Stakeholders and Engagement Platforms

Sembcorp Marine takes a long-term approach to creating value for our stakeholders. Throughout our value chain and project life-cycle processes, we closely engage different stakeholder groups through diverse platforms to understand their expectations and gather inputs for continuous improvement.

As part of Sembcorp Marine’s business transformation process, the Group reviewed inputs from Management, employees, independent consultants, and comparative studies in the sector and region. Feedback from the investment community was also obtained to identify and map stakeholders who influence, or are influenced by, Sembcorp Marine and its operations.

The process additionally established the objectives of engagement, channels of communication and methods to cultivate relationships that create mutual value and shared trust among stakeholders. Interaction with stakeholders takes place globally across Sembcorp Marine’s business operations and these stakeholders include:

Customers
Business Partners
Employees & Contractors
Investors, Finance Professionals & Media
Communities
Government & Industry Partners

Stakeholders	Stakeholders’ Expectations/Concerns	Activities in 2019	Engagement & Communication Platforms
Customers	Ability to offer reliable, competitive and cost-efficient solutions that are safe and environmentally responsible Proven track record of successful projects Timely delivery within budget Clear channels of communication Robust compliance Adherence to customers’ codes of conduct Top-down commitment to health, safety, environment issues and zero workplace incidents goal Accurate and timely information Flexibility to work together Solutions to fulfil new international environmental expectations	Regular customer surveys to gather comments and feedback Seminars and conferences promoting green technology retrofit solutions and LNG gas value chain capabilities Secured new long-term agreements for repairs and upgrades with: – Shell / GasLog – Solvang ASA Won biggest green technology retrofit contract (as at September 2018) from Maran Tankers for installation of scrubbers and ballast water management systems Delivery of: – First full turnkey newbuild harsh-environment Floating Storage and Offloading vessel (FSO) Ailsa to owner MODEC and operator TOTAL with zero lost-time incidents – Culzean wellhead, utilities & living quarters as well as central processing facility topsides project to TOTAL – Kaombo Norte and Kaombo Sul FPSO conversions to Saipem – Eight jack-ups (one to BOT Lease and seven to Borr Drilling) 296 vessels repaired/upgraded Achieved global record for the most LNG vessel repairs/ upgrades in 2018 (41 units) 10 cruise ships repaired/ upgraded for the year Ongoing communication of Sembcorp Marine Enterprise Compliance programmes with customers Mass toolbox briefing to all persons at work Exhibition participation and networking events organised for customers and other stakeholders in Singapore, Hong Kong, China, Japan, Greece, Spain, USA and Brazil	Cross-functional project meetings with customers Daily, weekly, quarterly and annual project coordination meetings and customer engagements Health, safety, security, environment and quality (HSSEQ) programmes Surveys Naming and delivery events for completed projects Participation in exhibitions and conferences Platforms to network and build relationships Corporate website, email and newsletters Dialogue sessions between customers and yard management Joint quality assurance and control checks, HSSE onsite inspections and emergency response drills with customers, contractors, vendors and stakeholders Social and community improvement programmes led by Sembcorp Marine

Stakeholders	Stakeholders’ Expectations/Concerns	Activities in 2018	Engagement & Communication Platforms
Business Partners	Compliance with: – Regulations – Code of Business Conduct – Supplier Code of Conduct – Human Rights Policy – HSSEQ policies and protocols – Terms and conditions of purchasing policies and agreements Business integrity and trustworthiness Training support Clear two-way communication Opportunities for growth and collaboration	Introduced Supplier Code of Conduct Continued application of sustainability criteria for the approved vendors list Mandatory declaration of compliance by suppliers and contractors with Sembcorp Marine Human Rights Policy and ethical codes of conduct Technical visits, factory acceptance tests and site audits for suppliers Technology sharing with key suppliers Provided sub-contractors with 262,174 hours of training Dialogue sessions at various levels ranging from management to operations Involvement of contractors in WSH improvement programmes Audits on resident contractors to assess performance, safety, quality, sustainability and social responsibility Over 130 HSSE drills bizSAFE certification Daily work briefings	Project planning platforms Declaration of ethical business practices Briefings on human rights and corporate governance compliance Sharing of best practices, technical developments and new technologies Supplier and contractor reviews and audits Training for contractor partners Joint HSSE emergency response drills Involvement in safety campaigns and events Joint site inspections of projects Regular dialogue platforms with senior management Social and community improvement programmes

