Environmental, Social and Governance

Progress of our Environmental, Social and Governance (ESG) objectives and our corporate responsibility program contribute to the Group’s social license credentials. WorleyParsons is committed to working responsibly and is positioned to help customers meet their own ESG objectives.

Progress and Milestones

Governance

As an Australian incorporated company, WorleyParsons Limited complies with the Corporations Act 2001. In addition, as an entity listed on the Australian Securities Exchange (ASX), WorleyParsons Limited complies with the ASX Listing Rules. Our Corporate Governance Statement, reports on the 3rd Edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations and is located in the Investor Relations section of our Company website. A working group has commenced to review and design an implementation program to adopt the 4th Edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations within the required time frame.

ESG Reporting

Since 2012, we have been structuring our corporate disclosure through an integrated reporting process aligned to leading international reporting standards. This year, we delivered ESG-related reporting for:

  • the 6th year aligning with the internationally-recognized GRI sustainability reporting framework;
  • the 6th year in fulfilling the Group’s obligations as a signatory to the United Nations (UN) Global Compact;
  • the 2nd year of adopting the UN Sustainable Development Goals;
  • the 9th year participating in the Carbon Disclosure Project (CDP) sharing how we measure, disclose and manage vital environmental information; and
  • investor presentations and also complying with all mandatory diversity reporting requirements, including Australian and UK, relevant entities submitted Workplace Gender Equality Reports for the reporting period.

 

Climate Change

WorleyParsons has a climate change position statement underpinned with strategic actions that forms the focus of our climate change program. So far the program has embedded climate change considerations within our core risk and strategy processes and has started to assess climate-related risks and opportunities. This program takes account of the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). The TCFD followed the 2016 Paris Climate Agreement and aims to assist organizations like ours to take account of climate-related issues and disclose the financial impact that climate risks have on business.

We will continue to analyze our physical and transitional exposures to climate change and the risks and opportunities it presents to our business.

Climate change position statement

We recognize that climate change will have significant implications for the industries we serve. Together with our customers and industry partners, we use the principles of EcoNomicsTM and the UN Sustainable Development Goals to help drive solutions for a lower carbon world. We are committed to being part of the solution, to reducing our own emissions intensity and protecting our people and assets from the physical impact of climate change.

Climate change strategic actions

We have committed to the following strategic actions:

  • minimizing our own carbon emissions;
  • responding to our industry and customers’ climate change needs;
  • protecting our people and assets from the physical and transitional impact of climate change; and
  • demonstrating our corporate commitments to climate change as we educate, measure and report progress on our climate related disclosures.

Responsible business assessments

We want to know that our customers take a responsible approach to business as seriously as we do. Responsible business assessments are embedded within our sales processes and risk assessments for new projects and contracts across our business, assessing the risk profile of customers and projects. This year, we introduced assessments for ethical business practices, carbon emissions intensity and social license.

Databases and tools provide information regarding legal judgments or equivalent for:

  • bribery and corruption;
  • human rights violations;
  • environmental damages;
  • labour management issues and
  • safety

Economic contribution through taxes paid

With approximately $450 million paid in effective tax contributions in FY2017, there is a significant indirect economic contribution made in economies where we operate. As our employees spend their wages locally on diverse goods and services, there is a further, indirect economic contribution. We do not measure this indirect economic benefit globally, but it is an important component of our contribution in the 42 countries where we operate.

Data protection and cyber security

Protecting the personal information of our people and information of customers and our business is a priority. With increasing risks and regulatory expectations, we now have a dedicated team who manage the exposure with a number of enhanced solutions such as intrusion blocking, virus detecting/cleaning, data encryption and system monitoring software systems in place to prevent and/or stop unauthorized system activity.

Corporate responsibility materiality review

We asked our stakeholders what sustainability issues, risks and opportunities aligned to the UN Sustainable Development Goals, are important to them and our business. The ranked results are plotted on a materiality matrix and are reviewed by our leadership team to consider within strategy and risk processes.

Ethics and whistle blowing

This year, our Code of Conduct training was delivered to more than 25,000 contractors, employees and business partners. An ethics helpline is available to all our people in 42 countries.

