SUSTAINABILITY REPORT 2020 - Chip Eng Seng Corporation Ltd - Chip Eng Seng ...
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Sengkang Neighbourhood 4, Contract 39 & Contract 40, Singapore CONTENTS 38 About This Report 60 Quality and Safety 43 Sustainability Approach 61 Our Community 44 Our Stakeholders 62 GRI Content Index 46 Materiality 68 SASB Index 48 Our Environment 54 Our People Chip Eng Seng Corporation Ltd. Annual Report 2020 37
ABOUT THIS REPORT This is Chip Eng Seng REPORTING PERIOD AND SCOPE REPORTING PRINCIPLES This report covers ESG data for the period We have developed this report’s content Corporation Ltd’s 1 January 2020 to 31 December 2020. This by applying the ten reporting principles (“Chip Eng Seng” or the report’s ESG information mainly focuses on outlined in the GRI Standards (GRI 101: Chip Eng Seng’s operations in Singapore, Foundation 2016). In line with GRI’s “Company”, and together spanning across building construction, reporting principles, we have considered with its subsidiaries, civil infrastructure, precast technology, stakeholder views and the most material the “Group” ) 4th annual property development, property investment, hospitality and education businesses that governance, economic, environmental and social impacts of our business activities sustainability report that contribute to 96% of the Group's total and the larger sustainability context for our details our sustainability revenue. Unless stated otherwise, overseas business activities. We have applied GRI’s entities are currently excluded from the principles of accuracy, balance, clarity, performance relating to report as they represent a relatively small comparability, reliability and timeliness material Environmental, proportion of the Group's total revenue. to maintain the quality of the information However, we intend to include such data in included in the report. ESG data provided in Social and Governance future reporting. the report has been extracted primarily from (“ESG”) factors. This internal information systems and primary REPORTING STANDARDS records to ensure accuracy and consistency. is the first time our This report has been prepared in Financial figures are in Singapore dollars sustainability report accordance with the Global Reporting unless specified otherwise. has been included Initiative ("GRI") Standards: Core option. We have continued to use the GRI Standards, RESTATEMENTS within our Annual the most widely used sustainability A minor adjustment has been made to the Report. The earlier reporting standards worldwide due to greenhouse gas emissions data for 2018 its longstanding universal application and 2019 owing to the latest revision in three sustainability and robust guidance which allows for the grid emission factors by the Energy reports were published comparability of our performance against Market Authority, Singapore, published in peers. This report is also prepared in October 2020. as stand-alone accordance with the Listing Rules of the sustainability reports. Singapore Exchange Securities Trading ASSURANCE Limited (Rules 711A and 711B). We have relied on internal verification to ensure the accuracy of the data. We did not For the first time, we have aligned the seek external assurance for the content of disclosures with selected metrics from this report. External assurance for future the Sustainability Accounting Standards reports remains under consideration. Board’s ("SASB") Engineering & Construction Services Sustainability Accounting Standard. AVAILABILITY The SASB Standards are industry-specific Our Annual Report 2020, which includes and reflect the financial materiality of this report, is available in PDF format topics. We have continued to integrate the for download or online viewing on our United Nations Sustainable Development corporate website at Goals ("UN SDGs") into our sustainability www.chipengseng.com.sg reporting. We have used the Greenhouse Gas ("GHG") Protocol Corporate Accounting FEEDBACK and Reporting Standard to calculate our Stakeholders are welcome to send greenhouse gas emissions. We have their feedback or suggestions reported our Scope-2 emissions using the regarding this report to us at location-based method as market-based sustainability@chipengseng.com.sg emission factors are not available. 38 Building Resilience
BOARD STATEMENT CORPORATE GOVERNANCE Corrupt Practices Act and the Australian The Board of Directors (the "Board") AND ETHICS Criminal Code Act. All new employees are is committed to sustainability and The Group is committed to achieving high required to submit a conflict of interest considers sustainability issues as part standards corporate governance in complying declaration form upon joining and annually of its strategic formulation. The Board with the Code of Corporate Governance 2018. after that. Employees who participate in any is also committed to setting strategic The Company believes that good corporate tendering process or awarding of contracts objectives with an appropriate focus governance provides the framework for are first required to submit a declaration of on sustainability. The Board regularly an ethical and accountable corporate any conflict of interest. evaluates potential sustainability risks environment, which is essential to the as part of the overall risk assessment long-term sustainability of the Group’s There were no confirmed cases of and provides strategic direction to the businesses and performance as well as the corruption in the reported period. management to adopt relevant policies protection of shareholders’ interests. and responses. The Board determines, REGULATORY COMPLIANCE reviews and approves the material ESG Please refer to the Corporate Governance The Group is committed to complying factors and disclosures for sustainability Report section in this Annual Report for with applicable economic, environmental, reporting. The Board provides oversight more information about our approach. labour and social laws. Complying of the management and monitoring of with applicable laws is a top priority these material ESG factors through ANTI-CORRUPTION for the Group as non-compliance regular review of performance Chip Eng Seng maintains a zero tolerance may result in penalties, stop-work indicators. position against all forms of corruption, order, and reputation loss. To ensure including bribery, extortion, fraud and money compliance, we regularly review SUSTAINABILITY GOVERNANCE laundering. Our Anti-Bribery and Corruption labour, environmental and public health The Board provides strategic direction for Policy prohibits dishonest and fraudulent regulations to update and implement adopting and implementing sustainability behaviour, including offering, promising, the necessary policies and practices. We strategies and policies and oversees authorising, providing or receiving any disseminate regulatory updates to the the management and monitoring of the kickback. We also require all employees relevant employees to help them stay up sustainability policies. to comply with all applicable local anti- to date with legal requirements. bribery laws where the Group operates. For The Group’s Sustainability Management example, our policy requires compliance There were no significant fines in the Committee ("SMC"), chaired by the Group with the Singapore Prevention of Corruption reported period for non-compliance with Chief Executive Officer with the Group Act, the UK Bribery Act, the US Foreign laws in the social and economic area. Chief Financial Officer as the deputy chairman, supervises the adoption and implementation of the sustainability strategies and policies and provides BOARD OF DIRECTORS regular updates to the Board. The SMC is supported by a cross-functional sustainability reporting project team responsible for collecting sustainability SUSTAINABILITY MANAGEMENT COMMITTEE performance data. A senior executive Chairman: Group Chief Executive Officer has been assigned the responsibility to Deputy Chairman: Group Chief Financial Officer coordinate with the project team to prepare sustainability reports. Senior representatives from various SUSTAINABILITY REPORTING PROJECT TEAM business divisions and departments actively contribute to sustainability initiatives. Chip Eng Seng Corporation Ltd. Annual Report 2020 39
