SUSTAINABILITY STATEMENT
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1 16 RANHILL HOLDINGS BERHAD l Annual Report 2016 SUSTAINABILITY STATEMENT Our Commitment to Sustainability Ranhill s Economic, Environmental and Social (EES) Sustainability practices and initiatives are embedded into the DNA of our two business sectors, Environment and Power. We are cognisant that the manner in which we manage and operate our businesses which covers the resources of water and electricity, matters a great deal in furthering the sustainability initiatives. This simultaneously contributes to the issue of combating climate change within our regional operations. At Ranhill, we aspire to create a sustainable business and shared values with our stakeholders. We also adhere to strong and enhanced governance processes across the in all our markets of operation. Our aspiration is in tandem with our vision of Enriching Lives through Sustainable Solutions and our mission of Becoming the Regional Leader in the Environment and Power Sectors. We strongly believe that we can achieve our vision and mission through the practice of our core values of Respect, Resourceful and Result which are embedded into our business conduct. Ranhill s Four Pillars of Sustainability Our Sustainability Strategy is closely aligned with global sustainability guidelines as well as those outlined by Bursa Malaysia Sustainability Reporting Guide for companies listed on the Main Market. Sustainability at Ranhill Enhancing Governance Across the Health & Safety Customer Satisfaction & Trust Corporate Governance Environmental Awareness & Perseverance Climate Change Preserving Water Resources Circular Economy Performance Based Reward Talent Management Acculturation Inspirational Workplace & Culture Contribution Towards Social Wellbeing Access to Water & Power Industry Development Community Engagement Sustainability Governance At Ranhill, our Sustainability Leadership and Governance resides with the Board of Directors and is supported by the respective policies and procedures currently in place. The custodian of Ranhill s Sustainability Strategy and its related plans is the Corporate Affairs department. The Board is committed in promoting sustainability practices in the and maintaining a good balance in relation to the environmental, social and governance aspects of the s businesses. Overall accountability of the sustainability agenda to the Board is conducted through various channels.
2 RANHILL HOLDINGS BERHAD l Annual Report The Board s overall view of sustainability at Ranhill is conducted under the Governance and Risk Management Committee (GRMC), with its functions as follows: i. Review and assess sustainable impacts of major business decisions and recommend appropriate actions required; ii. Review and recommend to the Board the sustainability strategies and plans that will create long-term shareholder value including budget required in implementing sustainability initiatives; iii. Advise the Board on adoption of Corporate Sustainability (CS) targets and innovative initiatives; iv. Examine the annual assessment of Ranhill s environmental performance and progress, and approve methods of measuring, assessing or validating the s Corporate Sustainability performance, and where appropriate, to commission an external independent assessment of the direct and indirect impact of any aspect of the s operations; v. Assess the effectiveness of the policies and systems in identifying and managing health and safety at the workplace; vi. Assess the environment and community risks that are material to the achievement of the s objectives; vii. Monitor and provide recommendations to the Board on public policy, consumer, stakeholder, corporate and public trends, issues and developments that could impact the ; viii. Review business continuity management including emergency plans and crisis readiness as well as to review incidents within the scope of GRMC and assess remedial actions; and ix. Review and recommend the Sustainability Report to be incorporated in the Annual Report for Board approval. Sustainability Governance Structure Compliance Board of Director Governance and Risk Management Committee President/Chief Executive Management Assurance, Risk, Compliance Committee (MARCC) Chief Corporate Officer (Chairman) Human Capital Staffing Matters Members Reporting to MARCC Legal & Compliance Business Development Areas of Monitoring & Reporting Risk Management & Internal Controls Corporate Assurance Accounting & Finance Financials & Sustainability Corporate Affairs IT Business Continuity Our Sustainability Statement should be read together with our standalone 2016 Sustainability Report (SR2016) as it provides a more in depth and inclusive reporting of our methodology in managing our risks and opportunities. Our Sustainability Report is written in accordance with the Global Reporting Initiative (GRI) G4.0 framework (the GRI Content Index Service In Accordance Option Core).