Our enhanced Whistle Blowing Policy provides protection to whistle blowers and encourages reporting of contraventions. The key mechanisms for the protection of whistle blowers are confidentiality, anonymity, protection of employment conditions and appropriate support to prevent any other forms of retaliation.

WorleyParsons complies with all applicable prevention of bribery and corruption legislation, extends the requirement of compliance, including the prohibition of facilitation payments, and has zero tolerance for bribery, fraud and other types of corruption. We continue to apply our Gifts and Entertainment Policy with a strict protocol for registering gifts and entertainment.

Safety

Our teams have maintained an industry-leading performance in safety. Over the past 10 years, OneWayTM has been the integrity framework guiding the way we work throughout WorleyParsons. It encompasses the tools and processes that we follow to ensure the wellbeing of people, assets and the environment. Recently, we have recognized that we should incorporate the principles of human performance, which is in line with our customers and industry. OneWayTM will evolve to reflect these changes.

Transparency and communications

As an Australian incorporated company, we comply with the ASX Listing Rules. Those rules require listed entities to publish a corporate governance statement and other key documents on their company websites and to provide periodic and continuous disclosure to the market.

We updated our company website and reached out to over 500,000 followers of our social media platforms to communicate to our broader community.

Internal communication websites, online discussion groups and emails are used to deliver important messages. Our people are encouraged to openly share their opinions, subject matter expertise and voice their concerns.

Corporate Responsibility Program

As a company and as individuals, we encourage everyone to be a partner in delivering sustained economic and social progress.

The willingness of our personnel to volunteer their time and make donations in support of their local corporate responsibility activities was a key driver to the success of our corporate responsibility achievements for the financial year ended 30 June 2018 (FY2018). Contributions to developing our local communities via skills transfer, education, local employment and enterprise development are providing support to our aims of long term positive social impact and hence helping the UN Sustainable Development Goals.

The target set for greenhouse gas emissions for FY2020 was achieved and we have seen progress towards gender diversity with the FY2020 measurable objective for woman senior executives met in FY2018.

For FY2018, we saw an increase in volunteering hours, contributions by our people and active champions throughout our virtual corporate responsibility network.

The WorleyParsons Foundation continues to grow, supporting an even more diverse range of activities and projects across the globe, providing the Group with larger-scale opportunities to deliver tangible positive outcomes and enhance the Group’s social impact.

We remain staunch in our support of diversity including indigenous participation and human rights with a number of key initiatives supporting gender equality.

In FY2018, our global gender pay gap between male and female remuneration has reduced.

Corporate Responsibility Policy

WorleyParsons is committed to working responsibly with our customers and suppliers to achieve results that grow our Company, reward our shareholders and our people and contribute to our communities. We acknowledge our responsibilities to the communities in which we operate. Our Corporate Responsibility Policy outlines our commitments to: Governance, Ethics and Transparency, Our People, Human Rights, Community, Fair Operating Practices and Supply Chain, and the Environment.

Supporting local communities through our network of volunteering
corporate responsibility champions. The Big Umbrella, Melbourne.

WorleyParsons Foundation

The WorleyParsons Foundation objectives are to:

  • support the execution of high impact strategic community projects;
  • become a vehicle for direct corporate investment, fundraising and volunteering;
  • expand opportunities for Group personnel to be directly or indirectly involved in Foundation activities; and
  • raise awareness of WorleyParsons’ corporate responsibility credentials with its stakeholders.

The WorleyParsons Foundation recognizes and acknowledges employees for their personal contribution in activities that help promote our key corporate responsibility themes. The Foundation Awards are now entering their sixth year. In FY2018, awards were given to over 700 individuals in 48 offices in 31 countries. They were responsible for championing social impact by taking the lead in local volunteering activities.

