environmental report 2007 - sg.jec.com · corporate reporting online. together with other...

Environmental Report 2007

Table of Contents

Scope of this Environmental Report 01

Objectives and Highlights

About JEC 02

Chief Executive’s Statement 03

Environmental Policy and JEC’s Management System 04

Stakeholder Engagement 06

Environmental Targets and Achievements 10

Case Study - Pilot Scheme Exploring the Uses of Reclaimed Water 12

Environmental Stewardship 14

The Way Forward - Environmental KPI Improvement Plan 2008 17

Scope of the Environmental Report 2007

01 Environmental Report 2007

Objectives and Highlights

This Jardine Engineering Corporation (JEC) Environmental Report 2007 describes our strategic environmental performance from information derived from 2007 and 2008, where available. It follows on from our inaugural Environmental Report 2006 and presents JEC’s principles, goals, objectives, and outcomes, in relation to our contribution to environmental responsibility.

The JEC Environmental Report 2007 is addressed to all JEC’s stakeholders including customers, shareholders, employees, and any individual in the community that is interested in, or affected by, JEC’s environmental activities. The report affirms JEC’s environmental goals, highlights its programmes for reducing any adverse impacts, and outlines objectives for continuous improvement.

JEC’s Environmental Report 2007 focusses on corporate environmental practices, and is currently not independently verified. Comprehensive internal assurance is provided through extensive assessment at multiple levels. We intend to continue reviewing this process. This report also acts as a communication channel for stakeholder engagement and addresses the community’s increasing awareness of environmentally viable products and solutions.

Since 2006, JEC has provided all its corporate reporting online. Together with other information, this Environmental Report 2007 can be found on the company’s corporate website at www.jec.com.

Objectives

The objective of this Environmental Report 2007 is to outline JEC’s performance against targets set in 2006, and to address the broad range of key environmental risks and issues relevant to our business. It summarises the company’s management approach to environmental issues and demonstrates, through project case studies and performance analysis, how these have become part of JEC’s business operations. The data presented covers all JEC’s business operations in Hong Kong. Finally, the Environmental Key Performance Index Improvement Plan 2008 sets targets for environmental improvements going forward.

Highlights 2006 - 2007

• Decreased total electricity consumption for our Hong Kong offices by 3.7% on a like for like basis;

• A 6% increase in the quantity of paper recycled;

• Maintained a zero rate of environmental related conviction cases;

• Produced an Environmental, Health and Safety handbook that was distributed to all employees; and

• Attained the ISO 14001, international standard for the Environmental Management Systems.

About JEC


JEC delivers world-class innovative solutions, industry-leading products, and internationally benchmarked professional services that customers trust and rely on. The scope and depth of JEC's full offering and expertise makes JEC a valued partner in almost every engineering, industrial, building,electrical & mechanical, Original Equipment Manufacture (OEM) and infrastructure project imaginable.

JEC’s talented team of employees around the Asia Pacific region work continuously to understand, meet, and exceed, the needs of every customer in all markets we serve. Our solutions, products and services combine seamlessly to provide customers with lifetime value, reliability, and responsible environment citizenship.

JEC is also the partner of choice for many distinguished companies and well-known brands entering the most exciting high growth markets in the world. We take pride in providing our partners with an unbeatable network of regional and local expertise, uniquely sourced manufacturing opportunities, and the benefits of our commercial, governmental and institutional relationships that are over 85 years old.

With headquarters in Hong Kong, JEC employs more than 3,000 experts and professionals across the Asia Pacific region. Founded in 1923, JEC continues to introduce innovative new benchmark standards that lead the industry.


Chief Executive’s StatementJEC continues to commit to the highest environmental, health and safety standards. In today’s business environment, it is necessary to keep pace with the demanding and ever increasing standards expected by broader society. JEC sets higher environmental targets every year to consciously encourage innovative ideas to meet these changing standards. This genuine commitment is reflected by achieving 95% of our targets set for 2007.

