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SYNERGISTIC
Growth
Rationale
UEM Group Berhad Sustainability Report 2013/2014 will be the first report incorporating
disclosure on overall sustainability performance of UEM Group Berhad and its Operating
Companies. In its efforts to operate as a sustainable company, UEM Group of Companies
is committed to the creation of long-term value for its stakeholders and investors. Through
its strong commitment to and cooperation in sustainable development, UEM Group of
Companies continues to work together in leveraging each other’s strengths and resources
to deliver valued products and services. UEM Group of Companies believes that to further
enhance its business operations, the disclosure of sustainability performance will help
identify gaps for continuous improvement in achieving operational excellence.
The images of people featured on the Rubik’s Cube symbolises synergy while the colour
gold denotes our commitment towards achievement and excellence.
KEY
HIGHLIGHTS
UEM Group of Companies achieved
15%
Revenue Growth in 2014
42
Excellence and
Recognition Awards
received in 2013 and 2014
From Revenue of
RM12.14
in 2013
80
Vendors
trained in 2013
Total spent on
employee development
145
Vendors
trained in 2014
E-bidding programme in 2013 and 2014
Total projects
RM26.64
million
in 2013 and 2014
271
RM116
million
value creation
RM1.42
million
Group Demand Bundling achieved savings of
collectively for 2013 and 2014
Restructured and introduced the Health,
Safety, Security &
Environment (HSSE) Department in
2014
with the appointment of a HSSE Head to drive the development
of UEM Group’s HSSE Control Framework and implement a
5-year HSE Culture Transformation Programme
Achieved
1,000,000
man-hours without Loss Time Injury (LTI) in the Development of Sultan Abdul Halim Mu’adzam Shah
Bridge, Penang and Women and Children Hospital (WACH) Project in 2013 and 2014, respectively
UEM Group of Companies spent
RM31.86
million
TOTAL
community engagement and
charitable activities in
2013 and 2014
In 2013 and 2014,
RM10.7
million
in scholarships disbursed to
UEM Group of Companies
investment of
RM3
million
195
students
in UELP achieved a return of
RM54
million
reflecting a
Social Return of Investment (SROI) of
RM18.05
for every RM1.00 invested
Office electricity consumption
dropped
36%
in 2014
WHAT’S
INSIDE
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
VALUE
CREATION
HEALTH
& SAFETY
50 78
64 92
CORPORATE COMMUNITY
DEVELOPMENT
GREEN
ENVIRONMENT
72
5 About this Report / 7 Introduction to UEM Group of Companies /
28 Group Managing Director/Chief Executive Officer’s Statement /
32 UEM Group of Companies Sustainability Focus Areas / 34 Governance /
40 Stakeholder Engagement / 48 Materiality Aspects / 102 Glossary / 103 GRI Index Table
E
EDUCATION &
HUMAN CAPITAL
DEVELOPMENT
CORPORATE
COMMUNITY
DEVELOPMENT
GREEN
ENVIRONMENT
HEALTH &
SAFETY
VALUE
CREATION
About this
Report
SCOPE AND BOUNDARY
Effective 2015, UEM Group of Companies consolidated
the reporting of corporate sustainability performance into
one unified Sustainability Report.
This is a departure from the practice since 2011 when
each Operating Company issued its own Sustainability
Report. This consolidated Report covers the business
operations as well as financial and non-financial
performance of UEM Group of Companies, unless
otherwise stated.
“UEM Group of Companies” refers to UEM Group Berhad
and its Operating Companies, which include PLUS Malaysia
Berhad, UEM Sunrise Berhad, UEM Builders Berhad,
Cement Industries of Malaysia Berhad, UEM Edgenta
Berhad (formerly known as Faber Group Berhad), Opus
Group Berhad, and Edgenta PROPEL Berhad (formerly
known as Projek Penyelenggaraan Lebuhraya Berhad).
This Report includes two reporting cycles for the financial
years 2013 and 2014. UEM Group of Companies’ financial
year is from 1 January to 31 December. This being the
inaugural consolidated Sustainability Report, there are no
similarly published Reports available. The most recent
Reports published by individual Operating Companies can
be found at www.uem.com.my.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CHANGES IN
REPORTING
EXTERNAL
ASSURANCE
We have incorporated and consolidated the reporting of our
operational performance to provide an integrated account of
our sustainability activities in 2013 and 2014. This Sustainability
Report focuses on the material aspects in relation to the business
and operational value chain of UEM Group of Companies, which
helps us in identifying and managing potential difficulties. We
are optimistic that this will enable us to structure and apply the
best management approaches as well as GRI indicators to
further evaluate our sustainability reporting across all of our
activities. UEM Group Berhad’s approach to reporting serves as
an effective communication platform to engage with our
stakeholders, i.e. shareholders, employees, customers, local
communities, NGOs, suppliers and contractors.
This being our first consolidated Report, it has not been
subjected to external assurance as we are in the process of
streamlining our sustainability data collection and monitoring
across UEM Group of Companies. We recognise the importance
of ensuring the credibility of our published Sustainability
Reports, and plan to seek external assurance for the next
reporting cycle in 2017.
Our journey of change through sustainability is an on-going
practice, and we are hopeful that this Report is the beginning
of an improved, consolidated effort for the UEM Group of
Companies.
In October 2014, our Asset & Facility Management (AFM)
Companies underwent a major structural change involving the
merger of Faber Group Berhad, Opus Group Berhad and
Projek Penyelenggaraan Lebuhraya Berhad. On 9 April 2015,
Faber Group Berhad rebranded itself and is now known as
UEM Edgenta Berhad, while Projek Penyelenggaraan Lebuhraya
Berhad is now known as Edgenta PROPEL Berhad effective
17 April 2015.
However, for the purpose of this reporting cycle, the operational
performance of UEM Edgenta Berhad (formerly known as
Faber Group Berhad), Opus Group Berhad, and Edgenta
PROPEL Berhad (formerly known as Projek Penyelenggaraan
Lebuhraya Berhad) are reported as individual companies for
the financial years 2013 and 2014. At the time of reporting,
our AFM Companies were in the process of consolidating and
streamlining their operations.
Our reporting content is structured in accordance with the Global
Reporting Initiative (GRI) G4 Guidelines at Core level. Reporting
for the 2012 Sustainability Report was in accordance to GRI G3.1
Guidelines with application Level B. The transition from GRI G3.1
to G4 demonstrates our commitment to provide a more relevant,
concise and user-friendly form of reporting. From here on, our
sustainability performance will be reported every two years.
There is no restatement of information as this is the Company’s
first consolidated Report.
REPORTING
FEEDBACK
We value your views and aim for continuous
improvements based on your feedback. For further
inquiries on our Report, please contact us at:
Corporate Responsibility
UEM Group Berhad (6551-K)
17-2 Mercu UEM
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel Fax Email Website
: +603-2727 6868
: +603-2727 2222
: [email protected]
: www.uem.com.my
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF
COMPANIES
UEM GROUP BERHAD
UEM Group Berhad (UEM Group) started as United Engineers (Malaysia) Limited in
1966. Over the years, we have built our reputation as Malaysia’s leading engineeringbased infrastructure and services group with four core businesses, namely Expressways,
Township & Property Development, Engineering & Construction and Asset & Facility
Management.
UEM Group is a wholly-owned subsidiary of Khazanah Nasional Berhad, the
investment fund of the Government of Malaysia. Our headquarters is in Kuala
Lumpur, and we operate via 20 major Operating Companies, three of which are
listed on local and international bourses.
We have more than 15,000 employees, including 2,500 technical professionals. Our
core geographical market is Malaysia while we have significant presence in India,
Indonesia, Singapore, Australia, New Zealand, Canada and the Middle East.
As at end December 2014, our total assets totalled USD6.7 billion (RM23.4 billion)
while our shareholders’ funds stood at approximately USD2.2 billion (RM7.7 billion).
Since 1988, UEM Group has completed large-scale infrastructure, transportation and
building projects in Malaysia amounting to USD8.4 billion.
UEM Group is a member of:
• Malaysia-India Business Council (MIBC)
• Malaysia South-South Association (MASSA)
• Malaysian Industry-Government Group for High Technology (MIGHT)
• Malaysia New Zealand Chamber of Commerce (MNZCC)
• British Malaysian Chamber of Commerce (BMCC)
For more information on UEM Group, visit
www.uem.com.my
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM GROUP OF COMPANIES’
ORGANISATIONAL STRUCTURE
100%
EXPRESSWAYS
100%
TOWNSHIP &
PROPERTY
DEVELOPMENT
66%
ENGINEERING
& CONSTRUCTION
100%
ASSET & FACILITY
MANAGEMENT
70%
PLUS Expressways International Berhad
51%
100%
100%
PLUS Malaysia Berhad
Edgenta PROPEL
100%
OPUS Group Berhad
61%
International Consultants
Listed on
Bursa/NZX
Companies/shareholding as
at 31 December 2014
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
UEM GROUP OF COMPANIES’
WORLDWIDE OPERATIONS
Qatar
India
U.S.A
UK
Brunei
Singapore
Canada
Saudi
Arabia
South
Africa
Australia
Indonesia
Malaysia
United Arab
Emirates
(UAE)
Expressways
Township & Property Development
Engineering & Construction
Asset & Facility Management
New
Zealand
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
PLUS Malaysia Berhad
PLUS MALAYSIA BERHAD
PLUS Malaysia Berhad (PLUS) is the largest highway operator
in Malaysia. As the expressway arm of UEM Group, PLUS
operates and maintains almost 1,000 km of expressways –
stretching from the border of Thailand in the north of Malaysia
to the Singapore border. The expressway connects to main
industrial, commercial and transportation hubs, as well as major
seaports and airports. Apart from providing access to various
townships and city centres in the country, it also creates new
pathways for growth and development in numerous locations.
PLUS is a member of:
• Road Engineering Association of Malaysia (REAM)
• Road Engineering Association of Asia & Australasia
(REAAA)
• Intelligent Transport System of Malaysia (ITSM)
• Persatuan Syarikat-Syarikat Konsesi Lebuhraya Malaysia
(PSKLM)
• Malaysia Association of Risk and Insurance Management
(MARIM)
• Malaysian Association of Corporate Treasurers (MACT)
For more information on PLUS, visit
www.plus.com.my
“Paving the
Way Forward”
PLUS EXPRESSWAYS INTERNATIONAL BERHAD
PLUS Expressways International Berhad (PEIB) is the international
expressway arm of UEM Group. In India, PEIB operates and
manages the Padalur-Trichy Highway along NH45. Its subsidiary,
Uniquest Infra Ventures Private Limited (Uniquest), operates
and manages the Khalghat-MP/Maharashtra Border section of
NH-3 from KM84.70 to KM167.50 in the state of Madhya
Pradesh. PEIB’s subsidiary, Uniquest Infra Ventures Private
Limited (Uniquest) completed the construction of the 123.4km
Jetpur-Somnath Highway (NH8d) in the state of Gujarat, and
commenced commercial operations of its first greenfield
project in May 2015.
In Indonesia, PEIB constructed the longest toll road in
Indonesia, the 116km Cikopo-Palimanan Expressway in West
Java, which is also the longest segment of the 615km TransJava Highway. PT Lintas Maga Sedaya (LMS), the concession
holder for the Cikopo-Palimanan toll road for 35 years, is an
entity owned by PLUS Expressways International Berhad (55%)
and Baskhara Utama Sedaya (45%), a national investment
company. Commercial operations of this highway commenced
in June 2015.