ABOUT THIS REPORT WINNING ACCOLADES In 2020, the Group continued to win an array of awards and recognition that reflect our total commitment to quality, safety and sustainable development. Listed below are our recent honours. 2020 Commendation Commended for supporting the bizSAFE Program for more than a decade by the WSH Council: Chip Eng Seng Contractors (1988) Pte Ltd Silver The WSH Performance (Silver) Award 2020: Chip Eng Seng Contractors (1988) Pte Ltd Winner The WSH SHARP Award: Chip Eng Seng Contractors (1988) Pte Ltd for Woodleigh Glen Excellence The BCA Green and Gracious Builder Award: Chip Eng Seng Contractors (1988) Pte Ltd Excellence The BCA Green and Gracious Builder Award: CES Engineering & Construction Pte Ltd Excellence The BCA Green and Gracious Builder Award: CES_SDC Pte Ltd Commendation bizSAFE Star Certification: CES_SDC Pte Ltd 2019 Winner HDB Construction Safety Award (Building Category) for Woodlands N1C26 & C27 Merit HDB Construction Safety Award (Building Category) for Tampines N6C1A/1B Winner HDB Construction Award for Tampines Green Ridges (Tampines N6C1A/1B) Winner WSH SHARP Award for Grandeur Park Residences at New Upper Changi Road/Bedok South Avenue 3 Winner WSH SHARP Award for Marsiling Greenview at Woodlands N1C26 & C27 Winner WSH SHARP Award for Alkaff Oasis at Bidadari C6 Winner WSH SHARP Award for Alkaff Oasis at Bidadari C7 Silver WSH Performance (Silver) Award to CES Engineering & Construction Pte Ltd Bronze SCAL WSH Innovation Award to CES Engineering & Construction Pte Ltd (Grandeur Park Residences) – “Smart MV Shaft Formwork” Commendation WSH CultureSAFE (Certificate of Commendation) for Bidadari C6/C7 Alkaff Oasis Commendation WSH CultureSAFE (Certificate of Commendation) for Bidadari C8/C9 Best of Category LIAS (Landscape Industry Association Singapore) Award (Implementation – Residential category) for Tampines Green Ridges (Tampines N6C1A/1B) 2018 Winner HDB Construction Safety Award 2018 for Sembawang N1C10 Winner WSH Safety and Health Award Recognition for Projects (SHARP) Award for Alkaff Oasis, Bidadari C7 Winner WSH Safety and Health Award Recognition for Projects (SHARP) Award for Green Ridges, Tampines N6C1A/1B Winner WSH Safety and Health Award Recognition for Projects (SHARP) Award for Marsiling Greenview, Woodlands N1C26 & C27 Winner WSH Safety and Health Award Recognition for Projects (SHARP) Award for Alkaff Oasis, Bidadari C6 Commendation WSH CultureSAFE for Bidadari C6/C7 Alkaff Oasis Commendation WSH CultureSAFE for Marsiling Greenview, Woodlands N1C26 & C27 Merit SCAL Productivity & Innovation Award to CES Engineering & Construction Pte Ltd Please visit our website http://www.chipengseng.com.sg/corporate/recent-awards/ to see the complete listing of our awards and commendations since 2010. 40 Building Resilience
PROTECTING FROM COVID-19 pre-entry screening, safe distancing and tutoring were introduced, and the parents Protecting our people, customers, visitors, enhanced hygiene. With the easing of some were kept updated and engaged through a suppliers, and contractors became our top restrictions in phase 3, we have revised the web-based app. The school management priority as the COVID-19 pandemic hit. We SMM to ensure continued compliance. hosted an online weekly “Happy Hour” to worked closely with the relevant authorities share strategies with parents for home- to comply with their virus containment Measures at Construction Sites based learning and gather feedback. measures and looked after our people and Factories across our markets in Singapore, Malaysia All our construction sites and precast All our Primary Schools took similar and Australia, which enforced lockdowns factories promptly implemented the measures mandated by the Committee and movement restrictions. required SMM and appointed Safe of Private Education. The Perse School Management Officers and Safe Distancing (Singapore) offered 4 hours of Home-Based We implemented several measures in our Officers to assist in the implementation Learning via Microsoft Teams Video Call. The offices and workplaces that included wearing and coordination of SMM at their school also introduced a weekly well-being masks, safe distancing, temperature taking, respective workplaces. The SMM were also session for students. and emergency procedures. We have also implemented at offsite worker dormitories. introduced virtual meetings as a preferred All construction sites and precast factories Measures at Our Hotels option to minimise physical proximity. implemented staggered reporting, break Our hotel partners took proactive times, meal times, end work, transportation measures to ensure the health, safety We introduced Work From Home departure and arrival times between and well-being of our employees, guests arrangements for eligible employees, worksite and dormitory to prevent and business partners through this ensuring they had reliable and secure possible overcrowding and congregation of unprecedented crisis. We introduced internet connections and the required employees at shared facilities. The use of elevated hygiene and protection protocols devices such as laptops, monitors, TraceTogether App or Token with SafeEntry across our hotel properties. The new steps software, printers and IT accessories is mandated at all our construction sites included enhanced staff training, cleaning to continue their work. We invested in and precast factories for contact tracing. protocols and food safety measures, upgrading our IT infrastructure by acquiring Ministry of Manpower’s FWMOMCare App Safe Entry Management System, safe new remote access servers, additional was deployed at worker’s dormitories to distancing measures, and compliance laptops and VPN accounts and software monitor foreign workers’ health status to with government orders, guidelines, and licenses to support remote working. ensure their well-being. advisories on COVID-19. Measures at Property Keeping Our Schools Safe In Singapore, Park Hotel Alexandra has Showroom Galleries Our schools adopted extensive measures attained SG Clean certification by Enterprise To continue serving our home buyers, we to reduce the transmission risk and protect Singapore and the Singapore Tourism introduced Safe Management Measures