SUSTAINABILITY REPORT 2014 Strivewas to to Develop Create Sarawak’Spositive, Lasting Abundant Impact Energy — Socially,Resources
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To achieve sustainable growth Life’sand prosperity Better When for Sarawak We Are Connected TOWARDS SUSTAINABLE It became clear that the most compelling At CIMB, caring for customers and strategy for the State economic survival ENERGY communities is embedded in our culture. We SUSTAINABILITY REPORT 2014 strivewas to to develop create Sarawak’spositive, lasting abundant impact energy — socially,resources. economically, Estimated andat 20,000 environmentally megawatts, — throughSarawak’s our hydropoweroperations, businesspotential practices, alone, The Penan kids at their Murum resettlement housing (2014) philanthropy,could drive andeconomic community growth engagement. and GDP We seek out diverse perspectives to inform our (Gross Domestic Product) to Sarawak. business strategy, work to strengthen financial knowledge and opportunities for our customers andThe communities,Sarawak Corridorand take actionof Renewable to care for andEnergy improve or SCORE the environment. concept was developed as a proactive initiative, to reflect the While we are not the largest company in the MalaysiaGovernment’s or even determination the largest bank,to ensure we are a consistentlylong term future ranked for as our one economy of the country’s and future top corporategenerations. philanthropists by The Chronicle of Philanthropy. We donate, on average, more than RM250 million each year to nonprofits. ThisUnlike is fossilnot about fuels, charity. hydropower It’s about is cleanintelligent and andtruly thoughtful‘renewable’. investing The hydropower in the future projects of the communitiesthat Sarawak where Energy our builds team memberstoday should and customers live and work. last for a hundred years or more, providing Ournot onlyteam an members abundant understand supply of affordablethat small effortsand reliable can makeelectricity, a huge but alsodifference the capacity in our communities.for flood mitigationWe care anddeeply opportunities about our in communities,aquaculture andand wetourism. volunteer our time, serve on nonprofit boards, and contribute to local charitable organizations. United Way Worldwide has consistently recognized CIMB for having one of the nation’s top United Way campaigns. Chairman - Datuk Amar Abdul Hamed bin Sepawi Sarawak Energy Berhad Chairman - Nazir Razak KEY SUSTAINABILITY HIGHLIGHTS TOTAL REVENUE RM2,826.3 mil TOTAL ELECTRICITY SALES 13,440 GWh* SUSTAINABLE AND RENEWABLE ENERGY HYDROPOWER 8,957 GWh ELECTRICITY GENERATED 2,744 MW INSTALLED CAPACITY GRID CARBON EMISSION INTENSITY 0.335* CO2-eq kg/kWh TOTAL NUMBER OF SARAWAK ENERGY’S CUSTOMERS CITY COUNCILS/MUNICIPALITY ENERGY INTENSIVE (PUBLIC LIGHTINGS) CUSTOMERS (SCORE) 8,321 8 DOMESTIC/ COMMERCIAL/ INDUSTRIAL 606,673 * These total electricity sales and grid carbon emission intensity data have been independently verified. Read the Independent Assurance Report on pages 52 and 53 TOWARDS SUSTAINABLE ENERGY SUSTAINABILITY REPORT 2014 The Penan kids at their Murum resettlement housing (2014) Sarawak Energy CO2 Grid Emission Intensity 2010 - 2014 0.724 0.698 0.541 0.430 0.335* 2010 2011 2012 2013 2014 tCO2e/MWh * This grid carbon emission intensity data has been independently verified. Read the Independent Assurance Report on pages 52 and 53 OUR COMMITMENT TO THE ENVIRONMENT For our children’s future. Caring for the environment is a key component of our business strategy, and an integral part of our vision to achieve sustainable growth for Sarawak by meeting the region’s need for reliable, renewable energy. ENVIRONMENT HIGHLIGHTS TOTAL CO2 REDUCTIONS 2,008 (‘000 ton CO2 ) Only for Bintulu Gas Combined Cycle Power Plant TOTAL VOLUME OF CARBON EMISSION CARBON EMISSION INTENSITY (‘000 ton CO2 ) (kg/kWh) 4,852 0.335* * This grid carbon emission intensity data has been independently verified. Read the Independent Assurance Report on pages 52 and 53 TOTAL ELECTRIFICATION COVERAGE (URBAN & RURAL) 90.5% TOTAL NUMBER OF STAFF 4,168 OUR SOCIAL COMMITMENT Giving back to society. Sarawak Energy is responsible towards the communities which are directly impacted by our development projects. SOCIAL HIGHLIGHTS LITERACY PROGRAMME 476 PARTICIPANTS 341 ARE NOW LITERATE TOTAL HOURS OF TRAINING 2,891.5* HOURS MANAGEMENT 42,920* HOURS EXECUTIVE 110,017* HOURS NON-EXECUTIVE * These total hours of training data have been independently verified. Read the Independent Assurance Report on pages 52 and 53 System Average Interruption Duration Index (SAIDI) (MINS/YR) 189* System Average Interruption Frequency Index (SAIFI) (INTERRUPTION/YR) 2.0 * This System Average Interruption Duration Index (SAIDI) data has been independently verified. Read the Independent Assurance Report on pages 