Human Capital

Commitment to a Safe and Healthy Workplace

Occupational health and safety (OHS) of CapitaLand’s employees, tenants, contractors, suppliers and the communities who use its properties, is of utmost importance to CapitaLand. Effective OHS management is part of risk management and deemed to enhance staff productivity and morale.

CapitaLand’s OHS framework includes identifying material issues, setting policies, ensuring accountability within the company, developing action plans and engaging stakeholders.

Framework
Material Issues and Business Case
Workplace health and safety of staff
Safety of its properties for stakeholders including staff, residents, shoppers, tenants and the public
Supply chain managements
Effective OHS management is part of risk management and deemed to enhance staff productivity and morale.
Policy
  • Reduce occupational injury rates to achieve zero harm
  • Provide a robust OHS Management System
  • Meet and exceed OHS legal requirements
  • Promote a culture of individual ownership and responsibility for OHS management
  • Seek proactive support and participation from CapitaLand’s stakeholders including top management, all employees, contractors, suppliers and tenants
  • Drive continuous improvement in OHS performance
Accountability
  • CEOs are accountable
  • OHSAS 18001 certified OHS Management System ensures accountability to relevant managers and all staff
  • Key performance indicators (KPIs) linked to remuneration of all staff
Method/Action Plan OHS Management System
  • Legal compliance
  • Identification of hazards and risk assessment
  • Sustainable Buildings Guidelines – Design for Safety (DfS)
  • Safe operations – OHS Standard Operating Procedures (SOPs)
  • Training and awareness

KPIs
  • OHS performance of staff
  • Stakeholder engagement
  • Appoint OHSAS 18001 certified main contractors or OHS legal compliance on-site
  • Give preference to OHSAS 18001 certified vendors/suppliers; in Singapore, non-OHSAS 18001 certified vendors/suppliers encouraged to achieve BizSAFE Level 3 and above.
Stakeholder Engagement
  • Involve in national policy making
  • Educate end-users, including tenants, shoppers, residents and the general community
Environmental Capital

Top Management Commitment and Staff Involvement

CapitaLand champions OHS with top management commitment and staff participation through an integrated Environmental Health and Safety Management System (EHSMS) and stakeholder engagement activities. CEOs are accountable for the OHS performance of their strategic business units (SBUs). Please refer to the management structure and EHSMS in the Environmental Capital chapter of this report.

All staff assume personal responsibility towards OHS and are encouraged to be forthcoming in reporting all OHS-related incidents, including non-compliances and non-conformities to the relevant business unit management representatives. This list is updated in the CapitaLand intranet.

Key Performance Indicators (KPIs) Tied to Remuneration

CapitaLand incorporates OHS KPIs which are linked to remuneration of all staff, including top management.

Robust OHS Management System

CapitaLand’s approach to health and safety is guided by its OHS Management System. Established in Singapore in 2009, it extends to Australia, Belgium, China, France, Germany, India, Indonesia, Japan, Malaysia, Philippines, Spain, Thailand, Vietnam and the United Kingdom (UK). CapitaLand’s EHS policy outlines the company’s commitment to manage OHS issues. Please refer to the EHS policy outlined in the Environmental Capital chapter of this report.

Certified to International Standards

The OHS Management System has been externally audited by a third-party accredited certification body to OHSAS 18001 standards, a recognised international standard for OHS Management Systems.

Since 2012, the Group achieved OHSAS 18001 certification for its OHS Management System in 15 countries1 – covering all markets with investment properties. This encompasses all business functions: property management, property development, corporate management and operations.

Global Internal and External Audits

CapitaLand has put in place an internal audit system to ensure that the conformance and effective implementation of its OHS Management System is aligned with OHSAS 18001 standards. Internal audits are conducted in all 15 countries where CapitaLand has investment properties at least once a year, covering at least 50% of the sites in each country. In addition, external audits are conducted annually by a third-party accredited certification body.

An annual audit of the OHS Management System provides assurance to top management and external investors that it is legally compliant and aligned with the company’s best practices.

Compliance

Legal requirements are reviewed on a quarterly basis, and compliance to these requirements are evaluated annually.

Risk Management of OHS Hazards

Identifying OHS hazards and assessing their risks are a key component in CapitaLand’s OHS Management System. CapitaLand strives to eliminate or minimise such hazards and risks though various measures.

Hazards Identification and Risk Assessments (HIRA) are reviewed annually or when appropriate, for example, following a change in processes.

