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