For more information on PEIB, visit
www.uem.com.my
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
“Shaping
the Future”
UEM SUNRISE BERHAD
UEM Sunrise Berhad (UEM Sunrise) is a
public-listed company and one of
Malaysia’s leading property developers.
It is the flagship company for UEM
Group’s real estate and property
development business.
UEM Sunrise’s core competencies are in
macro township development, high-rise
residential, commercial, retail and
integrated developments, as well as
property management and project &
construction services.
The Company is currently undertaking
the development of Nusajaya, one of
the five flagship zones and the key driver
of Iskandar Malaysia in Johor. Upon
completion, Nusajaya will become the
largest fully integrated urban
development in Southeast Asia, giving
rise to significant investment and
opportunities relating to the region’s
economic growth.
In the Central region, UEM Sunrise is
responsible for numerous residential,
commercial and integrated developments,
largely in Kuala Lumpur’s Mont Kiara
area, Kuala Lumpur City Centre, Selangor
and Negeri Sembilan.
The Company is the owner and
developer of an urban development in
Cyberjaya known as Symphony Hills. An
exclusive residential development,
Symphony Hills is the country’s first
Connected Intelligent Community (CIC)
offering smart-home features and
community connectivity through highspeed broadband.
UEM Sunrise’s presence in Singapore is
via the Marina One and DUO integrated
developments while in Australia, it is
working on the Aurora Melbourne
Central Project. Beyond Asia Pacific, the
Company has expanded to Vancouver,
Canada through the Quintet mixed
development, and also owns land bank
in Durban, South Africa.
For more information on UEM Sunrise, visit
www.uemsunrise.com
UEM Sunrise is a member of:
• International Real Estate Federation
(FIABCI) Malaysia Chapter
• Real Estate and Housing Developer’s
Association Malaysia (REHDA)
• Federation of Public Listed Companies
Berhad (FPLC)
• Johor Sailing Association (JSA),
Malaysia
• The Yacht Harbour Association
(TYHA), United Kingdom
• Asia-Pacific Superyacht Association
(APSA), Hong Kong
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
“Building
Nations”
For more information on UEM Builders, visit
www.uembuilders.com
UEM BUILDERS BERHAD
UEM Builders Berhad (UEM Builders) is an international
engineering and construction company with a strong track
record in delivering key infrastructure development projects. It
has, over the years, spearheaded numerous projects of national
significance such as highways, bridges, stadiums, railways and
urban transit, civil infrastructure, airports, hospitals, institutional,
commercial buildings and residential development for both the
local and international public and private sectors.
UEM Builders is a member of:
• Construction Industry Development Board Malaysia (CIDB)
• Standards and Industrial Research Institute of Malaysia
(SIRIM)
• National Institute for Occupational Safety and Health
(NIOSH)
• British Standards Institution (BSI)
• Master Builders Association Malaysia (MBAM)
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
For more information on CIMA, visit
www.cima.com.my
CEMENT INDUSTRIES OF MALAYSIA BERHAD
Cement Industries of Malaysia Berhad (CIMA), which is among
the cement market leaders in Malaysia since 1975, is known for
the production and distribution of high quality cement, ready
mixed concrete, aggregates, premix and related products.
CIMA, one of the largest cement manufacturers in Malaysia
with presence in Singapore, provides synergies within the
businesses of UEM Group.
Its products are used in iconic projects such as Sultan Abdul
Halim Mu’adzam Shah Bridge, Penang International Airport,
New Pantai Valley Expressway, North-South Expressway and
the Klang Valley MRT Project.
CIMA is a member of:
• Cement & Concrete Association of Malaysia (C&CA)
• Federation of Malaysian Manufacturers (FMM)
• National Ready-Mixed Concrete Association of Malaysia
(NRMCA)
• Master Builder Association Malaysia (MBAM)
• Negeri Sembilan Industrial Liaison Centre (NSILC)
• Malaysian Quarry Association (MQA)
• Johor Quarry Association (JQA)
• Negeri Sembilan Quarry Association (NSQA)
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
“Optimising Assets
to Improve Lives”
UEM EDGENTA BERHAD (FORMERLY KNOWN AS FABER GROUP BERHAD)
UEM Edgenta Berhad (UEM Edgenta), formerly known as Faber Group Berhad
(Faber) is a new brand that redefines the asset management industry. Listed on
the Main Market of Bursa Malaysia Securities Berhad, UEM Edgenta is a leader in
Total Asset Solutions with an expanded offering in asset consultancy, healthcare,
infra, industrial, facilities, and energy services. UEM Edgenta has more than 14,000
multi-nationals and multi-disciplinary employees with international presence in 10
countries spanning across 6 major regions namely the South East Asia, New
Zealand, Australia, North Americas, United Kingdom, India, and the Middle East.
UEM Edgenta has developed standards of practice that are recognised and
adopted by the industry abroad and by multilateral agencies such as the World
Bank and the Asian Development Bank. As a Total Asset Solutions provider, UEM
Edgenta offers the healthcare, infrastructure and commercial sectors a full suite of
services throughout the asset life cycle. These include consultancy, procurement
and construction planning, operations and maintenance, as well as optimisation,
rehabilitation and upgrades.
With its combined expertise and in-depth knowledge in managing assets and
facilities across major sectors, UEM Edgenta aims to continuously innovate and
offer intelligent solutions to improve the quality of lives, as well as ensure the
safety and health of the communities in which it operates.
UEM Edgenta is a member of:
• Industry Advisory Committee for Politeknik Banting
For more information on UEM Edgenta, visit
www.uemedgenta.com
15
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
OPUS GROUP BERHAD
Opus Group Berhad (Opus) is a
leading multidisciplinary consultancy
headquartered in Malaysia with operations
in New Zealand, Australia, United
Kingdom, Canada, United States,
Indonesia and Middle East.
With a multi-national team of some 3,900
personnel in over 100 offices worldwide,
Opus possess a unique blend of skills
and services that constantly enhance the
infrastructure and environment that enrich
lives and communities. Opus’ expertise
allows it to apply proven and innovative
methodologies in all aspects of asset
development and management across
the whole life-cycle of an asset, a niche
in which it has a consistent and successful
track record.
Edgenta PROPEL
As Advisor, Manager and Partner, Opus
nurtures strong working relationships that
deliver outcomes that are acclaimed by
clients and recognised via several key
awards. Opus has developed standards
of practices which are recognised and
adopted by the industry in several
countries as well as multi-lateral agencies
such as the World Bank and the Asian
Development Bank.
Opus is a wholly-owned subsidiary of
UEM Edgenta.
For more information on
Opus and Edgenta PROPEL, visit
www.uemedgenta.com
EDGENTA PROPEL BERHAD (FORMERLY KNOWN AS PROJEK
PENYELENGGARAAN LEBUHRAYA BERHAD)
In Malaysia, Edgenta PROPEL Berhad (Edgenta PROPEL), formerly known
as Projek Penyelenggaraan Lebuhraya Berhad, has built a formidable
reputation as the country’s leading Engineering and Infrastructure
Maintenance Specialist.
Edgenta PROPEL has more than 25 years track record as the main
contractor for the 1,000km North South Expressway. Other clients include
Malaysia Airport Berhad, Prasarana, Sime Darby Berhad, Latar Highway,
New Pantai Expressway, PETRONAS Refinery and Petrochemical
Corporation for the Refinery and Petrochemical Integrated Development
(RAPID) Project in Pengerang.
On the international front, Edgenta PROPEL was involved in pavement
works for the Cikopo-Palimanan Expressway in Indonesia.
Edgenta PROPEL is a wholly-owned subsidiary of UEM Edgenta.
Edgenta PROPEL is a member of:
• Road Engineering Association of Malaysia (REAM)
16
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
From left to right:
Ir. Wan Azman Wan Salleh
Managing Director
Edgenta PROPEL Berhad (formerly known as
Projek Penyelenggaraan Lebuhraya Berhad)
Chief Operating Officer
UEM Edgenta Berhad (formerly known as Faber Group Berhad)
Zakaria Ahmad Zabidi
Chief Executive Officer
Uniquest Infra Ventures Private Limited
Nik Airina Nik Jaffar
Managing Director
Opus Group Berhad
Group Chief Business Development Officer
UEM Group Berhad
Mohd Razin Ghazali
Managing Director
UEM Builders Berhad
Mohd Yusri Md Yusof
Managing Director
Cement Industries of Malaysia Berhad
Dato’ Noorizah Abd Hamid
Managing Director/Chief Executive Officer
PLUS Malaysia Berhad
PLUS Expressways International Berhad
Dato’ Izzaddin Idris
Group Managing Director/Chief Executive Officer
UEM Group Berhad
Dato’ Roslan Ibrahim
President Director
PT Lintas Marga Sedaya
Azmir Merican
Managing Director/Chief Executive Officer
UEM Edgenta Berhad (formerly known as Faber Group Berhad)
Anwar Syahrin Abdul Ajib
Managing Director/Chief Executive Officer
UEM Sunrise Berhad
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
Our Leaders
18
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Milestones
2013
Approval for Hospital Support Services
(HSS) Concession
UEM Edgenta received approval from
Unit Kerjasama Awam Swasta (UKAS) in
relation to the privatisation of the HSS
concession in the northern region of
Peninsular Malaysia comprising the states
of Perak, Penang, Kedah and Perlis, and
a 40% equity partnership in the HSS
concession companies in Sabah and
Sarawak.
Completion of the Final Approach
Span of Sultan Abdul Halim Mu’adzam
Shah Bridge
UEM Builders completed the installation
of the final approach span of the Sultan
Abdul Halim Mu’adzam Shah Bridge 106
days ahead of schedule.
Commencement of Cikopo-Palimanan
Expressway
The construction of 116km CikopoPalimanan Expressway in Indonesia
commenced following the signing of a
USD0.7 billion (RM2.5 billion) Credit
Syndication Agreement involving 22
banking and financial institutions in late
2012.
Development of Women & Children
Hospital
UEM Group and joint venture partner,
Najcom Sdn Bhd, were entrusted by the
Ministry of Health to develop and
construct Malaysia’s first Women &
Children Hospital in Kuala Lumpur.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Land Rebranded as UEM Sunrise
UEM Sunrise Berhad was unveiled as the
new brand identity and company to
replace UEM Land Holdings Berhad. The
new identity leverages on the combined
heritage of UEM Land and its wholly
owned subsidiary, Sunrise Berhad, to
reflect a unified entity focused on a
singular vision of “Building Communities
of The Future, With You and For You”.
Creation of Asset & Facility Management
(AFM) Group of Companies
UEM Group submitted a proposal to
Faber in relation to the integration and
consolidation of the AFM businesses,
namely PROPEL and Opus into a Total
Asset Solutions provider, now known as
UEM Edgenta.
Acquisition of Stewart Weir
Opus International Consultants (Opus IC)
completed its acquisition of Canadian
engineering and environmental
consultancy, Stewart Weir.
Acquisition of Uniquest Infra Ventures
Private Limited
UEM Group secured an 80% stake in
Uniquest Infra Ventures Private Limited,
an entity that invests in infrastructure
projects in India, from Khazanah Nasional
Berhad.
