2015 Sustainability Report
Sustainability at GHD
Across the world, GHD operates in diverse and complex communities. As our reach broadens, our corporate responsibilities expand. We are a 100 percent employeeowned company of advisory engineers, architects, project managers and support professionals collaborating from offices across four regions – Australia, North America, Asia Pacific and Europe/Middle East. Our strategy We continue to implement our Strategy to 2020, focussing our business on a client-service led culture and a connected global network of professionals who collaborate to provide services, support and outcomes to benefit our clients, people and the communities in which we operate. GHD’s business is built on four core values: •
Safety – We intrinsically value the safety of ourselves and others affected by our operations and services.
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Teamwork – We collaborate within our global community by helping and supporting each other to achieve personal, client and company goals.
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Respect – We value each individual and nurture both internal and external relationships through listening and understanding.
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Integrity – We embrace honesty and trustworthiness through professional and ethical behaviour with our clients, communities and ourselves.
Our point of difference Today, GHD has become one of the world’s leading 100 percent employeeowned professional services company – our point of difference. This means our people have a proprietary interest in our performance, and it results in higher retention rates for key personnel. Many of our people have been with the company for 20+ years Our Sustainability Policy The GHD Sustainability Policy provides strategic direction to our achievement of:
“Improving human wellbeing without compromising the local or global environment over the long term. In an organisational context this means integrating social, economic and environmental issues into core business processes to achieve environmentally and socially responsible operations.”
We are achieving this by concentrating our efforts on five core elements: 1. Developing our people 2. Contributing to our world positively 3. Demonstrating good governance 4. Managing our risk profile 5. Assisting our clients to be more sustainable
GHD remains strongly committed to our alignment with the United Nations Global Compact (UNGC) 10 Principles. This commitment includes an ongoing process of continuous improvement and open communication with all stakeholders including our people, clients and communities. Your feedback is greatly appreciated. We invite our readers to share comments, suggestions and thoughts on this report by emailing news@ghd.com.
About GHD Who we are GHD is one of the world’s leading professional services companies. Established in 1928 and 100 percent privately owned by our people, GHD operates across five continents – Asia, Australia, Europe, North and South America – and the Pacific region.
What we do We provide engineering, architecture, environmental and construction services to private and public sector clients of all sizes. Our business model is to work internationally and deliver locally. Put simply, we work where our clients work.
How we do it GHD aligns the knowledge, skills and experience of our people with innovative practices, technical capabilities and robust systems.
Our strategy is client-service led
Committed to sustainable development, we are guided by our HSE management systems, which are certified by Lloyds Register Quality Assurance to the relevant international standards (ISO and OHSAS).
Our strategy is client-service led, responding to the demands of water, energy and urbanisation. We benefit our clients by:
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Understanding their markets, challenges and drivers
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Partnering with their people and getting to know them
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Working to exceed their needs and expectations
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Providing innovative value across their assets
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GHD around the world GHD offices Countries and territories in which GHD has delivered projects or operates *FX rate is AUD1.00 = USD0.831 This is GHD’s average USD rate for 2014/15
AUD1.6 billion revenue
USD1.3 billion revenue*
200+ offices
75+
services
8500+ people
FRONT COVER: As part of GHD’s Strategy to 2020, the lines represent how we connect our clients with diverse services and talented people across our network.
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1
135+
connected global network
countries & territories
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Developing our people
People team North America
At GHD, people are at the heart of our success, culture and enduring client relationships. Our connected global network comprises a talented group of professionals who are known for their technical prowess, business acumen and long-term commitment to clients and the company. Our employee-owned business model enables us to involve and engage our people across disciplines, levels, roles and regions. To achieve this, we focus on the key elements of a great place to work. That is, we aim to create a high performing workplace by embedding organisational behaviours, developing our leaders and investing in our people for today and tomorrow. Policies GHD maintains a suite of policies which outline minimum requirements for conducting business and the standards to be upheld by all of our people. Our values of Safety, Teamwork, Respect and Integrity reflect the collective behaviours, values, expectations and attitudes of the company. They reflect ‘the way things are done around here’ and determine how we relate to our 6 | GHD 2015 Sustainability Report
clients, both internal and external, and our role as a responsible corporate citizen. A commitment to our Health Safety Environment (HSE) Policy is the hallmark of GHD’s approach. It means embedding HSE into every aspect of our operations, and protecting the safety of our people, our clients and the communities and environments in which we operate. This enables us to promote the delivery of our cultural objective: ‘Safe You, Safe Me, Safe GHD’. GHD’s Integrity Management Guidelines establish our behavioural expectations and conduct requirements. As part of this commitment, we comply with the laws of the countries in which we operate, and promote ethical business and personal behaviour consistent with our core values of Safety, Teamwork, Respect and Integrity. Our Child Protection Statement applies to employees, subcontractors and volunteers engaged within the GHD group of companies on international development assistance projects and its implementation facilities. It reaffirms our commitment to not use – directly or indirectly – forced labour or child labour.
