2012 Sustainability Report

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SNC-Lavalin is in the sustainability business, which is another way of saying that what ultimately drives our success is the respect we have for all of our stakeholders and everything that matters to them.
  • 3. PRESIDENT’S MESSAGE ACHIEVING OUR WE CARE OBJECTIVES SNC-Lavalin is in the sustainability business, which is another way of saying that what ultimately drives our success is the respect we have for all of our stakeholders and everything that matters to them. But how do we measure respect for our stakeholders? At SNC-Lavalin, we use our WE CARE principles of health & safety, employees, communities, environment, quality and ethics & compliance for that purpose. We know that we are meeting our sustainability goals when we are achieving outstanding performance across these crucial areas. HERE’S HOW WE PERFORMED IN 2012 Health & Safety Health & Safety is not just a business imperative for us, it is also a moral one. At no time is an injury ever acceptable at our project sites because we hold the health and well-being of the people who work for us to be priceless. I am pleased to report that we are making good progress in reducing the rate of injuries and near misses on our project sites. We are also working hard to improve incident reporting across the company. It is critical for us to track and understand all injuries so we can work together to prevent recurrences. Employees Our employees are our strength. Many corporations make statements like this, but it is especially true in the engineering and construction sector. In October 2012, we gained valuable insights into the employee experience at SNC-Lavalin when we launched our first Employee Engagement Survey. I was pleased with our first-time overall response rate of 70 percent. The survey told us that, on average, our employees are proud to work for SNC-Lavalin and are satisfied with the company as a place to work. The comments we collected on various aspects of their work experience are now being used to create action plans to further enhance the employee experience at SNC-Lavalin. S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T 3
  • 4. PRESIDENT’S MESSAGE Communities We always seek to maximize the benefits we bring to the communities where we live and work around the world. We are particularly proud of the work we have done and continue to do with First Nations communities, for example. As an EPCM contractor for major mining projects, we are becoming increasingly involved in Aboriginal training, employment and procurement on behalf of project developers. Our trademarked Local Resource Development Initiative (LRDI™) is constantly being adapted to meet these needs. We are also working on a corporate Aboriginal Policy, which includes guidelines and directions for increasing Aboriginal inclusion within our company and on our projects. Environment In the 21st century, respect for the environment is an essential element of any business model. By working closely with our clients, we are helping to protect the planet while allowing them to realize their most ambitious strategic objectives. We are also doing our best to ensure that our own day-to-day activities on projects have a minimal impact on the environment. I am proud that construction sites managed by SNC-Lavalin recorded no significant environmental incidents in 2012. We also spent much of the year developing a new Global Environmental Management System, which is now being deployed at our construction sites worldwide. The result will be greater standardization, enhanced consistency and a more proactive approach based on the use of leading indicators. Quality Our clients and their stakeholders deserve and expect nothing less than the very best in services. We were honoured to receive several prestigious awards in 2012 which affirm our ability to deliver projects that are second-to-none in terms of their quality metrics. Some standout projects in 2012 include the Maison symphonique concert hall in Montreal (which won its fifth award), the Barro Alto nickel smelter in Brazil (the third award for this project) and the EMAL I aluminium smelter in Abu Dhabi. These projects, like so many others we are working on, excelled by delivering top engineering and construction services and by achieving excellence in the areas of health & safety and environment. Ethics & Compliance The firm’s past challenges in the ethics arena have provided a platform from which to create a world-class ethics and compliance program. As you will read in this part of the report, we implemented a host of remedial measures in 2012 which have served to greatly reinforce our compliance procedures. We are continuing to do what we must in 2013 to move forward and ensure that this company is beyond reproach in matters of ethics and compliance. In fact, we plan to become the standard bearer for ethics and compliance excellence in our sector, and I believe we are already well on our way to achieving that objective. So these are our guiding principles and they are the heart of the culture of our organization. By focusing on consistently achieving nothing short of excellence in these areas, SNC-Lavalin will further enhance its status as a Tier-1 engineering and construction firm: a global provider of safe, well-governed, ethical and compliant integrated project services. Robert G. Card President and CEO 4 S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T
  • 5. OUR CORE VALUES WE CARE NOUS VEILLONS THE BASIC PRINCIPLES OF SUSTAINABILITY HAVE INFORMED OUR BUSINESS PRACTICES SINCE OUR FOUNDING MORE THAN 100 YEARS AGO. At SNC-Lavalin, we see beyond the projects we work on. We know the economic, environmental, social, safety and civic challenges our clients and their stakeholders are facing; and we align our global capabilities around these unique needs. This commitment is backed by company-wide health, safety, compliance and environment guidelines and our involvement, at both the corporate and local levels, in grassroots social action. We are dedicated to client satisfaction and to continuously improving our operations across all our sectors of activity. The quality of our work is another major factor in our success, and our divisions are generally ISO-certified. WE CARE about the health and safety of our employees, of those who work under our care, and of the people our projects serve. WE CARE about the environment, and about conducting our business in an environmentally responsible manner. WE CARE about our employees, their personal growth, career development and general well-being. WE CARE about the quality of our work, and strive to surpass our clients’ expectations. WE CARE about the communities where we live and work and their sustainable development, and we are committed to fulfilling our responsibilities as a global citizen. S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T 5 WE CARE about being world-class in matters of governance and ethics & compliance for our shareholders, clients and employees.
