Sustainability Report

Sustainability Report Keppel T&T is committed to delivering value through sustaining growth in our business, ... I hope this Report will provide more ...

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Sustainability Report

Sustainability Report Keppel T&T is committed to delivering value through sustaining growth in our business, empowering the lives of our people and nurturing communities wherever we operate.

Sustainability Framework

Sustaining Growth

Empowering Lives

Nurturing Communities

Our commitment to business excellence is underpinned by an unwavering focus on strong corporate governance and prudent financial management.

People are the cornerstone of our businesses.

As a global citizen, we believe that as communities thrive, we thrive. We engage and nurture communities wherever we are, with the aim of achieving a sustainable future together.

Resource efficiency is our responsibility and makes good business sense.

As an employer of choice, we are committed to grow and nurture our talent pool through continuous training and development to help our people reach their full potential.

Innovation and delivering quality products and services sharpen our competitive edge.

We want to instil a culture of safety so that everyone who comes to work goes home safe.

For more information, go to: pages 50–59

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For more information, go to: pages 60–66

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

As leaders in our businesses, we support industry initiatives and encourage open dialogue to promote growth.

For more information, go to: page 67

Letter to Our Stakeholders Dear Valued Shareholders, 2016 was another year of continued focus on climate action by governments around the world, with incoming impetus on corporations to take on greater environmental stewardship. As governments work towards mitigating climate change, Keppel T&T is also contributing to the sustainability agenda. Our environmental sustainability efforts support the Singapore government’s commitment to reduce carbon emissions and intensity, and the UN Sustainable Development Goal to combat climate change and its impact. In line with the growing emphasis on corporate sustainability, the Singapore Exchange has mandated sustainability reporting for listed companies on a “comply or explain” basis with effect from the financial year ending on or after 31 December 2017. With that in mind, I am pleased to present the sixth report in our long tradition of sustainability reporting. This 2016 report is prepared in accordance with the internationally recognised Global Reporting Initiative (GRI) framework and sets out to illustrate how Keppel T&T creates long-term shareholder value.

Sustainability Performance in 2016

Keppel T&T continued to reaffirm our commitment to environmental sustainability through energy conservation and resource optimisation efforts. In China, the Tianjin Eco-City Distribution Centre became the first logistics facility in China to be awarded the 2-star Green Building Design Label for its energy-efficient

features. Since 2015, all of the data centre facilities owned or managed by Keppel Data Centres in Singapore have been certified with the Singapore Standard for Green Data Centres – Energy and Environmental Management System (SS564). Keppel Data Centres is also a test bed for the world’s first Tropical Data Centre in an initiative led by the Info-Communications Media Development Authority (IMDA) of Singapore, which explores the possibility of reducing up to 40% of data centres’ energy consumption. Over the years, we maintain our focus on people development as a core pillar for our future growth. In 2016, the average number of training hours per employee increased to 32 hours, with more professional and soft skills training provided. A new Mentoring Framework was introduced to help young talents navigate organisational culture, and to enable cross-functional knowledge sharing. We continue to improve employee engagement through regular dialogue sessions, focus groups and engagement surveys. Ongoing programmes to promote work-life balance and staff wellness were also integrated in all our operations. Notwithstanding our strong safety culture and mechanisms, we regret that there was a fatality at Keppel Logistics Foshan

Keppel T&T continued to reaffirm our commitment to environmental sustainability through energy conservation and resource optimisation efforts.

in 2016. We have since carried out a thorough investigation and implemented corrective actions to prevent recurrences.

The Path Ahead

Our Logistics and Data Centre Divisions are well-positioned to capture opportunities arising from the increasing demand from cloud computing and e-commerce industries. As we expand our data centre portfolio, we will continue to focus on energy efficiency, security and reliability. Together with Keppel DC REIT and Alpha Data Centre Fund, we strive as OneKeppel, to develop, acquire and operate green data centres with high energy efficiency. In the Logistics Division, we will continue to use innovative technology in delivering sustainable urban logistics solutions. Resource optimisation and better route planning to reduce redundancies in distribution are examples of how we can minimise negative environmental impact while reducing costs. I hope this Report will provide more insight for our stakeholders on Keppel T&T’s sustainability efforts and strategy. We value and look forward to your feedback. Yours sincerely,

Thomas Pang 1 March 2017

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Sustainability Report

About this Report This is Keppel T&T’s sixth report that follows the internationally recognised GRI framework.

The annual Sustainability Report is prepared in accordance to the Global Reporting Initiative (GRI) G4 reporting guidelines, for the Core Option. Corresponding to G4’s emphasis on materiality, this Report covers the areas of sustainability that are deemed material to Keppel T&T, in terms of economic, environmental, social and governance aspects. The General Standard Disclosures G4-17 to G4-27 from the GRI G4 Sustainability Reporting Guidelines have been externally verified to confirm that they are correctly located both in the Content Index and in the text of the final report. Standard units of measurements used in this Report and conversion factors, where applicable, are explained in their respective sections. The sustainability performance of Keppel T&T is a part of Keppel Corporation’s externally assured Sustainability Report. We will review the need to engage a separate external assurer for our future Reports.

This Report covers material issues for Keppel T&T’s operating subsidiaries in the Logistics and Data Centre Divisions, as shown on page 132 - 134, as well as for the data centre facilities (Keppel DC Singapore 1, 2 and 3) where the Group is the facility manager. Entities which Keppel T&T does not have majority control over, or have yet to start full-scale operations by 1 July 2016 are excluded from the scope of reporting 1. Where possible, we aim to positively influence the sustainability performance of joint ventures and associated companies. The disclosure period for this Sustainability Report is aligned with the 2016 financial reporting period of January to December, as with the previous Report. However, the performance data stated in this Report was annualised based on 10-month actual data, as full year data was not available at the time of publication of this Report. If the actual data shows a variance of more than 5% from our estimations, we will restate the data and provide an explanation in the Sustainability Report produced in the following year.

The following have been excluded from the reporting scope: Keppel Tianjin Logistics, Keppel Jilin Food Logistics Park, Keppel Anhui Food Logistics Park, Keppel DC Singapore 4, Keppel DC Almere and Calcium DC.

1

Keppel T&T was honoured with the Most Transparent Company Award, Industrials Category (Runner Up) and Singapore Corporate Governance Merit Award (Big Cap) at the Securities Investors Association (Singapore) Investors’ Choice Awards 2016.

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Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

There are three instances of significant variance (of more than 5%) between our annualised data reported in the Sustainability Report 2015 and the actual data. The three instances are: • Liquefied Petroleum Gas (LPG) consumption is restated to 710GJ, lower than the annualised data of 753GJ due to changes in business requirements in the last two months of 2015. • Paper consumption is restated to 50,464kg, lower than the annualised data of 55,760kg due to fluctuations in purchase volume.

• Scope 3 Emissions is restated to 1,054tCO2, lower than the annualised data of 1,132 tCO2 due to less paper consumption and less electricity used for cooling system in the last two months of 2015. The waste data for 2012 – 2015 is restated to include only waste generation from Singapore logistics operations, due to unavailability of data from other sites. Otherwise, the reporting scope in 2016 remains the same as that in the Sustainability Report in 2015. For further queries, please contact: [email protected]

Performance Data 2012

2013

2014

2015

2016

Page

171,507 44,290 40.3 131.6 324,066 423 69 14 3,325 25,575 186 6,861

195,403 43,183 28.5 130.3 363,142 406 58 13 3,235 27,930 167 183

216,624 69,842 41.9 150 406,305 424 65 13 5,182 28,410 127 2,520

259,908 64,345 50.5 153.5 480,419 455 96 17 4,815 32,873 79 19,830

291,793 60,934 42.0 131.8 522,414 493 83 14 4,564 36,729 92 5,693

54-55 55-56 58-59 58-59 57-58 58-59 58-59 58-59 56-57 56-57 56-57 54-55

22 1.7

39 1.1

28 1.7

30 2.2

32 1.8

64-65 64

1.4 16.4

0.4 1.7

0.2 1.1

0 0

0.3 855.7

64-66 64-66

59,817 612

128,930 908

115,989 1,111

92,762 1,444

66,917 1,657

67 67

Environment Indirect Energy (GJ) Direct Energy (GJ) Paper (tonnes) Stretch Wrap (tonnes) Water (m3) Incinerated Waste in Singapore (tonnes) Waste Recycled in Singapore (tonnes) Recycling Rate in Singapore (%) Direct Carbon Emissions (tCO2) Indirect Carbon Emissions (tCO2)2 Indirect Emissions (tCO2) per $1 million Revenue Incremental Energy Saved3 (GJ) Labour Training Hours per Employee Monthly Employee Turnover (%) Accident Frequency Rate (reportable accidents per million man-hours) Accident Severity Rate (man-days lost per million man-hours) Community Donation and Sponsorship ($) Volunteer Hours Excluding emissions from data centres sold to KDC REIT. Incremental energy saved from initiatives undertaken during the year.

2 3

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Sustainability Report

About this Report

Accolades in 2016

Service Excellence

Corporate Governance

People

Keppel Logistics received the Singapore Domestic Logistics Service Provider of the Year award by Frost & Sullivan. This is the ninth time we have won awards from Frost & Sullivan within 10 years.

