Environment at Leighton Contractors

Environment at Leighton Contractors

Environment at Leighton Contractors

A message from our Managing Director, Craig Laslett

Minimising our impact on the environment and enhancing it where practical is the responsibility of every person at Leighton Contractors, whether you’re in an office or on one of our projects.

The ‘Green Book’ provides us with a clear outline of our company-wide Environment strategy, establishing a platform for a more sustainable and successful future in relation to our environmental activities.

Our Environment strategy for 2013 – 2014 focuses on: Building a future that enhances people’s lives, safeguards the natural environment and contributes to a strong resilient economy Minimising the impact of our business activities on the environment and surrounding communities Promoting a culture of engagement and innovation in establishing operational environmental excellence to achieve energy efficiency Eliminating Level 1 environmental damage and systematically reducing Level 2 impact Today more than ever our clients, industry, governments and communities increasingly expect more from us in regard to the environment. We should be expecting and delivering more ourselves.

Together we must have a heightened focus on environmental controls and initiatives, including energy management and efficiency. I encourage each of you to support these from within your teams.

By applying the Green Book’s principles and strategy, I believe we can achieve a reputation of excellence for our environment management practices.

Craig Laslett Managing Director

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Contents Introduction 05 Environmental Management Structure

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The Leighton Contractors Operating Model

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Safety, Health & Environment Business Standards

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Environmental Management Systems 14 Environment Strategic Objectives 16

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Environment at Leighton Contractors

Our goal CONTRIBUTE TO AN ENVIRONMENTALLY SUSTAINABLE FUTURE. Our objective MINIMISE OUR IMPACT ON THE ENVIRONMENT IN WHICH WE OPERATE. Our current focus EMBED ENVIRONMENTAL PROCESSES WHICH MINIMISE OUR ENVIRONMENTAL IMPact.

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Introduction A stronger focus on environment.

Our experience tells us that we work in areas with high profile and high potential environmental risk. It indicates that with the growing size and diversity of our business and increasing performance expectations from our stakeholders, we require a more efficient and effective approach to managing Environment.

Our internal employee survey ‘Your Say’ indicates our people take environmental issues seriously and expect the company to as well.

Leighton Contractors is committed to building a reputation for excellence in environmental management, setting industry benchmarks and moving beyond compliance where possible.

This document outlines the framework in which Environment is managed within Leighton Contractors. It also provides an overview of our strategic objectives which are designed to address our short-term focus areas and our longer-term aspirations.

Our approach takes into account recent performance and previous strategies, the findings of major incident investigations, client and community expectations, and current environmental research.

Effective management of the environment is a commercial and ethical imperative and must be included in our everyday decisions and processes at Leighton Contractors. An enhanced reputation in Environment management can give Leighton Contractors a competitive advantage in winning and delivering work.

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Environment at Leighton Contractors

Environmental Management Structure Leighton Contractors’ Structure The Environment framework in which Leighton Contractors operates is consistent with the approach adopted

by Leighton Holdings Limited (LHL). This delineates the roles and responsibilities of LHL and the Group Operating Companies in managing and monitoring environment. The framework has the input and full commitment of the LHL Board and senior management.

Leighton Contractors is required to develop and manage its own specific business standards and processes under the direction and supervision of the Leighton Contractors Board and Executive Leadership Team (ELT).

In developing our approach, the company’s system is fully integrated with and optimised against, the scope of our operations and culture.

Safety, Health and Environment Organisational Structure

Leighton Holdings Limited (LHL)

Leighton Contractors SHE Board Committee

Leighton Contractors Board

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Managing Director

GM SHE

Executive Leadership Team (ELT)

Group SHE Team

SHE Executive

Group SHE Forums

Leighton Contractors Divisions

Operational SHE Managers

Leighton Contractors Business Units

Operational SHE Personnel

Projects/Mines/ Facilities

Projects SHE Managers

Environment at Leighton Contractors

The Leighton Contractors Operating Model - an Environment perspective Executive Leadership team

People & Capability

Safety, Health & Environment

Environment Etc.

People & Capability

Business Excellence

People & Capability

Procurement & Supply Management Corporate Affairs & Communications

Environment Etc.

Business Standards

Business Processes

Division Standards & Processes

Division Forums Coordination

Plant & Asset Management

Division

Strategic Outcomes

Core Purpose

Winning & Doing Work

‘Our Way’ Group Standards & Processes

Strategy & Business Planning

Coordination

Group Forums

Group

Areas

The way ‘I’ operate

Tools & Knowledge

Business Support & Shared Services

Divisional Leadership team

Leighton Contractors’ approach to Environment follows the hierarchy of business processes under ‘Our Way’, the company’s over-arching management system outlining ‘The way we operate’.

