The Power of 10Singapore Supplement for Sustainability Report 2012

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Director’s MessageThe construction industry in Singapore is currently faced with the challenge of quickly adapting itself to a more productive and less labour-intensive industry. This requires reshaping many of its traditional work methods into safer and more protective ones. This indeed is a critical aspect of being sustainable and relevant in the Singapore construction industry.

Sustainability at Gammon has been a key driver of organic growth and it has a holistic framework that incorporates various aspects like Zero Harm (Safety), Resource Efficiency & Energy Conservation (Environmental Protection), Safe & Responsible Procurement, Sustainable Construction (Green Mark, LEED) and Caring for the Community. These guide us towards “Our Shared Future”.

I am proud to say that Gammon’s sustainability journey has evolved successfully over the years and it has become an integral part of its operations. For example, almost all our temporary site offices have consistently achieved the “Project: Eco-Office certification” by the Singapore Environmental Council (SEC) since 2009. In the area of BIM, we are enhancing our in-house capabilities that will add great value to our projects. And as always, we continue to have many bright innovative ideas from our project teams that have helped us improve our productivity, and operate safely and efficiently.

As the construction industry strives for productivity and sustainable solutions, we believe clients will see Gammon as a key partner in delivering them.

Tan Hee WeeDirector

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Prosperous MarketsGammon strives to provide sustainable solutions that not only meet but exceed the requirements of its clients and conserve the values of society. As a practice, we think of relevant innovative alternatives wherever possible for our projects and tenders. This has consistently helped us deliver optimal, innovative and sustainable solutions to our clients.

Green BuildingsIn the area of green buildings, Gammon has built on its expertise in delivering both Building and Construction Authority (BCA) Green Mark and LEED projects in Singapore. In 2012, Gammon was awarded the construction contract for the Extension of Nanyang Polytechnic which would be certified Green Mark Platinum upon completion. Through regular workshops we are able to look at alternative materials to maximise Green Mark and buildability scores in our projects. For example, in Chevron lab building project, the project team proposed many value-added alternatives like changing brick walls to green precast walls and dry lining, and improving the building services design to achieve better system efficiency.

Building Information Modelling (BIM)Gammon has built a strong in-house capability in the area of Building Information Modelling (BIM). Gammon’s dynamic BIM team supports both our tenders and projects. BIM is a valuable tool for planning the whole life cycle of a building. BIM speeds up the planning and design process for complex projects by allowing them to be built virtually before construction begins. It also allows for clash detection and more accurate sequencing of works to avoid costly and time-consuming conflicts. BIM and the 3D models it generates not only encourages best practices in constructability and efficient design but also provides opportunities for the owner to operate and maintain the building at optimum levels over the course of its lifetime. Gammon’s BIM team is now looking at BIM 5D that integrates BIM with both construction programme planning and cost scheduling.

Innovation and Productivity Our approach to innovation is to develop methods and technologies for specific projects, which allow us to build up a store of knowledge that can be applied to future projects. We do this without losing our focus on doing the basics right. We have an integrated design arm within Gammon and they are tasked with developing new and innovative ways of building to keep in line with the evolving construction industry, shorter construction programmes and labour challenges in the market. However we do not restrict innovation to the design team, innovative ideas come to us from all levels of our organisation and our partners.

Gammon’s reputation for innovation was affirmed in the awards we received in 2011. These included the International Project of the Year prize in the category of Technical Excellence at the Ground Engineering Awards in London for the Mole Removal, Phase II Project and three Construction Productivity Awards – Best Practices and Innovations from BCA.

Our annual Gammon Innovation Competition received some excellent submissions that have not only been successfully implemented on Gammon projects, but have also received Innovation and Best Practice Awards from the industry.

In 2012, Gammon’s MCE project team successfully applied an innovative way of cable-laying in tunnels. This mechanised cable-laying process greatly improved the productivity on-site and was awarded a grant under the Construction Productivity and Capability Fund (CPCF) from BCA. This idea also won first prize in the Gammon Singapore Innovation Competition 2012.

An innovative idea by the Bishan depot team that involved precasting solutions has greatly enhanced the on-site productivity with excellent resource optimisation.

The Tuas project team came up with an innovative alternative of backfilling using Liquefied Soil Stabiliser (LSS) that saved both cost and time.

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Zero HarmSafety is an integral part of Gammon’s operations and takes first priority. Gammon Singapore is proud to say that we have successfully met our ambitious target of achieving “Zero Harm by 2012“.