OHS hazards are identified for the administration, development and operational functions of CapitaLand’s businesses and their risks are assessed. Examples of hazards include ergonomics, falling from height, falling objects and working in an enclosed space. The SBUs have put in place various SOPs to minimise the occurrence of such hazards.

Training and Awareness

To facilitate the effective implementation of its OHS Management System, training and awareness programmes are planned for all staff. Please refer to the Environmental Capital chapter of this report for more details on EHS training programmes. In addition, every employee was briefed on how to respond to OHS incidents at the workplace. And as part of staff well-being, CapitaLand regularly organises lunchtime talks relating to health and related issues like parenting to help manage stress for staff. It also organises financial resilience talks such was financial planning where over 100 staff attended. Some of the abridged material is made available on the CapitaLand intranet for the staff to access in their own time.

Measures to Mitigate Risks of Serious Diseases

CapitaLand responds to the threat of serious diseases in a timely manner by putting in place appropriate measures to mitigate risks. When necessary, the human resource department disseminates medical and travel advisories to all staff. Information on pandemic planning is made readily available for all staff on the staff intranet.

Measuring Our Safety Performance

2016 Occupational Health and Safety Targets and Performance
Targets Performance
OHSAS 18001 certification for its OHS Management System in all markets with investment properties
  • Achieved OHSAS 18001 certification in 15 countries covering all markets with investment properties
Zero incident resulting in staff permanent disability or fatality
  • No staff work-related permanent disability or fatality
All main contractors appointed to be OHSAS 18001 certified (or to comply fully with local OHS laws and regulations, annually audited by an independent accredited assessor)
  • 6 main contractors appointed in 2016 and are OHSAS 18001 certified
  • 5 Workplace Safety and Health (WSH) SHARP and RoSPA awards

CapitaLand’s performance monitoring includes all employees (both full-time and part-time) involved in the daily operations and project management of its development sites.

In 2016, there were no work-related fatalities or permanent disabilities. There were 51 work-related injuries2 (2 in Singapore, 18 in China and 31 in rest of the world). Most of the staff were from the operations teams. All affected staff resumed normal work after medical leave. In all cases, detailed investigations were conducted and all necessary follow-up action undertaken. CapitaLand will continue to monitor the performance, reinforce safety standards and fine-tune its SOPs for improvement.

2016 2015 2014
CapitaLand Staff Singapore China Rest of the World Group Overall Group Overall Group Overall
Number of work-related injuries 2 18 31 51 57 68
Work-related fatalities/permanent disabilities 0 0 0 0 0 0
Injury rate3 (number of work-related injuries per million hours worked) 0.5 1.2 3.7 1.9 2.1 2.8
Lost day rate (number of lost man-days
per million hours worked)
9.5 58.0 36.7 44.0 65.9 101.2
Absentee rate4 (days per employee per year) 7.4 1.9 4.6 3.5 3.9 4.3
CapitaLand Staff

Staff Wellness

CapitaLand aims to provide a work environment that is safe and contributes to the general well-being of its employees.

In Singapore, CapitaLand implemented a Total Well-Being Programme to promote staff health and well-being. It included an annual free on-site health screening (optional test packages were included to provide more comprehensive coverage). Staff health screening results were benchmarked against national statistics and trended. High total cholesterol indicator worsened compared to the year before but was better than the national average, whilst weight management remains an area of concern. Regular exercise sessions, e.g. yoga and Zumba classes, continued to be organised to promote an active lifestyle. Tips on healthy living and exercise were updated on the CapitaLand intranet.

OHS Stakeholder Engagement*

CapitaLand understands the important role that end-users of its buildings and its supply chain play. It actively involves its staff, tenants, contractors, suppliers as well as the wider community to promote health and safety.

Staff Tenants Suppliers and Main Contractors Community Government and NGOs
National WSH committees/campaigns
Safety talk, quiz and emergency response drills
Tender/contract specifications
OHS Stakeholder Engagement

National Policy Making

CapitaLand participates actively in national efforts towards workplace health and safety. In Singapore, this included being a member of the Workplace Safety and Health Council (Construction and Landscape) Committee.

Tenants and Community

As part of CapitaLand’s OHS Management System, emergency response procedures are in place for potential OHS risks. Periodic briefings and annual evacuation drills are conducted to ensure that tenants are familiar with the response plan.

In China, CapitaLand collaborated with 90 local fire departments, government agencies and associations to organise fire drills at 45 malls to raise safety awareness among more than 14,000 participants including tenants and shoppers. This included live fire extinguishing session, involvement of local fire departments, simulation of fire and evacuation. This was well-received by the local authorities.

