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Environmental_ Health and Safety Report - Jec.com


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									                  Enhancing Asia’s built environment

 Health and
 Safety Report


www.jec.com                  Jardine Engineering Corporation

                                03. Scope of this EHS report

                                04. Objectives and Highlights

                                06. About JEC

                                07. Chief Executive’s Statement

                                08. Environmental, Health & Safety Policy and
                                    JEC’s Management System

                                10. Stakeholder Engagement

                                12. Health and Safety

                                16. Environmental Protection

                                20. Case Study

                                22. Social Responsibility

                                26. Looking Forward

                                28. GRI – Key Indicators
JEC Environmental, Health and
Safety Report 2009

Scope of this EHS report

The Jardine Engineering Corporation (JEC)      This report has not been verified
Environmental, Health and Safety Report        independently. Internal assurance is
2009 details our strategic environmental,      provided through scrutiny at multiple levels,
health and safety commitments and              including an analysis of our practices in
performances for 2009 and, where available,    relation to JEC’s screening criteria by its
our outlook for 2010 and beyond.               various departments. We intend to continue
                                               to review this process. It also acts as a
Compared to previous EHS reports, this year    communication channel for stakeholder
we have provided an on-line and a printable    engagement, and addresses the
PDF download version. The online report        community’s increasing awareness of
achieves our twin objectives of saving paper   environmentally viable products and
and creating a more interactive read. Both     solutions.
versions include a Health & Safety section,
an Environmental section, a Social             Since 2006, JEC has provided all its
Responsibility section,and a GRI Key           corporate reporting online. Together with
Indicator to demonstrate our current           other information, the Environmental, Health
performance and refers to the Global Report    and Safety Report 2009 can be found on the
Initiative (GRI) G3 reporting framework. We    company’s corporate website at
are currently not in a position to meet GRI    www.jec.com.
requirements and intend to incrementally
build on this framework in future years.           Visit http://www.globalreporting.org for more details.

                                                                                                            JEC Environmental, Health and
                                                                                                                       Safety Report 2009

                                Objectives and Highlights

                                The objectives of this report are to
                                demonstrate our commitment to and
                                performance in protecting the
                                environment, and ensuring health and safety
                                in all our operations, as well as address the
                                broad range of key environmental issues and
                                safety risks relevant to our business in 2009.
                                It summarises the management’s approach
                                to environmental issues and demonstrates,
                                through project case studies and
                                performance analysis, how these have
                                become part of JEC’s business operations.
                                In addition, we also present our Management
                                System and Key Performance Index
                                Improvement Plan 2010 for the
                                environmental and safety sections.
JEC Environmental, Health and
Safety Report 2009

      Highlights of
Achieved a Group Safety Index of 1.18/1000;
Maintained a zero rate of fatal accidents;
Achieved a zero accident rate in our regional offices;
Saved 36,314 kWh of electricity in our Hong Kong
offices, which equates to a total reduction of 10 tonnes
of CO2 emission;
Recycled more than 33% of paper; and
Maintained a zero rate of environmental and
safety-related conviction cases.
                                                           JEC Environmental, Health and
                                                                      Safety Report 2009

                                About JEC

                                Jardine Engineering Corporation (JEC) is a leading provider
                                of products and services that enhance Asia’s built
                                environment. The group provides sourcing, engineering
                                contracting, and technical services for buildings, the energy
                                and transport sectors, and environmental infrastructure.

                                JEC specialises in the provision of electrical, mechanical, and
                                building technologies. The group provides contracting
                                expertise to deliver large-scale installations and ongoing
                                operation and maintenance services which help our
                                customers to operate their facilities to a world-class standard.

                                Established in Shanghai in 1923, JEC is now headquartered
                                in Hong Kong and operates throughout Asia. JEC is a
                                member of the Jardine Matheson Group.
JEC Environmental, Health and
Safety Report 2009

Chief Executive’s Statement

I am pleased to present JEC’s Environmental,      As well as our high attention to safety, we also
Health and Safety Report for 2009 and to          remain aware of the potentially negative as
thank all colleagues in JEC for your hard work    well as positive impact our business operations
and support in achieving an improved              can have on the environment and in the
performance in these areas during the year.       communities in which we operate, and we are
                                                  strongly committed to understanding these
Across the region JEC operates in many            impacts and addressing them in a responsible
potentially hazardous work-places, and having     manner.
a comprehensive health and safety system
and culture within our organisation remains of    In this report you will find our environmental,
the highest priority. We do not see our           health and safety policies and performance, as
responsibilities ending with the health and       well as some examples of environmental
safety of our own employees however, for we       engineering projects and optimised building
are also focused on ensuring the safety and       materials being offered by JEC.
well-being of our sub-contractors and all those
working further down our ‘chain of command’.
With this in mind, 2009 was the first year in
which JEC started to base our safety index
upon the sum of our direct employees and our
subcontractor’s employees.

