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. Through engagement and partnerships, we aim to make a lasting positive impact on our communities.

Health and Safety
Sembcorp develops and operates power and water plants as well as other facilities, where extensive health and safety precautions are required. It is our responsibility to ensure that globally, all our employees and contractors are competent and equipped to work safely. We recognise our duty of care to provide a safe workplace for those who step into our premises, and we work hard to fulfil that duty. The health and safety of our customers is also a key priority – especially in our municipal water operations, where any lapse in health and safety protocols can result in a direct impact on people in the community.

The industry we operate in is becoming increasingly complex due to market disruptions by technological advancement, climate change and resource scarcity. We have responded to these complexities by repositioning our businesses and organisation, pursuing growth strategies and building new capabilities. Our employees play a vital role in ensuring we achieve our business strategy and goals. There is therefore a critical need to develop and retain a capable, highly motivated and adaptable workforce to navigate this changing landscape. Of the issues relating to our people, our materiality review process has identified the following to be important areas of focus:
• Employee development
• Employee compensation and benefits
• Employee engagement
• Employee wellness
• Diversity and equal opportunities
• Human rights and labour standards

Sembcorp’s long-term success is based on being a valued partner to the communities we operate in. While Sembcorp’s businesses play an important role in supporting economic development and improving living standards in our communities, we recognise that there are social and environmental impacts on the communities around us as a result of the development and operation of our plants. Therefore, as part of our licence to operate, we aim to contribute to the sustainable development of our local communities through engagement and partnerships, and investing in initiatives that make a lasting positive impact.

Health and Safety
Occupational health and safety
Our vision is to be an organisation with a proactive health and safety culture. We are committed to working towards the goal of zero fatalities and injuries in our workplace, with a workforce that puts safety first. We benchmark our health and safety performance against relevant global industry safety statistics, such as the International Oil and Gas Producers Global Safety Performance Indicators, and aim for progressive improvement. As our operations grow in different markets, the security of our staff and assets is also becoming increasingly important for us to manage. In response to this, we have adopted a phased approach in the development of our security management programme, starting with a focus on projects under development.

We have put in place structures and processes to meet our goal, including:
• Board review
• Oversight by the board’s Risk Committee
• Leadership by our Group President & CEO
• A Group Health, Safety and Environment (HSE) management system framework comprising:
   - Group HSE Policy
   - Group HSE management system guidelines and standards

The Group HSE management system framework provides guidelines and standards detailing expectations and principles relating to different aspects and activities that take place at a plant or site. It is further supported by Sembcorp’s 10 Elements for Good HSE. We value lives and are committed to safety, and believe that this is a responsibility shared by all employees across the organisation. Health and safety key performance indicators have been embedded into relevant employees’ scorecards, and the award of performance incentives for all employees specifically takes into account the Group’s health and safety performance for the year.

Our Group Health, Safety, Security and Environment (HSSE) assurance is aligned with the Integrated Assurance Framework (IAF) that we are transitioning to. The IAF adopts a three lines of defence (LOD) approach that sets in place a robust accountability system in order to ensure that there is continual improvement.

For more information on our IAF, please refer to the Governance page.

• First LOD – regular site-level HSSE inspections and evaluation of HSSE control effectiveness are conducted at all plants and sites as part of our assurance regime

• Second LOD – on-site operations reviews conducted by subject matter experts from other markets and the Global Operations department evaluate the effectiveness of the plants’ or sites’ HSSE controls. On an annual basis, a validation and verification schedule is formulated using an internal risk-based assessment to ensure that the assurance exercise will focus on higher risk areas. Plants or sites with higher risk ratings will be given priority in the assurance exercise. The results of the assurance then form the basis for the development of improvement plans at the site

For more information on our on-site operations reviews, please refer to the Performance and Data Commentary report in Our Performance page.

