ES TI
BENEFIT
C O M METHICS
SUSTAINABILITY 2010
ECONOMIC
COMPLIANCE
OPPORTUNITY
I
SOCIAL
UN
SAFETY
STRATEGY
SUSTAINABILITY
CHARITY
PEOPLE
COMMUNITY
FUTURE
AIR
ENVIRONMENT
POWER
CLIMATE
102
JOHN HOLLAND
Contents
03 13
08
Message from Glenn Palin
02
Sustainability snapshot
04
Who we are
06
What sustainability means to John Holland
08
Governing sustainability at John Holland
09
Our sustainability drivers – Economic – Social – Environment – Governance
10
GRI index
15
Company directory
17
We seek to ensure our long-term sustainability by examining our economic, social and environmental performance 02 Glenn Palin, Group Managing Director
01
SUSTAINABILITY REPORT 2010
Message from Glenn Palin Since 1949, John Holland has built some of Australia’s most iconic infrastructure. From Parliament House and the new National Portrait Gallery in Canberra, to Victoria’s EastLink and the Sydney Desalination Plant, John Holland has delivered some of the most significant structures of the nation’s built environment. We recognise the faith our clients place in us when we are entrusted to deliver these, and similar nation building projects. We seek to ensure what we deliver meets not only the criteria set by our clients, but also the expectations of all our stakeholders. This is because we know, through long experience, that to be successful for the former we must also deliver for the latter. The company therefore views its investment in sustainability as an investment in future success. Our approach is a whole-of-business one. That means we seek to ensure the long-term sustainability of the company by examining our performance on economic, social and environmental grounds. We see the adoption of good sustainability practice as a means to identify risks and opportunities, to enhance our performance, to reduce cost and to stimulate innovation. In June 2010, our executive team formalised this approach and established a steering committee to drive the function. The committee agreed a set of indices for the reporting year 2009–2010 and this report Sustainability 2010 is a report on our progress during the period. It contains information about areas where we have succeeded and areas where we have not met the standards we set ourselves. This report contains information about our most important drivers: our safety record, our environmental performance, our people, the community, our ethical approach and our financial performance. We seek continued improvement in these measures and will report our progress annually. I look forward to sharing our sustainability journey with you.
Glenn Palin Group Managing Director
02
JOHN HOLLAND
Our investment in sustainability is an investment in our business’s future success DARRA TO SPRINGFIELD TRANSPORT CORRIDOR, BRISBANE
03 03
SUSTAINABILITY REPORT 2010
Sustainability snapshot Unless otherwise stated, data provided in this table includes our share of joint ventures.
Key Areas of Concern
Results 2009–2010
Commentary
Economic
Balance sheet
Total revenue*: Work in hand*: Gross cash: Total assets: Net assets: Operating cash flow:
$3.6 billion $5.3 billion $531 million $1.3 billion $463 million $118 million
*Includes our share of joint ventures and associates.
A strong balance sheet provides significant opportunities for John Holland, and a stable platform to support our growth strategies. In the context of an uncertain economic climate, revenue levels for the financial year were consistent with the prior year and work in hand remained high. The company maintained a strong capital expenditure program with increased investment in rail, mining and energy and resources plant and equipment to enable the business to benefit from the increased market activity in these sectors.
Social
Employees
Safety
Total number of employees:
7,258
Employment type: – Full time – Part time – Casual
95% 1% 4%
Gender: – Women – Men
13% 87%
Turnover of employees: – FY2009
18% 16%
Turnover has increased slightly during the year due to the increased proportion of remotely located and project-resourced projects and continuing competition for limited numbers of skilled resources.
The key benefits provided to John Holland employees are: – Income protection insurance – Salary packaging – Paid parental leave – A counselling and support program – A large range of discounted products
Various financial and non-financial benefits are offered by John Holland to its employees. Most benefits are available to all John Holland employees, regardless of their status as full time, part time or casual employees. Due to the various industrial agreements that John Holland has in place, the company can offer packaging of annual leave and paid parental leave only if the agreement permits. Some of our benefit providers specify that employees need to be working more than 15 hours per week to receive the benefit.
Group: – Fatalities – Total Recordable Injury Frequency Rate (TRIFR): – Lost Time Injury Frequency Rate (LTIFR): – Lost Time Injuries (LTI): – Days Lost to LTI:
The safety and wellbeing of our people is our number one priority. John Holland is committed to a ‘No Harm’ vision, a working environment where employees and subcontractors can carry out their duties without sustaining injuries or damaging their health. Tragically, in early 2010, an employee in our Power business was killed in an accident onsite in Queensland. In the six months that followed, the Power business renewed its focus on safety awareness. Across the group, John Holland is committed to continued investment in training and development to improve occupational health and safety knowledge and performance throughout the business. We also take an active role in industry participation and leadership with respect to OH&S regulatory and cultural development.