This level of success reflected a more defined internal environmental reporting system, which emphasised responsibility and accountability. Embedding our developing Environmental Management System into the existing audit programme, we continue to enforce environmental awareness training for employees. This ensures that they have the necessary knowledge to enhance JEC’s environmental performance each year.

Over the last year JEC also extended this awareness beyond our own employees. As part of this initiative, we published an Environmental, Health and Safety Handbook and distributed it to our contractors’ employees to educate and encourage expanded involvement from the industry. This will encourage awareness in areas where JEC is not always a principal contractor. JEC aims to continue extending the environmental dialogue undertaken with our business partners, to individuals, and to the broader community.

Looking into the future, we remain committed to our environmental goals, objectives and programmes. JEC is committed to the achievement of its targets and in maintaining the high level of environmental performance achieved to date. JEC will also support our business partners in improving their environmental performances. As always, we believe feedback is a vital component to our success, so please do not hesitate to communicate your suggestions and comments to me directly at [email protected].

James R GrahamChief ExecutiveMay 2008


Environmental Policy and JEC’s Management System


JEC has a long-standing commitment to the pursuit of environmentally sustainable development, and in 2005, signed and is a keen supporter of the Clean Air Charter. The charter is part of “Project Clean Air” – a business sector initiative launched by the Hong Kong General Chamber of Commerce and the Business Coalition on the Environment. For JEC, environmental sustainability is an integral part of corporate responsibility, which embraces economic, social, and environmental issues.

JEC seeks to pursue sustainable development by leveraging its resources, including technological know-how, market position, and the continuous building of its environmental competencies. JEC’s principles for sustainable development include:

• Integration of environmental priorities into our business activities;

• Active and open external and internal communication; and

• Proactive cooperation with customers, suppliers, industries, authorities, and other stakeholders.

Environmental Policy

JEC’s commitment to continuous improvement in environmental issues is clearly stated in our environmental policy, which was revised in 2008. JEC’s management and employees are jointly responsible for implementing the policy.

The basic principles of JEC’s environmental policy comprise the following:

• Successful businesses sharing of three common attributes - green leadership, performance management and partnership synergy;

• Maintaining an active, open, and ethically sound approach to environmental protection; and

• Pursuing the objective of sustainable development.

Principles of Implementation

The following principles guide the implementation of JEC’s environmental policy:

• JEC’s environmental policy is a 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;

• JEC’s action programmes are based on a thorough understanding of the environmental impacts of our engineering services and solutions; and

• JEC routinely conducts internal audits to verify that our activities are in compliance with our Environmental Management System and to determine if the Environmental Management System has been implemented properly.

Environmental Management

System

JEC applies global standards for business practices and management systems throughout its business units. These 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 they are applicable, taking into account contract requirements.

In early 2007, JEC met the international standards set for the management of environmental systems, and achieved certification for ISO 14001:2004. Since then, the Hong Kong Quality Assurance Agency has undertaken two surveillance inspections and has confirmed that JEC’s Environmental Management System (EMS) continues to comply with these standards.

The environmental performance of JEC’s products, services, and solutions, and the environmental impact of our operations are systematically managed through JEC’s EMS. The expertise of the EMS is integrated into normal daily business and line organisation.

JEC’s EMS has helped to demonstrate to external stakeholders the extent of our commitment to environmental and social issues, and also provides a point of reference for our objectives and targets.

At JEC, the environment is a part of everyone’s lives and an integral part of daily business. JEC believes that a company that is recognised as environmentally responsible is also in a better position to attract and retain employees. JEC provides internal training and communication

Stakeholder EngagementJEC values its relationship with all stakeholders and continues to identify areas of mutual benefit. JEC’s external stakeholders comprise customers, shareholders, suppliers, contractors, trade organisations, authorities, and local communities. JEC’s internal stakeholders comprise every employee within the JEC family.

on environmental matters to every employee.

CommunicationJEC has an internal intranet site that covers environmental issues and activities within the Group. The site is a channel for dissemination of news and information on environmental matters, and relays information on the implementation of environmental activities in the business. Employees also have access to the overview of JEC’s environmental objectives, targets, and activities.

