Annual Report 2019

Environmental, Social and Governance

As a leading provider of professional project and asset services in the energy, chemicals and
resources sectors, Worley is committed to high standards of Environmental, Social and Governance
(ESG) performance and to supporting our customers to meet their ESG objectives.

Our business

We have a business framework which embeds Environmental, Social and Governance objectives into the way we do business.

We help our customers meet the world’s changing energy, chemicals and resources needs.

About us

We are a pre-eminent global provider of professional project and asset services in the energy, chemicals and resources sectors. We are a partner in delivering sustained economic, social and evironmental progress, creating opportunities for individuals, companies and communities to find and realize their own futures. We can only do this with the support of our shareholders, earned by delivering sustainable earnings growth and a satisfactory return on their investment in a responsible manner.








Our people represent many nationalities and cultures and speak many languages. Their energy and resources are directed to deliver projects, provide expertise in engineering, procurement and construction and offer a wide range of consulting and advisory services.

We cover the full lifecycle, from creating new assets to sustaining and enhancing operating assets, in the energy, chemicals and resources sectors.

Our resources and energy are focused on responding to and meeting the needs of our customers over the long term and thereby creating value for our shareholders.

Our values

Our values are approved by the Board
and are communicated through the business. We exhibit these through:

Performance

  • Industry leadership in health, safety and environmental performance
  • Consistent results for our customers, delivering on our promises
  • People accountable and rewarded for performance
  • Innovation delivering value for our customers
  • Creating wealth for our shareholders

Relationships

  • Open and respectful
  • A trusted supplier, partner and customer
  • Collaborative approach to business
  • Enduring customer relationships

Agility

  • Smallest assignment to world-scale developments
  • Comprehensive geographic presence
  • Global expertise delivered locally
  • Responsive to customer preferences
  • Optimum customized solutions
  • Advice to action

Leadership

  • Energy and excitement
  • Integrity in all aspects of business
  • Minimum bureaucracy
  • Committed, empowered and innovative people
  • Delivering profitable sustainability
  • Innovation delivering value for our customers

Corporate governance

The Board provides oversight and leadership for our business. The Board regards good corporate governance as critical in achieving our objectives and high standards of safety and performance.

The Board has adopted appropriate charters codes and policies to achieve this.

We recognize that we have responsibilities to our shareholders, customers, employees and
suppliers as well as to the environment and the communities in which we operate.

Different elements of ESG governance are overseen by the Board Audit and Risk Committee and the Board Health, Safety and Environment Committee.

Leadership and culture

Our approach to a responsible business

  • Our reputation for honesty, integrity and ethical practices is our most important asset.
  • We are committed to acting lawfully, ethically and responsibly and conducting our business to the highest standards.
  • We expect all our people and partners (including suppliers and agents) to uphold this commitment and live up to our reputation every day.

Embedding our approach

  • Our management system establishes a globally consistent approach for how we do business and is currently being refreshed to incorporate the best from ECR, acquired during the period.
  • Our Code of Conduct sets the standard for ethical and professional behavior we expect our people and partners to uphold.
  • EcoNomicsTM describes the philosophy of providing profitable sustainability to our customers.
  • The Worley Foundation is one of the ways we deliver sustained economic and social progress.

Environment

Climate change

Worley’s greatest contribution to addressing climate change continues to be through the provision of technical advice and project support to our customers. We support them via the application of new technologies and improved design and operations to deliver lower carbon intensity outcomes as they navigate the energy transition. A sample of our activities is presented on page 22.

Our Climate Change Working Group (CCWG) was established in FY2018 to develop a strategic climate change program for Worley, including design of an implementation program for the relevant recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD) across the four thematic areas of governance, strategy, risk management and metrics.

The CCWG has representation from the Strategy, Planning and Investor Relations, Assurance, Corporate Affairs and Energy Transition groups. It reports periodically on a number of areas including transition risk and scenario analysis to the Board Audit and Risk Committee. It reports on minimizing the Worley Group’s carbon emissions, and on actions to protect our people and assets from the physical impact of climate change, to the Board Health, Safety and Environment Committee. Our climate change activities and strategy are supported by active engagement with our people, customers and investors.