INTRODUCTION TO
UEM GROUP OF COMPANIES
UEM Sunrise’s Maiden Venture in
Australia
UEM Sunrise acquired two parcels of
land in the Central Business District of
Melbourne, Australia – one measuring
approximately 3,197 m 2 on LaTrobe
Street while the other is approximately
2,030 m2 on Mackenzie Street.
Uniquest Acquired SEW Navayuga
Barwani Tollways Private Limited
(SNBTPL) in India
Uniquest Infra Ventures Private Limited
acquired a majority stake in SNBTPL
from SEW Infrastructure Limited and
Navayuga Engineering Company Limited.
SNBTPL operates the KM84.70 to
KM167.50 stretch of the Khalghat-MP/
Maharashtra Border section of NH-3 in
the state of Madhya Pradesh.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
2014
PLUS Launched Two New Interchanges
The Sungai Buaya Interchange was
launched by YAB Prime Minister of
Malaysia, Dato’ Sri Mohd Najib Bin Tun
Haji Abdul Razak on 10 January 2014
while the Bukit Gambir Interchange was
launched by YAB Deputy Prime Minister
of Malaysia, Tan Sri Dato’ Haji Muhyiddin
Yassin on 25 January 2014.
Launch of Sultan Abdul Halim
Mu’adzam Shah Bridge, Penang
Construction completion by UEM
Builders led to the opening of Sultan
Abdul Halim Mu’adzam Shah Bridge by
YAB Prime Minister of Malaysia on
1 March 2014.
Pre-Launch of Bayu Nusantara
UEM Sunrise continues its commitment
to build affordable housing for the rakyat
in Nusajaya by offering 351 units of
Bayu Nusantara and pledged to build
10,000 more affordable housing which
will be located in Gerbang Nusajaya.
At a pre-launch ceremony held on
1 March 2014 at SMK Gelang Patah in
Johor, Menteri Besar YAB Dato’
Mohamed Khaled Nordin presented the
‘Certificates of Entitlement to Purchase’
to eligible rakyat whom were successful
in the balloting conducted by SUK
Perumahan Negeri Johor to purchase
properties that are scheduled to be
completed in 2016.
Alternative Fuel Combustion System
CIMA is the first company in Malaysia to
have successfully installed an alternative
fuel combustion system from Japan’s
Taiheiyo Engineering Corporation. The
installation of this system at CIMA’s plant
enables the Company to use tyres and
biomass waste as an alternative source
of fuel.
Infrastructure Development at
Gerbang Nusajaya, Iskandar Malaysia
UEM Sunrise and Mulpha International
Berhad signed a maiden collaboration
agreement to build three sets of roadwork
that will improve access to the Gerbang
Nusajaya township. Four parties –
Iskandar Investment Berhad, UEM Sunrise
through its wholly-owned subsidiary,
Nusajaya Rise Sdn Bhd, Sunway Iskandar
Development Sdn Bhd and Mulpha
International Berhad – signed the Cost
Sharing Agreement. Work is scheduled
for completion in 2017.
RM1.03 Billion Agreement with
Konsortium ProHAWK Sdn Bhd
Upon construction of the Women &
Children Hospital in Kuala Lumpur, UEM
Edgenta through its subsidiary Edgenta
Mediserve signed an agreement with
Konsortium ProHAWK Sdn Bhd for the
provision of Asset Management Services
worth RM1.03 billion. The agreement is
set to secure UEM Edgenta’s services for
the next 27 years.
Groundbreaking Ceremony for
“Nusajaya Tech Park”
UEM Sunrise and Ascendas Pte Ltd
jointly held a groundbreaking ceremony
for “Nusajaya Tech Park” in Iskandar
Malaysia, where both companies
will develop a 519-acre integrated
eco-friendly technology park. With an
estimated gross development value of
RM3.7 billion, the fully landscaped park
will provide a built environment catering
to a wide range of industries.
Launch of klia2 Airport
Construction completion of terminal
building by UEM Builders and joint
venture partner, Bina Puri Sdn Bhd led
to the opening of klia2 low-cost carrier
terminal by YAB Prime Minister of
Malaysia on 2 May 2014.
21
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
Launch of Aurora Melbourne Central,
Australia
UEM Sunrise announced its first Australian
project, Aurora Melbourne Central, which
received an overwhelming response.
During its worldwide preview, 95%, or
895 of the 941 residential units, were
sold in just over two weeks. The 92-storey
skyscraper comprising retail, commercial
offices, serviced apartments, hotel and
residential units, is set to be Melbourne’s
largest integrated mixed-use development.
Joint Venture Company Established to
Offer and Operate Nusajaya’s Smart
City Services
In this venture, UEM Sunrise and Iskandar
Innovations Sdn Bhd, a wholly-owned
subsidiary of Iskandar Investment Berhad,
collaborated with Intelsec Sdn Bhd, a
wholly-owned subsidiary of Telekom
Malaysia. The joint venture company is
established to design and build the
smart city infrastructure, as well as
provide smart building and city services,
including security services, energy and
facility management in Nusajaya.
PLUS Implemented 100% Electronic
Toll Transaction
PLUS implemented electronic toll
collections at Batu Tiga and Sungai
Rasau Toll Plazas on the Federal Highway
Route 2 as part of its initiative to reduce
traffic congestion caused by long queues
at cash lanes. All toll transactions were
made via PLUSMiles cards, Touch ‘n Go
cards or SmartTAGs from November
2014.
Construction Project at Pengerang
Integrated Complex, Johor
UEM Builders and Edgenta PROPEL
secured a RM687 million project to build
camp facilities and infrastructure at the
Pengerang Integrated Complex. The
official Signing and Exchange of
Documents ceremony was held on 29
August 2014.
Merger of Asset & Facility Management
(AFM) Companies
In October 2014, Faber completed a
RM1.15 billion merger with Opus and
PROPEL to form UEM Edgenta. The
merger of the AFM Companies
transformed UEM Edgenta into one of
the largest Asset Development and
Management players in this region.
Groundbreaking Ceremony at Denai
Nusantara
UEM Sunrise held a groundbreaking
ceremony for Denai Nusantara, another
project under the Rumah Mampu Milik
Johor programme. The project comprises
1,109 units of affordable apartments in
five 12-storey blocks and 108 units of
one-storey shoplots.
Launch of CIMA’s Bahau Second
Production Line
In November 2014, CIMA launched the
second production line at its plant in
Bahau, Negeri Sembilan, known as “Bahau
Line 2”. The expansion has enabled CIMA
to increase its annual cement production
capacity to 7.2 million metric tonnes since
operation began in September 2013.
Malaysia’s First Highway Maintenance
Safety Passport
In collaboration with National Institute of
Occupational Safety and Health (NIOSH),
Edgenta PROPEL launched PROPEL
Safety Passport (PSP), Malaysia’s first
Occupational Safety & Health ‘Passport’
for highway maintenance in November
2014. The aim is to strengthen employees
and contractors’ Health & Safety
knowledge and practices for continuous
improvements.
Collaboration in Telecommunications
Infrastructure Services
UEM Sunrise through its wholly-owned
subsidiary, UEM Land Berhad, entered
into a collaboration agreement with
edotco Malaysia Sdn Bhd, an integrated
telecommunications infrastructure services
company. The collaboration is to provide
end-to-end solutions for a multi-tenant
mobile network infrastructure development
in Nusajaya, Iskandar Malaysia.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Awards, Accolades and
Recognitions Received
As a performance-driven organisation, UEM Group of Companies’ commitment to provide the
best products and services to our numerous stakeholders has won recognitions in the form of
awards in 2013 and 2014.
23
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
24
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
2013
UEM Group Berhad
6 June 2013
UEM Sunrise Berhad
4 January 2013
HUMAN RESOURCE EXCELLENCE AWARDS 2013
ILAM MLAA HONOUR AWARD
• “Excellence in CSR Practices”
– Gold Winner
• “Excellence in Recruitment & Retention Strategy”
– Silver Winner
•
Property Developer Awards in Landscape Planning &
Development Category
– Serenity Park East Ledang Phase 1
– Puteri Harbor Satellite Club House
– C
luster C2S Complex, Kota Iskandar (Bangunan Dato’
Mohamad Salleh Perang and Bangunan Dato’ Mohamad
Ibrahim Munsyi)
• “Excellent in Leadership Development”
– Bronze Winner
Awarded by
• “Excellence in Employee Development”
– Silver Winner
• “Excellent in Compensation & Benefit Strategy”
– Bronze Winner
• “Excellent in Talent Management”
– Bronze Winner
• “Excellent in Work Place Well Being”
– Bronze Winner
Awarded by
• Human Resource Magazine
27 October 2013
• Institute of Landscape Architects Malaysia (ILAM)
10 May 2013
ASIA PACIFIC PROPERTY AWARDS 2013-2014
• Verdi eco-dominiums
– “Five Star Apartment for Malaysia Category”
– “
Highly Commended Landscape Architecture Malaysia
Category”
• Mall of Medini
– “
Highly Commended Retail Development for Malaysia
Category”
• “Penghargaan Khas Ke Arah Kelestarian Alam Sekitar
MASM 2013”
• Radia Bukit Jelutong
– “
Five Star Best Commercial High Rise Development for
Asia Pacific Category”
– “
Best Commercial High Rise Development for Malaysia
Category”
Awarded by
Awarded by
• Department of Environment (DoE), Ministry of Natural
Resources and Environment
• International Property Awards
MINGGU ALAM SEKITAR MALAYSIA (MASM) PERINGKAT
KEBANGSAAN 2013
25
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
UEM Sunrise Berhad (cont’d)
16 May 2013
10 October 2013
BCA GREEN MARK
THE EDGE TOP PROPERTY DEVELOPERS AWARDS 2013
• 28 Mont’Kiara
– “Certified Gold Award”
• “4th Top Property Developer”
Awarded by
Awarded by
• The Edge Malaysia
• Building & Construction Authority of Singapore
28 May 2013
THE BRANDLAUREATE AWARDS 2012-2013
• Publika
– “Best Brands in Real Estate Lifestyle Mall”
Awarded by
• The BrandLaureate
2 September 2013
THE EDGE BILLION RINGGIT CLUB
• The Edge Billion Ringgit Club Member for 4th
Consecutive Year
Awarded by
• The Edge
18 September 2013
ASIA PACIFIC GOLD SABRE AWARD
• “Employee Communication for ‘Unleashing the Power
of One Programme’ ”
8 November 2013
MALAYSIAN RESERVE PROPERTY PRESS AWARDS 2013
• Verdi eco-dominium in Symphony
– “Best Green & Smart High-Rise Residential Development”
• “Almas @Puteri Harbour”
– “Best Integrated High-Rise Development”
Awarded by
• Malaysian Reserve
22 November 2013
NATIONAL ANNUAL CORPORATE REPORT (NACRA) 2013
• “Certificate of Merit”
Awarded by
• Bursa Malaysia Berhad, Malaysia Institute of Accountants
(MIA), and The Malaysia Institute of Certified Public
Accountants (MICPA)
PLUS Malaysia Berhad
5 March 2013
Awarded by
MALAYSIA DEAL OF THE YEAR
• The Holmes Report
• “PLUS RM23.35 billion Islamic Medium Term Notes
(IMTN) Programme and RM11 billion Guaranteed”
Awarded by
• Islamic Finance News Awards
26
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
2014
UEM Group Berhad
6 May 2014
UEM Sunrise Berhad
26 February 2014
RAM LEAGUE AWARDS
PR AWARDS 2014
• “Konsortium ProHAWK RM900 million Sukuk
Murabaha”
– Project Finance Benchmark Deal
• “Best Employee Engagement/Internal Communications”
– Silver Winner
Awarded by
• Rating Agency Malaysia
26 May 2014
THE ASSET TRIPLE A AWARDS
• “Konsortium ProHAWK RM900 million Sukuk
Murabaha”
– Best Islamic Finance Project
Awarded by
• The Asset Magazine
31 October 2014
HUMAN RESOURCE EXCELLENCE AWARDS 2014
• “Excellence in CSR Practices”
– Silver Winner
• “Excellence in Recruitment & Retention Strategy”
– Silver Winner
• “Excellence in Graduate Development”
– Silver Winner
Awarded by
• Human Resource Magazine
Awarded by
• Marketing Magazine
29 April 2014
ILAM MLAA HONOUR AWARD
• Linear Park @Puteri Harbour, Nusajaya
– “
Best Property Developer Award” (Landscape Planning
and Development Category)
Awarded by
• Institute of Landscape Architects Malaysia (ILAM)
9 May 2014
20TH ASIA PACIFIC PROPERTY AWARDS
• Summer Suites
– “5-Star Best Office Development” (Malaysia Category)
• Teega @Puteri Harbour
