Hongkong United Dockyards Limited Environmental, Health and Safety Report 2013

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HUD Group - Environmental, Health & Safety Report 2013

Content

Content Page

Foreword 3

About The Report 4

Company profile 5-6

Governance Structure & Stakeholder Engagement 7-8

Our Commitment 9-10

Health & Safety Performance 11-13

Our People 14-15

Environmental Performance 16-17

Looking Forward 18

Appendix I - Key Statistics 19

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HUD Group - Environmental, Health & Safety Report 2013

Foreword

During 2013 with the restructuring of HUD, we have faced many challenges and have seen many

changes, and I am pleased to say that the positive changes introduced have provided a number of new

opportunities for us to develop into a sustainable business servicing Kong. Among those

changes, occupational safety & health as well as environmental protection have been enhanced in

commitment and implementation by all employees. The change in culture has not only focused at

productivity but also on the ownership of all employees in their work safety and their responsibility to

have a better care to the environment.

David Murphy Chief Executive Officer

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HUD Group - Environmental, Health & Safety Report 2013

About the Report

This annual report encompasses the Environmental, Health and Safety (EHS) performance of the HUD Group. With reference to the Global

Reporting Initiative‟s Sustainability Reporting Guidelines, this report gives an overview of the Group‟s local business activities, EHS policy and performances during 2013.

It is also intended to give business partners, staff, suppliers, our stakeholders and the general public a better understanding of the Group‟s strategies on its EHS management. Further information on HUD Group economic performance could be referred to the integrated report of

Swire Pacific Limited and the annual report of Hutchison Whampoa Limited.

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HUD Group - Environmental, Health & Safety Report 2013

Company Profile

Hongkong United Dockyards Limited (HUD) was officially formed in 1973, from the amalgamation of Hongkong & Whampoa Dock Company and

Taikoo Dockyard & Engineering Company, which had a history of service over 140 years in . The “small boat” fleets of the two yards

were combined under the umbrella of the Hongkong Salvage & Towage Company Limited in the same year. In a corporate restructuring in 2002,

when Hongkong Salvage & Towage became a division of HUD, HUD was renamed as HUD Group. The company is a leading provider of ship repair,

marine waste and harbour towage services in Hong Kong.

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HUD Group - Environmental, Health & Safety Report 2013

Company Profile

Engineering Division Salvage & Towage Division Our Engineering Division provides round-the-clock ship repair service with a Our tug fleet is stationed at Tsuen Wan and consists of 15 vessels totalling modern floating dock having a lifting capacity of 40,000 tonnes that can hold 60,800BHP with an average age of 7 years. The fleet provides regular towing service vessels of up to 300m x 41.50m. The floating dock, “United”, is located at within Hong Kong waters as well as emergency support and ocean tows in the Asia HUD headquarter on Island. It is supported by well-equipped Pacific Region, operating twenty four hours a day and seven days a week. We also workshops including steel workshop, machine shop, electrical workshop and all operate 6 container vessels, under contracts to SITA and Waste Management, other departments, as well as experienced project engineers and craftsmen. on behalf of the Hong Kong Special Administration Region (HKSAR) Government, We are the contractor for a number of engineering works involving both the providing maritime transport of refuse to and from the strategic landfill at Nim Wan public and private sectors. It specializes in plant installation, steelwork, in Tuen Mun. electrical engineering, building services, manufacturing and mechanical engineering.

In 2013, the Engineering Division started undertaking more land based engineering projects. Upgrade of an Ammonia Stripping Plant in West New Territories (WENT) Landfill utilized our capability in multi-disciplinary engineering works, e.g. electrical, mechanical, steel and pipe works etc. Assembly of a Tunnel Boring Machine demonstrated our unique advantage in heavy engineering facilities including seawall cranes with heavy lifting gear, spacious steel workshop, auto welding and flame cutting facilities, sufficient numbers of aerial platforms etc.

Tug Boat “Taikoo” & Floating Dock “United”

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HUD Group - Environmental, Health & Safety Report 2013

Governance Structure

Environmental, health and safety within the HUD Group forms an integral part of the Quality, Health, Safety and

Environmental (QHSE) Division of the company. The QHSE Chief Executive Officer Division reports directly to the Chief Executive Officer (CEO), (CEO) who reports directly to the Boards of both Swire Pacific and

Hutchison Whampoa for final business strategy decision.