Internal Stakeholders


Established in 2004, the quarterly JEC Magazine has attracted a large number of readers; from our business partners to JEC employees throughout the region. Each issue selects a theme and the Editorial Team, writers, and contributors cover different business units and geographical locations. The theme of pollution, clean air, and building management systems were covered in issue 05 in 2006. In early 2008, a new brochure has been developed focussing on environment and energy conservation products and solutions.

Training and Competence DevelopmentEnvironmental awareness and understanding is integrated into JEC’s competence development, with cognitive progression paths and job profiles created for different types of environmental specialists. The overarching idea that the environment affects everyone is implemented into management development. Environmental issues are included in many of JEC’s regular management training programmes. The induction of new employees, during their face-to-face briefings, also includes information on environmental matters.

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JEC engages in continuous dialogue with its external stakeholders to stay abreast of current environmental requirements and international best practice. This allows JEC to gauge the issues stakeholders view as important now and into the future, what is expected of JEC, and how these expectations can be met.

CustomersJEC promotes two-way communication with customers through comprehensive regional customer satisfaction surveys and customer visits. Members of the Customers & Markets Department conduct customer-specific discussions to carry out customer satisfaction surveys.

JEC’s corporate web site, www.jec.com, contains extensive information on JEC’s environmental goals and principles.

Services Suppliers and ContractorsThe requirements of the environmental legislation Air Pollution Control (Volatile Organic Compounds) Regulation (CAP311), effective in April 2007 have been extensively discussed with service suppliers and contractors. Communication tools for keeping all parties continuously informed about JEC’s requirements were also developed.

Governments and AuthoritiesJEC engages in extensive dialogue with the Hong Kong Special Administrative Region (HKSAR) Government and is committed to the Clean Air Charter. The Charter aims at bringing companies together with government agencies to foster cooperation and action for cleaner air in the Pearl River Delta of Southern China. JEC continues to

External Stakeholders

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CommunityJEC actively participates in the communities in which it operates. Promotion of environmental awareness has been a key element of these community-based activities.

actively participate in the HKSAR’s environmental engineering projects to build a better Hong Kong (case study described later in this report).

Trade Organisations and Chambers of CommerceIn September 2005, JEC signed the Clean Air Charter in Hong Kong, and undertook measures to implement the associated commitments. The

Charter is part of “Project Clean Air” – a business sector initiative launched by the Hong Kong General Chamber of Commerce and the Business Coalition on the Environment. JEC is also in regular discussion with other trade organisations and chambers of commerce, and plays an active role in the environmental committees of many industry organisations.


Environmental Objectives Target Completion Status Score

Achieved EMS Accreditation To ISO 14001: 2004 March 2007 l Accredited in Feb 2007. 100%

Review Of Environmental Improvement Planl This plan should be reviewed on an ongoing

basis and formally at the JEC Group Environmental, Health and Safety Management (EHSM) committee meetings every six months.

December 2007 and on-going

l Passed all surveillance audits without non-compliance items.

100%

Electricity Consumption KPI1

l Reduce 5% of electricity consumption in JEC’s offices by end of 2007.

l Look at the feasibility of installing automatic switch off systems for lighting and air conditioning systems for renovated branch offices and new site offices.

l Continuing commitment to the objectives of the Clean Air Charter.

December 2007

l Reduction is about 3.7% with reference to 2006 consumption.

l No new offices in 2007, and installation at existing offices not viable as payback period is longer than the lease.

l Plans were identified and established, where applicable, to the statements of the Clean Air Charter.

75%

N/A

100%

Office / Workshop Water Use KPIl Install push taps, flow restrictors or infrared

controls on washbasins at site offices to reduce water use and wastage.

June 2007 l Washrooms of Shatin site office have been fitted with push taps controls.

100%

Environmental Targets and AchievementsThe objectives reported below were from targets adopted by JEC and cover the period January 2007 to December 2007.