Keppel T&T was presented the Gold Award for Best Investor Relations, Gold Award for Best Annual Report and Silver Award for Best Managed Board in Mid Cap category at the Singapore Corporate Awards.

Keppel Logistics won the SPARKS Award at the National Trades Union Congress (NTUC) U SAFE Awards 2016, which recognises organisations for efforts and commitment towards promoting workplace safety and health.

Community Keppel Logistics received the SHARE Bronze Award presented by Community Chest Singapore.

Keppel T&T also won the Most Transparent Company Award, Industrials Category (Runner Up) and Singapore Corporate Governance Merit Award (Big Cap) at the Securities Investors Association (Singapore) Investors’ Choice Awards.

Keppel Logistics received the Singapore Road Safety Award (Heavy Goods Vehicle Fleet category, Merit) at the Singapore Road Safety Award Ceremony 2016.

Environment Keppel Data Centres and Alpha DC Fund acquired Keppel DC Frankfurt 1, a LEED Platinum accredited data centre in Frankfurt, Germany.

Strategic Memberships in Associations

Keppel T&T is currently a member, partner with or active in: Singapore Logistics Association; Republic Polytechnic; Singapore infocomm Technology Federation; Uptime Institute Asia Pacific Network; Singapore Business Federation; Management Development Institute of Singapore; Singapore Institute of Management, Nanyang Technological University; National University of Singapore; Supply Chain and Logistics Academy; Institute of Technical Education; Association of Aerospace Industries (Singapore); Singapore Industrial and Services Employees’ Union;

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Singapore National Employers Federation; Tripartite Alliance for Fair & Progressive Employment Practices; Foshan Association of Enterprises with Foreign Investment – standing director (1995); Foshan Logistics Industry Association – governing unit (2005); Guangdong International Freight Forwarders Association - standing director (2004); Guangdong Port & Harbours Association – standing director (since 2001); Singapore Chamber of Commerce and Industry in China – member (since 2002); Guangdong Guangzhou Customs Brokers Association – member (2009); Singapore-Guangdong Collaboration Council – director (since 2009); Singapore Business Group in Vietnam.

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

Managing Sustainability Leadership and Management Involvement Data Centre

Logistics

Board of Directors

Senior Management

CSR Committee

Human Resources

Safety Strategic Development, Risk and Compliance

Board Statement Keppel T&T’s Board of Directors oversees Keppel T&T’s sustainability performance, practices and initiatives and its compliance with SGX guidelines on corporate governance and sustainability reporting. The key material environmental, social and governance (ESG) issues for Keppel T&T have been identified and are regularly reviewed by its Board and Management.

As a listed company, Keppel T&T is committed to the Code of Corporate Governance of Singapore. The Code provides the framework for controls, checks and accountabilities and requires the Board of Directors to consider sustainability issues in its business decisions. On a quarterly basis, the Group’s sustainability performance in environmental, social and governance areas are reviewed by the Board. Sustainability risks are part of our new

project assessments for project managers to consider and incorporate into their mitigation plans. The Corporate Social Responsibility (CSR) Committee is a multi-disciplinary team comprising senior members across various corporate departments and business units. The Committee conducts annual review and analysis of the material aspect as well as monitors the performance of these aspects in Keppel T&T’s sustainability strategy.

Materiality and Stakeholder Engagement Keppel T&T adopts a four-step process to define the material aspects in our operations:

Identification

Prioritisation

Validation

Review

Cross-disciplinary CSR team shortlists a variety of issues based on feedback from stakeholders.

Material issues are grouped according to related topics.

The list of ranked material topics is circulated to Senior Management and stakeholders for feedback.

The CSR committee re-examines the material topics in relation to the feedback obtained after report publication to prepare for the next reporting cycle.

Through discussion and analysis, the topics are ranked in relation to the significance of their economic, environmental, social and governance impact.

Stakeholders are defined as groups of people or entities that are directly or indirectly influenced by our business operations and outcomes, or that can significantly influence our businesses.

Feedback from our key stakeholder groups forms a crucial part of our strategic and business planning, and is viewed as a valuable insight for the Group to continuously improve our sustainability performance.  

Through internal discussion and review with external consultants, key stakeholder groups are identified across the entire value chain and each stage of our business life cycle. Engagements with key stakeholder groups are planned annually.

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Sustainability Report

Managing Sustainability Engagements with Key Stakeholder Groups in 2016 Employees

Customers

Suppliers

A pulse survey was conducted to measure the level of employee engagement.

Annual Customer Surveys and engagement activities were conducted to measure customer satisfaction and collect feedback.

Safety briefings were regularly conducted for staff and contractors working on site.

An annual town hall meeting was conducted to communicate the Company’s strategy and policy changes.

Annual review of suppliers is conducted to evaluate suppliers’ performance and raise feedback or concerns.

Breakfast and lunch talks with Senior Management were organised to orientate new employees and familiarise them with the Company’s management team.

Keppel Logistics involved a long-standing Fast-Moving Consumer Goods (FMCG) customer to implement the Electronic Proof of Delivery and a healthcare customer to implement mobile stock-take.

Half-yearly newsletters were circulated to keep employees abreast of the Company’s new developments.

Keppel Logistics Foshan held workshops with customers to discuss the economic climate.

Industry*

Local Communities

Shareholders

Under the Keppel-NUS Corporate Lab initiative, we worked closely with NUS to explore logistics & data centre technologies. Keppel’s industry insights contributed to the development of practical technologies and initiatives.

Regular dialogue is held with our endorsed charity organisations, which shapes our community outreach initiatives, to ensure the relevance of the activities.

Shareholders are kept abreast of the Company’s key developments through press releases and Annual Reports. Annual General Meetings and investor meetings are conducted to engage our shareholders and investors in two-way communications.

* We have created a separate section for Industry in this year’s Report to better highlight our collaboration with research institutes and business federations.

Unless otherwise stated, all engagements mentioned in this Report take place at least once a year. In 2016, a CSR survey was conducted with Keppel Logistics’ customers in Singapore to review our material aspects and reporting priorities. To illustrate the

degree of importance to internal and external stakeholders, the material aspects have been plotted on a materiality matrix (facing page). The top three material aspects identified through the survey are occupational health & safety, ethical sourcing & purchasing policies and green operational practices. The results of the

Keppel Logistics works closely with key stakeholders to update them on new capabilities to jointly improve efficiencies.

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Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

survey are incorporated in our Annual Materiality Review. The Materiality Review in 2016 confirmed the significant economic, environmental, social and governance impacts on the organisation and areas where these impacts occur (aspect boundaries).

High

Materiality Matrix

Economic Performance

Service Excellence Influence on Stakeholder Assessment & Decisions

Occupational Health & Safety Employment Practices

Corporate Governance & Compliance

Energy & Emissions Procurement Practices Supplier Environmental Assessment

Local Communities

Market Presence Water Management

Low

Material, Effluents & Waste Management

Human Rights

Significance of Economic, Environmental & Social Impacts

Low

Economic aspects

Environmental aspects

High

Social aspects

Table of Analysis Economic

Environment

Social

Material aspects

Material aspects

Material aspects

Economic Performance

Energy & Emissions

Corporate Governance & Compliance

Service Excellence

Water Management

Occupational Health & Safety

Procurement Practices

Supplier Environmental Assessment

Employment Practices

Market Presence

Material, Effluents & Waste Management

Human Rights Local Communities

Aspect Boundary and Impact

Aspect Boundary and Impact

Aspect Boundary and Impact

Our goal is to deliver sustainable returns to our shareholders, create meaningful work for our employees and contribute to the economic development of communities where we operate.

As a responsible corporate citizen, we aim to minimise negative impacts on the environment.

Corporate governance and compliance are essential to the sustainability of the Company’s business and performance.

These aspects apply to all of the Group’s operations. Energy & Emissions is of particular importance to the entire Data Centre Division, where significant amounts of energy are consumed. Fuel consumption is also a material aspect for all transport contractors in the Logistics Division.

Safety for our staff and contractors working onsite is of utmost importance. Employment practices & human rights are critical in ensuring that we have an engaged and productive workforce.

Service excellence defines our position in the market and is critical to our customers. These aspects apply to all of the Group’s operations. Outside of the Group, service excellence and procurement practices are material to all our contractors.

Our community development programmes contribute positively to the communities where we operate. These aspects apply to all our operations.

Note: The geographical locations of our operating network are listed in the “Keppel T&T Network” section of the Annual Report.

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Sustainability Report

Service Excellence Service Excellence Performance in 2016

Targets for 2017

Over 85% in overall customer satisfaction at Keppel Logistics Singapore, Foshan and Foshan Sanshui Port.

Maintain at least 85% in overall customer satisfaction in the Logistics Division.

Keppel DC Singapore 2 & 3 attained ISO 50001:2011 Energy Management Systems.

To continue our due diligence on third-party associates for compliance with the Keppel Code of Conduct.

Keppel Logistics Singapore attained the Good Distribution Practice (GDP) and Manufacturer license for Therapeutic Products (Secondary Assembly). Thorough review of third-party engagements was conducted across the Group to ensure strict adherence to our compliance requirements.