We are pleased to report that in 2009 JEC
achieved our lowest rate of personnel injury in
recent years and remained fully compliant with
the safety and environmental and                  Alex Newbigging
legislation of the territories in which we        Chief Executive
operate.                                          July 2010
                                                                                                     JEC Environmental, Health and
                                                                                                                Safety Report 2009

                                Environmental, Health & Safety Policy
                                and JEC’s Management System
                                JEC considers health and safety to be one of     Health & Safety Policy
                                our priorities. In 2007, we achieved the         JEC fully recognises safety, health and
                                distinguished international environmental        hygiene at work as an integral part of its
                                management systems standard ISO 14001            business strategy. The latest Health & Safety
                                and a year later, in 2008, we passed the         Policy was issued in August 2009 and JEC
                                internationally recognised assessment            management is committed to maintaining a
                                specification for occupational health and        climate of safety awareness, and employing
                                safety management system, OHSAS 18001.           house rules and a health and safety
                                OHSAS 18001 is designed to be compatible         management system that leads to
                                with ISO 14001 and both systems are now          continuous improvement of occupational
                                applied to our operations. JEC is totally        safety and health performance.
                                committed to providing and maintaining a
                                safe and healthy working environment,            The basic principles of JEC’s health and
                                preventing the occurrence of accidents, and      safety policy include the following:
                                continuously improving occupational safety
                                and health performance. Certification of both
                                these standards will ensure JEC continues to         Keeping abreast of best practices in
                                exceed expectations and demonstrate the              health and safety management;
                                highest environmental safety and health              Applying a risk-based approach to
                                standards.                                           setting health and safety objectives;
                                                                                     Consulting and involving employees,
                                                                                     sub-contractors and suppliers in
                                Environmental Policy                                 health and safety issues; and
                                JEC’s commitment to the continuous                   Providing adequate and appropriate
                                improvement of environmental issues is               resources.
                                clearly stated in our environmental policy
                                which was revised recently in 2010. JEC’s
                                management and employees are jointly
                                responsible for implementing this policy.

                                The basic principles of JEC’s environmental
                                policy include the following:
                                  Communicate and advance the use of
                                  environmental best practices to employees,
                                  subcontractors, and suppliers;
                                  Maintain an active, open and ethically sound
JEC Environmental, Health and

                                  approach to environmental protection;
                                  Pursue the objective of sustainable
                                  development; and
                                  Play an active role in the environmental
Safety Report 2009


                                                   Principles of Implementation
                                                   Environmental, Health and Safety are two
                                                   key areas that have benefited from robust
                                                   management system. Our business adopts
                                                   both systems to systematically measure and
                                                   improve performance and ensure that a high
                                                   level of quality is required and achieved.
                                                   The following principles guide the
                                                   implementation of JEC’s Environmental,
                                                   Health & Safety (EHS) policies:

                                                      The Environmental, Health & Safety
                                                      policies are part of the general
                                                      management process;
                                                      JEC manages, plans and implements
                                                      work programmes according to the best
                                                      practices’ guideline provided in the
                                                      Environmental Management System and
                                                      Health and Safety Management System;
                                                      JEC’s action programmes are based on
                                                      a thorough understanding of the
                                                      environmental impacts and risks of our
                                                      engineering services and solutions; and
EHS Management Systems                                JEC routinely conducts internal
                                                      combined audits to verify that our
JEC applies global standards for business             activities comply with our management
practices and management systems                      systems and to determine if the systems
throughout its business units. These                  have been implemented properly.
standards are applied when a new project
site is established in any location. JEC has a
large number of business partners and
contractors who share the company’s
technology and expertise. We encourage our
contractors to adopt JEC guidelines where
applicable, taking into account contract

The EHS Management Systems make up a
systematic framework designed to manage
our environmental, health and safety
performance, risks and impact. The expertise
of the EHS Management Systems is
integrated into normal daily business and
services. Both systems and procedures are a
                                                                                                JEC Environmental, Health and

necessary and well developed tool; however
they will not be truly effective unless there is
a clear culture within the organisation where
                                                                                                           Safety Report 2009

each person has a positive attitude to facing
challenges and tackling problems

                                Stakeholder Engagement
                                Engaging with stakeholders is key to how we anticipate, shape and adapt to changes in our
                                business environment in 2009. Our stakeholders include employees, customers, shareholders,
                                suppliers, trade organisations, authorities and local communities. By listening to them and being
                                open about our core values, views and actions, we can build trust and address their concerns and

                                Internal Stakeholders
                                Employees at all job levels are held accountable for compliance with environmental and safety
                                requirements, as well as the achievement of continuous improvement objectives and targets
                                appropriate to their function. JEC provides relevant environmental, health and safety training, and
                                communication channels to its employees.

                                                                                        The JEC magazine, which is published three
                                                                                        times a year, discusses and reports EHS
                                                                                        performance and environmentally
                                                                                        sustainable technology. In issue 15 of 2009,
                                                                                        an article focused on the strategies and
                                                                                        control measures to stamp out the spread of
                                                                                        H1N1 in JEC.

                                                                                        The Independent Development Plan (IDP) is
                                                                                        conducted regularly to gather and act on
                                                                                        employees’ opinions and thoughts. The key
                                                                                        areas covered include competence
                                                                                        development and training.

                                                                                        EHS issues are included in many of JEC’s
                                                                                        regular management training programmes,
                                  Communications                                        while the induction of new employees
                                  JEC encourages open dialogue, partnerships            includes information about EHS matters
                                  and engagement as these often offer the               during face-to-face briefings.
                                  best approach to capture feedback from
                                  employees on matters that impact them and             In view of today’s high levels of concern over
                                  the performance of the company. These                 occupational, health and safety and
                                  include the internal intranet site that covers        environmental protection matters, JEC firmly
                                  environmental, health and safety (EHS)                believes the best way to equip our
                                  issues and activities within the Group. This is       employees is by providing professional and
JEC Environmental, Health and

                                  a channel for the dissemination of news and           high quality workshops and training sessions.
                                  information about EHS matters. Employees              In this regard, JEC has worked with an
                                  also have access to the overview of JEC’s             experienced consultant to establish a training
                                                                                        programme tailor-made for our employees in
Safety Report 2009

                                  relevant planning, objectives, targets,
                                  activities and management systems, as well            2009. Many of the participants found the
                                  as company policies.                                  training to be greatly rewarding.