1 KPI: Key Performance Index / Indices

Environmental Objectives Target Completion Status Score

Waste Collection KPIl Provide training on environmental issues,

including waste management and recycling, through Environmental Toolbox Talks to all field staff by end of 2007.

l Ensure that double-sided printing for all company documents whenever possible.

l Increase the percentage of paper recycling by an additional 5%.

December 2007

l All field staff have attended Environmental Toolbox Talks.

l Single-sided printing still observed occasionally.

l Percentage of paper recycling versus paper consumption is 6% more than 2006.

100%

75%

100%

Environmental Incidents KPIl Ensure zero environmental incidents and

to meet and exceed relevant environmental legislation.

December 2007 and on-going

l Zero environmental incidents and compliance with relevant environmental legislation met.

100%

Communications l Develop environmental information packages

(DOs and DON’Ts handbook) for all staff and sub-contractors regarding environmental requirements of JEC’s policies.

July 2007 l The revised Environmental, Health and Safety handbook was distributed to all staff and workers.

100%



Case Study - Pilot Scheme Exploring the Uses of Reclaimed Water

Secondary Treatment in Shek Wu Hui Sewage Treatment Works

Advanced Treatment in Reclaimed Water Treatment Plant

Digestion – Wastewater mixes with Oxygen and bacteria in the aeration tanks where the bacteria digest organic pollutants

Settling – Heavy organic particles sink to the bottom of large tanks and are removed

Disinfection – Filtered water is disinfected with Chlorine to kill any remaining microbes

Filtration – Water passes through filters to remove fine particles

Reclaimed Water Treatment Process


Project Information

Client Environmental Protection Department (EPD), HKSAR GovernmentIndependent Advisory Panel Professors from various universities Engineering Consultant CH2M HILL Engineering Contractor The Jardine Engineering Corporation, Limited Water Quality Sampling and Testing Enviro Labs Ltd.

Commencement of Project June 2005Construction Phase May – Oct 2006Trial Commencement Oct 2006 (15 months) Completion of Project End of 2008 Daily Reclaimed Water Output 108 cubic metres per day

Abstract

The HKSAR Government conducted a pilot scheme on the use of reclaimed water. A high-level treatment unit has been added to the existing secondary treatment plant at Shek Wu Hui and has been in operation since 2006 for a two-year trial.

The Shek Wu Hui Sewage Treatment Works in the Northern District, HKSAR, commenced operation in October 2006 and the reclaimed water produced is being used for flushing toilets in nearby schools, homes for the elderly, non-potable uses such as controlled irrigation, and for use breeding ornamental fish within the facility.

JEC, as the contractor for the engineering works of this pilot scheme, has demonstrated its ability and technical know-how in searching for an alternative water source.

Advanced Reclaimed Water Treatment Unit in Shek Wu Hui Sewage Treatment Plant, Hong Kong

Reclaimed Water Quality (32

Parameters)

• 7 Physical/Process related parameters (e.g. pH, Turbidity)

• 4 Aesthetic water quality parameters (e.g. Odour, Colour)

• 10 Nutrients parameters (e.g. BOD5, Total DO)

• 6 Inorganic water quality parameters (e.g. Sodium, Calcium)

• 5 Indicators for acute health risks (e.g. Total Coliform, Bacteria)

Remarks

The above pilot scheme does not cover using reclaimed water for consumption. At present, the HKSAR Government has no such plans. Public recognition, awareness, and acceptance are required if reclaimed water is to be used in daily life. The HKSAR Government will include studying the water quality standards for reclaimed water and the feasible options that are applicable to Hong Kong, under the current strategic study titled “Total Water Management”. The Government will also consult the public on this issue and enhance public knowledge on reclaimed water through education initiatives and publicity programmes.

Existing Secondary Treatment Plant at Shek Wu Hui, Hong Kong

Environmental StewardshipThe environmental stewardship of JEC ranges from our routine energy audits, to the strategic measures in project designs, managing the environmental aspects of the business. Activities from recycling, and JEC’s ISO 14001 certification contributes towards this vital aspect of project management.


