We value and seek to empower our people and communities. We believe in creating a values-based and performance-led culture at Sembcorp, where health and safety is an integral part of our everyday business and culture. Through active engagement and partnerships, we aim to make a lasting positive impact on our communities.

Why this is material
The nature of our business means that any lapse in health or safety protocols may result in direct or indirect impact on our employees, contractors, customers and communities.

Our approach
We recognise the right to life, health and safe working conditions, and are committed to reducing health and safety risks in our operations. We believe that most incidents are preventable. It is our responsibility to ensure that our employees are equipped with the right skills and tools to work safely. We also require our contractors to comply with our health and safety requirements to prevent and manage health and safety risks.

We aim to provide our customers with safe and reliable products and services. Quality assurance and compliance testing are done at various points of production. Our monitoring and control regime includes detailed inspections as well as predictive and preventive maintenance of critical equipment, parts and instruments.

In line with our responsibility to provide a secure working environment, we closely monitor and assess security threats and potential risks to our operations and assets.

Occupational health and safety fall under the oversight of the Group HSSE division, who provides updates to the board’s Risk Committee. The division is guided by the Group HSSE Management Framework. Performance incentives for all employees take into account the Group’s overall health and safety performance for the year.

Product safety and reliability are overseen by the chief executive officers of various markets, who are bound by regulatory and contractual terms to meet product and service specifications and standards.

Physical security falls under the oversight of the Group HSSE division, whose work is guided by the Group Security Management System.

To find out how we enhanced process safety management in our operations, please refer to our Spotlight webpage.

Why this is material
Having a competent, highly motivated and performance-led workforce is key to ensuring the success of our business. Our people play a vital role in ensuring our business stays relevant by delivering on our transformation goals.

We identified the following areas of focus:

- Employee engagement
- Employee development
- Compensation and benefits
- Employee wellness
- Human rights and labour standards
- Diversity and equal opportunities

Our approach
Employee engagement
Our leadership communicates with employees through various channels including dialogues, town halls, video conferencing, newsletters and email circulars. We conduct an employee engagement survey at least once a year. Survey results are analysed and targeted action plans are developed to address areas of concern, with local human resources teams responsible for their implementation.

Employee development
Our talent strategy is built upon talent acquisition and development. We are committed to equipping our people with the capabilities and know-how to achieve their fullest potential, while enabling them to remain relevant in an evolving operating landscape. In the event of organisational restructuring, transition assistance is provided to facilitate continued employability and the management of career endings.

Talent strategy and development as well as succession planning are supported by our:

- Talent review and succession planning framework, which includes the tracking of human capital risk supported by succession planning for key roles across multiple levels
- Talent Development Framework
- Lead, Appraise and Develop (LeAD) performance management system
- Sembcorp Academy learning platform 

To find out how the Sembcorp Academy supports continuous learning, please refer to our Spotlight webpage.

Compensation and benefits
We have in place a competitive remuneration and reward system based on the key principles of equity and meritocracy. Our salary levels are reviewed regularly and benchmarked against local markets, as well as data from global market surveys and consultancy firms. Where applicable, we also undergo negotiations with employee unions.

Annual variable bonuses for all employees are based on business and individual performances, which are measured against targets that were previously agreed upon with their supervisors. Share plans are also available for eligible employees.

Our employee compensation framework is shared with and approved by the board’s Executive Resource and Compensation Committee.

Employee wellness
We adopt a holistic approach to workplace wellness encompassing the physical, social and psychological well-being of our employees. Our workplace wellness plans are supported by:

- A dedicated budget for activities that encourage employee well-being and team bonding
- Employee-led committees that organise a range of recreational and wellness activities
- Mandatory medical screenings for employees whose work may include occupational health hazards and voluntary free annual health screenings for all employees in most markets

Human rights and labour standards
Our Human Rights Policy sets out our principles with respect to human rights and labour standards, including the prohibition of forced or child labour and freedom of association.

Our Code of Conduct sets out key principles on fairness, opportunity, non-discrimination, dignity, respect and non-harassment.

Diversity and equal opportunities
Our principles with respect to diversity are set out in our Human Rights Policy and Code of Conduct. Recruitment, promotion, rewards and career development opportunities are based on merit, without discrimination against age, race, gender, sexual orientation, religion, family or marital status, or any other status protected by the laws or regulations in the locations where we operate.

We also offer our employees placements in different markets to encourage greater exposure and to diversify their skills and experience. In all our markets, we comply with and support local government regulations on local employment.

Our practices in these focus areas fall under the oversight of the chief corporate and human resource officer who is supported by the Group Human Resources, Group HSSE, Group Internal Communications and Group Sustainability divisions.

Why this is material
Sembcorp’s long-term success is based on being a valued partner to the communities we serve in. We recognise that the nature of our business may result in varying degrees of economic, social and environmental impact, in direct or indirect ways, on the communities in which we operate.

Our approach
We believe we can contribute to the sustainable development of our communities through our operations and community investments. Our local operations are best placed to understand the unique needs of the community and forge partnerships with local stakeholders. As such, markets manage community assessments, engagement programmes and contributions locally, while aligning to group-level strategic frameworks and guidelines.

The Group Sustainability division oversees community-related issues. For our operations that are located among rural communities, we have dedicated community relations teams that regularly engage with the community. Community investments undergo a counterparty due diligence assessment conducted by the Group Ethics and Compliance division. Quarterly global community investment meetings are held to communicate plans and policies internally.

For more information on how we supported the community through the pandemic, please refer to the Sustainability Report.

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