2019 UEM Edgenta Annual Report

80 81 UEM Edgenta Berhad UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Annual Report 2019 As the region’s leading Asset Management and Infrastructure Solutions company, we are committed and dedicated to advancing the industry through memberships in associations and engagement with fellow industry players. “Goal Zero” Culture through HSSE Leadership Location Project Kamunting Laundry and Incinerator Plant (“KLIP”) Improvement on Machine Safety Guard with Installation of Interlock System and Isolation Buzzer Light • Redesigning belting cover which was originally attached to the main washer body • Interlock system to ensure protection of personnel • Buzzer light for visibility 1 Administration Department, Menara UEM OPS SCHUMACHER – Stop Violating Speed Limits and Comply through Vehicle Tracking System • Reduction of operational cost • Cost saving on fuel usage from January 2019 to October 2019 (compared with same period in 2018) • 98% decrease in speeding violation above 120 km/h from May 2019 to November 2019 • 92% decrease in traffic-related summons from January 2019 to November 2019 (compared with the same period in 2018) 2 Alexandra Hospital, UEMS Singapore – Environmental Management Services Housekeeping Services Implemented machines to increase productivity and reduce risk: • Window robot cleaner • Self-propelled ladder (increased productivity by 60%) • Visual training (enhancement of training method) • “Lock” system at chemical dispenser 3 • 8 Joint Management Facilities visits and audits were held with PLUS in 2019 for the top management to understand the challenges on the ground, as well as providing an opportunity for front line staff to engage directly with them. Furthermore, 10 joint compliance audits were conducted by senior managers of both companies to see for themselves the actual conditions at the sites and recommend improvements. • Contractor HSSE Management Framework: Incorporated HSSE Management Requirements and Consequence Management into all new or renewed contracts for the Infrastructure Services division and rolled out pioneer Contractor HSSE Performance Rating to assess its HSSE Management (office audit) and site audits. These assessments are input into an in-house developed software in which 100 companies were assessed in 2019 and ranked accordingly based on their performance. • Improvements via Innovation Garage - Rolled out 16 audible and lower height warning lights on the back of patrol vehicles - Safer work zones: modern safety helmets (adapted learning from mountain climbing equipment), which provide better protection for our staff at the front lines, more practical and comfortable safety shoes, more visible flags for traffic management, application of rumble strips to reduce vehicle speed at work zones, mechanised grass cutters, mechanised road sweepers and Eagle Eye - Safer at Night: Balloon & tower lights - Continuously identifying methods to eliminate needle- prick injuries for our hospital support services Safety Performance Our approach to Health and Safety focuses on achieving the deliverables of the HSSE Master Plan to achieve a stronger safety culture in the organisation. Safety improvement is a journey; we are determined to not exceed the fatality count in 2017, however, the fragility of our result is reflected in 2019 which shows, despite all our good efforts, we still have a long way to go. We are confident with the commitment that has been shown by all stakeholders involved at every level in the organisation, coupled with the discipline to implement the HSSE Master Plan and implementing innovations along the way, we are now in a strong position to overcome our HSSE challenges in the future. Indicator 2016 2017 2018 2019 Injury Rate 1.1 1.7 2.2 2.8 Lost Time Injury case 28 31 46 57 No. of Fatalities 5 12 3 5 Occupational Diseases case 0 1 0 0 BETTER LIVES – HEALTH AND SAFETY (CONT’D) Sustainability Statement Sustainability Statement • Collaboration and Engagement with the Malaysian Institute for Road Safety (“MIROS”) In 2018-2019, we recorded a significant number of cases involving rear-ended incidents. In response to this, we initiated a collaboration project with MIROS to tap their expertise in studying driving behaviour to reduce work zone related intrusions by road users. This effort is currently being piloted on-site, to collect data and further analysis. • MoU with the Malaysian Highway Authority (“MHA”) and Construction Industry Development Board Malaysia (“CIDB”) We signed a Memorandum of Understanding (“MoU”) with MHA and CIDB to establish new industry standards for highway maintenance. This will protect the safety of road users and highlights our industry leadership in HSSE. • Applying Consequence Management (Positive and Negative) We engaged our people and subcontractors, clearly outlining to them the 12 Life Saving Rules and rolled out tools called ’10 Questions’. For subcontractor owners, we highlighted the HSSE Management Requirements in their contracts. We have also rewarded 424 front liners for adhering to HSSE rules and implemented Consequence Management actions for those who violated HSSE rules. • Engaging our Subcontractors We believe that the subcontractor owners and directors are key stakeholders in reaching our Goal Zero aspirations. On 26 February 2019, we organised the Partners Operations Dialogue, which was attended by 450 subcontractors with the theme “Safety & Operational Excellence”. The main message is to make clear of our expectations of the role of owners and directors in driving safety in their respective companies. Following up from the event, we further discuss in more detail with the subcontractor owners and directors to re-emphasise in smaller groups on our expectations of them in delivering a safer operations on site. • HSSE Digital Eco System: We conducted 11 workshops with PLUS to remove process inefficiencies and eventually digitalise the Permit-to-Work Process. Part of this Digital Eco System is ‘Eagle Eye’, which provides visual data and connects our work zones to the section offices digitally. All of the information is integrated into a dashboard and KPI system for real-time monitoring by HQ and section offices. • MD/CEO Safety Award 2019 Winners This annual award recognises teams / individuals who have implemented HSSE initiatives for safety improvement at the workplace.