Logistics Division

Keppel Logistics is committed to provide quality services to its customers by leveraging innovative solutions and technologies. Our Third-party Logistics facilities are equipped with leading industry technologies such as Warehouse Management System (WMS), Transport Management System (TMS), Electronic Data Interchange (EDI) and Global Positioning System (GPS) to optimise work processes, as well as enhance data accuracy and goods security. In 2016, Keppel Logistics introduced a mobile application portal to streamline the inventory management process at customers’ stores. Inventory and order data approved by the respective storesin-charge are sent to the WMS via the mobile application portal to generate replenishment orders. This has improved the efficiency of work processes and data accuracy. In addition, our carbon footprint is reduced as conventional paperwork is replaced by technology. The Electronic Proof of Delivery (ePOD) system was launched to enable our customer service team and customers to view real-time status updates on the delivery of goods. The portal facilitated faster turnaround time of information delivery, minimised the need for communication among delivery teams, customer service teams and customers as well as shortened the turnaround time for submission of delivery documents. To improve accuracy and efficiency in stock-taking, the Division launched Radio Frequency scanning in its operating units in 2016. The Division also embarked on a major upgrade of the WMS

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and the financial system, with a new procurement system to streamline the finance and procurement processes. In 2016, Keppel Logistics obtained the re-certification of ISO 9001, ISO 14001 and OHSAS 18001 for all sites in Singapore. Keppel Logistics also obtained the Good Distribution Practice (GDP) certification and with the expanding pharmaceutical customer base, the Manufacturer Licence for Therapeutic Products (Secondary Assembly). In recognition of its effort, Keppel Logistics received the Singapore Domestic Logistics Service Provider of the Year award from Frost & Sullivan. In the Port Logistics business, Foshan Sanshui Port continued to leverage automation in the pursuit of production efficiency and customer satisfaction. Container yard productivity and capacity were boosted with the deployment of its new Rail Mounted Gantry crane in July 2016. In addition, one automatic container spreader was installed for the quay crane to speed up operations. The port also implemented an intelligent gate system which enhanced security, safety and smoother traffic flow. Since 2015, Foshan Sanshui Port has been conferred the “Grade A Cargo Area of Customs Supervision” title in recognition of its high level of compliance and effective management of operations. To minimise impact of natural disasters on business operations, Keppel Logistics Foshan launched its Storm Emergency Response Plan to improve disaster response and preparedness.

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

The Company also worked closely with its customers and business partners to promote business resilience and strategic agility. Freight forwarding enterprises were invited to a business workshop in April 2016 to discuss the economic climate and strategies to react to the possible opportunities and threats in 2016.

Data Centre Division

Keppel Data Centres has a diverse portfolio of Tier III or equivalent data centres across Asia Pacific and Europe. These data centres are equipped with highly secure and energy-efficient systems as well as fully redundant system designs to meet the rigorous demands from enterprise customers. Keppel Data Centres continues to build on its strong track record in operational excellence through the operation of high availability data centres. As testament to high service standards, a colocation customer renewal rate of over 90% and zero security breaches were achieved in 2016. During the year, Keppel Data Centres collaborated with Epsilon, a privatelyowned global communications service provider, to provide local access networks, IP Transit services and global connectivity in the Singapore data centres. Similarly, Keppel Data Centres partnered with Quann, a Managed Security Service Provider under Certis Cisco, to provide end-to-end enterprise cyber security solutions.

In 2016, Keppel DC Singapore 2 and Keppel DC Singapore 3 (KDC SGP 3)attained ISO 50001:2011 Energy Management System certification, while KDC SGP 3 obtained the ISO/IEC 27001:2013 Information Security Management System certification. All operational data centres in Singapore have now achieved a consistent set of standards certified by international organisations.

Service Satisfaction Surveys

As an ISO-certified Company since 1993, customer satisfaction and feedback form an integral part of Keppel Logistics’ customer relationship management. The results and feedback from customers are critical to continuous improvements in productivity and service quality. Continual engagement with key customers is maintained through account management and regular service meetings. Keppel Logistics Singapore measures customer satisfaction through the Annual Customer Survey. This year, our customer satisfaction index improved with 94% of respondents rating our services as “good” or better. Through the feedback gathered, areas for improvements were identified in our maintenance support and distribution service. In response to the feedback, manpower was reorganised to better serve our customers’ needs.

In China, Keppel Logistics Foshan (KLF) rolled out Annual Customer Satisfaction Surveys in Foshan, Sanshui, Shenzhen and Hong Kong. The survey results were positive with a consistently high satisfaction score of above 90% since 2015. In general, customers were satisfied with KLF’s integrated logistics services and appreciated its high customer service standards. In Foshan Sanshui Port, customer feedback was gathered on areas comprising safety, integrity and service offerings. A score of 92 out of 100 was achieved. Keppel Data Centres maintained a high score at above four out of five in its Annual Customer Survey. Quarterly business reviews were conducted for key customers to gather their feedback and review performance.

The Keppel Supplier’s Code of Conduct aims to integrate Keppel’s sustainability principles across our supply chain and positively influence the environmental, social and governance performance of our suppliers.

Committed to operation efficiency and customer satisfaction, Keppel Logistics continues to leverage technology to streamline inventory management processes.

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Sustainability Report

Service Excellence Management Systems Certification

Year

Keppel Logistics ISO 9001 – Quality Management System (QMS)

Since 1993

ISO 14001 – Environmental Management System

Since 2002

OHSAS 18001 – Occupational Health and Safety Management System

Since 2002

Workplace Safety and Health Council – bizSAFE Star

Since 2009

Workplace Safety and Health Council – bizSAFE Partner

Since 2010 to 2012, 2016

ISO 13485 – Quality Management System for Medical Devices

Since 2009

GDPMDS – Good Distribution Practice for Medical Devices in Singapore

Since 2009

Secure Trade Partnership for robust security measures in trading operations (STP)

Since 2008

Trade Facilitation & Integrated Risk-based System (TradeFIRST) – Enhanced Band

Since 2011

SS 590: HACCP–based Food Safety Management System

Since 2011

Health Sciences Authority – Good Distribution Practice Certificate (GDP)

Since 2016

Health Sciences Authority – Manufacturer Licence for Therapeutic Products (Secondary Assembly)

Since 2016

Keppel Data Centres SS 564 Part -1:2013 – Green Data Centres – Energy and Environmental Management System (Keppel DC Singapore 1,2,3)

Since 2011/2014/2015

TIA 942 – Tier III Telecommunication Infrastructure Standard (Keppel DC Singapore 1,2,3)

Since 2010/2013/2015

SS 507:2008 – Business Continuity/Disaster Recovery – Information and Communications Technology Disaster Recovery Services (Keppel DC Singapore 1,2,3)

Since 2009/2011/2015

Monetary Authority of Singapore – Threat and Vulnerability Risk Assessment (TVRA) (Keppel DC Singapore 1)

Since 2012

SS 577:2012 Water Efficiency Management System (WEMS) (Keppel DC Singapore 1,2)

Since 2015/2016

ISO 9001:2008 – Quality Management System (QMS) (Keppel DC Singapore 1,2,3)

Since 2015

ISO/IEC 27001:2013 – Information Security Management System (ISMS) (Keppel DC Singapore 1,2,3)

Since 2015/2016

Workplace Safety and Health Council – bizSAFE level 3 (Keppel DC Singapore 1,2,3)

Since 2013/2014

ISO 50001:2011 Energy Management System (Keppel DC Singapore 1,2,3)

Since 2015/2016

Association of Banks in Singapore - Outsourced Service Provider’s Audit Report (OSPAR) (Keppel DC Singapore 1,2)

Since 2016

Keppel Logistics Foshan ISO 9001– Quality Management System (QMS)

Since 2000

Guangzhou Customs – “A Class River Port” certification (Foshan Sanshui Port)

Since 2015

Keppel Logistics Hong Kong ISO 9001 – Quality Management System (QMS)

Since 2000

ITKL Vietnam Food Safety Conditions (VSIP 1 DC/Ha Binh Phuong)

Since 2015/2014

SMETA (Sedex Members Ethical Trade Audit ) 4-Pillars Certification

Since 2014

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Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

Supplier Management

As a third-party logistics provider, Keppel Logistics engages contractors for transportation services and warehouse operations. Keppel Data Centres engages external facility technicians for equipment maintenance regularly. The majority of suppliers and contractors engaged are local companies. In the process of sourcing, suppliers are screened based on a stringent set of criteria, including track record, reputation, service quality as well as other environmental and safety requirements. Contractors’ performance is re-evaluated annually and we take necessary action to ensure satisfactory service quality and safety standards. A contractor at Keppel DC Singapore 4 construction site was issued a Stop Work Order by the Ministry of Manpower following a site inspection in 2016. The order was lifted shortly after, when the contractor took additional measures to enhance workplace safety. Apart from this, no significant case of non-compliance with law and regulations arose from our contractors in 2016. During the year, we conducted a thorough review of our third-party engagements to ensure that suppliers or contractors meet our regulatory compliance requirements. The Keppel Supplier Code of Conduct was introduced in end-2016. It aims to integrate

Keppel’s sustainability principles across our supply chain, and positively influence the environmental, social and governance performance of our suppliers. Suppliers of the Keppel Group companies are expected to comply with the Code, which covers requirements on business conduct, labour practices, safety & health, and environmental management. Moving forward, we plan to strengthen all working relationships between Keppel T&T and its contractors.

During the year, emphasis has been placed on raising regulatory compliance awareness through a comprehensive training programme for our staff.