External Stakeholders
JEC engages with a range of stakeholders          Governments and Authorities
to share information, better understand           JEC engages in extensive dialogue with the
their views on JEC’s EHS performance,             Hong Kong Special Administrative Region
and determine opportunities for                   (HKSAR) Government and is committed to
collaboration and reaching goals. JEC             the Clean Air Charter. JEC continues to
appreciates the important role that each of       participate actively in the HKSAR
its stakeholders plays in the company’s           Government’s environmental engineering
continued success and strives to take into        projects aimed at the sustainable
account their varied perspectives.                development of Hong Kong. (A case study
                                                  describes how JEC assisted in improving
                                                  water quality could be found on page 20).
In line with JEC’s core value of being
“customer-orientated”, we are proactive in        Community
addressing the needs of our customers and         JEC participates actively in the communities
are committed to introducing them to new          in which it operates. Elderly and child care
technology and methodologies that provide         services as well as mental health are the key
real value.                                       elements our community-based activities.

We constantly strive to enhance and               JEC is delighted to have been nominated as
establish channels to reach the customer          a “Caring Company” by the Hong Kong
and allow us to identify priorities and gaps in   Council of Social Services for five
meeting needs and expectations. This              consecutive years since 2006. The Caring
philosophy is a good insight into JEC as it       Scheme was launched to recognise those
stands today, and as we plan our directions       companies which demonstrate good
for 2010 and beyond.                              corporate citizenship and satisfy the criteria
                                                  of Volunteering, Employee Friendly,
JEC’s corporate website, www.jec.com,             Employing the Vulnerable, Caring for the
contains extensive information about the          Environment and Giving categories.
company’s environmental, health and safety
goals and principles.

Services Suppliers and Contractors
Communication tools for keeping all parties
continuously informed about JEC’s
requirements have been developed and it is
essential that business partners are provided
with this information in a manner that is
consistent with JEC’s EHS Policy &
Management System Guidelines.

In 2009, we conducted a specific workshop
                                                                                                   JEC Environmental, Health and

about safe operation in heavy lifting for our
logistics service provider. This is to enable
our stakeholders to have a better
                                                                                                              Safety Report 2009

understanding of our business and projects,
while allowing us to understand and take into
consideration their concerns.

                                Health and Safety
                                Health and Safety Targets and Achievements
                                The objectives reported below were derived from targets adopted by JEC and cover the period
                                January to December 2009.

                                           Health and Safety Objectives                                        Target Completion                                    Status                    Score

                                       Safety Index*
                                       1.64 for JEC Group, including JVs                                          December 2009                          • 1.18                               100%
                                       and sub-contractors

                                       Man-day Loss                                                                                                                                           85.6%
                                                                                                                  December 2009                          • 428 man-day
                                       374 for man-day loss

                                                                                                                                                         • Zero fatal and
                                       Fatal & Serious Incidents                                                                                           serious incidents
                                       Ensure zero fatal and serious                                                                                       were recorded,
                                       incidents, and meet and exceed                                                                                      and compliance                     100%
                                                                                                                  December 2009
                                       relevant health and safety                                                                                          with relevant
                                       legislation                                                                                                         health and safety
                                                                                                                                                           legislation was

                                *Note: 12-month moving average = (Total no. of workplace incidents in the past 12 months DIVIDED BY the average headcount over the past 12 months) x 1,000.
JEC Environmental, Health and
Safety Report 2009

                         Health and Safety Stewardship and Progress

                         Health and Safety issues are managed in      the audacious target of zero accidents in
                         conjunction with Environmental matters       2009. This proves that JEC has well
                         through an EHS Management System. In         developed and mature health and safety
                         2009, JEC strived to continually provide a   procedures in place.
                         safe and healthy environment for our
                         employees, our contractors and everyone      While we recorded the lowest accident
                         else working with us at our workplaces       rate in 2009, our man-day loss is 428
                         through safe work behaviours, practices      which is still above our balanced
                         and systems. We want everybody to go         scorecard target of 372. The message for
                         home safely to their families when they      us here is that there is still room for
                         finish a day's work. With the Chief          improvement.
                         Executive’s commitment and under the
                         Executive Director & Chief Operating         While we performed very well against the
                         Officer’s guidance, the accident rate        industry benchmark result, Hong Kong
                         dropped sharply after implementation of      construction industry performance (please
                         the OHS Management System in 2004.           refer the table), we must remain vigilant
                         The accident rate is 1.18/1000 in 2009; it   and stay focused on our bold
                         has fallen a hefty 28% compared to 2008.     goal - zero accidents by 2012.
                         In addition, our regional offices achieved

                         Comparison the accident rate per 1000 workers
                         between Hong Kong Construction Industry and JEC
                         (2001 - 2009)

Accident rate per 1000


                                                                                                                    JEC Environmental, Health and

                                                                                                                               Safety Report 2009

                                                                           JEC           HK Construction Industry

                                Occupational Health and Hygiene

                                Motorised Stair-Climbing Hand Truck                JEC fully recognises safety, health and
                                Preventing back injuries is a major workplace      hygiene at work as an integral part of its
                                safety challenge. According to Hong Kong’s         business strategy and one of the basic
                                Labour Department, more than 18% of all            principles of JEC’s health and safety policy is
                                employee compensation claims involve               providing adequate and appropriate
                                injuries while lifting or carrying goods. On top   resources to our employees. To this end we
                                of the victims’ pain and suffering, this is        have established the “Safety Working Cycle”
                                costing the industry a huge amount of              for the lifting of cylinders and compressors
                                money.                                             and provided the motorised stair-climbing
                                                                                   hand truck to eliminate the risk of back injury
                                Due to the prevalence and severity of back         and property damage during daily
                                injuries throughout the business and the           maintenance operations.
                                industry, spinal safety awareness is
                                necessary. Sprains and strains are the most
                                common causes of lower back pain. Lifting
                                improperly is the single largest cause of back
                                pain and injury. Instituting proper lifting
                                techniques and other safety measures can
                                significantly reduce the chance of a back
                                injury incident.

