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DP World AustraliaSustainability Report 2013

Contents

Managing Director and CEO’s Message 1

About DP World Australia 2

Scope of Report 2

DP World Australia Environmental Snapshot 3

DP World Australia Safety Snapshot 4

Our S&E Strategy 5

1. Robust Systems 6

2. Effective Risk Management 8

3. Effective Leadership 11

4. Capable Culture 12

DP World Safety and Environment Team 13

DP World Australia Sustainability Report 2013 Compiled by: Kristen Street – National Sustainability Manager Authorised by: Paul Scurrah – Managing Director and CEO Issued: March 2014

DP World Australia Sustainability Report 2013 /. 1

Managing Director and CEO’s Message

Welcome to the 2013 DP World Australia Sustainability Report.

The purpose of the Sustainability Report is to provide stakeholders with a thorough and transparent account of DP World Australia’s safety, health and environmental activities and initiatives implemented in 2013.

2013 was the second year of our three-year safety and environment strategic plan. This strategy is based on a triple-bottom-line approach that seeks to provide positive social, environmental and !nancial results. In working towards our vision we continued to focus on four key strategic pillars including; robust systems, effective risk management, effective leadership and capable culture.

While acknowledging the effort still required in achieving our vision, I am proud to report that this year we have continued to deliver on our commitment to working towards our goal of zero harm to people and the environment. These efforts are re"ected in the achievement of positive safety and environmental results.

In line with set objectives and targets, this year’s report is based on a 2008 baseline. DP World Australia’s safety performance has improved with reductions in the lost time injury frequency rate by 44% and all injury frequency rate by 50%. Environmentally, DP World Australia has also reduced its greenhouse gas emissions per TEU by 13% based on a 2008 baseline.

In addition to these results we have continued to implement some key safety and environmental initiatives including S&E leadership interactions, regional integrated management system certi!cation, National S&E week, S&E portal and monthly reporting upgrade, a focus on controls that address the source of the risk and our fatal risk standards.

The results achieved in 2013 are a re"ection of the dedication and commitment of our people across all levels within our business to improving safety and environmental performance.

Our safety performance will always be our highest priority and our biggest challenge. In 2014 we will be relentless in pursuing an extremely safe work environment to ensure all DP World Australia employees leave for home at the end of their shift as healthy and !t as they arrived.

We will also continue to strive to reduce our impact on the environment through the implementation of environmental initiatives targeting energy ef!ciency, water and waste reduction.

Paul Scurrah DP World Australia Managing Director and CEO

2 /. DP World Australia Sustainability Report 2013

About DP World Australia

DP World Australia is a large international marine container terminal operator with four marine terminals located across Australia, a head of!ce based in Sydney and approximately 2,000 employees. The predominant business activity within the region is the management of container cargo operations.

Each terminal operates 24 hours a day, 364 days per year and involves the use of mobile equipment including quay cranes, rubber tyre gantry cranes, straddles, forklifts and internal transport vehicles in the handling of containers.

Scope of Report

This is a voluntary report on the safety and environmental (S&E) performance of our Australian operations written for our stakeholders, shareholders, customers, employees and the broader public.

This year’s report highlights the key initiatives implemented and resulting achievements under the four strategic pillars of our S&E strategy:

› Robust systems

› Effective risk management

› Effective leadership and

› Capable culture

Unless otherwise stated, this report covers the performance of DP World Australia’s operations for the period from 1 January 2013 to 31 December 2013. For completeness, data measurement techniques are explained alongside graphs and data. This year’s data is measured against a 2008 baseline in line with set targets and objectives. There were no signi!cant organisational structural changes during the reporting period.

In addition to this year’s Sustainability Report, information regarding DP World Australia’s activities and performance can be found at:

› National Greenhouse and Energy Report – climatechange.gov.au/reporting

› Energy Ef!ciency Opportunities Report – dpworld.1-stop.biz/Pages/default.aspx and

› National Pollutant Inventory Report – npi.gov.au

This report details our commitments and achievements to our key stakeholders. We therefore welcome any feedback you have on the report and encourage continued communication with all our stakeholders. Feedback can be emailed to [email protected]. We will personally respond to your feedback and take it into account in the compiling future reports.


DP World Australia Environmental Snapshot

The below !gures are calculated using the National Greenhouse and Energy Reporting (Measurement) Determination 2008.