GHD’s Equal Employment Opportunity Policy illustrates the company’s commitment to women in the workforce, ensuring non-discrimination in personnel practices and making reasonable accommodations for all employees’ religious observance and practices. Connected global network Relocation or transfer of our people (permanent or temporary) is guided by the Relocations @ GHD online portal, access to health, education and housing for our people and their families is considered and managed via these processes.
We measure our people’s engagement via the GHD People Survey, which: •
Provides our people with an opportunity to voice their opinions
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Enables identification of areas for improvement
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Supplies sufficient information for development of group and local action plans
Performance highlights
Engagement As demonstrated by the results of our people survey undertaken in February 2015, the engagement of our people improved in many regions including Asia, the Middle East and the UK. Areas of future focus include communication, empowerment and diversity. Talent Our long-term sustained investment in graduates is positioning our business for success in building future leaders. Careers A refreshed Career Pathways model was developed and launched in Australia, New Zealand and the Middle East in response to the need for highlighting career opportunities at GHD. It has been widely used to date with excellent feedback and further enhancements planned. Mobility To streamline our approach to mobility, we integrated our global recruitment platform to address both internal and external positions together with candidate tracking. We also extended the North American employee referral program to help source suitable candidates in other countries. Diversity and inclusion We embedded diversity of thought, background and experience into our culture with the introduction of an
unconscious bias training module, initially in the Australian region. This included the enhancement of our parental leave policy and return to work program. In support of our commitment to diversity and inclusion, GHD received the 2015 Employer of Choice for Gender Equality Citation from the Commonwealth Government’s Workplace Gender Equality Agency in Australia. Work is currently underway for us to extend our diversity and inclusion initiatives in other regions. Training focus Integrated learning and development focused on the categories of people skills; client service; health, safety and environment; projects and technical services. Training activities During the year we delivered more than 25,000 face to face and eLearning training activities, including design and development of health and safety, and environmental awareness programs for North America. Shared learning modules The successful introduction of short internal training modules where senior and experienced staff deliver training in a range of disciplines using a workshop approach. Senior professionals At the senior level, we are proud to have many award-winning professionals and
technical leaders who every day discover new ways to solve our clients’ challenges. You can find GHD people proudly representing their disciplines in leadership positions with industry associations such as the Society of American Military Engineers, the Australian Water Association, and more. Many of our people have been with GHD for 20+ years, and bring a powerful combination of experience, skill and commitment to every project. They also mentor and assist the next generation of young professionals to sustain the future of GHD. Young professionals The GHD Young Professionals (YPs) provide a unique opportunity for people with less than 10 years of professional experience. Active in every region, these groups help our people build strong working relationships with their peers and clients. They also provide the necessary workplace skills for YPs to achieve career goals and reach their potential through social, community and professional development activities. YPs have been involved in numerous activities including technical workshops, lunch and learn sessions and project site visits around the world. They also lent their support to many community initiatives.
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Positive contributions
GHD Young Professionals
We care by minimising our ecological impact through resource efficiency and nature conservation initiatives, and by supporting communities through development activities and our GHD in the Community Program. Our Sustainability Policy and HSE Policy confirm our commitment to care for the health of our people and the environment. Support is provided through the consistent applications of these policies which are internationally certified through GHD’s HSE Management System.
Sustainability targets and indicators (economic, environmental and social) as they relate to GHD are reported on a regular basis through the Executive Reporting System as well as Executive and Operating Centre management structures.