Regulatory Compliance and Fair Operating Practices

We comply with the laws and regulations of the countries where we operate. Non-compliance, if any, is tracked regularly under the Risk Management Framework. In 2016, the Group did not identify any significant incidents of non-compliance with laws, regulations, and voluntary codes pertaining to the provision, use and safety of our products and services. The Keppel Group Code of Conduct details the rules for Employee Conduct and Business Conduct. The Employee Code of Conduct addresses standards of acceptable and unacceptable behaviour and personal decorum, as well as Keppel’s workplace harassment policies. The Business Code of Conduct addresses standards of ethical business behaviour including anti-corruption, offering and receiving of gifts, hospitality and

promotional expenditures, dealings with Third Party Associates as well as conflicts of interest. All employees are briefed on the Keppel Code of Conduct and policies during their orientation, and are required to declare existing conflicts of interests on an annual basis. During the year, emphasis has been placed on raising regulatory compliance awareness through a comprehensive training programme for our staff. An e-module training on Keppel’s Code of Conduct, comprising Whistle-Blower Protection, Anti-Bribery, Conflicts of Interest and Insider Trading policies was conducted. All executives and Senior Management took part in the training.

All our operational data centres in Singapore have achieved a consistent set of standards certified by international organisations.

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Sustainability Report

Environmental Performance Paper Consumption

17%

Reduction of paper consumption in 2016. Energy Saved

5,693GJ

Energy saved from initiatives in 2016. New Green Building Certification

2

Number of new green building certifications in 2016.

Environmental Sustainability Framework

Keppel T&T believes that good environmental stewardship is aligned with our stakeholders’ interests. Our environmental management is guided by the Environment Sustainability Framework which provides a holistic approach to environmental conservation.

Energy Consumption and Emissions Indirect Energy Consumption

Grid-supplied electricity is the main source of indirect energy used in our operations. In 2016, the Group’s total electricity consumption was 291,793GJ, 12% higher than that of 2015. This was due mainly to the ramp-up in operations for Keppel DC Singapore 3. Managing energy efficiency in our data centres is important as they account for up to 75% of the Group’s total electricity consumption. Data centre operations have energy intensive processes, such as maintaining the cooling environment for servers. We strive to ensure all the facilities owned or managed by us fulfill both our internal control requirements

and our clients’ requirements. Research initiatives were rolled out to improve energy efficiency while ensuring performance excellence. In 2016, Keppel Data Centres, together with the Info-communications Media Development Authority of Singapore (IMDA), are jointly working to develop and deploy the world’s first Tropical Data Centre. The proof-of-concept tested the viability of operating data centres at ambient temperatures of up to 38°C and humidity up to or exceeding 90%. Its successful deployment is expected to reduce energy consumption of data centres by up to 40%. To reduce our energy consumption, our Data Centres make use of Diesel Rotary Uninterruptible Power Supply (DRUPS) to guarantee the quality and continuity of power supply. DRUPS are significantly more compact and energy efficient compared to the conventional static Uninterruptible Power Supply (UPS). T5 fluorescent lamps and motion sensors were also installed to provide efficient lighting, together with chilled water cooling systems for air conditioning. In 2016, these energy saving initiatives helped reduce energy consumption by 5,633GJ.

Service Excellence Performance in 2016

Targets for 2017

Acquisition of KDC Frankfurt 1, a LEED certification data centre.

Achieve 16% reduction of indirect carbon emission intensity by 2020 compared to 2011.

Switched to LED lighting for better energy efficiency at Keppel Logistics Singapore.

Attain BCA Green Mark for 100% of new buildings in Singapore.

Deployed more DRUPS and chilled water cooling systems at the data centres owned/managed in Singapore.

Framework on Environmental Sustainability

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Build Green

Operate Green

Include green features in building design to maximise energy efficiency

Deploy energy-efficient technologies and equipment in our operations

Measure Green

Educate Green

Monitor and set targets for key performance indicators

Promote “Reduce, Reuse, Recycle” at work and at home

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

In line with our energy conservation efforts, all data centres owned or managed by the Group have been certified with SS 564:2013 Green Data Centres – Energy and Environmental Management System, as well as the ISO 50001:2011 Energy Management System. Energy efficiency is also important for Keppel Logistics. In Singapore, we continued to replace the Metal Halide lamps with the more efficient T5 fluorescent lamps. Together with the conversion to LED lights within the Singapore offices, we expect energy consumption to be reduced by up to 59GJ. Likewise in Malaysia, we are replacing the existing lighting with LED lighting as part of our energy efficiency efforts.

Electricity Consumption (GJ)

245,000 210,000 175,000 140,000 105,000 70,000 35,000 0

Logistics Data Centre Total

2012

2013

2014

2015

2016

69,294 102,213 171,507

68,155 127,248 195,403

71,745 144,880 216,624

73,592 186,316 259,908

73,450 218,344 291,793

2012

2013

2014

2015

2016

529 43,761

814 42,369

967 68,876

710 63,635

806 60,128

Direct Energy Consumption (GJ)

The Group tracks its diesel and Liqueified Petroleum Gas (LPG) usage to measure its direct energy consumption. In the Logistics Division, diesel fuels the equipment and transportation fleet. In the Data Centre Division, diesel is used for load bank testing. LPG is used to power forklifts in our Malaysia logistics unit. In 2016, the Group’s total direct energy consumption was 60,934GJ, 5% lower than that of 2015. This was largely attributed to the reduction in fleet size and drop in transportation volume at Keppel Logistics Singapore and IndoTrans Keppel Logistics Vietnam, leading to reduction in diesel consumption. In the Data Centre Division, there was an increase in diesel consumption due to operational requirements at Keppel DC Singapore 3.

Direct Energy Consumption (GJ)

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

LPG Diesel

Keppel T&T recognises the importance of controlling direct energy consumption in minimising our environmental impacts. Keppel Logistics Singapore conducts regular checks and maintenance on vehicles to ensure they comply with environmental regulations, and monitors the consumption of diesel closely. The vehicles are equipped

All data centres owned or managed by the Group have been certified with SS 564:2013 Green Data Centres – Energy and Environmental Management System, as well as the ISO 50001:2011 Energy Management System.

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Sustainability Report

Environmental Performance

Direct emissions from the consumption of diesel, LPG and chiller leakage in our business operations have decreased by 5%.

with the Transport Management System (TMS) software to optimise routes and reduce fuel wastage. Measures such as planning routes with our TMS software were taken to align the vehicles’ practices with our internal standards. Under the new Supplier Code of Conduct, suppliers are expected to comply with all applicable national laws and regulations, as well as requirements for environmental licenses and permits. Suppliers shall have, or work towards having, an effective environmental management system in place, through which they are able to manage and monitor: energy and water efficiency; responsible waste management and recycling; mitigation of greenhouse gas emissions; and pollution prevention. In 2016, no environmental incident was reported by our contractors. Direct energy consumption data for outsourced transportation was excluded from this Report due to difficulties in data monitoring and collection.

Greenhouse Gases (GHG) Emission

GHG emission is a key environmental concern for our business, given the considerable energy requirement for both logistics and data centre businesses. Our emissions figures are computed based on internationally accepted conversion factors4 and classified using the GHG Protocol5. Scope 1 emissions, comprising direct emissions from the consumption of

diesel, LPG and chiller leakage in our business operations, have decreased by 5%, mainly due to the reduction in fleet size and transportation volume in the Logistics Division. Leakage of ozone-depleting substances is estimated at 103.5tCO2 assuming that 3% of the total refrigerant holding capacity escapes into the atmosphere, based on DEFRA standards. Our chiller equipment comprises 29 chillers located in Singapore: 24 units use HCFC-123, three units use HFC-134a, and the remaining two units use HCFC-22 (R22), all of which are approved for use until 2030 under the Montreal Protocol. Scope 2 emissions, which are indirect emissions from electricity consumption, increased by 12% largely due to the ramp-up in occupancy for Keppel DC Singapore 3. Our efforts to reduce Scope 2 emissions have been elaborated in the earlier section on indirect energy consumption. Scope 3 emissions decreased by 10% to 947tCO2, owing to a drop in chilled water cooling system usage. Paper and stretch wrap usage also dropped following reduced printing and wrapping requirements from customers, as well as the improvement of operation processes to reduce paper usage. Other than the absolute emission figures, to better monitor the carbon footprint as our businesses expand, carbon emission intensity is tracked in terms of indirect

Classification of GHG emissions from our operations: Scope 1 Direct Emission

Scope 2 Indirect Emission

Scope 3 Other Indirect Emission

Diesel (for running owned vehicles, machinery and equipment)

Electricity

Materials Usage (paper & stretch wrap)

LPG (for running forklifts)

Electricity used by suppliers (chilled water cooling system)

Chiller Leakage

Sources for conversion factors: Energy Market Authority (EMA) 2015 for Singapore, DEFRA 2015 for China, International Energy Agency (IEA) 2015 for other countries. 5 The GHG emission scopes 1, 2 and 3 are defined by the GHG Protocol. Scope 1 refers to emission from company owned and operated facilities, machines, vehicles, etc. Scope 2 refers to emission from sources external to the company, but provides the company with a service such as power plants and other utilities. Scope 3 refers to emission from daily activity that performs a supporting role to the company such as employee commuting, business travel and the purchase of office supplies. 4

56

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

carbon emission per $1 million revenue. Direct carbon emissions (or Scope 1 emissions) were excluded in our carbon intensity calculations as they were dependent on the level of transport outsourcing and therefore do not reflect our emission control efforts. The revenue and emissions from Keppel DC Singapore 1 and 2 were excluded as they have been divested to Keppel DC REIT in 2015. The Group’s overall carbon emission intensity increased from 79.3tCO2 to 92.0tCO2 in 2016 due to the ramp-up in occupancy of Keppel DC Singapore 3. However, it is 47% lower when compared to our baseline in 2011 – well within our target of 16% reduction.

