Sustainability Report
2020
CONTENTS
01. INTRODUCTION Board Statement 1 About the Company 2 About this Report 3
02. SUSTAINABILITY AT SLNG Sustainability Approach 4 Sustainability Governance 5 Stakeholder Engagement 6 Materiality Assessment 7
03. ECONOMIC Facilitate Energy Security 9 Facilitate and Support New Energy Transition 10 Value Creation and Sustainable Growth 11 Customer Experience 11
04. ENVIRONMENTAL Energy 13 Greenhouse Gas Emissions 14 Physical Climate Change Risks 15 Procurement Practices 15
05. SOCIAL Occupational Health and Safety 16 Employment, including Diversity & Equal Opportunity 17 Training and Education / Skills for the Future 20 Union Relations 21 Local Communities 21 Notes 22
SLNG | SUSTAINABILITY REPORT 2020
BOARD STATEMENT
Over the last few decades, Sustainability has been gaining traction globally; with many organisations starting to incorporate it into their business strategies. Changing expectations of society and increasing demands from shareholders and investors are placing pressure on companies, especially those in the energy and transport sectors, to innovate and reduce their carbon footprint. Singapore LNG Corporation (“SLNG”) is well aware of the market developments and the global move towards decarbonisation. As an organisation, we have always placed emphasis on environmental, social and governance (“ESG”) matters. Since 2019, we have embraced Sustainability as an integral part of our organisation’s strategy, and it remains a key focus in our long-term growth plans. We are pleased to present SLNG’s first voluntary Sustainability Report. In the development of this Report, we have assessed the materiality of our identified ESG topics and have committed to fourteen (14) topics across the ESG pillars. The Board oversaw the identification of ESG risks and opportunities and endorsed the Company’s Sustainability vision, framework and material topics. Despite the challenges brought about by the COVID-19 pandemic, SLNG remains committed to safeguarding the health and safety of our stakeholders, including our employees, contractors and customers, while delivering our energy security mandate. As an essential services provider, we have adhered strictly to the government regulations and guidelines, ensuring that split team arrangements were in place to minimise any possible disruption to gas send out operations at the Terminal. Not only were safe-distancing measures and work from home arrangements in place, there was no cross deployment of staff between the corporate office and the Terminal. Furthermore, Management ensured that all employees were well-equipped with the necessary tools and equipment to continue working with minimal disruption. Going forward, we continue to monitor the evolving pandemic situation closely and remain steadfast in our response. While FY 2020 had been a challenging year, SLNG remains committed to our newlyforged Sustainability vision. During the year, we rolled out new initiatives aimed at harnessing green energy opportunities and looked at new ways to improve operational efficiencies and lower carbon emissions. We are also actively collaborating with multiple stakeholders to jointly explore ways to facilitate and accelerate a low-carbon energy transition. Through the formal set up of our Sustainability committee and taskforces, we will continue to drive our Sustainability initiatives and embed Sustainability into our business strategy and practices.
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ABOUT THE COMPANY
SLNG is the owner, developer and operator of Singapore’s and Asia’s first open-access, multi-user LNG terminal. We catalyse the growth of LNG-related businesses in Singapore and are poised to establish the nation as an LNG hub for the region. Our vision is to strengthen Singapore’s energy security by catalysing new possibilities in the energy transition; as we grow and develop our business. We offer an extensive range of services, including tank leasing, storage and reload, LNG bunkering. More than an LNG terminal operator, SLNG is stepping up to be a catalyst for a vibrant, coherent, national-level LNG strategy for Singapore. We strongly advocate for the development of a progressive LNG eco-system with key stakeholders; both in Singapore and beyond. In this regard, we look to explore new and innovative ways of using LNG beyond our Terminal and collaborate with regulatory authorities and industry players to develop new initiatives to grow the LNG eco-system. Going forward, SLNG strives to capture the opportunities offered by low-carbon alternatives, such as utilising hydrogen as a green energy source, and harnessing cold energy to develop an energy-efficient cooling technology for data centres.
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ABOUT THIS REPORT
This Report has been prepared with reference to the Global Reporting Initiative Sustainability Reporting Standards (“GRI Standards”). GRI’s Reporting Principles were applied in guiding the development of our Report’s content. The GRI Standards were chosen because it helps organisations understand their outward impacts on the economy, environment and society, which then in turn helps to increase accountability and enhance transparency on their contributions to sustainable development. The SLNG Sustainability Report 2020 presents detailed information on our Sustainable development performance and management during the period of 1 April 2020 to 31 March 2021 (“FY 2020”). The Report defines SLNG’s targets for each of our material ESG topics and our longer-term commitments. The Scope of our Report covers: 1. SLNG’s Office located at Alexandra Road and 2. SLNG’s Terminal located on Jurong Island. The Terminal currently operates with two jetties, three storage tanks of 180,000m3 each and a fourth storage tank of 260,000m3; one of the largest in the world. The Terminal has a send-out capacity of around 11 million tonnes per annum (Mtpa), and can accommodate a wide range of LNG vessels, from 2,000m3 to 265,000m3 in capacity. Presently, the Terminal supplies about 25% to 30% of Singapore’s total natural gas demand for power generation. All information and data in this Report is disclosed voluntarily and in good faith. We will continue to publish our Sustainability Report annually, which will be accessible via our website. We welcome feedback from our stakeholders as we continuously improve our Sustainability performance and Reporting; and progress in our Sustainability journey. Please contact us at Enquiries@SLNGCorp.com
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SUSTAINABILITY AT SLNG
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Our approach to Sustainability is built upon our considerations for the environment, our social responsibility, and our commitment to our key stakeholders.
SUSTAINABILITY APPROACH Our approach to Sustainability is built upon our considerations for the environment, our social responsibility, and our commitment to our key stakeholders. Our Sustainability Framework references the GRI Framework, with three key pillars (Economic, Environment and Social) supporting our Sustainability vision. In pursuing our Sustainability goals, SLNG lays out a strong foundation of good governance, to ensure that our business practices are conducted ethically and responsibly. In addition, we partner with various stakeholders to build the LNG ecosystem and drive Sustainability in a collaborative manner.