Our Way and Leighton Contractors’ Environment Management System.

The Leighton Contractors Operating Model defines the way we work together at Leighton Contractors. It identifies who takes accountability and responsibility and underpins our approach to Environment.

The Operating Model is expressed through Business Standards, Processes, Tools and Knowledge which are captured in Our Way.

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Our Way provides: A central repository of best–practice processes and tools consistent with the company’s values.

A standard, streamlined method of establishing integrated project management systems, reducing set–up time and ‘re–learning’ at project start–up.

A knowledge centre so that projects can build and pass on experience.

The Leighton Contractors’ Environment Management System is contained in Our Way. Our approach links the Group value of ‘respect for the community and environment’ and ‘The way we operate’

to SHE Business Standards and project Environment Management Plans (EMPs).

It provides a clear hierarchy of responsibilities cascading from the Group to Divisions and through to individual projects.

Key elements of our Environment approach: Our Values: including ‘respect for the community and environment’ as a key value.

The way we operate (see page 12): This covers Leighton Contractors’ commitments to achieve our objectives for Environment.

Executive Leadership Team (ELT) The role of the ELT in relation to the Leighton Contractors Operating Model is to provide leadership, give final approval of the group Business Standards and to provide advice and resolve any issues escalated to them in their area of the Operating Model.

SHE SHE is one of the core functions of the business and hence the Operating Model.

Group SHE Forums

SHE Executive Comprised of ELT members and divisional safety, health and environment leaders, this group forms and drives the SHE strategy across the business.

These forums consist of divisional and group SHE leaders.

Core Purpose

Strategic Outcomes

Business Standards

To be a trusted partner integral to our clients’ success. Through our diverse capabilities, we enhance people’s lives.

Minimise the impact of our business activities on the environment and surrounding communities.

Values - Leadership - Excellence

Develop and promote a culture of environmental excellence and innovation in our industry.

SHE Business Standards are developed through Group SHE forum process and this group acts as the conduit and model for similar Divisional forums, as well as providing advice to the SHE Executive.

SHE Business Standards (see page 13): These are mandatory standards that apply across the whole of Leighton Contractors and cover all business activities that have the potential to impact safety, health and environment. The SHE Business Standards outline the minimum expectations of Leighton Contractors.

Critical Risk Management: These minimum mandatory non negotiable deliverables will address critical environmental risk.

Divisional Environmental Systems: Divisions are required to have Environmental Systems in line with the Group framework.

Project Based Environment Plans: Every project must have its own Environment plan, meeting the requirements of the Divisional system and the specific needs of individual projects.

The Leighton Contractors’ Environment Management System (EMS) has been designed to ensure the company meets Australian and international environmental standard ISO:14001 and all appropriate state, federal and client accreditation programs.

Processes: Divisions will develop Environment processes in line with the Business Standards.

Tools & Knowledge: ‘Tools’ help the user execute the ‘how’ of the business and generate a record or evidence of action, while knowledge provides supplementary in-depth understanding of a specific process.

It also meets the environment standards set by LHL for all Group operating companies.

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Environment at Leighton Contractors

Our Values Safety and health above all else Respect for the community and environment Enduring business relationships Our people are the foundation of our success Achievement through teamwork

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Environment at Leighton Contractors

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Safety, Health & Environment (SHE) Business Standards As outlined earlier in this document, there are Safety, Health & Environment Business Standards.

These Standards are high-level documents that prescribe minimum requirements to be achieved by each Division at Leighton Contractors but without prescribing how each Standard is to be achieved.

This enables each Division of the company to have processes specific to their needs. All SHE Business Standards will be reviewed over the coming year to ensure they remain current to the issues faced by our business.

The SHE Business standards include: Environmental Management SHE leadership and commitment SHE planning and performance indicators SHE communication consultation SHE hazard identification, risk assessment and control SHE responsibility and authority SHE considerations for new projects Contractors and suppliers Management of hazardous materials and dangerous goods Training and competence Emergency preparedness and response Incident management SHE performance monitoring, measurement and reporting SHE reviews, audits, inspections and corrective actions Occupational Health and Hygiene These Standards are formally audited at a Group and Divisional level.

