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Sustainability Report - Leighton Asia

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<strong>Sustainability</strong><strong>Report</strong>2008


<strong>Report</strong> structureThis report covers the period July 2007 to June 2008 and documents ourcompany philosophy and record to date in relation to sustainability andbest practice.Stakeholders in this report include shareholders, customers, suppliers,employees, community members, financial organisations, government andnon-government organisations and all other interested parties.Contents1 MD’s message2 Introduction4 Be commerciallycompetitive6 Provide a safe andhealthy workplace8 Act with integrityand fairnessWithin this report, <strong>Leighton</strong> <strong>Asia</strong> documents sustainable business practicesas implemented and observed by the company, together with key projectsand developments carried out in line with our seven key core values to:■ Be commercially competitive■ Provide a safe and healthy workplace■ Act with integrity and fairness■ Create a fun, challenging and performance driven culture■ Protect the environment■ Recognise the needs of the community■ Encourage innovation and technological leadershipWe conduct our business with a focus on sustainability that we define asmeeting the needs of the present without compromising the ability offuture generations to meet their own needs. For us this means being:■ Long lasting■ Financially profitable■ Technically appropriate■ Environmentally sound, and■ Socially responsible10 Create a fun,challenging andperformancedriven culture12 Protect the environment14 Recognise the needs ofthe community16 Encourage innovationand technologicalleadership


MD’s messageIt is my great pleasure to launch the first annual <strong>Leighton</strong> <strong>Asia</strong> Limited <strong>Sustainability</strong><strong>Report</strong> - “Building a sustainable business through living our values”.While sustainability may well be the current catchcry across the globe, for<strong>Leighton</strong> <strong>Asia</strong> this simply means continued observation of the core values that havesustained us in the past and continue to grow our reputation across the region,whilst also guaranteeing that our business remains consistently profitable andcorporately responsible.<strong>Sustainability</strong>, it is not just about financial results, it relates to the way we conductbusiness with respect to the environment and the communities in which we operate.<strong>Leighton</strong> <strong>Asia</strong>’s core values underscore our corporate culture, guiding the way werelate to our people, business partners and clients, as well as differentiating us fromother organisations and makes people want to work with us. Observance of thesevalues also promotes the ongoing commitment we have to communities across theregion. This is demonstrated in a variety of ways, ranging from managing our worksat the Permanent Aviation Fuel Facility in consideration of the habitat of Hong Kong’srare pink dolphins, to the introduction of a battery-recycling programme in Cambodiaand the <strong>Leighton</strong>-sponsored AFS scholarship programme promoting further educationand overseas experience for the children of our valued employees.We believe that openly reporting our sustainability performance promotes improvedperformance against all our business indicators. Our values-driven culture hasalready witnessed tangible results of this as the recipient of a number of prestigiousindustry-related awards in relation to key projects across the region.As the world addresses the current global financial downturn, it also presents agolden opportunity for <strong>Leighton</strong> <strong>Asia</strong> to examine and analyse the way we do businessnow and in the future. Sustainable business practices will increasingly become themantra of all corporations desiring continued growth and productivity and continuedprofitability for stakeholders. <strong>Leighton</strong> <strong>Asia</strong> proudly stands by its record of achievementand continued sustainable business practices.This report is another <strong>Leighton</strong> <strong>Asia</strong> Limited milestone and a record of our sustainabilityperformance to date. We value your feedback on this report and welcome any ideasyou may have in relation to future editions.Hamish TyrwhittManaging Director