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Figure 1: SLNG’s Sustainability Framework
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SUSTAINABILITY GOVERNANCE Our Board of Directors (“Board”) determines the direction of SLNG’s Sustainability agenda and oversees the integration of Sustainability into our Company’s strategies. The Sustainability Steering Committee (“SSC”) was appointed by the Board to support its efforts in driving Sustainability-related matters. The SSC is led by the Chief Executive Officer (“CEO”) and consists of Senior Management members. The SSC is responsible for implementing SLNG’s Sustainability strategy, managing and monitoring overall Sustainability performance, to ensure that it is in line with our Sustainability targets. The SSC reports SLNG’s Sustainability progress to the Board on a regular basis. As part of our efforts to improve cross-functional representation, the Sustainability Task Force was created to drive organisation-wide Sustainability initiatives in a holistic manner; and to support the SSC. It is composed of representatives from various functions and divisions who may further form specific work groups to develop and implement various initiatives, on a need basis. The rest of our staff also have a part to play in supporting companywide initiatives to reduce SLNG’s environmental footprint and the ongoing monitoring, management and reporting of key Sustainability focus areas for SLNG, to ensure that we achieve our key Sustainability goals.
Figure 2 SLNG’s Sustainability Governance Structure
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STAKEHOLDER ENGAGEMENT We are committed to understanding and safeguarding our stakeholders’ interests. To achieve this, we maintain a transparent, two-way communication with all stakeholders on their concerns and expectations. We listen to and make every effort to address any reasonable concerns they may have. SLNG has identified seven key stakeholder groups, including employees. A summary of how we interact and communicate with our stakeholders is outlined in the table below: Table 1. Stakeholder Engagement in SLNG
Key Stakeholders Shareholder
Employees
Customers
Regulators
Suppliers and Contractors
Union
Communities
Key Issues of Concern Reputational impact in the event of non-delivery by SLNG or major safety issues
Security of employment Competitive remuneration and benefits package Fair and equal treatment Career progression Growth of SLNG
Competitive pricing Efficient delivery of services Ease of doing business Fair and equal treatment
Security of gas supply to Singapore. Reliability and Safety
Safety Fair competition, equal treatment and ethical practices Timely payment
Engagement Methods
Engagement Frequency
Updates via Monthly Management reports Shareholder representative on the Board of Directors In-person or email communications on a need basis
Monthly
Townhall sessions (either in person or virtual) e-newsletters and postings on topical microsites (eg Transformations@SLNG) Staff workshops (either in person or virtual) Focus group discussions Representation on work committees Employee Engagement Surveys or Pulse Surveys HR representative based at Terminal to attend to needs of Terminal-based employee Union representation Communications via email, Yammer, Intranet, mobile app
Quarterly
Account managers as dedicated personnel to liaise with the customers Customer forums and networking events Webinars
Daily
Telephone connection to the Power Supply Operation Division of EMA Meetings with EMA representatives
On a need basis
Project kick off meetings Workplace Health & Safety Committees Toolbox meetings for onsite contractors Permit to work meetings Annual Vendor Evaluation at the end of contract After Action reviews at the end of contract
On a need basis Monthly
Quarterly Board and EXCO meetings and whenever the need arises. Ad-hoc
Monthly
Adhoc Adhoc Adhoc Every 2-3 years (Employee Engagement Surveys) and on a need basis (pulse Surveys)
Quarterly and Adhoc Weekly
Biannual Adhoc
On a need basis
Daily Daily On a need basis On a need basis
Progression, upskilling and employability for Junior Professionals Equity and Fairness
Consultation at least twice a year (either in person or virtual) Email / phone calls
Biannually
Continuity of support from SLNG for their causes
Events Emails / phone calls to keep them updated
On average, 2-3 times a year On a need basis
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On a need basis
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In FY 2020, COVID-19 regulations and restrictions made traditional in-person meetings difficult. However, SLNG continued to engage its stakeholders effectively by leveraging on technology and digital platforms, such as video conferencing, virtual meetings and webinars to connect with them and keep them updated on developments in SLNG.
MATERIALITY ASSESSMENT Our Materiality Assessment process follows three steps as illustrated below, to determine the ESG topics that are deemed material to our business. Our approach to materiality is in line with the GRI Standards for Sustainability Reporting.
Figure 3: SLNG’s Materiality Assessment
In FY 2020, with the help of an external consultant, SLNG conducted a materiality assessment workshop with the SSC and key Sustainability Task Force members to identify potential relevant ESG topics. Based on the level of importance to SLNG’s business and our stakeholders, the ESG topics were prioritised, reviewed and validated by our Senior Management. Subsequently, they were reviewed and approved by the Board. We have identified the following fourteen (14) material factors relevant to SLNG’s business operations and stakeholders. We intend to review these material topics regularly, especially when there are significant changes to the business environment or strategic outlook of the Company.
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Table 2. SLNG's Material Topics
Material ESG Topic
Non-GRI factor
Facilitate and support new energy transition
With SLNG’s infrastructure, we are well-positioned to facilitate the adoption of LNG in the marine and other sectors and facilitate the transition to other more sustainable and lower-carbon fuels. This helps to build a better and cleaner energy future for the people in Singapore and beyond.
Non-GRI factor
Value creation and sustainable growth
SLNG can help position Singapore as a regional LNG trading hub and grow the LNG eco-system in Singapore and beyond. We can leverage on our Terminal infrastructure and expertise to promote and facilitate various businesses including LNG bunkering in Singapore, develop the necessary infrastructure for ancillary services and grow the portfolio of LNG services and product offerings.
