Material Issues and Stakeholder Engagement

Sembcorp Marine's sustainability strategy is centred on value creation for our shareholders, employees, customers, contractors, suppliers, partners and other stakeholders.

We closely engage our internal and external stakeholders through various platforms, including dialogue sessions and stakeholder engagement surveys, to understand their expectations and concerns.

The Group’s key material issues were ratified through a materiality assessment process, which employed AccountAbility’s Materiality Framework (2006-2013), included inputs from a five-part Materiality Test conducted in 2014 and incorporated materiality guidance from the Global Reporting Initiative (GRI) G4 sustainability reporting guidelines.

Sembcorp Marine’s material issues are:

ECONOMIC

INNOVATION & SOLUTIONS DEVELOPMENT

Sembcorp Marine’s drive to innovate and develop value-added, sustainable and cost-competitive solutions enables the Group to create new income streams and tap on emerging opportunities for future growth. A key component of Sembcorp Marine’s business strategy is expanding and diversifying its portfolio of products, services and technologies to offer customers innovative and customised solutions across the offshore and marine value chain. Diversity in the Group’s product mix strengthens its versatility and resilience so as to mitigate cyclical risks in the industry. Process innovation continuously enhances Sembcorp Marine’s productivity and efficiency, ensuring competitiveness and sustaining business profitability.

Approach:

Sembcorp Marine adopts a three-pronged approach to research, develop and collaborate on innovation and solutions development. Leveraging both in-house expertise and an extensive network of collaborating partners, the Group is focused on expanding and accelerating the search and creation of emerging technology and new opportunities. The company works actively to initiate, evaluate and manage the development and deployment of new products, technologies, systems and processes. These range from conceptualisation and prototyping to test-bedding and commercial implementation.

Material impact:

Customers, Investors, Regulators, Suppliers & Contractors

 

CUSTOMER SATISFACTION

Customers are important stakeholders and vital partners in Sembcorp Marine’s progress and success. It is crucial to forge sustainable partnerships with them and retain their loyalty for long-term business growth. Managing customer satisfaction is an important focus, as Sembcorp Marine takes pride in providing excellent service to its partners. The Group’s various measures of customer satisfaction provide leading indicators for its economic performance and business resilience. Customers’ inputs are highly valued as useful feedback for Sembcorp Marine’s operations, products and services.

Approach:

Sembcorp Marine’s approach focuses on ensuring that customers have full access to a range of communication channels; monitoring and maintenance of customer relationships; and ensuring timely action.

A customer relationship management framework is applied at the Group level with senior management oversight on customer satisfaction, retention and growth performance. The various yard facilities adapt these processes according to the nature of the projects and the customers they are managing. All of Sembcorp Marine’s yards are certified to the ISO 9001 Quality Management System, which includes both internal and external compliance audits.

Material impact:

Customers, Employees, Suppliers & Contractors, Shareholders, Financial Community

 

CORPORATE GOVERNANCE

BUSINESS INTEGRITY

It is vital to ensure business integrity through good corporate governance and sound risk management processes in order to safeguard the long-term interests of shareholders and the Group’s assets. Upholding Sembcorp Marine’s reputation as a well-governed and socially responsible company enables the Group to continually gain the trust and confidence of its customers, investors, partners and other stakeholders. The Group respects human rights and operates with professionalism, fairness and integrity in compliance with legal regulations across its global network. Committed to ethical business conduct, the Group does not tolerate bribery and corruption in its dealings and operations.

Approach:

Sembcorp Marine has comprehensive systems in place to promote business integrity and attain a high level of corporate governance, in line with its core values and Code of Business Conduct. Its corporate governance framework, which covers its Singapore and global operations, includes fraud risk management; anti-bribery and anti-corruption policies; as well as procedures and systems, which come under the oversight of Board-level Committees. Through stringent internal and external audit processes, the Group continually monitors, reviews and evaluates its business operations to ensure integrity and compliance with evolving standards and requirements. Sembcorp Marine’s corporate governance reporting and practices comply with the Code of Corporate Governance issued on May 2, 2012, by the Monetary Authority of Singapore.