Introduction<strong>Leighton</strong> <strong>Asia</strong> is part of the <strong>Leighton</strong> Group, Australia’s largestproject development and contracting group with annualrevenues exceeding US$14 billion. With an operational historyof over 30 years across the <strong>Asia</strong> region, our strength lies in ourability to develop competitive, innovative and practical solutionsfor our clients. Our unique combination of local knowledge andinternational experience sets us apart from our competition andallows us to operate as a general contractor locally inHong Kong, Macau, Beijing, Ulaanbaatar, Manila, Bangkok,Guam and Ho Chi Minh City. From these offices we coverthe following countries Hong Kong, China, Macau, Taiwan,Vietnam, Thailand, Philippines, Laos, Cambodia, Guam,and Mongolia.We focus our business in five key market sectors – civil &infrastructure, mining, marine, industrial and building. Weimplement a strategy that promotes growing our business bothorganically and inorganically. Our diverse and talented teamsof people are both the heart of our success to date and the keyto our future.MONGOLIACHINALAOSMACAUTHAILANDCAMBODIAVIETNAMTAIWANHONG KONGPHILIPPINESGUAMOur clients<strong>Leighton</strong> <strong>Asia</strong> takes pride in the projects we deliver to ourvalued clients. These include some of the region’s high profileblue chip companies, technical specialists and governmentbodies. Key to our continued success is the enduring clientrelationships we have built and fostered over the decades.Our clients are at the core of our business and we recognisethat continued long-term financial strength is dependent uponcommercial partners choosing to do business with us.In line with this, <strong>Leighton</strong> <strong>Asia</strong>’s culture and values reflectour desire to work in collaboration with clients, partners andstakeholders across the sectors in which we operate. This isfurther reflected in our commitment to communicate effectivelywith all our clients and stakeholders.<strong>Leighton</strong> <strong>Asia</strong> officesDiversity and autonomyTHEGROUP’S STRATEGIC FRAMEWORKOur peopleOur people are the heart of our success and key to our future.<strong>Leighton</strong> <strong>Asia</strong> is also aware that myriad excellent ideas originateonsite as inspired employees face daily challenges. By way offurther fostering and promoting input, we have implementedannual staff surveys to better engage with our people andmaximise their contribution.GeographyHong KongChinaMacauTaiwanVietnamThailandPhilippinesLaosCambodiaGuamMongoliaMarketsCivil & InfrastructureMiningMarineIndustrialBuildingActivitiesConstructionContract MiningServicesDevelopmentMarkets / ActivitiesGeographyBrandDelivery SystemsDelivery SystemsHard DollarDesign & ConstructionProject ManagementAlliancingNegotiatedDevelopmentPrivatised Projects/PPPsOur business strategy is based on diversity. Diversity by markets andproducts, by geography, and the way services are delivered to clients.Diversity adds momentum to our evolution into a financially strongcontracting and project development company with an expandedindustry focus.Our reputation as an employer of choice was also confirmedduring the past year and saw five employees celebrating longservice achievements of 30 years or more.Continued staff development is a key component of companysuccess, including regular values workshops, training in safety,operations processes and tools, the <strong>Leighton</strong> Masters ofEngineering scholarships, and senior managers attendingregular leadership training sessions. We also continue tosupport the AFS scholarship programme, sponsoring employees’children to study overseas under a one-year exchangeprogramme. In the coming year a new initiative will see thelaunch of a mentoring programme, together with continuedsupport for employees wishing to enhance their professionaldevelopment with institutions such as Hong Kong Instituteof Engineering.


Our values form our foundationsOrganisation structureBoard of DirectorsDieter Adamsas, ChairmanHamish TyrwhittWal KingBill WildGordon SiuSimon JiangMark Smith, SecretaryManaging DirectorHamish TyrwhittChief Financial OfficerMark SmithExecutive General ManagerFinanceTony JacobsGeneral ManagerCommercialBob CookeGeneral ManagerStrategy & CommunicationsGrahame WhiteGeneral ManagerHuman ResourcesJulian RzesniowieckiHong KongChinaMacauTaiwanExecutive General ManagerIan EdwardsVietnamThailandPhilippinesLaosCambodiaGuamMongoliaExecutive General ManagerIain Speirs