                                                                                   Prevent the spread of H1N1 Outbreak
                                                                                   According to JEC Group Health and Safety
                                                                                   Policy, “JEC is dedicated to providing and
                                                                                   maintaining a safe, healthy working
                                                                                   environment and safe systems of work for
                                                                                   our employees, sub-contractors, suppliers
                                                                                   and the public in all locations and activities”.
                                                                                   In this regard, since 2005, JEC has issued
                                                                                   guidelines for preventive measures regarding
                                                                                   influenza outbreaks or potential pandemics.
                                                                                   In the light of the H1N1 outbreak in 2009,
                                                                                   JEC’s Chief Executive, Mr Alex Newbigging,
                                                                                   and the Emergency Response Committee
                                                                                   members immediately convened an
JEC Environmental, Health and

                                                                                   Emergency Response Committee meeting in
                                                                                   April 2009 to collectively review the planned
                                                                                   guidelines and coordinate the support,
Safety Report 2009

                                                                                   resources, and supervision necessary to
                                                                                   successfully implement epidemic controls
                                                                                   and to prevent the Spread of the disease
                                                                                   within JEC.

Safety Training for New Generation

EHS Training Programme for
Graduate Scheme “A”
The purpose of the Scheme “A” EHS training
is to provide our management trainees with
the opportunity to achieve this necessary
reinforcement of theory through practice. This
is especially critical as engineers play an
important role in occupational safety and
health and environmental protection. A safe
design and operation on engineering works
not only prevents the chance of loss due to
accidents but also increases productivity. This
in turn strengthens the competitiveness of the

Hong Kong General Chamber of
Commerce (HKGCC)
The “HKGCC Business-School Partnership
Programme" between JEC and the Hong
Kong General Chamber of Commerce is in its
third year in 2009. Through better
co-operation and closer alliances between
the business sector and schools, we intend to
expose students to business practices and
equip them to meet the challenges of the 21st
Century. La Salle College was our partner
and JEC provided training for their students,
opening their minds to the working realities of
the business world as well as health and
environmental matters and the kind of work
involved within JEC.
                                                  JEC Environmental, Health and
                                                             Safety Report 2009

                                Environmental Protection
                                Environmental Targets and Achievements
                                The objectives reported below are derived from targets adopted by JEC and cover the period January to
                                December 2009.

                                         Environmental Objectives           Target Completion             Status                   Score

                                                                                                    Consumption has
                                     Electricity Consumption KPI1
                                                                                                    been reduced by
                                     Reduce electricity consumption by                                                              80%
                                                                              December 2009         about 1.6%
                                     2% in headquarters and branch
                                                                                                    compared to 2008
                                     offices by the end of 2009

                                     Resource Conservation KPI                                      Business Cards are
                                     Look at the feasibility of supplying                           now all printed on
                                     recycled-content paper instead of        December 2009         recycled-content               100%
                                     regular bleached paper                                         paper

                                                                                                    Percentage of paper
                                     Waste Collection KPI                                           recycling versus
                                     Increase the percentage of paper         December 2009         paper consumption               23%
                                     recycling by an additional 3%                                  is 0.7% more than

                                                                                                    Zero environmental
                                     Environmental Incidents KPI                                    incidents achieved
                                     Ensure zero environmental incidents,     December 2009         and compliance                 100%
                                     and meet and exceed relevant             and ongoing           with relevant
JEC Environmental, Health and

                                     environmental legislation                                      environmental
                                                                                                    legislation met
Safety Report 2009

                                     Communications                                                 Photography
                                     Participate actively in outreach         December 2009         Contest aimed at               100%
                                     activities to promote environmental                            raising social and
                                     protection                                                     environmental
                                                                                                         1 KPI: Key Performance Index / Indices
Environmental Stewardship and Progress
Our environmental management system provides a framework for control. It aims to ensure that
issues and environmental impacts are identified, standards are established, training is provided,
targets are set and audits are conducted. We treat compliance as the minimum acceptable
performance standard and continually seek to improve. In 2009, we maintained a zero rate of
environmental-related conviction case.

JEC has run a number of schemes for
recycling in its office premises since 2006.
The active support of all employees is very
important in this area. In 2009, JEC
recycled 33.7% of paper products
consumed. Compared to 2008, when we
recycled 4,180kg, we collected and
recycled over 4,280kg of paper waste in
2009, a 100kg increase.

