REPORT 2020 SUSTAINABILITY - Far East Orchard Limited
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SUSTAINABILITY
REPORT
202 0
Registration No. 196700511H
1 Tanglin Road #05-01
Orchard Rendezvous Hotel, Singapore
Singapore 247905
T (65) 6833 6688 F (65) 6738 8085
www.fareastorchard.com.sg
About This Report
Far East Orchard Limited’s (“Far East Orchard” or This report is prepared in accordance with the Global
the “Company”, and together with its subsidiaries, the Reporting Initiative (“GRI”) Standards 2016 with reference
C O N T E N T “Group”) Sustainability Report (“SR”) for the financial year made to the Singapore Exchange Securities Trading Limited
ended 31 December 2020 (“FY2020”) aims to provide a Listing Rules 711A and 711B. The relevant disclosures can
holistic overview of the Group’s performance in the past be found in the GRI Content Index included at the end of
0 2 Abo ut T his Rep ort year, focused on the areas of Environmental, Social and this report. 1
Governance (“ESG”). With ramped up initiatives, the
The scope of this SR includes the properties under the
Group aims to continue incorporating sustainability into
0 3 Far East Orchar d’s L egacy Group’s portfolio for both hospitality and property business
its operations.
segments, as outlined in the list shown below.
0 5 Board Stat emen t
Hospitality Property
Singapore Singapore
0 6 Far e ast orchar d 20 20 S naps hot
Hotels Development Properties
• AMOY • The Elizabeth Hotel • Woods Square
• Oasia Hotel Downtown • The Outpost Hotel Sentosa
08 B ui l di ng S ustainabil it y To get her
• Oasia Hotel Novena • Quincy Hotel
• Village Hotel Albert Court United Kingdom
• Orchard Rendezvous
0 8 I n fluenci ng o ur sup p ly chai n
Hotel, Singapore • Village Hotel Bugis Development Property
• Rendezvous Hotel • Village Hotel Changi • Westminister Fire Station
0 9 Our s u stai nab i li t y g over nance Singapore • Village Hotel Katong
• The Barracks Hotel Sentosa Student Accommodation (“PBSA”)
• Village Hotel Sentosa
1 0 C omm i t m en t to t he UN SD G s • Harbour Court, Bristol
Serviced Residences • Hollingbury House, Brighton
1 1 K e y Stakeholder Eng ag em en t • Far East Plaza Residences • Village Residence • Portland Green Student Village, Newcastle upon Tyne
• Oasia Residence Clarke Quay - Bryson Court
1 2 Mat er iali t y Assessm en t • Orchard Parksuites • Village Residence Hougang - Marshall Court
• Orchard Scotts Residences • Village Residence - Newton Court
• Regency House Roberson Quay - Rosedale Court
13 T he Year in Review • Village Residence West Coast - Turner Court
• St Lawrence House, Bristol
Malaysia • The Glassworks, Liverpool
13 Organisation Vitalit y AND RESILIENCE
Hotels • The Foundry, Leeds
1 7 Em p loyee Passion • Oasia Suites Kuala Lumpur • The Elements, Sheffield
Table 1: In-scope Properties for FY2020
2 1 h e alth an d saf et y aT wor k
In FY2020, the scope of the SR has been expanded of the Group’s environmental conservation efforts. An electronic
2 5 C ommun i t y Eng ag em en t
to include a hotel owned by the Group in Malaysia, version may be viewed at or downloaded from Far East
Oasia Suites Kuala Lumpur, and three additional PBSA Orchard’s corporate website (www.fareastorchard.com.sg).
2 5 Custom er Devot ion
properties acquired and added to the Group’s portfolio
CONTACT US
3 2 E nvi ron m en tal St ewar dshi p in November 2019. Following the Group’s increasing
To continuously enhance Far East Orchard’s sustainability
maturity in sustainability efforts, more overseas
3 8 G R I C on t en t I n dex practices and reporting quality in accordance with the
operations may be included in the reporting scope of
GRI Reporting Principles (accuracy, balance, clarity,
future reports. For the reporting period of FY2020, the
comparability, reliability, timeliness), the Group welcomes
Group has not sought external independent assurance.
questions and/or suggestions pertaining to this sustainability
No physical printed copies of this report were produced as part report, which may be sent to ir@fareastorchard.com.sg.
1
Two of the ESG factors identified as material to Far East Orchard – Service Quality and Corporate Governance, are not part of the GRI topic-specific standards and are excluded from
the GRI Content Index.
Sustainability Report 2020 | 2
Far East
Orchard’s Legacy
Established since 1967, Far East Orchard is a real estate company with a lodging
platform that aims to achieve sustainable and recurring income through a diversified
and balanced portfolio.
Redefining itself through a strategic transformation of the business in 2012, Far East
Orchard expanded into the complementary businesses of hospitality management
and healthcare real estate. In 2015, it diversified its real estate portfolio to include
PBSA properties in the UK. The Group’s hospitality arm — Far East Hospitality — now
owns more than 10 hospitality assets and manages over 100 properties with more than
16,500 rooms in Australia, Denmark, Germany, Hungary, Japan, Malaysia, New Zealand
and Singapore. Far East Orchard has also developed the FEOR25 Strategy, endorsed
The Group has
by the Board, to help chart the strategic direction from now until 2025.
identified several
The Clan Hotel Singapore
SUSTAINABLE GROWTH areas of its
operations -
With a wide range of operations in property management and development, the Group The Group has implemented guidelines regarding workplace and customer health and
environmental In Singapore,
recognises its impact on the environment and communities, in the industries where it safety, and prioritised compliance with nation-wide requirements on social distancing the Group’s
stewardship,
operates. The Group has identified several areas of its operations - environmental talent and adjusted operations accordingly with effective Business Continuity Plans in place. hospitality
stewardship, talent management and development, and corporate governance, as key management and properties were
In Singapore, the Group’s hospitality properties were SG Clean certified while in the SG Clean certified
focus areas to grow its sustainable practices. development,
and corporate UK, the Group has worked with its PBSA facilities operator to develop a set of suitable while in the UK,
This is enhanced through active stakeholder engagement with internal and external governance, operating guidelines to manage the COVID-19 situation at its properties which are also the Group has
partners – from customers, business partners, as well as fellow co-workers – such that as key focus accredited by the British Safety Council. In March 2020, taking into consideration the worked with its
issues can be considered from every angle. areas to grow measures adopted by the UK universities and circumstances of the student tenants at PBSA facilities
its sustainable operator to
the Group’s PBSA properties, also allowed the early cancellation of student residents’
In this report, the United Nations Sustainable Development Goals (UN SDGs) will also practices. develop a set of
tenancies for the semester in view of the unfolding pandemic situation.