To achieve our target of “Zero Harm”, we have a well established system in place with an active ownership from our staff. Moving forward, we are looking at setting an even higher benchmark of achieving a “Double Zero”, which is ZERO reportable accidents for two consecutive years.

Performance and Achievements 2012 statisticsZero Fines, Zero Demerit Points and Zero Stop Work Order from Government Authorities, on all our worksites.

Accident Frequency Rate (Singapore)

per 1 million man hours worked

2009 2010 2011 2012

Gammon Industry

0.5

2.7

0.6

2.2

0.7

1.6

0

1.7

Accident Severity Rate (Singapore)

per 1 million man hours worked

2009 2010 2011 2012

Gammon Industry

16.2

246

9.9

223

151

7.8

88

1.1

Bold Commitments & Radical Actions Gammon practices company-wide “Safety Stand Down” event as a way to demonstrate our commitment to safety and see them as a component of visible leadership in safety. On 20 June and 21 November 2012, all worksites in Singapore took time to focus on safety. These activities serve as an opportunity for our employees to share their views on safety as they understand that Gammon as a company is fully committed to safety.

Dynamic Risk AssessmentAll direct and indirect supervisory staff in Gammon including subcontractors are trained on “Dynamic Risk Assessment (DRA)” to identify the actual risks at the work front and look at “What could go wrong”. In 2012, over 460 supervisors were trained on DRA.

Dynamic Risk Assessment makes us take 5 minutes and see if conditions have changed before starting works.

4 Workplace Safety and Health Performance Awards from WSH Council• SHARP Award – Mole II • SHARP Award – Downtown Line Phase I, China Station• WSHPA – Gammon Pte. Limited• Supervisor Award – Mole II: Mr. Mohd Karika Bin Hurdi

3 RoSPA Gold Awards from the Royal Safety Society for the Prevention of Accidents (UK)• Gammon Pte. Limited / Gammon Construction Limited

Singaopre Branch• Lanxess• Mole II

LTA - Annual Safety Award 2012 Certificate of Recognition• Balfour Beatty-Gammon JV Contract 1750

SCAL WSH Innovation Award 2012• Bronze Award – Gammon Pte. Limited P&G Innovation

Centre

2012 Safety Awards

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Green and CaringGammon has a unique in-house system that supports the Green and Gracious Builder scheme and aims to encourage our project sites to achieve high standards of housekeeping, material reuse, recycling and workers welfare. Each project team is audited and scored on these criteria every month. Projects with outstanding performance can apply for a “Green and Caring Flag” that is awarded only after a site audit by an independent director.

Green Flag at Bishan Depot project

Singapore Environment Council (SEC) had the opportunity to visit one of Gammon’s construction site offices and we were thoroughly impressed.

“Green” is the last word one would use to describe a construction site office. However, any visitor to their site office would clearly see their strong commitment to environmental sustainability.

Gammon was the first in the construction industry here to receive SEC’s Eco-Office certification back in 2009 for their Sentosa Boardwalk site office, clearly demonstrating that the Eco-Office model can be successfully applied to any type of organisation.

We hope that many others will follow in Gammon’s footsteps and that the implementation of green practices will quickly become the norm in the construction industry.

Jose RaymondExecutive DirectorSingapore Environment Council

Environmental Stewardship

Monitoring our Impacts For on-site operations, we have an data portal to capture data for resource and energy usage by projects. This helps us quantify our impacts and set meaningful targets to reduce impacts and waste.

Green and Gracious BuilderGammon strongly believes in valuing the “Environment” as a key stakeholder. With this in mind, we have aligned our core strategy of “Use Wisely, Waste Less” as an integral

part of how we build and operate.

We have applied this successfully to our temporary project site offices by incorporating many environmentally friendly features and thus making them “Green site offices”. Gammon continues to be a proud recipient of BCA’s Green and Gracious Builder Scheme with the highest “Star” rating.

Eco-office CertificationGammon has been proactive in achieving Singapore Environment Council’s Project: Eco-office certification. In 2012, three of Gammon’s projects – Bishan, MCE and SgIC successfully achieved certification for their Green site offices and received the certificate from Acting Minister of Manpower and Senior

Minister of State, Ministry of National Development, Mr Tan Chuan-Jin on 25 March 2013.

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Social Responsibility

Gammon Staff and Recreation Club (GSRC) and Young Professionals Group (YPG)GSRC arranges games and activities outside of work to encourage healthy and enriching lifestyles among our staff. These efforts also result in bonding, integration and better teamwork that we believe will lead to better retention and cohesion within our diverse workforce. Events like the corporate community games give us opportunities to interact and learn about the culture of other companies.