Be commercially competitiveWe work efficiently, respond to our markets,optimise profits, deliver on time and maximiselocal expertise.PracticeAt <strong>Leighton</strong> <strong>Asia</strong>, we aim to work to peak efficiency to optimisestakeholder and shareholder profits by delivering on time underthe guidance of the local expertise we employ at each project,this in accordance with company practice.With a primary focus on providing professional project delivery,we systematically manage projects to maximise value for allstakeholders, comply with relevant laws and contractualobligations, assigning sufficient resources to provide the desiredlevel of service to clients and achieve required standards.To this end we provide appropriate training for employees andsubcontractors to improve service to clients and projectdelivery. We set targets and review results on a regular basis toensure continuous performance improvement and to ensure thatour quality management system is in accordance withISO 9001:2000.Value workshopsOur core values are at the very heart of, and form thefoundation of, a corporate philosophy that has witnessed thegrowth and success of the company across the region. Thesevalues define an understanding of who we are, how we behaveand what we do. We have identified major behaviours for thesecore values and how they correlate with our strategic intents,namely, local knowledge, international experience and focuson success.To this end, we have identified representatives from eachregion as Value Champions to further promote our core valuesand corporate philosophy. The team holds regular workshopsto exchange ideas and formulates best practices in order toguarantee the provision of superior service in relation to currentand future projects.Managing Directors’ RoadshowIn 2008, <strong>Leighton</strong> <strong>Asia</strong> managing director Hamish Tyrwhitt,together with the executive team, conducted a ManagingDirector’s Roadshow at nine locations across the region,including Ho Chi Minh City, Beijing, Masbate, Manila, Bangkok,Macau, Hong Kong, Guam and Phnom Penh, at which all staffacross the region were presented with a review of the company’sstrategic direction for the future.The Roadshow conveyed a number of key messages, includingcommunicating our business strategy and the importance ofcommitment to living our core values. Reinforcing the need tobe commercially competitive, the Roadshow also emphasisedthe need for the company to continue attracting and retainingthe right people and the provision of ongoing support anddevelopment to all staff in order to implement planningprocesses with a focus on clients and key stakeholders, resultingin continued business growth and stronger career opportunitiesfor staff.Risk managementA major component of <strong>Leighton</strong> <strong>Asia</strong>’s business, both strategicallyand throughout project delivery in achieving sustainability,is risk management.Pre-contract management groups are responsible for businessdevelopment and securing projects. This process involves acontrolled approval process and commercial and technicalrisk reviews. Post-contract management groups are responsiblefor the project delivery involving the management of riskand opportunity.The company’s risk management processes and guidelines are inline with AS/NZS:4360 and these processes and guidelines arealigned with the risk management guidelines provided by<strong>Leighton</strong> Holdings’ risk management group. These include limitsof authority, types of acceptable risk exposure and financial levelsof acceptable risk.


In addition, <strong>Leighton</strong> <strong>Asia</strong> conducts monthly reviews of reportedrisks and opportunities, including business development andsecured contracts in relation to both current and completedprojects if not closed out.A look at <strong>Leighton</strong> <strong>Asia</strong>’s performanceIn 2008 <strong>Leighton</strong> <strong>Asia</strong> successfully secured a number ofcontracts which resulted in a strong order book at the end ofthe financial year.In the 2008 financial year, <strong>Leighton</strong> <strong>Asia</strong>’s total revenuewas US$392 million, a 42% increase on the previous year.At 30 June 2008, work in hand was US$671 million,a 29% increase compared with the previous year.Looking forward, <strong>Leighton</strong> <strong>Asia</strong> is in a strong position withcontinued strong prospects for the next few years. Our spreadof work across the <strong>Asia</strong> region and across different marketsectors provides diversification. Diversity is a key element ofour business strategy and helps us manage through the cyclicalnature of our markets.During 2008 we have established a presence in Guam tocapitalise on the future US Defence buildup, and also inMongolia where we look forward to participating in thedevelopment of the country’s resource sector.Additionally, <strong>Leighton</strong> <strong>Asia</strong> is building a marine pipeline laybargeand is looking to acquire other resources to compliment andsupport our capabilities to undertake marine works throughoutthe region. We are also focusing on the continued developmentof our tunnelling resources to support our position as asignificant tunnelling contractor.The future bodes well for <strong>Leighton</strong> <strong>Asia</strong>, with record levelsof work in hand and with a resource well managed team toexecute construction works across the region.Total RevenueUS$ millionTotal RevenueUS$ millionWork in HandUS$ millionWork in HandUS$ millionManaging Risk & OpportunityFull Audit TrailCustomisableMonitor and ControlMitigate<strong>Report</strong>sand <strong>Report</strong>RequirementandProject ToolEstablish RequirementsContinuous feedbackloopAssessIntegrationand ApproveProactiveEmail AlertsTotal RevenueUS$ million04275053240427506353053240727606353083920727608392Work in Hand04Identify & Evaluate644054460464406337054460751906337086710751908671Knowledge BaseUS$ million


