Report to Shareholders 2018
Report to Shareholders 2018
Report to Shareholders 2018
We are committed to sustainability, and consider environmental, social and governance issues in the determination of our strategy and policies. Our approach to sustainability starts with our goal to run a profitable, safe and responsible business providing the best value proposition to customers, making a difference to the wider community, and contributing to a sustainable future.
Keppel Corporation is a signatory of the United Nations (UN) Global Compact, and we are committed to the Compact’s 10 universal principles. We are also committed to working towards the achievement of the Sustainable Development Goals, and have incorporated 10 of the goals as a supporting framework to guide our sustainability strategy.
Material issues affect our ability to create value in the long term, and influence the decisions of our stakeholders.
A robust process was undertaken to identify and prioritise Keppel Corporation’s material environmental, social and governance (ESG) issues. The process was supported by an independent consultant and involved stakeholder consultations, workshops for senior management, an assessment of long-term global trends and an internal review of our businesses. The material ESG issues for Keppel Corporation were reviewed in 2018 and deemed to remain relevant.
Keppel provides solutions for sustainable urbanisation, with key businesses in Offshore & Marine, Property, Infrastructure and Investments.
Click here for more information on how we create value through our business model.
Our approach to sustainability starts with our goal to run a profitable, safe and responsible business providing the best value proposition to customers, while guided by our core values and operating principles.
The company’s sustainability strategy is guided by the three thrusts of Sustaining Growth, Empowering Lives and Nurturing Communities.
We are committed to investing in the development of our people. We adopt merit-based recruitment practices and emphasise diversity and inclusiveness. In our recent employee engagement survey, 87% of our employees indicated that they would “go beyond the norm” to contribute to Keppel’s success. The survey results guide us as we continue to build a motivated and resilient workforce.
Customer satisfaction is crucial to the success of our businesses. We are committed to continually improve our range of products to better meet customers’ needs, and we harness insights from our engagements with customers.
Governments shape the business environments in which we operate. Political factors, policies and regulation can affect how businesses are run and create new opportunities for companies. We track topics of concern to governments and regulatory bodies wherever we operate.
Shareholders play an important role in the financing and governance aspects of our business. Our Investor Relations Policy sets out the principles that the Company abides by to help shareholders and prospective investors make well-informed decisions and ensure a level playing field.
Strong, effective relationships with our suppliers give our businesses strategic advantages, including better value. By effecting stringent procurement processes and a Supplier Code of Conduct, we aim to encourage our suppliers to adopt sustainable practices.
As active members of our communities, we aim to contribute towards their continued well-being. We engage community leaders to develop impactful programmes that drive community development.
Keppel is focused on upholding high standards of corporate governance. We have a strong and independent board, and are committed to good business ethics. We maintain clear, consistent and regular communication with shareholders.
The Framework outlines the Group’s internal control and risk management processes and procedures. The Framework comprises three Lines of Defence towards ensuring the adequacy and effectiveness of the Group’s system of internal controls and risk management.
Keppel’s core values of integrity, accountability, people-centredness, safety, among others, along with our operating principles, guide management and staff in the conduct of our businesses.
Effective risk management hinges not only on systems and processes, but equally on mindsets and attitudes. The Group fosters a risk-centric culture that enables us to continue to respond effectively to the dynamic business environment, shifting business demands and to seize new value-added opportunities for our stakeholders.
Click here for more information.
The Company’s balanced scorecard aligns compensation with corporate and individual performance, both in terms of financial and non-financial performance.
There are four scorecard areas that the Company has identified as key to measuring the performance of the Group:
Some of the key sub-targets within each of the scorecard areas include key financial indicators, safety goals, risk management, compliance and controls measures, sustainability efforts, employee engagement, talent development and succession planning.
The four scorecard areas have been chosen because they support how the Group achieves its strategic objectives. The framework provides a link for staff to understand how they contribute to each area of the scorecard, and therefore to the Company’s overall strategic goals. This is designed to achieve a consistent approach and understanding across the Group.
The key material environmental, social and governance factors for Keppel Corporation have been identified and are regularly reviewed by Keppel Corporation’s Board of Directors and management. The Board oversees the management and monitoring of these factors and takes them into consideration in the determination of the Company’s strategic direction and policies.
The Group Sustainability Steering Committee, chaired by Keppel Corporation’s Chief Executive Officer Loh Chin Hua and comprising senior management from across the Group, provides guidance on the Group’s sustainability strategy while the Group Sustainability Working Committee, comprising discipline-specific working groups, executes, monitors and reports on the Group’s efforts.
Our management systems, policies and guidelines, including our Employee Code of Conduct; Health, Safety and Environment Policy, and Supplier Code of Conduct, translate our principles into practice by setting standards both for our Company and those whom we work with.
Keppel became a signatory of the United Nations (UN) Global Compact, the world’s largest corporate sustainability initiative, in 2018. We are committed to upholding the Compact’s 10 principles on human rights, labour, environment and anti-corruption, which resonate strongly with our own core values.
Keppel believes that businesses can play an important role in contributing to the achievement of the Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development. We firmly believe that a company that is aligned with the global sustainable development agenda can not only enhance its social licence to operate, but also improve the sustainability, efficiency and competitiveness of its business. Having reviewed how our different businesses can contribute to each of the SDGs, we have incorporated the goals where appropriate, as a supporting framework to shape and guide our strategy. In our reports, we describe how Keppel is contributing to ten of the SDGs.
Keppel Corporation is listed on various sustainability indices and rankings, including the MSCI World ESG Leaders Index, Euronext Vigeo Eiris Index – World 120, as well as the iEdge SG ESG Leaders Index and iEdge SG ESG Transparency Index by the Singapore Exchange. We also participate in the CDP (formerly Carbon Disclosure Project).
Keppel Corporation won the UN SDG Category at the Sustainable Business Awards 2018. The Awards, organised by Global Initiatives in partnership with PwC Singapore, recognise businesses with sustainable business practices.
The Company was also conferred Champion of Good 2018 by National Volunteer and Philanthropy Centre. This national recognition framework acknowledges companies that have been exemplary in their corporate giving efforts.
Keppel gives back to the community through financial contributions as well as volunteerism efforts. In 2018, Keppel invested $8.9 million in social causes, while Keppel Volunteers achieved over 14,000 hours of community work, touching the lives of over 2,600 beneficiaries. Keppel Care Foundation, the Group’s philanthropic arm, has disbursed $36 million to worthy causes since its launch in 2012.
We publish sustainability reports annually, and the next report will be published in May 2019. Our sustainability reports draw on internationally-recognised standards of reporting, including the Global Reporting Initiative Standards, and are externally assured in adherence to the AccountAbility AA1000 Assurance Standard. The report is also aligned with sustainability reporting requirements by the Singapore Exchange.
