on 8 February, the event was themed “We

management skills and deepen their knowledge of

launching five years ago, the Leighton Masters programme,

Share and We Care” and highlighted the work of 55

Leighton Group processes and procedures.

has proven to be extremely sought-after among Leighton’s

scholarship donors. In his speech, Institut Teknologi

young professionals. Among the 2013 graduates were Senior Site Agent William Holden and Site Agent Patrick Kwong from Leighton Asia, India and Offshore.

72



73


Work hard and play hard (Hong Kong)

Peak condition

Members of Scintilla Team Leighton set sail from Tai

Since entering Hong Kong’s famed Dragon Boat

A weekend of competitive sailing and hill running

Tam Bay just after 10am on 26 January and arrived at

competition four years ago, our Hong Kong

was the perfect reason for a few sports and fitness

the finish line for a fourth-place finish.

operations had its best results yet at this year’s

enthusiasts from our Hong Kong operation to join

Stanley Dragon Boat Championship.

this year’s Four Peaks Race from 26-27 January.

During the race, team members kayaked to shore and climbed Lantau Peak, the highest point on Lantau

It was the first time in the history of Leighton’s

The annual event run by the Aberdeen Boat Club

Island at 934 metres; the 433-metre Violet Hill, in Tai

participation that both teams competed in the

comprises a challenging overnight endurance race

Tam Country Park; the 353-metre Mount Stenhouse

Cup Finals and the first time our teams have

that combines sailing, paddling or swimming, and

on Lamma Island; and the 300-metre peak at Cape

ever entered the Gold Cup Finals. The Leighton

running as teams sail to and climb four of Hong

d’Aguilar.

Biceps team came in as fifth runner-up in the

Kong’s highest peaks.

Men’s B Gold Cup and the Leighton Triceps team achieved a merit award in the Men’s B Bronze Cup.

Sprinting ahead Leighton left other companies well behind to win the 4 x 100m relay competition at the Construction Industry Council Training Academy (CICTA) Sports Day in Hong Kong in March 2013. Leighton staff participated in traditional track and field events as well as more original team-building challenges with colleagues and

Taking home Gold at the 2013 Sun Life Stanley International Dragon Boat Championships

friends. In keeping with our core value of ‘providing

A number of our Hong Kong-based staff joined a

a fun, challenging and performance-driven

record of more than 72,000 marathon participants

culture’ Leighton competed well and displayed

on 24 February. We ran as part of the Hong Kong

strong team spirit in the telematch games. In the

government’s Drainage Services Department’s

individual events we achieved first runner-up in

DSD Partners, which included other consultants

the high jump and second runner-up in shot put.

and contractors, in a 10-kilometre race. Organised by the Hong Kong Amateur Athletic

Going the distance

Association, the annual marathon has grown in

Members from our Hong Kong and Macau

size and stature since the first race in 1997 and is

business participated in this year’s Standard

now one of Hong Kong’s signature international

Chartered Hong Kong Marathon.

sporting events.

74



75


Work hard and play hard (Hong Kong)

Peak condition

Members of Scintilla Team Leighton set sail from Tai

Since entering Hong Kong’s famed Dragon Boat

A weekend of competitive sailing and hill running

Tam Bay just after 10am on 26 January and arrived at

competition four years ago, our Hong Kong

was the perfect reason for a few sports and fitness

the finish line for a fourth-place finish.

operations had its best results yet at this year’s

enthusiasts from our Hong Kong operation to join

Stanley Dragon Boat Championship.

this year’s Four Peaks Race from 26-27 January.

During the race, team members kayaked to shore and climbed Lantau Peak, the highest point on Lantau

It was the first time in the history of Leighton’s

The annual event run by the Aberdeen Boat Club

Island at 934 metres; the 433-metre Violet Hill, in Tai

participation that both teams competed in the

comprises a challenging overnight endurance race

Tam Country Park; the 353-metre Mount Stenhouse

Cup Finals and the first time our teams have

that combines sailing, paddling or swimming, and

on Lamma Island; and the 300-metre peak at Cape

ever entered the Gold Cup Finals. The Leighton

running as teams sail to and climb four of Hong

d’Aguilar.

Biceps team came in as fifth runner-up in the

Kong’s highest peaks.

Men’s B Gold Cup and the Leighton Triceps team achieved a merit award in the Men’s B Bronze Cup.

Sprinting ahead Leighton left other companies well behind to win the 4 x 100m relay competition at the Construction Industry Council Training Academy (CICTA) Sports Day in Hong Kong in March 2013. Leighton staff participated in traditional track and field events as well as more original team-building challenges with colleagues and

Taking home Gold at the 2013 Sun Life Stanley International Dragon Boat Championships

friends. In keeping with our core value of ‘providing

A number of our Hong Kong-based staff joined a

a fun, challenging and performance-driven

record of more than 72,000 marathon participants

culture’ Leighton competed well and displayed

on 24 February. We ran as part of the Hong Kong

strong team spirit in the telematch games. In the

government’s Drainage Services Department’s

individual events we achieved first runner-up in

DSD Partners, which included other consultants

the high jump and second runner-up in shot put.

and contractors, in a 10-kilometre race. Organised by the Hong Kong Amateur Athletic

Going the distance

Association, the annual marathon has grown in

Members from our Hong Kong and Macau

size and stature since the first race in 1997 and is

business participated in this year’s Standard

now one of Hong Kong’s signature international

Chartered Hong Kong Marathon.

sporting events.

74



75


Encourage

innovation and technological leadership

Challenge the conventional Adapt to new technologies Invest for the future Share knowledge Learn from mistakese

Across our business we actively encourage our

The traveling formwork solution was recognised

employees to challenge the conventional and

for its innovative breakthrough by Hong Kong

find more efficient, innovative ways to improve

Construction Association, which presented the

how we get the job done.