– “Highly Commended, Condominium Development”
– “Highly Commended, Architecture Multiple Residence”
(Malaysia Category)
• Almas @Puteri Harbour
– “ 5-star, Best Mixed Use Architecture”
– “Highly Commended, Mixed Use Development”
(Malaysia Category)
Awarded by
• International Property Awards
27
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
INTRODUCTION TO
UEM GROUP OF COMPANIES
UEM Sunrise Berhad (cont’d)
June 2014
7 November 2014
TYHA GOLD ANCHOR AWARD SCHEME
FIABCI MALAYSIA PROPERTY AWARDS 2014
• “Puteri Harbour Marina”
– 5 Gold Anchor
• Publika
– “Winner of Retail Category”
Awarded by
• 28 Mont’Kiara
– “Winner of Residential (High Rise) Category”
• The Yacht Harbour Association Ltd (TYHA)
11 August 2014
THE EDGE BILLION RINGGIT CLUB AWARD 2014
• “Highest Profit Growth Company”
– 2nd Place (Property and REIT Sectors 2014 Category)
Awarded by
• The Edge
20 August 2014
HR ASIA AWARD 2014
• “Best Company to Work for in Asia 2014”
– Top 40
Awarded by
• HR Trade Journal – HR Asia
13 October 2014
THE EDGE PROPERTY EXCELLENCE AWARDS 2014
• “4th Top Property Developer”
• Tranquility Park @East Ledang, Nusajaya
– “PEPS Value Creation Excellence Award” (Residential
Category)
• Merit Award
Awarded by
• The Edge Malaysia
UEM Builders Berhad
10 November 2014
ROAD ENGINEERING EXCELLENCE AWARD 2014
• “Jambatan Sultan Abdul Halim Mu’adzam Shah”
– Principal Contractors
Awarded by
• Road Engineering Association of Malaysia (REAM)
UEM Edgenta Berhad (formerly known as Faber Group
Berhad)
30 October 2014
“ANUGERAH PENCAPAIAN CEMERLANG QLASSIC 2013”
• Armada Villa Development
– Won by Faber Union Sdn Bhd
Awarded by
• Malaysian Construction Industry Development Board
(CIDB)
28
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GROUP MANAGING
DIRECTOR/
CHIEF EXECUTIVE
OFFICER’S
Statement
29
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
“We do not only focus on financial performance,
but we also strive to align our business objectives
and our responsibility towards the community,
environment and our workforce.”
We live in a fast-paced era where
everything evolves more rapidly, offering
numerous opportunities with its own set
of challenges. Foreseeing ahead, UEM
Group of Companies must remain agile
and continuously adapt in this everchanging landscape. We need to keep
in mind that our efforts to thrive in this
challenging time may very well become
futile if we ever lose sight of our
commitment to sustainability.
Over the years, sustainability has
undoubtedly become an integral aspect
of our business. As Malaysia’s leading
engineering-based infrastructure and
services group, we do not only focus on
financial performance, but we also strive
to align our business objectives and our
responsibility towards the community,
environment and our workforce.
Our unwavering and continuous
commitment to sustainability is evident
in this first ever consolidated Sustainability
Report of UEM Group of Companies.
Themed, “Synergistic Growth”, the
Report outlines the various programmes
and initiatives undertaken by UEM Group
and our subsidiary companies for the
year 2013 and 2014, where we focus on
five sustainability focus areas namely –
Education & Human Capital Development,
Health & Safety, Corporate Community
Development, Value Creation and
Environment.
30
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Education & Human Capital Development
Will Continue to be Our Focus
UEM Group’s total contribution for
Corporate Responsibility and Human
Capital Development initiatives from
2009 to 2014 stood at RM215 million.
Top on the list is education, where we
provide assistance to school-going
children, tertiary and university students,
graduates and employees.
Promoting Synergy and Collaboration
within UEM Group of Companies
It goes without saying that leveraging on
each other’s strengths and resources will
allow us to create long and lasting value
for our stakeholders. Against the
backdrop of an increasingly competitive
environment, our business operations
are able to thrive if we promote greater
synergy and fully utilise the expertise of
each Operating Company under UEM
Group.
A good example of this is the RM1.15
billion merger of Faber, PROPEL and
Opus. The merger, which was completed
in October 2014, paved the way for
synergies to be extracted and Faber,
now known as UEM Edgenta, is currently
one of the region’s largest Total Asset
Solutions providers. The merger has
resulted in UEM Edgenta gaining
international recognition, achieve
sustainable growth and ultimately be the
clear leader in the Asset & Facility
Management industry as we offer an
unparalleled array of services covering
the total asset value chain across multiple
sectors and industries, both in Malaysia
and the world over.
Further evidence of collaboration and
the one team spirit amongst UEM Group
of Companies can be seen in the klia2
airport project which was officially
opened in June 2014. In the push to
complete the construction of the airport’s
main terminal building within the
deadline given, UEM Builders received
staunched support and assistance from
its sister companies namely, PROPEL,
PLUS and Opus.
Such collaboration and synergistic
approach is not just limited to our
operations, but it is also embraced in
our sustainability initiatives. We are a
believer that two heads are better than
one and going by this adage, combining
the resources from across UEM Group of
Companies has allowed us to reach
more communities. Case in point is our
Back-to-School Programme embarked by
UEM Group of Companies in more than
15 locations nation-wide, has benefited
over 11,000 students from less privileged
backgrounds.
Another example involves our UEM
ALERT volunteers who came together to
provide much needed assistance to
communities in need. This include those
that were devastated by major floods in
Malaysia where hundreds of our
volunteers went to hard hit areas to
undertake flood relief and rehabilitation
efforts and help the victims to get back
on their feet again.
Education & Human Capital Development
will continue to be an area we hold
close to our heart because in today’s
rapidly changing and robust global
economy, the key to success is not just
what we already know but rather, what
more we can do to further enhance our
knowledge and skills.
In realising this, we have internally
implemented and supported various
programmes aimed at not just school
going children but also diploma holders,
graduates and even our very own
employees, for we believe having an
educated society will benefit Malaysia’s
future competitiveness.
One of the initiatives we adopted to
realise the above is the three-year
English Literacy Programme, the first and
largest education initiative to be
undertaken by a Malaysian company
with PINTAR Foundation involving 50
PINTAR schools in Peninsular Malaysia.
I am especially proud of this initiative for
not only were we able to develop a pool
of 116 English language teachers to
have key skills and knowledge in early
English literacy but, the programme
benefited approximately 15,000 students.
A study was done in late 2014, which
shows the total social value resulting
from our RM3 million investment in this
programme is a whopping RM54 million.
31
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GROUP MANAGING DIRECTOR/
CHIEF EXECUTIVE OFFICER’S STATEMENT
I have always personally believed that
education is a major component to the
development of our social and economic
capital. Education inspires creativity and
fosters innovation, provides our workforce
with the necessary skills to be able to
compete in the modern labour market,
and it is a key driver of growth in the
economy.
Sustainability at UEM Group of
Companies is not only a matter of
innovation or technological advancement
embedded in business operations. Our
sustainability journey is also about
improving lives, creating employment,
opening doors and meeting needs for
the thousands of communities in areas
where we operate.
The success of past initiatives not only
gives us great confidence for the future,
but it has also inspired us to continue
fulfilling and extending our sustainability
commitment. Our promise is this – we
can and we will continue to make
sustainable progress possible one day at
a time.
While we are currently supporting local
universities, Government institutions and
foundations such as Yayasan AMIR,
PINTAR Foundation and Yayasan
PENERAJU, we are adamant in our efforts
to refine, expand our existing programmes
as well as support other key educationbased activities and organisations that
would help develop Malaysia’s human
capital. We want to give more
opportunities to the young ones and our
staff to hone their skills and be
competitive, competent and productive.
We believe actions speak louder than
words – Promises made, Promises kept,
which is why we are resolute in continuing
our relentless effort of making change,
of charting business growth and of
finding new opportunities to leave a
positive impact on society.
Dato’ Izzaddin Idris
Group Managing Director/
Chief Executive Officer
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM GROUP OF COMPANIES
SUSTAINABILITY
FOCUS AREAS
At UEM Group, we believe that sustainable
business operations ensure success in the
years to come. UEM Group intends to
continue to strategically integrate
sustainability into our operations and
combine this with sustainable goals for
further growth and value-creation for the
benefit of our stakeholders.
One of UEM Group’s commitments is the development of communities that we serve
and operate in. Our ventures and contributions have touched the lives of many and
helped spur economic growth through the provision of amenities and services. Our
corporate responsibility efforts are aligned with UEM Group’s strategic business priorities
and are integral to all our relationships with our employees, stakeholders, communities
and environment.
33
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
In reaffirming our commitment towards social, environmental and economic performance, we aim to contribute positively and
sustainably in the following focus areas:
Creating a culture of excellence and competitiveness and nurturing a
knowledgeable society through the continuous development
of stakeholders.
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
Operating responsibly as a member of the community through positive
contributions to enhance the quality of life and make a difference in society and
the nation.
CORPORATE COMMUNITY
DEVELOPMENT
Reducing and managing our operational impact on the environment in four key
areas of energy & climate, materials, ecosystem and local communities.
GREEN
ENVIRONMENT
Continuous improvement of Health & Safety practices to meet global standards
and best practices at the workplace, project sites and operating locations.
HEALTH &
SAFETY
Adding value to our stakeholders by focusing on innovation and operational
improvements to strengthen our ability in delivering profitable and long-lasting
growth.
VALUE
CREATION
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GOVERNANCE
“The Board of UEM Group recognises
the value of maintaining strong
corporate governance not only at UEM
Group, but also across its Operating
Companies. This practice is essential in
the interest of our business integrity
and in delivering sustainable long-term
value to our shareholders”.
We strive to adopt good governance,
which helps guide us towards managing
sustainability and fulfilling our corporate
responsibility effectively and conscientiously.
Our Board and the respective Board
Committees discuss performance and
implement plans based on our strategic
sustainable efforts.