Regional Results% Increase / Decrease

from 2008 Baseline

Greenhouse Gas Emissions (kg Co2-e) per Modi!ed TEU

28.3

28.2

26.1

25.1

25.5

24.5

2008

2009

2010

2011

2013

2014

-13.4%

Fuel Consumption (litres) per Modi!ed TEU

4.17

4.04

3.96

3.93

4.05

4.14

2008

2009

2010

2011

2013

2014

-0.7%

Electricity Consumption (kWh) per Modi!ed TEU

17.17

17.59

15.86

14.86

15.14

15.73

2008

2009

2010

2011

2013

2014

-10.7%

Water Consumption (Litres) per Modi!ed TEU

18.54

17.32

9.91

6.08

7.34

8.27

2008

2009

2010

2011

2013

2014

-55.4%

Waste Consumption (kg) per Modi!ed TEU

0.36

0.41

0.38

0.62

0.85

0.80

2008

2009

2010

2011

2013

2014

+122.2%

TEU = Twenty-foot Equivalent Unit, the standard international measure for container volumes. *Note: increase in waste is due to an increase in the scope of waste data captured by the business


DP World Australia Safety Snapshot

Regional Results% Increase / Decrease

from 2008 Baseline

Lost Time Injury Frequency Rate

34.9

31.7

25.5

21.9

21.8

19.5

2008

2009

2010

2011

2013

2014

-44.1%

All Injury Frequency Rate

457

404.1

358.6

265.1

269.1

228.6

2008

2009

2010

2011

2013

2014

-50.0%

Total Days Lost

3567

3299

2186

2926

2963

2430

2008

2009

2010

2011

2013

2014

-31.9%


Our S&E Strategy

This year we commenced the second year of our three year regional S&E strategy. This strategy takes a triple bottom line approach that seeks to provide positive social, environmental and !nancial results for the business.

In line with this approach it is our safety and environmental vision to have healthy people, a healthy planet and a healthy business and it’s our mission to support business outcomes by managing safety and environmental risk.

In order to achieve this we have focused on four key strategic pillars: robust systems, effective risk management, effective leadership and capable culture.

Our objectives in each of these areas include:

ZEROHARM

RobustSystems

EffectiveLeadership

CapableCulture

Effective RiskManagement

› To enhance the pro!le and practice of S&E

› To empower employees to identify and manage safety risks and environmental impacts

› To continuously improve systems for managing S&E

› To reduce workplace incidents

› To improve the health and wellbeing of our workforce

› To improve incident repsonse and investigation

› To build inspirational thought leaders to evolve S&E


1. Robust Systems

Robust systems are the sound structure, procedures, processes and resources an organisation needs to achieve the objectives it has set itself such as meeting external certi!cation and complying with regulations. Our objective is to continuously improve our systems for managing safety and the environment.

Safety & Environmental Management Systems

Over the last few years our safety and environmental management systems have continued to evolve. Taking the next step in our journey of continuous improvement in 2012 we began the process of consolidating our four independent terminal based systems into a regional based integrated management system – the Australia Integrated Management System (AIMS).

The purpose of the AIMS is to provide a consistent and best practice framework to manage safety and environment (S&E) taking into account DP World’s S&E risks as well as legal and other requirements. It achieves this by incorporating all systems and processes into one complete framework, enabling DP World to work as a single unit with uni!ed objectives.

In 2013 the AIMS was of!cially launched with a roadshow at each of the terminals. The application of this platform has simpli!ed and streamlined the systems for all users and allowed site management to focus on the implementation of system elements.

In addition we achieved regional certi!cation to OHSAS 18001:2007 Occupational Health and Safety Management Systems and ISO 14001:2004 Environmental Management Systems.

In ensuring continual improvement in our management systems, the regional S&E team completed internal safety and environmental management systems audits at each terminal.

IT Systems

Our IT systems play a critical role in our ability to share information. In 2013 we released our new S&E portal page. The main purpose of our portal is to provide all users with:

› Easy and centralised access to S&E information and applications

› A platform to share information including best practice initiatives, systems documentation, performance results and continuous S&E improvement and

› Ability to keep up to date with events and good news stories.

In addition to our new S&E portal we have streamlined our monthly reporting system and automated data transfer where possible. The system now also provides dashboards containing real time S&E data so that sites are able to identify trends and compare their performance against set targets and benchmark against other sites.