Stakeholders	Stakeholders’ Expectations/Concerns	Activities in 2018	Engagement & Communication Platforms
Employees	Safe workplace Nurturing environment Human rights Fair labour practices and compensation Ethical work culture Career growth / personal development opportunities Training and upgrading Two-way communication platforms Reprisal-free processes for raising grievances and work concerns	Provided 450,972 training hours globally (average of 38 training hours per employee) Invested $6.20 million globally in employee training and development programmes Sembcorp Marine Academy employee training programmes Supported workforce development initiatives by Workforce Singapore (WSG) and National Trades Union Congress Employment and Employability Institute Participated in WSG Professional Conversion Programme to re-skill and upskill employees Partnered with ITE on the Work-Learn Technical Diploma for marine engineering courses Guidebook to the Code of Business Conduct available online Training on human rights, personal data protection, and policies relating to anti-bribery, anti-corruption and whistleblowing Regular engagement with unions 687 employee long-service awards presented Employee bonding and festive events Organised health promotion and total wellness initiatives for employees	Regular reviews and appraisals Employee dialogue sessions Surveys Briefings and toolbox meetings Meet-the-management sessions Online training Development programmes and training workshops/courses Union-management dialogues Promotion of anonymous and/or reprisal-free feedback platforms e.g. whistle-blowing channels and Stop-Work Authority programme Grievance/feedback channels Campaigns and recognition awards for WSH and innovation Long-service awards Social events, including festive celebrations Newsletters, posters and memos Regular updates through intranet portals/emails/memos Intranet platforms for policies, news and benefits Corporate website and email

Stakeholders	Stakeholders’ Expectations/Concerns	Activities in 2018	Engagement & Communication Platforms
Financial & Investment Communities and Media	Business resilience and financial performance Timely information Transparent, open and effective communication Responsible management Corporate governance and compliance	Publicly accessible results reports, CEO speeches, press releases, annual reports via corporate website, SGX and email Annual General Meeting for shareholders Bi-annual financial results briefings for analysts, bankers and media More than 590 teleconferences, meetings and engagements Communication channels accessible to all via website, email and telephone Learning tours for analysts, retail investors and media	Results announcements and news releases Regular reporting and communication platforms for shareholders Briefings for analysts and media Meetings, conference calls and site visits for analysts, fund managers and retail shareholders Roadshows and investor conferences Corporate website and email Ratings and rankings

Stakeholders	Stakeholders’ Expectations/Concerns	Activities in 2018	Engagement & Communication Platforms
Local Communities	Promoting community care and welfare Support for social, community, sustainability and industry causes Action on the ground from corporate social responsibility programmes	Contributions of more than $1.68 million to social, community and industry causes, e.g. SchoolBAG grants of $203,800 More than 6,680 hours of participation in community projects and volunteering activities by employees Launch of ITE Financial Assistance Grant, valued at $576,000 to be disbursed over two years Academic awards and bursaries totalling $82,650 disbursed to children of employees Launch of the Sembcorp Marine INSIGHT Programme to enhance learning of students through site visits to witness key project milestones Annual Green Wave Environmental Care Competition Coastal clean-up initiative Sponsorship and support of sustainability, social improvement and community development projects Sponsorship support for students from the Singapore University of Technology and Design for the Capstone project Festive activities for the less privileged	Multi-tiered financial assistance programmes Corporate website and email feedback channels Educational programmes Organisation of events Sponsorship of events Collaborations with educational, social and community institutions Volunteering initiatives Timely news releases Newsletters

Stakeholders	Stakeholders’ Expectations/Concerns	Activities in 2018	Engagement & Communication Platforms
Government & Industry Partners	Compliance with regulations Collaborative efforts to share knowledge Joint development and deployment of best practices Joint development of new technologies Joint management of resources and expertise Support for national initiatives	Site visits and dialogue sessions with government representatives Sponsorship/participation in local events to promote the industry and enhance strategic relations MOU with ABS and ASTAR’s HPC to develop new LNG technologies, applications and capabilities MOU with DNV GL, Singapore Institute of Manufacturing Technology, and National Additive Manufacturing Innovation Cluster (NAMIC) on development of Additive Manufacturing, Drone and Digital Twin technologies Ongoing joint collaboration with Singapore Power to develop and integrate a digital energy-saving system to harness solar energy Presentations on new technology or green solutions at t Europe Meeting, Singapore Maritime Week 2018, and NAMIC Energy & Maritime Summit Commitment to ASTAR’s Technology Centre for Offshore and Marine, Singapore Joint safety, security, environment, health and innovation-related activities with partners e.g. CultureSAFE programme Continued research programmes Active contribution to international, national and industry associations like Singapore Maritime Institute, Association of Singapore Marine Industries, Singapore Maritime Foundation, as well as regional WSH committees of industry partners	Dialogue sessions and site visits with government authorities and trade associations on safety, health, manpower, security and environment issues International, national and industry-level events Workplace safety and health collaborations R&D collaborations