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 is aligned with AA 1000 AccountAbility’s five-part Materiality Test. The materiality principle is applied using a process that aligns with Global Reporting Initiative (GRI) Standards 101 (clause 1.3), 102-44, 102-46 and 102-47 on defining content and boundaries.

Sembcorp Marine’s material issues are:

CORPORATE GOVERNANCE

BUSINESS INTEGRITY

Business integrity through good corporate governance and effective risk management processes is vital to safeguarding 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 gain the trust and confidence of its customers, investors, partners and other stakeholders. Operating with ethics reinforces Sembcorp Marine’s corporate values, while setting a tone of morality for the community in which it influences.

Approach:

Sembcorp Marine seeks continuously to secure the trust and confidence of customers, investors, partners and other stakeholders, by upholding its reputation as a well-governed and socially responsible company. This is achieved through the Group’s commitment to effective governance and prudent decision making, enabled by effective risk management processes and robust internal controls, vital to safeguarding the long-term interests of stakeholders and the Group’s assets. The Group embeds the principles of transparency, professionalism, fairness and integrity in compliance with legal regulations across its global network, and does not tolerate bribery and corruption in its dealings and operations.

Material impact:

Customers, Employees, Business Partners, Financial & Investment Communities, Regulators

ECONOMIC

INNOVATION & SOLUTIONS DEVELOPMENT

Sembcorp Marine invests in innovation to develop sustainable and cost-competitive solutions that add value for stakeholders, generate new income streams and create opportunities for future growth. As a key thrust of the Group’s business strategy, Sembcorp Marine targets to expand and diversify its portfolio of products, services and technologies to offer customers innovative and customised solutions across the offshore, marine and energy value chains. Diversity in the Group’s product mix strengthens its versatility and resilience, which helps mitigate cyclical risks in the industry. Process innovation continuously enhances Sembcorp Marine’s safe and efficient operations, ensuring competitiveness and sustaining business growth.

Approach:

Sembcorp Marine adopts a three-pronged approach in researching, developing and collaborating on innovation and solutions development. Through in-house expertise and an extensive network of partners, the Group expands and accelerates the discovery and creation of emerging technologies and new opportunities. The Group works actively to initiate, evaluate and manage the development and deployment of new products, technologies, systems and processes. These range from identifying emerging technologies to designing, prototyping, test-bedding and commercialisation.

Material impact:

Customers, Business Partners, Technology Partners, Financial & Investment Communities, Regulators

CUSTOMER ALIGNMENT

Growing a strong customer base, creating brand loyalty and building trust are vital to Sembcorp Marine’s profitability and growth. It is crucial to have a keen understanding of the market environment in order to develop products and solutions that fulfil the needs and requirements of customers. Sustainability impacts are taken into account during the conceptualisation and development of the Group’s products and solutions. Sembcorp Marine aims to be the partner of choice for offshore, marine and energy customers.

Approach:

Regular engagement via multiple platforms at different levels of operation and management enables Sembcorp Marine to build a holistic approach to engaging customers. Customer retention and satisfaction levels are tracked as key indicators for economic performance and business resilience. Consistent and excellent quality, safety and environmental performances are achieved by robust management systems – such as a customer relationship management framework, processes for ISO 9001, OHSAS 18001 and ISO 14001 certifications, audit systems and customer satisfaction feedback gathering – that ensure effective collaboration, timely response to feedback, as well as high standards of quality, safety, environment and operational performance.

Material impact:

Customers, Employees, Business Partners, Financial & Investment Communities

ENVIRONMENTAL

ENVIRONMENTAL SUSTAINABILITY

To address global issues of resource scarcity and a changing climate, Sembcorp Marine recognises the importance of integrating environmental considerations into the Group’s business decisions. Managing the environmental impact of its operations enables the Group to do its part to secure a sustainable future and create value for stakeholders. This also brings about commercial benefits, better risk management and enhanced competitiveness for the organisation.