Carbon Emission (tCO2)

42,000 36,000 30,000 24,000 18,000 12,000 6,000 0

Keppel T&T continuously monitors and explores ways to minimise our carbon emission. The performance data each year is analysed in the Annual Carbon Management Plan.

Water Consumption

Water usage is regularly monitored in Keppel T&T. Besides washing and other operational needs, water is also used in both data centre and logistics operations to run the chilled water cooling systems. These systems provide superior energy efficiency relative to traditional chiller systems, helping to keep our electricity usage low. For Keppel Logistics, the water consumption for the chilled water cooling system is tracked regularly and charged to the system provider. Total water consumption of the Group increased by 9% to 522,414m3 compared

Scope 1 Scope 2 Scope 3

2012

2013

2014

2015

2016

3,325

3,235

5,182

4,815

4,564

25,575

27,930

28,410

32,873

36,729

425

405

870

1,054

947

Water Consumption by Division (m3)

360,000 300,000 240,000 180,000 120,000 60,000 0

Logistics Data Centre Total

2012

2013

2014

2015

2016

214,628 109,437 324,066

255,787 107,355 363,142

275,064 131,241 406,305

301,417 179,002 480,419

310,904 211,510 522,414

At Keppel Logistics, Metal Halide lamps have been replaced with the more efficient T5 fluorescent lamps as part of our energy efficiency efforts.

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Sustainability Report

Environmental Performance to 2015. This was due to the ramp up of operations in KDC SGP 3 and a water leakage problem in our logistics facilities due to damaged underground water pipes. The leakage problem was rectified. At Keppel Logistics Foshan, 30,235m3 of river water was used at the ports to clean barges and wash containers. For Keppel Data Centres, over 90% of total water consumption at KDC SGP 3 comes from NEWater, which is reclaimed from used water sources. In recognition of our efforts, Keppel DC Singapore 1 and 2 were awarded the Water Efficient Building award from PUB in 2011 and 2013 respectively. The two data centres were certified SS577: Water Efficiency Management System in 2015 and 2016 respectively with the implementation of a Water Efficiency Policy and procedures to manage water usage.

skylight for the Very Narrow Aisle (VNA) warehouse and solar water heating in its toilets. Our newest data centre facility in Singapore, Keppel DC Singapore 4, is being designed and built with a target of attaining the BCA Green Mark Platinum certification. Energy efficiency is also an important consideration when making brownfield acquisitions. In November 2016, Keppel Data Centres and Alpha DC Fund acquired Keppel DC Frankfurt 1, a LEED Platinum accredited data centre in Germany. The building was equipped with a green wall across the site and a rainwater reclamation system to ensure energy efficiency and sustainability. As the data centre continues to fill up in capacity, we will continually seek methods to boost energy efficiency in the fit-out of the remaining data halls.

Green Building

Material and Waste

In China, the Tianjin Eco-City Distribution Centre became the first facility in China to receive the 2-Star Green Building Design Label for its energy-efficient features. The facility was designed with green features such as energy-efficient lighting,

In 2016, the paper and stretch wrap consumption decreased by 17% and 14% respectively, largely due to a reduction in printing, labeling and wrapping requests from customers as well as the streamlining of operational

Recognising that building design plays a significant part in driving energy and water use efficiency, Keppel T&T strives to ensure that our facilities are environmentally friendly from the onset.

The key types of waste generated in our operations are paper and stretch wrap. Paper is used for office and labeling purposes, while stretch wrap is used to protect cargo in our logistics operations.

Our newest data centre facility, Keppel DC Singapore 4, was designed and built with a target of attaining the BCA Green Mark Platinum certification.

58

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

processes to reduce paper usage. For instance, Keppel Logistics is shifting from paper pick lists to mobile Radio Frequency (RF) terminals. Keppel T&T does not generate or handle hazardous waste in any of our operations. However, we are committed to ensure that waste is properly disposed of according to local regulations. In Singapore, the waste is weighed by our authorised waste collectors before being sent to incineration plants for energy recovery. Waste disposal in China, Malaysia and Vietnam are likewise conducted by authorised waste collectors and sent to landfills in accordance with local regulations. However, owing to a lack of accurate data for these entities, overseas waste disposal figures were excluded from this Report. The waste data has been restated to exclude Keppel Data Centres due to the waste collection being outsourced to a third party provider and accurate data being unavailable. Waste generated by the data centres comes mainly from office operations and the volume is not significant. In 2016, the total waste sent for incineration was 492.7 tonnes and the recycling rate dropped to 14%. Going forward, Keppel T&T will continue to explore new recycling initiatives.

Material Consumption (tonnes)

180 150 120 90 60 30 0

Paper (tonnes) Stretch Wrap (tonnes)

2012

2013

2014

2015

2016

40.3 131.6

28.5 130.3

41.9 150.0

50.5 153.5

42.0 131.8

Waste Incinerated and Recycled in Singapore (tonnes) tonnes

%

600

18

500

17

400

16

300

15

200

14

100

13

0

12

Incinerated Waste Waste Recycled Recycling Rate

2012

2013

2014

2015

2016

423 69 14%

406 58 13%

424 65 13%

455 96 17%

493 83 14%

During the year, Keppel Data Centres, together with the Info-communications Media Development Authority of Singapore participated in a proof-of-concept trial to reduce energy consumption in data centres.

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Sustainability Report

Labour Practices and Human Rights Local Hires

61%

Proportion of key management hired from local communities. Training

32hrs

Average training hours per employee across the Group.

Commitments in 2016

Actions in 2016

Targets for 2017

Nurture, develop and empower our human capital

Enhanced our talent management programmes with the introduction of a new Mentoring Framework

Continue to nurture, develop and empower our human capital

Foster a cohesive identity within the Group and provide open feedback channels

Conducted Focus Group sessions for direct feedback and rolled out an Employee Engagement Pulse Survey

Continue to strengthen employee communication

Enhance our staff’s overall wellness

Organised programmes to promote work-life balance and improve staff wellness

Achieve a higher score in Engagement Surveys

Employee Engagement

79%

Score obtained from the Employee Engagement Survey.

Our People

The Group maintains its philosophy of ‘Empowering Lives’ by continuing to invest in our people, focusing on nurturing and harnessing their fullest potential. We believe in an open and inclusive environment. To achieve this, we place strong emphasis on engaging our workforce across the Group and providing a conducive environment to enhance their overall well-being.

Employee Profile

Keppel T&T embraces diversity and fosters an inclusive culture for all gender, age and ethnicity. Our diverse workforce of 1,441 employees comprises 12 nationalities with the majority based in Singapore (38%), China (39%) and Vietnam (20%). 46% of the staff employed are permanent staff with the remaining being contract staff. Female employees make up 30% of the total workforce and 38% of employees are of executive level and above. In Singapore, 57% of the workforce is aged between 31 and 50 years old, with 34% and 23% in the 31-40 and 41-50 years age groups respectively. 68% of our overseas employees are aged 40 years and below. 47% of the employees have a service length of below three years while 39% have served between 3 to 10 years. 46% of our employees hold tertiary qualifications and above (Diploma, Bachelor’s or Master’s degree), representing an increase of 1% from 2015. 22% of employees hold technical or trade certificates, GCE O- or A-Levels. The Group practises workforce localisation to leverage local expertise in all our countries of operation. While a majority of our staff are local, key management teams often consist of both local and expatriates

60

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

sent from headquarters. In 2016, 61% of our key management, defined as the top three decision-makers in our business units, were locals. During the year, the Group’s average monthly recruitment rate was 1.9% while the turnover rate was 1.8%.

Re-Engagement of Older Workers

Keppel T&T proactively engages employees who have reached the statutory retirement age of 62 to discuss terms of re-employment, at least six months prior to their retirement. Staff with satisfactory work performance and certified medically fit are offered re-employment based on term contracts. When re-employing employees, we align our practice with the Tripartite Guidelines on Re-employment of Older Employees.

Policies and Practices

Keppel T&T continued to align its employment practices with the fair employment practices recommended by Singapore’s Tripartite Alliance for Fair and Progressive Employment Practices. All new hires are given orientation to the Group’s businesses and briefed on the following key policies upon joining the Company: 1. Code of Conduct 2. Anti-Bribery and Corruption 3. Insider Trading 4. Competition Law Compliance 5. End User Computing 6. Safeguarding Information 7. Public Affairs/Communications/Brand 8. Whistle-Blower Protection 9. Personal Data Protection 10. Telemarketing

Singapore’s Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) Key Principles

Employee Profile by Region and Gender

Recruit and select employees on the basis of merit (such as skills, experience or ability to perform the job), regardless of age, race, gender, religion, marital status and family responsibilities, or disability.