National S&E Week – Raising S&E awareness across the country

National Safety and Environment Week was held from 14-20 October with the aim of promoting a healthy, safe and environmentally friendly workplace for all. Numerous activities, events, giveaways and competitions were held across the course of the week at each site targeting the whole workforce.

Some of the highlights of the week included a visit from rugby league immortal Wally Lewis who spoke about the value of mateship and the importance of safety in the workplace in Brisbane and the installation of a rain water tank, new garden and the ‘bringing safety home’ open day in Fremantle. In addition across the week the sites ran numerous events including free skin and health checks, mental health and environmental talks, healthy BBQ’s and cooking and working at heights demonstrations.

All in all, National Safety and Environment week was a huge success. We had an overwhelming response across the week and also received a great deal of positive feedback. The success of the week was attributed to everyone who participated, those that worked tirelessly to create such a memorable event and K&L Gates for their generous sponsorship.

DP World Melbourne Managing Environmental Risk Whilst Saving Water

The straddle wash bay and maintenance facilities were historically connected via complex treatment equipment to storm water drainage. The system was designed so that the treated water could be discharged to storm water and the waste water was contained in septic tanks and pumped out by waste contractors.

In order to minimize the removal of waste water, reduce water consumption and the associated costs the site changed the connection of the current maintenance septic system to sewer and made modi!cations to the existing wash treatment facilities. These modi!cations were designed by the Facilities and S&E Departments and included the installation of !ltration and treatment equipment and an additional holding capacity for recycled water.

Advantages of this system include:

› Reduction in waste water disposal and water consumption

› Cost savings of waste water pump out

› Reduced risk of storm water contamination and

› Remove of environmental license and associated monitoring and reporting.


2. Effective Risk Management

Effective risk management is the elimination of workplace hazards and signi!cant impacts. Where these cannot be eliminated the risks are mitigated to as low as reasonably practicable with a focus on high risk and impact initiatives. It is our objective to reduce workplace incidents, improve the health and wellbeing of our workforce and improve our incident response and investigations.

Preventing & learning from Workplace Incidents

In pursuit of preventing workplace incidents we have continued to focus on reducing high consequence S&E risk(s) within our business and sharing key learnings.

Following the implementation of the regional risk management framework in 2012 the focus for 2013 was aimed at putting into practice critical controls de!ned in our fatal risk standards with a particular emphasis on hard controls that address the source of risk.

With this focus various hard controls have been implemented across our business in 2013 targeted at eliminating or reducing high risk areas. Controls worth notable mention include maintenance shuttle platform, securing cones for frameless tanktainers, self-bunded waste oil and bio-diesel tanks, and straddle recycling water treatment system.

Our ability to share these controls and best practice initiatives has been aided by the release of our best practice initiative portal page and through forums including the fatal risk forum hosted in National S&E week and the

supervisor training forum. System and fatal risk audits have also provided an opportunity to share these hard controls and best practice initiatives across the business.

Improving our response and quality of investigations

We have also strengthened our critical incident reporting and investigation systems and processes. We have initiated a process of validating our critical incident reports and controls to con!rm “what we say” has been implemented and continue to be effective in mitigating risk.

Brisbane Managing their Risk – Shuttle Maintenance Platform

In the lead up to change of operating mode in DPW Brisbane, from forklift, reach stacker and ITV to Automatic Staking Cranes’ and manned-shuttles, 14 Shuttles were purchased.

The existing workshop was not equipped to maintain these machines therefore a number of modi!cations were required to provide a safe access to the engine and generator bay located on the top frame of the shuttles.

To ensure safe access the DP World Brisbane Engineering team designed a gated maintenance platform on the shuttles. The design of the shuttle

platform and incorporated isolation procedure ensure that all who are required to access the shuttles are able to do so in a safe and ef!cient way, without risk of exposure to energy and to ensure that the shuttle cannot be moved whilst undergoing maintenance.


Le Tour de DP World Brisbane in support of Multiple Sclerosis

As part of their Health and Wellbeing program DP World Brisbane employees donned their helmets and DP World bike jerseys and demonstrated their support by partaking in the annual Multiple Sclerosis Queensland’s Brissie to the Bay fundraiser event.

On Sunday 23rd June a team of twenty-eight workers, together with family and friends, braved an early start and cold weather to join a 5,700 strong contingent of bike riders who cycled up to 100 km for a great cause supporting people with multiple sclerosis.