The Operating Companies are responsible
for driving sustainable practices across
the core businesses Group-wide. This
on-going commitment reflects the
importance of sustainability and the
fundamental role it plays in our business.
UEM Group’s Management Committee
is committed towards best practices,
with focus on overall strategic objectives,
risk management, code of conduct, and
governance of rewards and remuneration.
It is the role of our Board and
shareholders to ensure that UEM Group
is led in the right direction through
transparency, accountability and longterm stability. Our Board aims to
continuously enhance our corporate
governance to ensure compliance and
relevance with industry best practices.
35
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
BOARD COMPOSITION
The Board of UEM Group is chaired by a Non-Independent Non-Executive Chairman. It comprises of four Independent
Non-Executive Directors, with a total of nine members to ensure balance of power and authority on the Board.
Please refer to UEM Group’s website www.uem.com.my for the Boards’ complete profiles.
A number of the members of our Board of Directors also sit on the Boards of UEM Group of Companies to reflect our
Management’s representation across our businesses and operations.
Their representation in the respective Operating Companies ensure that good corporate governance practices are observed and
consistently practised across the Board.
UEM Group Berhad’s
Board of Directors
1
Tan Sri Dr Ir Ahmad Tajuddin Ali, FASc
2
Dato’ Seri Ismail Shahudin
3
Dato’ Noorazman Abd Aziz
4
Tan Sri Dato’ Ir Omar Ibrahim
5
Lim Tau Kien
6
Dato’ Izzaddin Idris
7
Abdul Kadir Md Kassim
8
Zaiviji Ismail Abdullah
9
Wong Shu Hsien
PLUS
PEIB
UEM
Sunrise
UEM
Builders
CIMA
UEM
Edgenta
Opus
Edgenta
PROPEL
RESPONSIBILITIES OF UEM GROUP’S BOARD
The Board provides stewardship in UEM Group’s strategic direction and influences operations to maximise shareholder value. The
Board’s principal responsibilities are as follows:
• Reviewing and adopting strategic and financial plans for UEM Group.
• Overseeing UEM Group’s business conduct to evaluate and review proper business management.
• Identifying principal risks and ensuring the implementation of appropriate systems in managing these risks.
• Overseeing succession planning, which includes Key Management appointments, training, compensation, retention and
replacement.
• Developing and implementing an investor relations programme or shareholder communication policy for UEM Group.
• Reviewing the adequacy and integrity of UEM Group’s internal control systems and management information systems to
ensure compliance with applicable laws, regulations, rules, directives and guidelines.
• Formalising and reviewing performance of key sustainability initiatives and recommending improvements in the aspects of
environmental, ethical, social and governance of the business.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
No. of Trainings Attended
Access to Information and Advice
The Directors have full and unrestricted
access to all information pertaining to
UEM Group’s business affairs, whether
as a full Board member or in their
individual capacity. This enables them to
discharge their duties effectively. There
are matters specifically reserved at the
Board’s discretion, as defined in the
Company’s Discretionary Authority Limit
(DAL) to ensure that the direction and
control of UEM Group is firmly in place.
The Board is furnished with an agenda
and a set of papers is delivered in advance
prior to each Board meeting for the
Directors to review, evaluate and discuss.
The Board papers contain both quantitative
and qualitative information, which include
comprehensive management reports,
minutes of meetings, proposal papers and
supporting documents.
In discharging their duties, the Directors
are assured of full and timely access to all
relevant information pertaining to UEM
Group. They may, if necessary, obtain
independent professional advice from
external consultants, with consent from
the Chairman or Committee Chairman.
Capacity Building
To enhance the Board’s skills and
knowledge, UEM Group acknowledges
that continuous capacity building is vital
for our Board members to keep abreast
of the latest in technological advancement,
the economic landscape, regulatory
compliance and management strategies.
All newly appointed Directors will
undergo a formal induction programme
provided by the Group MD/CEO and
Key Management of UEM Group. All
appointed Directors have attended
relevant training programmes and
seminars organised by various regulatory
and professional bodies to further
enhance their skills and capabilities.
UEM Group Berhad’s Board of Directors
2013
2014
1
Tan Sri Dr Ir Ahmad Tajuddin Ali, FASc
24
31
2
Dato’ Seri Ismail Shahudin
8
7
3
Dato’ Noorazman Abd Aziz
6
6
4
Tan Sri Dato’ Ir Omar Ibrahim
1
1
5
Lim Tau Kien
6
5
6
Dato’ Izzaddin Idris
5
6
7
Abdul Kadir Md Kassim
1
2
8
Zaiviji Ismail Abdullah
10
5
9
Wong Shu Hsien
6
6
BOARD COMMITTEES AT
UEM GROUP
Nominations & Remuneration Committee
The Nominations & Remuneration
Committee assists the Board in the
nomination of new Directors and
remuneration packages of Executive
Directors and Key Management.
A Framework of Policies based on
which the Committee makes its
recommendations to the Board has been
established for the nomination of new
Directors and remuneration of Executive
Directors and Key Management.
The Committee is also responsible for
reviewing and implementing evaluation
procedures as well as reviewing proposals
for the remuneration package of each
member of UEM Group’s Committees,
as and when instructed by the Board.
The Nominations & Remuneration
Committee recommends to the Board
the remuneration package of an
Executive Director, while it is the
responsibility of the Board to approve
the recommendation with the Executive
Director concerned abstaining from
deliberating and voting on the same.
Audit Committee
The Audit Committee supports the
Board’s oversight on UEM Group’s
financial performance and reporting to
fulfil its statutory and fiduciary
responsibilities. This relates to internal
controls, financial and accounting
records, risk management, management
information systems and policies as well
as financial reporting practices, of UEM
Group. The Audit Committee also
reviews any related party transactions
and conflict of interest situations that
may arise within UEM Group.
The following are the main duties and
responsibilities of the Audit Committee:
• Reviewing financial statements of
UEM Group of Companies prior to
approval by the Board.
• Overseeing UEM Group’s internal
control structure to assure operational
effectiveness and efficiency, reduce
the risk of unreliable financial
reporting, protect UEM Group’s
assets from misappropriation and
ensure legal and regulatory
compliance.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
• Assisting the Board in identifying
high-impact risks in achieving UEM
Group’s objectives and ensuring the
implementation of appropriate
measures to manage these risks.
• Deliberating major findings from
investigations by internal audit and
reviewing the extent to which the
recommendations are implemented
and the timeliness of the responses
received.
• Recommending to the Board on
the appointment and annual
reappointment of external auditors
and audit fees, taking into
consideration the independence and
objectivity of the external auditors and
the cost effectiveness of the audit.
RISK MANAGEMENT COMMITTEE
AT UEM GROUP
The Risk Management Committee (RMC)
of UEM Group comprises the Group
MD/CEO as the Chairman and co-opted
members from the Key Management
team as appointed by the Chairman.
The RMC at the Operating Company
level is headed by the respective
Company’s MD/CEO.
UEM Group’s RMC meets quarterly to,
among others, review and recommend
the risk management policies and
procedures for the approval or
acknowledgement of the Board; review
on-going adequacy and effectiveness of
the risk management process; ensure
that the Board receives adequate and
appropriate information for decisionmaking and review; and commission –
where required – special projects to
investigate, develop or report on specific
aspects of the risk management
processes of UEM Group of Companies.
Risk Management Policy
UEM Group is committed to ensuring
that risk management is effectively
applied in all that we do, across all our
businesses and at all levels, and that
both the ‘unrewarded’ and ‘rewarded’
risks are always appropriately managed.
We are committed in ensuring that the
system for identifying, assessing and
responding to risks, together with the
mechanisms for bringing significant issues
to the attention of the management and
Board of Directors, are fit-for-purpose,
flexible and constantly being improved.
Through a systematic and integrated
process, our risk management aims to:
• Contribute to the creation/protection
of enterprise value by proactively
identifying, assessing and managing
risks, which may be a threat to the
UEM Group’s business objectives
or potentially provide beneficial
opportunities.
• Facilitate timely and informed
business decisions after accounting
for the uncertainty implicit in our
business and the possibility of future
events occurring.
• Contribute to sound corporate
governance, achieve sustainable
shareholder value and safeguard our
reputation.
GOVERNING PRACTICES
UEM Group’s Code of Conduct sets out
the appropriate conduct required to
enhance governance standards in order
to achieve a benchmark for ethical
behaviour based on trustworthiness,
social responsibility and accountability.
Our Directors and employees are
expected to conduct themselves ethically
and professionally at all times to protect
and advance UEM Group’s reputation.
GOVERNANCE
Our Code of Conduct includes guidance
on disclosure of conflict of interest,
maintaining confidentiality, our ‘no gifts’
policy, and practices relating to
entertainment, personal solicitation and
graft, among others.
In line with Section 368B of the Companies
Act 1965 (the Act), our Whistle Blower
Policy provides a mechanism for
employees to raise genuine concerns of
unethical behaviour, actual or suspected
fraud or dishonesty, or violation of our
Code of Conduct.
In addition to and in compliance with
the provisions under the Personal Data
Protection Act 2010 (PDPA), we have
introduced the UEM Group Berhad
Privacy Policy, which details the types,
uses, and protection principles of
personal information provided or made
available to UEM Group.
Our Group-wide Social Media Policy
states the do’s and don’ts on the use of
social media by employees, either as
part of their job or in their personal
capacity, to ensure that UEM Group’s
reputation and interests are protected.
This also governs their actions in relation
to the potential breaches of confidentiality
and respect for the individuals and
communities with whom they interact.
During both years under review, there
were no reported incidences of fines or
penalties in relation to anti-competitive
behaviour, monopolistic practices and
non-compliance issues. There were also
no complaints regarding breaches of
customer privacy and losses of customer
data received. UEM Group does not
receive financial assistance from the
Malaysian Government and has not
accepted any financial contributions or
aid from political parties in the country.
38
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Group Berhad’s
Board of Directors
39
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GOVERNANCE
Standing from left to right:
Dato’ Noorazman Abd Aziz
Non-Independent Non-Executive Director
Zaiviji Ismail Abdullah
Non-Independent Non-Executive Director
Dato’ Izzaddin Idris
Group Managing Director/ Chief Executive Officer
Tan Sri Dato’ Ir Omar Ibrahim
Independent Non-Executive Director
Sitting from left to right:
Abdul Kadir Md Kassim
Independent Non-Executive Director
Lim Tau Kien
Independent Non-Executive Director
Tan Sri Dr Ir Ahmad Tajuddin Ali, FASc
Chairman
Wong Shu Hsien
Non-Independent Non-Executive Director
Dato’ Seri Ismail Shahudin
Independent Non-Executive Director
40
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
STAKEHOLDER
ENGAGEMENT
As part of our commitment to sustainable
business practices, we regularly engage
with our key stakeholders as it helps us to
understand, prioritise and manage our
sustainability impact as an organisation.
41
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Shareholders
Employees
Financiers
NGOs
Fund Managers
Media
UEM GROUP
Partners
OF COMPANIES’ STAKEHOLDER GROUPS
Local
Communities
Customers
and Clients
Ministries and
Agencies
Suppliers
Federal and State
Governments
At UEM Group of Companies, stakeholder engagement is largely led by the respective business units whose operations are most
impacted by a particular stakeholder group. Channels to engage with stakeholders include surveys, campaigns, workshops,
corporate social responsibility programmes and union structures (applicable at CIMA and PLUS only).