The strategic and operational implementation of HSE at company level is the responsibility of the Executive Management Group (EMG) – chaired by the Chief Executive Officer (CEO).
The GHD Environmental Stewardship Procedure details the environment specific objectives and targets and the reporting requirements for each.
GHD contributes to the public environmental debate through our involvement with industry associations such as Consult Australia. We interact with all levels of government in the countries in which we operate on matters within our sphere of influence. 8 | GHD 2015 Sustainability Report
GHD influences ‘downstream’ suppliers via environmental harm prevention through procurement processes requirements including Registration of Subcontractors, and Terms of Engagement. Additionally, GHD’s preferences suppliers providing cost effective sustainable products.
Focusing on ‘designing for sustainability’, our people apply the GHD Project Impact Assessment (PIA) process in their projects. PIA is a methodology used by GHD business development and project teams to evaluate the social, economic and environmental impacts of projects and as a way to brainstorm project improvement strategies. This is also supported by the Environment in Design Guidelines for smaller projects. Coupled with partnerships with industry organisations, our people maintain the currency of their discipline via structured technical forums. Additionally, GHD makes the ‘best available technology’ available to client organisations.
Performance highlights GHD in the Community
Habitat for Humanity’s Women Build Program
EWB team in Sam M’Bollet, The Gambia
MSABI
Making a difference to US and Canadian communities
Partnering with EWB around Clean drinking water in the the globe Philippines and Tanzania
With nearly 4000 people working for GHD across the US and Canada, our community contributions are extensive. This year, our people have supported a large range of causes, including Habitat for Humanity, CANstruction, American Red Cross, YMCA, American Heart Association, Sacramento Food Bank & Family Services, Central Pennsylvania Food Bank, Great Urban Race and more.
As part of our flagship partnership with Engineers Without Borders (EWB), our people are involved in numerous programs to assist communities in Australia, USA, Canada, Asia & Africa. This includes long term support to the Indigenous Yorta Yorta Nation in Australia, study tours and technical mentoring of volunteers, and a development program in a rural village in the Gambia, West Africa.
Interns from CareerTrackers including GHD
GHD cyclists ride for MS
Our people in the Philippines have worked in partnership with the Rotary Club of Melbourne and Lucena Central (Philippines) to bring safe, clean drinking water to Barra Village. In Tanzania, GHD continues to support the MSABI safe water and sanitation program, which has installed more than 350 safe water points servicing 85,000 people and delivered education to over 350,000 people.
GHD team removing wilding pine
Supporting Indigenous people
Fundraising for Multiple Sclerosis in Canada
Protecting biodiversity in New Zealand
GHD is continuing to make a difference to Indigenous communities in Australia. We have committed to a 10-year partnership with CareerTrackers to provide professional internships and mentoring for Indigenous university students. In addition, our people are providing pro-bono engineering services to the Melbourne Indigenous Transition School to benefit students in remote areas.
As part of our merger with CRA, people from our Waterloo office have once again participated in the Multiple Sclerosis (MS) Bike 150 Grand Bend to London tour in Ontario. This is the fifth year in a row that our people have been involved in the ride to raise funds for the MS Society of Canada, which aims to improve the lives of people living with MS through programs, services, and research.
In Canterbury, the uncontrolled spread of the introduced wilding pine species is a growing issue that is threatening freshwater biodiversity, farming production and landscape values. Our people participated in a volunteer day organised by Environment Canterbury to remove wilding pine seedlings and young trees to stop regrowth and minimise impacts in an area near Lake Lyndon in Arthur’s Pass.