All up the participants raised over $2000 for those living with multiple sclerosis whilst enjoying a healthy start to their morning.

Health and Wellbeing

In 2013 we continued our health and wellbeing program with numerous events targeting all employees and different health and wellbeing topics. In addition to increasing awareness on important health topics and enhancing the health and wellbeing of the workplace we raised much needed funds for charity.

Events hosted over the year included health checks during diabetes week, national nutrition week, daffodil day, world’s greatest shave, MS Brissie to the bay bike ride and Beyond Blue Anxiety & Depression Awareness Month.

Compliance

Our ability to manage risk within the business has also improved through legislative compliance and the implementation of enhanced auditing / veri!cation processes.

Safety Legislative Compliance

There were no safety prosecutions against DP World Australia during 2013. Safety improvement notices issued in 2013 included:

› Brisbane – ensure a safe system of work is developed, implemented and maintained to eliminate or minimise the risk of a shipping container from the DP World workplace falling onto the adjacent workplace.

› Melbourne – provide such instruction to employees as is necessary to enable them to perform their work in a way that is safe and without risks to health in relation to controlling risk of carbon monoxide exposure injury from vessel fumes when operating quay cranes.

› Melbourne – provide a safe system of work associated with loading and unloading containers on the landside.

› Melbourne – provide such instruction to employees as is necessary to enable those persons to perform their work in a way that is safe and without risks to health in regards to the safe operation of straddles in high wind conditions.

› Sydney – 1) Sequence work to remove the risk of containers falling on workers such as by allowing the trucks and semi trailers to approach the RTG when the load is lifted and in a position for loading 2) Consult with workers and other involved PCBU’s on other ways to eliminate or minimise risk

Environmental Legislative Compliance

There were no environmental prosecutions or improvement notices issued against DP World Australia during 2013.

DP World Australia continued to ensure compliance with the National Greenhouse and Energy Reporting (NGER), Energy Ef!ciency Opportunities (EEO) and National Pollutant Inventory (NPI) programs by submitting the required government and public reports.


Auditing and Veri!cation

In ensuring compliance to both internal and external standards and legislation a number of audits were completed in 2013. These audits included:

› National Greenhouse and Energy Reporting third party data veri!cation audit,

› Internal and external compliance audits to OHSAS 18001:2007 Occupational Health and Safety Management Systems and ISO 14001:2004 Environmental Management Systems,

› Internal audits in all the terminals against internal systems and fatal risk standards as well as energy assessments,

› Where required, action plans have been developed and are in the process of implementation to ensure continuous improvement.

Sydney Managing their Risk – Cones for Frameless Tanktainers

Frameless tanktainers are tank style containers that have no common rail that runs between the corner castings. Due to the containers only having corner casting contact when loaded on top of each other they are at a high risk of toppling if bumped by machinery or in high wind conditions, the potential consequence of such an incident is also quite high due to the hazardous nature of cargo often held in tanktainers.

In an effort to maximise yard storage and safely stack two high frameless tanks Brad Dunn (Safety Facilitator) had the idea of having container cones !tted into the corner castings.

In an effort to simplify the process Neil Lambert (Stevedore) came up with an idea; and produced a proto type of a cone with a tail on it and a lightweight aluminium extension pole that the tail !ts into. This allows cones to be !tted into corner castings without the use of a ladder. The main bene!ts of the cones and pole include:

› Reduction of potential injuries to employees from elimination of climbing a ladder to insert cones and

› Reduced risk of falling containers and potential emergency situations including environmental spills / contamination.


3. Effective Leadership

Effective leadership is the ability to in"uence, motivate and enable employees to contribute towards the achievement of organisational goals and objectives. Our objective is to build inspirational thought leaders to evolve S&E in our business.

S&E Interactions

At DP World Australia we recognise that leadership commitment is fundamental in developing a positive S&E culture and as leaders we need to walk the talk.

In our journey to build inspirational thought leaders to evolve S&E, a new S&E Leadership Interaction Program was launched across Australia to enhance leadership commitment.

The program requires targeted discussions between management and employees, to better understand the risks involved in an activity, discuss previous incidents and the effectiveness of controls, and discuss corrective actions which could be implemented to make the workplace safer and more environmentally friendly.

The program has allowed for more visible leadership and provided employees with an additional forum to voice their concerns and propose solutions for improvement.