Business streams: – Infrastructure – Energy & Resources – Transport Services
1 21.7 2.4 64.8 846.4 LTIFR 2.3 2.2 3.4
Community Of the 71 projects evaluated: – 37 had a community relations plan (52%) – 26 had community relations staff (36%) – 37 had a current community partnership/ (52%) sponsorship Approximately $5 million in total has been invested in community projects. 04
A large majority of our people are in full time employment, with most located in Queensland, Victoria, Western Australia, and New South Wales respectively.
TRIFR 21.4 22.5 23.8
To measure our success managing community impacts, we have assessed the percentage of current projects with community or stakeholder relations plans and the number with community or stakeholder relations employees. Ensuring our projects have these resources is a first step towards ensuring we are better equipped to manage community impacts. To measure our community benefit activities, we have assessed the percentage of projects with an identified community partner or local sponsorship and the approximate value of our investments in this area. In coming years, the company plans to establish a regionally based community engagement reporting framework to more effectively monitor and develop our performance in this area.
JOHN HOLLAND
Key Areas of Concern
Results 2009–2010
Commentary
Environment
Energy use and emissions
Total direct and indirect energy consumption (Scope 1 and 2):
2,290,662 GJ / 217,709 t CO2-e
Comprising: – Diesel:
1,818,593 GJ / 122,588 t CO2-e
– Electricity:
336,422 GJ / 87,925 t CO2-e
Approximately 130 project and non-project facilities were active during the period. The energy consumed and emissions produced as presented here includes onsite energy consumption by subcontractors. For projects delivered as partnerships, the proportion of energy and emissions corresponding to John Holland’s equity share of the project is reported. Electricity consumption was unusually high in 2009–2010 due to the commissioning requirements of the Sydney Desalination Plant.
– Petrol, gas, oils, greases, 135,647 GJ / 7,196 t CO2-e solvents, natural gas, JetA1, biodiesel, ethanol: Spills
Total spills:
167
Spills by type: – Oil – Fuel – Chemical – Waste – Other
104 31 10 15 7
Compliance There were no significant fines or nonmonetary sanctions in the period. Two cases associated with Dalrymple Bay Coal Terminal and Abbot Point Coal Terminal expansion projects, both in Queensland, were initiated through dispute resolution mechanisms. No monetary fine has to date been applied for the period.
In the period, the company recorded one significant spill which was a sewer overflow of approximately 10,000 litres on the Airport Link project as the result of a blocked pipe. This spill was cleaned up and did not result in any lasting environmental harm. The majority of spills were of hydraulic oil or diesel as a result of equipment failure and were below 50 litres in volume.
John Holland’s target is to record zero regulatory breaches or infringements. For the financial year ended June 2010, 18 minor environmental fines were issued against John Holland-associated projects. Of these, 17 were penalty infringement notices issued to the Thiess John Holland Joint Venture constructing Airport Link. None of these fines were significant in terms of monetary value or associated environmental harm and all were issued to joint ventures or alliances with other parties. Zero non-monetary sanctions were received during the period.
Governance
Ethics
Public policy
Four meetings of the John Holland Ethics Committee were held during the year.
The John Holland Ethics Committee was formed in 2006. The Chairman of the committee is the Group Managing Director, and the members are the Chief Financial Officer, Group Legal Counsel, and two Executive General Managers.
An independent contractor was engaged to conduct a review of compliance with the John Holland Code of Ethics on four projects and in one regional office.
Each year from 2008, the Ethics Committee has engaged an independent contractor to undertake a review of compliance with the John Holland Code of Ethics on projects and in regional offices. This review includes an interview with staff on projects and in regional offices for their awareness of and compliance with the John Holland Code of Ethics.
Five allegations of non-compliance were investigated.
During the period, the John Holland Ethics Committee investigated five allegations of practices that were not in compliance with the John Holland Code of Ethics, which in some instances resulted in the termination of the staff involved.
John Holland maintained a policy of conducting bipartisan relationships across governments at local, state and federal levels.
John Holland is committed to developing open, transparent and bipartisan relationships with members of parliament at the local, state and federal level, along with members of their staff, departmental officials and political parties. This reflects the impact that public policy can have on our business. We report annually on government engagement activity and have strict guidelines relating to the engagement and disclosure of lobbying activities. No success fees are paid to lobbyists and John Holland does not make any donations to political parties or causes.