the students, the staff and visitors. The Board to ensure the highest hygiene and ("SMM") at our showroom galleries in measures included staggered arrival and sanitation standards. Our resort in the step with various phases of COVID-19 dismissal timing, temperature recording on Maldives was awarded “Safe Travels restrictions. When operating sales galleries arrival, requiring teachers and students to Stamp” by The World Travel and Tourism were not permitted during the circuit- wear the mask or the face shield, enhanced Council to provide confidence to travellers breaker period, we introduced virtual tours hygiene, frequent cleaning of spaces, and re-establish consumer confidence in to view available units on the website regular hand washing and safe distancing travel and tourism. and over Zoom. We also organised virtual in classrooms and during other activities. meetings to share information about To promote awareness, our schools Our hotels in Australia have undergone our various projects. displayed reminder posters. In Singapore, partner Accor’s ALLSAFE global cleanliness Invictus Schools also installed protective and prevention standards to achieve the We had already digitised the sales process screens on student desks to minimise new ALLSAFE label. before the COVID-19 pandemic, which allowed physical contact. us to carry on marketing activities with Chip Eng Seng remains committed to minimal disruption. A method to digitally Working closely with the Early Childhood working with our stakeholders, partners and sign sales documents was introduced to Development Agency, all our Kindergartens regulatory agencies to keep our societies reduce the need for physical presence. and Childcare Centres adopted stringent and economies safe from the pandemic. As COVID-19 measures to protect students and vaccination drives gain momentum, we look When show galleries were allowed to open staff in school premises. School furniture forward to rebuilding our businesses for in phase 2, we implemented the necessary was rearranged, and markings on floors resilience and a sustainable future. measures to minimise viral transmission risk. introduced to assist the children and staff The procedures included regulating capacity, in safe distancing. Online lessons and Chip Eng Seng Corporation Ltd. Annual Report 2020 41
ABOUT THIS REPORT PERFORMANCE SUMMARY MATERIAL ESG FACTORS 2018 2019 2020 ENVIRONMENTAL(1) Carbon emissions at building construction sites (tCO2)(2) 4,193 4,016 2,511 Carbon emissions intensity at building construction sites (KgCO2 /m2)(3) 24.39 27.34 53.70 Electricity consumption at building construction sites (kWh) 1,504,841 827,756 1,476,197 Energy consumption at building construction sites (GJ)(2) 57,181 56,462 33,061 Energy intensity at building construction sites (GJ/m2)(3) 0.33 0.38 0.71 Waste (non-hazardous) at building construction sites (tonnes) 5,499 4,631 3,106 Waste (non-hazardous) intensity at building construction sites (kg/m2) 31.98 31.53 66.41 Water consumption at building construction sites (m3) 184,741 140,529 116,755 Water consumption intensity at building construction sites (m3/m2) 1.07 0.96 2.50 SOCIAL Employees Construction, Property Development and Corporate 369 357 485 Education 134 188 236 Hospitality 159 152 92 Female employees (%) 36.0 51.9 44.6 Female managers and supervisors (%) 34.0 44.3 34.9 Average training hours per employee 7.9 7.2 8.4 Training expenditure per employee (S$) 209 320 125 Employee turnover rate(4)(%) 17.3 16.5 22.7 New hires 68 182 276 Occupational Health and Safety (5) Accident Frequency Rate ("AFR") 0.6 0.6 0.8 Workplace Injury Rate ("WIR") 186.2 190.7 90.4 Accident Severity Rate ("ASR") 26.0 34.0 15.0 Occupational Disease Rate 0.0 0.0 0.0 Fatal Accidents 0.0 0.0 0.0 Community Community donations ($) 153,799 328,358 78,228 Notes: (1) Environmental data refers to building construction sites in Singapore. Environmental data for civil infrastructure, education and hospitality divisions have been reported separately for comparability in the Environment chapter. (2) Carbon emissions and energy data include purchased electricity and fuel consumption. (3) Please refer to page 48 and 49 for the explanation for consumption and intensity in 2020. (4) Employee turnover rate refers to corporate, construction and property development divisions. The turnover rate for the education division is reported separately to ensure comparability in the People chapter. (5) Occupational health and safety data in construction division exclude project sites that the Company has less than 50% equity participation. Calculation formula: AFR = (No. of Injuries / Total Man Hours) x 1,000,000, WIR = (No. of Fatal and Non-Fatal Workplace Injuries / No. of Employed Persons) x 100,000, ASR = (Lost of Man Day / Total Man Hours) x 1,000,000. 42 Building Resilience
SUSTAINABILITY APPROACH Our approach is to Conducting our business with responsibility and integrity is central to our business The COVID-19 pandemic has tested the resilience of businesses. We are committed create long-term value model. With a humble beginning as to working with all stakeholders to rebuild for our stakeholders a building sub-contractor for landed better and stronger. Climate change risk properties in the 1960s, Chip Eng Seng has instilled a global sense of urgency to and shareholders by has now evolved into a multinational meet the Paris Agreement aspirations. We growing our businesses conglomerate company with businesses in will continue to do our part in reducing building construction, civil infrastructure, greenhouse gas emissions from our sustainably. precast technology, property development businesses by investing in lower-carbon and investment, hospitality, and education. alternatives and technologies while increasing renewable energy adoption. Our Over the years, the Group has always support also continues for the UN SGDs strived for excellence and has won as the need to build resilient, just and numerous awards in workplace safety and sustainable societies has become more health, construction quality, environment, critical than ever. productivity, innovation, and corporate transparency. Sustainability remains at the SUSTAINABILITY TARGETS core of our growth strategy as we expand In line with our approach, we have internationally and diversify into new established targets for our material ESG business segments. We remain steadfast topics to monitor, review and report our in managing our material environmental, sustainability performance. Detailed social, and economic impact to maximise disclosures about our performance against stakeholders’ value. targets can be found in this report. Chip Eng Seng Corporation Ltd. Annual Report 2020 43