All our selected WorleyParsons Foundation projects involve skilled volunteering from our people alongside financial contributions, delivered in a pro bono offering. The social impact delivered from a broad range of WorleyParsons Foundation projects continues to grow with these projects supported in FY2018:

  • sponsoring another 16 WorleyParsons employees to attend the Pollinate Energy Fellowship Program, India;
  • supporting water extraction and donating water management equipment to the refugee communities in Kakuma, Uganda;
  • enhancing community projects with technical studies prompting solutions for water and sanitation in small communities, Papua New Guinea;
  • installing water solutions to community schools in the Lake Turkana region working with Winds of Change, Kenya;
  • supporting engagement in high schools through Power of Engineering across Australia and other selected offices;
  • supporting micro-finance and education programs with Opportunity International, India;
  • expanding accommodation and activities for disadvantaged kids at Five Acres, USA;
  • supporting Houston Hurricane recovery efforts of United Way, USA;
  • supporting the Cystic Fibrosis Foundation via the 21st Annual Breath of Life Golf Tournament, Houston;
  • installing water facilities and solar power and refurbishing school facilities across a number of villages, India;
  • supporting water and sanitation workshops with the Centre of Affordable Waste and Sanitation Technology, Colombia; and
  • sponsoring film production celebrating local culture, Timor Leste.

Corporate responsibility materiality review

A corporate responsibility materiality review was conducted where we asked over 500 of our stakeholders what sustainability issues, risks and opportunities are important to them. These ranked results, aligned to the UN Sustainable Development Goals, have the most potential to impact our business and are important to our stakeholders.

Issues of most concern across stakeholders with the highest impact on WorleyParsons

  • Affordable and clean energy
  • Decent work and economic growth
  • Industry, innovation and infrastructure
  • Climate action
  • Clear water and sanitation

Further information on our corporate responsibility materiality review and the associated materiality matrix is included in the 2018 Corporate Responsibility Performance Report.

Activity highlights

In addition to supporting our customers on their sustainability programs through our project delivery and consulting services, the Group undertook various corporate responsibility activities across our operations independent of customer influences in FY2018, including:

  • participating directly in and reporting over 390 corporate responsibility activities across 31 countries, involving over 11,000 Group personnel;
  • supporting local communities through the network of corporate responsibility champions across 48 offices;
  • granting over $80,000 in scholarships and supporting education via 89 corporate responsibility activities with over 7000 volunteering hours. One example is WorleyParsons support for the international
    internship program of the Australian Government’s Colombo Plan;
  • reducing carbon emissions across a number of offices through office consolidation; LED lighting replacement; behavioral change programs; encouraging the use of public transport; flexible work options from home and recycling while also encouraging carbon offsets with tree planting;
  • demonstrating responsible attitudes to water and sanitation with a recognized stewardship program in Colombia, Papua New Guinea, Singapore and rainwater recycling in South Africa; and
  • participating in and contributing to various workshops and forums on sustainability, diversity, anti-corruption and human rights issues.

Diversity and inclusion highlights

The Group undertook various diversity and inclusion activities in FY2018, including:

  • establishing our FY2018 diversity plan, with a focus on increasing gender representation at all levels, agreed by each leadership team;
  • implementing our inaugural talent sponsorship program for active development of our top female talent;
  • conducting gender pay gap assessments across comparable roles, tiers and regions, where our global gender pay gap between male and female remuneration has reduced approximately 1% (varying by office). At the manager and senior manager roles, the salary gap reduced by approximately 1% and 3% respectively;
  • delivering cultural awareness, inclusive recruitment and promotion training and bias awareness workshops in some locations; and
  • supporting diversity and Women of WorleyParsons networks across 21 regions, prompting local activities and progress via internal news websites.

Corporate Responsibility indicators

Our teams continue to consolidate Group level reporting across a number of key indicators that track our progress in Corporate Responsibility.

We continued our global champion forums to provide guidance and support for corporate responsibility and diversity and inclusion initiatives and promote engagement with local networks. These champions report progress and tracking of contributions by Group personnel and the Group’s business operations are measured in terms of Australian dollar contributions and volunteer time contributions.

The Group uses the United States Occupational Safety and Health Administration reporting requirements for Total Recordable Case Frequency Rate (TRCFR) and Lost Workday Case Frequency Rate (LWCFR). The Group also measures online training hours.