Energy Consumption

In spite of an increase of business activities in JEC’s offices, JEC managed to reduce the overall energy consumption in kilowatt hours on the portfolio, by 3.7% from year 2006. This was due to the results of our energy saving programme implemented after the energy audits held last year.

Energy Audit

In 2007, JEC commissioned an energy audit report on all Hong Kong office premises.

The report was submitted to senior management in early 2007 and included various recommendations to reduce energy consumption. For each recommendation, estimated cost payback period and annual saving in energy consumption were clearly listed for consideration by management.

2 EMSD: Energy Consumption Indicators and Benchmarks for Commercial Sectors http://www.hkiol.org/energy2/main.html3 Subgroup: Tenant units in building (multiple tenants) with central air-conditioning supply

Paper Recycling at Office Premises

2006

2,670

13,059 12,647

Kg

Recycled

Paper consumption(80GSM)

2007

3,340


Recycling

JEC runs a number of schemes for recycling aluminum cans, paper products and fluorescent light bulbs and tubes. In 2007, JEC recycled 26% of the paper products it consumed. Compared to 2006, where we recycled 2,670 kg, we have collected and recycled over 3,340 kg of paper wastes in 2007, a 25% increase from the previous year.

The energy reduction recommendations have helped JEC in its preparation of an action plan for investment. Some recommendations were not viable due to longer payback periods (longer than the office lease). Other results of the exercise focussed JEC’s attention on energy usage and other potential improvements were identified.

Analysis via benchmarking tools provided by the EMSD2 showed JEC energy consumption performance at office to be at the “good” level of our corresponding subgroup3 in the year 2007.

2006: 5350.97 m2

2007: 5484.25 m2

2006:890,826 kWh

2007:857,506 kWh

Total electricity consumption during the report period 2006 and 2007

Total internal floor area of JEC office premises 2006 and 2007

Furthermore, a “Bring Your Own Cup” scheme was launched, where we encouraged staff to bring their own cup or mug for drinks when attending in-house meetings while paper cups are made available to visitors only.


Annual Energy Consumption Jan 06 - Dec 06 Jan 07 - Dec 07

Electricity Consumption (HK$) 1,034,344 1,028,530Electricity Consumption (kWh) 890,826 857,506Floor Area (m2) 5,351 5,484

Operation Hours Monday to Friday 10 10Saturday 5 5Sundays and Public Holidays 0 0

Number of Full Time Office Staff 500 487Number of Personal Computers and Photocopiers 446 435Electricity Consumption / head / month(kWh) 148 147JEC Annual Energy Consumption (MJ/m2/annum) 561 526Benchmark4 4.35 4.30Our Position at 20th percentile of at 20th percentile of our subgroup our subgroup

Benchmark result compared with our sub group population:

Annual energy consumption per area is 560.5 MJ/m2/annum and 526.4 MJ/m2/annum for 2006 and 2007 respectively.

Year 2006JEC annual energy consumption per area is lower than 80% premises of our subgroup (i.e. JEC is at 20th percentile of our subgroup). It shows that our energy consumption performance is at the “good” level of our corresponding subgroup.

More efficient

We are here2006

Ben

chm

ark

Percentile

4.35

Average 5.71

Less efficient

JEC premises’ classification is: Private Offices: Tenant units in buildings with central air-conditioning supply.

More efficient

We are here2007

Ben

chm

ark

Percentile

4.30

Average 5.71

Less efficient

Year 2007JEC annual energy consumption per area is lower than 80% premises of our subgroup (i.e. JEC is at 20th percentile of our subgroup). It shows that our energy consumption performance is at the “good” level of our corresponding subgroup.

4 Benchmark = In [Electricity Consumption (kWh) / Floor Area (sq m)] – 0.0005 x Annual Operation Hours + 0.0021 x Number of Full Time Staff – 0.0041 x Number of Personal Computers and Photocopiers + 1.4457

We Welcome Your FeedbackJEC is dedicated to improving our environmental performance. As a reminder, JEC has a centralised customer suggestion channel, which will be read and answered by a 24-hour fully manned customer support call centre. Please do not hesitate to communicate to us any comments regarding the JEC’s Environmental Report 2007 and how JEC can continue to contribute to environmental improvement.