Non-GRI factor
Customer experience
We want to work towards a win-win partnership with all our customers, partners, and collaborators. Ensuring a positive customer experience where we meet and support our customers’ evolving needs is one of the keys to strengthening this relationship.
Non-GRI factor
As a corporate citizen concerned with energy security and sustainability, it is important to SLNG to efficiently manage and reduce the use of energy (electricity) and where possible, to produce and use clean energy.
GRI 302: Energy 2016
While meeting the nation’s energy needs, we also seek to reduce our carbon footprint and take into consideration potential Greenhouse Gas emissions when planning future infrastructure.
GRI 305: Emissions 2016
Economic
Energy
Environment
Corresponding TopicSpecific GRI Standards
SLNG owns and operates Singapore’s only LNG Terminal, which is a key infrastructure supporting Singapore’s energy diversification strategy. We have a responsibility to enhance Singapore's energy security by ensuring uninterrupted send-out of natural gas.
Facilitate energy security
Social
Why this is Material to SLNG
GHG Emissions
Physical climate change With SLNG being a critical infrastructure that is key to the continuing risks energy security of Singapore, it is important that we understand and manage the physical climate change risks to the Terminal infrastructure and the Terminal’s operations.
Non-GRI factor
Procurement practices
In supporting the Singapore Green Plan, it is necessary for SLNG to incorporate both environmental and social considerations into SLNG’s procurement with the aim to reduce our impact.
GRI 308: Supplier Environmental Assessment 2016 GRI 414: Supplier Social Assessment 2016
Occupational health and safety
Ensuring the safety of our employees, customers, contractors, and terminal users is our priority.
GRI 403: Occupational Health and Safety 2018
Employment, including Diversity & Equal Opportunity
Employees are our greatest asset at SLNG. As part of our efforts to create a positive and inclusive culture, we focus on providing equal opportunities to our employees. We recognise that by encouraging diversity, a positive work environment will be created, strengthening our employees’ commitment to the organisation and ensuring continuity of our business. This also ensures that we would be able to attract and retain the right talent to grow SLNG.
GRI 401: Employment 2016 GRI 405: Diversity and Equal Opportunity 2016
Training and Education/ To deliver on SLNG’s energy security mandate and its 5 year strategic plan, SLNG needs to train and build up the capability of its employees to Skills for the future ensure that they are well-equipped for their current and future roles, and are able to fulfil their potential and meet their personal development goals.
GRI 404: Training and Education 2016
Union Relations
The Union is the bridge between the Management, employees, and our partners, and helps to strengthen employer-employee relations.
Non-GRI factor
Local Communities
SLNG hopes to create social value with the communities or sectors that our employees have selected, such as the marginalized (children, youths, families). Other interests include meeting educational needs of the less privileged and preserving the environment.
GRI 413: Local Communities 2016
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ECONOMIC
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As we embark on our next phase of growth and development, we strive towards catalysing new possibilities in the energy transition.
SLNG plays a vital role as a driver and catalyst for the growth of LNGrelated businesses in Singapore and establishing the nation as a regional LNG hub. The economic sustainability of our business is crucial to drive a more secure energy future for Singapore. As we embark on our next phase of growth and development, we strive towards catalysing new possibilities in the energy transition.
FACILITATE ENERGY SECURITY [Non-GRI factor]
As the owner and operator of Singapore’s only LNG Terminal, SLNG is constantly looking at sustainable approaches to ensure that we not only continue to meet our energy security mandate, we exceed it. Hence, facilitating energy security is a crucial aspect of our business. We have a strict operating and maintenance regime in place to ensure that we adhere to the Energy Market Authority (“EMA”) Performance Standards. Any issues related to operations of gas send-out are resolved expeditiously. Openness and a Learning culture encourages the team to continually assess our existing operations and review issues as soon as they occur. Furthermore, we have put in place numerous systems to monitor procedures and ensure compliance: 1. Incident Management System: Staff who encounter any near miss incident which may potentially affect safety, gas supply and customers are required to raise the incident in the J5 incident reporting system. 2. Operations Abnormality Report (“OAR”) procedure: Staff who encounter any abnormal operation which may potentially affect gas supply and customers, are required to raise an OAR. 3. Management of Change procedure: Controls the modifications process from initiation to close-out so as to prevent undesirable or unexpected consequences resulting from any reliability improvements performed to the Terminal processes. The procedure ensures that all modifications are assessed, reviewed, controlled and documented in a consistent manner. 4. Plans & Procedures Review process: Ensures that all production and maintenance procedures, including important documents like Terminal Gas Send-Out Operating Philosophy are constantly reviewed to ensure compliance, effectiveness and efficiency. 5. Permit to Work system: Requires all works to be thoroughly reviewed, assessed and approved for safety and send-out related risks before works can proceed.
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In FY 2020, we conducted a critical equipment spares review and automated the reordering system alert, to ensure that critical equipment spares are stocked sufficiently as inventory and are available at all times. To ensure that our Operations personnel are skilled for their respective functions, we also embarked on a Training and Qualification Programme for our Production and Maintenance technicians and supervisors, to assess and close any competency gaps.
Case Study - Eliminating Gas Supply Interruptions In FY 2019 and FY 2020, we performed a Single Point Failure (SPF) study for the entire Terminal to eliminate gas supply interruptions that could be caused by the tripping of any gas supply equipment. More specifically, the SPF 3.0 study was conducted to identify vulnerabilities in the Terminal equipment that may impact gas supply. It was a comprehensive study aimed identifying potential failure at a component level. Through the study, we were able to identify effective and efficient recommendations for implementation; allowing us to maintain a high reliability of gas supply and ensured that we met our adherence to the EMA Performance Standards. The SPF 3.0 study was a cross-functional effort with representation from various subject matter experts such as mechanical, instrument, controls, electrical and process disciplines.