Material impact:

Customers, Employees, Financial Community, Regulators

 

HEALTH, SAFETY AND ENVIRONMENT

OCCUPATIONAL HEALTH & SAFETY

Strict workplace health and safety standards give Sembcorp Marine a competitive advantage as well as a foundation for its operations. The Group upholds high standards of occupational safety and health to safeguard the welfare of its employees, contractors, suppliers and stakeholders.

Approach:

The robust Health, Safety and Environment (HSE) management systems at Sembcorp Marine and its yards ensure compliance with national and international regulations as well as recognised standards, such as OHSAS 18001 Occupational Health and Safety standards as well as Singapore’s Safety and Health Act. The key thrusts for the Group’s workplace safety and health (WSH) strategy involve enhancing its HSE competencies and capabilities; building up commitment and leadership towards a better WSH culture; garnering support from stakeholders; as well as continuously improving risk and safety management systems. The Group’s HSE strategy is integrated into all levels of operations, with oversight from the Board Risk Committee.

Material impact:

Customers, Regulators, Employees, Suppliers, Contractors, Shipyard Occupiers, Community

 

ENVIRONMENTAL PERFORMANCE

Sembcorp Marine recognises the importance of operating with minimal impact to the environment. The Group strives to do this while working towards operational competitiveness and sustainable growth.

Approach:

Sembcorp Marine’s environmental performance is managed as part of the Group’s broader integrated HSE management framework. Adopting a preventive approach, the Group employs processes for identifying, monitoring and mitigating its environmental impact with regard to emissions-induced climate change, waste management and the use of energy, water and resource materials. The various yard facilities undergo regular audits for compliance with local regulations and international standards. Sembcorp Marine’s environmental management systems cover employees, contractors, customers and shipyard occupiers, who are required to

abide by the Group’s policies and practices. In managing its environmental impact, Sembcorp Marine also promotes the adoption of eco-friendly technologies downstream to its customers.

Material impact:

Community, Customers, Employees, Contractors, Shipyard Occupiers, Regulators

 

PEOPLE

HUMAN CAPITAL

People are Sembcorp Marine’s most valuable asset. Supporting the Group’s corporate objectives, the strategic human resource management framework encompasses workforce recruitment, retention and development to meet current and future human capital needs. It is important for the Group to identify capable talent and groom the next generation of leaders as part of succession planning for Sembcorp Marine’s sustainable growth and long-term competitiveness.

Approach:

Sembcorp Marine complies with the labour laws in its various countries of operation, including fair employment guidelines in line with the Ministry of Manpower Employment Act of Singapore, which is a member country of the International Labour Organisation. Aligned with the principles advocated by the national Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP), the Group respects employees’ right to freedom of association and embraces fair employment, diversity and inclusivity at the workplace.

Sembcorp Marine’s human capital strategy covers the strategic thrusts of workforce development and retention, competencies building and skills enhancement, organisational development as well as forging a strong company culture and identity. The Group gears its people development systems towards business excellence to support the attainment of recognised accreditations – including ISO 9001, SPRING Singapore Quality Class, Singapore Innovation Class and People Developer standards – which involve structured review and evaluation processes. Various engagement platforms and communication channels are utilised to gather employee feedback, in order to achieve continuous improvement.

Material impact:

Regulators, Customers, Employees, Contractors, Community

 

COMMUNITY

COMMUNITY ENGAGEMENT

As a responsible corporate citizen and caring business organisation, Sembcorp Marine recognises the importance of active involvement in the community. Contributing towards community improvements and social advancements enables the Group to extend its positive influence as an agent for change and value creation.

Approach:

The Community Committee champions the Group’s community engagement strategy which focuses on ‘youth and education’, ‘community care and development’, ‘nation building’, ‘environmental care’, ‘arts promotion’, and ‘industry outreach’. Regular reviews are conducted to evaluate the scope of Sembcorp Marine’s social outreach efforts and the effectiveness of its community initiatives.

Material impact:

Employees, Community

Engaging Our Stakeholders

Sembcorp Marine leverages diverse platforms to engage different stakeholder groups. The feedback gathered from stakeholders through our ongoing engagement initiatives enable us to understand their expectations and identify areas for continuous improvement.

 

Read more on our approach to sustainability reporting and stakeholder engagement here

 

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Code of Business Conduct

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Verification Statement

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