squalifications, abilities and experience. In a similar manner, thepromotion and development of <strong>Leighton</strong> people is merit based.We also maintain a culture that eliminates discrimination andharassment of any kind within the workplace environment andensure that no-one is disadvantaged on the basis of race,gender, age, religious beliefs, colour, national origin, maritalstatus, sexual orientation, appearance or disability. <strong>Leighton</strong> <strong>Asia</strong>stands by its belief and treats all employees fairly andwith respect.We do not tolerate discrimination or harassment whetherdirected at employees, clients, members of the community orother stakeholders and we have procedures in place to addressany breaches quickly and effectively.Diversity in our workplaceOur approach to the engagement and development of peopleensures that we have a diverse workforce which is representativeof the markets in which we operate. We consider our diversityto be one of our company’s greatest strengths, and we considerthat this gives us a competitive advantage in dealing with ourcustomers and stakeholders. We are leveraging upon both ourlocal knowledge and international experience.We support and encourage diversity in our workplace throughthe application of our values as well as the active application ofour policies and programmes.and requirements that they will encounter during their newworking and living experience.Families are also high on our priority list, as a settled and happyfamily guarantees that our employees are able to focus on thetask at hand in relation to their job. To further promote this,we hold regular family orientation events that positivelypromote social networking across all cultures, such as barbequesand bowling events, which also result in interaction beyondthe workplace.One recent example of cross-cultural work assignments occurredin October and November 2008, when two Filipino heavyequipment operators were sent to Mongolia to provide trainingto our new Mongolian operators. This required our local Filipinooperators to immerse themselves in Mongolian culture anddevelop positive relationships with their Mongolian counterparts,whilst also adjusting to extreme climatic conditions and overcominglanguage barriers.The recent <strong>Leighton</strong> Employee Survey has been invaluable ingaining a better understanding of our people attitudes andopinions as well as giving people an opportunity to have theirsay and be heard regarding the way in which the Companydeals with our diverse workforce and builds a stronger<strong>Leighton</strong> community.<strong>Leighton</strong> <strong>Asia</strong> supports “Women in Construction” programmeconducted by the Lighthouse Club. We provide a range oflanguage classes, such as Mandarin classes for Cantonese andEnglish speakers and English as a second language.We provide <strong>Leighton</strong> people with job transfer opportunitiesbetween our different business units and with other international<strong>Leighton</strong> Group companies. We support the employees andtheir families with guidance on the different cultural expectations


Create a fun, challenging andWe celebrate success, empower people, encourageteamwork, embrace cultural differences, work hardand play hard.Performance and fun in balanceAt <strong>Leighton</strong> <strong>Asia</strong> we strive to perform at our best but we alsocelebrate our successes and encourage our people to work hardand play hard.This is a key feature of our culture; we demand results andempower and encourage our people to work together to deliverbut at the same time we also want our people to have fun andhave sufficient time away from the work environment to restand relax and spend time with families and friends.<strong>Leighton</strong> has recently made changes to the workingarrangements within the Hong Kong office to reduce the spreadof the working week. We actively encourage our staff to taketheir annual leave rather than accruing leave entitlements yearupon year.In 2008 we introduced more flexible arrangements in relationto project staff working hours and public holidays as well as areduction in weekend working.To further promote employee involvement and commitment,<strong>Leighton</strong> <strong>Asia</strong> also regularly arranges events for staff and theirfamilies including company celebrations as well as engagingwith the local community and supporting charitable events.Developing our peopleThe development of <strong>Leighton</strong> <strong>Asia</strong> people is a key componentof our business strategy and values. Our development strategyprovides a competency and skill framework and the creation ofdevelopment plans for our people to ensure they have the skillsand attributes to deliver in their existing roles and prepare forfuture opportunities.We provide our people with development via many modesincluding training (internal and external programmes),education assistance, challenging assignments, project10