JV with the coveted Grand Award at its 2013 Innovative Environmental Awards ceremony.

Share knowledge Taking a groundbreaking approach to formwork

Adapt to new technologies

for the Kowloon Terminus (810A) project, the

Our Hong Kong and Macau operation has been

Leighton-Gammon joint venture devised an

instrumental in excavating some of the deepest

rolling travelling formwork solution in place of

and longest tunnels in Hong Kong for clients

traditional wooden formwork.

such as MTRC and the Hong Kong government. These challenging projects have demanded

The rolling structural steel traveling formwork

the use of state-of-the art drill & blast and

solution yields several benefits. Chief among

excavation techniques and equipment.

these are enhanced safety due to a reduced

“Our deployment of innovative technologies and pioneering business systems consistently deliver operational excellence ”

need for work at height; a reduction in the

On the Harbour Area Treatment Scheme

volume of single-use timber traditionally

Stage 2A project, which forms part of the

required for formwork; an overall reduction in

deepest tunnelling network in Hong Kong, we

embodied carbon for the project; and reduced

encountered water inflows of more than one

labour costs.

thousand litres per minute, when drilling.

The solution was planned to have avoided the

Using improved drilling and grouting techniques

use of 60,000 m2 of plywood (the equivalent

we secured the integrity of the ground and

of 1,000 trees), along with the associated

structure above and reduced water inflows to

waste it represents. Fabricated entirely with

as low as 2.5 litres over a 100 metre stretch of

steel, the resulting traveling formwork has low

tunnel. This result is world leading – it has rarely

embodied carbon (1.77kgCO2/kg), compared

been attempted or achieved on any other tunnel

to an aluminum equivalent (8.24kgCO2/kg). The

project.

solution is 100% recyclable and can be used on other projects.

76



77


Encourage

innovation and technological leadership

Challenge the conventional Adapt to new technologies Invest for the future Share knowledge Learn from mistakese

Across our business we actively encourage our

The traveling formwork solution was recognised

employees to challenge the conventional and

for its innovative breakthrough by Hong Kong

find more efficient, innovative ways to improve

Construction Association, which presented the

how we get the job done.

JV with the coveted Grand Award at its 2013 Innovative Environmental Awards ceremony.

Share knowledge Taking a groundbreaking approach to formwork

Adapt to new technologies

for the Kowloon Terminus (810A) project, the

Our Hong Kong and Macau operation has been

Leighton-Gammon joint venture devised an

instrumental in excavating some of the deepest

rolling travelling formwork solution in place of

and longest tunnels in Hong Kong for clients

traditional wooden formwork.

such as MTRC and the Hong Kong government. These challenging projects have demanded

The rolling structural steel traveling formwork

the use of state-of-the art drill & blast and

solution yields several benefits. Chief among

excavation techniques and equipment.

these are enhanced safety due to a reduced

“Our deployment of innovative technologies and pioneering business systems consistently deliver operational excellence ”

need for work at height; a reduction in the

On the Harbour Area Treatment Scheme

volume of single-use timber traditionally

Stage 2A project, which forms part of the

required for formwork; an overall reduction in

deepest tunnelling network in Hong Kong, we

embodied carbon for the project; and reduced

encountered water inflows of more than one

labour costs.

thousand litres per minute, when drilling.

The solution was planned to have avoided the

Using improved drilling and grouting techniques

use of 60,000 m2 of plywood (the equivalent

we secured the integrity of the ground and

of 1,000 trees), along with the associated

structure above and reduced water inflows to

waste it represents. Fabricated entirely with

as low as 2.5 litres over a 100 metre stretch of

steel, the resulting traveling formwork has low

tunnel. This result is world leading – it has rarely

embodied carbon (1.77kgCO2/kg), compared

been attempted or achieved on any other tunnel

to an aluminum equivalent (8.24kgCO2/kg). The

project.

solution is 100% recyclable and can be used on other projects.

76



77


For this project, we also devised an automated

Elsewhere in our Indonesia and Asia Mining

rock spoil excavation technique that enabled

operation we have made a leap in operational

us to shift five 20-tonne skip loads per hour.

efficiency, cost savings and environmental

Our improved system has since locally been

benefits by introducing on-site oil sampling

adopted as best practice.

analysis technology at our Toka Tindung, Martabe and MGM mine projects. The onsite

On the Guangzhou-Shenzhen-Hong Kong

laboratory enables:

Express Rail Link (XRL) project – the longest in Hong Kong – our alternative design saw us

Rapid turnaround results

using 2 of only 6 T13 Jumbo Drills in the world. These drilling rigs provided the height necessary

Improved communication (drivers are able

to reach and cover the face of Leighton’s

talk to the lab directly to understand test

alternative engineering proposal.

results)

Challenge the conventional To improve productivity on our Wahana mine project in Indonesia, our team devised an innovative method that has reduced the amount of explosive required for each blast, while avoiding costs and emissions associated with imported, off-the-shelf products. The so-called Puji Stemming Holder, a local adaption of the tried and tested air decking method, is named after its inventor Pujianto. It uses only locally available materials and currently generates monthly savings of up to US$500,000.

Up to a 40% cost reduction for analysis

Invest for the future

Enhanced part failure prevention

One of our mine sites in Indonesia saw truck productivity increase 25-30% throughout 2013

Increased ability to control core returns

coupled with significant fuel efficiency-related

(parts warranty)

savings, following the implementation of Jigsaw, a mining operations software solution. The

Reduced oil use (with both financial and

Jigsaw system provides critical information

environmental benefits)

such as machine status, vehicle positions and operator information.

This initiative has generated significant cost savings for the Indonesia Asia mining business.