be referenced wherever applicable. The Group is committed to aligning itself with the suitable operating
UN SDGs to the best of its abilities to ensure it can strive for sustainability in a holistic Within daily operations, Safe Management Measures were implemented. Meetings and guidelines to
manner. Further information on the UN SDGs can be found on page 10, Commitment engagement activities were held online wherever possible and trainings were enhanced
manage the
to the UN SDGs.
COVID-19 situation
with an increased focus on hygiene and safety. Alternative arrangements awere
at its properties
introduced to facilitate and replace regular learning programmes and engagement
COVID-19 RESPONSE
activities with stakeholders for continuous learning and training. Within the hospitality
In response to the changes in business operations due to the COVID-19 pandemic,
industry, many external awards were postponed as it would be difficult for businesses
the Group has monitored the situation and ensured that measures were put in place
to meet regular criteria. The Group’s annual Customer Engagement Index (CEI) survey
to keep employees and customers safe. Aside from the inevitable impact on business
was also deferred due to the pandemic restrictions.
activities across the industry, the Group has also reviewed the resilience of its business
while facing COVID-19. The Group is working towards building greater resilience and Looking forward, Far East Orchard is committed to continue all efforts in maintaining
ensuring greater business sustainability in the face of future crises, to better meet the standards of health and safety on properties for its employees, contractors, customers
expectations of its stakeholders in the long run. and the communities.
3 | Sustainability Report 2020 Sustainability Report 2020 | 4Board Statement FAR EAST ORCHARD 2020 Snapshot
In FY2020, Far East Orchard leveraged on business continuity plans to minimise
disruptions to its operations from COVID-19. The Safe Management Measures
DEAR STAKEHOLDERS, were implemented to provide assurance to the guests staying in our hotels. Far
East Orchard aims to reassure stakeholders that the Group continues to perform
and strive in adverse conditions. Below is a snapshot of the Group’s financial
In 2020, Far East Orchard, along with the rest of the world, has had to focus its efforts on finding
performance in 2020.
the viable balance between maintaining our business operations to ensure continuity, while best
managing our resources to face the implications caused by an unprecedented pandemic. Through
COVID-19, we were able to strengthen measures to ensure business sustainability remains at the
$1.5 million 3.0 cents
top of our key agendas. We have since taken steps to be better prepared to face future crises, and $112.2 million
Profit Final dividend
to be better equipped to serve the needs of the community, through providing accommodation Revenue attributable to per share
for guests under isolation, as well as for foreign workers in Singapore. Across our properties, we equity holders (PROPOSED)
made sure to abide by regional guidelines and measures to keep all personnel safe.
In order to keep our business at the forefront of changing expectations and developments in
the economy, more so in such extraordinary times, the Group has refreshed our approach to
STRIVING FOR GOOD CORPORATE GOVERANCE
sustainability, incorporating ESG topics and considerations in more facets of our operations. 41
We believe that ethical and transparent corporate governance goes a long way in out of 57 7
Most notably, Far East Orchard will be highlighting our efforts towards the United Nations maintaining our quality business and operations. SGX-listed
Sustainable Development Goals (UN SDGs) within our sustainability considerations in our c ompan i es
For the Singapore Governance and Transparency Index 2020, Far East Orchard
operations. The Group has identified five SDGs where we can contribute to most, and which
ranked 41 out of 577 SGX-listed companies (top 8%) for corporate governance
we have the greatest impact on. Through this, we hope to be able to maintain the trust that our
practices in Singapore. 19 th
stakeholders have continued to place in us. IN SINGAP ORE
Far Eas t Orchard is als o ranked 19t h in Sing ap ore for t he As ean Corporate ACGS AWARDS
Sustainability issues and initiatives are continuously monitored at the Board level to ensure Governance Scorecard (ACGS) Awards 2020. 2020
that it is considered in the Group’s strategy, policies and measures where applicable. We
also conduct ongoing assessments of sustainability-related issues, risks and opportunities
relevant to our business together with our Audit & Risk Committee and Management Risk &
Sustainability Committee.
EMPLOYEE PASSION
91.7
In 2020, due to the COVID-19 pandemic, training hours were reduced to comply average
In this report, we present our ESG performance for 2020 through key ESG material topics that are
with safe distancing measures and increased telecommuting. Physical training TRAINING HOURS
identified to be relevant to our stakeholders. We will continue to work together with management sessions were replaced with online sessions to further ensure safe distancing. PER EMPLOYEE
to ensure that the monitoring of respective ESG efforts and initiatives is carried out regularly.
We continue embarking on our sustainability journey together with our stakeholders, seeking ways
to improve the sustainability efforts in our business operations, while also staying committed to
maintaining a good holistic performance to achieve a more sustainable business in the long run.
The Board of Directors
16 March 2021
5 | Sustainability Report 2020 Sustainability Report 2020 | 6Building Sustainability
Together
ENSURING HEALTH AND
SAFETY AT WORK
0 0 11.0
For the past three years, Far Incidents CASES OF incidents S u stai nab i l i t y
East Orchard has recorded zero Of Workplace OCCUPATIONAL of workplace
DISEASE INJURIES Vision
incidents of workplace fatalities Fatalities
and occupational disease at its
hospitality properties.
As the Group continues to face a changing
climate and economy, it maintains its efforts to
0.8 6.1 An enduring and trusted real incorporate sustainability within its operations.
ACCIDENT ACCIDENT estate company, with a lodging
FREQUENCY RATE SEVERITY RATE The Group ensures that the needs and concerns of
platform that aims to achieve
(AFR) (ASR) key stakeholders are taken into consideration in
a sustainable and recurring
per million man-hours per million man-hours developing and executing its business strategies.
worked worked income through a diversified and
In view of environmental stewardship, the Group
balanced portfolio.
also aligns itself with operational processes that are
sustainable, responsible, and resource efficient.