• Third LOD – the integrated audit provides independent assurance to ensure compliance with our operating standards

Providing our employees with relevant HSE and technical capability development ensures that we have competent safety practitioners and line managers who support safe operations. Training plans are tailored to the particular operation or site’s risk profile and local conditions, and is conducted on an ongoing basis. Examples of operations-specific training include defensive driving at our solid waste management unit as well as project commissioning and construction orientation for project development teams. An annual global HSSE workshop is also held as a platform for the learning and sharing of corporate initiatives and best practices from our different operations.

Product responsibility: safety and quality
Product safety and compliance is a priority as non-compliance can result in serious health, safety and operational issues for our customers, many of whom depend on us for basic utilities or require our products for their industrial processes. Compliance testing of our products is done at various stages, from manufacturing to distribution and supply. We have a robust maintenance and monitoring regime in place, which includes stringent inspections and preventive maintenance of all critical instruments including meters and sensors at both our and our customers’ facilities. We also conduct regular laboratory tests to meet regulatory requirements and ensure that the water we produce is safe for our customers and end users.

Our operations span 15 countries across five continents where labour laws, regulations, employment codes and practices differ widely. All our local human resource policies comply with local laws.

Our human resource practices are guided by the following:
• Oversight by the board’s Executive Resource & Compensation Committee
• Oversight by the Senior Leadership Council
• The Sembcorp Mindset and Leadership Competencies
• Our Code of Conduct
• Our Human Rights Policy
• Our Harassment Policy
• Our Grievance Handling Policy

Human capital risk is monitored as part of our key risk indicators and reported biannually to the board’s Risk Committee.

Employee development
As part of equipping our workforce to respond effectively to change and disruptions in our operating context, we reviewed our approach to workforce management. A key outcome from this review was the development and launch of the Sembcorp Mindset and Leadership Competencies.

The Sembcorp Mindset determines who we are and how we should operate our business. Known as the five Cs – Creative Insight, Committed, Connected, Courageous and Curious – they represent our promise to internal and external stakeholders and are critical to support our business strategy as we adapt to changes in our operating context. The new Leadership Competencies define the key characteristics of a Sembcorp employee. Underpinning each of the above competencies are anchor behaviours that we have identified as critical to drive organisational performance and build future business leaders.

Employee development is a key lever of Sembcorp’s transformation and is underpinned by the Leadership Competencies. With our training programmes, we aim to reskill employees to be future-ready by driving behavioural change. We are focused on building our internal leadership pipeline as part of succession planning. Part of supporting Sembcorp’s transformation efforts also involves building our digital capabilities to improve the efficiency of our business, the security of our and our customers’ data, and our assets and operations.

We also ensure that local talent are placed in senior management roles in each market we are in. This is key to improving our ability to understand local market conditions, while supporting capability building in the local communities.

Effective performance management is also a critical component of Sembcorp’s business transformation. It involves aligning our employees’ competencies to our new business direction, as well as recognising their contributions. This is facilitated through our newly launched performance management system LeAD (Lead, Appraise, Develop).

Employee compensation and benefits
To attract, motivate and retain employees, Sembcorp’s remuneration and reward system is market competitive and performance-based. To determine salary levels and benefits, regular reviews and benchmarking are conducted against local standards and data from global market surveys and consultancy firms. In countries where there is a minimum wage policy, Sembcorp pays above the minimum wage.

Sembcorp adopts an equal pay policy where rewards are based entirely on merit and performance. Salary increases are based on individual performance and benchmarked against the external market as well as negotiations with employee unions and guidelines issued by the local government. Annual variable bonuses are based on the Group’s performance as well as employees’ performance against individual targets set jointly with their supervisors.

Providing an engaging employee experience
Employee engagement
As part of employee engagement, our senior leaders deliver consistent communications about the company’s vision, strategy and progress. Quarterly staff communication sessions are conducted face-to-face where possible and via webcast to a global audience. Each session is also followed by an open dialogue where employees can send in their questions and feedback. Additionally in Singapore, we hold monthly “Meet the Leaders” sessions for our senior leaders to share about their personal leadership experiences and upcoming projects, as well as for employees to engage with them in an informal setting.