Roles, Responsibilities and Accountabilities

Our roles, responsibilities and accountabilities framework continued to evolve in 2013 through the identi!cation of S&E critical positions at all levels that have an important and ongoing S&E leadership role; and to identify the task competencies required for those roles.

This framework has helped us identify gaps in the knowledge and skills required to manage S&E at all levels within the organisation and make amendments to training packages where required.

Fremantle Open Day – Bringing Safety Home

As part of National S&E Week, Fremantle hosted a terminal Open Day on Sunday 20 October with the theme ‘bringing safety home’.

Across the day employees and their families had the opportunity to take a tour of the terminal, explore the different types of equipment and view the vessels working alongside the berth all while wearing their mini PPE and maritime security identi!cation cards. There was also a little fun thrown into the day with a jumping castle, petting zoo, giveaways and healthy BBQ and lunch for all.

The day was a huge success with approximately 140 people visiting the terminal. It was amazing to the see the smiles on the kids’ faces as they got to see the terminal getting up close to the cranes, podding stations and vessels, play on the jumping castle and

pat the animals. Following the event the site received numerous emails and text messages about how much our employees and their families enjoyed the day.

The day was a re"ection of the commitment and dedication of the S&E committee and team and all of the staff and employees who worked together to create an unforgettable day for all.


4. Capable Culture

A capable culture is one where employees of the organisation are competently trained, understand their roles and responsibilities and share the same organisational assumptions, values and beliefs. Our objective is to enhance the pro!le and practice of S&E and empower our employees to identify and manage safety risks and environmental impacts.

We recognise that engagement with both our internal and external stakeholders is crucial in creating a capable culture. We have achieved this through various mediums including training seminars, conferences and meetings, industry forums and active participation in legislative reform.

Employee Engagement

Our focus in 2013 was to actively engage with the various levels within our workforce through targeted engagement programs. At an employee level we increased engagement through S&E interactions, numerous S&E events including National S&E Week and open days and involving our employees in various projects to address key safety and environmental issues.

At a supervisory level this year we had the opportunity to facilitate an S&E roles and responsibilities session as part of the supervisor training forum. The sessions allowed for open discussions on how we can achieve

consistency across our terminals and how we can streamline our systems. It also provided a forum for sharing best practice initiatives across the business.

At a management level we actively engaged different departments and site management teams through partnerships in various projects and presentations at departmental conferences including the engineering conference.

The executive continued to be actively involved in S&E issues and planning through the established Executive Safety and Environment Committee (ESEC).

External Stakeholder Engagement

Consultation with our external stakeholders encourages engagement by providing both parties an opportunity to discuss key areas of interest, to share information and initiatives and to work together to highlight and resolve safety and environmental issues.

Speci!cally in 2013, we have worked with our external stakeholders by:

› Continuing to be an active member of the Stevedoring Temporary Advisory Group working with other industry representatives, Government, Regulators, Safe Work Australia and the Maritime Union of Australia to develop a state of knowledge and provide guidance in managing risks in stevedoring and improving safety within the industry.

› Facilitating forums with our customers, the shipping lines, to discuss how we can work together to improve safety whilst working aboard a vessel.

› Working with the Port of Melbourne on a port carbon footprint project to raise awareness of climate change issues in the port, identify opportunities for adaptation to future climate change and to assist port entities to adjust to a low carbon economy.

DP World Safety and Environment Team

The DP World S&E team’s mission is to support business outcomes by managing S&E risks. We aim to !rstly eliminate or reduce the risk of harm to people and the environment and secondly provide advice to ensure statutory compliance is maintained.

Regional Safety & Environment Team

The Regional S&E team provides strategic direction and analysis, implements national or specialised projects, performs quality veri!cations and reviews the Region’s compliance with relevant federal policy and legislation.

Adam Holland General Manager Safety & Environment

Bassem Kabbara National Risk Reduction Manager

Kristen Street National Sustainability Manager

DP World Melbourne Damian White Manager Safety & Environment

DP World Sydney Gavin Sansom Manager Safety & Environment

DP World Brisbane Karli McNamara Manager Safety & Environment

DP World Fremantle Brad Gardner Manager Safety & Environment

Site Safety & Environment Team

The site S&E team promote a safer, healthier and environmentally friendly work environment by ensuring site S&E procedures are developed, implemented / maintained and pro-actively identifying and mitigating key risks across the terminal.

Environmental paper details to be con!rmed before printing.

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