By updating mine site calculations every 320 seconds, the system ensures trucks are taking

When it comes to waste management, waste oil

the most efficient route and avoids truck queues

presents an environmental challenge. To reduce

at the excavators. The Jigsaw system not only

our hazardous waste streams and further

increases productivity and reduces unnecessary

enhance our fossil fuel efficiency, our team on

fuel burn; it also enhances truck driver safety

the MSJ mining project in Indonesia is currently

by providing speed limit alerts and road hazard

assessing the use of waste oil in place of diesel

alarms. We aim to deploy the Jigsaw system on

in our ANFO explosives mix.

other mine sites throughout Asia in the future.

Not only would this avoid the use of 240,000 litres of diesel per year, it would also provide a more transparent and traceable waste management option for our waste oil. 78



79


For this project, we also devised an automated

Elsewhere in our Indonesia and Asia Mining

rock spoil excavation technique that enabled

operation we have made a leap in operational

us to shift five 20-tonne skip loads per hour.

efficiency, cost savings and environmental

Our improved system has since locally been

benefits by introducing on-site oil sampling

adopted as best practice.

analysis technology at our Toka Tindung, Martabe and MGM mine projects. The onsite

On the Guangzhou-Shenzhen-Hong Kong

laboratory enables:

Express Rail Link (XRL) project – the longest in Hong Kong – our alternative design saw us

Rapid turnaround results

using 2 of only 6 T13 Jumbo Drills in the world. These drilling rigs provided the height necessary

Improved communication (drivers are able

to reach and cover the face of Leighton’s

talk to the lab directly to understand test

alternative engineering proposal.

results)

Challenge the conventional To improve productivity on our Wahana mine project in Indonesia, our team devised an innovative method that has reduced the amount of explosive required for each blast, while avoiding costs and emissions associated with imported, off-the-shelf products. The so-called Puji Stemming Holder, a local adaption of the tried and tested air decking method, is named after its inventor Pujianto. It uses only locally available materials and currently generates monthly savings of up to US$500,000.

Up to a 40% cost reduction for analysis

Invest for the future

Enhanced part failure prevention

One of our mine sites in Indonesia saw truck productivity increase 25-30% throughout 2013

Increased ability to control core returns

coupled with significant fuel efficiency-related

(parts warranty)

savings, following the implementation of Jigsaw, a mining operations software solution. The

Reduced oil use (with both financial and

Jigsaw system provides critical information

environmental benefits)

such as machine status, vehicle positions and operator information.

This initiative has generated significant cost savings for the Indonesia Asia mining business.

By updating mine site calculations every 320 seconds, the system ensures trucks are taking

When it comes to waste management, waste oil

the most efficient route and avoids truck queues

presents an environmental challenge. To reduce

at the excavators. The Jigsaw system not only

our hazardous waste streams and further

increases productivity and reduces unnecessary

enhance our fossil fuel efficiency, our team on

fuel burn; it also enhances truck driver safety

the MSJ mining project in Indonesia is currently

by providing speed limit alerts and road hazard

assessing the use of waste oil in place of diesel

alarms. We aim to deploy the Jigsaw system on

in our ANFO explosives mix.

other mine sites throughout Asia in the future.

Not only would this avoid the use of 240,000 litres of diesel per year, it would also provide a more transparent and traceable waste management option for our waste oil. 78



79

ASSURANCE STATEMENT

ASSURANCE OPINION On the basis of the methodology described and the verification work performed, we are satisfied that the information and data contained within the Report verified is accurate, reliable and provides a fair and balanced representation of LAIO sustainability activities in 2013. The assurance team is of the opinion that the Report can be used by the Reporting Organisation’s stakeholders. AA1000 ACCOUNTABILITY PRINCIPLES (2008) CONCLUSIONS, FINDINGS AND RECOMMENDATIONS

SGS STATEMENT ON ASSURANCE Leighton Asia, India and Offshore Sustainability Report 2013 NATURE AND SCOPE OF THE ASSURANCE SGS Hong Kong Ltd was commissioned by Leighton Asia, India and Offshore (thereafter as “LAIO”) to conduct an independent assurance of the “Sustainability Report 2013”. The scope of the assurance, based on the SGS Sustainability Report Assurance methodology, included the text and data in accompanying tables, contained in the Report. Data and information of LAIO were included in this assurance process, which covered Hong Kong & Macau, Southeast Asia, Indonesia and India.

Inclusivity:

Stakeholder mapping, engagement and prioritize of stakeholders and their concerns are clearly presented.

Materiality:

Materiality assessment is fair. Materiality matrix has been developed.

Responsiveness: Stakeholders expectations are addressed and response to stakeholders is on a systematic basis.

Signed: For and on behalf of SGS Hong Kong Limited

The information in the report and its presentation are the responsibility of LAIO. SGS has not been involved in the preparation of any of the material included in the Report. Our responsibility is to express an opinion on the text, data, graphs and statements within the mentioned scope of assurance set out below with the intention to inform all LAIO’s stakeholders. The SGS protocols are in accordance with internationally recognized guidance, including the Principles contained within the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (2011) for accuracy and reliability and the guidance on levels of assurance contained within the AA1000 series of standards and guidance for Assurance Providers.

Ben Tsang Senior Director, China and Hong Kong Systems and Services Certification 10 July 2014 www.sgs.com

Patrick LEUNG Lead Assurer Systems and Services Certification

This Report has been assured at a basic assurance by using our protocols for: Evaluation of content veracity; and Evaluation against the AA1000 Accountability Principles (2008). The assurance comprised a combination of pre-assurance research, interviews with the management and employees, project site visit, documentation and record review. Financial data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process. STATEMENT OF INDEPENDENCE AND COMPETENCE The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems and services certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance. SGS affirms our independence from LAIO, being free from bias and conflicts of interest with organization, its subsidiaries and stakeholders. The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, and comprised auditors registered with Lead Auditor of SA 8000, ISO 26000, ISO 14001, OHSAS 18001 and GRI-nominated Trainer in Sustainability Reporting.