In these engagement sessions, seen as an approach in managing our risks, we select stakeholder groups based on guidance
from UEM Group’s defined categories of impacts and risks. These risks include external forces (i.e. competition and regulation),
perception (i.e. reputation), people-related issues (i.e. internal fraud, retention, and recruitment), and internal process risks
(i.e. supply chain management and data protection).
42
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
“UEM Group’s approach to sponsor 50 schools for the English Literacy
Programme over a 3-year period is not only engaging, it is also a
sustainable approach to education development with its teacher
development programme. At the same time, by involving some of its
employees as volunteers for the student/parent activities, its internal
stakeholders are also engaged in a meaningful way.”
GROUP
BUSINESS
DEVELOPMENT
“With increased competition both locally and abroad, UEM Group can
remain competitive by addressing our sustainability drivers, which
impact our operations. Among them are cost optimisation, expense
management, customer demands, workforce retention and regulatory
requirements.”
GROUP
HUMAN CAPITAL
“At UEM Group, Human Capital is placed at the top of the company’s
strategic agenda, which is in line with our tagline ‘Building Nation and
Communities’. In remaining competitive, we need to focus on talent
management to ensure the right competencies are defined and our
employees are upskilled to address our business needs.”
“It is our aim to encourage all employees and their families to
participate in Sports Club activities. We believe these activities serve
as an engagement platform that can enhance working relationships
among our employees.”
“The UEM Group-PINTAR Foundation collaboration is the largest scale
Corporate Social Responsibility (CSR) funded teacher development
programme that the British Council has delivered in Malaysia. It has
seen the adoption of 50 schools and the professional development of
116 teachers over a period of 3 years.”
“UEM Group has proven to be highly responsive to the needs of the
schools under their sponsorship, and has been very open to initiating
and involving itself in activities and events that are beneficial to the
students and communities their schools operate in.”
43
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
STAKEHOLDER
ENGAGEMENT
EVENT HIGHLIGHTS
In 2013 and 2014, UEM Group participated in key events and
exhibitions that are aligned with our business and sustainability
strategies. In particular, we focused our participation in
industry-specific events to keep abreast of current issues, while
maintaining a presence among our peers and industry players.
We engaged with potential stakeholders and partners in the
marketplace, including potential hires for our workforce.
Engagements with Group MD/CEO
UEM Group has three informal and
interactive engagement platforms, on
which provide the opportunity for our
Group MD/CEO to share updates on the
Company and other industry related
developments, as well as exchange ideas
and suggestions with employees at all
levels. At the same time, these sessions
also gave employees the opportunity to
convey their concerns directly to the
Group MD/CEO.
These engagements include our annual
“Jom Sembang” townhall event involving
personnel from the Central, Northern
and Southern regions. We also organised
an annual “Kopitiam with Group MD/
CEO” event and bimonthly “Chat
with….” sessions. Private engagement
sessions were also held to give
participants of our Graduate Training
Programme the opportunity to interact
with our Group MD/CEO.
44
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
2013 Event Highlights
17
APRIL
Majlis Penyampaian
Sumbangan Sempena
Malam Wartawan,
Hotel Istana, Kuala Lumpur
26-28 04-08
MARCH
MARCH
14 Road Engineering
Association of Asia &
Australasia (REAAA) Exhibition,
KLCC Convention Centre,
Kuala Lumpur
UKEC-GRADUAN Career
Fair 2013, Lancaster,
United Kingdom
Brunei International Health,
Safety and Environment
Conference & Exhibition
2013 (BIHSE 2013), Royal
Brunei Polo and Riding
Club, Jerudong, Brunei
Anti-Corruption Awareness
Talk with Malaysian
Anti-Corruption Commission
(MACC), UEM Learning
Centre (ULC), Petaling Jaya
JUNE
MoU Signing Ceremony
with Department of
Environment Malaysia,
Awana Genting, Pahang
06-07
JULY
GRADUAN ASPIRE 2013,
Kuala Lumpur Convention
Centre (KLCC),
Kuala Lumpur
JULY
Majlis Hari Raya at
Northern, Central and
Southern Regions, Malaysia
APRIL
05
02-03
19 AUGUST04 SEPTEMBER
26
09-11
SEPTEMBER
PSKLM International
Expressway Conference &
Exhibition (PIECE) 2013,
Persada Johor Convention
Centre, Johor
45
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
26
STAKEHOLDER
ENGAGEMENT
Media Tour Showcase and
Press Conference, Mont’
Kiara, Kuala Lumpur
SEPTEMBER
22-23
27-28
OCTOBER
SEPTEMBER
JKR Roadshow,
Hotel Pacific Sutera,
Kota Kinabalu, Sabah
BN Youth Job Fair,
Putra World Trade Centre
(PWTC), Kuala Lumpur
05, 19 & 20
‘Year-End
Escapades’ for
OCTOBER
Loyal Customers, Danga
UEM
Family
Sunway
Bay,
JohorDay,
Bahru
Lagoon Putrajaya,
Putrajaya
30
17
21
Exchange of Agreement
with Yayasan AMIR,
Mercu UEM, Kuala Lumpur
Mini Olympics of the
Titans with Ministry of
Youth and Sports,
Kuala Lumpur
Year-End Escapades for
Loyal Customers, Danga
Bay, Johor Bahru
OCTOBER
NOVEMBER
DECEMBER
46
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
2014 Event Highlights
17 – 23 MARCH,
07 – 16 NOVEMBER,
21 AUGUST –
01 SEPTEMBER
Property Roadshows,
Publika, Kuala Lumpur
09
25
PLUS’ Collaboration with
Kidzania, Curve, Mutiara
Damansara, Selangor
Health, Safety & Environment
(HSE) Conference for the LRT
Line Extension Project, Sime
Darby Convention Centre,
Kuala Lumpur
JANUARY
16
APRIL
Institute of Marketing
Malaysia (IMM) CEO Talk
Series, “Driving Through
the Stormy Weather”,
Persada PLUS, Petaling Jaya
17-18
MAY
GRADUAN ASPIRE 2014
Career & Postgraduate Fair,
KLCC, Kuala Lumpur
MARCH
04-06
MARCH
17th Southeast Asian
Healthcare & Pharma Show
2014, Kuala Lumpur
Convention Centre (KLCC),
Kuala Lumpur
29 MARCH – 01 APRIL
UKEC-GRADUAN Career
Fair 2014, London,
United Kingdom
18-28
MAY
International Road
Federation (IRF) Seminar
by Opus Group Berhad,
Kuala Lumpur
23-25
MAY
BN Youth Job Fair 2014,
Dataran Putrajaya,
Putrajaya
47
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
11-25
AUGUST
Majlis Hari Raya at
Northern, Central and
Southern Regions, Malaysia
STAKEHOLDER
ENGAGEMENT
08
JUNE
09
JUNE
Pameran Kejuruteraan
Jabatan Kerja Raya 2014,
Construction Exhibition at the
Conference of Senior
Personnel of JKR Malaysia,
Port Dickson, Negeri
Sembilan
GLC ExplorAce, jointly
organised by Ministry of
International Trade and
Industry (MITI) and Tenaga
Nasional Berhad (TNB),
TNB Sports Complex,
Kuala Lumpur
26
02-04
AUGUST
17th National Conference &
Exhibition on Occupational,
Safety & Health (COSH
2014), KLCC, Kuala Lumpur
SEPTEMBER
Tunnels and Underground
Structures Exhibition &
Seminar 2014, Istana Hotel,
Kuala Lumpur
10-12
NOVEMBER
Malaysia Road Conference,
Sunway Pyramid Convention
Centre, Selangor
17 – 19 SEPTEMBER
International Construction
Week 2014, Putra World
Trade Centre (PWTC)
Kuala Lumpur
05
SEPTEMBER
Malaysian Job Fair,
Midvalley Megamall,
Kuala Lumpur
19
AUGUST
Vendor Development
Programme MoU Signing
Ceremony with MITI,
Kuala Lumpur
48
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
MATERIALITY
ASPECTS
This Report is prepared
in accordance with
GRI G4 Guidelines
and based on the
aspects which are
material to UEM Group.
GRI G4 Guidelines
define materiality as
“topics that have a
direct or indirect impact
on an organisation’s
ability to create,
preserve or erode
economic, environmental
and social value for
itself, its stakeholders
and society”.
UEM Group’s sustainability opportunities and risks were
identified and assessed based on key sustainability priority
areas. Aligned with UEM Group’s five sustainability focus areas,
the material aspects were identified through a methodical
approach to ensure that sustainability initiatives and programmes
are implemented.
Our approach to materiality assessment is as follows:
• Assess a wide spectrum of internal and external feedback
to develop an overall evaluation on what matters most to
our stakeholders. On gathering feedback from interviews,
surveys and benchmarking studies, we assess the material
aspects according to the following criteria:
-
-
-
-
-
-
-
Stakeholder engagement
Internal performance metrics
Overall performance assessment
Media coverage
Innovative development
Competitors’ reports
Policy and regulatory trends
• Include our Board and Senior Management in the review of
UEM Group’s key business issues in relation to key
sustainability areas.
• Create a materiality matrix encompassing key business
issues, which were assessed in terms of their potential
economic, environmental and social impact on UEM Group
and our stakeholders.
• Seek Senior Management’s approval of the materiality
matrix and aspects identified for UEM Group, after which
are mapped against the GRI Aspects. GRI indicators are
then assigned and outlined in UEM Group’s GRI Content
Index, where relevant.
49
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM GROUP’S MATERIALITY MATRIX
Increasing Concerns to Stakeholders
•
•
•
•
Stakeholder Relations
Business Ethics
Ethical Consumerism
Public Safety
• Resource Use and
Conservation
• Fleet Management
•Innovation
• Customer Relations
• Disaster Recovery
• Energy Efficiency
• Local and Regional
Economic Impacts
• Employee Wellbeing
and Relations
• Community Support
• Data Privacy &
Security
•Remuneration
• Human Rights
• Business Partner’s
Environmental and
Social Impact
• Human Capital
Development
• Supplier Impact
• Climate Change and
Carbon Management
• Corporate Governance
•Conservation/
Biodiversity
• Workforce Diversity
• Waste Management
• Business Partner’s
Economic Impact
•Regulatory
Compliance
Increasing Current or Potential Impact to UEM Group
50
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Facts at a Glance
70%
RM1.4 COURSE FEES
million
of employees
222
CONTINUING
SPONSORED
of total
to
qualified applicants through the
UEM Study Grant Programme
in
2014
pursuing further
education is covered by
EDUCATION
PROGRAMME
EDUCATION
& HUMAN
C A P I TA L D E V E L O P M E N T
N
T
51
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
“Education and Human
Capital Development are key
focus areas in our
sustainability approach.”
Education and Human Capital Development is one of the key
focus areas in our sustainability approach. We are continuously
striving to enhance our employees’ capabilities in effort to
build a competitive edge for UEM Group of Companies. In our
efforts to remain competitive, the Operating Companies’ HRrelated practices and policies are continuously enhanced to
support and deliver our ambition of being ‘Employer of
Choice’.
At UEM Group, we invest in capacity building and are committed
to elevate career opportunities for all employees. In line with our
transformation plan, we have developed numerous HR initiatives,
which include talent management, succession planning, capability
development, performance management and employee
engagement. Through these initiatives, employees get the
opportunity to grow, foster dynamic interactions as well as
develop leadership skills.
