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SUSTAINABILITY REPORT MANAGEMENT APPROACHES 2018-2019 Ii SUSTAINABILITY REPORT MANAGEMENT APPROACHES 2018-2019 SUSTAINABILITY REPORT MANAGEMENT APPROACHES 2018-2019 ii SUSTAINABILITY REPORT MANAGEMENT APPROACHES 2018-2019 CONTENTS Section Page Governance 1 Governance structure 1 Values and norms of behaviour 2 Managing risk 3 Anti-corruption 3 Safety – Zero harm 4 Health and safety and working environment 4 Workforce represented in formal joint management – 5 worker health and safety committees Customer health and safety and compliance of products and services 5 Environment – Zero waste 7 Environmental management 7 Materials 8 Effluent and waste 10 Energy 11 Value Chain – Co-creation 13 Influencing the Industry and committing to change 13 Our supply chain 14 People – Caring 15 Employment 15 Training and education 15 Career development and support 16 SUSTAINABILITY REPORT MANAGEMENT APPROACHES 2018-2019 1 GOVERNANCE MANAGEMENT APPROACHES GOVERNANCE STRUCTURE GRI 102-18 The overall management of the company’s business Committee (RMCC) which meets four times a year is vested in the Board of Executive Directors (also to review the business from a risk and compliance referred to as the Executive Committee or ExCo), which perspective. Other members of the RMCC are select is chaired by the Chief Executive. All Executive Directors members of ExCo, our General Counsel, risk assurance are full- time employees of Gammon, and have specific managers and relevant staff as required. defined responsibilities and authority within the The ExCo is responsible for decision-making on Company’s operations. The organisation chart showing sustainability issues that are addressed at weekly Safety, these responsibilities is presented below. The ExCo is Environmental and Assurance Committee meetings which responsible for the strategy, policies, risk management are led by the Director for Health & Safety, Sustainability, CHIEF EXECUTIVE EXECUTIVE COMMITTEE Electrical & Human Health & Commercial Civil Legal Finance Building Foundations Singapore Mechanical Resources Safety Sustainability, Systems & Audit Digital Risk Construction Procurement Lambeth Entasis Administration Engineering Management Services Integrated Corporate Digital G Data Into G Communication Technologies China and Gammon Macau Shenzhen Remarks Construction Services Entasis Digital G Plant and equipment, steel fabrication, External facades and Technology innovations concrete technology general construction Into G Lambeth Interior fit-out & contracting Engineering design services and financial performance of the business, and is directly Systems & Audit. At operations level, actions are mainly accountable to our shareholders Balfour Beatty and driven and supported by the Group Sustainability Jardine Matheson (the Shareholders). Manager, the Environment & Sustainability Team, the Project & Operations Environmental Working Group and The ExCo reports to the board of Gammon China Limited the Sustainability Action Group, as shown below. (the ‘Gammon Board’), which is the joint venture holding company set up by the Shareholders to hold the Gammon Guided by the vision, mission and values of The Gammon construction business, including the company. The Way and our business priorities, our sustainability members of the Exco also sit on the Gammon Board, strategy, Responsible Growth – 25 by 25, outlines together with the Shareholders’ representatives. In objectives, actions and targets for improvements under addition, the Shareholders are engaged in the Gammon four focus areas up to the year 2025 for which the China Limited’s Risk Management and Compliance ExCo has overall responsibility. The strategy is publicly 2 SUSTAINABILITY REPORT MANAGEMENT APPROACHES 2018-2019 available online and can be found here: Safety and Environment www.gammonconstruction.com/uploaded_files/files/ Action Committee en/Sustainability_Strategy.pdf (ExCo) ExCo is responsible for agreeing targets and reviewing performance every year. Day-to-day operational activities aimed at achieving the actions occur across Project & Operations Sustainability Action the business units, encouraged and supported by Environmental Working Group Group the Environment and Sustainability Team and other (Operations teams) (Support functions) supporting functions, as required. Our shareholder Balfour Beatty reviews our sustainability progress annually. A third-party assessment in industry associations and societies, we have taken a is undertaken to audit our greenhouse gas emissions leadership role not just for the promotion of Gammon’s before they are submitted to CDP (formerly the Carbon interests but for the betterment of the industry as a whole Disclosure Project). Through forums and active roles (see the Value Chain section). VALUES AND NORMS OF BEHAVIOUR GRI 102-16 GRI 102-44 Gammon