EHS Steering Committee

Group Safety Committee

Quality, Health, Safety & Engineering Salvage & Towage Environmental (QHSE) Division Division Division

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HUD Group - Environmental, Health & Safety Report 2013

Stakeholder Engagement

HUD takes a proactive approach to engaging with stakeholders. We actively participate with non-government organization (NGOs) on emission and climate change projects. We also discuss with suppliers on their own health, safety and environmental policies as well as their sustainability practice. Besides, we work closely with Government as well as Professional & Advisory Committees.

Regular internal meetings with employees are held to ensure we actively exchange views on safety, health and environmental issues.

Through these channels, we understand the expectation and comments of our stakeholders and strive to incorporate into our business strategy.

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HUD Group - Environmental, Health & Safety Report 2013

Our Commitment

In providing a sound working environment for our staff and workers, HUD is committed to the principle that business objectives should never be allowed to compromise safety. We also take the approach to fully and Roles of the Group Safety Committee: openly report our status on health, safety and environmental issues to our stakeholders. We are 1. Establish arrangement for securing occupational committed to continually improving our performance in all aspects, and have set ourselves high standards health and safety to do more than regulatory requirement. 2. Review accidents and recommend measures to prevent recurrence Our EHS Steering Committee, chaired by the Chief Executive Officer, is responsible for overlooking our EHS 3. Monitor the adequacy and effectiveness of safety performance and reviewing our EHS Policy regularly. Committee members meet biannually to monitor the training as well as communication within

Group‟s performance in EHS and compliance with EHS policy. It coordinates overall Group policy workplace regarding environmental, health and safety issues, by monitoring the effectiveness of the Safety 4. Overview the implementation of health and safety Management System, identifying potential areas for improvement, establishing and reviewing EHS regulations objectives, targets and the overall progress. The Group Safety Committee also acts as a platform for

HUD employees and contractors to communicate with Under the EHS Steering Committee, members of the Group Safety Committee meet in a bimonthly meeting management on occupational health and safety issues. chaired by the Director of Salvage & Towage Division to discuss and coordinate the Group policy on work safety.

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HUD Group - Environmental, Health & Safety Report 2013

Our Commitment

The Group policies and operating procedures are embedded in our code of conduct, which is given to all our staff and contractors. Committed to the protection of our people and the environment, our EHS policy was updated in June 2013. It summarizes aspects including utilizing resources in a sustainable way, minimizing environmental impacts and protecting the health and safety of our workforce.

We also participated in shareholder‟s environmental and safety working groups, for example, the Environmental Best Practice Working Group as well as the Health and Safety Committee.

In order to better manage risks that could affect our business, the QHSE Division together with senior management have developed a business continuity plan incorporating various scenarios, likely outcomes and contingencies to ensure we are prepared for any emergency.

Occupational Safety & Health Policy of HUD Group

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HUD Group - Environmental, Health & Safety Report 2013

Health & Safety Performance

Our lost time injury rate (LTIR) has increased to 2.94, during the overhaul of our floating dock “United” which had a significant reduction on man-hours in Engineering Division. The increase in number of lost time injury in Salvage & Towage Division also contributed to the rise of the overall lost time injury rate in HUD.

A Work Injury Rehabilitation Programme had previously been implemented in Engineering Division. This has proved beneficial to the injured workers and also the company. Our successful experience was shared in work rehabilitation seminar organized by the Chinese University of Hong Kong and also in the Swire Sustainable Development Forum 2013. In view of the increasing trend of lost days in Salvage & Towage Division, the rehabilitation programme was introduced to the whole HUD Group in late 2013.

Figure 1 - Total Number of Accidents Figure 2 - Total Lost Days and Lost Time Injury Rate (LTIR)

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HUD Group - Environmental, Health & Safety Report 2013

Health & Safety Performance

OHS Promotion Day 2013

Safety Awareness Programme Annual Safety Quiz and Annual Safety Promotion Day were held to enhance employees‟ safety awareness. “Safe Use of Chemicals” was the theme of the Safety Promotion Day in 2013. Registered chiropractors were also invited to perform the seminar on health of backbone. Stretching exercise of proper postures was conducted under guidance of professionals in the seminar.

