SUSTAINABILITY 102 About This Sustainability Statement 104 Stakeholder Engagement 110 Identifying Our Material Matters 114 Our Journey Towards Stronger Sustainability 116 Sustainability Performance 122 Targets and Achievements 123 Strengthening Economic Integrity 126 Managing Our Environmental Impacts 140 Ensuring Safe and Quality Construction 152 Human Capital Development 164 Building Community Resilience PROTECTING OUR LEGACY OF SUSTAINABILITY It is our responsibility to hold our sustainable practices to the highest standards possible. The wellness of everyone and everything around us will be the greatest footprint we leave behind. Sunway Construction Annual Report 2018 Sunway Construction Annual Report 2018 ABOUT THIS SUSTAINABILITY STATEMENT ABOUT THIS REPORT this sustainability statement are specified with indicator MEMBERSHIPS AND ASSOCIATIONS [102-1, 102-5, 102-52, 102-50] numbers in brackets under the corresponding subtopics. The [102-13] definition for each indicator number are disclosed at the end We adopted a robust approach in strengthening our economic, of the statement. The narrative and supporting data in this We are pleased to note that our status as a constituent of the FTSE4Good Index was reaffirmed in 2018 and we were categorised social and environmental sustainability performance as it statement also reflects our activities in relation to meeting under the 82 percentile rank. Our scores within the three pillars of Environment, Social and Governance reflects the effectiveness is important in securing the confidence and meeting the ISO 9001, OHSAS 18001 and ISO 14001 standards where of our policies and procedures to manage our impact on these three aspects of our business. expectations of our key stakeholder groups. This annual applicable. The sustainability reporting requirements of statement demonstrates the best practices, efforts and Bursa Malaysia have also been highlighted in this statement, Some of the associations that we are members of are listed initiatives that Sunway Construction Group Berhad (“SunCon” which are pertinent in demonstrating our commitment to below: or “the Company”) has undertaken or implemented to sustainability and stakeholder inclusivity. promote local economic development, protect the environment ESG RANKING NAME OF THE ASSOCIATION SUNCON MEMBERSHIP and support our surrounding communities from 1 January Master Builders Association SunCon has been a member SCOPE OF REPORTING Environmental Social Governance Malaysia (MBAM) since 1988 2018 to 31 December 2018. [102-2, 102-4, 102-5, 102-6, 102-7] Score Score Score Construction Industry CIDB Grade 7 Contractor The scope of reporting extends to the activities and projects of Pollution and Labour Risk Development REPORTING FRAMEWORK Resources Standards Management [102-54] Sunway Construction Group Berhad and its active subsidiaries; Board (CIDB) Sunway Construction Sdn. Bhd., Sunway Geotechnics (M) Water Use Health and Corporate Singapore Precast SunCon is affiliated with In this report, we have presented the disclosures in line Sdn. Bhd., Sunway Engineering Sdn. Bhd., Sunway Precast Safety Governance Association this association for our with the Global Reporting Initiative (GRI) Standards – Core Industries Sdn. Bhd. and Sunway Concrete Products (S) Pte. Option. Relevant GRI standards which are disclosed in Human Rights operations in Singapore Ltd. Climate Change and Community Anti-Corruption Biodiversity The projects that have been discussed in SunCon’s Sustainability Statement in 2018 are as listed below: Project Name Description Location Parcel F Government Office Buildings at Putrajaya Putrajaya (Klang Valley) The diagram below illustrates the governance structure and Emerald Residence (ER) Landed Residence Johor Bahru SUSTAINABILITY highlights the main responsibilities of the constituents. As shown Mass Rapid Transit Line 2 Elevated rail from Persiaran Dagang to Klang Valley GOVERNANCE in the structure, the SWC is helmed by the General Manager – Package V201 Sungai Buloh [102-18] of Operations, who is in turn supported by the Sustainability Coordinator. Key personnel and departments are involved in Mass Rapid Transit Line 2 Elevated rail from Sungai Besi to Serdang Raya Klang Valley Governance and accountability are salient in setting the direction the process of identifying risks in the context of sustainability, – Package V205 (North) of the Company towards becoming a leader in sustainability setting targets and developing a robust sustainability strategy. Light Rail Transit Line 3 (LRT3) Elevated rail from Sri Andalas to Kawasan 17 Klang Valley business practices, continually improving key areas relating to We endeavour to successfully incorporate sustainability into – Package GS07-08 sustainability, and