Sustainability definitions - SUSTAINABILITY REPORT 2020
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Sustainability definitions table The following table contains definitions and clarifications for metrics and referenced terminology in the: • Worley Annual Report 2020 (Environment, Social and Governance or Sustainability section) • Worley Sustainability Report 2020 A B Biofuels Worley defines biofuels as sustainable fuels produced from biomass feedstocks, capable of delivering significant lifecycle greenhouse gas emissions reductions compared with fossil fuel alternatives. C Carbon dioxide Carbon dioxide emissions equivalent (CO2e) is the universal unit of measurement used to express and emissions compare emissions from various greenhouse gases based on their global warming potential, converted to equivalent the equivalent amount of carbon dioxide. (CO2e) The six key greenhouse gases recognized by the Kyoto Protocol and adopted by Worley are: • Carbon dioxide (CO2) • Methane (CH4) • Nitrous oxide (N2O) • Hydrofluorocarbons (HFC) • Perfluorocarbons (PFC) • Sulphur hexafluoride (SF6) CO2e emission Worley’s approach to greenhouse gas emissions reporting is consistent with the reporting requirements set factors out in the Greenhouse Gas Protocol Corporate Standard. The CO2e emissions factors are sourced from the latest International Energy Agency (IEA) emissions factors. As per accepted practice, we do not restate previous year emissions based on emission factor updates. Catalyst A robot designed by Worley to remove catalyst in a vessel, replacing the need for a human to do this activity. Removal The robot is deployed inside the vessel and vacuums the catalyst material out of it. Amphirol (CAROL) Chief Executive Officer role accountable to the Board for managing Worley and developing and executing Group strategy. Officer 1 Worley Sustainability definitions 2020
Corporate Corporate financial donations comprise all monetary donations by Worley corporate entities to organizations financial whose purpose is to support charitable causes and/or community development. It includes donations made donations (to by Worley’s corporate centre via the Worley Foundation, amounts invested in local communities as required sustainability by law In South Africa under the Broad-Based Black Economic Empowerment legislation requirements, and and corporate India under section 135 of the Companies Act, 2013, Companies (Corporate Social Responsibility Policy) responsibility Rules, 2014) as well as contributions by our regional operations. related Contributions by operations include direct monetary donations by Worley offices and business lines towards activities) our local communities. These contributions support the communities where Worley operates, including activities aligned to our sustainability and corporate responsibility commitments. Memberships, some scholarships and marketing spend are generally not included within this definition. Monetary and time contributions by our people, from payroll deductions or direct giving, volunteering, and value of paid hours are not included within this definition. The contributions (donations) are captured in the company’s finance systems at the time of payment, using the following codes / category, or equivalent: Expenditure category = contributions Resource type = charitable donations Total contributions are measured in Australian Dollars for the reporting period in which the financial transaction is made. Contributions by offices outside of Australia are converted to Australian Dollars using the average exchange rate during the month that the financial transaction occurred. D Diversity & At Worley, the diversity of our people includes factors such as race, ethnicity, gender, sexual orientation, Inclusion (D&I) socio-economic status, culture, age, physical ability, education, language, skill levels, family status, religious, political and other beliefs and work styles. We value and harness diversity to build an environment where people are connected and belong. Inclusion is defined as the outcome to ensure that those that are different and underrepresented feel welcome and valued. E Energy Energy is consumed predominantly to run our office spaces and fabrication yards. Electricity, natural gas and consumption other fuel consumption are compiled from metering and building data, and in some instances is estimated and conversion using historical data. Our total energy consumption is measured in megawatt hours (MWh) for the reporting factors period. Where fuel use is not recorded in terms of a unit of energy (i.e. gaseous or liquid fuels), conversion factors to establish energy use are used to convert volume of fuel to energy. Energy Average ratio of energy consumption relative to the aggregated revenue generated by the company over the intensity reporting period. This is expressed as a ratio of energy consumption per aggregated revenue raised (MWh/$ per dollar of million). revenue Worley Sustainability definitions 2020 2