  • 6. OUR EXPERTISE SINCE 1911, WE HAVE CONTINUALLY EXPANDED OUR EXPERTISE TO MEET THE CHALLENGES OF NEW AND EVOLVING SECTORS. TODAY, THE ABILITY TO DELIVER SUSTAINABLE SOLUTIONS FOR CHANGING MARKET REALITIES HAS MADE US ONE OF THE WORLD’S MOST RESPONSIBLE AND MULTIDISCIPLINARY ENGINEERING AND CONSTRUCTION FIRMS. MORE IMPORTANTLY, IT HAS GIVEN US A KEY ROLE IN ENHANCING QUALITY OF LIFE FOR AN ARRAY OF STAKEHOLDERS. MINING & METALLURGY SNC-Lavalin’s Sustainable Mine Development (SMD) team delivers unique value to clients through a combination of leading technical expertise and environmental and social thinking. The SMD team provides sustaining capital and operations services, mine site and tailings reclamation services, pollution prevention engineering, manages social responsibility issues, and uses its multidisciplinary design capability to address environmental challenges across the entire project lifecycle. OIL & GAS SNC-Lavalin’s Oil & Gas business unit can help clients reduce the amount of CO2 released by their plants during oil and gas processing and oil refining through its expertise in carbon capture and sequestration. The company also has industry-leading expertise in the reduction of flaring at gas plants, and the development of high-tech solutions for tailings management at oil processing facilities. 6 S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T INFRASTRUCTURE SNC-Lavalin has extensive expertise in the design and construction of an array of sustainable infrastructure projects. The company provides complete end-to-end solutions for mass transit systems; green buildings, including recognized eco-friendly LEED-and HQE-certified buildings; high-tech wastewater treatment and distribution facilities; and flood control systems that mitigate the effects of climate change.
  • 7. OTHER INDUSTRIES INFRASTRUCTURE CONCESSION INVESTMENTS SNC-Lavalin manages a portfolio of concessions in a broad spectrum of sectors, from mass transit systems, to roads, bridges, power plants and hospitals. Many of our concessions inherently advance the cause of sustainability, notably by improving transit and commuting efficiency. We also integrate energy efficiency and sustainability principles into the design and operation of projects and have a track record of achieving LEED or HQE standards for many of the buildings we design. OPERATIONS & MAINTENANCE SNC-Lavalin’s Operations & Maintenance business unit has developed a Sustainability Management Framework for facilities that includes seven services: a green operations model, assistance with corporate social responsibility reporting, a (Greenhouse gas) GHG inventory plan, energy management, environment management and planned maintenance. ENVIRONMENT Our expertise includes site assessment and remediation; environmental risk management; water resources management; participatory resettlement planning and implementation; geo-environmental services; agriculture and rural development; waste management; air quality, noise and vibration characterization and management; GHG characterization and climate change impact assessments; planning, permitting and approvals; Local Resource Development Initiatives (LRDITM); impact assessments, mitigation and community engagement; GIS; and assessment and management of biodiversity and ecosystem services. POWER SNC-Lavalin possesses a wealth of expertise in green power solutions, including geothermal power plants, run-of-river hydropower plants, waste-to-energy facilities, high-efficiency cogeneration thermal power plants and low-GHG nuclear plants. S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T 7 Agrifood SNC-Lavalin can enhance agrifood production facilities through a variety of sustainable design and construction techniques, including optimization of production processes to reduce energy consumption, high-efficiency lighting, runoff collection and vegetalized pond processing, as well as clean construction. Industrial SNC-Lavalin has expertise in second-generation ethanol production processes. Unlike to first-generation methods, second-generation processes use the whole plant, producing a smaller footprint and putting less pressure on agricultural commodity prices. We also have extensive expertise in sustainable plant design and in the optimization of existing sulphuric acid plants to improve their environmental performance. Pharma By using a sustainable approach to process engineering we can help our clients develop and implement processes which use less energy and resources. These, and other environmental improvements, have allowed many of our clients to obtain LEED certification.