See Our Way for current listing of Business Standards.

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Environment at Leighton Contractors

Leighton Contractors Environmental Management Systems Each Division, in line with and linked to the Group framework, has developed and implemented its own Environmental Management Systems relevant to Divisional activities. This ensures Group Environmental Business Standards are met while at the same time allowing each Division to develop a system meeting specific Divisional needs.

This structure is modelled on accepted management system approaches and reflects the structure of ISO 14001.

All projects, mines and facilities develop environmental plans as required by the Group Environmental Management Systems.

Leighton Contractors Environment Management System

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Leadership

Policy & Planning

Implementation & Operation

Management Review

Measurement & Evaluation

Risk Management

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Environment at Leighton Contractors

2013-2014 Environment Strategic Objectives To ensure consistency and clarity between the Safety & Health ‘Blue Book’, and the Environment ‘Green Book’, many objectives are aligned.

1. Leadership, Commitment & Accountability Develop a culture of environmental leadership which is proactive, committed and accountable.

2. Risk Management Develop and embed practice focussed on critical risk controls.

3. Training, Competency & Development Increase awareness and understanding of the relevant critical environmental risks.

4. Innovation Implement and embed a system for capturing and rewarding environmental innovation.

5. Communication & Consultation Deliver a consistent, clear and communicable message that promotes an engaged workforce through shared values, attitudes and behaviours aligned with our Core Purpose.

6. Systems Increase the capacity of current business systems to deliver enhanced environmental outcomes.

7. Performance Monitoring Develop effective and efficient performance monitoring processes that promote informed environmental decision making.

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1. Leadership, Commitment & Accountability Strategic Objective: Develop a culture of environmental leadership which is proactive, committed and accountable.

Strong capability and leadership in the area of Environment is critical to achievement of our strategic objectives in this area.

Our leaders will set the tone for how Environment is perceived and prioritised.

The Leighton Contractors approach to leadership is based on defining and implementing leadership practices that demonstrate our values rather than just state commitment to values.

Environment features on the ELT agenda.

A program of integrated senior SHE leadership visits implemented at both the Group and Divisional levels.

Specific Environment Business Standard in line with ISO14001 and legal requirements.

Measurable environmental goals shall form part of personal objectives and performance appraisal for Leighton Contractors managers and relevant staff.

From the ELT, through each layer of management, senior management practices are vital in creating the required Functional and plant representation level of awareness, engagement and in all initiatives where benefits are action on environmental initiatives. obvious.

The following points summarise our Throughout 2013/2014 there will be planned approach to, and focus on, a focus on increasing the level of leadership throughout 2013, with a view leadership visibility and focus on to building on these platforms through environmental issues and initiatives. to 2014.

“For us leadership drives culture, drives performance and each of us as leaders has an important role to play if we’re to achieve our environmental strategy. We must embed sustainable practices and aspire to be excellent in everything we do and adhere to set environmental controls consistently across the company.”

Craig Laslett Managing Director

Our current commitment to leadership initiatives: The National Environment Network (NEN) meets quarterly.

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Environment at Leighton Contractors

2. Risk Management Strategic Objective: Develop and embed practice focussed on critical risk controls.

Our focus on avoiding Level 1 damage and the elimination of environmental incidents and the mitigation of impacts from our work requires a high level of risk management awareness. Achieving the required focus on risk management is dependant on hazard identification and risk assessment being integrated into the practices of every individual, in every Leighton Contractors’ workplace.

Our approach to risk management requires the identification of hazards that may lead to a Level 1 environmental incident. A Level 1 incident is one in which environmental damage, pollution or degradation has high, severe impacts on the community and/or environment and may have irreversible residual impacts.

Our processes include a requirement to critically assess and treat risks, then examine the residual risks and the likelihood of those risks resulting in a Level 1 incident, with additional controls to be adopted as necessary to reduce those residual risks to an acceptable level.

Minimum mandatory non-negotiable guidelines will be prescribed for the management of critical environmental risks.

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The process is applicable across all operations and at both company and individual levels.

To assist our people in assessing and managing risk, Active Risk Manager (ARM) has been mandated across the company. ARM is an company-wide risk management tool that captures all business and project risks.

ARM provides the platform for the professional and detailed management of environmental risk. The use of ARM is mandated across all projects. Projects are created in ARM and setup to reflect the scope, objectives and work activities of the project. This enables project employees to understand the potential environmental risks associated with their jobs, and the controls needed to ensure prevention of incidents.