YPG gives younger staff access to professional development and reaches out to the community through many of its activities.

Highlights of Special Events in 2012In 2012, Gammon staff participated in a number of charitable activities that benefitted the community. These included• LUNCH tribute (Prepared and served food for elderly) • Blood Donation Drive (Celebrated SCAL’s 75th

Anniversary)• Corporate Run (In conjunction with “irun4G”) for

MINDSET• “MINDSET Challenge 2012”, a mental health

awareness raising event where participants raced up 33 levels of the Marina Bay Financial Centre

• Coastal Cleanup• Donation For Dover Park Hospice

Workers’ WelfareDuring toolbox talks we provide tips for a healthy lifestyle and hydration for workers. At our Chevron building project, the Project Manager initiated the conduction of simple health checks for workers.

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GRI Reference Performance Indicators Units 2009 2010 2011 2012Safety

CRE6 Organisation operating in verified compliance with OHSAS 180011 % 100% 100% 100% 100%

LA7 Fatalities number 0 0 0 0

LA7, PR2, PR4 Accident frequency rate per 1 million manhours worked 0.5 0.6 0.7 0

Accident severity rate per 1 million manhours worked 24.1 10.9 8.1 1.1

EconomicEC1 Singapore group turnover (by region) SG$ millions 426 290 162 209

SocialLA1 Total monthly-paid staff number 573 465 374 448

LA1 Total daily-paid workers number 400 394 265 388

Gender, monthly-paid staff % male 90 89 88 80

% female 10 11 12 20

Graduate recruitment number 6 4 4 14

LA8, LA10 Training hours per employee hrs / employee 12.5 12.0 8.0 24.0

LA12 Employees receiving regular performance review % 96% 93% 98% 99%

SO1 Volunteer hours hours 320 436 434 290

SO1 No. of community events number 2 4 11 6

CRE8 Sustainability certification, rating and labeling schemes for new construction number of project 1 1 2 2

PR5 Customer satisfaction

Very satistied % 13 28 30 33

Satistied % 78 61 60 67

Neutral % 4 11 10 0

Dis-satisfied % 4 0 0 0

Environment

CRE4, EN16 Carbon dioxide equivalent (CO2e) emissions (Scope 1 & Scope 2) 2 kg / SG$1m turnover 14,813 23,861 21,321 10,555

EN17 CO2e from air travel tonnes 115 115 25 32

EN4 Electricity intensity kWh / SG$1m turnover 3,548 12,908 14,395 7,077

EN3 Diesel intensity litre / SG$1m turnover 4,264 5,626 4,415 2,210

EN3 Petroleum intensity litre / SG$1m turnover 153 235 359 158

CRE1 Energy electricity for office kWh / m2 / month average 16 17 18 15

EN8 Municipal water intensity m3 / SG$1m turnover 326 733 880 227

EN10 Recycle water m3 12,021 4,172 3,914 1,999

% of recycle 8.0 1.9 2.7 4.0

EN22 Total waste landfilled tonnes 2,281 882 1,186 1,589

EN22 Total waste recycled (divert from landfill) tonnes 2,093 1,786 1,720 4,116

% 48 67 59 72

Rebar/steel recycled tonnes 3,247 3,640 5,116 10,958

EN22 Total waste recycled include rebar/steel % 70 86 84 87

% of reuse 80 61 100 99

EN28, SO8, PR4 Compliance convictions number 0 0 0 0

Composition fines number 6 4 3 1

Footnotes:1. OSH 18001 certification does not include JV projects.2. 2009 - 2011 Singapore Electricity to CO2 factor was changed.

In preparing the 2012 Report “The Power of 10”, we have made reference to the Global Reporting Initiative (GRI) G3.1 framework and the Construction and Real Estate Sector Supplement for certain sections and performance indicators. We selected key indicators as listed below to provide readers with a quick understanding of our group-wide performance. Comments on the scope and completeness of our reporting can be found in the Independent Verification Statement on page 21 of the full version of our Sustainability Report.

Key Performance Indicator - Singapore

SINGAPOREGammon Pte. LimitedCo Reg No: 198001094MGammon Construction Limited Singapore BranchCo Reg No: S80FC2909F

29 International Business Park #06-05,Acer Building, Tower B,Singapore 609923

Tel: +65 6722 3600 Fax: +65 6722 3601Learn more and give us your feedback at environment@gammonconstruction.com