Over the course of the year, organisational updates, internal campaigns as well as business milestones are communicated via channels such as briefings and workshops, emails, the intranet and other interactive internal digital platforms.

Employee wellness
We recognise the impact of wellness on our employees’ overall effectiveness and have set aside a dedicated wellness budget in countries where we have major operations, such as Singapore, China and India. The budget is available for department heads to use for activities that encourage employee well-being and team bonding. We also provide Group Term Life and Group Personal Accident coverage in all our key markets. Besides mandatory medical screenings for employees potentially exposed to occupational health hazards, voluntary annual health screenings are available free of charge to all employees in Singapore, China, India, Oman and the UAE.

In 2018, we launched the Business Psychological Resilience Programme (B-PREP) in Singapore. B-PREP aims to provide employees with a safe, supportive and caring environment to seek help when exposed to critical incidents that impact them emotionally and psychologically.

Around the world, employee-led committees within our operations organise a range of recreational activities as well as nutrition and stress management programmes to support employees’ physical and mental well-being.

Promoting a fair and equitable work environment
Diversity and equal opportunities
Sembcorp is committed to promoting a fair and equitable work environment for all employees. We believe all employees should have the opportunity to thrive in a diverse workplace free from harassment. We recruit, promote, reward and provide career advancement and development opportunities based on merit and without discrimination on the basis of age, race, gender, sexual orientation, religion, family or marital status. Our Senior Leadership Council is represented by more than five different nationalities and our global workforce includes people from over 35 nationalities.

Human rights and labour standards
Our Human Rights Policy defines our responsibility to ensure the highest respect for human rights and the company’s expectations of our workers and business partners. We are committed to uphold and respect the spirit of the UN Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. We are also guided by the UN Guiding Principles on Business and Human Rights. Our Code of Conduct sets out our stance on fairness, opportunity, non-discrimination, dignity, respect and harassment. We abide by the Employers’ Pledge of Fair Employment Practices under Singapore’s Tripartite Alliance for Fair and Progressive Employment Practices.

We do not hire forced or child labour in our operations. We abide by local laws wherever we operate. Our Human Rights Policy states that Sembcorp employees are entitled to practise freedom of association and to be covered by collective bargaining agreements in the workplace, within the regulatory boundaries of each of the jurisdictions. We hold constructive ongoing engagements with employee unions in our various operations. In countries where our operations are covered by collective agreements, we abide by the terms stated in these agreements, including those relating to minimum notice periods. Procedures for grievance handling are also specified in the agreements. Where collective agreements do not exist, we abide by the terms stated in employment contracts.

Our grievance mechanisms are readily available and transparent. We strictly prohibit any form of retaliation against an individual who raises a grievance in good faith. The grievance procedure sets out our approach for the fair handling of employee grievances, and employees have confidential channels to submit feedback.

Our Grievance Handling Policy complements the group-wide Whistle-blowing Policy, which encourages all employees to report any possible improprieties on a confidential basis, without fear of recrimination. The company has an easily accessible whistle-blowing portal, and employees may also provide feedback via email or phone. The right to a work environment free from harassment is part of our Human Rights Policy. In the event of harassment, we ensure that remediation is undertaken in line with our Grievance Handling Policy.

As we build successful and sustainable businesses, societies and communities benefit. Our operations generate employment, contracts for local suppliers and tax revenues for governments and result in infrastructure development in our host communities. The direct economic value generated and distributed by our businesses can be found on below. We also recognise that our operations bring changes to our communities and can have positive or adverse environmental and social impacts that vary across our operations.

As a company with operations across five continents, we understand first-hand how the needs of one community can be very different from another. We believe that our local operations are best placed to not only understand the needs of the community, but also forge partnerships with local stakeholders. Therefore, while the Group provides the strategic framework, tools and guidelines to ensure consistency and acceptable standards, community assessments and engagements as well as contributions are managed at the local level.

