CIMIC : 2015 Sustainability Report CIMIC 2015 Sustainability Report(PDF File 3.7 MB)

Microsoft Word - 44) Final Sustainability Report 10Feb16

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Contents

Structure of this Sustainability Report

This report is structured around our five sustainability commitments which are to:

• Provide safe communities and safe, supporting and positive workplaces for our people;

• Act with integrity ‐ honestly and respectfully - in all relationships with the Group's stakeholders;

• Develop a united and collaborative culture where engaged employees are aligned to achieve superior performance and integrate governance, economic, environmental and social considerations into their roles;

• Seek competitive advantage by innovating to deliver construction, mining and services projects that satisfy the governance, economic, environmental and social needs of clients; and

• Use resources efficiently, minimise waste and promote the delivery of energy efficient, environmentally and socially responsible projects.

These colour coded commitments provide a navigation framework for this Sustainability Report.

Our commitments are derived from, and based on, our Principles - Integrity, Accountability, Innovation and Delivery - underpinned by Safety. They provide a common unifying bond for our people and set the framework for the behaviour of our people. The principles and our commitments uphold our mission which is to maximize long‐ term value for shareholders by sustainably delivering projects for our clients while providing safe, rewarding and fulfilling careers

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About this Sustainability Report 3

Measuring our performance 5

Our structure 6

The CIMIC Group's operations 8

Executive Chairman and CEO message 10

Sustainability at the CIMIC Group 12

Material issues 13

Providing safe communities and workplaces 16

Acting with integrity 21

Developing a performance culture 28

Innovating to deliver projects 38

Using resource efficiently 48

Our awards 60

Summary of performance 62

GRI Index 64

Organisational profile 66

In 2015, CIMIC Group Limited was again recognised by the industry leading Dow Jones Sustainability Indices (DJSI) with inclusion in DJSI's Australia Index.

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About this Sustainability Report

Reporting approach

The CIMIC Group, which includes CIMIC Group Limited (CIMIC) - the ASX listed parent company - and its various Operating Companies, is committed to operating sustainably and reporting on our environmental, social and governance (ESG) performance and progress. This Sustainability Report marks a new era in the disclosure of sustainability information which is increasingly being sought by our stakeholders.

For the financial year ended 31 December 2015, we have adopted a Global Reporting Initiative (GRI) G4 framework for the preparation of this Sustainability Report. By doing so we aim to generate reliable, relevant and standardized information with which our stakeholders can assess our opportunities and risks, and enable more informed decision‐making - both within the business and externally. It is our intention over the next two years to continually improve our disclosure and engagement so as to achieve fully compliant GRI G4 reporting.

This Sustainability Report forms part of our annual reporting suite of documents. These documents are all available online at www.cimic.com.au

Report boundary and scope

This Report is for the 12 month period to 31 December 2015, unless otherwise noted. The scope of this report covers all of the CIMIC and its 100% controlled operations which include:

• CPB Contractors Pty Ltd (formerly Leighton Contractors Pty Ltd, with the name change effective from 4 January 2016);

  
  

• Thiess Pty Limited;

• EIC Activities Pty Ltd;

• Pacific Partnership Pty Ltd;

• Leighton Asia Limited, including Leighton India and Leighton Offshore; and

• Leighton Properties Pty Ltd.

  CIMIC Group Limited and its 100% owned operations are referred to in this Sustainability Reports as the CIMIC Group or the Group.

  At this stage, the scope does not extend to include the operations of the CIMIC Group's investments, where the CIMIC Group does not have 100% ownership, namely:

• Devine Limited: CIMIC owns a 59.1% stake (as at 31 December 2015) in the listed property development company;

• Ventia: CIMIC holds 50% of an investment partnership for the merged services business of CPB Contractors and Thiess;

• Habtoor Leighton Group: CIMIC holds a 45% share in the Middle East‐based construction company;

• Sedgman Limited: CIMIC owns a 46.4% stake (as at 5 February 2016) in the listed resources engineering company;

• Nextgen Group: CIMIC holds a 28.9% stake (as of 31 December 2015) in the telecommunications network, data centre and cloud services provider; and

• Macmahon Holdings Limited: CIMIC owns a 19.7% stake (as of 31 December 2015) in the listed mining contracting company.

In December 2014, the Group sold 100% of its shareholding in the John Holland Group (JHG) to CCCC International Holding Limited and 50% of its share of the Thiess Services and Leighton Contractors Services businesses (Services) to funds managed by affiliates of Apollo Global Management, LLC (Apollo), and entered into a joint venture with

Apollo. As the Group no longer controlled JHG or Services (now called Ventia), the transaction was recorded as a disposal of controlled entities during the period to 31 December 2014. The sales of JHG and Services were completed in April and March of 2015 respectively and they are not included in this Sustainability Report.

Monetary amounts referred to in this report are reported in Australian dollars, unless otherwise stated.

Availability of Information

In 2014, the Group commenced a significant restructure, establishing dedicated, streamlined and efficient businesses focused on contract mining services (Thiess), construction (CPB Contractors and Leighton Asia), public private partnerships (Pacific Partnerships), and engineering (EIC Activities).

Given this transformation, a number of comparable operational safety and environmental performance measures are not available prior to the 2015 year on which we are currently reporting. Where comparable data is available, it has been provided. In future reports, the Group expects to be able to provide more detailed operational performance measures by Operating Company.

External assurance

This report, prepared using the GRI G4 as a framework, has not been externally assured. It is our intention within the next two years to have our Sustainability Report externally assured.

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