  • 8. HEALTH & SAFETY WE CARE HEALTH & SAFETY IS THE CORNERSTONE OF ALL WE DO, WHETHER ON PROJECT SITES OR AT OUR OFFICES. KEEPING ALL OF OUR PROJECT STAKEHOLDERS SAFE IS AN IMPERATIVE, AND EVEN A SINGLE INJURY IS UNACCEPTABLE TO US. 2008-2012 SAFETY STATISTICS 2008 Lost-Time Incident Frequency (LTIF): The number of occupational lost-time incidents (resulting in at least one full day of absence from work beyond the day/shift of occurence per 200,000 person-hours worked) Senior Vice-President Global Health & Safety HEALTH & SAFETY EXCELLENCE IN THE EMIRATES The excellent safety performance of our Emal II aluminum smelter project in Abu Dhabi continues: 16.5 million person-hours without an LTI at the end of 2012. 2011 2012 200 189 153 150 133 131 3 DETERMINED TO CONTINUE MAKING PROGRESS Our injury frequencies have remained relatively stagnant over the last few years (see chart above), with a slight uptick in our safety results in 2012. We have put new initiatives and additional resources in place to ensure we quickly return to a trend of continuous improvement. We are confident that an even greater focus on leading (proactive) indicators will drive world-class safety performance. Leading indicators involve specific cross-company actions, such as participation in safety training, development of a project risk register and safety inductions. FULLY PREVENTABLE AND UNACCEPTABLE There were two fatalities associated with our construction activities in 2012. Both of these events were fully preventable, unnecessary and unacceptable. In response, we issued lessons learned reports company-wide reiterating the need to always fully comply with existing SNC-Lavalin Critical Risk Control Protocols. This document sets the minimum safety standards for all our high-risk activities. 8 S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T 0.49 0.12 0.41 0.11 0.35 0.09 0.40 0.08 0.64 1 0 100 88 0.08 FREQUENCY 2 50 MILLIONS OF HOURS WORKED 4 Number of hours worked Tim Van Wieren 2010 5 Total Recordable Incident Frequency (TRIF): The number of occupational recordable incidents (fatalities, lost-time incidents, modified work incidents and medical aid incidents per 200,000 person-hours worked) “Safety isn’t just for the workplace. At SNC-Lavalin, we integrate health & safety into all facets of our activities, and strongly encourage our employees to live by those same principles outside the office as well.” 2009 6 CONTINUOUS IMPROVEMENT: THE HEART OF OUR COMMITMENT TO H&S How do we continuously drive improvements in safety performance, toward a goal of zero recordable incidents? Our plan has four pillars: › Educate the organization through continued leadership and risk competency training › Select clients and partners who share our commitment to health & safety › Change the culture by being consistent and having the right “tone at the top” › Provide unwavering support to the entire organization though talented personnel, credibility and appropriate systems
  • 9. SNC-LAVALIN SUPPORTS SAFETY AT THE CALGARY STAMPEDE SNC-Lavalin was an active partner at the 100th anniversary of the world-famous Calgary Stampede in Alberta and was the presenting sponsor of the Safety Award at the Rangeland Derby. The Stampede was an opportunity to focus on safety, one of the key operating principles for the company, and an essential component of our WE CARE philosophy. HELPING TO KEEP OUR COMMUNITIES SAFE Our Operations & Maintenance business unit and the Royal Canadian Mounted Police partnered to tour communities with a special rollover vehicle simulator. The simulator is designed to visually demonstrate the physics of a rollover and help keep our communities safe. H&S AWARDS SNC-Lavalin picked up three in 2012 for excellent health & safety performance on projects: The Barro Alto project team received DuPont’s Safety Excellence Award for Best-in-Class Health and Safety Management in Brazil. The award highlights the best solutions in the area of safety protection and health by an independent