OUR STAKEHOLDERS Forging trusted relationships with our stakeholders is crucial for the sustainable growth of our business. A good understanding of our stakeholders’ views and opinions is essential to drive our sustainable growth. We identify our stakeholders based on the extent to which they are affected by our business activities or their ability to influence our business goals. Although we did not engage any external group specifically to prepare this report, insights gained from our ongoing engagement with various stakeholders has helped us determine material ESG topics for reporting. A summary of our stakeholder engagement is in the following table. Stakeholder Groups Topics and Concerns Engagement Methods Customers Clients • Regular project updates • Compliance with environmental and • Tenancy agreements Construction, Property Development and safety standards • Customer service Investment: Clients, Homebuyers and • Productivity and innovation • Submission of performance survey Tenants reports Homebuyers • Website Hospitality: Hotel Guests • Good workmanship • Good quality and design Our brand partners regularly engage hotel Education: Students and Parents • Prompt rectification guests to ensure their stay is pleasant and • Clear communication comfortable. • Timely completion of projects • Legal and contractual compliance The respective school management engages parents through updates, notices and Tenants meetings. Teachers and school staff engage • Workplace safety and health students through learning and extra- • Good management of facilities curricular activities. Hotel Guests • Service quality • Safety and security • Food safety and hygiene Students and Parents • Quality of education • Safety and security Employees • Safety, health and well-being • Regular meetings • Training and development • Internal communication • Job security • Training • Career advancement • Performance reviews • Fair remuneration and rewards • Employee welfare • Work-life balance Government • Regulatory compliance • Compliance updates and Regulators • Responsible business practices • Timely data reporting • Productivity and innovation • Participating in stakeholder • Sustainability reporting consultations by government agencies • Participating in government committees • Sustainability reports 44 Building Resilience
Stakeholder Groups Topics and Concerns Engagement Methods Investors and shareholders • Financial performance • Regular updates through • Return on investment announcements on SGX-Net and Group • Governance website • Risk management • Annual General Meetings • ESG performance • Annual Reports • Sustainable business growth • Sustainability reports • Business diversification Suppliers and • Clear specifications and instructions • Supplier policies and requirements Sub-contractors • Workplace safety and health • Tenders/Request for Proposal • Timely payment according to contractual Agreements terms • Product presentations and seminars • Technical guidance • Site inspections • Timely provision of materials and equipment • Productivity and innovation • Site inspections Business Partners/Brand Partners/ • Licensing policies • Regular meetings and updates Licensing Partners • Brand guidelines • Reviewing performance reports (Hospitality and Education Divisions) • Business targets Community • Minimal disruptions due to the Group’s • Advance notification of work schedule project work • Feedback systems in place • Minimal dust, noise and vibrations from • Regular updates through posting of construction notices and bulletins • Health and safety • Donations and sponsorships • Support for community programmes MEMBERSHIP OF ASSOCIATIONS We support various industry associations and forums through membership and participation in events and dialogues. Some of the associa- tions to which our Group contributes as a member are listed below: • Singapore Business Federation • Singapore National Employers Federation • Singapore Institute of Directors • The Singapore Contractors Association Ltd • Singapore Institute of Surveyors and Valuers • Real Estate Developers’ Association of Singapore Chip Eng Seng Corporation Ltd. Annual Report 2020 45
MATERIALITY In 2020, we conducted a comprehensive re-assessment of our ESG impacts. Facilitated by an external sustainability consultant, senior management representatives from various business divisions participated in a materiality workshop to review and validate the most significant economic, environmental and social impacts, both positive and negative, from our operations. The materiality assessment considered stakeholders’ interests, reporting by peers and the major sustainability trends. The materiality review also evaluated the relevant ESG topics for our hospitality and education businesses for the first time. This report, therefore, includes enhanced disclosures relating to these two business divisions. An overview of our updated material topics, their boundary and our management approach is presented in the table below. Material ESG Factors Material Topics Our Businesses Where the Management Approach Involvement Impact is Material OUR ENVIRONMENT Energy Direct and through business • Real Estate Take energy efficiency measures relationships with sub-contractors, • Hospitality in design, construction and tenants and brand partners management GHG Emissions Direct and through business • Construction Minimise CO2 emissions during relationships with sub-contractors, • Hospitality construction and in managing tenants and brand partners properties Waste (non-hazardous) Direct and through business • Construction Minimise waste during relationships with sub-contractors, • Hospitality construction and in managing tenants and brand partners properties Water Direct and through business • Construction Minimise and conserve water relationships with sub-contractors, • Hospitality during construction and in tenants and brand partners managing properties Environmental Compliance Direct and through business • Construction Minimise and conserve water relationships with sub-contractors, • Hospitality during construction and in tenants and brand partners managing properties OUR PEOPLE Occupational Health and Direct and through business • All Business Divisions Strive for a zero accident Safety relationships with sub-contractors workplace and brand partners Employment Direct and through business • All Business Divisions Build a fair and high performing relationships with our brand partners workplace Training and Education Direct and through business • All Business Divisions Provide ongoing opportunities for relationships with our brand partners skills and personal development OUR CUSTOMERS Customer Health and Safety Direct and through business • All Business Divisions Ensure health, safety and security relationships with our brand partners of our customers Customer Privacy Direct and through business • All Business Divisions Protect and safeguard personal relationships with our brand partners data OUR GOVERNANCE Anti-corruption Direct and through business • All Business Divisions Maintain zero tolerance for fraud relationships with sub-contractors and corruption and brand partners Regulatory Compliance Direct and through business • All Business Divisions Comply with applicable laws and relationships with sub-contractors regulations and brand partners 46 Building Resilience