John Holland is an active participant in numerous industry associations (see details on page 6).
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SUSTAINABILITY REPORT 2010
Who we are John Holland, a wholly owned subsidiary of Leighton Holdings Limited (ASX: LEI), is one of Australia’s leading engineering, contracting and services providers to the infrastructure, energy and resources and transport services sectors. Operating across Australia and in New Zealand, South East Asia and the Middle East, John Holland’s business is driven by its collaborative approach to project delivery and its diversity of skills and capabilities. Its operating principles – People, Performance, Partnerships and Profit – are a key focus in the way John Holland conducts its business.
John Holland has over 60 years experience, throughout all regions of Australia.
Some of our projects recognised by awards in 2010 include: – Alliance Contracting Excellence Awards Winner, Excellence Award – Sugarloaf Pipeline Alliance – Alliancing Association of Australasia Highly Commended for Team of Excellence in a Project Alliance – Sugarloaf Pipeline Alliance – Asia Pacific PR Awards Crisis or Issues Management Campaign of the Year – Springvale Road Rail Alliance John Holland’s experience covers a – Australian Institute of Architects wide range of contracting and services People’s Choice Award – UTAS Stage 1 capabilities, from tunnelling, communications, – Civil Contractors Federation Winner, building and civil construction in the Trainee of the Year – Horizon Alliance infrastructure sector to the delivery of major – Construction Skills Queensland Winner, water and environment, energy, mining and – Employer Commitment to Training Award, minerals and industrial projects in the energy over $5M – John Holland and resources sector. John Holland is also a – Construction Skills Training Centre leading provider of services to the transport Winner, Employer of the Year Civil sector, with industry leading skills in railway Construction Award – Horizon Alliance construction, operations and maintenance, aviation services and ports infrastructure – Engineers Australia (Queensland) and maintenance. Winner, Award for Engineering Leadership – John Holland; Winner, Category Award John Holland’s strength lies in its ability to for Reports, Procedures and Systems – deliver diverse, complex and challenging John Holland major projects, its partnership approach – Master Builders Association (Tasmania) to client relationships and absolute Excellence in New Construction Award, commitment to people and their careers. $20–50M Commercial – UTAS Stage 1
–M aster Builders Association (Victoria) Master Builders of Victoria Award for Excellence in Civil Construction – Springvale Road Rail Alliance –M aster Builders Association (Queensland) Winner, Tourism & Hospitality Facilities, over $30M – Enoggera Redevelopment Stage 1 Mess Building –N ational Association of Women in Construction Award for Outstanding Achievement in Delivery and Development – Deb Cownley, Melbourne Water –P ublic Relations Institute of Australia State Award for Excellence in Community Relations and winner of the John Flower Award for Best Corporate Campaign – Sugarloaf Pipeline Alliance –V ictorian Civil Contractors Federation Earth Award – Sugarloaf Pipeline Alliance John Holland is proud to be affiliated with the following relevant national bodies and industry groups: Australian Contractors Association; Infrastructure Partnerships Australia; Alliancing Association of Australasia; Green Building Council of Australia; Australian Green Infrastructure Council; the Sustainable Built Environment National Research Centre (SBEnrc); International Association of Public Participation and the Property Council of Australia.