Training for Safety at Work Game Booth

The Technician Trainee Rotation Scheme started in mid 2013. Technical trainees were arranged with job rotation in QHSE Division for 3 months. The aim of the scheme was to equip the technical trainees from individual departments with the necessary knowledge and skill in occupational safety and health and develop them into the safety facilitators in their departments. Through the rotation, we built up a group with safety focus, influencing their fellows when they return to their own departments.

Safety refresher training sessions were arranged for individual trades relevant to their needs. Such an arrangement will be sustained once every 2 years. Seminar on Health of Backbone

Safety Culture Developing safety culture is one of an essential element for enforcing safety management at workplace. To promote an atmosphere of mutual trust and open dialogue, workers‟ representatives have been invited to the EHS Steering Committee Meeting, starting from 2013. This provided another forum for getting views from frontline employees in planning and executing EHS measures and policies in their daily work.

Stretching Exercise Demonstration 12

HUD Group - Environmental, Health & Safety Report 2013

Health & Safety Performance

Strengthen Department Safety Responsibility Job Hazard Analysis is one of the concerns in our QHSE Development Plan which guides individual departments to take their ownership on assessing hazards for work activities and providing relevant training to competent persons. Tutorship on risk assessment was provided by QHSE Division, equipping competent persons from individual departments with the necessary skill on risk assessment.

Emergency Rescue Practice - Use of Tripod Stand

Emergency Preparedness

In view of the intensive overhaul of floating dock “United” in 2013, the in-house rescue team conducted emergency exercises internally as well as jointly with Fire Services Department and Marine Police.

Our fire fighting tug „Tai O‟ as back up

in emergency exercise

Fire Services Department 13

HUD Group - Environmental, Health & Safety Report 2013

Our People

Our workforce comprises both permanent and contracted employees. All contractors are given a copy of our Safety, Environmental and Employment Instructions while all new recruits are induced with our EHS rules. By the end of year 2013, our workforce comprises a total of 443 from both local and international backgrounds. HUD strikes to maintain a fair labour practice with competitive wages and benefits and to create a safe and healthy workplace to our employees.

Figure 3 - Staff by Employment Type Figure 4 - Staff by Employment Contract

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HUD Group - Environmental, Health & Safety Report 2013

Our People

Communication

Work Liaison Committee with representatives elected by departments meet quarterly to establish a direct two-way communication channel between employees and senior management and to develop a pleasant and desirable workplace. To make transparent our changes in business environment and future direction of the company, special town hall meetings were held in mid 2013. Further to the town hall meetings, focus groups have been arranged with meetings for obtaining wider views from employees. Good communication among employees is essential for us to share the same vision and achieve company goals altogether. The door for feedback from employees is open all the time.

Working Environment

To continuously improve facilities for our employees, we are going to incorporate a centralized changing/ shower zone into our current canteen building and change it into a facilities block. Entrance for workforce will be relocated close to this facilities block so that employees can change their work clothes at a convenient location before and after work. .

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HUD Group - Environmental, Health & Safety Report 2013

Environmental Performance

HUD strives to improve our performance on environmental protection in aspects related to air, water and waste management. In 2013, our group carbon emissions decreased by 4.6% as compared to previous year mainly due to concentration of work on the overhaul of floating dock “United”. The business activities on engineering side were less frequent which also led to a decrease in indirect energy consumption by 22.7% in comparison with figures in year 2012. Furthermore, combined emergency drill is going to be held in the coming year by utilizing our own manpower and resources in Salvage & Towage on marine side and Engineering

Division on land side. In the first phase, chemical and oil spillage incidents will be conducted.

Marine gasoil is a major way of energy consumption within HUD Group. Use of shore power is an alternative way to reduce use of marine gasoil for our vessels in handling containers for refuse transfer to landfill. Around 15% net carbon emissions had been reduced yearly by use of shore power since 2009. Feasibility on extending the use of shore power in different work sites is being studied.