CONTRIBUTING TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS We have aligned our ESG priorities with the UN SDGs underpinning our support for sustainable development. Out of the 17 UN SDGs, we have identified 8 goals, where we see an opportunity to contribute. We have established specific ESG targets that directly support various UN SDG targets. Material ESG Factors Our Annual Targets UN SDGs Supported ENVIRONMENT Building Construction • Energy • Energy: < 0.49 GJ/m2 • GHG Emissions • GHG Emissions: < 34.92 kgCO2/m2 • Waste (non-hazardous) • Water consumption: < 0.90 m3/m2 • Water • Waste (non-hazardous): < 30.00 kg/m2 HDB Project, < 40.00 kg/m2 Private Project Hospitality • Electricity consumption: 28.47 kWh/room night • Water consumption: 0.32 m3/room night Education • Electricity consumption: 67.00 kWh/m2 for the next 3 years • Water consumption: Reduce by 15% over 3 years to 11.8 litre/population/day by 2023 SOCIAL Occupational Health & Safety • Occupational Health and • Zero fatalities across operations Safety • Zero accidents across operations • Employment • Zero occupational diseases across operations • Training and Education Turnover Maintain employee turnover rate below the national average for the sector Training Average training hours - 8.6 hours/employee GOVERNANCE Compliance • Regulatory Compliance • Zero incidents of non-compliance with applicable • Customer Privacy environmental and socio-economic regulations • Anti-Corruption • Zero breaches of Personal Data Protection policy Anti-Corruption • Zero incidents of fraud or corruption Chip Eng Seng Corporation Ltd. Annual Report 2020 47
OUR ENVIRONMENT We are committed CLIMATE CHANGE In 2020, our building construction sites’ Climate change has become an existential absolute electricity consumption was to minimising the threat to humanity. Increasing global 1,476,197 kWh as against 827,756 kWh in environmental impact of temperatures can trigger extreme weather the prior year. During the same period, conditions, rise in sea-level, droughts our operations consumed 0.72 ML of diesel our operations. and heatwaves, rainfall changes, floods compared with 1.39 ML in the preceding and hurricanes, directly impacting food year. In 2020, the total energy intensity Our policy is to lower our environmental supplies, ecosystems, coastal stability and was 0.71 GJ/m2 of gross floor area built impact by focusing on energy efficiency, public health. There is a global urgency to against 0.38 GJ/m2 in the previous year. emission reduction, water conservation, transition to a lower-carbon economy. We have revised our energy intensity and waste management. We have adopted target from 0.38 to 0.49 GJ/m2 for the a Green and Gracious policy in our As the world rallies to meet the aspirational forthcoming year as we foresee relatively construction business, the main contributor global goal of limiting the temperature rise higher diesel consumption owing to to the Group’s environmental impact. Our well below 1.5˚ Celsius as set out in the advanced stage of construction at various sustainability practices incorporate green Paris Agreement, we are doing our part active projects as well as more projects design, sustainable materials, productivity to reduce emissions from our business having prefabricated bathroom units through technology and innovation, pollution activities. In Singapore, we work closely with and prefabricated prefinished volumetric control, and efficient construction practices. BCA to innovate, develop and implement construction which require generators green design and construction technologies. of higher output hence, requiring higher We practice environmental responsibility We also collaborate with HDB to build usage of on-site power generators. across our businesses, spanning across sustainable homes for Singaporeans. building construction, civil infrastructure, The electricity consumption was higher precast technology, property development ENERGY in 2020 than the prior year because of and investment, hospitality, and education. Grid electricity and diesel consumption at the switch from power generators to our construction sites constitute a significant grid electricity at two project sites. Also, ENVIRONMENTAL MANAGEMENT part of our energy consumption. Our focus even though the construction activities SYSTEM is on reducing energy intensity. was halted for a considerable period We have implemented a comprehensive due to COVID-19 restrictions, electricity Quality, Environment, Health and Safety ENERGY EFFICIENCY consumption continued for a number ("QEHS") system to take a holistic approach In line with our environmental policy, of amenities such as on-site worker to environmental management and quality we constantly look for ways to improve dormitories, pumps, appliances and and safety in our construction business. our operations’ energy efficiency. In our housekeeping. On-site diesel generators Our ISO 14001 certified Environmental construction business which accounts were also used during this period to Management system ensures accountability for most of our energy consumption, we support some essential maintenance and and continuous improvement at par with continue to drive several energy-saving amenities. For these reasons the same international standards. initiatives across our projects. Some of the period’s energy intensity was higher due to ongoing efforts are as follows: lower gross floor area ("GFA") completion, We have adopted reduction targets for • Use energy-efficient LED Lights; which resulted from lockdown and later energy, emissions, water and waste. Our • Use 2-tick energy-saving air- a shortage of workforce caused by the teams closely monitor the performance by conditioning units; COVID-19 restrictions. collecting and reviewing environmental data. • Maintain air-conditioning temperatures at 25ºC; Our Ongoing Performance We also engage our key stakeholders, • Reduce the number of power generators Annual Target in 2020 including employees, building authorities, to reduce diesel consumption; contractors and suppliers, to seek • Deploy energy-saving office printers; Energy feedback and suggestions to improve our • Employee awareness campaigns to < 0.38 GJ/m2 0.71 GJ/m2 environmental performance. save energy; Emissions • Use of window blinds to minimise the < 34.92 kgCO2/m2 53.70 kgCO2/m2 heat from outside; • Instal motion-detection sensors We also track electricity consumption in our in toilets to switch on or off lights head office building, including the common automatically; and area but excluding the tenants’ use. We • Noise meter powered by a solar panel. measure and report the associated carbon emissions as well. 48 Building Resilience