With the COVID-19 pandemic, there were concerns about the availability of LNG and whether Singapore had sufficient reserves in the event of any disruption of supply SLNG was prompt in its response and carried out cargo planning for more than 100 LNG cargoes; ensuring adequate inventory levels in our LNG Tanks. During this difficult period, the Company also faced a resource crunch as contractors were not allowed to travel to our Jurong Island Terminal for work. Our staff adapted swiftly to prioritise and perform the needed maintenance works in-house, ensuring smooth operations of the Terminal. In FY 2020, we reported one incident that breached the EMA Performance Standards, where three Booster Pumps tripped due to low suction pressure. We conducted a thorough investigation to identify the root cause, which uncovered multiple causes including human error that could have contributed to the incident. Subsequently, both corrective and preventive measures to address the gaps were implemented. Future Targets Moving forward, with our policies and systems in place, we aim to achieve zero process safety incidents for FY 2021. We will also complete the Human Factor Gap Analysis in the coming year while striving to continuously meet the EMA Performance Standards.
FACILITATE AND SUPPORT NEW ENERGY TRANSITION [Non-GRI factor]
With SLNG’s LNG infrastructure, we are well-positioned to facilitate the adoption of LNG across industries, such as in the marine sector, as well as support the transition to more sustainable fuel sources; to help build a better and cleaner energy future. We have implemented the following initiatives to catalyse the new energy transition: 1. Develop a greater infrastructure eco-system for the adoption of LNG as a cleaner and lower carbon emission marine fuel source. This includes studying: a. Direct Port-to-Ship pipeline bunkering solutions to enhance availability and support the growth of container ship LNG bunkering in Singapore. b. Additional LNG pipeline connectivity to alternate Jurong Island jetties, to optimise the availability and reliability of reloading to LNG Bunkering Vessels. c. Direct Shore-to-Ship pipeline bunkering solution to berthing vessels and tankers at other Jurong Island jetties.
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2. Developing SLNG’s New Fuels Long Term Strategy. For this, we signed a Memorandum of Understanding with NUS, NTU, Chiyoda, Mitsubishi, PSA, Jurong Port, City Gas, and Sembcorp to jointly develop a feasibility study of liquid organic hydrogen carrier technology for the transportation, storage, and distribution of hydrogen. This study is supported by grants from the National Research Foundation and the Japanese Government. We are also assessing other hydrogen technologies and new fuels, like Ammonia, as part of SLNG’s longer term plan to transition into low carbon fuels. 3. Implementation of Green Energy and LNG Cold Recovery Initiatives. This includes the successful installation of Solar PV panels with a peak capacity of 593 kW on the rooftops of the Terminal’s carpark shelters, admin and maintenance buildings, in Dec 2020. In addition, we are assessing the possible deployment of more Solar PV panels at the Terminal’s plant and jetty areas, as well as a hydro-turbine generator within the seawater channel. In the coming year, we are looking into cold energy recovery and applying it to various applications, such as cold storage facilities, cooling of data centres and Cryo-power Generation. In line with our goal of building a better and cleaner energy future for Singapore, we are commencing studies to study various cold energy recovery concepts and applications, additional renewable energy installations, as well as the adoption of new fuels (i.e. H2, NH3) in the longer-term, with a view to implement once commercial and technical viability are achieved.
VALUE CREATION AND SUSTAINABLE GROWTH [Non-GRI factor]
SLNG can help position Singapore as an LNG trading hub for the region and grow the LNG ecosystem in Singapore and beyond. We can leverage our Terminal infrastructure and expertise by growing the portfolio of LNG services and product offerings to promote and facilitate various businesses including Storage & Reload and LNG bunkering in Singapore and further develop the necessary infrastructure as required. In FY 2020, we embarked on the development process for future tanks and established partnerships with Operations & Maintenance (O&M) and Engineering companies to facilitate opportunities for business regionalisation.
CUSTOMER EXPERIENCE [Non-GRI factor]
Customers are our partners and collaborators; hence we strive for win-win partnerships with them. Ensuring a positive customer experience by meeting and supporting our customers’ needs is one of the keys to strengthening this relationship. To enhance the experience for our customers, we seek to regularly strengthen our engagements with our stakeholders and customers and adopt industry best practices to improve our operations and service delivery. Due to the challenges brought about by the COVID-19 pandemic, the annual stakeholder engagement survey was not conducted in FY 2020. In FY 2021, we will carry out stakeholder engagement interviews through a third-party to gather feedback and insights on how we can improve our product offerings, services and overall customer experience. It is hoped that through such engagements, we will be giving greater focus to vulnerable areas or blind spots and more specifically, proactively address gaps, develop more innovative product offerings, and build strong and trusting relationships with our customers. We also aim to identify optimisation opportunities to promptly meet customer demand and establish periodic internal audits on customer-focused operations and service providers engaged by SLNG. We reviewed and optimised the availability of our Truck Loading Bay, Boil-off Gas Compressor, and Jetties, to provide a faster maintenance turnaround, so as to minimise the impact on customers. We also provided flexible and timely support for customers to perform Storage & Reload services and truck loading operations via a structured approach. We have also made use of technology to enhance our customer experience. One specific area was the improvement in marine operational efficiency through the digitalisation of communication platforms where a digital Marine Log Book is used to track jetty activities through a single platform and in real-time. Additionally, we have also streamlined the ship-shore compatibility studies, vessel assurance screenings and approvals. We then publish the ship compatible list on our company website to provide quick information access to ship operators and customers. From FY 2021, we will go fully digital and collect feedback electronically.