80

GP5024 Issue 3


GP5024 Issue 2


81

ASSURANCE STATEMENT

ASSURANCE OPINION On the basis of the methodology described and the verification work performed, we are satisfied that the information and data contained within the Report verified is accurate, reliable and provides a fair and balanced representation of LAIO sustainability activities in 2013. The assurance team is of the opinion that the Report can be used by the Reporting Organisation’s stakeholders. AA1000 ACCOUNTABILITY PRINCIPLES (2008) CONCLUSIONS, FINDINGS AND RECOMMENDATIONS

SGS STATEMENT ON ASSURANCE Leighton Asia, India and Offshore Sustainability Report 2013 NATURE AND SCOPE OF THE ASSURANCE SGS Hong Kong Ltd was commissioned by Leighton Asia, India and Offshore (thereafter as “LAIO”) to conduct an independent assurance of the “Sustainability Report 2013”. The scope of the assurance, based on the SGS Sustainability Report Assurance methodology, included the text and data in accompanying tables, contained in the Report. Data and information of LAIO were included in this assurance process, which covered Hong Kong & Macau, Southeast Asia, Indonesia and India.

Inclusivity:

Stakeholder mapping, engagement and prioritize of stakeholders and their concerns are clearly presented.

Materiality:

Materiality assessment is fair. Materiality matrix has been developed.

Responsiveness: Stakeholders expectations are addressed and response to stakeholders is on a systematic basis.

Signed: For and on behalf of SGS Hong Kong Limited

The information in the report and its presentation are the responsibility of LAIO. SGS has not been involved in the preparation of any of the material included in the Report. Our responsibility is to express an opinion on the text, data, graphs and statements within the mentioned scope of assurance set out below with the intention to inform all LAIO’s stakeholders. The SGS protocols are in accordance with internationally recognized guidance, including the Principles contained within the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (2011) for accuracy and reliability and the guidance on levels of assurance contained within the AA1000 series of standards and guidance for Assurance Providers.

Ben Tsang Senior Director, China and Hong Kong Systems and Services Certification 10 July 2014 www.sgs.com

Patrick LEUNG Lead Assurer Systems and Services Certification

This Report has been assured at a basic assurance by using our protocols for: Evaluation of content veracity; and Evaluation against the AA1000 Accountability Principles (2008). The assurance comprised a combination of pre-assurance research, interviews with the management and employees, project site visit, documentation and record review. Financial data drawn directly from independently audited financial accounts has not been checked back to source as part of this assurance process. STATEMENT OF INDEPENDENCE AND COMPETENCE The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems and services certification; quality, environmental, social and ethical auditing and training; environmental, social and sustainability report assurance. SGS affirms our independence from LAIO, being free from bias and conflicts of interest with organization, its subsidiaries and stakeholders. The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, and comprised auditors registered with Lead Auditor of SA 8000, ISO 26000, ISO 14001, OHSAS 18001 and GRI-nominated Trainer in Sustainability Reporting.

80

GP5024 Issue 3


GP5024 Issue 2


81

GRI Checklist 1. Strategy and Analysis Profile Disclosure

Disclosure

4. Governance, Commitments, and Engagement Location of Disclosure

1.1

Statement from the most senior decision-maker of the organization.

1.2

Description of key impacts, risks, and opportunities.

p.6-7 p.26-31

2. Organisational Profile Profile Disclosure

Disclosure Name of the organization.

Cover

2.2

Primary brands, products, and/or services.

p.8-9

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

2.4

Location of organisation’s headquarters.

p.8

2.5

Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

p.8

2.6

Nature of ownership and legal form.

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

p.8

2.8

Scale of the reporting organization.

p.10

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

2.10

Awards received in the reporting period.

p.3, 22-23

3.1

82

Disclosure Reporting period (e.g., fiscal/calendar year) for information provided.

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

p.22-23

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or nonexecutive members.

p.22-23

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

p.24-25

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

p.22-23

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

p.51-53

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.

2012 report: p.59

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

p.26

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

p.28, p.29

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

p.24, 26-31

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

p.60

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

p.60

4.14

List of stakeholder groups engaged by the organization.

4.15

Basis for identification and selection of stakeholders with whom to engage.

p.24, 25, 28, 29

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

p.24, 25, 28, 29

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

p.24, 25, 28, 29

Location of Disclosure p.3

3.2

Date of most recent previous report (if any).

p.3

3.3

Reporting cycle (annual, biennial, etc.)

p.3

3.4

Contact point for questions regarding the report or its contents.

p.3,

3.5

Process for defining report content, including materiality and stakeholders

p.4, 24, 25, 28, 29

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

p.3,4, 8,9, 86

3.7

State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

p.3,4,86

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

p.88

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

p.84-87

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/ acquisitions, change of base years/periods, nature of business, measurement methods).

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

3.12

Table identifying the location of the Standard Disclosures in the report.

3.13

Policy and current practice with regard to seeking external assurance for the report.


p.22-23

p.44-45,p,57,p.63

3. Report Parameters

p.82-85

Location of Disclosure

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

p.8,p22-23

p.3, p22-23

Disclosure

4.1


2.1

Profile Disclosure

Profile Disclosure

2012 report: p.37-41, p.48-49

p.24,25,28,29

p.3, 16, 80-83 p.78-79 p.3


83

GRI Checklist 1. Strategy and Analysis Profile Disclosure

Disclosure

4. Governance, Commitments, and Engagement Location of Disclosure

1.1

Statement from the most senior decision-maker of the organization.