GHG EMISSIONS materials that meet the Green Mark criteria GREEN MARK Greenhouse gas emissions in our established by BCA or have the Singapore We integrate several Green Mark operations arise from the use of electricity Green Label. elements in our projects and use Singapore and fuel. We monitor carbon dioxide ("CO2") Green Label products to reduce the emissions, the primary greenhouse gas Our materials use in the stated period is environmental impact. resulting from electricity and diesel and summarised below: regularly review our performance. Our Our projects feature recycling bins at efforts aim at reducing emissions intensity the void deck area of residential blocks, Quantity of Materials Used in our construction operations which covered bicycle parking lots, internal accounts for most of our carbon footprint. Material waterproofing, interlocking concrete pavers (tonne) 2018 2019 2020 and paving material, earth retention & We report Scope 1 direct emissions and slope protection material, subsurface Sand Scope 2 indirect emissions in line with 85,845 50,978 27,837 drainage cells, calcium silicate board for the GHG Protocol and the GRI Standards. false ceiling and protection of gas pipe, tile Our Scope-1 direct emissions from diesel grout, concrete kerb, internal skin coat, Cement refer to stationery combustion for power aluminium composite panels, roof and 42,935 25,489 13,918 generation at construction sites. Scope 2 gutter waterproofing, green-certified tile emissions are from purchased electricity. adhesive and polyurethane enamel paint Steel system to steelworks. 23,401 13,464 7,052 The total CO2 emission from building construction activities in 2020 was 2,511 WATER MANAGEMENT tonnes compared with 4,016 tonnes in We are committed to reducing water WASTE MANAGEMENT 2019. The absolute emission in 2020 consumption. We have implemented Our construction waste mainly comprises was lower due to a reduction in diesel policies and measures to ensure the non-hazardous waste. Our approach is consumption. Emissions intensity for the efficient and responsible use of water to reduce, reuse and recycle materials same period was 53.70 kgCO2/m2 and consumption at construction sites and the to minimise waste. We engage licensed 27.34 kgCO2/m2, respectively. The emission properties that we manage. Our policy is waste management contractors for the intensity was larger due to lower GFA to use water responsibly and implement safe disposal of our waste following the completion as the operations were affected conservation initiatives. We use water- applicable regulations. by the COVID-19 restrictions. efficient taps and fittings and dual flush closets with a 3-tick rating by the Public Total non-hazardous waste generated in Scope-1 direct emissions from diesel Utilities Board to save water. 2020 was 3,106 tonnes compared to 4,631 consumption accounted for 76% of our total tonnes in 2019. There was an increase CO2 emissions, i.e. 1,908 tCO2 at building Our measures include collecting rainwater in waste intensity as three projects construction sites in 2020. at construction sites to reduce the demand approached their completion stage and also for fresh water and reusing and recycling due to major demolition works carried out Our Scope-2 emissions of 603 tCO2 result water. A silty water treatment system at a private development project. from purchased electricity. installed at project locations helps prevent water contamination. Our practice of using BUILDING MATERIALS Our Ongoing Performance precast concrete has significantly reduced We monitor the use of building materials to Annual Target in 2020 on-site water consumption. ensure efficiency, productivity and waste. Construction Increasingly, we use precast concrete Waste walls, which improve productivity and HDB projects: reduce pollution at the construction site. < 30.00 kg/m2 52.78 kg/m2 We also strive to use sustainable building Private projects: < 40.00 kg/m2 120.11 kg/m2 Chip Eng Seng Corporation Ltd. Annual Report 2020 49
OUR ENVIRONMENT WATER EFFICIENCY POLLUTION CONTROL In 2020, there were 8 incidents of Our building construction sites practice We are committed to reducing noise, dust compounded fines amounted to $29,200 several ongoing water efficiency measures. and vibrations resulting from construction related to vectors and noise issues at Some of the initiatives include the following: activity, vehicles, heavy equipment and 5 of our building construction sites and • Harvesting rainwater to reduce the machinery at the construction sites. We at a development site. We have since demand for fresh water; follow regulatory guidelines and industry taken corrective measures to prevent the • Reusing and recycling water as much best practices for lowering pollution. recurrence of these problems. as possible; • Using PUB certified taps with 3 tick Our measures include continuous monitoring CIVIL INFRASTRUCTURE rating for water efficiency; of our construction operations and ensuring The Group extended its construction • Water-efficient closets with a dual flush; regular maintenance of the equipment business into civil infrastructure in • Using precast concrete, which and machinery to keep noise levels within December 2019 with the acquisition of significantly reduces on-site use of water; safe and permitted limits. We use precast CES_SDC Pte Ltd (“CES_SDC”) (formerly • Using only “Singapore Green Label” concrete panels fabricated offsite, which known as Sembcorp Design and cleaning products in canteens; and also helps mitigate noise at our construction Construction Pte Ltd). A design and build • Applying eco-friendly natural products sites. We implement measures to ensure construction service provider with an for toilet cleaning. that vibrations caused by piling and established track record in civil, industrial demolition do not exceed permitted limits. and utility infrastructure projects, CES_SDC offers a broad spectrum of engineering and Our Ongoing Performance construction services from tunnel boring Dust is a common issue at construction Annual Target in 2020 sites resulting from work involving to modular construction and can provide Water concrete, cement, wood, stone, and silica. customised solutions to meet the diverse < 0.90 m3/m2 2.50 m3/m2 We install fine mesh screens to stop dust needs of clients. from dispersing. We also use water sprays In 2020, our water consumption at building to control dust pollution. CES_SDC is committed to minimising construction sites was 116,755 m3 as its environmental footprint. In line with against 140,529 m3 in 2019. For the same We engage with the surrounding its commitment, CES_SDC has obtained period, water intensity was 2.50 m3/m2 communities to keep them informed of the ISO 14001:2015 for its environmental and 0.96 m3/m2, respectively. The water our upcoming construction schedules and management system. intensity was higher due to lower promptly address any public pollution- GFA completion affected by COVID-19 related complaints. Our project team gets in The environmental performance data also disruptions. Our water intensity target for touch with the neighbouring communities, includes joint ventures where CES_SDC has the building construction business remains including building owners and managing equal or more than 50% equity participation at 0.90 m3/m2. agents, before the project starts. The is as follows: contact numbers and email addresses of WASTEWATER MANAGEMENT key personnel such as the project manager Performance Summary 2020 We are committed to reducing and and environmental control officer are responsibly managing the wastewater runoff shared with them as a direct feedback Carbon emissions (tCO2) 1,279 from our construction sites. Our measures channel for any environmental issues. We Diesel consumption (litre) 152,099 include prevention and control of water also post the contact information at the contamination from oil, chemical drums existing HDB blocks lift lobby notice board Electricity used (kWh) 2,141,331 and bulk storage tanks. We implement the and project boundary hoarding. Energy used (GJ) 13,580 required earth control measures to manage silty discharge due to rain. Wastewater is REGULATORY COMPLIANCE Waste (tonnes) 301 collected, treated and discharged according Complying with applicable laws is a top Water consumption (m3) 74,707 to environmental regulations. priority for the Group as non-compliance may result in penalties, stop-work order, We also reuse wastewater and rainwater and reputation loss. To ensure compliance, to wash vehicles before leaving the we regularly review environmental and construction site, keeping the roads clean. public health regulations to update and implement the necessary policies and practices. Our target remains to have zero incidents of environmental, health and safety related fines. 50 Building Resilience