The Group’s corporate responsibility indicators for FY2018 were:

  1. Definitions and clarifications, refer here

The Board has set measurable objectives for achieving gender diversity. FY2018 shows encouraging progress, and the Group is focused on improving our female representation with the proportion of women employees within the Group, women in senior executive positions and women non-executive directors, to achieve our target. The Group’s progress over time is included in the 2018 Corporate Governance Statement and progress towards achieving the objectives in FY2018 is set out in the table below:

  1. This includes both the Group’s employees and contractors.
  2. Senior executives comprise all employees and contractors at the CEO-1, CEO-2, CEO-3 levels.

As we adopt the recommendations of the TCFD, we have chosen to disclose a Climate Change Position Statement and strategic actions as part of our new Climate Change Program. We will continue to analyze our physical and transitional exposures to climate change and disclose our progress in FY2019.

The Group completed a response for the CDP for FY2017 which was reported in June/July 2018. The Group’s energy consumption and greenhouse gas emissions were recorded to assist the Group to measure and reduce its energy consumption and to reduce its greenhouse gas emissions. The data collection and analysis stimulated energy and carbon reduction measures in the global energy efficiency program in selected offices.

An energy target for FY2020 was set at 5% reduction of total carbon dioxide equivalents (tCO2-e) against base year FY2016. In FY2017, a reduction of 13% was achieved well above the four-year target. Consolidation of office areas has contributed to this reduction, along with building upgrades and locally-designed initiatives to reduce energy consumption.

Data for greenhouse gas emissions and energy consumption for FY2017 and FY2016 were:

  1. Personnel include employees and contractors.

Assurance

Independent assurance supports our commitment to transparency and accountability. To provide confidence to our stakeholders in our reporting, Ernst & Young provided limited assurance, in accordance with the Australian Standard on Assurance Engagements ASAE 3000, over selected corporate responsibility performance data. No significant changes have been made to these reporting processes since the last review. The assurance statement is accessed here.

Limited assurance is planned for FY2019 corporate responsibility indicators.

Corporate Responsibility Performance Report

A more comprehensive analysis of our corporate responsibility program and progress made is shared in the Corporate Responsibility Performance Report. The report is published annually and is issued as our ‘communication of progress’ for the United Nations Global Compact, showing how we have adopted the Global Reporting Initiative standard. For the 2018 Corporate Responsibility Performance Report, see here.

Awards recognizing ESG-Related achievements

WorleyParsons was awarded a silver recognition level by EcoVadis for our CSR Scorecard. This result places our Company among the top 30% of performers evaluated by EcoVadis.

 


WorleyParsons was recognized as a 2017 Top 100 Global Energy Leader and a Top 25 Oil & Gas Related Equipment and Services Global Leader by Thomson Reuters. The study, the first holistic assessment of its kind, objectively identifies today’s leading energy companies with the fortitude to excel in a complex business environment.


WorleyParsons was awarded the Global Mobility Team of the Year (large program) award at the FEM EMEA EMMAs (Expatriate Management & Mobility Awards). The awards celebrate the best and brightest of the global mobility industry and the supporting suppliers and vendors.


WorleyParsons was named in the top 15 EPC contractors in the Middle East by Refining & Petrochemicals Middle East.

 

 

 


WorleyParsons was named the fifth best International Design Firm by Engineering News Record, for the second consecutive year WorleyParsons has been named in the top five.

WorleyParsons was named in the Top 200 Environmental Firms by Engineering News Record. ENR’s list of the Top 200 Environmental Firms.


WorleyParsons was awarded the EPC Contractor of the Year Award at the second LNG Solutions Global Summit. WorleyParsons has also been shortlisted in the same category for 2018.

 

 


WorleyParsons was awarded the EPC Contractor of the Year Award at the second LNG Solutions Global Summit. WorleyParsons has also been shortlisted in the same category for 2018.

Awards recognizing our people

Paul Bauman, an expert geophysicist in Calgary, was selected for the prestigious Craig J. Beasley Award. Craig J. Beasley was the driving force behind the founding of Geoscientists Without Borders®. In recognition of this contribution, the Craig J. Beasley Award for Social Contribution is given to a person or organization that has made a meritorious achievement that supports the application of geophysics to a humanitarian, public service, or other socially significant cause.