Project environmental risk registers are created based on project specific work schedules established by the project team. Individual work activities are broken down to identify potential hazards and each hazard is assessed and control plans determined.

Environment at Leighton Contractors

3. Training, Competency & Development Strategic Objective: Increase awareness and understanding of the relevant critical environmental risks.

The approach to training and development for Environment encompasses both environmental professionals and leaders across the business, such as the Managing Director, EGMs/GMs, PMs, Supervisors, and other frontline leaders, who have environmental responsibilities and accountabilities.

Cross-divisional training, collaboration and rotation is also a proposed feature of the training approach, underpinned by a robust competency framework benchmarked externally.

The training, competency and development program for environmental responsibilities currently consists of: Inductions Environmental Awareness Training Toolbox talks, pre-start and PDRs Leadership and Management Programs

Competency Based Training An environmental training needs analysis is underway for all employees. This will form the basis of a competency-based training framework and will be delivered to all levels of the organisation.

Toolbox Talks, pre-start and Performance Development Reviews (PDRs) To increase the level of awareness and engagement around environmental initiatives, toolbox talks and pre-start meetings are being tailored to encourage work crews to raise environmental issues relevant to their project areas.

PDRs are also being amended to include specific and measurable environmental KPIs for all managers and relevant employees throughout the business.

Inductions

Leadership and Management Programs

All employees working on a project site shall undertake an induction and awareness program where environmental components feature.

The material will vary depending on role and location.

To ensure that all our managers have the required capabilities and competencies to effectively lead, communicate and manage their teams, a range of leadership and management programs are being developed.

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Environment at Leighton Contractors

4. Innovation Strategic Objective: Implement and embed a system for capturing and rewarding environmental innovation.

Throughout 2013 to 2014 a focus will be on environmental excellence, innovation and initiatives with information sought from our contractors and people across every level of the supply chain.

Harnessing good ideas and making innovative changes in the Environment space will assist greatly in achieving our strategic objectives. Promoting a culture of engagement and innovation in maximising operational environmental excellence is also key.

A wealth of knowledge, expertise and experience exists within our business, so by harnessing this information we can all have the opportunity to make a real difference to our collective community.

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Leveraging the work already commenced in the innovation space there will be a single process for seeking and managing innovative ideas, along with a Reward and Recognition Program and consolidated register.

A focus on government funding and tax concession opportunities will be a key element along with guidance and support for Divisions around the implementation of energy efficiency opportunities.

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Environment at Leighton Contractors

5. Communication and Consultation Strategic Objective: Deliver a consistent, clear and communicable message that promotes an engaged workforce through shared values, attitudes and behaviours aligned with our Core Purpose.

Effective communication both within the Environment function and across the company requires an increased prioritisation and level of focus at all levels. A communication plan has been developed to support the Environment 2013-2014 strategy and the table below outlines the plan’s two-way communication initiatives.

SHE Executive Monthly SHE strategy meetings actions and messages Business Standards

Project Leadership Visits

Intranet

MD and EGM messages

Industry updates

Green Book

External industry awards

Project Leadership Visits

Lessons Learnt/ Environment Alerts

Group SHE Forum Monthly SHE strategy meetings actions and messages Performance Reports SHE Management System development

Divisional forums and meetings Divisional campaigns and communication

Excellence Awards Intranet Industry updates

Operational SHE Teams Performance reports Divisional forums and meetings Divisional campaigns and communication

Lessons Learnt/Environmental Alerts

Intranet Industry updates

Excellence Awards

Frontline Leaders (PMs, Supervisors, Leading Hands etc) Tool box talks Lessons Learnt/Environment Alerts Project Crew 24

Divisional campaigns and communication

Excellence Awards Training

Environment at Leighton Contractors

6. Systems Strategic Objective: Increase the capacity of current business systems to deliver enhanced environmental outcomes.

Part of the Environment’s role is to provide and continue to develop support tools to help the Divisions and Projects manage Environment in a professional and systematic way.

All systems are designed to ensure compliance through the implementation of Group SHE Business Standards.

System Supporting Tools We currently mandate the use of three key tools across Leighton Contractors, including: 1. Cintellate Cintellate is a well established workflow management tool which provides the following functionality to support our projects:

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A robust process for capturing events, incidents, (including investigation follow-up), hazard management and action items Workflow (via assigned action items) which supports business practices and processes A structured approach to scheduled audits and inspections, capturing NCR/CARs and breaches and notices, with follow-up action items for resolution and to quantify closeouts The ability to compare established KPIs against actual environmental performance at all levels of the company More intuitive data entry and retrieval, which allows us to improve our

reporting accuracy and identify environmental trends across the business. This leads to the creation of new initiatives based on shared knowledge.