John Holland’s organisational structure
John Holland Group Pty Ltd Group Managing Director
OPERATIONS SUPPORT
OPERATIONS
FINANCE & GROUP SERVICES
PRE-CONTRACTS
CORPORATE AFFAIRS
ORGANISATIONAL DEVELOPMENT
INFRASTRUCTURE (EGM)
ENERGY & RESOURCES (EGM)
TRANSPORT SERVICES (EGM)
STRATEGIC PROJECTS (EGM)
OPERATIONAL SERVICES (EGM)
CHIEF FINANCIAL OFFICER
PRE-CONTRACTS (EGM)
GROUP GENERAL MANAGER
GROUP MANAGER
NORTHERN REGION
WATER & ENVIRO
RAIL AUSTRALIA
PROJECT DIRECTORS
SAFETY, QUALITY & ENVIRONMENT
RISK MANAGEMENT & COMPLIANCE
PRE-CONTRACTS/ ESTIMATING/ TENDERING
MEDIA & EXTERNAL COMMUNICATIONS
HR STRATEGY
NSW/ACT REGION
ENERGY OIL & GAS POWER
AVIATION SERVICES
STRATEGIC PROJECTS
OPERATIONAL SYSTEMS
INFRASTRUCTURE FINANCE & INVESTMENTS
BUSINESS DEVELOPMENT
MARKETING
POLICIES & REPORTING
SOUTHERN REGION
MINING
PORTS O&M
AIRPORT LINK
DELIVERY SUPPORT
FINANCE & ADMINISTRATION
RELATIONSHIP CONTRACTING
EMPLOYEE COMMUNICATION
ORGANISATIONAL & CULTURAL DEVELOPMENT
WESTERN REGION
MINERALS & INDUSTRIAL
MTM
INTERNATIONAL PROJECTS
HUMAN RESOURCES
GROUP TAXATION
KNOWLEDGE MANAGEMENT
PUBLICATIONS
DIVERSITY
TUNNELLING
COUNTRY REGIONAL NETWORK (CRN)
DESIGN & ENGINEERING SUPPORT SERVICES
COMMUNICATIONS
ADVANCE RAIL GROUP (ARG)
INFORMATION & COMMUNICATION TECHNOLOGY
GROUP PAYROLL
LEGAL
06
SUCCESSION PLANNING
EGM = Executive General Manager = Executive management team
JOHN HOLLAND
Our business is driven by a collaborative approach to project delivery Trent Mullavey, Site Engineer, at Melbourne Airport Terminal 2 Expansion
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SUSTAINABILITY REPORT 2010
What sustainability means to John Holland
LEFT: The Sydney Desalination Plant was named 2010 Desalination Plant of the Year at the Global Water Summit in Berlin RIGHT: Lynden Cini, Environmental Officer, Isaac Plains Coal Mine, Central Queensland
John Holland is committed to enriching the communities in which we work. We do this by delivering infrastructure and services that enhance utility for people and environments, have an economic value, are of high quality and are sustainable over the long term.
08
This vision for sustainability operates under John Holland’s broader codes and practices including our Code of Ethics and operating principles. Statements regarding our codes and practices are available on the John Holland website at www.johnholland.com.au. At John Holland, we recognise that our operations necessarily have impacts that are environmental, social and economic in nature. Building a sustainable business requires pragmatic assessment of the many issues which face the business. Only by first identifying and understanding those issues, are we able to prioritise and set performance targets regarding them. Our reporting framework In 2010, John Holland made the decision to adopt the Global Reporting Initiative (GRI) framework for sustainability reporting. The GRI is an international, independent and comparable framework for measuring sustainability performance.
The GRI sustainability reporting process involves an ongoing cycle of reviewing, monitoring, and reporting on a set of prescribed measures. In adopting the GRI framework, John Holland seeks to identify and measure the significant and material impacts of our operations. What is the GRI? The Global Reporting Initiative (GRI) is a multi-stakeholder network of thousands of individual experts and representatives of diverse groups including businesses, NGOs, experts and academic institutes in more than 30 countries. The GRI has pioneered the development of the world’s most widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide. This framework sets out the principles and indicators that organisations can use to measure and report their economic, environmental and social performance.
JOHN HOLLAND
Governing sustainability at John Holland
Economic
SOCIAL
ENVIRONMENTAL
GOVERNANCE
Our framework for sustainability enshrines three key reporting areas: the economic, the social, and the environmental, while our governance function underpins all that we do.
Our stakeholders Our stakeholders range from public and private sector clients and business partners to the local communities we operate in through our ongoing project delivery. Understanding stakeholder needs is critical to the success of every project we undertake and we remain committed to communicating openly with each of these groups. While a range of processes exist to facilitate feedback from various stakeholder groups, the company will formalise its engagement with stakeholders with regard to our sustainability performance in the 2011–2012 reporting period. The company specifically undertakes to develop a policy designed to promote effective communication and a mechanism for obtaining commentary, guidance and feedback from a range of stakeholders including employees.
A five-member steering committee, appointed and chaired by Group Managing Director Glenn Palin, governs sustainability practice at John Holland. The committee has set John Holland’s vision and direction to achieve the long-term sustainability of the company. The committee meets six times a year. Its role is to formulate policy to govern sustainability at John Holland and to monitor Our reporting journey In our first Corporate Sustainability Report, performance in the reporting areas. published in 2008, we outlined our In 2010, the committee formalised the commitment to mitigating impacts on the adoption of the GRI framework for environment, the programs we have run reporting. A Sustainability Reporting to benefit the communities in which we Team drives the reporting function through operate, and our commitment to our people. the 12-monthly financial year cycle and It defined our approach to sustainability as is responsible for collating information “not what we do, but how we do it”. received resulting from the monitoring The 2008 report also outlined a of agreed performance indicators. commitment to developing more rigorous A process to determine the qualifications and consistent reporting procedures. and expertise of the Sustainability Steering This 2010 report is our next step in Committee does not currently exist but embedding sustainability more firmly into will be put in place in the 2011–2012 our operations. An important outcome will reporting period. A process for evaluating be the collection of a wider range of data the committee’s own performance will we can use to assess our sustainability also be implemented in the 2011–2012 performance both internally and against our reporting period. competitors’ and our clients’ expectations.