INFLUENCING OUR SUPPLY CHAIN
The Group continues to strive for sustainable business
Sustainabilit y practices across its supply chain, from subsidiaries
ACHIEVING RESOURCE
Mission to suppliers. The Group prioritises socially and
EFFICIENCY
environmentally responsible business partners in line
Our hospitality properties are 53,589,523 kWh 172 kWh/sq m
with its commitment to sustainability throughout all
managed and monitored to ENERGY CONSUMPTION ENERGY INTENSIT Y facets of operations. Within projects and properties,
ensure efficiency in energy and
Far East Orchard also incorporates eco-conscious
water consumption, in line with
Delivering long-term value by construction processes and encourages contractors
our belief that eco-efficiency
upholding a high standard of to source for raw materials from sustainable sources.
minimises our impact on the
corporate governance and ethical Across its supply chain, the Group also aims to
environment and brings us
behaviour; nurturing a culture educate stakeholders and involve them within its
cost savings. 731,321 m3 2.34 m3/sq m
of sustainability and adopting sustainability efforts.
WATER CONSUMPTION WAT E R I N T E N S I T Y
responsible business practices
which consider environmental and
social impacts.
7 | Sustainability Report 2020 Sustainability Report 2020 | 8OUR SUSTAINABILITY GOVERNANCE COMMITMENT TO THE UN SDGS
To ensure that measures and directions to strengthen structure to identify, drive and execute sustainability The 17 Sustainable Development Goals developed Far East Orchard recognises the importance of
sustainability within the business are continuously effective, initiatives across the Group and its business operations. by the United Nations (UN SDGs), adopted by all UN incorporating initiatives and measures within its business
Far East Orchard has in place a sustainability governance Member States in 2015, aim to enhance global progress operations such that they can be more aligned towards
meeting the Goals.
towards the 2030 Agenda for Sustainable Development.
The Goals are set as end targets for a 15-year plan, for For this report of FY2020, the Group has identified five
Management the planet, as well as the people living on it. key UN SDGs:
The Board Audit & Risk Risk &
Business
of Directors Commit tee Sustainability
Divisions
(“ARC”) Commit tee UN SDGs Description
(“MRSC”)
Goal 4
Quality Education
1
Ensure inclusive and equitable quality education and promote
• Collectively responsible • Maintains oversight of all • Chaired by the Group • Implement sustainability- lifelong learning opportunities for all
for the long-term sustainability initiatives Chief Executive Officer, related initiatives cascaded
success of the Group and includes from the MRSC, ensuring Goal 5
• Assists the Board in
representatives from a clear and consistent Gender equality
• Provides strategic fulfilling its responsibilities 2
various business divisions approach across the Group Achieve gender equality and empower all women and girls
direction and specifically for the Group’s
and key functions
considers sustainability - financial and sustainability • Provide regular updates
issues as part of reporting • Supports the ARC, to the MRSC Goal 8
its strategic formulation ensuring effective Decent Work and Economic Growth
- management of material 3
Promote sustained, inclusive and sustainable economic growth, full and
integration into the
• Determine material ESG financial, operational, productive employment and decent work for all
Group’s business
factors and ensure that compliance, information
operations and
they are monitored and technology and workplace
Goal 9
corporate objectives
managed safety and health risks Industry, innovation and infrastructure
4
to safeguard stakeholders’ • Drives the overall Build resilient infrastructure, promote inclusive and sustainable
interests and the Group’s industrialization and foster innovation
sustainability agenda
assets and allocates resources
to support and achieve Goal 16
Peace, justice and strong institutions
underlying initiatives 5
Promote peaceful and inclusive societies for sustainable development, provide access to
• Reviews all policies and justice for all and build effective, accountable and inclusive institutions at all levels
procedures relating to
ESG issues on an ongoing Figure 3: Descriptions of SDGs addressed within the scope of this report
basis
• Assists in risk management
The Goals are integrated within how the Group those daily operations as well as society at large. Details
and sustainability efforts
approaches its daily operations, taking into of the individual Goals and targets will be elaborated
consideration its impact on people who are part of upon in the respective sections.
Figure 2: Sustainability Governance Structure and Roles and Responsibilities of different stakeholders
9 | Sustainability Report 2020 Sustainability Report 2020 | 10KEY STAKEHOLDER ENGAGEMENT MATERIALITY ASSESSMENT
Meaningful two-way communication with stakeholders Building on stakeholder engagement, the Group considers Key material ESG topics were identified as relevant to Far Orchard’s management and Board.
of the business helps the Group to better anticipate and the interests of key stakeholders in developing its strategy, East Orchard and its stakeholders. Annually, a materiality
For the reporting year of 2020, following the GRI principles,
manage challenges in a sustainable long-term business. striving to balance their interests with its business refreshment exercise, including a peer benchmarking
11 topics have been identified within the 9 key ESG topics,
Stakeholders with a significant influence on and interest in objectives. Bespoke modes of engagement are used for analysis and consultations with internal stakeholders, is
unchanged from the previous reporting period, and will be
the Group’s business are engaged through both formal and different stakeholders that matter to the business, as conducted to ensure the continued relevance of these ESG
elaborated in the following sections.