In FY2019, we continued working towards relevant disclosure consistent with the recommendations of the TCFD. We completed a risk and opportunity assessment to identify the transitional exposure of the business and the physical risks posed to our people and assets. We identified the opportunities associated with supporting our customers as they navigate through how to achieve their climate change goals and the implementation of technologies and efficiencies required for carbon reduction and energy transition.

We will refine the risks and opportunities in light of the acquisition of ECR, prior to commencing detailed scenario analysis. This will be used to evaluate the resilience of our lines of business and sectors to the risks and opportunities linked to the energy transition and the physical impacts of climate change. We have developed an implementation roadmap for progressive adoption of relevant TCFD recommendations and we are currently piloting scenario analysis across sectors with a major customer.

Our assessment against the 11 elements of the TCFD framework for the period is presented below. We will disclose our further progress in FY2020.

We will continue to analyze the physical and transitional exposures to our business posed by climate change in order to capture associated opportunities in our key markets of energy, chemicals and resources and to further enhance the resilience and agility of our business.

1,350+

New Energy projects globally

Climate change position statement

We recognize that climate change will have significant implications for the industries we serve. Together with our customers and industry partners, we use the principles of EcoNomicsTM and the United Nations (UN) Sustainable Development Goals to help drive solutions for a lower carbon world. We are committed to being part of the solution, to reducing our own
emissions intensity and protecting our people and assets from the physical impact of climate change.

Climate change strategic actions

We have committed to the following strategic actions:

  • minimizing our own carbon emissions;
  • responding to our industry and customers’ climate change needs;
  • protecting our people and assets from the physical and transitional impact of climate change;
  • demonstrating our corporate commitments to climate change as we educate, measure and report progress on our climate related disclosures;
  • investing in and growing our New Energy business, particularly in renewables and distributed energy; and
  • advising customers on carbon intensity reduction programs.

Solar

166+

Solar photovoltaic (PV) projects

485 MW

Largest PV project

126+

Solar concentrated solar power (CSP) & hybrid projects

Wind

437+

Onshore wind projects

310 MW

Largest onshore wind farm – 365 turbines in 362 days

105+

Offshore wind projects

2,600 MW

Largest offshore wind farm

Hydropower

200+

Hydropower projects

10 GW+

Construction within the last 15 years

20,342 MW

Largest hydropower project

210 GW+

Total generating capacity

Hydrogen

20+

Green or blue hydrogen roles undertaken globally, including pilot plants

30 GW

Largest green hydrogen electrolyzer studied, combined with offshore wind

20+

Hydrogen pathways considered in commercial detail

Geothermal

31+

Geothermal projects globally

1,520 MW

Ongoing asset services support for over a decade at the largest geothermal field in the world, The Geysers Power Generation Complex

Biomass & Waste to Energy

134+

Biomass or Waste to Energy projects

200 MW

Fuel conversion from Coal to Biomass

20+ years

Designed and operating a co-gen facility fueled partly using landfill gas

15 million

Gallons/year of renewable jet fuels, design, fabrication and construction support

Smart &
Distributed Energy

75+

Energy storage projects

16

Battery (BESS) projects

80 kW

Smallest BESS Project

30 MW

Largest BESS project

67+

Distributed energy systems projects

Over 17 years

Specialized demand response and energy efficiency global experience

Recommendations Assessment
Governance - Disclose the organization’s governance around climate-related risks and opportunities

a) Describe the board’s oversight of climate-related risks and opportunities

b) Describe management’s role in assessing and managing climate-related risks and opportunities

  • Audit and Risk Committee charter
  • Climate change position
    statement
  • Climate Change Working Group
  • For policies and charters refer to the Corporate Governance page in the Investor Relations section of the Group’s
    website (www.worley.com)
  • Annual Report p. 21, 22
Strategy - Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material

a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term

b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning

c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario

  • Investor Day pack
  • Material risks
  • The Investor Day pack is available from the Reports & Presentations page in the Investor Relations section of the Group’s website (www.worley.com)
  • Annual Report p. 21, 35
  • Corporate Responsibility Report p. 14 – 18
Risk Management - Disclose how the organization identifies, assesses, and manages climate-related risks

a) Describe the organization’s processes for identifying and assessing climate-related risks

b) Describe the organization’s processes for managing climate-related risks

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management

  • Climate change risk assessment
  • Climate change scenario analysis
  • Responsible Business Assessments
  • Carbon Disclosure Project (CDP) report
  • Annual Report p. 35
  • Corporate Responsibility Report p. 12, 15
  • CDP report FY2018
Metrics and Targets - Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material

a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks

c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets

  • Greenhouse Gas Emissions
  • Annual Report p. 27
  • Corporate Responsibility Report p. 22, 23
  • CDP report FY2018