This report, for the financial year ended June 2010, is our first report using GRI performance indicators (see the Sustainability snapshot on pages 04–05). Our sustainability governance regime includes the ongoing investigation of our material issues and the continuous assessment of the GRI indicators we are monitoring. For the financial year ending June 2011, we are implementing further data collection with a view to expanding the number of indicators which we report in 2011 and future years. We also note with interest the introduction by the GRI of a draft construction and property sector supplement and will examine the sector supplement for use in future reporting years. Parameters of this review This is a report on our impacts and actions for the financial year July 2009 to June 2010. Our previous sustainability report, Corporate Sustainability Report 2008 – Taking the next step, was published in 2008 and is available on our website at www.johnholland.com.au.
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SUSTAINABILITY REPORT 2010
Our sustainability drivers ECONOMIC
LEFT: Scott Van Bronswijk, Regional Workers Compensation & Rehabilitation Coordinator, and Claudio Quiroz, Planning Engineer RIGHT: Dave Kristy, Community Relations Manager, Northern Sewerage Project, provides a local resident with an update on construction activities
The 2009–2010 financial year was a period of consolidation for John Holland, with aftershocks following the global economic uncertainty of 2009 countered by a broad range of stimulus measures and returning confidence. Our performance in this uncertain economic climate has been outstanding. Revenue levels for the year were consistent with the prior year and work in hand remained high, a benefit of the diversity in our multi-disciplined contracting, engineering and services business. Maintaining our competitiveness and our profitability is fundamental to securing John Holland’s long-term sustainability. A strong balance sheet provides significant opportunities for the company, and a stable platform to support our growth strategies. Financial highlights In the 2009–2010 financial year, John Holland achieved strong operational performance. – Total revenue $3.6 billion – Work in hand $5.3 billion 10
Five year summaries – Revenue (2006 to 2010, see table) – Work in hand (2006 to 2010, see table) John Holland’s financial performance for the year ended June 2010 is provided with further detail in the Financial Report 2010, which is available on our website at www.johnholland.com.au.
Total revenue $3.6 billion Work in hand $5.3 billion
There were no significant changes in the state of the affairs of the company that occurred during the reporting period.
Five year summary Year
Work in Hand ($ Millions)
Revenue ($ Millions)
June 2006
2,854
2,117
June 2007
3,140
2,409
June 2008
4,738
2,898
June 2009
5,016
3,714
June 2010
5,308
3,614
Revenue and work in hand includes our share of joint ventures and associates.
JOHN HOLLAND
SOCIAL Our People
One of the legacies of the company’s founder, Sir John Holland, is his approach to business and his values of integrity, honesty and fairness. Sir John’s values remain ingrained in the organisation today and it is these values that inform our approach to our people, our clients and the communities in which we operate. These values underpin our social investment and guide our approach to community partnerships, health and safety, learning and development, diversity, and remuneration and benefits. Through this commitment the company has sown an impressive return in the quality, dedication and loyalty of our people and the strength of our partnerships – evident at any John Holland site. This report incorporates the performance of John Holland as part of numerous joint ventures across Australia. Health and safety The safety and wellbeing of our people is our most fundamental value and we believe that if we are effectively managing safety then we have a firm foundation on which to deliver our other business objectives. John Holland continues to invest in the development of robust safety management systems that provide clear accountability, guidance and leadership to drive safety performance. Fundamental to managing safety at John Holland is the SQE Risk Management system, which is focused on the early identification and assessment of workplace risks and the empowerment of all our employees to ensure productivity is never placed ahead of safe work practices.