informal channels of communication. shown in the table below. topics. These ESG topics were then endorsed by Far East
Key Stakeholders Modes of Engagement
• Half-yearly financial reporting
• Announcements/ news releases on corporate actions and developments
• Customer Health and Safety • Corporate Governance
• Annual General Meeting
• Occupational Health • Economic Performance
Shareholders • Corporate website
High
and Safety
• Analyst meetings
• Service Quality
• Roadshows
• Queries to Investor Relations team
• Induction and orientation programmes for new Board members
• Ongoing communication
Influence on stakeholders’ assessments and decisions
The Board • Board and Board committee meetings
• Site visits
• Strategy meeting
• Orientation programme
• Ongoing staff communication • Anti-competitive Behaviour • Customer Privacy
Medium
• Training programmes • Environmental Compliance
Employees • Team bonding and recreational activities • Training and Education
• Annual colleague engagement survey
• Performance and career development reviews
• Townhall meeting
• Customer satisfaction surveys
• Guest comment cards
Customers
• Priority guest programme
• Websites
• Physical and virtual meetings
Business Partners • On-site visits
• Industry gatherings
Low
Figure 4: Key stakeholder engagement initiatives
In the current situation of the pandemic, Far East Orchard stakeholder groups are continued through contactless
Low Medium High
adheres to the Safe Management Measures to the best of or virtual means. In accordance with guidelines issued by
its abilities and aims to prevent any risk of unnecessary the regulator, the Group held its annual general meeting Significance of economic, environmental, social and governance impacts to the business
contact between its stakeholders. for shareholders through a virtual platform, with a live
Figure 5: 2020 Materiality Matrix
audio-visual webcast in June 2020. As the pandemic
As such, engagement activities with relevant stakeholders is still yet to be under control, the Group will continue
were conducted online as much as possible such that utilising alternative communication channels to keep its
exposure is minimised. Communication with individual stakeholders in the loop about the business.
11 | Sustainability Report 2020 Sustainability Report 2020 | 12The Year in Review
Organisation Vitalit y AND RESILIENCE
DOING GOOD BUSINESS MAINTAINING THE HIGHEST LEVEL OF ETHICS
Far East Orchard has and continues to routinely review and To ensure the continued growth of its business in a
INDUSTRY, INNOVATION AND INFRASTRUCTURE implement rigorous compliance and training programmes principled and ethical manner, Far East Orchard will
GRI-202-1
Far East Orchard is committed to contributing to the local Direct economic to ensure that its business practices are and continue to be continue to adhere strictly to all applicable laws.
economy, works with changemakers to bring creative solutions to value generated fully compliant with all applicable laws.
Some of the measures which have been and continue to be
and distributed
address issues and improve the community and society around it.
adopted include:
Compliance Checks Staff Readiness
The Group recorded revenue of $112.2 million in FY2020, The Group is committed to delivering sustainable growth
a decrease of 28.1% compared to the prior year, and $1.5 for its stakeholders over the long term, through its lodging • Putting in place internal processes to monitor • A Competition Law Compliance Manual is part of the
million profit attributable to equity holders, compared to platform strategy that focuses on hospitality and PBSA continuous compliance and reinforce adherence with Employee Handbook which is given to all new hires and
$26.0 million in FY2019. business segments to generate recurring income. the Competition Act made available to all existing employees
• Evaluating reported incidents of non-compliance with • Incorporating a session on compliance with competition
Details of Far East Orchard’s FY2020 financial performance In 2020, in view of the COVID-19 pandemic, Far East
the Competition Act, guidelines by the Competition law as part of the orientation programme for new
are listed in the following sections in its 2020 Annual Orchard has ensured business continuity to minimise
and Consumer Commission of Singapore (“CCCS”) and employees
Report: disruptions to its operations by triggering the business
investigations by relevant authorities against the Group
• Chairman’s Statement continuity plans. The Group has implemented safety • Arranging annual legal briefings conducted by external
for anti-competitive behaviour, if any
measures in its properties and strived for a balance competition lawyers on competition law for employees
• CEO’s Message
between business growth and keeping all personnel safe • Reviewing legal contracts and agreements to
• 5-Year Financial Highlights • Conducting in-house quarterly briefings on competition
in these unprecedented times. ascertain the absence of anti-competitive behaviour
law for sales and marketing employees
• Financial Report
Figure 6: Measures adopted to ensure that business operations are conducted ethically
In FY2020, the Company and its subsidiaries are in compliance with the Competition Act. No infringement decisions
CONDUCTING A FAIR BUSINESS FOR ALL were made by the CCCS.
GRI-206-1
PEACE, JUSTICE AND STRONG INSTITUTIONS
Legal actions for FY2021 Target Key Initiatives to be Continued/ Implemented
Far East Orchard is committed to contributing to the local economy, anti-competitive
working with changemakers to bring creative solutions to address behaviour, anti- • Outline the expectations of employees in relation to compliance with competition laws during
trust, and monopoly orientation programmes
issues and improve the community and society around it.
practices • Provide appropriate training and refresher courses for all employees that deal directly with any
No violations of of Far East Orchard’s competitors
the Competition
• Encourage reporting of any suspected anti-competitive conduct to relevant parties (e.g. risk
It is the Group’s policy to conduct business fairly and integrity, including the non-tolerance of anti-competitive Act and CCCS
management and compliance personnel) and/or external regulatory agencies
ethically in the markets it operates in. Without exception behaviour. It takes legal compliance very seriously and guidelines
• Build a culture that encourages employees to immediately inform the Group’s Head of Legal
to this policy, Far East Orchard consistently strives does not condone or sanction any anti-competitive
when they become aware of any behaviour or work practice that appears to be inconsistent with
towards the highest standards of professional values and conduct by employees. the Group’s Competition Compliance Manual
13 | Sustainability Report 2020 Sustainability Report 2020 | 14CORPORATE GOVERNANCE, ACCOUNTABILITY AND TRANSPARENCY
The Group has well-established corporate governance companies in areas such as shareholder rights, anti-
practices, and is firmly committed to upholding high corruption, transparency and Board management. The
Peace, Justice And Strong Institutions
GRI-102-18 standards of corporate governance. Far East Orchard was Group has made significant improvement since its placement
Far East Orchard has an internal governance structure to
Governance of 68th back in 2017.
ensure that policies and management are reliable and ranked among the top 8% of companies listed on the SGX
structure
effective, benefiting customers and employees alike. according to the Singapore Governance and Transparency
SGX has also included Far East Orchard in its Fast Track
Index (“SGTI”) 2020. The SGTI is the leading index for
Programme for 2020 and 2021. The SGX Fast Track
assessing corporate governance practices of Singapore-
programme rewards companies with high corporate
Far East Orchard is committed to good corporate stakeholders’ interests and maximising long-term
listed companies and is published annually. governance standards and a good compliance track record.
governance, accountability and transparency in all its shareholder value.