HUD seeks to minimize negative environmental impact from our daily operations and work activities. There was no spill reported relating to our operations in both Engineering Division and Salvage & Towage Division in 2013. A variety of measures have been taken to strengthen our capability on spill control. Frontline staff members have been trained in oil pollution control procedures. Spill kits have been stocked in workshops with oil or chemical handling Figure 5 – Distribution of Emission Sources (2013) operation and also on board every vessel for tackling any spillage incident.

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HUD Group - Environmental, Health & Safety Report 2013

Eco Tour 2013

Environmental Performance

Energy Efficiency Programme

6 container vessels and 4 seagoing tugs have been implemented with the Ship Energy Efficiency Management Plan (SEEMP). Employees feedback on SEEMP and suggestion on improving energy efficiency are actively encouraged through available communication channels. Roselle tea making

Fuel Monitoring System is installed on board a tug which aims at better monitoring and to raise the Ship Masters’ awareness on fuel consumption during operation. The effectiveness of the Ship Energy Efficiency Management Plan and the Fuel Monitoring System will be closely monitored and further studied on continuous improvement in fuel consumption in the future.

Green Activities

Eco Tour in visiting Eco Garden in Kap Lung Ancient Trail was organized on 17th November 2013. The Interpretation by professional eco tour guide

professional eco tour guide let participants learn more about the forest ecology and the importance of nature conservation through gaining firsthand experience of butterfly watching. HUD also continuously supports the worldwide yearly event - Earth Hour.

Chilasa clytia in Eco Garden

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HUD Group - Environmental, Health & Safety Report 2013

Looking Forward - Target for 2014

Environmental Health & Safety

• Extend the use of shore power to vessel fleet • Maintain ZERO fatality accident • Initiate establishment of ISO 14001:2004 to • Enhance safety awareness programme workshops in Engineering Division • Setting up combined emergency response

team

• Procurement of heavy-duty dehumidifier to provide better work environment on board vessels, especially in summer

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HUD Group - Environmental, Health & Safety Report 2013

Parameter Unit 2013 2012 2011 Remarks Resources Consumed Electricity kWh 6,385,608 8,291,553 8,904,067 1 Consumption includes equipment on floating dock and Marine Gas Oil (MGO) litres 10,178,564 10,208,613 10,069,885 vehicles Industrial diesel1 litres 86,225 251,617 422,173 2 Water used in hull washing process Unlead Petrol litres 10,292 11,752 14,420 LPG kg 8,090 15,741 16,855 Potable water2 m3 52,307 66,836 66,555 Chemicals (liquid) litres 3,375 6,400 6,950 Metal kg 575,540 532,857 478,107 Paper kg 2,340 2,904 3,809 Printing cartridges - Refilled no. 10 22 44 - New no. 73 95 135 Waste Recycled Waste lube oil litres 321,800 560,898 330,283 Scrap metal tonnes 1,123 318 442 Waste paper kg 2,634 3,044 5,116 Printing cartridges no. 118 122 164 Wastewater discharged to sea m3 33,663 48,697 47,697 Treated water from shore-based activities Legal Compliance New warning letters received no. 0 0 0 New prosecution actions no. 0 0 0 Oil spill incidents no. 0 0 0 Health & Safety No. of employees no. 443 664 723 Days recorded as of December 31 Total hours worked hrs 1,971,757 2,588,724 2,075,768 Accidents no. 29 28 35 Accident form completed and leave taken Total lost days to accidents hrs. 953 855 748 Days recorded as of December 31 LTIR no. 2.94 2.16 3.37 No. of accidents/ working hrs x 200,000 Fatalities no. 0 0 1 GHG EMISSIONS

Direct CO2e emissions tonnes 30,690 31,281 31,415 Indirect CO2e emissions tonnes 3,961 5,211 4,932

Total CO2e emissions tonnes 34,651 36,492 36,347 19

HUD Group - Environmental, Health & Safety Report 2013

Contact Us

We welcome and value your comment and view on our work

in environmental, health & safety and this report.

Contact information -

Address: HUD Administration Building, TYTL 108RP, Sai Tso Wan Road, Tsing Yi Island, New Territories, Hong Kong

Web: http://www.hud.com.hk

Tel no.: 2431 2828

July 2014

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