Case Study
Supporting the energy transition

Equinor hydrogen production plant with carbon capture and storage (CCS)

Worley is completing a feasibility study for Equinor to evaluate the possibilities for building a hydrogen production plant, including CO2 capture, liquefaction and export facilities, at Eemshaven in the Netherlands. A hydrogen/nitrogen mixture will be supplied as fuel to an existing natural gas-fired power plant that will be converted into a hydrogen-fueled power plant designed to lower the plant’s carbon emissions at a large scale and dispatch hydrogen to a future hydrogen market via a hydrogen pipeline and storage facilities.

To avoid CO2 emissions from the hydrogen production process, up to two million tons per year of CO2 will be captured and then liquefied for ease of transportation to Norway, where it will be injected and stored in an offshore reservoir.

The study being performed by Worley focuses on the objective of selecting the most effective reformer technology for hydrogen production together with a suitable CO2 capture technology. Worley is also delivering the conceptual design of the plant as a basis for economic evaluation and further project definition.

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Social

Our people

The Group undertook various diversity and inclusion activities in FY2019, including:

  • maintaining our Diversity and Inclusion plan as agreed by our leadership team, with a focus on increasing gender diversity at all levels and increasing our early career hires;
  • continuing our talent sponsorship program for active development of our top female talent; last year, 46% of the identified women participating in our talent sponsorship program progressed to nextstep developmental roles;
  • conducting pay gap assessments across comparable roles, tiers and regions. Our global pay gap between male and female remuneration reduced approximately 3.7% (varying by office). At the manager and senior manager roles, the salary gap reduced by approximately 6% and 1.6% respectively;
  • delivering cultural awareness, inclusive recruitment and promotion training and bias awareness workshops in some locations;
  • creating our LGBTIQ+ and allies network group, with executive sponsor and steering committee representation; and
  • commenced transitioning our employee network groups from both WorleyParsons and ECR into a Worley network model.

Worley is committed to unlocking the potential of our people and our culture. It’s important we recognize our talented people, celebrate our diverse community and connect our people through networks where we can relate to others, collaborate, learn and continue building a culture of inclusion and positive impact. Our people networks are an integral tool to ensure we connect globally, educate and inspire each other and to provide a safe, inclusive and supportive workplace.

We have commenced integrating our employee network groups from WorleyParsons and ECR; this involves engagement with our people on what vision and programs they want to champion both internally and within the communities in which we operate. Our employee networks represent the rich diversity of the Worley community.

This year we reached out to over 574,000 followers across our social media platforms to communicate our news with our broader community. Of our 166 posts on LinkedIn this year, 32 were community related, and we made over 10 million impressions across newsfeeds globally.

Internal communication websites, online discussion groups and emails are used to deliver important messages. Our people are encouraged to openly share their opinions and subject matter expertise and voice their concerns.

Open, honest and transparent communications were a hallmark of internal communications before, during and after the acquisition of ECR. Leading up to transaction close, a series of 12 targeted ‘playbooks’ were produced to help our people understand in detail the changes that would take effect along with the publication of regular questions and answers, webinars, town hall meetings and regular, consistent updates to all parties. For the ECR audience, 16,000 views were recorded for three of the updates.

Following transaction close, over 85 town hall meetings were held across the world in the first week. Our leadership teams across the world were meeting and greeting our people at all sites, giving the opportunity for discussion and feedback.

Actively seeking views, and listening to our people to build our values and inform our future, are an important part of our communications strategy.