It incentivises companies through prioritised clearance for
In 2020, Far East Orchard was ranked 19th in Singapore
endeavours. The Group observes a high standard of The Group has established corporate policies and internal selected corporate-action submissions to SGX RegCo.
for the ASEAN Corporate Governance Scorecard (ACGS)
corporate conduct, integral to ensuring the sustainability controls to ensure compliance with the relevant laws and
Awards, organised by the ASEAN Capital Markets Forum The Group’s corporate governance practices are detailed
of its business and performance as well as safeguarding regulations as presented below.
(ACMF), a high-level grouping of capital market regulators in its 2020 Annual Report with specific reference to
from all 10 ASEAN jurisdictions. The scorecard measures the principles and provisions of the Code of Corporate
• Corporate Governance • Delegation of the standards of corporate governance for publicly listed Governance 2018.
Policies Manual Authority Matrix
• Employee Handbook • Periodic internal and
In FY2020, there were neither any lapses with SGX rule requirements resulting in SGX reprimands nor any
Gu i d i n g • Code of Conduct Internal external audits
confirmed incidents of bribery or corruption involving employees.
Policies • Enterprise Risk Controls • Quarterly circular to
Management Manual Board and employees on
• Securities Trading Policy Securities Trading Policy FY2021 Targets Key Initiatives to be Continued/ Implemented
• Whistle-blowing Policy
• Investor Relations Policy • Participate in seminars, dialogues, round-table discussions and consultations with SGX, to
understand and track any new listing rules and keep abreast of any penalties issued against other
• Procurement Policy SGX-listed companies
• Board Diversity policy To ensure no
lapses with SGX • Maintain and track new listing rules or updates
Figure 7: Corporate Policies and Internal Controls rule requirements • Maintain and centralise all communication and correspondence with SGX (and any other relevant
resulting in SGX regulatory authorities), to monitor and track all inquiries, feedback, and responses and to maintain
reprimands a consistent response in each correspondence
RECOGNISING GOOD CORPORATE GOVERNANCE PRACTICES
• Continue the practice of mandatory Annual Declaration on Conflict of Interest to declare potential
interests so they may be appropriately managed
ASEAN CORPORATE
GOVERNANCE SCORECARD
AWARDS • Mandatory Annual Declaration on Conflict of Interest to declare potential interests so they may be
To ensure no appropriately managed
Far East Orchard ranked top 19th
confirmed incidents
in Singapore for the ACGS Awards • Annual confirmation by employees to agree to comply with the guidelines and policies contained in
of bribery or
the Code of Conduct. These include conduct on “Giving/ Offering Gifts and Other Inducements”
2020, evaluated by the ASEAN corruption involving
and “Receiving Gifts and Lavish Entertainment”
Capital Markets Forum for corporate employees
• Continual update of the Code of Conduct which is made available to all employees via the intranet
governance standards.
SGX FAST TRACK PROGRAMME RANKED AMONG TOP 8% OF
2020 & 2021 SGX-LISTED FIRMS
Launched by SGX, the programme In SGTI 2020, Far East Orchard
recognises companies with good ranked 41 out of 577 companies for
corporate governance. corporate governance practices in
Singapore.
15 | Sustainability Report 2020 Sustainability Report 2020 | 16Employee passion
EMPOWERING OUR PEOPLE ENABLING CONSTANT LEARNING AND UPGRADING
Average training hours per year per employee
Quality education GRI-404-1
Far East Orchard ensures that all employees receive fair and suitable Average hours of
opportunities within their careers for self-improvement through training per year 95.2 hours 100.0 hours 91 . 7 hours
per employee 2018 2019 2020
training, performance feedback and educational initiatives.
Figure 10: Training hours per employee for the past 3 years
GRI-404-3
Gender equality The commitment of Far East Orchard to the development can continuously develop a talent pool ready for succession
Percentage of
Far East Orchard takes extra note to uphold gender equality in employees receiving of its employees is underscored by its belief that building and deployment.
hiring and employment, striving to provide a workplace where regular performance the capabilities of its employees allows it to retain its
and career Far East Orchard has cultivated a learning culture where
equal opportunities are given regardless of gender. competitive edge and enhance its brand profile. In
development reviews employees feel valued, motivated and confident. In turn,
enabling employees to be strong in their functional core this enhances overall performance and productivity, while
skills and building their leadership capabilities, the Group reducing employee turnover.
The Group is committed to attracting, developing and networking opportunities, and provide professional and
retaining a diverse and inclusive workforce to ensure leadership development opportunities for its employees.
continued growth in a competitive global marketplace.
As of 31 December 2020, the Group employs 1,066 staff Functional CEO
Leadership Managers Connect
To that end, the Human Resources team continues to foster members , including the 109 or 10% who are covered by
2
and
Development and
cross-functional connections, support mentoring and collective bargaining agreements. Technical Skills
leadership
Skills talks
603
In line with SkillsFuture All employees are Launched in 2018, the Conducted from time-
and Workforce trained in leadership Group’s Managers to-time, these talks allow
133 463 Singapore, the Group’s skills beginning with self- Development employees to interact
core training modules leadership. This enables Programme focuses with management and
and programmes centres the Group to drive and on the development other industry leaders,
102
4% 2% around customer service sustain success with of its future leaders by as part of their learning
14%
and enhancement of an aligned approach equipping them with & development.
15%
employees’ technical towards financial the knowledge, skills
skills. performance and ability to lead.
and an “Acts of Grace”
470 361 18% 37%
Nationality 51% Age Group work culture for
both employees and
27% customers.
Figure 11: Holistic employee development approach
31%
Female Male The Group’s designated Learning and People Development on-the-job transfer of learning. Training programmes are
(“L&PD”) team monitors and evaluates the development monitored, reviewed and modified quarterly to ensure
Permanent Contract Singaporean Malaysian Chinese ≤ 30 Years 31 to 30 Years
of its employees. This is done through the Learning relevance to the business needs, changing environment as
Filipino Others 41 to 50 Years ≥ 50 Years
Management System, which records the impact of training well as employee profiles.
programmes on employees and reviews training investment
Figure 9: Workforce statistics as at 31 December 2020 The Group’s employees received a total of 99,100 hours
in terms of time and cost on a monthly basis.
of training in 2020, an average of 91.7 training hours per
The effectiveness of training programmes is also measured employee. A breakdown by gender is shown in Figure 12.