Karl Qiu, President of WorleyParsons China, was honored as one of the Top 10 Economic Figures in China’s ICT industry during the recent 2017 China ICT Conference of Entrepreneurs. Karl delivered a keynote speech on ‘Digital Enterprises in the Industrial Big Data Age’ at the event and was recognized for his efforts in digital solutions for the industry.


William Beck, a WorleyParsons retiree, received the Construction Industry Institute’s (CII) Richard L. Tucker Award, in recognition of his significant contribution to the advancement of CII’s mission and success. William recently retired after serving WorleyParsons for 37 years.


Geeta Thakorlal, President of Advisian’s INTECSEA business, was given an honoree award at the Houston Business Journal’s second annual Women Who Mean Business Awards. The criteria for selection included career achievement, contribution to company and city success, community involvement and leadership.

Case studies showing how we support the UN Sustainable Development goals

Deploying a socio-environmental project in the Brazilian Amazon

Aimed at improving the lives of people in and around Altamira in the Brazilian Amazon, WorleyParsons teams are delivering a USD 2 billion project that includes constructing new housing, schools, sanitation and infrastructure as well as shipyards, a fish market and beaches. The sanitation efforts alone supply water and sewage for 100,000 people. Education activities have improved schools for 34,000 students and created classrooms for 15,000 additional children. The local economy has been strengthened with the construction of two shipyards, formation of 60 workers’ organizations, 13 occupational health and safety courses, an artisanal fishing center and a fish market. Infrastructure improvements are vast, including the development of nine bridges, 32 kilometers of roads, six berths, the Natural Park of Altamira and three beaches. Extensive social monitoring and small business support has also bolstered this community. “Using our expertise to benefit communities is the greatest reward of our profession,” said Neil Robertson, regional managing director and Group Leadership Team representative.


Finding clean water for nearly 600,000 refugees in Bangladesh

A WorleyParsons team performed a critical geophysical exploration for drinking water in the Kutupalong, Leda and Nayapara refugee camps, which were facing acute water shortages due to the lack of rain. A team of five WorleyParsons hydro-physicists, under a consulting agreement for the United Nations High Commission for Refugees, headed to Bangladesh to help find deeper wells. They used state-of-the-art mining and geophysical industry technology, such as: high resolution unmanned aerial vehicle (UAV) imagery, daily mapping and 3D interactive, cloud-based visualization technology. Our team have been long term supporters of water exploration for refugee camps. In 2016 and 2017, their water exploration resulted in clean water for 60,000 of the 185,000 refugees in Kakuma; and for 8,000 returnees to 22 villages and health clinics in Northern Uganda. The WorleyParsons Foundation is supporting the drilling and hand pump installation of 10 wells in the most recent Uganda project. “We were able to save the United Nations High Commission for Refugees months of drilling and exploration when our mapped area revealed big differences to theirs. We also found new possibilities for excavating and expanding existing surface reservoirs,” explains Paul Bauman, an expert Geophysicist, based in Calgary.


Working to find sanitation solutions in Papua New Guinea

Colleagues from WorleyParsons and Advisian headed to the seaside community of Hanuabada to show how remote skills can be brought together to make a big difference to projects such as World Vision’s Water, Sanitation and Hygiene (WASH) program in Papua New Guinea. In February 2018, three volunteers visited the coastal community of Hanuabada with three other volunteers providing expert technical input into the study from their respective offices. Under an arrangement with World Vision for provision of pro bono services, the volunteers led a feasibility study for the investigation and design of options for toilet systems to improve local sanitation conditions for the 12,000 people of Hanuabada. The WorleyParsons Foundation supported the non-labor costs and provided a donation to support the project execution. The team worked with World Vision and Asia P3 Hub to speak with various stakeholders in the community. “We were able to interview residents and meet and consult government representatives to gather insights while visiting existing toilet facilities,” says Rajiv Venkatraman, from Advisian in Melbourne. Our WASH experts have been invited to participate in the next phase of this project as well as other projects with World Vision in other countries.