1.2

Description of key impacts, risks, and opportunities.

p.6-7 p.26-31

2. Organisational Profile Profile Disclosure

Disclosure Name of the organization.

Cover

2.2

Primary brands, products, and/or services.

p.8-9

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

2.4

Location of organisation’s headquarters.

p.8

2.5

Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

p.8

2.6

Nature of ownership and legal form.

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

p.8

2.8

Scale of the reporting organization.

p.10

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

2.10

Awards received in the reporting period.

p.3, 22-23

3.1

82

Disclosure Reporting period (e.g., fiscal/calendar year) for information provided.

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

p.22-23

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or nonexecutive members.

p.22-23

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

p.24-25

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

p.22-23

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

p.51-53

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.

2012 report: p.59

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

p.26

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

p.28, p.29

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

p.24, 26-31

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

p.60

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

p.60

4.14

List of stakeholder groups engaged by the organization.

4.15

Basis for identification and selection of stakeholders with whom to engage.

p.24, 25, 28, 29

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

p.24, 25, 28, 29

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

p.24, 25, 28, 29

Location of Disclosure p.3

3.2

Date of most recent previous report (if any).

p.3

3.3

Reporting cycle (annual, biennial, etc.)

p.3

3.4

Contact point for questions regarding the report or its contents.

p.3,

3.5

Process for defining report content, including materiality and stakeholders

p.4, 24, 25, 28, 29

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

p.3,4, 8,9, 86

3.7

State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

p.3,4,86

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

p.88

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

p.84-87

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/ acquisitions, change of base years/periods, nature of business, measurement methods).

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

3.12

Table identifying the location of the Standard Disclosures in the report.

3.13

Policy and current practice with regard to seeking external assurance for the report.


p.22-23

p.44-45,p,57,p.63

3. Report Parameters

p.82-85


Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

p.8,p22-23

p.3, p22-23

Disclosure

4.1


2.1

Profile Disclosure

Profile Disclosure

2012 report: p.37-41, p.48-49

p.24,25,28,29

p.3, 16, 80-83 p.78-79 p.3


83

GRI Checklist STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

STANDARD DISCLOSURES PART III: Performance Indicators

REPORT ON THE DISCLOSURES ON MANAGEMENT APPROACH FOR EACH CATEGORY. YOU SHOULD BE ABLE TO DISCLOSE THIS INFORMATION ON THE ASPECT LEVEL FOR EACH PERFORMANCE INDICATOR THAT YOU HAVE REPORTED FULLY ON.

REPORT FULLY ON AT LEAST 20 CORE OR ADDITIONAL PERFORMANCE INDICATORS - AT LEAST 1 FROM EACH CATEGORY (ECONOMIC, ENVIRONMENT, LABOR PRACTICES & DECENT WORK, HUMAN RIGHTS, SOCIETY, PRODUCT RESPONSIBLITY)

DMA

DMA EC Aspects

DMA EN

Aspects

Disclosure

Disclosure on Management Approach EC Economic performance Market presence

Energy

p.16, 27-29, 50-56

Water

Did not capture water use data during 2013

Transport

Aspects

p.18, 18, 55-60 p.26, 50-53, 2012 report p.27, p.40, p.45 Did not capture scope 3 emissions in 2013

Employment

p.14, 15. 69 - 75

Labor/management relations

p.14, 15, 69 -75

Occupational health and safety

p.12, 13, 38-45


Disclosure

p.15, 68-75 p.14,15, 68-75

Disclosure on Management Approach SO


Economic performance EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

EC3

Coverage of the organization’s defined benefit plan obligations.

p. 6-7, p.26-29

Market presence EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

p.14-15,70-73

Environmental

p.55-60

Disclosure on Management Approach LA

Training and education

DMA SO

p.8-9

p.18, 27-29, 55-60

Compliance

Aspects

p.10,11

Materials

Emissions, effluents and waste

DMA LA

Indicator

Disclosure on Management Approach EN

Biodiversity

Economic


Indicator

Disclosure


Materials EN2

Percentage of materials used that are recycled input materials.

p.18-19

Energy EN3

Direct energy consumption by primary energy source.

p.16

EN4

Indirect energy consumption by primary source.

p.16

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

p.55-56

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

p.55-56

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity.

p.48


Community

p.25, 25, 63-67

EN16

Total direct and indirect greenhouse gas emissions by weight.

p.16

Corruption

p.52,53

EN17

Other relevant indirect greenhouse gas emissions by weight.

p.16

Products and services

84


EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

p.50-56

LA12

Percentage of employees receiving regular performance and career development reviews.

p.64-71


85

GRI Checklist STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

STANDARD DISCLOSURES PART III: Performance Indicators

REPORT ON THE DISCLOSURES ON MANAGEMENT APPROACH FOR EACH CATEGORY. YOU SHOULD BE ABLE TO DISCLOSE THIS INFORMATION ON THE ASPECT LEVEL FOR EACH PERFORMANCE INDICATOR THAT YOU HAVE REPORTED FULLY ON.