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In FY2020, the following initiatives were implemented to enhance customer experience: 1. Introduced Vessel Compatibility Assurance Screening and Approval; a digitalised application for vessel compatibility, assurance screening, and approval processes. (see below case study for more details) 2. Implemented a Customer Relationship Management system, and improved customer order management process efficiency by more than 20% through automation of billing processes for Storage & Reload and other ancillary services. 3. Closely tracked ship captains’ experience levels and feedback for all vessels using the SLNG Terminal, including feedback on safety, security, reliability, and efficiency. 4. Conducted compatibility process surveys with ship operators. 5. Introduced and implemented the eCOQQ (Certificate of Quality and Quantity) documentation process. 6. Constructed a temporary shelter at the Truck Loading Bay to make truck loading operations available during lightning alerts. 7. Performed study to minimise truck loading planned maintenance downtime; aimed at improving flow meter calibration 8. Streamlined order-to-cash process for LNG trucking
Case Study - Improving Vessel Compatibility Processes We introduced Vessel Compatibility Assurance Screening and Approval (VCASA), which is a digitalised application for vessel compatibility, assurance screening, and approval processes. It brought about greater efficiency in the approval process, data capturing, and provided a single platform for SLNG and customers to request, track, update, and view any vessel’s compatibility approval status. Ships visiting SLNG’s Terminal for the first time, or after three years since last approval must undergo the Ship-Shore Compatibility Study (SSCS), which is needed to assess the technical acceptance of the ships with our jetties. Previously, ship operators had to manually fill the SSCS forms and email them to the Marine Operations team for review and approval; and follow up with the team for clarifications. The VCASA project was launched in March 2021 to streamline this process. With the VCASA web application, ship operators can now fill up the request forms and submit the required documents and ship information via the portal, and the Marine Operations team can review the applications, communicate with the applicants, and approve ship compatibility directly in the portal. There is also a dashboard where the Marine Operations team and ship operators can easily monitor and track the VCASA requests and approvals, document expiry dates, ship information, and portfolios of ship owners for better visibility and analytics purposes. The VCASA web application has improved the efficiency of the ship vetting application process. This automation has helped to reduce human error, and improve communications between the ship operators and SLNG. Not only has it created better value for our customers, it has also saved an estimated $26,000 worth of man-hours annually.
Future Targets As a result of our initiatives, we had zero instances where jetty and truck loading operations were unavailable in FY2020. Going forward, we aim for At least a one-point improvement in the Stakeholder Engagement Survey in FY2021 as compared to the Stakeholder Engagement Survey done in 2019; Zero service unavailability by FY2023, and Zero customer complaints by FY2024.
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ENVIRONMENTAL
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We are committed to doing our part to tackle climate change... by exploring & supporting the adoption of lower-carbon, more sustainable alternative sources of energy. Environmental sustainability has been the key driver for our carbon reduction journey. We are committed to doing our part to tackle climate change. Thus, as we help catalyse the new energy transition, we are also exploring and supporting the adoption of lower-carbon, more sustainable alternative sources of energy. In FY 2021, we are looking to develop and implement a holistic Carbon Strategy to eventually achieve carbon neutrality for our Terminal operations.
ENERGY [GRI 302: Energy 2016]
Energy is important to SLNG as it is critical to powering our Terminal operations. While energy-intensive equipment result in higher utility costs, at the same time, business operations would be disrupted without them. It is therefore important to manage our electricity and energy consumption, and to produce and use clean energy where possible. We have an Energy Efficiency Team which carries out energy efficiency opportunity assessments and ensures effective implementation of initiatives for improving the Terminal’s energy performance. The team monitors the Terminal’s total energy consumption and the specific consumption of certain high energy consuming equipment (e.g. in-tank pumps, booster pumps, seawater pumps, boil-off gas compressors etc.). The team also analyses the effectiveness of energy efficiency opportunities after implementation, by measuring and verifying the reduction of carbon emissions that result from it.
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We report our energy usage and greenhouse gas emissions to the National Environment Agency on an annual basis [1] . The table below shows SLNG’s energy consumption[2] for FY 2020 [3]: Table 3: SLNG's Energy Consumption for FY 2020
[4]
[5]
SLNG is also committed to using and producing more clean energy. On top of the clean energy projects we currently have, we are exploring the feasibility of installing more solar panels around the Terminal and utilising the inherent cold energy of LNG to produce clean energy or reduce electricity consumption of the Terminal.
Case Study - Harnessing Solar Power Solar panels were installed on the rooftops of the Administration and Maintenance Buildings, and the carpark shelters at the SLNG Terminal. The project, which started on 7 Aug 2020 and was completed on 29 Dec 2020, provided a solar power system with a capacity of 593 kWp. This solar power is currently supplying electricity used for lighting and general electrical consumption of the Terminal.
GREENHOUSE GAS EMISSIONS [GRI 305: Emissions 2016]
Greenhouse Gas (GHG) Emission levels are important to SLNG as we strive to reduce our carbon footprint while meeting the Nation’s energy needs. As such, we take potential GHG emissions into consideration when planning future infrastructure. SLNG’s GHG emissions [6] for FY 2020 [7] are computed in the table below:
Table 4: SLNG's GHG Emissions for FY 2020
[8]
[9]
We have developed a 5-year roadmap, endorsed by our Board in March 2021 to lay out the steps to be taken to achieve our targets; and setting yearly energy targets to achieve this objective by FY 2025. The 5-year roadmap lays out the opportunities and initiatives to reduce both direct and indirect emissions of the Terminal and the year of implementation for each measure. The roadmap will be executed and tracked by the Energy Efficiency Team. Some of the measures lined up include:
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a) Installing Solar PV Panels at the terminal to provide clean energy, b) Extending the Air Dryers’ operating cycle to reduce power consumption for regeneration, c) Embarking on a hydro power feasibility study, d) Reducing Boil off Gas generation by reducing LNG circulation to Open Rack Vapourisers to maintain coldness in the system, e) Implementing a higher energy efficiency lighting replacement programme, f) Participating in the Energy Efficiency Opportunity Assessment, g) Launching an Energy Campaign to create awareness and generate ideas for energy efficiency; and h) Digitalising our energy management system to automate the collection and reporting of data to authorities and develop a dashboard to identify energy inefficiencies. Future Targets In FY 2021, a more concerted effort will be made to identify opportunities to reduce SLNG’s carbon footprint by reducing consumption, waste and implementing 3R (Reduce, Recycle and Reuse) initiatives; at the Corporate Office and the SLNG Terminal. Going forward, our target is to materially reduce our Carbon emissions by 30% by 2030 as compared to a base-case growth scenario from an equivalent 2019 carbon emissions level.