This is a small sample of our people’s community contributions. Find out more at www.ghd.com/community/
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Performance highlights
Innovation GHD’s award-winning Innovation program is about achieving business growth though new ideas, technology and business models. Innovation voucher program GHD is playing a key role in the Victorian Government’s program established to help Small & Medium Enterprises (SMEs) grow. We are working with more than 20 SMEs, providing technical and commercial insight and assisting them to connect to the infrastructure market. District of Columbia Water and Sewer Authority, USA GHD is supporting one of America’s top water utilities to design and implement their innovation program. Commercialisation Development of StormDMT, a unique water treatment technology that removes dissolved heavy metals and nutrients. In 2015 we licensed the technology to Ecosol. Smart Seeds innovation competition GHD led this program in Brisbane, Melbourne and Sydney. YPs from a number of organisations teamed up to solve real infrastructure challenges, build professional skills and expand their network. 10 | GHD 2015 Sustainability Report
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GHD Governance model
Good governance We commit to our values and Governance policies. this is reflected in the Provides structure through way we manage our business which the objectives of the and interact withareour clients company set, as well as the means of attaining those and our people. objectives and monitoring GHD Board performance.
Shareholders
Board Risk committee
Nominations committee
Risktogether appetitewith the CEO The GHD Board have an appropriate balance of skills, Determines the degree of risk experience and andtobring that expertise, GHD is willing take. independent judgement to bear in Risk management decision making. framework The role of the Board is to add value Identifies and rates risks and through furthering the achievement of determines high level GHD’s core purpose. Adding value is mitigation strategies. The risk what the Board does,byand it is achieved identified management with statutory and in four criticalalong areas.
Business plan
registration compliance
Sets out how GHD will 3. Accountability – effective deliver its business demarcation of responsibilities objectives ensuring a through consistent delegatedoperational authorities and policies, providing informed, approach. astute and effective oversight Compliance of management, and systems ensuring senior management selection Monitors the developmentand succession effective. and processes effectivenessare of the management systems
4. Compliance – management ensuring the and risk companyframeworks. is and remains solvent, probity of financial reports, compliance with the regulatory environment, operating ethically, and is operating consistent with its risk management framework. The election of both executive and independent non-executive directors is undertaken by GHD shareholders. When appointing new directors, the Board and its Nominations Committee look to ensure that an appropriate balance of skills, experience, expertise and diversity is maintained. 12 | GHD 2015 Sustainability Report
Finance committee
Audit committee
Executive Management Group
obligationsofhelp define – 1. Determination purpose company policies and GHD’s exploration of and approving processes. core purpose, goals and strategy to achieve Governance these goals. framework Provides the model for 2. Governance culture – operating of theculture within a implementation high performance Strategydebate, & Board Policies that celebrates thoughtful whilst recognising the need challenge, commitment, candour for differing operational and trust. This requires responses to suit effective regional relationships within differences. the board, and with management, shareholders and other stakeholders. Management systems
Strategy, culture, values, risk appetite, policies, delegation of authority to EMG
Risk management framework
Business model organisational structure
Governance framework
Compliance systems
Regional management systems
Legislation external auditors
Operating Centres
Board Committees
Regional management
The GHD Board Committees (Audit and Risk) are responsible for assisting the Board in fulfilling its corporate governance responsibilities, including:
GHD operates via a network of four geographical regions, each of which has a dedicated General Manager and supported by a Regional Leadership Team. Each Leadership Team reviews its respective Regional strategy and outlook, budgets and performance.
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Integrity of GHD’s financial reporting
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Compliance with legal and regulatory obligations
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Effectiveness of GHD’s enterprise wide risk management and accountability structures
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Oversight of the independence of external and internal auditors
The CEO is responsible for the dayto-day management of GHD, with all powers, discretions and delegations authorised from time to time by the Board. GHD’s executive management team is the EMG. The group is chaired by the CEO and meets monthly to review the performance of GHD and make decisions that impact the overall operations of the business.
Group governance GHD maintains a suite of policies contained within the GHD Management System which outlines minimum requirements for conducting business and the standards to be upheld by all of our people. Respective corporate teams (e.g. Business Services Finance, HSE, Quality, etc.) provide independent, objective assurance and advisory services on GHD systems of risk management, internal compliance, and control.