3 18 RANHILL HOLDINGS BERHAD l Annual Report 2016 Below are some snapshots on our EES achievements as guided by our Sustainability Strategy: Environmental Awareness & Perseverance Preserving Water Resources PROGRAMME NAME SAJ s Water Education Programme OBJECTIVE To educate school children on the importance of water conservation and preserving the environment To develop comprehensive module towards water conservation through idea generation via young students Part of a build-up campaign for World Water Day celebration on 22 nd of March yearly Part of SAJ's initiative to have smart partnerships and collaborations with related government agencies/ngos TARGET AUDIENCE Primary School Students in Johor Year No. of Schools Note: No programme conducted in as the team focused more on community outreach activities relating to drought and other water conservation activities. CONCEPT Learn Experience Action Conserve ACTIVITIES Educational exhibition (simulation) Water Quality Test Activity conducted by Young Water Professionals Educational Talks Public Speaking Competitions Water Workshops Interactive activities THE RESULTS IN % Highest reduction of water consumption 17 % Average reduction of water consumption Greenhouse Gas (GHG) 3 years of total electricity consumption (SAJ) Electricity consumption (GWh) years of total CO ² emission (SAJ) Total CO ² e emissions (tonnes) 269, mt CO ² eq 256, mt CO ² eq 208, mt CO ² eq Scope 1 CO ² e emissions (tonnes) 4, mt CO ² eq 3, mt CO ² eq 3, mt CO ² eq Scope 2 CO ² e emissions (tonnes) 242, mt CO ² eq 231, mt CO ² eq 182, mt CO ² eq Scope 3 CO ² e emissions (tonnes) 22, mt CO ² eq 22, mt CO ² eq 21, mt CO ² eq 3 years of total carbon intensity (SAJ) Carbon Intensity kg CO ² eq/m 3 raw water kg CO ² eq/m 3 raw water kg CO ² eq/m 3 raw water
4 RANHILL HOLDINGS BERHAD l Annual Report years of NOx and SOx Emission (Ranhill Power) NOx Emission (tonne) Ranhill Power O&M (ug/m 3 ) Stack HRSG1A (g/m 3 ) Stack HRSG1B (g/m 3 ) SOx Emission (tonne) Ranhill Power O&M (ug/m 3 ) Stack HRSG1A (g/m 3 ) Stack HRSG1B (g/m 3 ) Contribution Towards Social Wellbeing 1) Capacity Building - Society Through the Komuniti Jimat Air Programme, SAJ plays an important role in the water conservation awareness among the local communities. The main objective of the programme is to reduce water consumption. 2) Access to Water and Power for the Underprivileged 2,300 people involved in the Komuniti Jimat Air Programme 2,910 Number of households benefited from our water rebate programme 300 villagers in Babalitan Sabah have access to electricity through micro-hydro project 3) Industry Development Our NRW specialist, RWS is actively involved in NRW Management Awareness Programme to targeted groups. They are also active in conducting presentations and trainings on NRW at conferences such as Water Loss Asia 2016 in Bangalore and Jakarta, Asia Water 2016 in Kuala Lumpur, and Smart Water Technology Workshop in Singapore. RWS is also recognised as one of the NRW trainers to United States Agency for International Development (USAID) and World Bank's NRW Programme. Ranhill Power organised Educational Motivational Talks for its employees dependents and also accommodates educational and working visits from polytechnics, colleges and local Jabatan Keselamatan dan Kesihatan Pekerjaan (JKKP).
5 20 RANHILL HOLDINGS BERHAD l Annual Report 2016 Inspirational Workplace & Culture Health & Safety Lost Time Injury (LTI) Note: LTI is defined as an occurrence that resulted in a fatality, permanent disability and any work related injury or illness which caused the employee unable to perform his normal duties. OHSAS Certification Motivational Talk 2016 SAJ: SAJ Headquarters Sg. Sayong Water Treatment Plant Semangar Water Treatment Plant Sg. Johor Water Treatment Plant Sg. Lebam Water Treatment Plant Tenglu Water Treatment Plant Sultan Iskandar Water Treatment Plant Sri Gading Water Treatment Plant Gersik Water Treatment Plant Asia Water 2016 Kuala Lumpur Polytechnic Visit 2016 Ranhill Power: Teluk Salut Power Station Rugarding Power Station Capacity Building - Employees and Organisation 115,197 58% 78% 379 TRAINING HOURS TECHNICAL TRAINING PARTICIPATION We continuously aim to enhance and ensure that equal and suitable training opportunity is provided to all employees 58% of the trainings invested in 2016 are of Technical background, which reflects the nature of our business activities 78% of our female employees who attended trainings in 2016 are from the Executive and Non- Executive category We took in 379 internship students in 2016 for placements in various areas of our operations, focusing on developing their technical and non-technical skills plus gaining insight on Ranhill s business in the power and environment sectors.
6 RANHILL HOLDINGS BERHAD l Annual Report Enhancing Governance Across the A number of internal policies and procedures have been drawn up to ensure the highest standards of delivery to our customers, which defines Ranhill s commitment to guarantee the best service to all customers for all key services, which includes a Fraud and Whistleblowing Policy and Procedure as part of our anti-bribery and anti-corruption measures. In 2016, we launched our whistleblowing campaign Taking SAJ as an example, in terms of meeting external stakeholder s requirement, SAJ s policies and procedures are in accordance with the provisions in the Water Services Industry Act, 2006 (WSIA 2006) and its subsidiary legislation. Water supply services agreement signed between the customers and SAJ clearly stated the responsibilities of the water distribution licensee and customers obligations. SAJ also published its Customer Charter and signed the Corporate Integrity Pledge as the company s commitment to guarantee the best service to its customers. Whistleblowing campaign SAJ s Integrity Pledge 2016
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