demonstrating actions in line with our values. our business strategies and gain competitive advantage as we Sunway GEOLake Residences Serviced Residence at Bandar Sunway Klang Valley explore new business opportunities and enter new markets whilst effectively managing our non-financial risks. International School of Kuala Lumpur Education Facilities Klang Valley (ISKL) ersees te proress o te Copanys sustainaility stratey BOARD OF DIRECTORS Big Box Village Retail Park Johor Bahru Gives final approval for all policies and measures presented by the SSC KLCC P1 Basement Carparks Klang Valley KLCC P2 Basement Carparks Klang Valley Sustainability Steering Committee (SSC) Finalises the material issues identified by the SWC Monitors and implements the sustainability strategy Coprises o SunCons senior anaeent Sunway Medical Centre 4 (SMC 4) Medical Centre Klang Valley ersees SCs role in ipleentin sustainaility initiaties Sunway Velocity Medical Centre Medical Centre Klang Valley HEAD Oversees and reviews the sustainability reporting process (SVMC) Identifies the aspects of sustainability that are being OF SWC addressed throughout the organisation Sunway Serene Serviced Residence at Kelana Jaya Klang Valley Sustainability Working Committee (SWC) Identifies potential material sustainability matters and determines Gas District Cooling P1 District Cooling Plant Putrajaya (Klang Valley) Comprises of departments that are responsible for runnin ey aspects o SunCons operations its importance to the business and the stakeholder Integrated Construction and Highly automated precast factory Singapore Identifies and proposes relevant sustainability policies and strategies Prefabrication Hub (ICPH) that uses state-of-the-art technology Bukit Bintang City Centre Piling Works Klang Valley Identifies the relevant departments and Human Total Quality Finance SUSTAINABILITY Resources Management coordinates data collection from respective COORDINATOR departments for sustainability reporting Environmental, Contracts and Operations Safety and Procurement and Projects Health 102 103 Sunway Construction Annual Report 2018 Sunway Construction Annual Report 2018 STAKEHOLDER ENGAGEMENT [102-40, 102-43, 102-44] Our stakeholders have a vested interest in SunCon’s engagement covers different practices that need to be Stakeholder Expectations Engagement Frequency of Addressing Their Expectations strategies and development plans, and their involvement employed and integrated in order to build strong and Group Method Engagement is key in achieving our sustainability goals and targets. At meaningful stakeholder relations. the heart of our success is our value creation process, which Authorities • Compliance Inspections As per the • Mandatory plant and machinery draws on various inputs and through our business activities, The concerns and expectations of stakeholder groups are and with guidelines operational inspections to ensure all machineries converts them to outputs that create positive value for our constantly evolving and monitoring them is an ongoing Regulators and regulations requirements are in good working conditions stakeholders. process. The table from pages 104 to 109 captures the key Engagement sessions On going • Drug test and health talks were stakeholder groups involved, their expectations, methods of conducted at Parcel F by Agensi Anti Stakeholder engagement defines the broader, more inclusive engagement and the manner by which we have addressed Training, seminar and On going Dadah Kebangsaan (AADK). Machinery and continuous process between us and our stakeholders, their expectations in 2018. demonstrations operators were tested for drugs and encompassing a range of activities and approaches that results were negative spans the entire life of a project. The spectrum of stakeholder Report submissions Monthly • The MOH conducted inspections at our project sites to ensure all larvae Site visits and audits Spot checks / breeding grounds are eradicated On going • All SunCon project sites participated in Audits by regulators Monthly Communication Information Negotiation the Communcation for Behaviour Consultation Participation and Impact (COMBI) programme, an Strategies Disclosures Partnerships Engagement with Monthly/ initiative by MOH to combat dengue at Department of Annually construction sites Occupational Safety and Health (DOSH), • Site visits and audits by DOSH, DOE and Department of CIDB to ensure our business operations Environment (DOE), are in compliance with regulatory The stakeholders that have been covered in discussing SunCon’s performance in 2018 are as listed below: Ministry of Health requirements Stakeholder Expectations Engagement Frequency of Addressing Their Expectations (MOH) and BOMBA • Spot-checks by Immigration