Supply Chain Management

CapitaLand works closely with its contractors and suppliers who are committed to high quality, environmental, health and safety standards. Contractors are only appointed for its projects upon meeting the Group’s stringent selection criteria, one of which is safety.

CapitaLand is also looking into establishing a Suppliers’ Code of Conduct for its business operations, to influence its suppliers to operate responsibly, improve energy and water consumption efficiency and reduce overall emissions. The Suppliers’ Code of Conduct aims to set out the Company’s requirements of its contractors in the areas of legal compliance, anti-corruption, human rights, health and safety, as well as environmental management.

Vendors and Service Providers

For building operations, CapitaLand’s contractor management guidelines require all contractors to comply with local government and other legal requirements. Contractors and service providers in Singapore and overseas are required to submit a copy of their risk assessments in cases where their activities may affect the occupational health and safety of CapitaLand employees or visitors.

Vendors and service providers are sent a copy of CapitaLand’s EHS Policy. They have to ensure that their staff are sufficiently trained or briefed on environmental, health and safety measures. Contractor house rules stipulate requirements such as deploying personal protective equipment, reporting of accidents and proper disposal of debris and toxic waste.

Since 2012, CapitaLand offices in Singapore only appoint bizSAFE5 Level 3 and above certified vendors and service providers upon contract renewal or signing of new contracts. Where possible, CapitaLand intends to stipulate similar requirements for its overseas offices. In 2016, more than 94% of its Singapore corporate offices’ and operating properties’ vendors and service providers6 were bizSAFE Level 3 and above certified.

Main Contractors

CapitaLand requires main contractors appointed for its development projects to be OHSAS 18001 certified or to engage an independent accredited assessor to conduct site OHS legal compliance audits. All six main contractors appointed in 2016 fulfilled these requirements.

CapitaLand also tracked the health and safety performance of its main contractors at its worksites in Singapore and overseas.

CapitaLand undertook various initiatives to improve the Accident Frequency Rate7 (AFR) and Accident Severity Rate8 (ASR) of its main contractors at its sites. In 2016, CapitaLand worsened its AFR at its Singapore construction sites, registering 0.7 cases for every million man-hours worked, which is lower when compared with Singapore national average of 1.7 for the same period. Whilst the ASR worsened to 63.6 man-days lost per million man-hours worked, this is still significantly lower than Singapore national average of 159 man-days lost in 2016.

Despite best efforts to ensure site safety, there were three fatalities of CapitaLand’s contractor staff in China. Appropriate actions were taken against the contractor. Lessons from the fatality incidents were shared across business units, and the Group’s commitment to strengthen its safety standards was reinforced.

CapitaLand strongly encourages its main contractors in Singapore to apply for the WSH SHARP9 awards and for overseas main contractors to target performance and apply for local safety awards.

CapitaLand Projects with Safety Awards 2016
Project 2016 Award
Sky Vue SHARP, WSH Council, Singapore
RoSPA10 Gold
Victoria Park Villas RoSPA Gold
Cairnhill Nine SHARP, WSH Council, Singapore
RoSPA Gold
Raffles City Chongqing City level awards for onsite safety, dust control, and for championing workers
1 This excludes countries where CapitaLand does not have any investment projects
2 This is based on work-related incidents that resulted in more than three days of medical leave or more than 24 hours of hospitalisation.
3 In 2016, injury rate is 1.9 per million hours worked both male and female employees.
4 Absentee rate is based on medical leave taken by staff, regardless of whether it is work-related illness or not. In 2016, absentee rate is 2.7 and 4.2 days per employee for male and female employees respectively.
5 The bizSAFE programme is advocated by the WSH Council in Singapore to promote workplace safety and health in small and medium enterprises. There are five levels.
6 This refers to term contractors/service providers where their work is on-site at CapitaLand properties or offices.
7 AFR is a term used in Singapore by the WSH Council, which measures how often workplace incidents occurred per million man-hours worked.
8 ASR is a term used in Singapore by the WSH Council, which measures number of man-days lost to workplace accidents per million man-hours worked.
9 Safety and Health Award Recognition for Projects (SHARP) Award recognises projects or worksites that have good safety and health performance and workplace safety and health management systems.
10 RoSPA (The Royal Society for the Prevention of Accidents, UK) Award recognises organisations with strong and ongoing commitment to raising health and safety standards.