Australian Capital Territory
Northern Territory
Tasmania
Expatriates
Queensland
Victoria
New South Wales
South Australia
Western Australia
Our people John Holland employs over 7,000 people across Australia in a diverse range of project, operational and support service roles. The bulk of our employees are located in Queensland, Victoria, Western Australia, and New South Wales respectively. We recognise that our success is inextricably linked to the talents and efforts of all our people and for this reason we strive to be considered an employer of choice by our people and in our industry. We pride ourselves on being a market leader in our approach to targeted training, career development, staff benefits and remuneration. Community engagement and investment As a deliverer of vital public infrastructure and services, John Holland operates in local communities around Australia and overseas. We acknowledge that our activities can impact on communities; however, we also believe that our work provides opportunity to build lasting and positive relationships that create long-term benefit for communities and our employees. Our approach to community engagement and investment is measured on two fronts: – Community impact: project based efforts to mitigate and reduce the impacts of our work on local communities – Community benefit: project based activities that support local communities and deliver lasting benefits
To measure our success managing community impacts, we have assessed the percentage of current projects with community or stakeholder relations plans and the number with community or stakeholder relations employees. It is assumed that projects with these resources are better equipped to manage community impacts. To measure our community benefit activities, we have assessed the percentage of projects with an identified community partner or local sponsorship and the approximate value of our investments in this area. This information is presented in the Sustainability snapshot on pages 04–05. This represents the first step toward measuring performance in this area. In the coming year, the company plans to establish a regionally based community engagement reporting framework to more effectively monitor and develop our performance in this area. Case study: Springvale Road Rail Alliance project This $140 million project removed one of Melbourne’s most notorious traffic snarls by removing boom gates on Springvale Road and dropping the rail line below ground. The project also delivered a new train station to the suburb of Nunawading. In order to facilitate the project, some major road closures were required which impacted upon the local traders. The Alliance team developed and initiated a ‘Business as Usual’ campaign in conjunction with the local council. The campaign included advertisements in local papers during major road closures to support the ongoing custom of local businesses. 11
SUSTAINABILITY REPORT 2010
ENVIRONMENT while a project-wide Greenhouse Gas Management Plan focused on measures to reduce the energy footprint. This included leasing an area of Yarra Glen Racecourse for a car park and transferring personnel to site via buses. Through the bushfires of February 2009, the Alliance provided personnel and machinery to assist the local Environmental management community in the firefighting effort. The Alliance also provided fuel and fresh water We manage the environmental aspects to the locals. The Alliance implemented and impacts associated with our business a Waste Management Program focusing through our ISO14001 based Environmental Each quarter, an Environmental Report is compiled, signed off by the Group Managing on waste minimisation actions including Management System (EMS). A key a waste reduction action plan under component of the EMS is the identification, Director and submitted to the Board. Regular audits are also conducted by both the auspices of Sustainability Victoria’s assessment and control of environmental personnel independent of the operations WasteWise program. Similarly, reuse of risk for all projects through our SQE Risk and third party auditors to evaluate the spoil and mulch was used to rehabilitate Management planning process. effectiveness of our EMS. These audits the Old Castella Quarry. The Alliance also Implementation of the EMS is reviewed confirm the identification of environmental sought opportunities for recycling materials through a program of internal and thirdissues and their potential impacts on including sediment fencing and star pickets party audits. The EMS has been certified operations, compliance with legislative that were donated to Yarra Glen Fire Relief against the ISO14001 framework since requirements, and the effectiveness of Centre for use by the local community. 1995. All of our operations are currently established environmental controls. Rare populations of the Golden Sun Moth, covered by the scope of this certification, Where potential improvements are identified Striped Legless Lizard and Matted Flaxexcept for our aviation services business lily were retrieved from the construction they are reported to senior management which will obtain certification during 2011. corridor and reinstated. and actions raised as appropriate. In Effective management of environmental addition, management reviews are Case Study: John Holland issues on John Holland projects is achieved conducted regularly at Group, business Aviation Services (JHAS) energy through embedding environmental roles unit and project level. saving project within project delivery teams. These In 2009, John Holland engaged an energy Innovation through project roles are supported by a Regional services company to undertake the supply sustainability Environmental Support team and a and installation of several capital works General Manager, Environment. To support It is ‘business as usual’ at project level to to reduce electricity consumption at its our improved project performance, the actively pursue opportunities to enhance aircraft maintenance facility in Tullamarine, environment function has been repositioned business and stakeholder outcomes Melbourne. The facility is John Holland’s within operations to further align though innovation, and we are also senior largest ongoing energy consumer. Working environmental and operational outcomes. members of the Green Building Council, Australian Green Infrastructure Council, the within a payback period of three years, Legal requirements the energy conservation measures applied Australian Constructors Association, and included measures to reduce energy Each John Holland project is subject to a the Sustainable