                                                 Energy Consumption
                                                 JEC managed to reduce the overall energy
                                                 consumption in kilowatt hours across its
                                                 portfolio by 5.1% compared with 2008 in
                                                 Hong Kong offices. For our regional offices,
                                                 the Philippines achieved a 9.7% decrease
                                                 while Singapore increased its energy
                                                                                                    JEC Environmental, Health and

                                                 consumption by 67.3% compared with 2008.
                                                 This is mainly because Singapore
                                                 experienced a major business expansion in
                                                                                                               Safety Report 2009


                                                 Our 2009 Electricity Consumption KPI was a
                                                 2% reduction by headquarters and branch
                                                 offices. We are slightly down on this target
                                                 with a 1.6% reduction.
                                 Annual Energy Consumption                                                                                                  2009

                                                                                                                                         3                              4
                                   Permanent Office                                                                 Hong Kong                          Philippines          Singapore

                                   Electricity Consumption (kWh)                                                       668,037                            78,919             77,448

                                   Electricity Saving (kWh)                                                             36,314                             8,521             (31,175)

                                   Reduction of CO 2 emission (tonnes)                                                      10                                    3.8         N/A

                                   Equivalent to Planting Trees (unit)                                                     435                                166             N/A

                                1 CO2 emission = activity data (kWh) x emission factor (kg CO2 / kWh). The emission factor is 0.56 kg CO2 / kWh as advised by
                                  CLP Power Hong Kong (CLP) for 2009. The emission factor was 0.83 kg CO2 / kWh by Hongkong Electric (HKE) for 2007. The
                                  emission factor was 0.449 kg/CO2 / kWh by CO2 emission from fuel combustion 2009 edition for Philippines.

                                2 Guidelines to account for and report on greenhouse gas emissions and removals for buildings (for commercial, residential
                                  or institutional purposes) in Hong Kong 2008 Edition, Annex A (iv): The removal potential of each unit of tree is 23kg / year
                                  based on Hong Kong’s location, woodland types and estimated density of trees.

                                3 Hong Kong permanent offices included 13/F Somerset House Taikoo Place, 12 & 17/F Sunbeam Plaza Kowloon and 37/F
                                  Two Exchange Square Central. Please note that 19/F Sunbeam Plaza Kowloon is excluded from the chart as this office was
                                  only operational from January 2009 and its inclusion would result in an inaccurate comparison with 2008 data.

                                4 The annual energy consumption of Philippines permanent office is counted from March to December 2009.

                                5 The electricity consumption compared with 2008 is increased.
JEC Environmental, Health and
Safety Report 2009

Continuous Improvement - Energy Audit
According to the Hong Kong Energy End-user Data
2009 by Electrical & Mechanical Services
Department, electricity is the major fuel consumed by
the commercial sector and its usage is increasing
year on year. At JEC, we have been conducting an
energy audit of our workplaces since 2007. An energy
audit is an examination of an energy-consuming
equipment/system to ensure that energy is being
used efficiently. It is an effective energy management
tool to identify and implement the means to achieve
energy efficiency and conservation. Not only can
energy savings be achieved, energy audits also
highlight areas for improvement and ultimately save

The scope of the audit includes running an analysis
on the performance of the lighting systems, air condi-
tioning systems, ventilation systems and all other
electrical and mechanical (E&M) equipment in the
workplace. Several energy management
opportunities (EMOs) are then identified through
detailed analysis. Once an EMO is identified, specific
energy-saving measures are proposed together with
a corresponding implementation plan. This implemen-
tation plan comprises an estimated capital cost,
subsequent recurrent cost, estimated savings in
energy, payback period and the time frame for
implementation. In 2009, we conducted an energy
audit and the environmental improvement plan for
electricity consumption was extended to our
Philippines office. The active support of all employees
is very important in this area and JEC Philippines
reduced across its consumption by 9.7% for
                                                          JEC Environmental, Health and
                                                                     Safety Report 2009

                                Case Study
                                Ultraviolet (UV) disinfection works for Sha Tin Sewage Treatment Works
                                (Sha Tin STWs) and Tai Po Sewage Treatment Works (Tai Po STWs)

                                                                                    Hong Kong is a thriving port with a population
                                                                                    of over 7 million people. It relies heavily on the
                                                                                    sea for navigation, recreation, seafood
                                                                                    production, and the supply of flushing and
                                                                                    cooling water. The sea surrounding us is also
                                                                                    home to diverse forms of marine life ranging
                                                                                    from microscopic algae to dolphins. Hong Kong
                                                                                    is therefore fully committed to protecting its
                                                                                    marine environment.

                                                                                    The treated effluent from Sha Tin and Tai Po
                                                                                    STWs is currently discharged via the Tolo
                                                                                    Harbour Effluent Export Scheme into Kai Tak
                                                                                    Nullah and into the Victoria Harbour. Upon
                                                                                    completion of the UV disinfection works for the
                                                                                    two STWs, the water quality at Kai Tak Nullah
                                                                                    was further improved through a reduction of the
                                                                                    Escherichia Coli levels. This result achieved the
                                                                                    new discharge standard of the Environmental
                                                                                    Protection Department (EPD) for treated
                                                                                    effluent. Concurrently, the Drainage Services
                                                                                    Department (DSD) is expanding the capacities
                                                                                    of Sha Tin and Tai Po STWs to 340,000 m3 per
                                                                                    day and 120,000 m3 per day respectively, to
                                                                                    cope with developments in Sha Tin, Ma On
                                                                                    Shan and Tai Po.

                                 Project Information                                JEC is very proud to support the Hong Kong
                                                                                    SAR Government and to have demonstrated its
                                                                                    ability and technical know-how towards
                                 Client:                  Drainage Services         improving the marine water quality of Victoria
                                                          Department (DSD),         Harbour.
                                                          HKSAR Government

                                 Main Contractor:         The Jardine Engineering
                                                          Corporation, Limited

                                 Commencement of
                                 Project:                 May 2008
JEC Environmental, Health and

                                 Construction Phase:      May 2008 – June 2010

                                 Trial Commencement:      May 2010
Safety Report 2009

                                 Completion of Project:   July 2012

What is Escherichia coli?
Escherichia coli is a kind of bacteria found in human faeces; it is often used as an indicator of sewage
pollution. It is one of the important parameters which indicate the general conditions of water and its
health risk to the public. A higher Escherichia coli count indicates greater faecal contamination and a
higher health risk.