Energy Average ratio of energy consumption relative to number of personnel as at the end of the reporting period. intensity per This is expressed as a ratio of energy consumption per person (MWh/person). person The personnel number is reduced from our employee number for the reporting period to exclude our large field-based workforce in North America, as these personnel do not work on our sites and do not contribute to our Scope 1 and 2 emissions. Enterprise Enterprise development is a target area of investment by the Worley Foundation aimed at providing development contributions to assist in the operation, financial performance and development of local small businesses towards long term sustainability. Employee This includes both the Group’s employees and contractors. Employment There are two employment contract categories at Worley: contract • Permanent contract: Permanent employee contract for full-time or part-time work for an indeterminate period. • Fixed term or temporary contract: Fixed term employment contract that ends when a specific time period expires. Employment There are two employment types at Worley: types • Full time: A ‘full-time employee’ is defined according to local national legislation and practice regarding working time (e.g. minimum of 30 hours per week) • Part time: A ‘part-time employee’ is defined as an employee whose working hours per week, month or year is less than a ‘full-time employee’. 3 Worley Sustainability definitions 2020
F First Aid Case Non-recordable cases such as visits to a physician or licensed health care professional solely for observation (FAC) or counselling; the conduct of diagnostic procedures as defined in OSHA CFR 1904.7 (b) (5) (i) (B); and first aid as defined in OSHA CFR 1904.7 (b) (5) (ii). If the injury or illness required only the following types of treatment, consider it first aid: • Using a non-prescription medication at non-prescription strength (for medications available in both prescription and non-prescription form, a recommendation by a physician or other licensed health care professional to use a non-prescription medication at prescription strength is considered medical treatment for recordkeeping purposes); • Administering tetanus immunizations (other immunizations, such as Hepatitis B vaccine or rabies vaccine, are considered medical treatment); • Cleaning, flushing or soaking wounds on the surface of the skin; • Using wound coverings such as bandages, Band-Aids™, gauze pads, etc.; or using butterfly bandages or Steri-Strips™ (other wound closing devices such as sutures, staples, etc., are considered medical treatment); • Using hot or cold therapy; • Using any non-rigid means of support, such as elastic bandages, wraps, non-rigid back belts, etc. (devices with rigid stays or other systems designed to immobilize parts of the body are considered medical treatment for recordkeeping purposes); • Using temporary immobilization devices while transporting an accident victim (e.g., splints, slings, neck collars, back boards, etc.). • Drilling of a fingernail or toenail to relieve pressure, or draining fluid from a blister; • Using eye patches; • Removing foreign bodies from the eye using only irrigation or a cotton swab; • Removing splinters or foreign material from areas other than the eye by irrigation, tweezers, cotton swabs or other simple means; • Using finger guards; • Using massages (physical therapy or chiropractic treatment are considered medical treatment for recordkeeping purposes); • Drinking fluids for relief of heat stress; • Visits to a physician or other licensed health care professional solely for observation or counselling; or • The conduct of diagnostic procedures, such as x-rays and blood tests, including the administration of prescription medications used solely for diagnostic purposes; e.g. eye drops to dilate pupils. Worley Sustainability definitions 2020 4
G Graduate Anyone who is on a formal Worley Group graduate program or hired direct from university. Greenhouse Aggregate total greenhouse gas emissions (Scope 1 and 2) generated by Worley activities, expressed in gas emissions carbon dioxide emissions equivalent (CO2e). Greenhouse Average ratio of greenhouse gas emissions relative to the aggregated revenue generated by the company gas emissions for the reporting period. This is expressed as a ratio of tonnes of carbon dioxide equivalent per aggregated intensity per revenue raised (tCO2e/$ million). dollar revenue Greenhouse Average ratio of greenhouse gas emissions per person member (tCO2e /person). This is calculated using our gas emissions Scope 1 and 2 emissions. intensity per The personnel number is reduced from the total employee number for the reporting period to exclude person our large field-based workforce in North America, as these personnel do not work on our sites and do not contribute to our Scope 1 and 2 emissions. Greenhouse Average ratio of greenhouse gas emissions per unit energy used (tCO2e/MWh) during the reporting period. gas emissions This is a new metric for FY2020 and will be used to measure how we are moving to lower carbon forms of intensity per energy as we work towards net zero greenhouse gas emissions. unit of energy Group Direct reports to the Chief Executive Officer who have executive accountabilities for managing major regional Executive business units (profit and loss) and significant functions, as well as developing and executing Group strategy. Participation may be extended to other senior leaders by exception and for specific purposes. 5 Worley Sustainability definitions 2020