has a set of core values that define our work ethic and guide our workforce in today’s rapidly changing and challenging world. The core values – Safety, Integrity and Excellence – have been incorporated into a philosophy called The Gammon Way, which also outlines Gammon’s Mission and Vision. Our Mission is ‘to build for a better quality of life and living environment in a safe and sustainable manner’ and our vision is ‘to be the contractor of choice in Hong Kong, China and Southeast Asia’. At Gammon, our ultimate goal is to deliver a high level of quality to our customers. This means not only the quality of our built products and service outcomes, but also in the way they are delivered: reliably, safely and responsibly. We believe we can best deliver the level of quality to which we aspire by concentrating on our three core values. of Conduct are clearly communicated to all staff at Our Code of Conduct1 lays out the following principles induction, as mentioned in the section on Training for our business operations to which all employees must below. The Group General Counsel and Legal Director is adhere: responsible for overseeing governance and the Code of Conduct. The Code is publicly available on our website in • to instill a high standard of integrity, ethics and both English and Traditional Chinese. environmental responsibility in all aspects of our business dealings and operations; Through the Gammon Way and by operating our business responsibly, we hope to deliver the desired • to abide by the legal and regulatory requirements in level of quality expected by our clients reliably, safely the countries where we operate; and responsibly. Indeed, to be the contractor of choice we must ensure our clients’ satisfaction, and improving • to observe the rights of our employees and the that level of satisfaction has been identified as a material communities in which we work; and issue by internal and external stakeholders. We trust the many efforts we are making as outlined in this and • to create the means to make the Code of Conduct an other sustainability reports, through engagement, integral part of daily practice. leadership, collaboration and innovation, demonstrate our determination and commitment to more than satisfy The Gammon Way, our core values and our Code our clients’ expectations. 1 See www.gammonconstruction.com/uploads/Code_of_Conduct.pdf SUSTAINABILITY REPORT MANAGEMENT APPROACHES 2018-2019 3 MANAGING RISK GRI 102-11 Our risk management approach covers all elements of • Employees soliciting or accepting any advantages our operations including tenders, projects, functions, from clients, consultants, contractors, subcontractors, and corporate level operations (e.g. through our Risk suppliers or any person in connection with Company Management and Compliance Committee, as mentioned business. above). The process forms an integral part of our business • Employees having a conflict of interest where their management system and is formalised and documented judgement is affected by a vested interest in our Risk and Opportunity Management procedure. In • Failure of the Company or employees to follow fair addition to business, health, and safety-related risks, competition or anti-trust laws (e.g. bid rigging, price we pay particular attention to environmental risks and fixing, market sharing, abuse of a strong market this is addressed in our Code of Conduct as follows: “We position or other anti-competitive arrangements). shall adopt a precautionary approach in our operations and conduct an environmental review for every new Conflict of interest undertaking to identify the significance of impacts Conflicts of interest are to be declared and form part associated with the activities under our control. A risk of our Code of Conduct and are an identified risk in the management process will also be applied whereby actions corruption risk assessment for review and management. will be taken to identify those potential threats of serious or irreversible environmental damage and to deal with Charitable donations and sponsorships them using best available technology taking into account Our Code of Conduct describes how we ensure that what is technically feasible and economically viable within charitable donations and sponsorships are not used our influence and customer requirements.” We also have as a disguise for bribery, as follows: “The Company plans and procedures in place for extreme weather events, ensures that charitable contributions and sponsorships business continuity planning and crisis management. are not used as a subterfuge for bribery. All charitable contributions and sponsorships shall be subject to Chief Executive approval (or in accordance with the Group GRI 103-2 GRI 103-3 Delegation and Limits of Authority) with clear expressions ANTI-CORRUPTION of
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