Performance highlights
Integrity In alignment with the United Nations’ Global Compact guidelines and other corporate governance initiatives including anti-fraud, GHD continued its journey to heightened levels of integrity compliance in 2015. Our efforts are guided by the GHD Integrity Management System. Quality We have built on last year’s achievements and have been monitoring the progress of against new ISO 9001:2015, which will provide more focus on leadership and risk based thinking. Our North American operations have developed a regional quality system that reflects business requirements in this region. During the year, structured monitoring and reporting of key business performance targets has enabled clear minded decision making. This monitoring and reporting has assisted GHD’s pursuit of continual improvement and provided a platform for a range of business efficiency initiatives. GHD’s Quality Management System was recertified for a further three years by Lloyds Register Quality Assurance (LRQA) to international standard (ISO:9001). Leadership Validating our commitment to Corporate Social Responsibility (CSR), GHD was named one of the top to leaders in CSR in Australia and New Zealand by the Australian Centre for CSR. GHD 2015 Sustainability Report | 13
Managing risk
We understand our risk appetite and manage our business to maximise opportunities by identifying and managing material risks to an acceptable level – in accordance with a risk management framework. Risk management Risk management at GHD has matured. Today, it is embedded within management accountabilities, enabling the integration of risk management into all business activities and decision-making processes. This allows GHD to effectively manage its risks. The General Manager for Operational Support and Risk is responsible for the design, implementation and continuous improvement of the risk management framework. This accountability extends to the development of the GHD risk management culture and the capability of managers and staff to identify, understand and treat risk. As such, the General Manager monitors and reports on the GHD risk profile in addition to providing independent assurance on the effectiveness of key risk management and internal controls in the business to 14 | GHD 2015 Sustainability Report
the CEO, EMG, the Board and its Risk Committee.
objectives, including the risk to health and safety.
In addition, the General Manager Operational Support participates in annual strategy discussions with the Board Risk Committee to discuss and align the continuous improvement plans for the framework with the expectations of the Board.
Relevant corporate teams (e.g. Business Services Finance, HSE, Quality etc.) engage with the OCs to monitor and review the implementation of the risk management framework to identify gaps in the effective management of risk; and opportunities to continuously improve the framework and its implementation.
The GHD Business Risk Management Procedure outlines how risk management supports the practical achievement of business objectives and corporate governance requirements, the minimum requirements for risk management and role responsibilities. GHD’s regional operations or OCs are accountable for implementing the risk management framework and identify and manage risk within the business in the pursuit of their strategic and operational
Results of reviews and audits undertaken (e.g. HSE) upon the implementation of the risk management framework are reported by the General Manager Operational Support to assure the Audit Committee of the effectiveness of the GHD’s management of its material risks.
Performance highlights
Health and safety At GHD, safety is our highest priority and our number one core value. This is underscored by the results of our 2016 people survey, where 94 percent of respondents have recognised that safety is of prime importance. We believe that the ideals and responsibilities of safety are critical to maintaining the integrity of our company and in turn, our people. During the year, GHD’s project risk profile increased, particularly with the commencement of environmental remediation services. Our expansion in this region has provided us with the opportunity to review our Health Safety and Environment (HSE) management strategies to enhance our approach. Our key HSE focus is to positively affect change and prevent the precursors incidents from occurring. To this end, we have been successful in improving our Positive Interactions again in the past 12 months.
While our Total Recordable Incident Rate (TRIR) has increased on the previous year, we continue to maintain rates less than half of industry average. In the past 12 months, we re-launched our 12 GHD SAFEguards and are preparing to release the GHD SMART Behaviours program
throughout the business – to guide the identification and management of desired and undesired behaviours.
We continue to actively involve our leadership team with key safety indicators that have historically proven to have a positive effect on our safety culture and incident frequency rates. Our improved performance in culture and metrics is underpinned by internationally certified HSE management systems. Environment In 2012, GHD undertook profiling of its environmental footprint and identified the highest order environmental impacts affecting our business. The Environmental Stewardship Program includes a mix of ‘active’ and ‘passive’ measures that are aimed at positively affecting GHD’s footprint on the environment.
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Office Environmental Guidelines
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Vehicle emission standards
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Video conferencing in all offices
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Sleep mode on printers
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Secure print function on printers
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Waste separation
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Green procurement
Significant improvement in GHD performance has been identified over the 4-year period including: •
22 percent reduction in electricity consumption
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29 percent reduction in paper
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65 percent reduction in air travel
The merger with CRA and GHA Livigunn provides the opportunity to refresh our approach and target new objectives. Review of the Stewardship Program and also environmental managements systems (against updated 14001) is now underway.