PHYSICAL CLIMATE CHANGE RISKS [Non-GRI factor]
The SLNG Terminal is a critical infrastructure to ensuring and continuing Singapore’s energy security. It is important that SLNG understands and manages the physical climate change risks that the Terminal’s infrastructure and operations are exposed to. Future Targets Moving forward, we will be conducting a physical climate change risk assessment of the Terminal in FY 2021. We will then determine detailed targets based on the assessment and the corresponding action plans.
PROCUREMENT PRACTICES [GRI 308: Supplier Environmental Assessment 2016; GRI 414: Supplier Social Assessment 2016] In support of the Singapore Green Plan 2030, SLNG aims to incorporate both environmental and social considerations into procurement with the purpose of reducing our environmental and social impact and managing ESG- related risks, hence adopting Sustainable procurement practices are important to us. Currently, we use the Management of Change and Procurement Evaluation Matrix to incorporate energy efficiency criteria as required by NEA. We also evaluate our vendor’s safety records before registering any vendor into our system and commencing any labour work at Terminal. Future Targets SLNG aims to formalise both environmental and social considerations into our procurement policies by FY 2021.
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SOCIAL
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People development and training are important to us as we look to nurture future talents & ensure business continuity.
People are SLNG’s key asset. Not only are we committed to safeguarding the health, safety and wellbeing of our employees, we also value creating a working environment that is diverse and inclusive. Additionally, people development and training are important to us as we look to nurture future talents and ensure business continuity.
OCCUPATIONAL HEALTH AND SAFETY [GRI 403: Occupational Health and Safety 2018]
At SLNG, we are committed to ensuring the health and safety of our employees, customers, contractors and terminal users. We do so by implementing world-class health and safety standards and practices, wherever possible. We have various occupational health and safety policies, safe work practices and procedures in place to protect all employees against possible occupational risks and prevent accidents from happening in the workplace. We hold monthly workplace safety and health committee meetings and safety inspections with representation from staff and in-house contractors. During these meetings, we will disseminate information on any new policies, and guidelines. After the meetings, to reiterate the discussion points, the minutes of meetings are distributed to all staff and in-house contractors. We carry out monthly safety inspections and regular audits to ensure that SLNG meets the relevant safety requirements. We conduct regular fire drills and also provide our employees with occupational first aid and AED training s as part of equipping them to readily respond to emergencies and life-threatening situations. Should an incident occur, it will be thoroughly investigated, with root cause analyses and preventive action plans developed by trained and qualified staff. We also encourage all our employees to report all incidents especially near misses and incidents for the prevention of similar incidents, and for knowledge retention. The information is recorded in the incident management system which is accessible to all SLNG employees.
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In FY 2020, SLNG was certified to the ISO 45001 standards for Occupational Health and Safety management system standards, which replaced the OHSAS 18001 standards to which SLNG was also certified. We also attained our certification in SS651:2019 Safety and Health Management System for the Chemical industry. As per the Ministry of Manpower’s Safety Case Technical Guide, we also conducted a human factors gap analysis to account for risk factors that can prevent incidents and mitigate consequences arising from human factors. We also identified and addressed potential gas leaks (including fugitive emissions) to prevent loss of containment, by implementing a six-monthly inspection programme. During the COVID-19 pandemic, SLNG not only adhered closely to the Singapore Government’s guidelines and advisories, such as implementing safe distancing measures, temperature screening and split team arrangements, we went beyond that to further ensure the safety of our staff, such as arranging dedicated “door-to-door” transport for Terminal-based employees. We also increased the frequency and thoroughness of cleaning and disinfection at the Terminal and HQ, and provided our employees with hand sanitizers and masks, care packages, and support packages to help staff be more comfortable when working from home. In FY 2020, SLNG had zero workplace fatalities, recordable workplace injuries, work-related ill health fatalities and recordable work-related ill health incidents. Future Targets On the occupational health and safety front, SLNG aims to meet the following targets: ·Continue to achieve zero workplace fatalities, recordable workplace injuries, work-related ill health fatalities and recordable work-related ill health incidents; and comply with all regulations.
EMPLOYMENT - DIVERSITY & EQUAL OPPORTUNITY [GRI 401: Employment 2016; GRI 405: Diversity and Equal Opportunity 2016]
As part of our efforts to create a positive and inclusive work culture at SLNG, we have always focused on providing equal opportunities within our diverse pool of employees, which has in turn helped to strengthen our employees’ commitment to the organisation. A positive and inclusive culture will also help us to attract and retain the right talent for SLNG’s business continuity. Our employment practices support the United Nations Sustainability Development Goals (“UN SDGs”) of Goal 3: Good Health and Well-being, Goal 5: Gender Equality and Goal 8: Decent Work and Economic Growth. We support a positive work environment by creating career development opportunities for our employees, cultivating a strong team culture underpinned by core values of Forward-looking, Courageous, Collaborative, Energising, Engaging and Enterprising. We implemented various schemes such as cross-training and interdepartment transfers to support our employees’ development. We also have an open appraisal system for employees to set goals and receive feedback, as well as annual Individual Development conversations to align and assess employees’ growth and development. During this exercise, targets, plans and performance are discussed and documented to recognise and chart the progress of each individual. The Human Resources (“HR”) team provides employees a variety of platforms to clarify policies, raise concerns to Management, and initiate discussions on areas for improvement. In FY 2020, we embarked on a phased approach, an Executive Coaching program for our Senior Management Team members to strengthen our leadership capabilities. Our remuneration policy for full-time employees is competitive and includes a wide variety of staff benefits such as medical and flexible benefits, insurance, and leave schemes. All our remuneration and benefits are benchmarked against relevant market reports and compensation surveys. Salary and any variable benefits are reviewed and approved by Management periodically to ensure fair rewards, while benefits policies are reviewed periodically to ensure relevance. When employees leave SLNG, exit interviews are conducted to understand their reasons for leaving, and follow-ups are scheduled if necessary. We continuously collect feedback from our employees and benchmark it against industry practice and government initiatives, so as to improve our staff policies and initiatives.
