Sustainability Report 2013
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Sustainability Report 2013 New Dimensions in Sustainable Construction Group Turnover by Region Accident Incident Rate Greenhouse Gas Emissions Employment by Regions US$ millions per 1,000 workers tonnes CO2 equivalent monthly paid staff and daily paid workers Hong Kong & Macau Hong Kong & Macau Mainland China Mainland China Singapore Singapore 165 101,206 100,277 2005 monthly paid daily paid 166 11.3 128 89,726 Baseline 0 81,429 502 0.4 0 76,862 448 212 507 292 2013 374 423 6.9 Target 465 0.4 6.4 53,241 386 574 6 6 573 1,592 5.4 384 1 1, 481 1, 471 394 388 0 4,060 265 341 3,772 400 0 1, 003 0 0 815 3,072 2,625 0 2,517 1,936 1,939 1,802 2,052 1,406 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Group turnover is expected to The Accident Incident Rate (AIR) In 2013, the most significant The retention rate of monthly staff over the past three years remain strong in Hong Kong, and was reduced by 10% (our 2013 action taken to reduce greenhouse has improved and is in the top three of the industry. Over 80% we see growth in Singapore with target). In 2014, we will include gases was to start large-scale use of are permanent contract staff. Direct employment of daily paid several new projects secured. LTI (Lost Time Injures) together locally made Euro V B5 biodiesel workers is expected to continue increasing in Hong Kong as with AIR as our primary measures. in Hong Kong. (Diesel accounts for we invest more in key skills training. 59% of our emissions.) Scope of the Report Contents Gammon Construction Limited is a private company jointly owned Front cover 1 Chief Executive’s Statement by Jardine Matheson, an Asian-based conglomerate, and Balfour Imagine the ability to coordinate all the details of a complex roof structure or façade mullion before committing to moulds and fabricating mock-ups. Gammon is doing 2 Stakeholder Engagement Beatty, a leading global infrastructure business. The principal activities just that with the use of 3D printing along with our own i720° and Building Information Implementing Roadmap 2020 of Gammon are civil engineering, foundation works, building Modelling. Shown on the cover is a prototype for the Hong Kong International Airport 3 Insights from our construction, electrical and mechanical installation, manufacturing Midfield project. Management Team and supply of fabricated steel, manufacturing and selling concrete and rental of plant and machinery. This report covers the operations An online version of this sustainability 4 Zero Harm Sustainability Report 2013 New Dimensions in Sustainable Construction report is available on our website. of the company and its subsidiaries in Hong Kong & Macau, Gammon self-declares this report to 8 Prosperous Markets Mainland China and Singapore for the 2013 calendar year. a GRI Application Level of C+. 12 Environment 16 Strong Relationships Our Brands 20 Project Highlights 21 Assurance Statement 22 Key Performance Indicator For more information please visit Civil, foundations, building, E&M Public-Private Engineering design services www.gammonconstruction.com 27 GRI Content Index and construction services covering Partnership business plant and equipment, concrete technology and steel fabrication Chief Executive’s Statement The business environment remained strong However, change must happen across the industry. for Gammon during the year, with orders in To that end, two leadership forums on safety were Hong Kong and Macau increasing by 24% and held in 2013 with all the major players in the Hong in Singapore by 81%. In 2013 we increased our Kong construction industry. I was pleased with the investment in people by 15%, strengthened genuine momentum that was created and the our BIM capabilities and, with our greater actions agreed upon. focus on productivity, continued to build our I was also pleased with the awards Gammon in-house capabilities as we returned to more received during the year for outstanding self-performing work. performance in green procurement and One of the greatest challenges of managing our environmental leadership, as well as controlling increased workload is the chronic shortage of environmental emissions. Ultimately, though, skilled labour. In my view, the importation of labour we must link our environmental practices with under the Supplementary Labour Scheme is a profitability by winning more work, increasing our short-term solution only. The current practice in productivity and creating greater value for clients. Hong Kong of fast-tracking semi-skilled labour to Technologies such as 3D scanning and 3D printing perform skilled jobs is not working; instead, we are very promising for our vision of a sustainable Thomas Ho need long-term skills training programmes that future, because they provide more accuracy and Chief Executive benefit both the industry and society. detail earlier in the construction process, and Gammon Construction Limited Hiring our own labour offers another solution, and combined with Building Information Modelling March 