HOSPITALITY The Group ventured into the hospitality industry in 2015 with its first hotel Park Hotel Alexandra operated by Park Hotel Group. We work closely with our hotel operator partners to maintain high environmental standards at our hotel properties. We monitor our properties’ environmental performance against key indicators. Environmental performance data for Park Hotel Alexandra, Singapore, is presented below. Performance Summary 2018 2019 2020 Carbon emissions (tCO2)(1) 1,668,373 1,657,128 1,470,329 Carbon emissions intensity (kgCO2/room night) 12.62 11.67 14.77 Electricity consumption (kWh) 3,966,651 4,056,616 3,599,336 Energy consumption (GJ)(1) 14,280 14,604 12,958 Electricity intensity (kWh/room night) 29.99 28.58 36.17 Water consumption (m3) 45,244 46,101 27,514 Water intensity (m /room night) 3 0.34 0.32 0.28 Note: (1) Carbon emissions and energy consumption refer to Scope 2 (purchased electricity). ENVIRONMENTAL TARGETS Our ongoing annual targets at Park Hotel Alexandra, Singapore are as follows: • Electricity intensity: 28.47 kWh/room night • Water intensity: 0.32 m3/room night EDUCATION The Group entered the education business in 2018 through its wholly-owned subsidiary Sing-Ed Global Schoolhouse Pte Ltd (formerly known as CES Education Pte Ltd). In line with the Group’s sustainability approach, we are committed to minimising our schools’ environmental impact. Environmental performance data for our schools in Singapore that have operated substantially during the reported years are presented in the following table. Performance Summary 2019 2020 Carbon emissions (tCO2)(1) 170,258 175,812 Carbon emissions intensity (kgCO2/m2) 27.41 14.98 Electricity consumption (kWh) 416,780 430,384 Energy consumption (GJ)(1) 1,500 1,549 Energy consumption intensity (kWh/m2) 67.09 36.67 Water consumption (m3) 4,890 5,836 Water consumption intensity (litre/population/day)(2) 11.34 13.91 Notes: (1) Carbon emissions and energy consumption refer to Scope 2 (purchased electricity). (2) Water consumption intensity = Annual water consumption divide by (school population x no. of days in a year); school population includes no. of students and no. of staff Chip Eng Seng Corporation Ltd. Annual Report 2020 51
OUR ENVIRONMENT ENVIRONMENTAL TARGETS The ongoing annual targets adopted at our schools in Singapore are as follows: • Energy intensity: 67.00 kWh/m2 for the next 3 years • Water intensity: reduce by 15% over 3 years to 11.80 litre/population/day by 2023 ENVIRONMENTAL PERFORMANCE Performance data in the following charts refer to our Building Construction Division unless indicated otherwise. The amount of energy and water used and the amount of waste and wastewater generated varies with construction phases. The annual consumption trends may not be entirely comparable as energy and water consumption tend to be higher during a project’s middle stages. Carbon Emissions - Carbon Emissions Intensity - Sources of CO2 Emissions - Building Construction Site (tCO2) Building Construction Sites (kgCO2/m2) Building Construction Sites 2020 4,193 4,106 2,511 24.39 27.34 53.70 76% 24% Purchased Electricity 2018 2019 2020 2018 2019 2020 Diesel Energy Consumption - Energy Intensity - Energy Consumption by source - Building Construction Sites (GJ) Building Construction Sites (GJ/m2) Building Construction Sites 2020 57,181 56,462 33,061 0.33 0.38 0.71 84% 16% Purchased Electricity 2018 2019 2020 2018 2019 2020 Diesel 52 Building Resilience
Electricity Consumption - Diesel Consumption - Waste (non-hazardous) - Building Construction Sites (kWh) Building Construction Sites (ML) Building Construction (tonne) 1,504,841 827,756 1,476,197 1.34 1.39 0.72 5,499 4,631 3,106 2018 2019 2020 2018 2019 2020 2018 2019 2020 Waste (non-hazardous) Intensity - Water Consumption - Water Consumption Intensity - Building Construction (kg/m2) Building Construction Sites (m3) Building Construction Sites (m3/m2) 31.98 31.53 66.41 184,741 140,529 116,755 1.07 0.96 2.50 2018 2019 2020 2018 2019 2020 2018 2019 2020 Electricity Consumption - Carbon Emissions - Water Consumption - CES Centre (kWh) CES Centre (tCO2) CES Centre (m3) CES Head Office CES Head Office 10,305 12,186 9,017 Common area and tenants Common area and tenants 1,386,157 1,325,587 1,124,769 583 542 459 1,267,019 1,200,748 533 491 1,002,846 409 119,138 124,839 121,923 50 51 50 2018 2019 2020 2018 2019 2020 2018 2019 2020 Chip Eng Seng Corporation Ltd. Annual Report 2020 53
OUR PEOPLE We are committed In 2020, females accounted for 44.6% of our full-time employees and held 34.9% Our Ongoing Performance to promoting a safe, of supervisory and managerial positions. Annual Target in 2020 inclusive and fair Among the new hires, the proportion of Employee Turnover – 22.7% against females was 47.8%. workplace where our To maintain below the national the national construction sector people can realise their TRAINING average for the average of 16.4% We provide ongoing training and full potential. development opportunities to ensure our construction sector people have the right skills to perform their The education division is a relatively new Our people are our most valuable asset. job effectively. Investing in our people’s business segment which commenced Our ability to attract and retain talented development is also crucial for retaining operations in the second half of 2018. In people to deliver high-quality projects and and developing talent to support our 2020, its turnover was 32.2% compared services is crucial to our success. Hiring business growth. to 37.7% last year. The turnover rate for and retaining competent, qualified and male and female employees was 18.8% and skilled employees is vital for our business. Our Ongoing Performance 35.6%, respectively. Our human resource policies promote Annual Target in 2020 a professional working environment By age group, the education division’s built on mutual respect and trust. In our Average Training turnover rate is as follows: construction business, ensuring safety at Hours 43.6% for under 30 years, 26.5% for 30-50 project sites remains our foremost priority. 