Protecting the personal information of our people and the information of our customers and our business is a priority. We have a dedicated team managing and monitoring a number of enhanced solutions such as intrusion blocking, endpoint security, data and email encryption, enhanced protection for sensitive data stores, and 24/7 system and access monitoring to prevent/stop unauthorized activity. The Worley Cyber Security Program operates in coordination with the newly formed cross divisional Information Security Council and the Worley Data Protection Office.

Our teams maintain an industry-leading performance in safety. Our management framework has been guiding the way we work at Worley over the past 10 years. It encompasses the tools and processes we follow to ensure the wellbeing of people, assets and the environment. Recently, we have begun incorporating the principles of human performance, in line with our customers and industry. Our management framework will evolve to reflect these changes.

Case Study
Safety

Safety week

We celebrated safety week as Worley from 6 to 10 May, which was an opportunity to start building a collective culture.

The theme for the week was “Stronger Together, Safer Together” and our people were encouraged to organize activities and events throughout the week.

The following initiatives were kicked off during safety week:

  • SharePoint site with suggested activities and resources to support local activities and events;
  • a safety week Yammer group was established to encourage discussion and sharing of ideas and activities. There were 2,922 active people in this group and 30,190 read messages, most of these during safety week itself; and
  • a 24-hour virtual conversation about safety was run to enable our people to connect with leaders in an informal setting and experience a session of open dialogue on safety. The virtual discussion was a great success with 46 leader hosts, 21 facilitators, and more than 420 participants, from over 35 different locations participating during the 24-hour period.

Image: A project team in Uganda showing their safety week commitment pledges.

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Communities

Since 2013, the Worley Foundation has supported the execution of high-impact community projects around the world, changing the lives of thousands of people. An extension of the Corporate Responsibility programs and activities and governed by the Worley Foundation Council, it aims to become a vehicle for direct corporate investment, fundraising and volunteering and highlight our corporate responsibility credentials to our stakeholders.

The social impact delivered from a broad range of Worley Foundation projects continues to grow with these projects supported in FY2019:

  • sponsorship of another 16 Worley people to attend the Pollinate Energy Professionals Fellowship, India;
  • Kerala Floods matching donation;
  • phase 2 of water and sanitation workshops with the Centre of Affordable Waste and Sanitation Technology, Colombia;
  • phase 2 of a project to install water facilities and solar power and refurbishing school facilities across a number of villages in India;
  • African capability building workshops regarding corruption and bribery run in conjunction with Transparency International;
  • supporting Worley employees to join a mentorship program with Lean in Energy;
  • assisting vulnerable children with Child and Youth Care Chile;
  • engagement in high schools through Power of Engineering across Australia and other selected offices; and
  • the Cystic Fibrosis Foundation.

The Worley corporate responsibility champions are the heart and soul of Worley’s local corporate responsibility activities. Developing our local communities via skills transfer, education, local employment and enterprise development supports our objective of long-term positive social impact in the communities in which we work and, in turn, supports progress towards the UN Sustainable Development Goals.

In WorleyParsons the following occurred:

  • direct participation in over 296 corporate responsibility activities across 21 countries, involving over 6,000 Group personnel; and
  • support of local communities through the network of corporate responsibility champions across 40+ offices.

During FY2019 we welcomed 250+ new colleagues from ECR into the corporate responsibility champions employee network. During June 2019, we had an internal communications theme of corporate responsibility as one step in the process to build a collective culture in our new organization. Communications were shared with our people raising their awareness of the key corporate responsibility programs available within Worley, such as the Worley Foundation, and the Pollinate Energy Professionals Fellowship, along with key external initiatives such as the UN Sustainable Development Goals.

Worley also continued to support our customers with their sustainability programs through our project delivery and consulting services.

As we become the market leader in our sector in FY2020 we will review our corporate responsibility program to ensure it is aligned with issues meaningful to society and of relevance to our Group activities.

Case Study
Science, Technology, Engineering and Mathematics (STEM) education

The future of engineering: supporting STEM education

Worley is a strong supporter of STEM education in schools across the world.

Our collaboration with Power of Engineering went global with a STEM education workshop facilitated by some of our Mumbai engineers at Nanhi Kali Girls at VPS Urdu School No. 2 in India. Our volunteers encouraged girls to study engineering or design and our volunteers enjoy seeing the creativity on display.