500

700 600

400 300 200 100

Treat employees fairly and with respect and put in place progressive human resource management systems. Provide employees with equal opportunities to be considered for training and development based on their strengths and needs, to help them achieve their full potential. Reward employees fairly based on their ability, performance, contribution and experience. Comply with the labour laws and abide by the Tripartite Guidelines on Fair Employment Practices.

0

Female Male Total

Total

Singapore

Malaysia

China

Australia

Vietnam

154

12

174

5

89

434

389

12

385

24

197

1,007

543

24

559

29

286

1,441

Age and Gender Profile

500 400 300 200 100 0

As part of the Group’s ongoing efforts to strengthen regulatory compliance, the Group’s Annual Training and Declaration policies were rolled out to executive staff. The exercise comprised of an e-module training covering our key policies, followed by an online assessment.

Provision of Benefits

The Group complies with all the statutory regulations relating to employment terms and benefits to offer employees competitive and sustainable compensation. Benefits for employees vary slightly across different geographies. All employees across the Group are provided with: • Group personal accident and group term life insurance • Outpatient and inpatient hospital and surgical healthcare coverage • Contribution to local pension funds (Central Provident Fund in Singapore, Employees Provident Fund in Malaysia, Social Security in China, Social Insurance Fund in Vietnam and Superannuation Fund in Australia)

Female Male Total

<20

20-29

30-39

40-49

50-59

60 & Above

Total

0 1 1

152 243 395

149 367 516

86 250 336

40 127 167

7 19 26

434 1,007 1,441

Gender Diversity by Seniority Profile

Senior Management Middle Management Executive Supervisory & Confidential Non-Executive, Non-Supervisory

Male

Female

5 62.5%

3 37.5%

85 76.5%

26 23.5%

179 57.0%

133 43.0%

179 69.5%

78 30.5%

559 74.0%

194 26.0%

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Sustainability Report

Labour Practices and Human Rights In Singapore, the Group has concluded the harmonisation of its flexible benefits scheme with the Keppel Group for local employees (excluding employees under Collective Agreement). The new benefits scheme aims to: (a) Harmonise benefits across the Keppel Group (b) Provide employees with flexible benefits to better meet their changing and diverse needs (c) Let employees take ownership of their own choices and (d) Focus on preventive care and provide incentives for employees to stay healthy

Service Length Profile

350 300 250 200 150 100 50 0

In line with the Government’s direction for portable medical coverage, this programme provides a feature which encourages our employees to take up integrated shield plans with corresponding upgrades according to each individual’s needs and budget. This new scheme will be implemented from 2017 onwards.

Female Male Total

Keppel T&T is guided by the Singapore’s Industrial Relations Act which allows representation of bargainable staff by trade unions under collective bargaining. We work closely with the Singapore

1-2 Yrs

3-5 Yrs

68 180 248

123 306 429

133 238 371

6-10 Yrs 11-15 Yrs

45 148 193

27 45 72

16 Yrs & Above

Total

38 90 128

434 1,007 1,441

Key Management Distribution by Country Local Hires & Foreigners

Employees are provided with other benefits including childcare leave, maternity leave, paternity leave, marriage leave and compassionate leave. In 2016, a total of 66 employees took parental leave, of which 48% were male and 52% were female. The return rate for staff who took parental leave was 100%, and the retention rate 12 months after taking parental leave was 92%.

Labour Management Relations

<1 Yr

Local

Foreigner

Singapore

17 95%

Malaysia

2 67%

1 33%

China

7 33%

14 67%

Australia

3 50%

3 50%

Vietnam

2 67%

1 33%

Industrial and Services Employee’s Union (SISEU) and respect employees’ rights to be members of the union. About 44% of Keppel T&T’s bargainable employees in Singapore are union members. Under the

1

5%

collective bargaining agreement signed with SISEU, the notice period for negotiations for a new collective agreement may commence not earlier than three months prior to the expiry of the agreement.

Education Profile

350 300 250 200 150 100 50 0

Female Male

62

Primary

Secondary

Technical/ Trade Certificate

11 66

69 317

32 132

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

GCE ‘N’/ ‘O’ Level

GCE ‘A’ Level

Diploma

Bachelor’s Degree

Master’s Degree

37 102

4 8

92 169

181 186

8 27

are benchmarked against market data annually in order to remain competitive in attracting and retaining the right talent.

New Hires in 2016

New hires As a % of total employees Total new hires New hires who are women New hires who are below 30 years old New hires who are between 30 to 50 years old New hires who are over 50 years old

Singapore

Malaysia

China

Australia

Vietnam

51

8

103

5

164

9% 3%

33% 4%

18% 5%

17% 7%

57% 15%

4%

17%

8%

4%

31%

4%

16%

9%

10%

25%

1%

0%

1%

3%

1%

To foster a harmonious relationship between the union and management, we maintain a quarterly dialogue session to exchange constructive ideas and solicit feedback. The management constantly keeps the Union informed of the Company’s performance and business outlook. Union representatives are granted union leave when they attend conferences, meetings and other events organised by the Union. Employees are able to voice any grievances to their supervisors or the Human Resources Department by following the Group’s set guidelines and procedures. The Whistle-blower Protection policy protects employees when reporting any inappropriate conduct, ensuring confidentiality and fairness. In 2016, no incident of discrimination or grievances relating to human rights or labour practices was reported.

Attracting and Nurturing Talent Attracting New Talent

The Group attracts new talent through various avenues and programmes. Our Management Trainee Programme is a 24-month programme aimed at developing and building the career foundations of talents. It includes corporate and operations attachments as well as overseas attachments.The Group actively participates in career fairs organised by various organisations and education institutes where we are able to share the job opportunities in our Logistics and Data Centre Divisions.

Fair Remuneration and Performance Management

All our employees are employed under clear terms and conditions detailed in an employment contract agreed between and signed off by both parties. Our employees’ compensation packages

As Keppel T&T advocates a performancebased culture based on meritocracy and individual potential, every employee undergoes a structured annual performance review where the immediate supervisor will discuss with the employee the performance targets for the year. At the executive and managerial level, we established balanced scorecards or work targets set for the year focusing on four key areas: Financial, Process, Customers/ Stakeholders and People. In 2016, a new set of targets on “Group Collaboration & Synergies” was added to the scorecard. For non-executive employees, an additional round of half-yearly performance review was designed to help them progressively meet their expected targets by the end of the year. This enables the Group to identify underperforming employees and put in place further coaching or supervision.

Successsion Planning and Talent Management

Keppel T&T seeks to attract and retain talent. With a strong focus on identifying, developing and retaining talent, Succession Planning and Talent Management are therefore critical to the Group in building a strong talent pipeline for future leadership. Talent review meetings are held twice a year each by the top management and the Board Nominating Committee to review the succession pipeline and identify high potential employees to groom for leadership.

The Keppel Young Leaders’ Dialogue provides talent from across the Group with valuable insights and learning opportunities.

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Sustainability Report

Labour Practices and Human Rights High potential employees and young talents are assessed through the Group’s Leadership Potential Assessment Tool to identify potential successors for top, senior and middle management positions. The assessments are calibrated by different levels of management over several meetings to ensure a robust assessment is made of each succession incumbent. Young talents are put on the radar of our senior and top management to ensure accelerated development to prepare them for senior management positions. A development plan is mapped out for every succession incumbent which takes into account the individual’s strengths and achievements, development areas and interventions.

Average Monthly Employee Turnover Rate by Country (%)

6.0 5.0 4.0 3.0 2.0 1.0 0

2014 2015 2016

Singapore

Malaysia

China

Australia

Vietnam

1.7 1.7 1.7

4.2 2.7 3.4

0.9 1.3 1.0

1.6 2.0 1.4

3.0 5.8 3.4

Mentoring Framework

A new Mentoring Framework was formalised this year to help young talents navigate organisational culture in their careers as well as enable cross-functional knowledge sharing. Mentors and mentees were carefully paired based on competencies, personal leadership qualities as well as common interests. Quarterly meet-ups are encouraged for mentors to keep track of the progress of mentees and provide guidance.

Learning & Development

Keppel T&T is committed to develop our people to be competent and relevant in their jobs. The Group provides opportunities to our employees to continuously upgrade themselves through internal and external courses and seminars. In 2016, $460,656 was invested into training and 7,463 training places were provided for employees, accumulating a total of 45,873 training hours. The Group believes in lifelong learning by encouraging employees to pursue higher qualifications. Up to seven days of examination leave per year are available to employees under the Training Support Schemes as well as those taking private courses related to their field of work.

Employee Welfare Health and Safety

Safety is one of Keppel’s core values. We strive to achieve accident-free operations through a continuous and comprehensive safety management approach and strong safety culture.

Safety Management

The Board Safety Committee at Keppel T&T maintains oversight of safety issues while an Environment, Health and Safety Committee in each of our business units ensures effective implementation of

64

Employee Turnover by Age

500 400 300 200 100 0

Below 30 years old

Between 30 to 50 years old

Over 50 years old

Total Turnover

12 123

31 176

19 17

62 316

Involuntary Voluntary

our safety policies and practices, raises health and safety awareness and keeps track of regulatory updates. We closely track cases of occupational disease, lost time due to injuries, Accident Severity Rate (ASR), Accident Frequency Rate (AFR), near-misses and workplace hazards for all directly employed staff and contractors working on site. Everyone in our premises is encouraged to report hazards to promote a greater sense of safety awareness. The Board and Management of Keppel T&T are updated on the Group’s safety performance on a monthly basis. Audits are regularly conducted across all our facilities including local construction sites to identify risk areas and take pre-emptive action. Meetings are conducted with staff and contractors to keep all parties informed of safety related matters.