8.6 hours/ 8.4 hours/ years, and 38.2% for employees aged above employee employee 50 years. EMPLOYMENT As of the end of 2020, our Construction, In 2020, our employees attended training, 37.7 32.2 Property Development, Corporate and workshops and conferences covering a Education Division’s Education Divisions in Singapore employed wide range of topics throughout the year. Turnover Rate (%) 680 full-time employees and 41 part-time Training topics included online end-user 2019 2020 employees. During the year, we hired 276 cybersecurity, first aid, safe management, new employees. The average age of our workplace safety, construction productivity, 35.6 employees is 41.2 years. health and environmental management, Turnover Rate 18.8 sustainability reporting, quality and by Gender (%) In addition, we employed 92 employees productivity, lean construction, best Male Female at Park Hotel Alexandra, Singapore, practices for green and gracious builders, which is part of our hospitality business. earth control measures, construction 43.6 38.2 Female employees occupied 42.0% of the regulations, service excellence, virtual 26.5 Turnover Rate managerial and supervisory roles in 2020 design and construction, contract by Age (%) compared with 40.3% in the prior year. management, project management, child < 30 30 - 50 > 50 Years Years Years first aid, ethical business conduct, latest We also employed 348 foreign construction developments in construction law, and workers who were on fixed-term contracts. personal data protection. Currently, there is no comparable national The Ministry of Manpower ("MOM") average benchmark available for the regulates the hiring of foreign construction EMPLOYEE TURNOVER private education sector. Our goal is to workers in Singapore. Employee retention is an integral part of improve the retention rate in our education human resource management. Our target division by taking the necessary measures. DIVERSITY is to maintain our employee turnover rate We promote an inclusive work culture. lower than the relevant national average. In PERFORMANCE MANAGEMENT Diversity is reflected in our workforce, 2020, our turnover rate for the construction, Our performance management policy which comprises people from different property development and corporate covers all permanent employees who backgrounds, nationalities, ethnicities, divisions in Singapore was 22.7%, higher participate in performance appraisal twice skills and experiences. We provide than the national construction industry a year. The performance evaluation helps equal opportunities in employment, average rate of 16.4% (Source: Labour determine employees’ training needs and remuneration, training and promotion Market Survey 2020 (Q3)). develop career plans. based on merit and performance. 54 Building Resilience
contributor to major injuries for the year, EMPLOYEE BENEFITS according to the Workplace Safety and Actual Leading Indicators Average AND WELFARE Health Report 2019. (Per Site) (Per Site) We provide competitive compensation, bonuses, performance-based wage At Chip Eng Seng, we are committed to Management Site 17 increments, and various benefits to workplace safety and health excellence. Safety Walks attract and retain talented employees. Safety-first culture is an integral part of Site Safety Committee Our full-time and part-time permanent our business model. We are committed 91% Average Attendance employees are entitled to annual leave, to maintaining high safety standards to enhanced child care leave, marriage ensure a safe workplace for our workers Site Safety 97 leave, medical and hospitalisation leave and contractors. We have built a strong Inspections/Audits and compassionate leave. The insurance safety culture across the Group ranging benefits comprise Group Health Insurance, from top-level management to the site Safety Promotions 13 travel insurance and Work Injury supervisors and workers. Compensation Insurance. Staff welfare Notes: benefits include the annual company Hazard identification, risk assessment Management Site Safety Walk = A safety dinner, recreation activities, festival and risk control form the core of our walk is when a line manager or supervisor gatherings, bereavement donations and safety measures. We comply with observes work taking place, inspects wreaths and newborn baby gifts. safety regulations and align our work the workplace, and discusses safety processes with industry standards for performance with staff based on their UPGRADING WORKFORCE SKILLS safe construction. Our QEHS system observations. A safety walk is designed Our skills improvement programme helps ensures that workers and contractors to help employees understand safety Basic-Skilled foreign construction workers follow stringent standards and operating in real terms. By conducting a safety upgrade to the Higher-Skilled R1 category procedures for safety and health at each walk, management can point out unsafe following the criteria set out by the MOM. construction stage. practices when they occur in the real Investing in upgrading skills means higher work environment, providing employees productivity and a lower levy that we need Our employees receive ongoing safety with safe alternatives and a means to to pay. Also, Higher-Skilled workers can be briefings and training to understand the understand why their practices are unsafe. employed for an extended period of up to safety risks inherent in various construction 26 years instead of just 14 years for Basic- activities and learn safe work practices. Site Safety Inspection/Audits = A safety Skilled workers. inspection is a formalised process of In 2020, 71 Higher-Skilled Our target is to maintain a zero accident documenting safety hazards and unsafe R1 construction workers workplace. work practices at site. A safety audit is a completed their Continuing formalised process which assesses the Education and Training, workplace’s health and safety procedures Our Ongoing Performance amounted to 290 hours Annual Target in 2020 to determine compliance and assess in total. weaknesses in your safety program. Zero reportable 3 reportable incidents incidents Safety Promotion = A set of means, Training will help them keep up with the processes and procedures that are used latest code and regulations of the trade, new The construction business division has to develop, sustain and improve safety installation methods, equipment, materials, a robust health and safety system and through awareness raising and changing and tools leading to better work practices, programmes. Throughout the year the health behaviours. Safety promotion includes quality, productivity, and health & safety. and safety teams at project sites performed the development of products and actions site safety walks and safety promotions such as reports and technical publications, PROMOTING WORKPLACE while corporate health and safety managers bulletins, leaflets and posters, audio-visual SAFETY AND HEALTH carried out scheduled inspections and material, toolkits, manuals and guides, Workplace safety remains a critical non-compliance issues are reported during social media and e-applications, and also issue for the construction sector. The monthly safety committee meeting. conferences, safety events, roadshows and construction industry accounted for the campaigns. Safety promotion is also about largest share of fatal injuries of any During the year, 14 project sites in the sharing best practices from the authorities industry in Singapore, with 9 fatal injuries construction division which also included a and the industry. Safety promotion can reported in 2020. With 74 incidents, the factory at Senai, Malaysia were subjected to also contribute to the dissemination of construction sector was the second-largest the health and safety inspections. regulatory developments. Chip Eng Seng Corporation Ltd. Annual Report 2020 55
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