For the past two years Worley has proudly supported Nakibots; an afterschool club designed to help intermediate and high school children learn about STEM.

The students create and build robots which are entered into national and international competitions. The first all-female team from New Zealand was crowned winners of their division at the world championship for middle school students and best all-girl team at the VEX IQ Robotics World Championships, the biggest and fastest growing youth robotics competition in the world. The girls went on to place sixth in the world across 400 teams in the wider competition, in front of 20,000 spectators.

Our engineers in Sarnia teamed up with a local girl guides group for some fun and challenging engineering activities. All to celebrate Introduce a Girl to Engineering Day, a movement to inspire girls to pursue STEM.

Our colleagues from Rosenberg Worley welcomed 30 students from Godalen High School for an onsite tour arranged by our customer Equinor. During the visit, the students were encouraged to pursue STEM careers and were also given a sneak peek of the newly constructed bridge that is now ready to be transported to the Johan Sverdrup oil field in the North Sea.

During Learning at Work Week Worley people were invited to bring their children or young relatives into the office to learn more about what they do at work, and engage them in STEM learning. During Worley’s Parents’ and Children’s Evening, children had the opportunity to get hands-on with several different STEM-related activity stations. This included exploring a real-life offshore facility using virtual reality, trying on and learning about the importance of PPE, testing their construction skills with LEGO® and creating working electrical circuits.

Our Worley team proudly sponsored the Year 10 Western Australia (WA) Science and Engineering Challenge, where over 1,200 year 10 students from 40 local schools across WA competed in STEM-related challenges to help encourage and inspire those students to build their future careers within this field.

Our team volunteered their time and supervised one of the challenges, which was to design and build an earthquake-proof apartment block using limited materials, that then underwent seismic testing.

Supporting Indigenous people across the world

Worley is committed to meaningful engagement with Indigenous communities. We recognize that success depends on our demonstrated understanding of and respect for cultural values and the environmental, social and governance issues that affect Indigenous people.

We have adopted the term Indigenous consistent with United Nations nomenclature; however, local preferences are respected and utilized across our business for Aboriginal, traditional owners, First Nations etc.

During the period Worley commenced development of a Reconciliation Action Plan (RAP) to provide a framework for cultural awareness, engagement and inclusion across the organization in a co-ordinated fashion. Worley will use the RAP to support development of respectful relationships and create meaningful opportunities with Aboriginal and Torres Strait Island peoples. Further to this, during the period one of our Indigenous colleagues established an internal networking and educational social networking group for sharing information and activities relating to Indigenous Australians.

Since 2013, our Australia West operation has partnered with the Governor Stirling Senior High School to facilitate a work experience program for their Indigenous students in years 11 and 12 who participate in the Follow the Dream Program, designed to help Aboriginal students reach their career potential. Our work experience program provides students with an opportunity to gain exposure to working in an office and the different types of roles that exist to support their decisions after graduating from high school.

This year, as an extension to our work experience, we are offering a year- long traineeship program to students who show an interest in Business Administration or workplace HSE.


Jennifer Moore and Jacqueline Keeshig at Indigenous Career Expo of Nawash and Saugeen First Nation communities in Canada

Worley Canada has a been a proud member of the Canadian Council for Aboriginal Business (CCAB), a national, member-based organization with the mission to foster sustainable business relations between Aboriginal and non-Aboriginal peoples, businesses and communities, for the past several years.

This year Worley Canada announced it is participating in the Progressive Aboriginal Relations (PAR) Certification program through the CCAB, which will involve development of a framework over three years and external verification to determine progress and commitment.

During FY2019, Advisian announced a new joint venture with the Mikisew Group of Companies, which is owned by the Mikisew Cree First Nation (MCFN).The venture, Mikisew Advisian Environmental, will focus on providing world-class environmental services in the Athabasca region incorporating traditional knowledge and values into program designs and scopes, while providing career opportunities for MCFN members via the establishment of education-to-employment programs and leadership opportunities.

The Mikisew Group of Companies service the Alberta oil sands in various industries including site services, fleet maintenance, transportation services, emergency medical response and fire response, camp and catering services, construction services, structural steel, electrical and instrumentation services, aerodrome handling and facilities maintenance.