Built Environment National use when facilities are not in use and wide range of legislative and contractual Research Centre. to increase efficiency during use. The environmental requirements. We identify Through these organisations we are measures introduced, including lighting our obligations prior to project launch, and participating in various research and control systems, are predicted to reduce these are tracked through an Obligations development programs that hope to deliver annual energy use by 818,000 kWh or Register. Regular compliance reviews are approximately 18% of the sites’ annual also conducted to confirm that each project tools and processes that will result in outcomes that are more sustainable both electricity consumption baseline at the continues to meet its obligations. for us and our industry. We are excited about time of the assessment. The expected Since the introduction of the National the opportunity associated with resource financial savings are $91,000 per annum Greenhouse and Energy Reporting efficiency, initially focusing on energy in electricity and maintenance costs Act 2007 (NGER Act), all projects have efficiency and avoidance, followed by once the capital costs are paid off. Since recorded energy use, energy production water and waste efficiency which we intend completing the implementation of these and greenhouse gas emissions, and we to report on in future. We have also had improvements in November 2010, JHAS are currently preparing to address the 40 staff trained as Green Star assessors. has already begun to see a reduction in its requirements of the Energy Efficiency electricity consumption, which has dropped Case study: Sugarloaf Pipeline Opportunities Act 2006 (EEO Act) in 2012. by approximately 9% despite an increase in Alliance JHAS workload since the initial assessment The implications of the proposed The Sugarloaf Pipeline Alliance was was conducted. introduction of a price on carbon in midcharged with the design and construction 2012 mean we will continue to refine our of a 70-kilometre pipeline for the transfer of approach to this important issue as the pertinent details are finalised and released. 75 billion litres of water each year from the Goulburn River into Melbourne. The project established a Sustainability Management Plan to guide all phases of the project John Holland is committed to meeting our regulatory and contractual obligations, optimising our resource efficiency and minimising the environmental impacts of our operations. Our aim is to be recognised through our actions as an industry leader in environmental management.
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Review and continual improvement To ensure that opportunities to improve are identified and acted upon, each project is required to produce monthly environmental reports covering issues such as incidents, non-compliances, resource usage data and initiatives. Reported issues remain on record until declaration that they are rectified and/or resolved.
JOHN HOLLAND
LEFT: The Sugarloaf Pipeline makes its way through a sensitive rural environment in the Dandenong Ranges in Victoria RIGHT: Charlie Palazzi, Rigging Supervisor, and Nobby Seshie, Environmental Advisor, at the Onshore Gas Plant, Devil Creek, Western Australia
GOVERNANCE John Holland conducts its business to the highest standards of ethical behaviour. We expect all of our staff and management to act with integrity towards those with whom we have business dealings and towards each other. Our systems and processes are based on: – Complying with all applicable laws, regulations and statutory obligations relating to behavioural and ethical practices, including trade practices legislation – Acting honestly towards our clients, subcontractors and suppliers, and not engaging in misleading or deceptive conduct – Being totally committed to the independent conduct of our business – Treating all persons in a manner that provides equal opportunity and prevents harassment, vilification and unlawful discrimination including on grounds of age, sex, race, religion, political opinion or other personal characteristics or preferences – Protecting individuals’ privacy by the correct application of workplace surveillance privacy principles – Individually avoiding situations with the potential for conflict of interest and being responsible and accountable for all of our own actions – Using company assets and resources only for legitimate business purposes
– Preserving the proprietary character of intellectual property of the company and others and protecting confidential information concerning John Holland and its employees, stakeholders and clients both during and after engagement – Ensuring that consultants, subcontractors and suppliers are aware of the company’s Code of Ethics when working for, with or on behalf of John Holland
Preventing corruption John Holland complies with the provisions of the Competition and Consumer Act, formerly called the Trade Practices Act. Since 2006, the company has implemented a training program on trade practices matters. All general managers are provided with the training material. The training program has been presented many times over the subsequent years by regional legal counsel and attendance records have been kept. In addition, an online training program is available on the John Holland Staff Intranet. Usage of this online tool is tracked and in some business units it is mandatory that all senior staff complete the online training.
Governing ethics at John Holland The John Holland Ethics Committee was formally convened in mid 2006. The Chairman of the committee is the Group Managing Director, and the members are the Chief Financial Officer, Group Legal Counsel, The Business Unit Quarterly Compliance Report, completed and signed by general and two Executive General Managers. managers on a quarterly basis, confirms Meetings of the committee are held four business unit compliance with the Act times per year to discuss ethical issues and requires business units to report any drawn to the attention of the committee conduct or issue of concern. As mentioned members in the period since the last above, the Ethics Committee meets regularly meeting. Minutes of the meetings are to discuss ethical issues. provided to the John Holland Board of Directors and the Leighton Holdings Audit and Compliance Committee. The committee’s focus is on compliance with our Code of Ethics, the Ethical Dimension Reporting procedure, Business Unit Quarterly Compliance Reports, and any ethical matters reported during the precontracts/tender process and during the delivery of projects.