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

Employee Turnover by Gender

300 200 100 0

Involuntary Voluntary

Safety Education

Female

Male

11 81

51 235

Keppel T&T believes in regular refreshers and reminders to maintain top-of-mind awareness within our organisation. Health and safety matters are displayed prominently on notice boards and

discussed during the morning briefings before commencement of work. Courses attended by staff include safety orientation, Material Handling Equipment (MHE) training, working at height, risk assessment, racking safety and stack loader training. Furthermore, regular drills and training are conducted to ensure employee readiness in the event of an emergency. These include CERT training, fire evacuation drills, firefighting training, CPR+AED courses, pandemic flu exercises and typhoon emergency drills. We also believe in engaging our vendors and partners in our safety programmes. Contractors working on site are required to comply with our safety requirements before they can commence any high-risk work. In addition, to promote safe driving and racking practices, we have implemented the Keppel T&T Road Safety Standard and Keppel T&T Racking Safety Standard in our Logistics Division. To reinforce the safety culture within the Company, Keppel Logistics organises its annual Environment, Health and Safety (EHS) month in July. During the month, various activities such as exhibitions, talks, quizzes and games are organised to involve all staff to raise awareness on EHS matters.

Safety Performance

Both the ASR and AFR rose in 2016 owing to the occurrence of one reportable accident and one fatal accident during the year, both related to vehicle operations. For the fatal accident, a special investigation team was formed together with Keppel Group’s representatives to understand its root cause. The related work procedures have been reviewed and corrective action has been communicated to all staff to prevent a recurrence. In recognition of its commitment to Workplace Safety and Health and its strong safety culture, Keppel Logistics was presented the SPARKS Award at the National Trades Union Congress (NTUC) U SAFE Awards, and the Singapore Road Safety Award under the Heavy Goods Vehicle Fleet category from Singapore Road Safety Council in 2016. Additionally, Keppel Logistics has also achieved the bizSAFE Partner status by the Workplace Safety and Health Council, in recognition of its efforts in promoting the bizSAFE programme with the industry and its networks of contractors and suppliers. In the annual Keppel Group Safety Convention, Keppel T&T won one

Average Training Hours per Employee by Country

90 75 60 45 30 15 0

2014 2015 2016

Singapore

Malaysia

China

Australia

Vietnam

53 52 66

9 9 1

13 7 14

0 4 8

8 28 7

Average Training Hours by Gender and Seniority

90 75 60 45 30 15 0

Female Male

Senior Management

Middle Management

Executive

90 43

47 41

21 20

Gold Award, one Silver Award and three Bronze Awards for its innovation projects.

Employee Health & Wellness

At Keppel T&T, we believe that our employees’s health is directly linked to their overall well being and productivity. Throughout the year, the Group organised and encouraged our employees to engage in activities aimed at improving physical and mental health. This included lunch time talks on health topics, the distribution of healthy snacks, fitness classes and periodical health screening provided to employees in Singapore. This year, as part of the workplace health promotion programme, Keppel T&T participated in the National Steps Challenge™ Season 2 (Corporate Challenge). The challenge involved 120 of our employees participating and

Supervisory Non-Executive, and Confidential Non-Supervisory

15 12

36 43

competing against organisations nation-wide to achieve the highest average step count.

Work-Life Harmony

The Group values work-life harmony and believes that a work-life friendly place is beneficial for both the Group and the employees. On a case-by-case basis, the Company is able to grant flexible working arrangements to eligible employees. In addition, the Group has a Work-Life Harmony programme, which includes activities that promote family bonding, such as Family Day and Eat with Your Family Day. The Group provides complimentary access to popular leisure destinations such as the Singapore Zoo, River Safari and Sentosa for employees and their families to enjoy together.

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Sustainability Report

Labour Practices and Human Rights Team Building

In Keppel T&T, we believe in the power of collective strength. Throughout the year, the Group organised many events that aimed to strengthen the bonds among its employees. This included quarterly team-building sessions for staff from different departments and business units. The activities were specially planned and designed to cultivate camaraderie and promote team bonding. Other activities included the Keppel T&T Annual Dinner and Dance and the Racial Harmony Day.

Employee Engagement Communication

The Group practices an open door policy where all employees are encouraged to give feedback and share any concerns relating to the work environment. Throughout the year, the communication platforms were strengthened through various events organised for employees to encourage two-way communication. The events include the Townhall Meeting, staff dialogue session, CEO breakfast and networking sessions, as well as communication sessions to inform all employees of Group-wide changes.

Employee Engagement Pulse Survey As a follow up to last year’s Employee Engagement Survey (EES), the Group

Safety Performance man-­days lost per million man-­hours 900

3.0

750

2.5

600

2.0

450

1.5

300

1.0

150

0.5

0

0

Accident Severity Rate (ASR) Accident Frequency Rate (AFR)

conducted the Keppel Global Employee Engagement Pulse Survey in Singapore, Malaysia, Vietnam and China. The survey measures employee’s satisfaction and their engagement in working for the organisation. Participation rate for the pulse survey improved from 97% to 99% this year. The Group maintained its overall engagement score at 79%, and 84% of employees surveyed were motivated to contribute to the Group’s success.

The Group recognised the contribution and loyalty of 55 staff with Long Service Award in 2016.

66

incidents per million man-hours

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

2012

2013

2014

2015

2016

16.4 1.4

1.7 0.4

1.1 0.2

0 0

855.7 0.3

Rewards & Recognition

In 2016, 55 staff received the Keppel T&T Long Service Award in recognition of their loyal contributions to the Group. To motivate, reward and recognise overseas employees with outstanding performance, Keppel Logistics extended the Best Employee/Department of the Month award to its entities in Malaysia, Vietnam and Australia.

Nurturing Community Supporting Education

Volunteerism

1,657hrs

Contributed by volunteers across all business units. Donations

$66,917

Donated to charitable causes through Keppel Care Foundation.

Through partnerships with educational institutions, the Group continued to offer students industrial attachment and internship opportunties in 2016. Students under the Group’s internship programme were given practical work experience and operational exposure. They were also guided by assigned mentors, paving the way for potential job opportunities after graduation. In China, Keppel Logistics Foshan has been actively supporting needy students from the Foshan University of Science and Technology through the Company’s bursary scheme since 2013. This year, eight students benefited from the bursaries totalling $19,200. Keppel Logistics was a pioneer participant of SkillsFuture Earn and Learn, a work-study programme designed to provide fresh graduates from polytechnics and the Institute of Technical Education a head start in careers related to their fields of study. The programme allows them to acquire work experience under a structured on-the-job training under a mentor while furthering their studies. In 2016, Keppel Logistics sponsored one student under this scheme.

Reaching Out to the Needy

Keppel T&T recognises the need to do our part to give back to the communities where we operate. This year, the Group organised a series of activities aimed at reaching out to underprivileged youth and senior citizens. These included charity bazaars, food donations and volunteer work at care centres. During Chinese New Year, staff volunteers partnered with Fei Yue Family Service Centre and Keat Hong Zone 7 RC to distribute groceries to 41 needy families registered under ComCare, a social assistance for low-income individuals and families. Volunteers from the Group also celebrated the Mid-Autumn Festival with 30 beneficiaries from Fei Yue Senior Activity Centre.

In Tianjin, China, Keppel Logistics, in partnership with Keppel Land and Keppel Seghers, organised a charity bazaar in the Sino-Singapore Tianjin Eco-City to raise donations for the Xiangyu Autism Aid Association. A total of RMB13,074 was raised.

Promoting Volunteerism

Keppel T&T is a strong advocate of volunteerism. Employees are given two days of volunteerism leave to participate in volunteer events organised by the Group or Keppel Volunteers, a Keppel Group-wide initiative. The Group’s employees were also encouraged to participate in external charity events such as the SGX’s Bull Charge run and the Frost & Sullivan’s Frost the Trail Run which raised money for their respective charitable organisations. In Singapore, employees actively took part in national engagements such as the National Day Parade Marching contingent and the Singapore Armed Forces Rededication Day Ceremony. In 2016, employees across the Group contributed a total of 1,657 hours in volunteer service.

Donation & Fund Raising

Besides volunteering activities, the Group donated to charities and participated in fundraising events for the underprivileged through Keppel Care Foundation. The Group has been a long-standing supporter of the SHARE programme by Community Chest Singapore, with our employees contributing a total of $13,504 through monthly workplace donations. In total, the Group donated a total of $66,917 in 2016. Keppel Logistics Singapore was awarded the SHARE Bronze award for its contributions and support of the Community Chest in 2016.