Red Deer College, Montana First Nation, WorleyCord and the Government of Canada formed a partnership to deliver a Flexibility and Innovation in Apprenticeship Technical Training (FIATT) project in central Alberta. The project combined the use of a redesigned curriculum delivery model and learning technologies to prepare 50 Aboriginal learners for a career in welding. Many of the students have completed their technical training and are on their way to finding jobs in their chosen trades.

Worley participated in an Indigenous Career Expo in Saugeen First Nation and Chippewas of Nawash Unceded First Nation communities, with a goal to ensure that Indigenous individuals were given equal opportunity to engage with suppliers and explore the potential career opportunities coming into the Saugeen Ojibway Nation Traditional Territory.

Worley understands that business, by creating employment, serves a critical role in driving inclusivity and improving social equity in communities. In South Africa, Worley’s Supplier Development (SD) programme launched in 2013, calls for active participation in addressing socio-economic challenges as well as transformation in the engineering sector by partnering with independent, sustainable, small-scale black-owned businesses to jointly deliver engineering services in the energy, chemicals and resource sectors of South Africa. The Worley SD programme demonstrates the positive socio-economic transformation that business can foster.

NANA WorleyParsons provides project delivery services to remote Arctic and Subarctic communities through a joint venture partnership with NANA,an Alaska Native corporation owned by the more than 14,500 Iñupiat shareholders who live or have roots in northwest Alaska. Now 270-people strong with a satellite office in Gulfport, Mississippi, NANA WorleyParsons largely serves Anchorage, the North Slope and other regions across Alaska through engineering, procurement, project and construction management, commissioning and developing 3D scanning solutions fit for polar and subpolar climates. Enabling local employment opportunities and education programs throughout the state, NANA WorleyParsons has become the leading brownfield and greenfield EPCM services provider in Alaska. With the collective backing of both parent companies, NANA WorleyParsons continues to secure a strong foothold for operations in Alaska and beyond.

* Iñupiat are Inuit people whose ancestral heritage in the region dates back to circa 1000 B.C.



Governance

As an Australian incorporated company, WorleyParsons Limited complies with the Corporations Act 2001. In addition, as an entity listed on the Australian Securities Exchange (ASX), WorleyParsons Limited complies with the ASX Listing Rules. Those rules require listed entities to publish a corporate governance statement and other key documents on their company websites and to provide periodic and continuous disclosure to the market.

Our Corporate Governance Statement reports on the 3rd Edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations and is located in the Investor Relations section of our Company website. An implementation program has commenced to adopt the 4th Edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations and these will be reported on when it takes effect for FY2021.

We structure our corporate disclosure through an integrated process aligned to leading international reporting standards. This year, our ESG-related reporting aligns with:

  • the internationally-recognized Global Reporting Initiative (GRI)Comprehensive standards;
  • our requirements as a signatory to the UN Global Compact; and
  • our adoption of the UN Sustainable Development Goals.

In addition, we disclose our ESG-related performance via:

  • the Carbon Disclosure Project (CDP) sharing how we measure, disclose and manage vital environmental information;
  • investor presentations; and
  • mandatory diversity reporting requirements, including Australian and UK and relevant entities submitted Workplace Gender Equality Reports for the reporting period.

Following the acquisition of ECR, Worley recognises the importance of cultural transformation to build a new and common sense of identity that engages our people, helps to influence and drive ethical behaviour, and helps prepare Worley for sustainable growth.

Worley has begun a series of approximately 100 workshops across our global business, designed to gather data and insight from across the organization, at all levels, whilst also engaging and priming a large cross-section of people for the next steps in the transformation journey. This is part of a larger transformation plan that will accelerate and become more visible in 2020 reaching further into the organization and across boundaries to customers, partners and communities.

A corporate responsibility materiality review was conducted in FY2018 where we asked over 500 of our stakeholders to share the sustainability issues, risks and opportunities which were important to them. The results were ranked and aligned to the UN Sustainable Development Goals. We plan to complete materiality reviews biennially with the next review to be conducted in FY2020.