performance driven cultureexperiences and promotional opportunities. For example in2008 <strong>Leighton</strong> <strong>Asia</strong> sent a number of senior managers toAustralia to complete management development programmesand in 2009 we will sponsor two young engineers to undertakethe <strong>Leighton</strong> Masters Degree in Project Management at theUniversity of NSW.The company offers a wide range of in-house trainingprogrammes and manages tailor-made external courses tosupport staff training and development. These include staffinduction sessions for all new employees, knowledgemanagement seminars, crisis management training, as wellas supervisory training, communication skills training, culturalawareness training, performance management training, andlanguage training.The <strong>Leighton</strong> <strong>Asia</strong> “Training Corner” has been developed on thecompany portal as a learning platform for <strong>Leighton</strong> <strong>Asia</strong> staff.This system is tailor-made to provide our staff with informationon learning and development without the constraints of theirgeographical work location.Measuring and rewarding performanceThe performance appraisal system was revamped this year.The system provides an objective mechanism to assess theperformance of staff at all levels and to assess and plan for theirdevelopment. The process includes performance evaluation,competency assessment, training and development, careerplanning and encourages every staff employee and theirmanager to meet formally twice per year and give each otherfeedback in a supported manner.<strong>Leighton</strong>’s reward systems are also designed to ensure thatcompany benefits are competitive within our market andare allocated objectively on the basis of merit. Accordinglythere is a linkage between the performance system and therewards process.We are committed to maintaining a competitive position withinthe labour market and carry out regular benchmarking withmarket and industry of salary and benefit trends to maintainstaff salaries at reasonable market levels.<strong>Leighton</strong> staff who make outstanding contributions to thecompany’s success are further rewarded with promotion andother career development opportunities.Philippines programmes ensure strong bondsIn the Philippines, a much-anticipated and highly popular annualevent, the Big Day Out is celebrated at a gathering of staff fromthe corporate office and project sites. It is a chance for staff tohave fun, go head to head in team events and demonstratetheir energy and talents in team building activities and is also achance for staff members to catch up with <strong>Leighton</strong> friends andcolleagues from other offices.In 2008, the Philippines office also held the 7th Inter-ColourBowling Tournament, which is always a popular event, asdemonstrated last year when 120 players from differentdepartments battled it out for seven long weeks before thechampion team emerged victorious.Additionally, the <strong>Leighton</strong> <strong>Asia</strong>-sponsored Manila Tens hasbecome the leading “social rugby” tournament in <strong>Asia</strong>. In 2008,the 20th annual Manila Tens tournament attracted 32 teamsfrom across the region and from as far afield as the UnitedKingdom, the Middle East, Africa and Australia. <strong>Leighton</strong> <strong>Asia</strong>also fielded its own team in the tournament - the <strong>Leighton</strong>Larrikins – enthusiastically supported by its own vocal cheerleaders,the stunningly outfitted <strong>Leighton</strong>ettes, adding a muchappreciated touch of colour and glamour to this exciting event.These programmes have helped create major unity for <strong>Leighton</strong><strong>Asia</strong> and our employees.11


Protect the environmentOur mandate is to reduce our carbon footprint,use resources efficiently, minimise our impact onthe environment, recycle, and train our people.Ecological and carbon footprintsProtecting the environment in which we operate, and in whichour employees and communities live, is fundamental to thesustainability of our business. We have taken many steps toensure that activities at our projects are properly controlled inorder to reduce adverse environmental impacts to acceptablelevels. This includes comprehensive pollution and nuisanceabatement measures to address the significant environmentalaspects of our business such as noise, construction dust, airemissions and discharges to water. In this regard we continueto be successful in managing the local environment.At this stage, meaningful reduction targets in absolute ornormalised terms, for example energy or waste per unit ofproduction have been difficult to establish due to the diversenature of the <strong>Leighton</strong> <strong>Asia</strong> businesses that can vary widelyfrom mining and industrial works, heavy civil engineering suchas tunnelling, through to commercial building, each of whichhaving quite different carbon and ecological profiles.Our focus has been to implement initiatives and take decisionsthat are both good for the environment and that make goodbusiness sense.Dolphin watching at Aviation Fuel Supply Facility projectThe new aviation fuel supply facility, valued in excess of A$100million, augments the existing fuel supply to the Chek Lap Kokairport in Hong Kong which was built by <strong>Leighton</strong> <strong>Asia</strong> over tenyears ago. The new facility will receive tankers direct fromoverseas of up to 80,000 tonnes.There is a unique environmental consideration in relation tothis project, namely, that the jetty and pipeline area is also thehabitat of the protected Chinese white dolphin. As dolphins areparticularly sensitive to underwater noise, such as that producedby hydraulic hammers, <strong>Leighton</strong> <strong>Asia</strong> developed a bubble jacket,which is effectively a sleeve that goes over the outside of thepile. Compressed air is injected at the base of the pile reducingthe transmission of underwater noise. In conjunction with thistechnical innovation, we engaged specialists as dolphin spotterson our boats to monitor dolphin movements and to stop work ifthey encroached within 500 metres of piling as well as dredging.Prior to dredging, a detailed investigation was also conducted toidentify soils on the sea bed that would need to be removed forthe pipeline. <strong>Leighton</strong> is now in the process of removing specificlayers of dredged material, some of it naturally contaminated,and disposing of it in the dedicated confined disposal sites inHong Kong.Community liaison was also one of the key issues in ensuringsuccessful delivery of the project. A community liaison groupwas established by the Airport Authority as required by theenvironmental permit and <strong>Leighton</strong> provided required supportand information to this group. As required for all major projectsin Hong Kong, the site also has a dedicated web-page andreal-time video surveillance to enhance the project’s transparencyto the public.Central reclamation construction is in good handsCommencing in 2003, scheduled for completion in 2010 andundertaken by <strong>Leighton</strong> <strong>Asia</strong>, in a joint venture with China StateConstruction Engineering (Hong Kong) and Van Oord ACZ, theHK$3.8 billion Central Reclamation contract to form 18 hectaresof additional land has been one of the most high profile projectsever awarded in Hong Kong.As the appointed contractor, we have been particularly carefulto adopt international best practice when carrying out ourworks to manage the environmental aspects under our control.The environmental challenges faced in relation to this projectwere many, including reclamation works in sensitive areas,managing construction waste from demolition works andnuisance abatement to reduce any potential impacts to anacceptable level.12