JEC's Environmental Report 2007 is also available in both English and Chinese on www.jec.com.

Thank you for reading our report. For any suggestions, please write to us either by e-mail or post at the following address:

Environmental & Safety Manager13/F Somerset House, Taikoo Place, 979 King’s Road, Hong Kong

E-mail : [email protected] : www.jec.comTel : +852 2807-1717Fax : +852 2887-9090

The Way Forward - Environmental KPI Improvement Plan 2008


Environmental Improvement Responsibility Completion

Electricity Consumption KPIl Reduce 2% of electricity with reference to 2007

consumption in headquarters and branch offices by the end of 2008.

EMR5

DEMR6December 2008

Resource Conservation KPIl Look at the feasibility of supplying recycled-content

paper instead of regular bleached paper.

EMRDEMR

June 2008

Waste Collection KPIl Increase the percentage of paper recycling by an

additional 3% compared with 2007.

EMRDEMR

December 2008

Environmental Incidents KPIl Ensure zero environmental incidents and to meet with

relevant environmental legislations requirements.

EMRDEMR

December 2008

Communications l Actively participate in out-reaching activities for the

promotion of environmental protection.

EMRDEMR

December 2008

5 EMR: Environmental Management Representative 6 DEMR: Deputy Environmental Management Representative

Jardine Engineering Corporation Principal Activities by Location

Hong Kong Headquarters13/F Somerset House • air-conditioning products & servicesTaikoo Place, 979 King’s Road • building automation systemsHong Kong • building productsTel: 852 2807-1717 • e&m contractingFax: 852 2887-9090 • e&m equipmentemail: [email protected] • maintenance & renovationwww.jec.com

ChinaBeijing18/F, Units 01,10 • air-conditioning products & servicesThe Exchange Beijing • building productsNo. 118, Jianguo Road (Yi) • contractingChaoyang District, Beijing 100022, PRC • e&m equipmentTel: 86 10 6505-3183Fax: 86 10 6505-2898

ShanghaiRoom H-K Floor 17 Cross Region Plaza • air-conditioning products & services899 Ling Ling Road • building productsShanghai 200030, PRC • contractingTel: 86 21 6218-3888 • e&m equipmentFax: 86 21 6360-3928

GuangzhouRm 1207C T P Plaza • air-conditioning products & services109-9 Liu Hua Road • building productsGuangzhou 510010, PRC • contractingTel: 86 20 8666-8813 • e&m equipmentFax: 86 20 8666-8855

ShenzhenRoom 2010 Shenhua Commercial Building • air-conditioning products & servicesNo. 2018 Jiabin Road • building productsShenzhen 518005, PRC • contractingTel: 86 755 8238-3928 • e&m equipmentFax: 86 755 8238-3938

MacauAlameda Dr. Carlos D’Assumpcao, No. 180 • air-conditioning products & servicesEdf. Tong Nam Ah Centre Com 18/U-V, Macau • building productsTel: 853 2825-3077 • contractingFax: 853 2825-3076 • e&m equipment

Thailand22/F Times Square Building • air-conditioning products & services246 Sukhumvit Road, Klongtoey • building productsBangkok 10110, Thailand • contractingTel: 66 2 254-0299 • e&m equipmentFax: 66 2 254-0218

The Philippines 2/F Jardine Building • agricultural chemicals2901, JM Compound, Faraday Street Corner • air-conditioning products & servicesOsmeña Highway, Makati City • building productsThe Philippines • contractingTel: 632 843-6011 • e&m equipmentFax: 632 844-5650 • marketing & distribution

Singapore178 Paya Lebar Road • air-conditioning products & services#03-10 Singapore 409030 • building productsTel: 65 6305-6388 • contractingFax: 65 6747-6340 • e&m equipment

C10/05/08(HK/E)

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