Issues of most concern across stakeholders with the highest impact on Worley

  • Affordable and clean energy
  • Decent work and economic growth
  • Industry, innovation and infrastructure
  • Climate action
  • Clear water and sanitation

Worley is committed to working responsibly with our customers and suppliers to achieve results that grow our company, reward our shareholders and our people and contribute to our communities. We acknowledge our responsibilities to the communities in which we operate. Our Corporate Responsibility Policy outlines our commitments to: Governance, Ethics and Transparency, Our People, Human Rights, Community, Fair Operating Practices and Supply Chain, and the Environment.

With approximately $429 million paid in effective tax contributions in FY2018, there is a significant direct economic contribution made in economies where we operate. As our people spend their wages locally on diverse goods and services, there is a further, indirect economic contribution. We do not measure this indirect economic benefit globally, but it is an important component of our contribution in over 50 countries where we operate.

Our teams continue to consolidate Group level reporting across a number of key indicators that track our progress in corporate responsibility.

We continued our global corporate responsibility champion forums to provide guidance and support for corporate responsibility and diversity and inclusion initiatives and promote engagement with local networks. These champions report progress and track contributions by our people. The Group’s contributions are measured in terms of Australian dollar contributions by operations and by our people, and volunteer time contributions by our people.

Worley’s approach to the reporting of safety metrics is to include our employees and also contractors and JV partner employees where Worley has operational control. The Group uses the United States Occupational Safety and Health Administration reporting requirements for Total Recordable Case Frequency Rate (TRCFR) and Lost Workday Case Frequency Rate (LWCFR). Two separate figures for each of these metrics are reported this year, to capture (1) data from WorleyParsons, and (2) a figure calculated using 12 months of data from WorleyParsons and data from ECR after it became part of Worley on 26 April 2019. Only the TRCFR figure for the WorleyParsons business has been subject to independent assurance.

The Group’s corporate responsibility indicators for FY2019 were:

Indicators1 2019 2018
Contributions by operations2 $0.71 million $1.10 million
Contributions by personnel members2 $0.91 million $0.76 million
Volunteer hours by personnel members (community/internal)2 13,864 hours 25,501 hours
TRCFR2 0.14 0.15
LWCFR2 0.03 0.02
TRCFR3 0.14 0.15
LWCFR3 0.03 0.02

 

As we adopt the relevant recommendations of the TCFD, we have chosen to disclose a climate change position statement and strategic actions as part of our Climate Change Program. We will continue to analyze our physical and transitional exposures to climate change and disclose our progress in FY2020.

The Group completed a response for the CDP in FY2018 which was reported in July 2019. The Group’s energy consumption and greenhouse gas emissions were recorded to assist the Group to measure and reduce its energy consumption and to reduce its greenhouse gas emissions.

An energy target for FY2020 was set at 5% reduction of total carbon dioxide equivalents (tCO2-e) against base year FY2016. At the end of FY2018 a reduction of 24% on the FY2016 baseline had been achieved. Due to the acquisition of ECR and associated significant change in office footprint and consolidation of office locations that is underway we have not set a new energy reduction target but we continue to reduce our emissions. Consolidation of office areas has contributed to this reduction, along with building upgrades and locally-designed initiatives to reduce energy consumption.

Data for greenhouse gas emissions and energy consumption for FY2018 and FY2017 were:

  2018   2017  
Indicators Per personnel member1 Total Per personnel member1 Total
Greenhouse gas emissions tCO2-e 1.82 47,288 2.19 49,853
Energy consumption MWh 3.81 99,143 5.27 120,090
  • 1
    Personnel include employees and contractors.

 

The Board has set measurable objectives for achieving gender diversity. The Group is focused on increasing female representation within the Group, women in senior executive positions and women non-executive directors. The Group’s progress over time is included in the FY2019 Corporate Governance Statement and progress towards achieving the objectives in FY2019 is set out in the table below:

Measures Objectives 2019 2018
Women employees1 Increase the proportion of women employees to 30% by 2020 18% 21%
Women senior executives2 Increase the proportion of women senior executives to 25% by 2020 26% 26%
Women Non-Executive Directors Increase the number of women Non-Executive Directors to 3 by 2020 4 3
  • 1
    This includes both the Group’s employees and contractors. This number was comprised of 9% women in our crafts/hourly businesses and 22% women in the remainder of our businesses. The gender data of ECR people is provisional only at this stage and, due to the timing, has not been able to be verified. There can be difficulties in the quality of gender data due to voluntary self-reporting in some jurisdictions (notably the United States where the Company now has a sizable footprint). The percentage women employees metric is provided on this basis.
  • 2
    Senior executives comprise all employees and contractors at the CEO-1,
    CEO-2, CEO-3 levels, as at 6 August 2019.