As a result, many initiatives were undertaken by <strong>Leighton</strong>,including a green leadership programme, which involvedproactive engagement with our subcontractors, includingextensive training for 7,200 workers. The project team has alsomaintained the Gold WasteWi$e logo throughout the period forits initiatives in waste management and continues to participatein industry award schemes.The scale of our operations in an urban environment requirescareful management to protect the environment. Pre-castconcrete was used for all major structures, which wereinstalled during off-peak hours to avoid disruption. Extensiveuse of silt curtains and screens prevented marine water impacts,while permit-to-work systems ensured compliance with ourlegal obligations.Environmental performanceOn 18 April 2007, there was an environmental incident atCentral Reclamation Phase III project related to the accidentalloss of material from a barge leaving the site on its way to themarine dumping ground. Immediately following the incidentin April 2007, an improvement plan was prepared andimplemented on site following the incident. Further trainingwas conducted at the project site for personnel involved.A Good Practice Guideline relating to marine dumping hasbeen prepared and issued under our EnvironmentalManagement System.Classifications on environmental incident severity under the<strong>Leighton</strong> Group reporting standards are based on the impactthat the incident has on the environment and/or community.Level 1 (high severity) refers to pollution or degradation thathas or may have irreversible detrimental effects. Level 2 (mediumseverity) refers to pollution or degradation that has persistentbut reversible detrimental effects. Level 3 (low severity) refersto pollution or degradation that has short term and reversibledetrimental effects.All the incidents that have occurred on our projects in thelast four years have been low severity. The incident rate hascontinually reduced as shown below.Environmental Incident RateEnvironmental Incident RateEnvironmental 1.50 Incident Rate1.50 1.251.25 1.001.00 0.750.75 0.500.50 0.250.25 0.0005 06 07 080.0005 06 —— Incident Rate 07 (All Incidents) 08Environmental IncidentEnvironmental Incident—— Incident Rate (Level 1 and 2)—— Incident Rate (All Incidents)—— Incident Rate (Level 1 and 2)Environmental 05 06 Incident 07 0805 0 06 0 07 0 08 0 Level 10 0 0 0 Level 120131 059 023 018 Level 23131 59 23 18 Level 313


Recognise the needs of the co<strong>Leighton</strong> <strong>Asia</strong> will develop long-term communitysponsorships, promote our brand, prioritise localemployment, take the initiative, and engage withour communities.Practice<strong>Leighton</strong> <strong>Asia</strong> understands that wherever we operate we areguests of the local community and recognise that we haveobligations to the respective community and therefore take asocially responsible approach to business. The company goesto great lengths to develop long-term community sponsorshipswhilst at the same time promoting our brand and prioritisinglocal employment and engaging with our communities.We endeavour to minimise the impact of our work on localcommunities and the surrounding environment. We are alsosensitive to different cultures, languages and religious beliefsof the communities in which we operate and incorporatecommunity relations into our project planning process, whilealso identifying and addressing the concerns of local communities.We actively encourage communication and consultation withthe local communities affected by our operations and supportlocal charities and community groups through sponsorshipsand donations where possible and appropriate. Moreover, weencourage and promote each employee adhering to thisapproach and by doing so, we are able to ensure we make apositive contribution to the communities in which we work.very small business groups. Through the Department, <strong>Leighton</strong><strong>Asia</strong> makes sure participants get proper training to improve theirskills, in marketing and in product development. These projectsare starting to show positive results and some of the productsproduced have already been displayed at a trade fairs in Manilastaged in conjunction with the Department of Trade and Industry.The Department of Trade and Industry and the local governmentof Albay in recognition of this endeavour presented <strong>Leighton</strong>with an award.During the construction of the Rapu Rapu Process Plant, <strong>Leighton</strong>assisted a small group of trained welders from a previouslycompleted project to turn a farm dwelling into a welding shopthat supplied prefabricated stainless steel pipe spools to theproject. This welding shop has since project completiondeveloped in a government-accredited welder training facility.<strong>Leighton</strong> <strong>Asia</strong> acts as a responsible corporate citizen in allcountries where it operates and takes corporate socialresponsibility as a priority.Social responsibility improves lives<strong>Leighton</strong> <strong>Asia</strong> recognised that there was a need for the peopleof the Bicol Region adjacent to their Rapu Rapu Mine site tocapitalise on indigenous skills and to use readily available localraw materials to make products which they could sell and earnmoney to support their families.The company went beyond making small grants to local peopleto improve their standard of living and actively encourages thedevelopment of small businesses in the region and assisted withlogistics of training and hauling goods to market.In association with the Philippines Department of Trade andIndustry, <strong>Leighton</strong> <strong>Asia</strong> has started training schemes for seven14


