environment at leighton contractors

Environment at Leighton Contractors


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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

A message from our Managing Director, Craig Laslett

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Contents

Introduction 05

Environmental Management Structure 06

The Leighton Contractors Operating Model 08

Safety, Health & Environment Business Standards 13

Environmental Management Systems 14

Environment Strategic Objectives 16


Our gOAL CONTrIBuTE TO AN ENVIrONMENTALLY SuSTAINABLE FuTurE.

Our OBjECTIVEMINIMISE Our IMPACT ON THE ENVIrONMENT IN WHICH WE OPErATE.

Our CurrENT FOCuSEMBED ENVIrONMENTAL PrOCESSES WHICH MINIMISE Our ENVIrONMENTAL IMPACT.

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IntroductionA 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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Safety, Health and Environment Organisational Structure

Leighton Holdings Limited (LHL)

Leighton Contractors Board

Managing Director

Executive Leadership Team (ELT)

SHE Executive

Leighton Contractors Divisions

Projects/Mines/Facilities

Projects SHE Managers

Operational SHE Personnel

Operational SHE Managers

Group SHE Team

Group SHE Forums

GM SHE

Leighton Contractors SHE Board Committee

Environmental Management StructureLeighton 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.

Leighton Contractors Business Units


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.

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.

The Leighton Contractors Operating Model - an Environment perspective

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Strategy & Business Planning

Winning & Doing Work

Safety, Health & Environment

People & Capability

Plant & Asset Management

Procurement & Supply Management

Business Excellence

Corporate Affairs & Communications

Business Support & Shared Services

Environment

People & Capability

Etc.

Environment

People & Capability

Etc.

Business Standards

Tools & Knowledge

Business Processes

Group Forums

Division Forums

‘Our Way’G

roup

Div

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Coord

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ion

Div

isio

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tandar

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&

Pro

cess

es

Coord

inat

ion

Gro

up S

tandar

ds

&

Pro

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es

The way ‘I’ operate

Areas

Divisional Leadership team

Executive Leadership team

Str

ategic

Outc

omes

Cor

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urp

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� 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.

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

� 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.

SHE Executive

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

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

These forums consist of divisional and group SHE leaders.

Strategic Outcomes

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

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

Core Purpose

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

Values - Leadership - Excellence

Business Standards

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.


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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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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.


Leighton Contractors Environmental Management SystemsEach 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

Leadership

Management Review

Policy & Planning

Measurement & Evaluation

Risk Management

Implementation & Operation

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2013-2014 Environment Strategic Objectives

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.

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

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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.

From the ELT, through each layer of management, senior management practices are vital in creating the required level of awareness, engagement and action on environmental initiatives.

The following points summarise our planned approach to, and focus on, leadership throughout 2013, with a view to building on these platforms through to 2014.

Our current commitment to leadership initiatives:

� The National Environment Network (NEN) meets quarterly.

� 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.

� Functional and plant representation in all initiatives where benefits are obvious.

Throughout 2013/2014 there will be a focus on increasing the level of leadership visibility and focus on environmental issues and initiatives.

“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

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


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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.

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.

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


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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

Inductions

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.

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.

Leadership and Management Programs

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.

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


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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.

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.

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


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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.

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.

Group SHE Forum

� Monthly SHE strategy meetings actions and messages

� Performance Reports

� SHE Management System development

� Project Leadership Visits

� Divisional forums and meetings

� Divisional campaigns and communication

� Lessons Learnt/ Environment Alerts

� Excellence Awards

� Intranet

� Industry updates

Operational SHE Teams

� Performance reports

� Divisional forums and meetings


� Lessons Learnt/Environmental Alerts


� Intranet


Frontline Leaders (PMs, Supervisors, Leading Hands etc)

� Tool box talks

� Lessons Learnt/Environment Alerts



� Training

Project Crew

SHE Executive

� Monthly SHE strategy meetings actions and messages

� Business Standards

� Project Leadership Visits

� MD and EGM messages

� Green Book

� Intranet


� External industry awards


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:

� 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.

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

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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.

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: ARM Above: ICAM


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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.

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

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.

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

Environment KPIs

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

Cintellate 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

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Monitoring our performance


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Our CurrENT FOCuS rEMAINS...TO EMBED ENVIrONMENTAL PrOCESSES WHICH MINIMISE Our ENVIrONMENTAL IMPACT.

environment at leighton contractors

Documents

natural environment

environmental impact

environmental activities

environmental damage

environmental controls

environmental issues

current environmental

energy management