Mumbai volunteers set up a bright future for six small villages

Over the past four years, a team of volunteers from WorleyParsons’ Mumbai office have had a significant impact on six humble villages on the outskirts of Mumbai, bringing much needed clean water, power and schooling facilities to the community. The Maya and Vishwas (meaning ‘hope’) projects were initially supported by WorleyParsons India in 2014 and became our benchmark WorleyParsons Foundation projects. Our passionate team of volunteers led by Jackin Ganger worked directly with the community to provide school infrastructure along with water and power for the remote communities. What started as one school on the outskirts of Mumbai has since grown to a total of four by the end of 2017 and two more community schools were updated in 2018. One of the principal objectives of the WorleyParsons Foundation is to bring about significant and sustainable changes in the lives of the underprivileged by undertaking life-changing projects for communities that will benefit their women and children in particular.

Supporting Indigenous people across the world

WorleyParsons is committed to meaningful engagement with Indigenous communities. We recognize that our success in doing this depends on our demonstrated understanding of and respect for cultural values and the social, environmental and economic issues that affect Indigenous people. We have adopted the term Indigenous consistent with United Nations nomenclature, however local preferences are respected and utilized across our business for Aboriginal, traditional owners, First Nations etc.


Australia
For the past five years, WorleyParsons’ Australia West business has welcomed Year 11 and 12 students into our workplace from Governor Stirling Senior High School. The aim of the work experience program is to expose the indigenous students to the diverse range of roles we have in our business to assist with their future career planning. Not only do the students enjoy the experience of seeing firsthand what engineers, cost controllers, environmental advisers and project managers do each day, our employees have gained an insight into Indigenous culture and how sharing their own career stories can inspire the students and provide future career options. To mark the five-year anniversary of the program, we were proud to welcome a group of students and teachers and the school’s dance troupe to our offices. The troupe performed traditional dances and shared stories of where they were from and the significance of their culture in learning and the workplace. The school also presented us with a recognition gift of a didgeridoo which will be engraved with the names of all of the students who have worked with us since 2013.


Canada
The Pond Inlet Small Craft Harbour is part of Advisian’s current Nunavut Marine Infrastructure Project with the Government of Nunavut. Advisian was contracted by the Government of Nunavut to provide engineering design and environmental baselines. An important component in our design and environmental work on this project has been obtaining and considering Inuit traditional knowledge from local hunters and fishers. A series of design workshops allowed members of the Hunters and Trappers Organization in Pond Inlet to work directly with our lead marine engineer, Harald Kullmann, and our Indigenous Knowledge lead, Diane Pinto, to provide valuable information on local site conditions, harvesting patterns, species of interest, travel routes and water/ice access. Inuit traditional knowledge was also obtained from interviews with key elders in the community and a focused workshop with hunters. The input resulted in design modifications to meet the needs of the community. Incorporation of Inuit traditional knowledge improved the team’s plan and design.

Also, WorleyParsonsCord supports Indigenous apprentices in Alberta. In 2017, thanks to a partnership between Red Deer College, Montana First Nation and WorleyParsonsCord, Red Deer College launched the Virtual Reality and Co-operative Trades – The Next Generation Program. The program offered Aboriginal students the opportunity to develop the skills and experience needed for careers in welding. The program is funded in part by the Government of Canada’s Flexibility and Innovation in Apprenticeship Technical Training program. The program included two groups of 25 students. “It’s awesome. Everyday we just get up, get ready, go to class and use the virtual welders. It’s good hands-on skills that are being taught”, said a welding student from the Montana First Nation. WorleyParsonsCord was the industry partner of the virtual reality welding program and provided work placement opportunities for three of the program’s first group of students.

 

United States
NANA WorleyParsons is a project delivery company focused on multidiscipline engineering and design, procurement and construction management services. Based in Alaska, our staff of project managers, engineers, designers and support personnel work in Anchorage, Kenai and client field operation facilities on the North Slope. Their extensive technical expertise in Arctic and Sub-Arctic engineering for remote locations is at the core of NANA WorleyParsons. Staff experience is backed by real-world success on projects often located in harsh and remote environments. NANA’s owners, or shareholders, are Iñupiat, meaning “real people” who have inhabited Northwest Alaska for more than 10,000 years. Iñupiat are part of the Inuit, or circumpolar Indigenous people of the world.