SUSTAINABILITY REPORT 2020 - Chip Eng Seng Corporation Ltd - Chip Eng Seng ...

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SUSTAINABILITY REPORT 2020 - Chip Eng Seng Corporation Ltd - Chip Eng Seng ...
SUSTAINABILITY REPORT 2020
Chip Eng Seng Corporation Ltd

36   Building Resilience
SUSTAINABILITY REPORT 2020 - Chip Eng Seng Corporation Ltd - Chip Eng Seng ...
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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