H Heritage Refers to both: WorleyParsons • The WorleyParsons Group of companies as it existed prior to acquisition of the Jacobs Energy, Chemicals and Resources division on 29 April 2019 • That part of Worley which was historically part of the WorleyParsons Group of companies prior to the acquisition of the Jacobs Energy, Chemicals and Resources division on 29 April 2019. Heritage Refers to both: Jacobs Energy • The Energy, Chemicals and Resources division of Jacobs Engineering Group as it existed prior to being Chemicals and acquired by the WorleyParsons Group on 29 April 2019 Resources (ECR) • That part of Worley which was historically part of the Jacobs Energy, Chemicals and Resources division prior to its acquisition by the WorleyParsons Group on 29 April 2019. I J K L Lost Workday A recordable injury/illness that results in one or more days away from work at the direction of a medical Case (LWC) professional. Worley shall begin counting days away on the day after the injury occurred or the illness began and each calendar day until released to return to work in some capacity by a medical professional as defined in OSHA 1904.7(b)(3)(ii). A LWC is a recordable case. You must count the number of calendar days the employee was unable to work as a result of the injury or illness, regardless of whether or not the employee was scheduled to work on those day(s). Weekend days, holidays, vacation days or other days off are included in the total number of days recorded if the employee would not have been able to work on those days because of a work-related injury or illness (OSHA 1904.7(b) (3)(iv)). These cases are recordable only if information is received from a physician or other licensed health care professional indicating that the employee should not have worked, or should have performed only restricted work, on these days (OSHA 1904.7(b)(3)(v). Lost Workday Lost Workday Case Frequency Rate (LWCFR) is calculated by: Case (Total number of days away resulting from LWC) x 200,000 Frequency LWC Severity Rate = Rate (LWCFR) Hours worked (for the period) Worley Sustainability definitions 2020 6
M Medical The management and care of a patient to combat disease or disorder as defined in OSHA CFR 1904.7(b) (5). Treatment Treatment beyond first aid is Medical Treatment. Case (MTC) A Medical Treatment Case is a Recordable Case. N Non-executive Members of the Worley Board. directors Non-profit Organizations that are not operating for the profit or gain of its individual members. Surplus revenue, direct organization or indirect goes back into the operation of the organization to carry out its community objectives and goals. Non-profit organizations are often established by and for the community with minimal or no intervention from local or federal government. O Operational Operational control describes the boundary for reporting our environmental performance information. control Worley reports its energy use and greenhouse gas emissions with respect to the operational control model as set out by the Greenhouse Gas Protocol, i.e. our sites where we have full authority to introduce and implement our operating policies. P Paris An agreement within the United Nations Framework Convention on Climate Change. The aim of the Agreement Paris Agreement is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2°C above pre-industrial levels, and to pursue efforts to limit the temperature increase further to 1.5°C. People Our People network groups bring employees with shared characteristics or life experiences - such as gender, network race, cultural heritage, sexual orientation and/or gender identity, disability - together in a safe space and groups offer varying opportunities for members. These include social and development opportunities, mentoring, volunteering, sharing best practice and a chance to gain skills and experience in areas they may not get the opportunity to do in their ‘day job’. 7 Worley Sustainability definitions 2020