We want to know that our customers take a responsible approach to business, as we do. This year marked the first full year of completing responsible business assessments for new projects and contracts across our business. Triggers embedded in our sales and risk assessment processes for new projects and contracts assess the risk profile of customers and projects.

Our Code of Conduct training was delivered to more than 24,500 WorleyParsons contractors, employees and business partners during the period. Approximately 16,000 ECR personnel undertook equivalent Code of Conduct training over the period prior to migrating to Worley. Code of Conduct training for field-based personnel is to be delivered during first half of FY2020, and training of office-based personnel is planned for the second half of FY2020.

An ethics helpline is available to all our people across 51 countries.

Worley has an Ethics Reporting and Whistleblower Standard which provides protection to whistleblowers and encourages reporting of contraventions. The key mechanisms for the protection of whistleblowers are confidentiality, anonymity, protection of employment conditions and appropriate support to prevent retaliation.

Worley complies with all applicable prevention of bribery and corruption legislation, including the prohibition of facilitation payments, and has zero tolerance for bribery, fraud and other types of corruption. We continue to apply our Gifts and Entertainment standard, which includes a strict protocol for registering gifts and entertainment.

In accordance with UK legislation, Worley provided its first annual modern slavery statement in 2019. The statement describes the main actions we have taken during the financial year to address modern slavery risks in our business and in our supply chains. In FY2020, further improvements will be made to our supply chain policies and procedures including updates to our pre-qualification process, contract selection and inspection/expediting supplier visits. We will also prepare our first annual Australian modern slavery statement under the Modern Slavery Act 2018.

Independent assurance supports our commitment to transparency and accountability. To provide confidence to our stakeholders in our reporting, Ernst & Young provided limited assurance, in accordance with the Australian Standard on Assurance Engagements ASAE 3000, over selected corporate responsibility performance data. The assurance statement identifies the corporate responsibility performance data that EY reviewed, and is linked within the Worley FY2019 Corporate Responsibility Performance Report.

Limited assurance is planned for FY2020 corporate responsibility indicators.

A more comprehensive analysis of our corporate responsibility program and progress made is shared in the Corporate Responsibility Performance Report. The report is published annually and is issued as our ‘communication of progress’ for the United Nations Global Compact, showing how we have adopted the Global Reporting Initiative standards.

Please refer to our company website for the FY2019 Corporate Responsibility Performance Report.


Case Study
Supporting human rights

Supporting human rights: access to employment

Worley is proud to champion access to employment for refugee groups. One of our people arranged for a group of skilled refugee engineers, new to Australia, to come to our Melbourne office in September 2018 for tips on updating their resumé, writing their cover letter and interview techniques. Overwhelmed with volunteers, the workshop was a success with three engineers finding employment with Worley and Advisian. A number of other attendees found employment at other organizations through the contacts made at Worley.

Six months later, a group of engineers with refugee backgrounds including Jamila Alarkan and husband Tony Bitar arranged for a second group of refugee engineers to come into our offices for job seeking advice and mentoring. Following the success of these events, the Melbourne office now utilizes personnel agencies who specialize in the placement of refugee engineers, recognizing the rich experience this diverse group brings to our country and our organization.

Jamila, now a graduate engineer in the Melbourne office summed up her perspective well:

“I know first-hand how daunting it is to find employment in a brand new country where English is not your first language. It can be overwhelming and lonely, when you don’t know anyone. Contacts are important and that is what we are trying to do here, help overcome the additional barriers new arrivals have to face when looking for employment. Thankfully we are able to use Worley networks to help overcome some of the barriers for people who are in the same position I was in a year ago.”

Image: Andrew Wood, Jamila Alarkan, Tony Bitar and Sue Brown talking to refugees at event in Melbourne office, March 2019

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