2
Includes employees supervised by the Group’s hospitality management arm but employed by the owner of the in-scope properties and excludes employees hired by the Group’s
joint venture - TFE Hotels.
through post-training evaluation and observation of any
17 | Sustainability Report 2020 Sustainability Report 2020 | 18Average training hours per employee PERFORMANCE MANAGEMENT AND
TALENT DEVELOPMENT
91.7 hours 92.2 hours 91.3 hours To ensure that employees of Far East Orchard are able to performance management process where managers and
Per Per male Per female review and monitor their own individual progress over the team members take stock of the achievement of agreed
employee employee employee
year, the Group has in place a continuous performance goals and targets set for the year.
management process to formally evaluate employees’
Figure 12: Average training hours per employee in FY2020 The discipline of activities in the performance management
achievements against the agreed goals set at the beginning
process underpins our efforts to build a high-performance
of the year.
culture where the work and contributions of every staff
In FY2020, each employee underwent an average of 91.7 hours of training, exceeding its FY2020 target of member are clearly defined, measured and objectively
At regular intervals throughout the year, ongoing
an average of 80 hours per employee. The Group will continue to work towards equipping its employees evaluated.
with the necessary knowledge and skills, as well as elevate their competencies. performance feedback conversations between managers
and team members ensures timely review of progress, The eAppraisal system enables and facilitates the process,
adjustments to support needed and the realignment and provides visibility and structure to monitor, review and
In 2020, training activities have been impacted by the COVID-19 pandemic due to
the implementation of safe distancing guidelines at workplaces. of efforts and resources where necessary. The year-end document goals, activities, achievements and feedback.
performance appraisal is the final stage in the overall Triggers via emails and HR team will be through the stages.
During the period of the Circuit Breaker implemented by the Singapore government,
Safe Management Measures and restrictions were in place in the Group’s properties
2020 Performance Management
COVID-19 and operations. As such, many of the regular learning programmes, as well as guest
Measures or staff engagement activities were cancelled. Instead, training sessions were offered
By 30 Apr 2020 Throughout the Year Throughout the Year
virtually where possible. .
Capture 2020 BU / Division Managers & Direct Reports Managers & Direct Reports
SMART Heads to sign to have regular 1-to-1 should discuss and
& Outcome off on their performance review and identify key stakeholders
In view of the pandemic, the Group will continue to focus areas: Productivity (Job Redesign), Data and Digital Skills, Based goals in respective feedback conversations. the staff will be working
its training programmes on topics such as hygiene, safety and Service Experience (Incorporating Safety Measures). the 2020 teams’ Goals, Use the eAppraisal form to with in the year to
and mental wellness in FY2021. In preparation for business This will be accompanied with a training and education KPIs & targets document key be feedback providers
eGoals Forum
recovery, the Group is looking into 3 key development target of 80 hours per annum for FY2021. discussion points
New
FY2021 Target Key Initiatives to be Continued/ Implemented
Mandated Quarterly Mandated for Promotion cases
80 hours of training • Conduct training for employees via varied modes of learning Mandated Quarterly 1-to-1 performance review Documented feedback in
per employee per
• Roll out compulsory e-learning courses and feedback conversations for SMs & above the eAppraisal system
annum
and their direct reports. Complete and document: will be required to support
promotion cases to SMs
1. Q1 * conversations by 31 May
and above
2. Q2 * conversations by 31 Aug
3. Q3 conversations by 31 Oct New
Figure 13: Performance
management process New
*
Completion of quarterly 1-to-1 performance review and feedback conversation will follow the Apr, Jul, Oct cycle from 2021
In FY2020, 100% of full-time employees received regular performance and career development reviews. 3
FY2021 Target Key Initiatives to be Continued/ Implemented
100% of full-time employees to • Inculcate a culture of continuous performance management at all
receive regular performance levels, encouraging effective ongoing conversations and feedback
and career development reviews 3 between managers and their direct reports throughout the year
3
Excluding employees on prolonged leave and new hires that have been with the Group for less than three months.
19 | Sustainability Report 2020 Sustainability Report 2020 | 20Health and safety at work
Key initiatives undertaken by the Group include:
Quality Education GRI-403-2
Key Initiatives
Far East Orchard ensures that all employees receive appropriate Types of injury
and rates of injury,
and adequate training and education on topics related to workplace • Adopt safe working practices that are in line with national and international
occupational
health and safety, ensuring that their wellbeing is prioritised when diseases, lost days, safety regulations
they are at work. and absenteeism, • Provide employees with safe and well-maintained tools and equipment
and number of work-
• Provide training to all employees to enhance their competence and awareness
related fatalities
on WSH requirements
Policies • Annual pledge to acknowledge and comply with the Group’s Safety Commitment,
outlined in the Employee Handbook
• Review of WSH Policy and objectives at least once a year
WORKPLACE SAFETY AND HEALTH
• Requirement for all engaged main contractors to be Occupational Health and Safety
Assessment Series (“OHSAS”) 18001 certified or an equivalent of a well-recognised
340.0 1.7 1.7 68.1 standard for safety management system
• Daily morning brief on WSH for hospitality employees
• Fortnightly circulation of reminders about WSH to all employees to increase awareness
and impart safe work habits
• Conduct quarterly cluster WSH meetings
• Conduct annual WSH risk assessments to proactively identify hazardous activities and
workspaces, and put mitigation measures in place
0.4 19.1 Reinforcements • Conduct emergency drills for potentially hazardous situations, including, but not
50.0
limited to power failures, medical emergencies, fires and lift entrapments, at least
5.0 twice a year
10.0
• Conduct table-top exercise with local authorities to prepare for lone wolf
terrorist attacks
Workplace Injuries AFR ASR
• Annual review of the Group’s risk register with new incidents to be updated and shared
across properties
2018 2019 2020
Figure 14: Workplace safety trends for the past 3 years
• Maintain recognised WSH management system
• Appointment of a WSH representative with at least a bizSAFELevel 2 certificate,
Far East Orchard prioritises workplace safety and health The Group establishes procedures for dealing with to be responsible for handling WSH matters and implementation of WSH policies
(“WSH”) and strives to provide its employees and other workplace hazards, and strictly enforces health and safety Appointed at each property
stakeholders with a safe and conducive work environment. measures where any non-compliance is detected. WSH Personnel • Formation of Company Emergency Response Teams who are equipped with safety
equipment to perform emergency responses
• Engagement of certified Fire Safety Managers to evaluate the fire safety measures
deployed within the in-scope hospitality properties
Figure 15: Occupational health and safety key initiatives
21 | Sustainability Report 2020 Sustainability Report 2020 | 22RESPONDING TO THE COVID-19 PANDEMIC
Keeping in line with the Group’s commitment in In Singapore, the Group’s hospitality properties were SG
FY2021 Targets Key Initiatives to be Continued/ Implemented
maintaining a high level of health and safety for its Clean certified through its effective measures in place.