jury of experts. SNC-Lavalin Chile received the Servicio nacional de geologÍa y minerÍa (National Department of Geology and Mining Chile) award for businesses that have maintained an excellent record in caring for their workers, assets and resources. The Shipshaw optimization project in Quebec, completed this year by our Hydro division, received the prestigious Rio Tinto Chief Executive Safety Award. SNC-Lavalin was singled out for its “rigorous work to evaluate and mitigate the numerous risks” involved in the project. SAVING A LIFE IN MONT-WRIGHT SNC-Lavalin honoured two of its employees and three contractor workers for their outstanding response to a medical emergency at the Spiral Project site in Mont-Wright, Quebec. When a contractor with a medical history suddenly collapsed from cardiac arrest, they administered CPR and used a defibrillator to revive him. The case doctor notified the man’s family that the quick intervention of the workers and their use of the defibrillator kept him alive. S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T 9
  • 10. EMPLOYEES WE CARE IN 2012, WE DELIVERED MORE PROGRAMS TO EMPLOYEES AROUND THE WORLD AND REINFORCED OUR BEST PRACTICES IN CORPORATE GOVERNANCE AS PART OF A COMMITMENT TO BECOME ONE OF THE WORLD’S BEST EMPLOYERS. NUMBER OF EMPLOYEES SNC-Lavalin (including wholly owned subsidiaries) and associated companies 2008 2009 2010 2011 2012 40,000 35,000 30,000 25,000 20,000 33,909 28,100 23,923 5,000 21,948 10,000 21,260 15,000 0 “Our employees are known for their passion and commitment to our clients’ success, as well as their dedication to outstanding safety, environment, security and compliance, regardless of where they are working across the globe.” Darleen Caron Executive Vice-President Global Human Resources n our quest to become one of the world’s best employers, we must ask ourselves: “Why would the best talent want to join, stay and go the extra mile for SNC-Lavalin?” Part of the answer lies in our ability to develop and deliver initiatives that produce a first-rate employee experience. With that objective in mind, here are some of the projects we undertook in 2012. I EMPLOYEE ENGAGEMENT SURVEY In October, we gained valuable insight into the employee experience when we launched our first Employee Engagement Survey. The survey complemented feedback we received during a Total Rewards Study in 2011 and allowed us to collect thousands of comments from employees on various aspects of their work environment. Results and comments from the Engagement Survey were reviewed at the end of the year and detailed action plans are being communicated to employees in 2013. A GLOBAL VISION SNC-Lavalin continued to consolidate and improve its company-wide strategy to manage human capital. 10 S N C - L AVA L I N 2 0 1 2 S U S TA I N A B I L I T Y R E P O R T CODE OF ETHICS AND BUSINESS CONDUCT The introduction of our new SNC-Lavalin Code of Ethics and Business Conduct in 12 languages helped to renew our strong focus on integrity and transparency. In addition to a more robust Code, our Human Resources team designed a mandatory Training and Certification Program for all employees, led face-to-face training sessions with priority groups around the world, and engaged an independent third-party provider to collect reports of any Code violations. The company also announced that it was creating the position of Chief Compliance Officer, which has now been filled.
  • 11. Regular Employees Contractual Employees Temporary or Occasional Employees Employees CANADA USA LATIN AMERICA EUROPE AFRICA MIDDLE EAST EURASIA ASIA OCEANIA 16,741 1,212 2,402 2,874 1,463 274 43 981 269 286 21 3,063 257 2,010 243 4 167 86 778 56 69 20 237 324 0 9 20 17,805 1,289 5,534 3,151 3,710 841 47 1,157 375 Total 26,259 6,137 1,513 33,909 BREAKDOWN OF EMPLOYEES BY TYPE AND REGION JOB CLASSIFICATION SYSTEM Work began on a complete revision of our Job Classification System. A more comprehensive system w
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