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Tables 5 and 6 show the new employee hires and employee turnover data respectively for FY 2020 respectively. Table 5. New Employee Hires in FY2020
Table 6. Employee Turnover in FY2020
SLNG is signatory to the Employer’s Pledge of Fair Employment Practices. We recruit and select employees on the basis of merit (such as skills, experience or ability to perform the job), and regardless of age, race, gender, religion, marital status and family responsibilities, or disability. We treat employees fairly and with respect and provide employees with fair opportunity to be considered for training and development based on their strengths and needs to help them achieve their full potential. We also support seniors in re-joining the workforce and have extend re-employment opportunities to eligible staff. To date, SLNG has re-employed three employees who are age 62 years and above. The table 7 and 8 - 10 below show the diversity within the Board of Directors and employees.
Table 7. Diversity within SLNG’s Governance Body (Board of Directors)
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Table 8. Diversity within SLNG's Employees (For all Employment Contracts and Employment Types)
Table 9. Diversity within SLNG's employees - Percentage of Employees per Employee Category by Gender
Table 10. Diversity within SLNG's employees - Percentage of Employees per Category by Age Group
In FY 2020, we carried out an organisational-level structural review for each business group, to understand the skills and knowledge that are required to support our 5-year strategic plan. We established profiles for all management and junior professional positions as well as employees, to be assessed on skills, competency, and knowledge. We also concluded the review of rewards and recognition programme to drive a high-performance culture. We embarked on the organisation’s first-ever talent development programme for identified high potential employees who can succeed into future leadership roles. From 2020 to date, we grew our headcount from 137 to 160, and we are planning to expand our headcount further to 170. Other than recruiting externally, we aspire to grow our Next Generation Leaders from within, anchored on the broader purpose of fulfilling our people’s career aspirations and equipping them with subject matter knowledge to catalyse new possibilities in the Energy Transition. We continued our Values-in-Action programme and appointed Make-it-Possible change agents to communicate and embed SLNG’s core values. Company-wide talks on what it means to be an SLNG ambassador were also carried out. COVID-19 greatly disrupted the way we work, but we remained steadfast in our response to the constantly evolving situation, implementing safeguards promptly to ensure the health and safety of our employees. We operated according to the guidelines laid down for essential services, maintained split team arrangements and ensured that there was no cross deployment of staff. Those who could work from home did so and to further help our employees equip their home office, each employee received a COVID-19 support package of either $500 or $800. During this challenging period, we closely monitored our staff’s wellness and conducted pulse surveys to understand their wellbeing and potential stressors. We also distributed care packs which included fruit baskets, masks, and vouchers to buy sports equipment. As part of extending care to employees, virtual sessions teaching staff the importance of mental wellness, self- massage and mindfulness techniques were held. We also roped in an external agency to offer counselling services to staff who needed help with handling stress during these difficult times. We also introduced family-related benefits such as Zoo passes, in place of family-oriented activities that were regularly organised preCOVID.
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Future Targets In FY 2021 and onward, we will launch the Company’s 4th employee engagement survey and the results will be used to develop a corresponding action plan. We will also conduct a review of benefits and enhance the Employee Value Proposition. We will also continue to offer employment opportunities beyond the legislated retirement age. With all the staff welfare and development initiatives in place, , we aim to achieve the following: • To improve our Sustainable Employee Engagement Index at least 3% to 5% points previous Employee Engagement Score as a stretch target [10] • To have 30% of our employees moved up once in the career ladder and/or job rotation between 2021 and 2025; and • For our junior professionals to achieve improvement in at least two competencies.
TRAINING & EDUCATION / SKILLS FOR THE FUTURE [GRI 404: Training and Education 2016]
To deliver on SLNG’s energy security mandate and its 5- year strategic plan, building up the capabilities of our employees for current and future roles is key. Adopting a structured competency-based training approach will further ensure that our staff are armed with the right knowledge and skill sets to take on future roles; securing their employability. We implemented the Learning and Development Policy to facilitate the training and knowledge transfer process for our employees. Additionally, the Learning Request Procedure is in place to ensure that our employees’ learning needs are managed and reviewed. We are also currently in the process of reviewing these policies and procedures to incorporate changes in the new Success Factors Learning Management System. A formal talent development programme has been established for all our employees. This programme saw active participation from Senior Management Team, Reporting Managers, and employees themselves; highlighting the eagerness to support and upskill one another. Additionally, an annual review of SLNG’s talent and skills inventory was conducted against future capabilities needed, to develop an up-skilling plan that would address any current gaps in our employees’ skill sets. An assessment of the learning needs is also conducted annually to ensure that SLNG is keeping up with business needs and market developments. This forward-looking stance maintains SLNG’s competitiveness and ensures that the organisation is future ready. We will continue to use Individual Development Plans to engage in annual career and development conversations with our employees. This open dialogue helps us to understand our employees’ career interests and goals and is an opportunity for us to provide timely guidance and support. Every year, we aim to develop new learning programmes and training opportunities for our employees. These programmes address the behavioural competency gaps and meet their developmental needs. For both the Production and Maintenance teams, we have established a training curriculum and assessment plan that is in line with our internal competency matrix framework. In FY 2020, all employees clocked at least 40 training hours (average training hours per employee is 97.4 hours hours) and every one used the Individual Development Plan to map out their developmental plans and carry out career conversations with their Reporting Managers. The Senior Management Team (SMT) coaching program was implemented, and the key talent leadership assessment and development programme was established as well. As our employees’ learning and development form one of our top priorities, we are committed to investing in the training of our people. In FY 2020, the total training expenditure for our employees are as follows: Table 11. Average expenditure per employee in FY 2020 by Category
[11]
Future Targets In FY2021, we aim for each employee to clock at least 30 hours of training, and have all employees review and update their Individual Development Plan. Furthermore, we pledge to set aside 3% of our total payroll for the learning and development of our employees. Additionally, we are working towards ensuring that 50% of leadership positions have a ready pipeline of talents by 2025. Pipelines for leadership positions are tracked through the Annual SLNG Talent Review session with SMT. During this session, succession pipelines are discussed and development plans for identified talents are put in place and monitored on a regular basis.