mmunityLink 200 Joint Venture unites east and westThe Link 200 joint venture comprises <strong>Leighton</strong>, John Holland,Balfour Beatty and Kumagai Gumi, and is responsible for thedesign and construction of the Austin Station and the railwaytunnels from Jordan Road to East Tsim Sha Tsui Station that willform an integral part of the MTR Corporation’s Kowloon SouthernLink project that will link the West Rail Line and East Rail Line.The new underground Austin Station will comprise four levelsof which the upper two will be above ground. A twin,1.1 kilometre long, 7 metre diameter tunnels has beenconstructed running through mixed ground beneath CantonRoad and Salisbury Road.To implement large-scale infrastructure projects in denselypopulated and developed areas such as Tsim Sha Tsui is a bigchallenge. Due to its urban setting, a key consideration forthe project is the ability of the tunnelling operations to limitsettlements and ground borne noise impacts. A new slurrytype tunnel boring machine (TBM) was used to construct thetunnels and <strong>Leighton</strong> realised that respect for harmoniouscommunity relations was key to this important infrastructureproject’s success.The Link 200 Joint Venture has chosen work methods thatwill minimise the amount of disruption to the neighbourhood.Residents were advised of the location and progress of theTBM throughout the tunnelling operation. Additionally, a jointventure 24-hour service hotline was also initiated, allowing thepublic to get updated information about the project.resources. The temperature in winter can hover around minus15 degrees Celsius.In the first such programme of its type organised by <strong>Leighton</strong>in Mongolia, the company was honoured to have assisted theChildren’s Nursing Centre Kindergarten in Ulaanbaatar, bysupplying a consignment of necessities for the 120 orphanedchildren living there. Following fund raising efforts in late 2007,<strong>Leighton</strong> donated two jeeps packed with vitamins, skincare products, warm clothing and educational toys to thekindergarten.By way of demonstrating their appreciation to <strong>Leighton</strong>,the children put on a concert for <strong>Leighton</strong>’s Mongolian staff,an event enjoyed by all.Some organisations supported by <strong>Leighton</strong>ANZ Chamber of CommerceAustChamAustralian International SchoolCommunity Chest of Hong KongInternational Red CrossLighthouse ClubMongolia Children’s Nursing CentreUNICEFUNSW Hong Kong Foundation LtdWorld Wide Fund for Nature<strong>Leighton</strong> offers caring hands in Ulaanbaatar<strong>Leighton</strong> <strong>Asia</strong> announced its expansion into Mongolia early inmid 2007 and has now established a permanent presence there.Mongolia is a landlocked country of about 3 million peoplelocated between China and Russia, and very rich in natural15