Upon completion of Year 4 of the Environmental Stewardship program, implementation of the following initiatives has established firm foundations for the future and enabled significant performance improvement: •
Green Star rating guidelines for leased properties
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Assisting client sustainability
We create opportunities for our clients to enjoy prosperity and achieve sustainability goals with innovative ideas that embrace our sustainability principles. GHD believes that its most significant contribution to sustainability is through the projects we work on with our clients. The range of work we do and the clients we assist are broad, and aim for outcomes that provide a balance of environmental benefits, community advantages and economic prudence.
The two key elements of our strategy revolve around leveraging our connected global network to put the best people we have on a project – and a client-service led culture – where we focus on partnering with our clients in the long term. With the additional economic challenges encountered on many projects, we are
finding clients are increasingly interested in innovative concepts, which helps to increase their overall sustainability. Also, we have a strong interest in having sustainability concepts integrated into real projects. We believe this is the key next step in sustainability worldwide: to make changes in what we build and do.
Photo courtesy of Bong Bajo
El Dorado Irrigation District’s Flume 41, Kyburz, CA, USA El Dorado Irrigation District’s Flume 41 is a 212 m (697 ft) long portion of the El Dorado Canal, last rebuilt in 1948. GHD’s condition assessment identified Flume 41 and Spillway 23 as high-priority facilities for replacement to reduce water loss. Following a successful design phase, our team provided bid assistance services and has recently completed construction management and administration. 16 | GHD 2015 Sustainability Report
South West Growth Centre Wastewater Servicing Project, Sydney, Australia To address Sydney’s growing population in the south west, Sydney Water engaged GHD (as part of the ENSure panel contract) to assist with wastewater infrastructure for the precincts of East Leppington, Leppington North and Leppington. Our team provided services including wastewater planning, detailed design process and pre-construction planning.
Pililla Rizal Wind Farm, Philippines As the Philippines transitions to a lowcarbon economy, we are helping our clients deliver a variety of renewable energy projects. For Alternergy Wind One Corporation, GHD acted as Owner’s Engineer to help deliver the 54 MW Pililla Wind Farm in the Rizal province near Manila. Now producing power, the newly commissioned plant is providing clean and sustainable energy and boosting the province’s tourism industry.
Iowa Hill Pumped Storage Hydroelectric Facility, CA, USA
Rainfall Intensity & Climate Change Adaptation, Canada
Zealandia Horticulture Industrial Facility, New Zealand
Sacramento Municipal Utility District, the nation’s sixth largest community-owned electric service provider, engaged GHD to complete a geotechnical investigation plan for the development of a 400 MW pumped storage hydroelectric facility. If constructed, Iowa Hill will utilise an existing reservoir on the American River, from which water would be pumped up to a new 7,900,000 m3 (6,400 acre-foot) capacity upper reservoir.
GHD recently completed a study for the Government of Newfoundland and Labrador in Canada. Accurate, up-todate rainfall Intensity-Duration-Frequency (IDF) curves are critical to infrastructure design and adaptation to climate change impacts. The project updated IDF curves in the province and also generated projections of IDF curves for future climate conditions.
One of New Zealand’s largest glasshouse developments is benefiting from GHD’s involvement. Zealandia Horticulture, a leading grower of retail fresh vegetables and seedlings, engaged us to provide the design for the glasshouse’s services automation, for which we delivered heating and security as well as a sustainable mechanical, electrical and plumbing solution.
Endemic Livestock Diseases Report, Australian Red Meat Industries, Australia
Urban Flood Management, Master Plan, Huainan, China
Meat & Livestock Australia commissioned GHD to review the economically damaging endemic livestock diseases and conditions affecting the Australian red meat industry (cattle, sheep and goats). Diseases were identified and prioritised according to their prevalence, distribution, risk factors and mitigation. This report will be used to develop policies and strategies.
In the municipality of Huainan, which is home to almost two million people, GHD is working to improve urban water environments and flood management under the Anhui Huainan Urban Water Systems Integrated Rehabilitation Project. Once completed, the project will provide recommendations for improving drainage, stormwater, sewage, waterlogging and flood controls. GHD 2015 Sustainability Report | 17
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