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UNION RELATIONS [Non-GRI Factor]
At SLNG, we view the Union as a vital partner, as they are the bridge between the Management and the employees. By establishing strong union relations, the employeremployee relations can in turn be strengthened. The strong management-union relationship is evident in the timely conclusion of SLNG’s Collective Agreements. The conclusion has never been escalated for mediation by external parties and has been concluded bi-parte including frequent consultation with the union representation on the ground. We have recently concluded the Agreement, which came into effect on 1 April 2021, for a period of three years. In FY2020, SLNG partnered UPAGE through an inaugural Company Training Committee set-up, with the aim to identify the skills and training that employees need to support SLNG’s strategic vision and direction, and to keep up with industry transformation.
LOCAL COMMUNITIES [GRI 413: Local Communities 2016]
We are committed to understanding and supporting the needs of our local communities and strive to create social value within sectors that our employees have chosen to partner with. We have been reaching out to marginalised children, youths and families with the aim to meet their needs. We constantly keep a look out for Volunteer Organisations that are aligned with our objectives and can offer potential volunteer opportunities for our employees. Since 2014, we have been partnering with Life Community Services Society (LCSS) - a social organisation that seeks to empower children from low-income and vulnerable backgrounds through early intervention care and mentoring. They have been rolling out programmes to help children build a strong foundation in their growing years, to achieve their fullest potential despite their circumstances. Our collaboration with LCSS have included regular annual donations in support of their activities, organised outings for the children, and staff sponsorship of lunar new year care packages. Education has always been high on SLNG’s agenda and annually, we have been supporting the UPAGE bursary awards. In FY 2020, we joined hands with NTU to create the SLNG Catalyst award to confer two awards to the deserving NTU students in the International Trading Programme. Despite the challenges brought about by COVID-19, we are glad that we have been able to extend our outreach efforts to support environmental causes – an area in which we will expand our involvement- more details can be found below:
Case Study -Greening Jurong Island On 26 October 2020, SLNG joined our Jurong Island neighbours to take part in the tree planting event organised by JTC, where a total of 100 trees were planted. This is part of the one million tree movement where one million trees will be planted in Singapore over the next 10 years. By 2022, a total of 170,000 trees will be planted on Jurong Island. SLNG is glad to be able to play a part in greening up the industrial belt but also help to cool down the western part of Singapore which is one of the warmest areas in Singapore. SLNG contributed a total of $15,000 towards this Greening Jurong Island Initiative, of which over $3,000 was contributed by staff.
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SLNG is a member of the Jurong Island Circular Economy (JICE) Council that was initiated by JTC Corporation (“JTC”). As part of this initiative, companies come together to share data on waste, water and energy on Jurong Island, while exploring collective synergies to improve the environment. Additionally, SLNG participates in the Tembusu cluster Health Safety and Environment committee, which comprises neighbouring companies in the Tembusu area on Jurong Island. The committee meets every quarter and seeks to engage the community in raising awareness for workplace health and safety. In this regard, SLNG is actively involved in maintaining the health and safety of the community we operate in. Future Targets As we deeply value community service and contributing to society, in FY 2021, we will allow all employees to take the equivalent of a day off work to engage in volunteer work. We also aim to have all of our employees volunteering in a volunteer organisation by FY 2023. Employees can apply for volunteer leave via the Company's leave system. We will also be organising large-scale volunteer activities to encourage greater participation from our employees. Since the start of our operations, we regularly engaged with stakeholders to deepen our understanding on the needs of the local communities, in order to serve them better. In FY 2021, we will develop a more holistic stakeholder engagement plan to maximise the positive impact among the local communities that we serve.
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NOTES [1] Under the Carbon Pricing Act and the Energy Conservation Act, SLNG is required to submit energy usage and greenhouse gas emissions information to NEA annually. [2] Energy consumption is calculated using a conversion factor of 1kWh to 3.6×10-6 Terajoule [TJ] [3] To note that the energy consumption are computed on a financial year basis (from 1st April 2020 to 31st March 2021) [4] The renewable energy is generated on site in SLNG Terminal [5]Total electricity purchased and solar PV energy is the summation of electricity consumption from SLNG's electricity and solar PV supplier's invoices respectively. [6] Emissions are rounded for Reporting purposes [7]To note that the greenhouse gas emissions are computed on a financial year basis (from 1st April 2020 to 31st March 2021) [8] Intergovernmental Panel on Climate Change (IPCC) factors were used in the calculation of Scope 1 emissions [9] Grid emission factor (0.4085 kg CO2/kWh), published by the Energy Market Authority for 2019 was used in the calculation of Scope 2 emissions. [10] This is only applicable for employees who have been in the organization from FY 2021 to FY 2025. [11]In FY 2020, our male employees spent more hours than females on training as the trainings were largely tailored for Operations; a large group of our male employees attended programs such as INSTEP Train-the-trainer, Root Cause Analysis, Internal Auditor, Confined Space, Fire & Hazmat, amongst others.
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Singapore LNG Corporation Pte Ltd 991G Alexandra Road, #03-29C Singapore 119975 Tel: +65 6376 7856 Fax: +65 6273 7807 Email: Enquiries@SLNGCorp.com
SLNG | SUSTAINABILITY REPORT 2020