employees and customers, the management has in place The SG Clean quality mark recognises organisations Zero cases • Conduct regular safety trainings
strict measures in the workplace ever since the COVID-19 from various sectors that commit to upholding good of workplace
• Collaborate with local authorities to organise emergency drills for potentially
outbreak. standards of sanitation and hygiene practices that are fatalities
hazardous situations
assessed through a thorough official assessment.
The Group’s PBSA properties’ operator in the UK, Abodus • Quarterly WSH Committee meetings, where representatives from each property share
Improvement to about common incidences, causes and preventive measures
Student Living, has received the COVID-19 assurance These standards that the Group has met are a strong
AFR and ASR • Organise two roadshows at every hospitality property to promote WSH
statement from the British Safety Council in November endorsement of the safety standards in the Group’s
2020, as a testament to its standards of health and safety. operations, with not many operators having received the
Reduce the number
Through a remote-based review, the assurance was stringent accreditation. Far East Orchard will continue to
of workplace
issued upon the confirmation that appropriate protocols, ensure that its properties are kept as safe as possible for injuries by 25%
organisational policies, procedures and arrangements its employees and customers.
were in place, complying with current UK government
and sector-specific guidelines relating to the control of
COVID-19.
KEEPING THE WORKPLACE SAFE IN
THE PANDEMIC
To ensure minimal impacts to the Group’s operations, status and travel declarations in case of any emergencies.
MAINTAINING A SAFE WORKING Business Continuity Plans were put into place alongside
ENVIRONMENT Where possible, internal and external meetings were
safe workplace measures. Far East Orchard prioritises
conducted virtually. For physical meetings that cannot
the health and safety of its employees, more so during
In its pursuit of high WSH standards, the Group also all employees to increase awareness and prevent be held online, the organiser is responsible for limiting
the COVID-19 pandemic.
monitors and evaluates “near-misses” in addition reoccurrences. the number of attendees with safe distancing to be
to the mandatory reportable incidents (in occuring In June 2020, employees at Far East Orchard group of observed at all times.
at its hospitality properties). Root Cause analysis A breakdown of the Group’s FY2020 health and safety business were split into two groups and allowed back into
Visitors to any Far East Orchard property were restricted
are conducted, and lessons learnt are shared with performance is as follows: the office on an alternating week basis (Grouping A/B)
to essential services only, with prior approval from the
and only if they required materials or services that were
Company Safety Management Officer. They are also
provided only in the office, such as completing contracts
made to adhere to the safe distancing measures and to
or other transactions on-site or to access specialised
Zero Zero 11.0 have their temperature screened before entering the
Incidents of Cases of Incidents of terminals or machines in the workplace. Employees were
properties.
workplace fatalities occupational disease workplace injuries to stagger their lunch breaks and working hours, to
minimise exposure when commuting on public transport. In September, employees returned to the office two days
Safe distancing and Safe Management Measures were a week with alternating schedules and with no more than
implemented, such as the checking in and out of the
0.8 6.1 50% of the employees in office each day. Employees
Accident Frequency Accident Severity office building, keeping a mask on at all times, and were to continue working from home if they were not
Rate (AFR) Rate (ASR) avoiding crowding or gathering in the office. scheduled to be in the office.
per million man-hours worked per million man-hours worked
StaySafe@FEO is an online portal introduced for The Group aims to continue monitoring the situation to
employees to record their daily temperatures twice a better adjust these measures such that health and safety
Figure 16: Occupational health and safety indicators for the hospitality properties 1
day including weekends and public holidays. This allows can be maintained at high standards in Far East Orchard
for the management to keep track of employees’ health properties.
In FY2020, Far East Orchard maintained its zero workplace fatalities and occupational disease cases record
at its hospitality properties. The Group’s efforts to create a safe working environment for its employees
were also reflected in the lower number of workplace injuries from 50.0 in FY2019 to 11.0 in FY2020. Far
East Orchard saw a decrease in its AFR from 1.7 in FY2019 to 0.8 per million man-hours year-on-year, while
its ASR improved from 19.1 to 6.1 per million man-hours worked in FY2020.
1
Applicable to Singapore properties only
23 | Sustainability Report 2020 Sustainability Report 2020 | 24Community Engagement
VALUES IN MOTION MANAGING PERSONAL DATA
Through Far East Orchard’s core values in Business with unable to conduct its regular volunteering and community Key initiatives to uphold customer privacy include:
Grace, Unity, Integrity, Love and Diligence, the Group is engagement activities. In compliance with Safe Management
• Appointment of data protection officers (“DPOs”) for • Maintain a data inventory map to facilitate effective
committed to contributing in various ways to benefit the Measures and to minimise the risk of exposure between
each business unit who maintain and monitor each record management
community around it. Employees are regularly encouraged employees and other stakeholders, Far East Orchard
business unit’s compliance with the relevant data
to contribute to charitable causes supported by the Group. has decided to postpone most of its engagement events • Taking measures to comply with the advisory guidelines
protection legislation
Volunteer activities are conducted during and outside and activities. relating to National Registration Identity Card
of office hours, reflecting both corporate and personal • Regular monitoring of business processes and security and other national identification numbers issued
The Group envisions to double up its efforts and look
commitment in contributing to the causes. procedures to assess and ensure compliance with by Singapore’s Personal Data Protection Commission
into enhancing its future activities when the pandemic
relevant data protection laws (“PDPC”)
In FY2020, due to the onset of COVID-19, the Group was restrictions are let up in the near future.