REPORT FULLY ON AT LEAST 20 CORE OR ADDITIONAL PERFORMANCE INDICATORS - AT LEAST 1 FROM EACH CATEGORY (ECONOMIC, ENVIRONMENT, LABOR PRACTICES & DECENT WORK, HUMAN RIGHTS, SOCIETY, PRODUCT RESPONSIBLITY)

DMA

DMA EC Aspects

DMA EN

Aspects

Disclosure

Disclosure on Management Approach EC Economic performance Market presence

Energy

p.16, 27-29, 50-56

Water

Did not capture water use data during 2013

Transport

Aspects

p.18, 18, 55-60 p.26, 50-53, 2012 report p.27, p.40, p.45 Did not capture scope 3 emissions in 2013

Employment

p.14, 15. 69 - 75

Labor/management relations

p.14, 15, 69 -75

Occupational health and safety

p.12, 13, 38-45


Disclosure

p.15, 68-75 p.14,15, 68-75

Disclosure on Management Approach SO


Economic performance EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

EC3

Coverage of the organization’s defined benefit plan obligations.

p. 6-7, p.26-29

Market presence EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

p.14-15,70-73

Environmental

p.55-60

Disclosure on Management Approach LA

Training and education

DMA SO

p.8-9

p.18, 27-29, 55-60

Compliance

Aspects

p.10,11

Materials


DMA LA

Indicator

Disclosure on Management Approach EN

Biodiversity

Economic


Indicator

Disclosure


Materials EN2

Percentage of materials used that are recycled input materials.

p.18-19

Energy EN3

Direct energy consumption by primary energy source.

p.16

EN4

Indirect energy consumption by primary source.

p.16

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

p.55-56

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

p.55-56

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity.

p.48


Community

p.25, 25, 63-67

EN16

Total direct and indirect greenhouse gas emissions by weight.

p.16

Corruption

p.52,53

EN17

Other relevant indirect greenhouse gas emissions by weight.

p.16

Products and services

84


EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

p.50-56

LA12

Percentage of employees receiving regular performance and career development reviews.

p.64-71


85

Appendix Table 2 Explanation of terms Significant Near Miss Incident Frequency Rate (NMIFR) is the total number of near miss incidents having Business units refer to our regional operations and are defined as follows:

the potential to result in a total recordable injury but, due to circumstances, resulted in no personal, plant or property damage per million man-hours worked. This is calculated as:

BU1:

Hong Kong, Macau

Hong Kong and Macau:

BU2:

Mongolia and Philippines

South East Asia Construction: Malaysia, Singapore, Thailand,

BU3:

Indonesia

Laos, Vietnam

BU4:

Malaysia, Singapore, Thailand, Laos, Vietnam


Indoesia, Mongolia

LO:

Malaysia, United Arab Emirates and Iraq

Leighton Offshore:

Malaysia, United Arab Emirates

% Close-out of Incident Alerts is the percentage of incident alerts issued which have been formally closed

and Iraq

out and evidence returned to the business unit.

Leighton India:

India

LWIN: India

Hong Kong, Macau Number of Significant Near Miss Incidents in the month x 1,000,000 Number of man-hours worked in the month

Table 1 Class 1 Damage Frequency Rate (C1DFR) is the number of incidents of Class 1 Damage per million man-

Table 3

hours worked in a period. Number of Class 1 in the month x 1,000,000 Number of hours worked in the month

Environmental incidents are broken down into the following classifications: Level 1 High severity:

Pollution or degradation which has or may have irreversible

detrimental effects on the environment and/or community.

Lost Time Injury Frequency Rate (LTIFR) is the number of occurrences of lost time injury/disease (personal

Level 2 Medium severity: Pollution or degradation which has persistent but reversible

damage) per million man-hours worked.

effects on the environment and/or community.

Number of lost time injuries in the month x 1,000,000 Number of hours worked in the month

Environmental Incident Frequency Rate (EIFR) is the number of environmental incidents (Level 1 and 2) per million man-hours in a period.

Severity Rate (SR) is the number of working days lost due to lost time injury per million man-hours worked.

Number of level 1 and 2 environmental incidents x 1,000,000

Days lost /Number of hours worked in a period x 1,000,000 Average Lost Time Rate (ALTR) determines the average lost time per lost time injury.

Number of man-hours worked in the month Incident Rate is the number of occurrences of environmental incidents for every 100 workers employed (normally taken to be 200,000 hours).

Days lost

Number of level 1 and 2 environmental incidents x 100

Number of lost time injuries in the month

Number of workers Total Recordable Injury Frequency Rate (TRIFR) is the number of (Class 1 Damage injuries + LTI + MTI + RWI) per million man-hours worked.

Breaches refer to the number of breaches of statutory environmental requirements and environmental

approvals or licence conditions. This includes improvement notices, prohibition notices, penalty notices

(Number of fatalities + CI+LTI+MTI+RWI) x 1000000 Number of hours worked in the month

Breaches refer to the number of breaches of statutory health requirement, including improvement notices,

and prosecutions. Formal public complaints are the number of formal complaints received relating to company activities.

prohibition notices, penalty notices and prosecutions.

86



87

Appendix Table 2 Explanation of terms Significant Near Miss Incident Frequency Rate (NMIFR) is the total number of near miss incidents having Business units refer to our regional operations and are defined as follows:

the potential to result in a total recordable injury but, due to circumstances, resulted in no personal, plant or property damage per million man-hours worked. This is calculated as:

BU1:

Hong Kong, Macau

Hong Kong and Macau:

BU2:

Mongolia and Philippines

South East Asia Construction: Malaysia, Singapore, Thailand,

BU3:

Indonesia

Laos, Vietnam

BU4:

Malaysia, Singapore, Thailand, Laos, Vietnam


Indoesia, Mongolia

LO:

Malaysia, United Arab Emirates and Iraq

Leighton Offshore:

Malaysia, United Arab Emirates

% Close-out of Incident Alerts is the percentage of incident alerts issued which have been formally closed

and Iraq

out and evidence returned to the business unit.

Leighton India:

India

LWIN: India

Hong Kong, Macau Number of Significant Near Miss Incidents in the month x 1,000,000 Number of man-hours worked in the month

Table 1 Class 1 Damage Frequency Rate (C1DFR) is the number of incidents of Class 1 Damage per million man-

Table 3

hours worked in a period. Number of Class 1 in the month x 1,000,000 Number of hours worked in the month

Environmental incidents are broken down into the following classifications: Level 1 High severity:

Pollution or degradation which has or may have irreversible

detrimental effects on the environment and/or community.