2014 we now directly employ about 3,000 workers in can benefit planning, design, fabrication and Hong Kong. However, we need at least double assembly. With a 3D scanner, we can reduce the that number. time needed to survey a tunnel profile from one hour to just one or two minutes, with much greater Another concern I have is safety. At Gammon, accuracy and detail. Gammon is also using these we continue to be firmly focused on safety and tools to survey difficult-to-access areas, such as committed to Zero Harm. Although our Accident an operating railway. Incident Rate improved 10% in 2013, that is not enough. Bold commitments are needed, and in this I remain optimistic that we can overcome the report we discuss those commitments that address sustainability challenges we face, but only if the the top four fatal risks. Honest implementation and industry works together. By combining quality, visible leadership, without shortcuts, are key. productivity and safety, we can achieve a sustainable future that benefits us all. Derek Smyth, 1947–2013 We mourn the loss of Derek Smyth, who served as an Executive Director of Gammon until 2008 and was retained as a consultant until his unexpected death in October 2013. After his retirement, he continued to serve the industry by leading the drafting of the Hong Kong Construction Industry Vision 2020. He was also one of the initiators of Gammon’s sustainability programmes that prepared us for our future as a sustainable business. GAMMON Sustainability Report 2013 1 Stakeholder Engagement Implementing Roadmap 2020 Gammon engages stakeholders throughout the In 2013, Gammon moved beyond year to identify issues of material interest to our planning and into the implementation stakeholders as well as those issues that have of our Roadmap 2020. Progress was Procuring products, a direct impact on our business. made in all of the six strategic areas works and services Our focus in 2013 was on our clients, the supply we have identified. that are safer and chain, our staff and workforce. Clients provided more responsible. detailed feedback through review reports, such as The Roadmap is governed by the the Contractor Performance Rating (CPR) by the In 2013, we increased purchases Executive Directors who are responsible of sustainable materials to Works Bureau and Housing Authority Performance for setting metrics and carrying out Minimising our impact 36% and we engaged more Assessment Scoring System (PASS), as well as suppliers. 30% of suppliers were internal reviews on a half yearly basis. on the environment and our yearly client survey. These assessments allowed found compliant with our us to evaluate our performance and benchmark reducing energy usage. sustainability requirements. ourselves against our competitors. Through the We produced a Waste Management feedback we received, we were able to understand Handbook as a tool for Managers, our clients’ priorities and satisfaction levels. Quantity Surveyors and Planners to identify and reduce waste before With our suppliers and subcontractors, we hosted works begin; we also began a series four workshops in Hong Kong, one in Shenzhen Expanding Zero Harm of baseline audits to review our Adapting our skills and and one in Singapore. We also conducted to the whole Industry. practices on-site. semi-annual vendor appraisals and an annual growing expertise to meet stakeholder needs. supplier survey. During the year, we pushed for an honest implementation of We developed an inhouse façade With our workforce, we held ongoing dialogues our ‘bold commitments’ to safety service team and set up a modular through two Safety Stand Downs, a frontline safety and advocated the adoption of Ensuring construction E&M factory in Mainland China. committee, regular site management/subcontractor safer policies and practices by is a viable, long-term meetings and focus group meetings. the industry. industry valued The following are some of the key issues that by society. were raised: The Contractor Cooperative • innovation Training Scheme is underway • sustainable procurement Optimising design, and achieving results. The • safety management methods and materials challenge now is to scale and offering alternatives. up skills training so that it • waste management becomes an integral part • carbon footprint We challenged traditional of the industry. • development of our people construction practices by • training programmes designed to bring proposing alternative designs and construction methods. An example new blood into the industry is the Cableway and Pedestrian The materiality exercise also informs and updates Bridge with Lift Tower project at Sentosa in Singapore, for which our Roadmap 2020. we reduced the number of piers in order to minimise disruption to the surrounding environment. 2 Insights from our Management Team In Hong Kong, over 30,000 additional The key to operating a sustainable business depends construction workers will be needed to work on on integrating sustainability with profitable business new infrastructure projects in the years to come.