Encourage innovation and tecWe challenge the conventional, adapt to newtechnologies, invest for the future, share knowledgeand learn from any mistakes.PracticeIn today’s increasingly competitive world, it pays to be one stepahead of the competition. <strong>Leighton</strong> <strong>Asia</strong> actively encouragesinnovation, research and development in the technology andbusiness systems of the future. To ensure that our position asa market leader is maintained we challenge the conventional,adapt to new technologies, invest for the future, shareknowledge and learn from mistakes. This enables us to maintainand capitalise on its industry presence and reputation and takeadvantage of cutting edge developments that help improveand further enhance the business process and boost itscompetitive edge.Today, the majority of <strong>Leighton</strong> <strong>Asia</strong> projects use the latesttechnological systems on offer. From building, mining and civilinfrastructure projects, to process engineering and environmentalservices, <strong>Leighton</strong> <strong>Asia</strong> is at the forefront of the industry.Tunnel boring machine at Kowloon Southern Link inHong KongLarger than a Boeing 747 fuselage and twice the weight,the tunnel boring machine (TBM), employed on the KowloonSouthern Link project has been selected by the joint venturefor the project in order to maintain accurate and reliable faceand groundwater control. About eight metres in diameter andeighty metres long, the TBM has been working below HongKong’s most congested streets.Designed to the latest European codes of practice, computercontrolledand guided by highly accurate laser surveyequipment the TBM has used 3,800 kilowatts of electricity,equivalent to over 5,000 horsepower. It was designed inGermany with components manufactured in both Germany andChina and assembled in Guangzhou.The TBM has used its 50 steel cutting discs to cut through rock,and took about forty minutes to cut through 1.5 metres of16


hnological leadershiprock. It then stopped cutting for 40 minutes while the pre-castconcrete tunnel lining was erected. Low-level noise generatedduring the cutting cycle may be heard in buildings near the TBM,depending on the location and building size. For this reason andin compliance with Environmental Protection Department (EPD)regulations, the TBM would generally not operate at night.Detailed noise and vibration monitoring were also undertakento ensure compliance with the limits set.The TBM moved along at about 40 metres per week, andresidents were always advised of the TBM’s location andprogress throughout the tunnelling operation.Plastic formwork at Australian Embassy in Phnom Penh<strong>Leighton</strong> <strong>Asia</strong> is using a Vietnamese company’s leading-edgelightweight, plastic injection-moulded formwork system forthe structural works on the Australian Department of ForeignAffairs and Trade’s new Australian Embassy project in PhnomPenh, Cambodia.Works include a three-storey Chancery building with qualityfinishes and high-level security. <strong>Leighton</strong> is also introducing atough, new, lightweight panel system that significantly reducescrane and manpower requirements. The US$14.6 million<strong>Leighton</strong> project is scheduled for completion in 2009.with Wynn Resorts Group. It is on track for completion in thefirst quarter of 2010.The very confined site is immediately adjacent to the existingWynn Casino which operates 24 hours a day, seven days a weekand is accessed daily by 7,500 employees and 25,000 guests.In response to client concerns and tight programme deadlines,<strong>Leighton</strong> introduced two innovative approaches not previouslyused in Macau, a top-down construction of the basementconcurrent with the construction of the podium above, resultingin a significant reduction in timelines, and the introduction of aspecialist jump form system for the entire footprint of the tower.With podium levels rapidly progressing and basementconstruction complete, focus has shifted to the typical towerfloor construction where <strong>Leighton</strong> is pushing the envelope oflocal expertise and combining it with the best technologiesavailable. Rather than using the typical Hong Kong-style jumpform at the core walls only, <strong>Leighton</strong> has chosen to apply thetechnique to the entire building footprint.The client is delighted with the <strong>Leighton</strong> approach to the projectas it addresses safety concerns, whilst also raising a high profilefor the development.Panel developer, Vietnam’s Fuvi Mechanical Technology ofHo Chi Minh City, worked with <strong>Leighton</strong>’s site managementteam in Phnom Penh to customise the formwork systemspecifically for the Australian Embassy project.<strong>Leighton</strong> contributes to high profile of Macau resort<strong>Leighton</strong> <strong>Asia</strong> is utilising state-of-the-art Australian jump formtechnology and expanding its use with local expertise in relationto key projects across the <strong>Asia</strong> region. The Wynn Encore(previously known as the Wynn Diamond Tower) is the thirddesign and build contract for <strong>Leighton</strong>-China State joint venture17


<strong>Leighton</strong> <strong>Asia</strong>’s core values define who we are.They form the basis of the company’s sustainable practices and are key to our success in building a sustainablebusiness that meets today’s requirements whilst ensuring the needs of future generations.Our core values are:■ Be commercially competitive■ Recognise the needs of the community■ Act with integrity and fairness■ Provide a safe and healthy workplace■ Protect the environment■ Encourage innovation and technology leadership■ Create a fun, challenging and performance driven culture<strong>Leighton</strong> <strong>Asia</strong> Limitedwww.leightonasia.com

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