Disinfection Process
In this project, the design flow rate of the UV system is 340,000 m3 per day for Sha Tin STW and
120,000 m3 per day for Tai Po STW and the UV-treated effluent has to meet the following standard:

  Effluent Bacterial Standard
  Escherichia coli         1,000 cfu/100 ml (monthly geometric mean)

                           15,000 cfu/100ml (95 percentile)

UV technology provides a proven, accepted and environmentally friendly method of disinfecting
treated effluent. UV light is generated in special UV lamps. It changes the DNA of microorganisms in
the wastewater and interrupts their cell division, consequently they can no longer reproduce and their
pathogenic effect is diminished.

                                                                      Advantages of UV Disinfection
                                                                         Effective inactivation of most viruses,
                                                                         bacteria, and spores. Researchers
                                                                         believe that UV disinfection is also
                                                                         effective against some cysts.
                                                                         Physical process rather than a chemical
                                                                         UV disinfection is a physical process; it
                                                                         does not involve transport, storage,
                                                                         handling or use of dangerous chemicals.
                                                                         No residual effect that could harm
                                                                         humans or aquatic life.
                                                                         Equipment requires less space than other
                                                                                                                     JEC Environmental, Health and

Other Information
                                                                                                                                Safety Report 2009

For more information of recent marine water quality, please visit EPD website or click the following

                                Social Responsibility
                                Promoting Social Responsibility
                                JEC strongly upholds its core value of
                                “Responsibility” – from the safety of our
                                 employees to our influence on the environment
                                and to making a positive impact where we
                                operate – we act with integrity and demonstrate
                                through action that we care.

                                In 2009, JEC launched a photography contest
                                inviting all JEC staff to present their ideas
                                through the photo images. The competition
                                aimed to raise social and environmental
                                awareness among JEC staff, illustrate ways to     techniques and sustainably sourced materials.
                                sustain society and the environment, illustrate   Product assessments are based on life cycle
                                how every single person could make a positive     considerations – from raw materials,
                                impact on the world and promote the pursuit of    manufacturing process, distribution and
                                a responsible life style.                         consumer use to final disposal.
                                                                                  Examples of such environmentally sustainable
                                Green Buildings - Optimised                       products are TPI Toilet Partition System and
                                                                                  Forbo Flooring System. TPI’s partitions are
                                Building Materials                                made from environmentally-friendly
                                As set out in the 2008/2009 Policy Agenda, the    formaldehyde emission-free materials. As a
                                Hong Kong SAR Government is dedicated to          result, users benefit from improved indoor air
                                promoting environmental protection and energy     quality as well as enjoy low maintenance and
                                conservation in government buildings. Under       minimal operating costs. Forbo Flooring
                                this agenda, government buildings undergo an      Systems was the first flooring manufacturer to
                                internationally or locally recognised building    be awarded the “Hong Kong Green Label”
                                environmental assessment system. The              Certificate for its Marmoleum Real product on
                                adoption of comprehensive targets on various      26th June 2009.
                                aspects of environmental performance for
                                government buildings will help to enhance the     We are confident that our building products and
                                environmental awareness of Hong Kong              other green building solutions will be successful
                                citizens.                                         in assisting designers and clients to select the
                                                                                  best sustainable products and solution
                                JEC is committed to environmental protection      installation.
                                and works with leading building product
                                suppliers who use low-impact manufacturing        Supporting Research and
                                                                                  First launched in 2005, JEC’s Outstanding
                                                                                  Engineering Project Award (OEPA) aims to
                                                                                  encourage university students to develop
                                                                                  innovative products and creative ideas. JEC
JEC Environmental, Health and

                                                                                  hosted the OEPA in 2009 for the fourth
                                                                                  consecutive year and there were 32
                                                                                  applications from five Hong Kong universities.
                                                                                  The team from the Hong Kong University of
Safety Report 2009

                                                                                  Science and Technology was awarded the
                                                                                  championship. Their winning project, titled “The
                                                                                  Possible Life – Household Electrical
                                                                                  Appliances”, is an intelligent home system that
                                                                                  aims to enhance the living standard of dwellers
 22                                                                               in an affordable and convenient way.
JEC Caring Team
The JEC Caring Team is led by a group of
community-minded individuals who have dedicated
their time and energy to giving back to society since
2005. The team collaborates with different
non-government organisations to provide services
and assistance for various groups in society.

In 2009 the team put in 900 hours of community
service, reflecting our core value of being
 “Responsible” by making a positive impact on the
Hong Kong community.

Jardine Ambassadors at JEC
The Jardine Ambassadors’ Programme brings
together young executives from all parts of Jardine
Matheson in Hong Kong in a two-year personal
development programme that benefits the
community, the Group and the Ambassadors.

The main focus of the Ambassadors is Mindset,
Jardine Matheson Group’s in-house registered charity
which aims to make a difference in the area of mental
health. Each year, two to three JEC executives join
the programme. The Ambassadors aim to change
people’s attitudes by organising activities and
projects that raise awareness and understanding of
mental health issues.

There are currently six Jardine Ambassadors from
JEC and Trane, our joint-venture company. They
are : Elaine Mo, Kevin Kwong, Ronny Lo,
Daphne Wu, Lydia Po and John Chan, all of whom
are executives from our various business units.
                                                        JEC Environmental, Health and
                                                                   Safety Report 2009

                                Sponsorships and Donations
                                JEC is a regular sponsor and participant in local charities and events. Here are a few key
                                initiatives that we carried out in 2009.