Q R Reporting Reporting period highlights our efforts from 1 July 2019 to 30 June 2020, unless otherwise stated. period Restricted Restricted work occurs when, as the result of a work-related injury or illness: Workday Case You keep the employee from performing one or more of the routine functions of his or her job, or from (RWC) working the full workday that he or she would otherwise have been scheduled to work OSHA 1904.7(b)(4)(i) (A); or A physician or other licensed health care professional recommends that the employee not perform one or more of the routine functions of his or her job, or not work the full workday that he or she would otherwise have been scheduled to work. OSHA 1904.7(b)(4)(i)(B). Worley shall begin counting restricted work days on the day after the injury occurred or the illness began and each calendar day until released to return to full routine duties. A RWC is a Recordable Case. S SaltGrid A cloud-based platform which applies artificial intelligence to health, safety and environmental data to predict the number and types of incidents likely to occur. Scope 1 Direct greenhouse gas emissions from sources that The Group owns or controls. Our Scope 1 emissions emissions come from burning liquefied petroleum gas (LPG), natural gas and liquid fuels in heaters and generators, particularly at our fabrication yards. Scope 2 Indirect greenhouse gas emissions that come from purchased energy – including heat and steam, by emissions The Group. Our Scope 2 emissions come from the energy used to power our fabrication yards and office buildings. Scope 3 All other indirect emissions in the value chain of The Group. We do not presently estimate our Scope 3 emissions emissions. These include (but are not limited to) emissions from transportation of our products from our fabrication yards, business travel, data centres and waste disposal. Senior Leadership roles at Worley up to the end of FY2020 were called senior executives. They comprised all executives employees and contractors at the CEO-1, CEO-2, CEO-3 levels. Worley Sustainability definitions 2020 8
Senior leaders From FY2021 senior leader roles will be defined using our Organizational Role Framework (Tiers) rather than based on positioning of roles in relation to our CEO. Tiers are more indicative of the leadership component of our roles, with Tier 1 roles being the highest level of leadership competency, typically demonstrated by Group Executive members. Senior leaders are managers below Group Executive who have leadership accountabilities for business units (profit and loss) and functions (and sub-functions). This can be defined using organisation tiers, which represent the size and impact of the role. Typically, this would be tiers one, two and possibly three, depending on the area. Serious Case Any fatality or permanent disabling injury / illness or HSE Event with a potential consequence to result in a fatality or a permanent disabling injury or illness. Serious Case The sum of; Fatalities + Disabilities + High Potential Events multiplied by 200,000 and divided by the hours Frequency worked; i.e. Rate (SCFR) The sum of (Permanent Disabling Injury or Illness (Actual + Potential) + Fatalities (Actual + Potential) x 200,000 SCFR = Hours worked (for the period) Frequency rates are a normalized measure of performance; they are a Worley reporting requirement. Skilled At Worley, the term skilled volunteering is used when our people provide skilled services to community- volunteering based organizations in their time outside of paid working hours on a no fee basis. Sustainability Sustainability encompasses those elements of our environmental, social and governance (ESG) performance. It also refers to our activities supporting our customers to meet ESG objectives on their projects. T The Group At Worley, the Group is defined as Worley and its subsidiaries, associates and alliances. Total The sum of; Fatalities + Disability/Permanent Illness + LWC + RWC + MTC recordable cases Total The sum of; Fatalities + Disability/Permanent Illness + LWC + RWC + MTC multiplied by 200,000 and divided recordable by the number of hours worked; i.e. case frequency rate (TRCFR) (Fatalities + Disability / Permanent Illness + LWC + RWC + MTC) x 200,000 TRCFR = Hours worked (for the period) Frequency rates are a normalized measure of performance; they are a Worley reporting requirement. TRACE Worley’s tool used for conducting anti-bribery and corruption, modern slavery and ethical business due diligence research. 9 Worley Sustainability definitions 2020
U V W Women This includes both the Group’s employees and contractors. employees There can be difficulties in the quality of gender data due to voluntary self-reporting in some jurisdictions (notably the United States where we have a sizable footprint). The percentage women employees metric is provided on this basis. Worley The Worley Foundation was established in 2013 with objectives to support the execution of high Foundation impact strategic community projects; become a vehicle for direct corporate investment, fundraising and volunteering; and expand opportunities for our people to be directly or indirectly involved in foundation activities. X Y Z Worley Sustainability definitions 2020 10
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