Assessment and engagement
Our assessment and engagement of the community is guided by our Group Stakeholder and Community Engagement Policy as well as our Group Community Grievance Management Policy. Environmental and social impact studies are carried out in accordance with international and / or national standards for major new projects and expansions. These studies typically include social management plans that are implemented by the operations teams through the various stages of a site’s development.

Community investment
Sembcorp’s global Corporate Social Responsibility (CSR) Framework provides a strategic and consistent approach for our charitable contributions and community investments. We focus on fostering environmental stewardship and improving quality of life for the communities we are in.

Our CSR Framework aligns the tracking and reporting of our community contributions with guidelines set by the LBG (formerly known as the London Benchmarking Group). This allows us to account for our total community giving using standard definitions and valuations, and helps us ensure that the contributions recorded are meaningfully spent on community investment activities.

Key programmes
 The Sembcorp Water Initiative
In many of the emerging markets where we have operations, communities surrounding our sites lack access to clean water. The Sembcorp Water Initiative was established in 2013 to address this need. This is aligned with SDG 6 (Clean Water and Sanitation), one of the two priority SDGs that Sembcorp has adopted. Under the initiative, we work with local authorities to implement solutions or develop facilities to improve access to water for communities in the immediate vicinity of our operations. To date, the Sembcorp Water Initiative has been launched for communities in Quang Ngai and Nghe An in Vietnam, where we are developing urban development and power projects; in Andhra Pradesh in India, where we have two thermal power projects; and in Myingyan in Myanmar, where we have an Independent Power Plant. So far, these initiatives have benefitted more than 70,000 people and brought these communities closer to meeting targets under SDG 6 to achieve access to safe drinking water.

 The Sembcorp Garden City Fund
The Sembcorp Garden City Fund was established in 2010 to support the conservation of Singapore's natural heritage, in line with SDG 11 (Sustainable Cities and Communities), one of the supporting SDGs that Sembcorp has adopted. Specifically, we address SDG 11 by strengthening local efforts to protect and safeguard Singapore’s natural heritage. Through the fund, we sponsored the establishment of the Sembcorp Forest of Giants, a living gallery of rare giant tree species under threat. The fund has also supported public green education programmes such as the Festival of Biodiversity. In celebration of Singapore's golden jubilee in 2015, Sembcorp pledged S$10 million through the fund to expand and enhance the Cool House in the National Orchid Garden at the Singapore Botanic Gardens – a UNESCO World Heritage Site. This is a temperature-controlled glasshouse where visitors can view rare and beautiful orchids from Asia, the Americas and Africa. The enhancements are targeted to be completed in 2019.

 The Sembcorp Youth Education Initiative
Sembcorp’s youth education initiative addresses SDG 4 (Quality Education) by providing opportunities for learners to acquire knowledge and skills needed to promote sustainable development. The Sembcorp-EMA Energy Challenge and the Singapore Junior Water Prize were established in 2014 and 2017 respectively, to give our youth exposure to the water and energy challenges faced by countries and governments, and inspire these bright young minds to consider a career in the energy and water industries. The Singapore Junior Water Prize is an annual national competition co-organised with Lien Foundation and Ngee Ann Polytechnic, and supported by Singapore's national water agency, the Public Utilities Board. It is open to students from secondary schools, integrated programme schools, junior colleges, Institute of Technical Education (ITE) and polytechnics, while the Sembcorp-EMA Energy Challenge is co-organised by Sembcorp and the Energy Market Authority (EMA) for students from ITE, polytechnics and universities. Winners have the opportunity to compete with international participants at the Stockholm Junior Water Prize. This year’s winning team went on to win the 2018 Stockholm Junior Water Prize. The two students, Caleb Liow and Johnny Xiao, developed a new method to produce reduced graphene oxide, a material that can be used to purify water, from agricultural waste products.

Sembcorp Gives Back
Sembcorp's operations all over the world actively contribute to a range of causes, whether in cash, in -kind or through our employees' time and expertise. Sembcorp encourages employee volunteerism by organising regular volunteering events, and by giving volunteers time off from work to help out with local worthy causes.


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