In 2014, we formally included volunteerism and employee
contribution in our performance appraisals. These centre on
employees’ performance and achievements, as well as their
demonstration of Company values and core competencies to
ensure that our employees are rewarded accordingly.
We recognise and promote Senior Management’s engagements
with our employees to continuously get feedback and ideas.
These sessions are important in engaging the hearts and minds
of our employees by communicating the vision and strategic
direction of the Company.
In meeting UEM Group’s long-term business goals, Group
Human Capital will continue to evaluate and assess our HR
capabilities. Upskilling and training are key initiatives to ensure
that HR practitioners deliver the utmost value Group-wide.
Group Human Capital will further explore HR management
strategies to provide easier access to HR-related information
and analytics.
The effective implementation of our policy framework as well
as the necessary changes in our human capital strategy enable
us to further invest in our people and future employees.
Aim
• To be the leading ‘Employer of Choice’
• To build a stronger and competent workforce to
meet the Group’s business objectives
Progress
• Provide Group-wide development programmes for
all levels of employee
• Increase top leadership involvement in employee
engagement initiatives
Way Forward
• Streamline and enhance workforce competencies to
cater to core business needs
• Drive a performance-driven culture
• Execute high impact development programmes to
accelerate competency building
• Continuous leadership engagements across all
employee levels
52
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
OUR WORKFORCE
15,000
UEM GROUP OF COMPANIES HAS OVER
EMPLOYEES NATIONWIDE
AS OF DECEMBER 2014, A 1.3% INCREASE FROM 2013.
EMPLOYEE TURNOVER IN 2013 AND 2014 TOTALLED
1,693 AND 1,188 RESPECTIVELY.
10%
16%
16%
16%
27%
27%
46%
41%
Employee Turnover by Age Group
Year 2013
Year 2014
<30
30-39
40-49
>50
41%
59%
34%
66%
Employee Turnover by Gender
Male
Female
Year 2013
Year 2014
53
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
A diverse workforce drives innovation and relationships based on trust among shareholders, employees, customers, suppliers and
communities. Our employees are treated fairly and equitably. Annually, all employees are appraised based on performance with
remuneration being awarded, regardless of gender or ethnicity. Maintaining a diverse workforce ultimately enhances UEM Group’s
brand and reputation.
Employee Breakdown by Ethnicity
4%
4%
Employee Breakdown by Gender
42%
36%
5%
4%
9%
13%
2014
2013
2014
2013
79%
64%
82%
58%
Malay
Indians
Female
Chinese
Other
Male
Employee Breakdown by Age Group
2014
28%
30%
31%
12%
<30
30-39
2013
0%
28%
26%
20%
40%
29%
60%
40-49
17%
80%
>50
100%
54
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Female Employee Breakdown by Job Category
50%
40%
37%
47%
39%
44%
29%
20%
28%
30%
10%
Year 2013
0%
Year 2014
Managerial
Executive
Non-Executive
Male Employee Breakdown by Job Category
80%
70%
60%
63%
20%
53%
56%
30%
61%
40%
72%
71%
50%
10%
Year 2013
0%
Year 2014
Managerial
Executive
Non-Executive
Female Representatives in Management Level within UEM Group of Companies
70%
60%
0%
UEM
Group
PLUS
UEM
Sunrise
16%
14%
21%
16%
22%
33%
53%
UEM
Builders
14%
13%
10%
11%
34%
31%
20%
36%
36%
30%
57%
40%
60%
50%
Year 2013
Year 2014
CIMA
UEM
Edgenta
Opus
Edgenta
PROPEL
On average, the percentage of females represented at the Management level increased in five of eight UEM Group of
Companies. However, there was a decline at the AFM Companies, which could be attributed to the integration and structural
changes within UEM Edgenta, Opus and Edgenta PROPEL.
55
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Performance Management
At UEM Group of Companies, annual
performance reviews are a key aspect in
enhancing employees’ career development
and recognising their achievements.
Our Performance Management System
(PMS) comprises of KPI Planning, midyear and year-end reviews. PMS is used
to evaluate and reward employees’
achievement in accordance with their
respective KPIs, competencies and
contributions. It helps us to identify
potential high performers across all
levels of the company. Ultimately, PMS
allows us to track employees’
performance and align them with UEM
Group’s business objectives and efforts.
Benefits & Compensation
In line with our vision to be the ‘Employer
of Choice’, we acknowledge the
importance of remuneration and benefits
for our employees. We are committed to
ensure that all employees receive fair
pay, are not discriminated against in the
workplace and continuously receive
benefits relating to their professional
development and personal well-being.
Permanent employees of UEM Group of
Companies receive the UEM Group
Personal Accident and UEM Group Term
Life insurance. They are entitled to
medical leave, outpatient medical
treatments, as well as dental and
hospitalisation benefits. The outpatient
medical, dental and hospitalisation
benefits are also extended to permanent
employees’ immediate family members.
Female employees are entitled to 60
days of maternity leave. Temporary
employees also benefit from annual
leave, UEM Group Personal Accident
Insurance, medical leave and outpatient
medical treatment. All benefits are
implemented to attract and retain our
employees.
Local Content
UEM Group of Companies prioritises
local hires without compromising talent
and expertise. Our active participation in
numerous local and international career
fairs demonstrates our commitment to
employ the best talents. In both 2013
and 2014, an average 0.4% of our total
workforce consisted of foreign hires.
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
56
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
PROFESSIONAL DEVELOPMENT &
GROWTH
In 2013 and 2014, we invested RM12.90
million and RM13.75 million on human
capital development. The average
training hour per employee recorded at
UEM Learning Centre (ULC) was 9.93
hours in 2013 and 6.35 hours in 2014.
14
12
10
Cost (RM mil’)
Human capital development is one of
the core elements that support the
strategic initiatives of UEM Group of
Companies. We provide comprehensive
learning and development programmes
for all career levels – from Non-Executives
to Senior Management – aimed at
enhancing employees’ skills and
competencies. Empowering individuals
with the right knowledge and skills is
fundamental in realising our employees’
potential.
Human Capital Investment by UEM Group of Companies
8
6
11,133,977
12,353,306
4
2
1,761,916
1,392,256
0
2013
2014
Operating Companies
Own Programme
(In-house, External,
Overseas)
UEM Learning Centre
(ULC)
57
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
Group-Wide Human Capital Investment Breakdown by Category
RM2,579,179
RM2,708,137
20%
21%
2013 TOTAL SPENT
RM12,895,893
2013
59%
RM7,608,577
Functional/Technical Skill
Leadership Programmes
Generic Soft Skills
RM2,474,201
RM3,573,846
18%
26%
2014 TOTAL SPENT
RM13,745,561
2014
56%
RM7,697,514
Functional/Technical Skill
Leadership Programmes
Generic Soft Skills
58
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Human Capital Investment by UEM Group of Companies
31,350
132,960
196,773
27,723
129,571
140,236
121,418
412,175
100,000
123,924
200,000
595,204
114,155
300,000
40,051
400,000
174,325
500,000
302,814
Cost (RM)
600,000
121,196
700,000
490,297
Total Spent on ULC Programme
Year 2013
Year 2014
0
UEM
Group
PLUS
UEM
Sunrise
UEM
Builders
CIMA
UEM
Edgenta
Opus
Edgenta
PROPEL
Total Spent on In-house, External and Overseas Programmes
532,016
646,339
1,396,895
1,393,276
2,037,828
1,769,587
652,817
876,711
1,014,518
1,000,000
158,273
2,000,000
893,479
3,000,000
888,130
1,789,608
4,000,000
52,083
Cost (RM)
5,000,000
5,672,830
3,712,894
6,000,000
Year 2014
0
UEM
Group
Year 2013
PLUS
UEM
Sunrise
UEM
Builders
CIMA
UEM
Edgenta
Opus
Edgenta
PROPEL
59
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
Enhancing Leadership
As the capability of leaders has a direct
impact on our people, business
sustainability and bottom line results,
building UEM Group’s leadership
capabilities is critical to our success. In
times of organisational change and
business expansion, effective leadership
drives sustainable business performance
and change initiatives.
Middle and Senior Management Learning
& Development – Leadership Acceleration
Programme (LeAP)
We develop leadership capabilities at
every level of our organisation, making
significant investments in high impact
leadership programmes. Every year, 10%
of the Group Training Budget is allocated
to the Group Talent Fund for leadership
and talent development, as well as to
provide financial assistance to employees
pursuing academic qualifications.
LeAP, which was developed in
collaboration with the Australian Institute
of Management Western Australia, is
divided into two tiers – Tier 2 for Senior
Managers, Deputy Senior Managers and
Managers and Tier 1 for General
Managers and Deputy General Managers.
The programme includes intervention
approaches to accelerate learning and
development for identified employees
with high leadership and management
potential. Participants are selected based
on their roles and behavioural
compatibilities, which are evaluated by
Group Human Capital within the
respective Operating Companies.
Emerging Leaders Programme (ELP)
UEM Learning Centre (ULC)
Launched on 19 July 2006, ELP is one of
the key initiatives under the area of
People and Organisational Development.
ELP, which aims to ensure leadership
continuity for key positions in UEM
Group of Companies, provides an
effective and structured process to
identify, develop and retain high
potential employees.
ULC, a full-fledged training facility,
was established as the main custodian
of our human capital development
initiatives. The centre conducts intensive
training programmes focusing mainly
on the learning enhancement and
capacity development of our employees
to complement other learning and
development programmes undertaken
by UEM Group of Companies.
The programme is designed to nurture
and harness the leadership skills of
personnel ranging from Junior Executives
to Assistant Managers to prepare them
for future management roles. It offers
job rotation opportunities within UEM
Group of Companies to further enhance
our employees’ skills and knowledge in
various disciplines.
In addition to soft skills development
programmes, ULC also coordinates
functional and talent management
programmes from the Non-Executive to
Senior Management levels.
For Junior Executives, Program Majudiri
1Malaysia or PR1ME was implemented
across UEM Group of Companies in
November 2013. It is an Upward Mobility
Scheme (UMS) launched by the
Transformation Management Office of
the Putrajaya Committee on GLC High
Performance (PCG) Secretariat. The
programme is designed to equip NonExecutive employees with the required
skills and competencies for professional
growth and consequently, improve their
socio-economic well-being.
60
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
EMPLOYEE-FOCUSED INITIATIVES
UEM Group – Employee Value
Proposition Initiatives
UEM Group Study Grant Programme
Launched in 2014, UEM Group Study
Grant Programme was established to
provide financial assistance to children of
eligible employees (permanent or
contract, who have served three years at
UEM Group of Companies, with total
monthly household income of not more
than RM5,000).
Continuing Education Programme
(CEP)
Nurturing Young Talents
In addition to existing training
programmes, UEM Group also provides
employees with opportunities to gain
academic credentials such as CEP, a
financial assistance scheme that supports
deserving employees in pursuing parttime certificate/diploma/bachelor’s/
Master’s degree and professional
certifications.
In 2013, UEM Group launched the Young
Engineers Programme (YEP) and Young
Graduates Programme (YGP), which are
part of our talent management initiatives.
These programmes were specifically
designed for high potential engineering
graduates on permanent employment to
fit into our technical talent pipeline for
future Project Managers, Construction
Managers and Project Directors.