52 and 53 HOW WE ENSURE ECONOMIC SUSTAINABILITY Sustainable business practices. Sarawak Energy adopts the Hydropower Sustainability Assessment Protocol (HSAP) in the development of its hydropower projects to ensure the projects are developed in a sustainable manner. ECONOMIC HIGHLIGHTS 0.3% Hydro 18.4% Diesel Gas Generation Coal MIX 19.5% 61.8% TOTAL GENERATION CAPACITY 3,933 MW ECONOMIC VALUE RETAINED RM710.5 mil 14 / OUR MESSAGE TO STAKEHOLDERS / TABLE OF CONTENTS 20 / ENVIRONMENT / 7 About this Report 8 What We’re About 14 Our Message to Stakeholders 16 How We Engage Our Stakeholders 17 How We’re Governed 18 Board of Directors & Management Team 20 Our Commitment to the Environment 32 Our Social Commitment 46 How We Ensure Economic Sustainability 51 Awards and Recognition 52 Independent Third Party Assurance Statement 54 GRI Content Index 32 / SOCIAL / 46 / ECONOMIC / SARAWAK ENERGY SUSTAINABILITY REPORT 2014 G4-18 G4-19 ABOUT THIS REPORT G4-20 G4-21 SCOPE OF THE REPORT • Indirect Economic Impacts • Materials This is Sarawak Energy’s first Sustainability Report covering the role that we play as HIGHER • Indigenous Rights • Compliance (EN) the key driver for Sarawak’s economy, our business activities, and our impacts on the • Customer Privacy • Employment social, economic and environment. The report describes our approach to sustainability • Occupational Health & Safety • Procurement Practices and the actions we have taken during 2014. Data in this report relates to the 2014 • Compliance (PR) • Training & Education calendar year unless otherwise stated. It covers our entire operations in Sarawak, • Local Communities including our subsidiaries. We intend to publish the sustainability report annually. • Access** • Water This report has been written in accordance with the Global Reporting Initiative (GRI) G4 • Biodiversity reporting guidelines, by Core option. • Emission • System Efficiency** STAKEHOLDER INCLUSIVENESS AND MATERIALITY • Availability & Reliability** • Grievance Mechanisms for • Research & Development** In developing this report, we considered inputs from our stakeholders, gathered through Impacts on Society • Economic Performance a wide range of interactions during the course of the reporting period. The selection • Customer Health & Safety • Disaster/ Emergency of content for this report was based on a materiality analysis to identify and prioritise • Effluent & Waste Planning Response** topics that will significantly impact Sarawak Energy’s business and stakeholders. A comprehensive scan of all potential material topics, including those specifically MEDIUM affecting our sector were derived based on a wide range of sources including the UN Millennium Development Goals (which has since been expanded and renamed as the UN Sustainability Development Goals), the Global Reporting Initiative as well as an Importance to External Stakeholders • Product & Service Labelling internal stakeholder survey which was conducted to obtain an understanding of topics • Supplier Assessment for • Labour/ material to them. Labour Practices Management Relations • Demand Side Management** • Labour Practice These topics were validated and prioritised based on inputs from senior management, Grievance Mechanisms a stakeholder engagement workshop, and analysed on their relevance and impact on • Human Rights LEGEND Sarawak Energy’s business and stakeholders. This exercise yielded a list of 34 topics. Grievance Mechanisms Economic • Market Presence Environmental These 34 topics were approved by the Executive Management Committee in the • Energy Social context of sustainability drivers, stakeholder interests and business strategy. More than • Non-discrimination ** Sector specific aspects 9 top priority sustainability topics were obtained, which forms part of our sustainability • Public Policy Higher priority area strategy and contribute to our understanding of stakeholder concerns. • Environment Grievance Medium priority area Mechanisms Lower priority area LOWER LOWER MEDIUM HIGHER FEEDBACK This report also serves to encourage dialogue between ourselves Importance to Internal Stakeholders and our stakeholders, especially our customers, suppliers and Materiality Matrix employees. We welcome your feedback, queries and suggestions on any aspect of our sustainability impacts and performance. Please contact us at 082-388 388 or via email at [email protected] ECONOMIC ENVIRONMENT SOCIAL • Procurement • Water • Local Community • Operational Efficiencies • Biodiversity Welfare Research and Emissions Employee Training & KEY • • • Development Development PRIORITIES • Economic Performance 7 SARAWAK ENERGY SUSTAINABILITY REPORT 2014 G4-4 G4-12 WHAT WE’RE ABOUT Sarawak Energy is an integrated energy utility which is wholly-owned by the Sarawak State Government. We are involved in the generation, transmission and distribution