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SUSTAINABILITY REPORT 2010
John Holland is committed to enriching the communities in which we work Local school student Lucy GoUdie won our competition to name the Melbourne Main Sewer Replacement’s tunnel boring machine, “Lucy Loo”
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JOHN HOLLAND
GRI index Strategy and Analysis
PAGE #
1.1
Statement from senior decision maker
02
1.2
Key impacts, risks and opportunities
10–13
Organisational profile
2.1
Name of organisation
06
2.2
Primary brands, products and services
06
2.3
Operational structure
06
2.4
Location of headquarters
17
2.5
Countries of operation
06
2.6
Nature of ownership and legal form
06
2.7
Markets served
06
2.8
Scale of organisation
06
2.9
Significant changes during the reporting period
10
2.10
Awards received during the reporting period
06
Report Profile
3.1
Reporting period
09
3.2
Date of most recent previous report
09
3.3
Reporting cycle
09
3.4
Contact point for questions
17
Report Scope and Boundary
3.5
Process for defining report content
08–09
3.6
Boundary of the report
09
3.7
Specific limitations on the scope or boundary of the report
09
3.8
Basis for reporting on joint ventures
04, 10–11
3.9
Data measurement techniques and the bases of calculations
04–05, 10–12
3.10
Explanation of the effect of any restatements of information provided in earlier reports
n/a
3.11
Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report
n/a
GRI Content Index
3.12
Table identifying the location of the Standard Disclosures in the report
15–16
Governance, Commitments and Engagement
Governance 4.1
Governance structure of the organisation
09
4.2
Indicate whether the Chair of the highest governance body is also an executive officer
09
4.3
The number of members of the highest governance body that are independent and/or non-executive members
09
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
09
4.7
Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organisation’s strategy on economic, environmental and social topics
09
4.8
Internally developed statements of mission or values, codes of conduct, and principles
08
4.9
Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental and social performance
09
15
SUSTAINABILITY REPORT 2010
4.10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental and social performance
09
Commitments to external initiatives 4.12
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses
10–13
4.13
Memberships of associations
06
Stakeholder engagement 4.14
List of stakeholder groups engaged
09
4.15
Basis of identification and selection of stakeholder groups engaged
09
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group
09
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns including through its reporting
n/a
Management Approach and Performance Indicators Economic Performance Indicators
Economic performance EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments
04, 10
Environmental Performance Indicators
Energy EN3
Direct energy consumption by primary energy source
05
Emissions, effluents and waste EN16
Direct and indirect greenhouse gas emissions by weight
05
EN23
Total number and volume of significant spills
05
Compliance EN28
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
05
Social
Employment LA1
Total workforce by employment type, employment contract and region
04, 11
LA2
Total number and rate of employee turnover by age group, gender and region
04, 11
LA3
Benefits provided to full time employees that are not provided to temporary or part time employees, by major operations
04, 11
Occupational Health and Safety
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region
04
Community
SO1
Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting
04, 11
Governance
Corruption SO2
Percentage and total number of business units analysed for risks related to corruption
05, 13
SO3
Percentage of employees trained in organisation’s anti-corruption policies and procedures
05, 13
SO4
Actions taken in response to incidents of corruption
05, 13
Public policy SO5
Public policy positions and participation in public policy development and lobbying
We apply the GRI G3 reporting framework to application level C.
16
05
JOHN HOLLAND
Company directory Head office 70 Trenerry Crescent Abbotsford Victoria 3067 P: 03 9934 5209 F: 03 9934 5275
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Brisbane 1000 Ann Street Fortitude Valley Queensland 4006 P: 07 3867 7000 F: 07 3867 7100
Perth Level 8, 67 Walters Drive Osborne Park Western Australia 6017 P: 08 9482 2700 F: 08 9482 2892
ADELAIDE Level 1, 147 Pirie Street Adelaide South Australia 5000 P: 08 8161 1100 F: 08 8410 8991
Hobart Unit 4, 4 Beacon Court Cambridge Tasmania 7170 P: 03 6216 1700 F: 03 6216 1799
Newcastle Level 4 24 Honeysuckle Drive Newcastle New South Wales 2300 P: 02 4929 2633 F: 02 4929 2048
Darwin 110 Coonawarra Road Winnellie Northern Territory 0820 P: 08 8984 3322 F: 08 8947 2175
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