Approach:

Sembcorp Marine strives to achieve environmental sustainability and continuous business growth through three key drivers: Green, smart and efficient operations; environmentally-friendly products and services; and responsible supply chain.

Sembcorp Marine’s Environmental Policy identifies the key aspects of the Group’s environmental management systems. The Group uses a precautionary approach by developing a comprehensive Environment Impact Assessment (EIA) to identify, assess and address environment-related aspects and impacts.

The assessment includes climate change, waste and recycling, air quality, and resource consumption. Regular audits for compliance with local regulations and international standards are undertaken as part of ISO 9001 and ISO 14001 certification requirements. Reviewed annually, Sembcorp Marine’s environmental policy and practices encompass all employees, contractors and customers.

Anchored by an innovation culture, disciplined technology research and engineering development capabilities, Sembcorp Marine offers a suite of products that are cost-effective, safe, smart, superior and environmentally-friendly for customers, the industry and the community.

Material impact:

Customers, Employees, Business Partners, Community, Regulators

SOCIAL

HUMAN CAPITAL

Human capital is a key lever for Sembcorp Marine’s continuous growth and success. The management approach focuses on enhancing workforce competencies and capabilities, talent management and leadership development as well as employee engagement and wellbeing. Preparing the next generation of leaders as part of succession planning is important to Sembcorp Marine’s long-term progress and competitiveness.

Approach:

Sembcorp Marine complies with the labour laws in its various countries of operation, including fair employment guidelines in accordance with the Ministry of Manpower Employment Act of Singapore, which is a member country of the International Labour Organization (ILO). Aligned with the United Nations Guiding Principles on Business and Human Rights as well as tenets advocated by Singapore’s Tripartite Alliance for Fair and 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 workforce development; competence-building and skills enhancement; organisational development; as well as cultivation of a strong company culture and identity. The Group seeks to offer a compelling employment experience, competitive compensation and benefits, opportunities for personal and professional development, as well as an enriching environment that promotes merit-based progression.

The Group gears its people development systems towards business excellence to support the attainment of recognised accreditations, such as ISO 9001 and People Developer Standards, which involve structured review and evaluation processes. Various engagement platforms and communication channels gather employee feedback in order to achieve continuous improvement.

Material impact:

Customers, Employees, Business Partners, Community, Regulators

TOTAL WORKPLACE SAFETY AND HEALTH

Sembcorp Marine is fully committed to creating and maintaining a culture where safety is at the forefront of all its operations. The Group actively mitigates health and safety risks in the workplace. Measures are in place to ensure that employees, contractors, suppliers and other stakeholders uphold high standards of occupational safety and health.

Approach:

A Health, Safety, Security, Environment and Quality Policy governs Sembcorp Marine’s approach to total workplace safety and health. It ensures that the Group comply with national legislation (e.g. Singapore’s Workplace Safety and Health Act), international regulations and recognised standards (e.g. OHSAS 18001 and SS 506). The Group’s workplace safety and health (WSH) strategy comprises four pillars: enhancing HSE competencies and capabilities; building up commitment and leadership towards a better WSH culture; garnering support from stakeholders; and continuously improving risk and safety management systems. The Group’s WSH strategy is integrated into all levels of operations and overseen by the Board Risk Committee. Regular reviews are conducted to evaluate the Group’s WSH strategy and performance.

Material impact:

Customers, Employees, Business Partners, Community, Regulators

COMMUNITY ENGAGEMENT

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:

Sembcorp Marine’s community engagement strategy focuses on Community Care, Environmental Care, Youth and Education, Industry Outreach, and Active Lifestyle and Culture. The Group contributes to society through various activities that support capability development, education outreach, employment creation, community building and social improvement. Regular reviews are conducted to evaluate the scope of Sembcorp Marine’s social outreach efforts and the effectiveness of its community initiatives. The Group’s community engagement strategy is aligned with ISO 26000 Guidance on Social Responsibility.

Material impact:

Customers, Employees, Business Partners, 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 sustainability reporting approach and stakeholder engagement here

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