Cintellate has strengthened our approach to environmental management by driving accountability throughout the business and providing an integrated and consistent approach for the management of related issues across the Leighton Contractors Group.

2. ARM - Active Risk Manager ARM is our company-wide risk management software application.

ARM allows the company and individual projects to maintain detailed environmental risk management. The ARM tool supports the implementation of our risk management procedures producing project risk reviews and tracking actions that have been identified to manage risk. More specifically, ARM helps us to: Provide a robust formalised approach to risk and opportunity management Develop a proactive risk aware culture Retain and harness knowledge Use risk and opportunity management to reinforce Leighton Contractors’ capabilities, credibility and provide additional value to our clients and stakeholders.

ARM has been mandated for use in all operations, including all projects over $10 million in value.

Above: ARM

3. ICAM - Incident Cause Analysis Method ICAM is the methodology we use for incident investigation and analysis. It is now widely recognised as an effective method for professional incident investigation.

The ICAM method enables the identification of systemic safety, health and environmental deficiencies, assists investigation teams to identify what really went wrong and ensures recommendations are focused on what needs to be done to prevent reoccurrence.

The methodology can be applied to all types of incidents both actual and potential, regardless of the impact.

All Leighton Contractors environmental incident investigations are to be carried out using ICAM.

Environmental Compliance The introduction of an environmental compliance and review tool will allow Divisions to assess and monitor their legal compliance to all state, territory and Federal Government environmental legislation.

Environment Home Page The Environment Intranet pages will provide a greater service to the business. All Environment alerts shall be communicated via this page including associated guidance and Lessons Learnt.

My Workspace – Environment communities Leighton Contractors new portal function, ‘My Workspace’, has several Environment related work spaces.

This allows employees throughout the business to share information, experiences and technical knowledge in a central, online repository and help drive a culture of continuous improvement.

Above: ICAM

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Environment at Leighton Contractors

7. Performance Monitoring Strategic Objective: Develop effective and efficient performance monitoring processes that promote informed environmental decision making.

A comprehensive schedule of environmental auditing, monitoring and reporting is in place across the company, covering Group, Divisions and Projects. The audit program provides assurance that our systems and related procedures are being implemented at every level of the organisation. Cintellate is used for recording all outcomes and actions from the auditing process.

The Environment audit program includes: Business Standard audits by Group office of Divisions/Regions - annually Business Standard audits by Divisions/Regions at each of their Business Units with confirmation of implementation at projects - annually Targeted audits of high-risk projects - periodic Certification, compliance and client audits - ongoing Audits of projects by regulators - as per government requirements Lag and lead indicators, based on qualitative and quantitative assessments are used and reported on with ‘Lessons Learnt’ implemented for all Level 1 and Level 2 incidents.

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Monitoring our performance Environment - Lead Indicators Goal

Source

Measure

Target

To have the Leighton Contractors Environmental Management Business Standard applied across all the Group.

Group and Divisional Audits

Divisional compliance to the annual Leighton Contractors Group Environment audit.

80% compliant

To have all Leighton Contractors Supervisors and Managers participate in the Environment Awareness Training.

Environmental Awareness Training Plan

Number of Supervisors and Managers trained as a percentage of those appointed.

100%

All Level 2 incidents to have ‘Lessons Learnt’ published, communicated and closed out so that repeat incidents are prevented.

Published Lessons Learnt

All projects have signed off ‘Lessons Learnt’, with ARM updated to include critical risks.

Nil repeats

To foster a culture of visible leadership practises.

Leadership Visits

Number of leadership visits recorded in Cintellate and concerns registered.

Monthly

High Severity Incidents (Level 1)

0

Medium Severity Incidents (Level 2)

0

Environmental Incident Frequency Rate

0.20

Prosecuted breaches

0

Penalties/fines imposed on Leighton Contractors

0

Environment KPIs Eliminate the potential for incidents and to systematically reduce all other infringements.

Cintellate

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Our current focus REMAINS...

TO EMBED ENVIRONMENTAL PROCESSES WHICH MINIMISE OUR ENVIRONMENTAL IMPact.

Environment at Leighton Contractors

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Š Leighton Contractors Pty Limited 2013 April 2013