• Periodic reviews and updates to manuals and policies • Taking measures to comply with other relevant regional
to ensure relevancy, including the Information Security and/or national guidelines, including the European
Customer Devotion and Management Policy, Privacy Policy and a manual Union's General Data Protection Regulation and the
for employees to inculcate awareness of, and facilitate UK's Data Protection Act 2018
compliance with, applicable data protection laws
SAFEGUARDING THE PRIVACY OF CUSTOMERS
GRI-418-1 The Group also has a manual for employees to inculcate required to go through retraining or a refresher course at
Peace, Justice And Strong Institutions
Substantiated
awareness of the importance of complying with applicable least once a year.
Far East Orchard follows a strict code of conduct to ensure that complaints concerning
its customers have their personal information safeguarded and breaches of customer data protection laws. This manual was reviewed and
privacy and losses of updated in 2019, and a further review is underway in view The DPOs can be contacted by email at dpo@fareastorchard.
will continue to enjoy their privacy with the Group.
customer data
of the proposed changes to the PDPA. Employees are com.sg. The contact details were published in BizFile in 2020.
Far East Orchard is committed to safeguarding its personal information to third parties for marketing or
customers’ personal information, and maintaining the promotional purposes. In particular, the personal data
In FY2020, there were no substantiated complaints concerning breaches of customer privacy and loss of
privacy and security of data in relation to its business of guests who stay at the hotels and serviced residences customer data that resulted in fines by the PDPC.
operations. Customers can trust that their personal data is operated by the Group is collected, used and disclosed
being collected, handled, and protected in a responsible strictly for registration and stay purposes only.
and secure manner. The Group does not divulge or sell FY2021 Target Key Initiatives to be Continued/ Implemented
No substantiated • Educate employees on data privacy regulations and their role in compliance
complaints concerning • Regular review of business processes to facilitate compliance with data
breaches of customer
privacy regulations
privacy and loss
of customer data • Training by external counsel to educate employees
that resulted in fines
by the PDPC
25 | Sustainability Report 2020 Sustainability Report 2020 | 26PROVIDING QUALITY SERVICE
Various initiatives are also in place to build a service-
oriented workplace, including:
GRI-102-43
Peace, Justice And Strong Institutions Identifying and
selecting stakeholders
Far East Orchard takes into consideration the needs and
demands of its customers as well as its employees providing
services through appropriate stakeholder engagement. RI-102-44
Approach to
stakeholder engagement Employee of the Hall of Participation in
Month Excellence Industry Service
Programme served to Annual programme to reward Excellence Awards
recognise staff who have staff who have over the year and Accolades
In a highly competitive industry, the Group’s hospitality customers. The Group uses a two-pronged approach to received excellent delivered extraordinary
Staff are nominated in any
arm, Far East Hospitality, strives to maintain a sustainable manage Service Quality, with initiatives throughout the reviews from guests for service to our customers
and every service
competitive advantage and the confidence of its customers their service delivery and are a role model for their
year to provide the Group with a holistic assessment on excellence awards organised
fellow colleagues
through its focus on service quality. The Group is committed by/for the industry
the service delivered to its customers.
to drive continuous improvement while differentiating itself
within the industry to resonate with both new and existing The two-pronged approach comprises:
PROCESS Qualit y Delivery Qualit y As a member of the Singapore Hotel Association (SHA) the industry. A corresponding survey to measure the
and Association of Rooms Division Executives (Singapore) Group’s CEI score is conducted annually.
• Review and update SOPs for service delivery • Conduct daily trainings for Far East Hospitality and a Collaborative Partner of the Singapore Tourism
Due to the pandemic restrictions on Far East Hospitality’s
regularly according to customers’ feedback to meet employees on “Service”, as guided by the Acts of Grace Board, Far East Hospitality benefits from industry insights
the evolving expectations of customers. service values. operations in 2020, the annual CEI assessment was
and learning about best practices via networking events
cancelled as it would not reflect an accurate result in the
• Conduct on-the-job trainings or communication • Set expectations for all employees to consistently deliver
and publications. This information is used to strengthen
sessions for the respective roles/departments affected. the Acts of Grace (Attitude-Customer-Tream-Savviness- current circumstances. Instead, customers were engaged
Observation-Fulfilment-Gratitude-Responsiveness- the Group’s service quality standards and operational through various activities throughout the year via virtual
• Update the Service Quality Audit survey questions
Anticipation-Change-Engender) service attributes to all excellence.
accordingly to ensure a matched assessment. platforms such as Microsoft Teams, as well as on property
guests.
when possible.
• Conduct bi-annual Service Quality Audits (Mystery) by a Since 2016, Far East Hospitality has engaged an independent
select pool of surveyors to assess the delivery of services in external consultant to assess the quality of service delivered The Group will continue to monitor and take into account
accordance with SOPs and the effectiveness of trainings. to its customers. Working with management, the external guest feedback received. The Group aims to reinstate its
• Track and Monitor customers’ feedback consultant has developed a Customer Engagement Index CEI survey targets at such time when hospitality operations
• Review customers’ feedback on Revinate and social (“CEI”) target for the Group, which is benchmarked against return to pre-pandemic conditions.
media (e.g. TripAdvisor)
• Give recognition to employees who perform beyond
expectations for service delivery. FY2021 Target Key Initiatives to be Continued/ Implemented
Figure 17: The two-pronged service quality approach CEI Survey: N/A* • Far East Hospitality employees to perform an act of grace beyond work each day
*The CEI survey of 2021 would • Incorporate hygiene and safety topics Service Experience Creation to meet the
take into consideration the
unspoken needs of guests
performance and feedback in
2020, so it will not provide an • Maintain validation by the COVID-19 Joint Task Force personnel through keeping
accurate result. As such, no
targets are set for FY2021,
a high standard of health and safety on property
and the Group will monitor • Recruit mystery shoppers from government agencies to enhance the service audit
the number and nature
of feedback from guests.
27 | Sustainability Report 2020 Sustainability Report 2020 | 28You can also read