Lost Time Injury Frequency Rate (LTIFR) is the number of occurrences of lost time injury/disease (personal

Level 2 Medium severity: Pollution or degradation which has persistent but reversible

damage) per million man-hours worked.

effects on the environment and/or community.

Number of lost time injuries in the month x 1,000,000 Number of hours worked in the month

Environmental Incident Frequency Rate (EIFR) is the number of environmental incidents (Level 1 and 2) per million man-hours in a period.

Severity Rate (SR) is the number of working days lost due to lost time injury per million man-hours worked.

Number of level 1 and 2 environmental incidents x 1,000,000

Days lost /Number of hours worked in a period x 1,000,000 Average Lost Time Rate (ALTR) determines the average lost time per lost time injury.

Number of man-hours worked in the month Incident Rate is the number of occurrences of environmental incidents for every 100 workers employed (normally taken to be 200,000 hours).

Days lost

Number of level 1 and 2 environmental incidents x 100

Number of lost time injuries in the month

Number of workers Total Recordable Injury Frequency Rate (TRIFR) is the number of (Class 1 Damage injuries + LTI + MTI + RWI) per million man-hours worked.

Breaches refer to the number of breaches of statutory environmental requirements and environmental

approvals or licence conditions. This includes improvement notices, prohibition notices, penalty notices

(Number of fatalities + CI+LTI+MTI+RWI) x 1000000 Number of hours worked in the month

Breaches refer to the number of breaches of statutory health requirement, including improvement notices,

and prosecutions. Formal public complaints are the number of formal complaints received relating to company activities.

prohibition notices, penalty notices and prosecutions.

86



87

Carbon Footprint Our carbon footprint is calculated on the basis of

combusted

Where:

Performance measure:

With the exception of BU1, in 2013 the majority of data was manually captured by each project

Eij is the emissions of gas type (j), (carbon

in excel spreadsheets and is reported upward

Greenhouse gas (GHG) emissions, defined as a

Energy (GJ) per manhour worked is used to

dioxide, methane or nitrous oxide, from fuel type (i)

from project site to Business unit head office

combination of gases, including carbon dioxide

provided the energy intensity of our office,

(CO2-e tonnes)

on a monthly basis; and from Business unit to

(CO2), Methane (CH4), Nitrous Oxide (N2O)

construction, mining and offshore activities in

and Sulfur Dioxide (SO2) produced from the

2013 (covering the period 1 January 2012 to

Q is the quantity of fuel type (i) (kilolitres)

combustion of fuel and other events.

31 December 2013). Total emissions during the

combusted for stationary energy purposes

headquarters on a quarterly basis.

reporting year are compared to total emissions in GHG emissions are expressed in tonnes of

the baseline year (2012).

BU1 used a greenhouse gas emissions and resource use data base to capture data at project

ECi is the energy content factor of fuel type (i)

level for monthly BU reporting purposes.

(gigajoules per kilolitre) for stationary energy

Carbon emission factors are used to convert

Explanation of methodology for calculating Scope 1 emissions

purposes, according to the emissions factors

energy used on our project sites to emissions of

provided by NGA.

CO2.

Each project records volumes of fuel combustion

If Q is measured in gigajoules then EC1 is 1

Carbon emission factors for fuels are provided

of Diesel, Petrol and LPG. The fuel component

EFijoxec is the emissions factor for each fuel type

by the Australian National Greenhouse Gas

of our ammonium nitrate fuel oil (ANFO) use (for

(j) (which includes the effect of an oxidation factor)

Accounts (2013) and the Intergovernmental Panel

Leighton Asia’s Emissions and Resources use

explosives in civil engineering and mining activities)

for fuel type (i) (kilograms Co2-e per gigajoule),

on Climate Change (IPCC).

reporting boundary includes all activities that a

is accounted for in our diesel combustion figures.

according to the emissions factors provided by

carbon dioxide equivalent (tCO2 –e). This measure allows the total emissions of various GHG to be expressed as a single value of tonnes of CO2.

Reporting boundary

LAIO business unit performs within the physical site boundary.

NGA. In order to calculate the energy intensity of our operations, each energy use is converted to

When control of the site is shared with other

gigajoules (GJ), using standard conversion factors

parties, including other Leighton operating

and calorific values.

companies, for example joint ventures and

Scope 2 emissions are emissions released as a result of the offsite generation of electricity or the

Organisational reporting boundary

production of heat, cooling or steam consumed by the site, including subcontractors on site.

The energy sources that result in CO2 emissions include electricity, coal, natural gas, diesel and

Carbon emission factors for electricity (Scope

petrol.

2 emissions) reflect the country or sub-region

partnernships, the LAIO business unit’s Emissions

CO2 emissions from energy used on project sites

and Resources use footprint is the percentage

is calculated from energy sources in gigajoules

equal to their equity share or ownership portion.

multiplied by the carbon emission factor for each

In 2013, some but not all fuel use by

provided by the International Energy Agency (IEA)

energy type (in kg CO2 per GJ).

subcontractors operating within our project site

and IPCC.

Scope 1 emissions are direct emissions arising

where each project site is located. These are

boundaries was captured. By 2015 we aim to be

from sources owned or operated by Leighton

Total CO2 emissions during the reporting year is

capturing all subcontractor fuel use within our

Asia, India and Offshore and its subcontractors,

the sum of CO2 emissions for each energy source.

project site boundaries.

for example, emissions from the plant fleet on site.