                                JEC supports MINDSET through donation and
                                volunteer services for the ex-mentally ill. In
                                2009, we actively participated in ‘Walk up
                                Jardine House’ and ‘Central Rat Race’, the
                                fund-raising activities for MINDSET. We raised a
                                total of HK$132,000 in 2009.

                                Along with the Jardine Ambassadors, the JEC
                                caring team also actively participates in the
                                volunteer services organised by MINDSET. In
                                2009, team members joined MINDSET Fun Day
                                together with colleagues from Jardines. They
                                also participated in a day out to an organic farm
                                with service users of Mental Health Association
                                in May 2009.

                                Community Chest Fund Raising
                                JEC donated a total of HK$30,480 to The
                                Community Chest Green Day; half of this
                                amount was donated by staff and the other half
                                matched by JEC. All the participants enjoyed a
                                green ride on 7th and 8th June 2009.

                                Orphans at Phyathai Babies Home
                                JEC Thailand donated 30,000 Baht to the
                                Phyathai Babies Home Foundation on
                                17th October 2009. In addition JEC staff also
                                donated baby care products and clothing. The
                                Foundation houses orphans, some of whom are
                                HIV positive.
JEC Environmental, Health and
Safety Report 2009

Donation to Typhoon Victims in the Philippines
Jardine Distribution, Inc. (JDI Philippines)
management and staff joined forces to provide aid
and donations to the victims of Typhoons Ondoy
and Pepeng. Relief bags containing essential items
such as rice, canned goods, noodles, toiletries,
blankets, towels, and clothing were prepared and
packed by volunteer staff. Excess relief goods were
donated to the Center of Hope Worldwide, a
non-governmental organisation providing aid in

General Manager of JDI Philippines, Mr. Edwin
Hernandez said that donating relief bags is just one
of the many ways JDI is helping typhoon victims.
Assistance is also being given to farmers through
donations of agricultural products. In addition, the
company is also donating construction materials to
help in the reconstruction of damaged elementary

Donation Taiwan Typhoon Relief
Typhoon Morakot hit Taiwan on 7th – 8th August and
drastically impacted the middle, southern and
eastern parts of Taiwan. Flooding and mudslides
occurred in different townships and villages in
Tainan, Pingdong, Kaohsiung, Chiayi, Nantou and
Taidong counties and municipalities. JEC staff
raised HK$ 46,360 for Typhoon Relief in Taiwan.
The sum was matched dollar-for-dollar by JEC. The
total donation of HK$ 92,720 was presented to
Hong Kong Red Cross for providing vital aid and
care to the typhoon victims in the form of
immediate food and shelter, and reconstruction

E&M Safety Walk and Carnival Fair
JEC is an active sponsor of the E&M Safety Walk
                                                       JEC Environmental, Health and

and Carnival Fair that is organised by The Hong
Kong Federation of Electrical & Mechanical
Contractors Limited and The Federation of Hong
Kong Electrical & Mechanical Industries Trade
                                                                  Safety Report 2009


                                Looking Forward
                                Health and Safety Targets 2010

                                    Health and Safety Performance            Target    Responsibility

                                   Safety Index*                                         OHSMR
                                   JEC Group, including JVs and                1.5

                                   Man-day Loss
                                   Reduce the percentage of man-day            374       DOHSMR
                                   losses by 12.6% compared with 2009
                                                                                                            - 12-month moving average = (Total no.
                                                                                                              of workplace incidents in the past 12
                                                                                                              months DIVIDED BY the average
                                   Fatal & Serious Incidents                                                  headcount over the past 12 months) x
                                   Ensure zero fatal and serious                         OHSMR
                                   incidents, and meet and exceed             Zero       DOHSMR             - OHSMR: Occupational Health & Safety
                                                                                                              Management Representative
                                   relevant health and safety legislation
                                                                                                            - DOHSMR: Deputy Occupational Health
                                                                                                              & Safety Management Representative

                                  Health and Safety Strategy for JEC                  Encourage and secure the engagement of
                                  to 2012                                             Promote a preventive workplace safety culture
                                  While we are proud of our safety record, we are     of self-regulation through integration of health
                                  far from satisfied. Certainly we have made          and safety within management systems
                                  great progress. But as our business continues       Promote greater participation on health and
JEC Environmental, Health and

                                  to grow, we will face more challenges and           safety issues between employers, employees
                                  opportunities in the future. Therefore, we need     and other health and safety players
                                  to modify our existing activities through better    Headquarters to lead workplace health and
                                  co-ordination and collaboration.                    safety improvement by demonstrating best
Safety Report 2009

                                                                                      practice and promoting this to the regional
                                  There are six key themes in the Health and          offices
                                  Safety Strategy which can be summarised as
                                  follows:                                            Our successful record will spur JEC to
                                  Encourage the building of better working            continue to exceed expectations and
 26                               Enhance the contribution of workplace health
                                                                                      demonstrate the highest safety standards.
                                  and safety to productivity and competitiveness
Environmental KPI Improvement Plan 2010

         Environmental Improvement                    Responsibility    Completion

   Electricity Consumption KPI
   Reduce electricity consumption in
                                                          EMR          December 2010
   headquarters, branches and regional
   offices by 2% compared to 2009 by
   the end

   Resource Conservation KPI
   Look at the feasibility of supplying                   EMR
                                                                       December 2010
   recycled-content paper instead of                     DEMR
   regular bleached paper

   Waste Collection KPI
   Recycle 36% of the paper products                                   December 2010

   Environmental Incidents KPI
   Ensure zero environmental incidents                   EMR
                                                                       December 2010
   and meet relevant environmental                       DEMR
   legislation requirements

   Participate actively in outreach                       EMR
                                                         DEMR          December 2010
   activities to promote environmental

 EMR: Environmental Management Representative
 DEMR: Deputy Environment Management Representative
                                                                                       JEC Environmental, Health and
                                                                                                  Safety Report 2009

                                GRI – Key Indicators
                                The selected key indicators listed below from the GRI G3 Guidelines provide a quick overview of our
                                performance in 2009.