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Sustainability Report

GRI Content Index Disclosure

Reference page



General Standard Disclosures Strategy and Analysis

G4-1

Statement from the most senior decision-maker of the organisation

4-7

G4-3

Organisational Profile Name of the organisation

Backcover

G4-4

Primary brands, products, and services

15

G4-5

Location of the organisation’s headquarters

Backcover

G4-6

Number of countries where the organisation operates

16-17

G4-7

Nature of ownership and legal form

89

G4-8

18-27

G4-9

Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries) Scale of the organisation

G4-10

Employees profile

60

G4-11

Percentage of total employees covered by collective bargaining agreements

62

G4-12

Organisation’s supply chain

53

G4-13

Significant changes during the reporting period

44-45

G4-14

Whether and how the precautionary approach or principle is addressed by the organisation Externally developed economic, environmental and social charters, principles, or other initiatives to which the organisation subscribes or which it endorses Memberships of associations

41, 47

G4-15 G4-16

03, 18-27, 60

52 46

G4-19

Identified Material Aspects and Boundaries List all entities included or not included in the organisation’s consolidated financial statements Process for defining the report content and how the organisation has implemented the Reporting Principles for Defining Report Content List all the material Aspects identified in the process for defining report content

G4-20

For each material Aspect, report the Aspect Boundary within the organisation

49

G4-21

For each material Aspect, report the Aspect Boundary outside the organisation

49

G4-22

45

G4-24

Explanation of the effect of any restatements of information provided in previous reports, and reasons for such restatement Significant changes from previous reporting periods in the Scope and Aspect Boundaries List of stakeholder groups engaged by the organisation

G4-25

Basis for identification and selection of stakeholders with whom to engage

47

G4-26

Approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded

48

G4-17 G4-18

G4-23

G4-27

44, 132-134 47-48 49

44-45 48

48, 51

Stakeholder Engagement Report Profile G4-28

Reporting period for information provided

44

G4-29

Date of most recent previous report

44

G4-30

Reporting cycle

44

G4-31

Contact point for questions regarding the report or its contents

45

G4-32

Report the ‘in accordance’ option, GRI Content Index

44

G4-33

Policy and current practice with regard to seeking external assurance for the report

44

Legend

68

Fully reported

Partially reported

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

Disclosure

G4-34

Governance Governance structure of the organisation

Ethics And Integrity G4-56 Values, principles, standards and norms of behavior such as codes of conduct and codes of ethics

Reference page

47, 154-155

01, 42, 60-61

Specific Standard Disclosures Category: Economic Economic Performance

G4-DMA

Disclosures on Management Approach

18-27

G4-EC1

Direct economic value generated and distributed

40

G4-EC3

Coverage of the organisation's defined benefit plan obligations

61-62

Market Presence G4-DMA

Generic Disclosures on Management Approach

60

G4-EC6

Proportion of senior management hired from the local community at significant locations of operation

62

Category: Environmental Materials G4-DMA

Generic Disclosures on Management Approach

54, 58-59

G4-EN1

Materials used by weight or volume

58-59

Energy G4-DMA

Generic Disclosures on Management Approach

54-56

G4-EN3

Energy consumption within the organisation

54-56

G4-EN6

Reduction of energy consumption

54-56

Water G4-DMA

Generic Disclosures on Management Approach

57-58

G4-EN8

Total water withdrawal by source

57-58

Emissions G4-DMA

Generic Disclosures on Management Approach

56-57

G4-EN15

Direct greenhouse gas (GHG) emissions (Scope 1)

56-57

G4-EN16

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

56-57

G4-EN17

Other indirect greenhouse gas (GHG) emissions (Scope 3)

56-57

G4-EN18

Greenhouse gas (GHG) emissions intensity

56-57

G4-EN20

Emissions of ozone-depleting substances (ODS)

56

Effluents and Waste G4-DMA

Generic Disclosures on Management Approach

58-59

G4-EN23

Total weight of waste by type and disposal method

58-59

Compliance G4-DMA

Generic Disclosures on Management Approach

53, 56

G4-EN29

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations Supplier Environmental Assessment

53, 56

G4-DMA

Generic Disclosures on Management Approach

55-56

G4-EN33

Significant actual and potential negative environmental impacts in the supply chain and actions taken

56

Legend

Fully reported

Partially reported

69

Sustainability Report

GRI Content Index Disclosure

Reference page

Category: Social Labour Practices and Decent Work Employment G4-DMA

Generic Disclosures on Management Approach

60-61

G4-LA1

Total number and rates of new employee hires and employee turnover by age group, gender and region Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation Return to work and retention rates after parental leave, by gender

63

G4-LA2 G4-LA3

61-62 62

Labour/Management Relations G4-DMA

Generic Disclosures on Management Approach

62-63

G4-LA4

Minimum notice periods regarding operational changes, including whether these are specified in collective agreements Occupational Health & Safety

62

G4-DMA

Generic Disclosures on Management Approach

64-65

G4-LA6

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender Training and Education

65

G4-DMA

Generic Disclosures on Management Approach

64

G4-LA9

Average hours of training per year per employee by gender, and by employee category

64-65

G4-LA10

60, 64

G4-LA11

Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career development reviews, by gender and by employee category Diversity and Equal Opportunity

G4-DMA

Generic Disclosures on Management Approach

60-61

G4-LA12

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity Labour Practices Grievance Mechanisms

08-11, 60-61

G4-DMA

Generic Disclosures on Management Approach

62-63

G4-LA16

Number of grievances about labour practices filed, addressed, and resolved through formal grievance mechanisms

63

63

Human Rights Non-discrimination G4-DMA

Generic Disclosures on Management Approach

60-61

G4-HR3

Total number of incidents of discrimination and corrective actions taken

63

Human Rights Grievance Mechanisms G4-DMA

Generic Disclosures on Management Approach

62-63

G4-HR12

Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

63

Society Local Communities G4-DMA

Generic Disclosures on Management Approach

67

G4-SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs

67

Legend

70

Fully reported

Partially reported

Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016

Disclosure

Reference page

G4-DMA

Anti-corruption Generic Disclosures on Management Approach

53

G4-SO4

Communication and training on anti-corruption policies and procedures

53

G4-SO5

Confirmed incidents of corruption and actions taken

53

Compliance G4-DMA

Generic Disclosures on Management Approach

53

G4-SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

53

Product Responsibility Product and Service Labelling G4-DMA

Generic Disclosures on Management Approach

50-51

G4-PR5

Results of surveys measuring customer satisfaction

50-51

Customer Privacy G4-DMA

Generic Disclosures on Management Approach

50-51

G4-PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Compliance

50- 51

G4-DMA

Generic Disclosures on Management Approach

53

G4-PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

53

Legend

Fully reported

Partially reported

71

Sustainability Report

 

VERIFICATION STATEMENT ON GRI CONTENT INDEX (Materiality Disclosures) This statement only confirms the level of disclosure of some indicators and does not represent external assurance on the accuracy and quality of the Report’s data (quantitative and qualitative), including statements, claims, performance information, underlying management processes and data collection, calculation and consolidation. Ere-S did not seek supporting evidence or interview data owners. To the Management and Stakeholders of Keppel Telecommunications & Transportation Ltd This is the second year that Keppel Telecommunications & Transportation Ltd (Keppel T&T) has commissioned Ere-S Pte Ltd (Ere-S) to provide independent verification on the GRI Content Index of its annual Sustainability Report (the Report). The verification was carried out between January and February 2017 on the Sustainability Report found in Keppel T&T Report to Shareholders 2016. Scope The verification engagement focused on the information found in the GRI Content Index of the Report and was limited to the following indicators:  

General Standard Disclosures G4-17 to G4-23 on Identified Material Aspects and Boundaries General Standard Disclosures G4-24 to G4-27 on Stakeholder Engagement

Ere-S assessed whether the GRI Content Index and the verified indicators are presented in accordance with the following aspects of the GRI G4 Sustainability Reporting Guidelines: 1. 2. 3.

Format and structure of the Content Index Inclusion and clarity of references to the locations of the verified indicators Existence of the verified indicators’ data in the referenced locations

Ere-S also assessed whether each verified indicator presents the information specifically required in the reporting instructions (what to report) of the GRI G4 guidelines. Methodology Prior to the publication of the Report, Ere-S examined the clarity and inclusion of location references for the indicators listed in the GRI Content Index and assessed the information in the referenced pages of the Report and other sources. Where indicators did not present all information required in the reporting instructions of the GRI G4 guidelines, Ere-S suggested appropriate amendments to Keppel T&T. The final version of the Report was checked by Ere-S to ensure that all agreed changes had been effectively made. Findings On the basis of the above methodology, the GRI indicators G4-17 to G4-27 are found to be adequately presented in adherence to GRI G4 reporting instructions, with references to the disclosures correctly located in the Report. Compared to the previous Report, we observed more complete descriptions of the material aspects and boundaries, such as the materiality matrix and the table on material aspects. On the other hand, the Report would benefit from the disclosure of additional examples of actions taken by the company in direct response to concerns from diverse stakeholder groups. Details of the findings and recommendations for further improvement have been presented to Keppel T&T in a separate verification report.

Ere-S Pte Ltd Singapore, 28 February 2017

Jean-Pierre Dalla Palma, Lead Assessor

Ere-S Pte Ltd is a consulting company specialising in business sustainability and provides services in the domains of sustainability reporting, sustainability report assurance, stakeholder engagement and CSR training. Keppel T&T is responsible for the details provided in the Report and the GRI Content Index. Ere-S was not involved in the development and writing of the Report; neither has Ere-S been engaged by Keppel T&T for other projects. Ere-S’ activities are independent of Keppel T&T and contain no financial interest in Keppel T&T’s business operations. www.ere‐s.com  

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Keppel Telecommunications & Transportation Ltd Report to Shareholders 2016