Definition

Waste types and volumes are defined as follows: We calculate fuel combustion emissions as per litre

We do not measure levels of two other major

of fuel combusted, based on the following formula,

GHGs because our emissions of these are

Solid waste (Tonnes)

using emissions factors provided by the Australian

negligible. These include: perfluorocarbons

Liquid waste (Cubic Metres)

National Greenhouse Gas Accounts (NGA):

(mainly associated with aluminium and

Incinerated Waste (Tonnes)

- CO2 emissions are represented on the basis of litres of fuel combusted and in the change in

magnesium production) and sulphur hexafluoride Eij= Qi x ECi x EFijoxec

(used in some electrical equipment).

the tonnes of CO2 from energy use in the year ended 31 December 2013 compared to the 2012

Waste footprint:

1000000

Waste performance, or intensity is calculated on the basis of kilograms of waste per manhour

baseline; and

Performance data preparation and assumptions

- Total energy consumption in GJ per litre of fuel

Primary energy use data is taken from meter

worked.

readings and invoices and captured for each project site. 88



89

Carbon Footprint Our carbon footprint is calculated on the basis of

combusted

Where:

Performance measure:

With the exception of BU1, in 2013 the majority of data was manually captured by each project

Eij is the emissions of gas type (j), (carbon

in excel spreadsheets and is reported upward

Greenhouse gas (GHG) emissions, defined as a

Energy (GJ) per manhour worked is used to

dioxide, methane or nitrous oxide, from fuel type (i)

from project site to Business unit head office

combination of gases, including carbon dioxide

provided the energy intensity of our office,

(CO2-e tonnes)

on a monthly basis; and from Business unit to

(CO2), Methane (CH4), Nitrous Oxide (N2O)

construction, mining and offshore activities in

and Sulfur Dioxide (SO2) produced from the

2013 (covering the period 1 January 2012 to

Q is the quantity of fuel type (i) (kilolitres)

combustion of fuel and other events.

31 December 2013). Total emissions during the

combusted for stationary energy purposes

headquarters on a quarterly basis.

reporting year are compared to total emissions in GHG emissions are expressed in tonnes of

the baseline year (2012).

BU1 used a greenhouse gas emissions and resource use data base to capture data at project

ECi is the energy content factor of fuel type (i)

level for monthly BU reporting purposes.

(gigajoules per kilolitre) for stationary energy

Carbon emission factors are used to convert

Explanation of methodology for calculating Scope 1 emissions

purposes, according to the emissions factors

energy used on our project sites to emissions of

provided by NGA.

CO2.

Each project records volumes of fuel combustion

If Q is measured in gigajoules then EC1 is 1

Carbon emission factors for fuels are provided

of Diesel, Petrol and LPG. The fuel component

EFijoxec is the emissions factor for each fuel type

by the Australian National Greenhouse Gas

of our ammonium nitrate fuel oil (ANFO) use (for

(j) (which includes the effect of an oxidation factor)

Accounts (2013) and the Intergovernmental Panel

Leighton Asia’s Emissions and Resources use

explosives in civil engineering and mining activities)

for fuel type (i) (kilograms Co2-e per gigajoule),

on Climate Change (IPCC).

reporting boundary includes all activities that a

is accounted for in our diesel combustion figures.

according to the emissions factors provided by

carbon dioxide equivalent (tCO2 –e). This measure allows the total emissions of various GHG to be expressed as a single value of tonnes of CO2.

Reporting boundary

LAIO business unit performs within the physical site boundary.

NGA. In order to calculate the energy intensity of our operations, each energy use is converted to

When control of the site is shared with other

gigajoules (GJ), using standard conversion factors

parties, including other Leighton operating

and calorific values.

companies, for example joint ventures and

Scope 2 emissions are emissions released as a result of the offsite generation of electricity or the

Organisational reporting boundary

production of heat, cooling or steam consumed by the site, including subcontractors on site.

The energy sources that result in CO2 emissions include electricity, coal, natural gas, diesel and

Carbon emission factors for electricity (Scope

petrol.

2 emissions) reflect the country or sub-region

partnernships, the LAIO business unit’s Emissions

CO2 emissions from energy used on project sites

and Resources use footprint is the percentage

is calculated from energy sources in gigajoules

equal to their equity share or ownership portion.

multiplied by the carbon emission factor for each

In 2013, some but not all fuel use by

provided by the International Energy Agency (IEA)

energy type (in kg CO2 per GJ).

subcontractors operating within our project site

and IPCC.

Scope 1 emissions are direct emissions arising

where each project site is located. These are

boundaries was captured. By 2015 we aim to be

from sources owned or operated by Leighton

Total CO2 emissions during the reporting year is

capturing all subcontractor fuel use within our

Asia, India and Offshore and its subcontractors,

the sum of CO2 emissions for each energy source.

project site boundaries.

for example, emissions from the plant fleet on site.

Definition

Waste types and volumes are defined as follows: We calculate fuel combustion emissions as per litre

We do not measure levels of two other major

of fuel combusted, based on the following formula,

GHGs because our emissions of these are

Solid waste (Tonnes)

using emissions factors provided by the Australian

negligible. These include: perfluorocarbons

Liquid waste (Cubic Metres)

National Greenhouse Gas Accounts (NGA):

(mainly associated with aluminium and

Incinerated Waste (Tonnes)

- CO2 emissions are represented on the basis of litres of fuel combusted and in the change in

magnesium production) and sulphur hexafluoride Eij= Qi x ECi x EFijoxec

(used in some electrical equipment).

the tonnes of CO2 from energy use in the year ended 31 December 2013 compared to the 2012

Waste footprint:

1000000

Waste performance, or intensity is calculated on the basis of kilograms of waste per manhour

baseline; and

Performance data preparation and assumptions

- Total energy consumption in GJ per litre of fuel

Primary energy use data is taken from meter

worked.

readings and invoices and captured for each project site. 88



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