                                    GRI                                                                                                                       Date
                                 reference                          Performance Indicators                                                                                                                  Unit
                                                                                                                                        2009                   2008                  2007

                                 Environmental Performance

                                    EN1                   Material use – paper consumption                                            12,702                 12,479                12,647                    kg

                                                          Indirect energy consumption –                                                             a                     b
                                    EN4                                                                                              668,037                811,155               857,506                  kWh
                                                          electricity consumption

                                                          Initiatives to reduce indirect energy
                                    EN7                   consumption and reductions achieved                                         36,314                 46,351                33,320                  kWh
                                                          – electricity consumption

                                                          Total CO 2 emission – electricity
                                   EN16                                                                                                  509                   606                    655                Tonnes

                                                          Initiative to reduce CO 2 emission and
                                   EN18                   reduction achieved – electricity                                                10                   34.5                   24.7               Tonnes

                                                          Total weight of waste by type and
                                   EN22                                                                                                4,280                  4,180                  3,340                   kg
                                                          disposal method – paper to recycle

                                                          Monetary value of significant fines, and
                                   EN28                   total number of non-monetary sanctions
                                                                                                                                           0                      0                     0                  Case
                                                          for non-compliance with environmental
                                                          laws and regulations

                                 Social Performance
                                                          Total employees:
                                                          - Hong Kong                                                                  1,520                  1,345                 1,222
                                    LA1                                                                                                                                                                 Number
                                                          - Regional                                                                   1,268                  1,188                 1,139
                                                          - Joint Ventures                                                               904                    898                   894

                                                          Fatalities (employee only)                                                      0                     0                     0                 Number
                                    LA7                                                                                                                                                                  Day
                                                          Man-days lost (employee only)                                                  428                   440                   292
JEC Environmental, Health and

                                   LA10                   Training per employee                                                           5.4                    7                      7
Safety Report 2009

                                                          Percentage of employees receiving
                                   LA12                   regular performance and career devel-                                          100                   100                   100                      %
                                                          opment reviews
                                 Note: All data from JEC HK except indicator LA1 and LA7.

 28                              a) The energy consumption included Hong Kong permanent offices (13/F Somerset House Taikoo Place, 12 & 17/F Sunbeam Plaza Kowloon and 37/F Two Exchange Square Central).
                                 b) The energy consumption is included Hong Kong permanent offices (13/F Somerset House Taikoo Place, 12 & 17/F Sunbeam Plaza Kowloon, 37/F Two Exchange Square Central and 5/F Len
                                    Shing Industrial Building 4 Ah Kung Ngam Village Road Shau Kei Wan). Please note that 19/F Sunbeam Plaza Kowloon is excluded from the chart as this office was only operational from
                                    January 2009 and its inclusion would result in an inaccurate comparison with 2008 data.
JEC is dedicated to improving its environmental, health and safety performance. As
a reminder, JEC has a centralised customer suggestion channel that is monitored
and answered by a fully manned 24-hour customer support call centre. Please do
not hesitate to communicate to us any comments regarding JEC’s Environmental,
Health and Safety Report 2009 and how JEC can continue to improve its

JEC’s Environmental, Health and Safety Report 2009 is also available in English
and Chinese on http://www.jec.com.

Thank you for reading our report.

If you have any suggestions, please send us an e-mail or mail a letter to the
following address:

Address:      13/F Somerset House, TaiKoo Place, 979 King’s Road, Hong Kong.
E-mail:       jec@jec.com
                                                                                     JEC Environmental, Health and

Website:      www.jec.com
Tel:          852 2807-1717
Fax:          852 2887-9090
                                                                                                Safety Report 2009

Ricky Lo, Manager - Environmental & Safety
Linda Luk, Group Communications Manager

                  Jardine Engineering Corporation

                  Hong Kong Headquarters
                  13/F Somerset House
                  Taikoo Place, 979 King’s Road
                  Hong Kong
                  Tel 852 2807 1717
                  Fax 852 2887 9090
                  Email jec@jec.com

                  Room 2513-2514 Shenhua Commercial Building
                  No. 2018 Jiabin Road
                  Shenzhen 518005. PRC
                  Tel 86 755 8238 3928
                  Fax 86 755 8238 3938

                  Alameda Dr. Carlos D’Assumpcao. No. 180
                  Edf. Tong Nam Ah Centre Com 18/U-V. Macau
                  Tel 853 2825 3077
                  Fax 853 2825 3076

                  G/F Jardine Building
                  2901, JM Compound, Faraday Street Corner
                  Osmeña Highway, 1234 Makati City
                  The Philippines
                  Tel 632 843 6020
                  Fax 632 844 2235

                  178 Paya Lebar Road
                  #03-10 Singapore 409030
                  Tel 65 6305 6388
                  Fax 65 6747 6340

                  22/F Times Square Building
                  246 Sukhumvit Road, Klongtoey
                  Bangkok 10110, Thailand
                  Tel 66 2 253 8821
                  Fax 66 2 254 0218


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