Human Capital

Commitment to a Safe and Healthy Workplace

Occupational health and safety (OHS) of CapitaLand’s staff, 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 management

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, staff, 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 Building 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
  • Be part of 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 commitment from the top management 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 2009.

Since 2012, the Group achieved OHSAS 18001 certification for its OHS Management System in 15 countries – covering all markets with investment properties managed by CapitaLand. 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 the 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 of its management system and legal compliance requirements and commitment to best practices.

Compliance

Legal requirements are reviewed on a quarterly basis, and compliance to these requirements are evaluated annually. Despite all efforts to ensure compliance, its operations in China incurred three non-compliant areas relating to fire safety. Thorough investigations were conducted and all necessary follow-up action immediately undertaken. Lessons learnt from the incident were shared across business units, and the Group’s commitment to strengthen its safety standards was reinforced.

Risk Management of OHS Hazards

Identifying OHS hazards and assessing their risks are key components 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 poor 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 staff was briefed on how to respond to OHS incidents at the workplace. As part of staff well-being, CapitaLand also regularly organises lunchtime talks relating to health and related issues like parenting to help staff manage stress. It also organises financial resilience talks such as financial planning where over 100 staff attended. Some of the abridged material are made available on the CapitaLand intranet for 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 intranet.

Measuring Our Safety Performance

2017 Occupational Health and Safety Targets and Performance
Targets Performance
OHSAS 18001 certification for its OHS Management System in all markets with investment properties
  • Maintained OHSAS 18001 certification in 15 countries, covering all markets with investment properties managed by CapitaLand
Zero incident resulting in staff permanent disability or fatality
  • One staff work-related fatality.
    No staff work-related permanent disability
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)
  • Three main contractors appointed in 2017 for new development projects (Two are OHSAS 18001 certified and one is undergoing certification. In the interim, it will comply fully with local OHS laws and regulations and the site will be audited by an independent accredited assessor)
  • One RoSPA Gold award1

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

In 2017, there were 56 work-related injuries2. Most of the staff were from the operations teams. Despite all efforts to ensure site safety, it was with great regret that there was one work-related fatality of a CapitaLand staff in China. Thorough investigations were conducted and all necessary follow-up action undertaken. The site stepped up efforts to reinforce the importance of a pro-active safety mindset. Lessons learnt from the incident were shared across business units, and the Group’s commitment to strengthen its safety standards was reinforced. As part of the occupational health and safety management system, CapitaLand will continue to monitor the performance, reinforce safety standards and fine-tune its SOPs for improvement.

2017 2016 2015
CapitaLand Staff Singapore China Rest of the World Group Overall Group Overall Group Overall
Number of work-related injuries 4 25 27 56 51 57
Work-related fatalities/permanent disabilities 0 1 0 1 0 0
Injury rate3 (number of work-related injuries per million hours worked) 1.0 1.8 3.0 2.1 1.9 2.1
Lost day rate4 (number of lost man-days
per million hours worked)
5.4 539.5 112.5 313.8 44.0 65.9
Absentee rate5 (days per staff per year) 6.4 2.6 5.2 4.0 3.5 3.9
CapitaLand Staff

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 total well-being, health and safety.

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 more than 170 local fire departments, government agencies and associations to organise fire drills at 48 malls to raise safety awareness among more than 29,000 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.

In end 2017, it is progressively rolling out the CapitaLand Supply Chain Code of Conduct to influence its supply chain to operate responsibly in the areas of 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 staff 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 properties in Singapore only appoint bizSAFE6 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 2017, about 93% of its Singapore corporate offices’ and operating properties’ vendors and service providers7 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. Two main contractors appointed in 2017 fulfilled these requirements and one main contractor is in the process of getting certified.

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 Rate (AFR) and Accident Severity Rate (ASR)8 of its main contractors at its sites. In 2017, there were no injuries at its Singapore construction sites9.

Despite best efforts to ensure site safety, it was with great regret that there was one fatality of CapitaLand’s contractor staff in China. Detailed investigations were undertaken, and it ensured that the contractor quickly completed all necessary follow-up action. Appropriate actions were also taken against the contractor by the local authorities. 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 SHARP10 awards and for overseas main contractors to apply for local safety awards.

1 Victoria Park Villas, Singapore obtained the RoSPA Gold Award for workplace safety performance. RoSPA (The Royal Society for the Prevention of Accidents, UK) Award recognises organisations with strong and ongoing commitment to raising health and safety standards.
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. Of the 56 work-related injuries, two were incidents of occupational disease.
3 In 2017, injury rate is 1.5 and 2.6 per million hours worked for male and female staff respectively.
4 A fatal injury is equivalent to a loss of 6,000 man-days, as defined by the U.S. National Institute for Occupational Safety and Health. This is also adopted by the Singapore Ministry of Manpower. This resulted in the spike in the 2017 performance for lost day rate.
5 Absentee rate is based on medical leave taken by staff, regardless of whether it is work-related illness or not. In 2017, absentee rate is 2.7 and 5.2 days per staff for male and female staff respectively.
6 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.
7 This refers to term contractors/service providers where their work is on-site at CapitaLand properties or offices.
8 AFR and ASR are terms used in Singapore by the WSH Council. AFR measures how often workplace incidents occurred per million man-hours worked. ASR measures number of man-days lost to workplace accidents per million man-hours worked.
9 As there were no contractor injuries at the three sites in Singapore, its AFR and ASR was zero, which was below Singapore national average of 1.6 for AFR and 104 for ASR for construction sector.
10 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.