CEP encourages employees to advance
their academic qualifications and prepare
them for challenging future roles and
responsibilities. The financial assistance
provided by CEP covers 70% of the total
course fees, while the employee settles
the remaining 30%.
YEP is a five-year programme structured
to develop high potential engineering
graduates with the required engineering
qualifications and to help equip them with
technical competencies and accreditation
as professional engineers by the Institution
of Engineers Malaysia (IEM).
26 18
YGP, on the other hand, is aimed at
fresh graduates from other fields to build
the Group talent pipeline for leadership
roles in other areas such as Accounts,
Business Development, Finance and
Human Resource.
30 11
Graduates employed under YEP and YGP
are mentored by Senior Management
personnel and placed alongside
experienced employees through cross
assignments and job rotation. Besides
imparting technical knowledge, both
programmes also focus on developing
skills in strategic thinking and leadership.
YEP:
YGP:
employees in
employees in
2013
employees in
2014
2013
employees in
2014
The programme allows students to
pursue tertiary education in any full time
course at a public/private college/
university/vocational/technical institute. It
provides grants of up to RM4,000 for
pre-university, RM6,000 for diploma and
RM10,000 for bachelor’s degree.
Within 2014, the programme granted a
total of RM1.4 million to sponsor 222
qualified applications. Recipients of the
grant are not bonded with the Company,
and they are also not restricted from
receiving further assistance from other
registered charitable organisations.
61
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Employee’s Children Academic
Excellence Award
The annual event launched in 2012 was
to motivate and acknowledge the
academic achievements of our
employees’ children in major national
examinations such as UPSR, PMR, SPM
& STPM. In 2013 and 2014, a combined
total of 440 students who scored straight
As received this award.
PLUS – Child Development Centre
(CDC)
PLUS’ CDC, which began operations in
May 2009, was set up to create a safe and
healthy environment for our employees’
children. It caters for kindergarten and
nursery-going children between the ages
of four and six.
The curriculum for kindergarten education
is developed in line with Kurikulum
Standard Pra Sekolah (KSPK) under Pejabat
Daerah Petaling (PDP), while the curriculum
for nursery education is based on Permata
Curriculum under Jabatan Kebajikan
Masyarakat (JKM). The centre also
conducts extra co-curriculum classes such
as Speech & Drama, Gymnastics and
Taekwondo.
Students’ performances are assessed
through written assessments and teacher’s
observations based on students’
involvement in class activities as well as
behaviour. In all, the CDC had an
enrolment of 158 students in 2013 and
2014 combined.
UEM Sunrise – ‘Unleashing the Power
of One’ Programme
In 2013, UEM Sunrise launched the
‘Unleashing the Power of One’ programme
to align human capital, infrastructure,
systems and processes upon the merger
of UEM Land Berhad and Sunrise Berhad.
The programme has successfully
communicated UEM Sunrise’s enhanced
brand, vision, mission and values to all its
employees. Aimed at increasing
awareness as an entity based on the
shared values of Teamwork, Integrity, and
Passion for Success and Sincerity of Intent
(TIPS), the programme entailed the Power
of One Leadership Conference, 28
roadshows and monthly team meetings
with the respective departments.
UEM Builders – Leadership and
Technical Development
In 2013 and 2014, UEM Builders focused
on building its core competencies, mainly
in leadership and technical development,
capacity building and addressing
competency gaps. To sustain and develop
people capabilities, UEM Builders has
developed a tool called “Leadership
and Technical Competencies (LTC)
Assessment”. The assessment tool is
used to identify competency gaps in
Leadership and Technical areas as well as
make recommendations to close these
gaps through structured intervention.
In the area of self-development, UEM
Builders’ employees were required to
plan their learning and growth through
Individual Development Plans (IDP) that
indicate their career aspirations and the
competencies required to advance to
the next level.
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
Collaboration in Capacity Building
UEM Builders collaborated with various
educational institutes and statutory
bodies such as CIDB, Project
Management Academy (PMA) and
engineering consultants. To enhance its
project management capabilities, these
programmes were developed based on
the 10 Project Management Body of
Knowledge, a global standard of project
management best practices.
In 2014, 17 UEM Builders employees
were certified as Project Management
Professionals (PMP) by Project
Management Institute (PMI), an
internationally recognised professional
membership association.
In the same year, UEM Builders launched
a pilot programme, Professional Engineer
Attachment Programme (PEAP), in
collaboration with an engineering
consultant. The programme provides
engineers on-the-job attachment which
will lead to professional engineering
certification from Institute Engineering
Malaysia (IEM).
62
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Enhancing Leadership
To develop a highly skilled workforce in tandem with Group-wide initiatives, UEM Builders introduced the Business Leadership
Unleashing Excellence (BLUE) Programme, PMP and Talent Pool Programme (TPP) for potential leaders.
Leadership Programme
Description
Duration
Participation
BLUE
Establish a talent pool of future leaders
who are innovative, creative and agile. The
programme uses value-added measures as
a guide.
2 years
Assistant Managers to Senior
Management
TPP
Systematically identify, retain and deploy
high potential employees to be groomed
as future leaders at UEM Builders.
3 years
Assistant Managers to
Managers
PMP
Support employees’ professional leadership
growth while enhancing their project
management knowledge and skills. The
programme’s effectiveness is measured
based on the number of certifications
obtained, which is 17.
3 months
Middle Management to
Senior Management
63
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
EDUCATION & HUMAN
CAPITAL DEVELOPMENT
Edgenta PROPEL – PROPEL Safety
Passport (PSP) & Competency for
Infrastructure Maintenance (CIM)
In 2014, Edgenta PROPEL established
Malaysia’s first Occupational Safety &
Health Passport for highway maintenance
called PROPEL Safety Passport (PSP). In
collaboration with National Institute of
Occupational Safety & Health (NIOSH),
Edgenta PROPEL also developed a
series of Health & Safety modules to
address the needs of its employees and
contractors.
PSP is customised specifically to raise
highway maintenance personnel’s
awareness and knowledge of Health &
Safety at the workplace, as well as
ensure adherence to all Health & Safety
legal and statutory requirements. The
training modules utilise case studies,
discussions and role-playing
methodologies to deliver key learning
elements effectively and efficiently.
CIMA – Onboarding Programme:
Values-Based Approach
Recognising the challenges faced by
new hires in assimilating into CIMA’s
culture and environment, the Company
launched CIMA’s Onboarding Programme
in December 2014. The programme
prepares new hires for their impending
roles and responsibilities at CIMA.
New hires are inducted through a series
of training modules covering the
organisational structure, core values,
corporate culture, business and products.
The programme allows new hires to
integrate easily into a new social
environment and build their professional
network through a variety of learning
approaches such as team building
sessions, plant site visits, engagement
with Senior Officers and real-work
simulations.
In the same year, Edgenta PROPEL
launched an internal competency
development programme known as,
Competency for Infrastructure
Maintenance (CIM). CIM aims to enhance
and standardise technical and project
management competencies of Edgenta
PROPEL’s Operations and Project teams
such as Edgenta PROPEL’s Intervention
Team (PIT), Machine and Plant Operators,
Technicians/Chargemen and Supervisors.
64
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Facts at a Glance
RM4,590
million
Awarded contracts worth
in
2013 AND
RM4,880
million
in
2014
152
119
projects
projects
RM67
RM49
million
million
E-bidding programme 2013
E-bidding programme 2014
value creation of
value creation of
VALUE
65
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
To ensure the sustainability of our business, UEM Group of Companies strives to create value for our key stakeholders by
remaining competitive, relevant and in demand. We recognise the need for a sustainable value chain to ensure quality and
improve efficiencies. While generating measurable profit, it is important for us to stimulate social, environmental and economic
benefits.
In delivering quality products and services to end users, our supply chain management is supported by a system of interdependent
activities involving project execution, production, vendor management, administration, marketing and distribution.
Various supply chain initiatives were implemented across UEM Group of Companies to enhance vendor management while at
the same time, achieve cost savings. Among others, the implementation of the E-Bidding programme is to promote transparency
in our bidding process, while the Procurement Card (P-Card) initiative aims to measure cost savings in our procurement activities.
Vendor audits are conducted as part of our risk and mitigation management.
“We recognise the need for a sustainable value chain to
ensure quality and improve efficiencies. While
generating measurable profit, it is important for us to
stimulate social, environmental and economic benefits”.
Aim
Progress
Way Forward
• Strive for sustainability in our
business
• Enhance integrated value
chain, competitive
prioritisation and go-to
market approach to improve
effectiveness and efficiency of
delivery mechanism
• Enhance and standardise existing
procurement practices and grow the
procurement team across all
Operating Companies through
change management and people
development.
• Achieve cost savings through
supply chain management
programmes
• Implement new tools to support
and manage procurement functions
such as those relating to
procurement systems, data
strategies and the tendering
processes.
• Continuously improve and
innovate to add value to the
Company and clients
• Effectively manage our
business sustainably without
compromising social,
economic and environmental
aspects
• Evaluate risks beyond
financial and operational risks
relating to social,
environmental and climate
change impacts
• Continuous improvements
across our value chain,
including vendor and
contractor management
• Build new supplier base and
maintain existing supplier
relationships through continuous
improvement in supplier
management.
• Realise and deliver cost savings as
well as improved supplier
performance, quality of service and
risk management.
• Comply with Procurement Policy
and resolve breaches of Service
Level Agreements.
66
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
FINANCIAL PERFORMANCE
Aggregated
Financials
RM (mil‘)
2013
2014
12,144.8
14,004.7
Operating Costs
7,066.6
8,694.8
EBITDA*
3,665.3
3,893.3
Payments & Benefits to Employees
1,543.6
1,740.5
16.1
5.5
Capital Expenditure
1,476.2
2,767.7
Finance Costs
1,633.5
1,647.9
300.4
214.6
Employee Training
15.2
16.6
Community Care
24.1
20.7
7.8
15.0
Revenue
Community Investments
Income Taxes (including Zakat)
Environment
Aggregated Revenue
19%
21%
23%
20%
2014
RM14.0 bil
2013
RM12.1 bil
%
36
39
%
Items
* Earnings before Interests, Taxes, Depreciation and Amortisation.
21%
21%
In 2014, UEM Group of Companies achieved revenue growth of
15% with improvement from all segments. Advanced progress in
Cikopo-Palimanan Toll Road project in Indonesia and PLUS Fourth
Lane Widening Project in Malaysia, and the acquisition of Stewart
Weir in Canada were the major contributors to the revenue growth.
Expressway
Our EBITDA in 2014 was 6% higher than in 2013 in line with
higher revenue, partially offset by higher payments and benefits
to employees as a result of the higher number of employees as
well as salary increments.
Aggregated Revenue by Geography
Township & Property
Development
%
26
21%
Our Capital Expenditure for 2014 and 2013 mainly comprised
construction costs for the Cikopo-Palimanan Expressway Project
and PLUS Fourth Lane Widening Project.
Community investment incurred was mainly related to the upgrading
of facility and services for the operations of Kolej Yayasan UEM in
Lembah Beringin, Tanjung Malim, Perak.
Engineering &
Construction
Asset & Facility
Management
79
%
2014
RM14.0 bil
2013
RM12.1 bil
Despite the higher profits in 2014, we incurred lower income
taxes mainly due to the recognition of tax benefits arising from
investments at CIMA’s Bahau Second Production Line in
Negeri Sembilan.
74%
Local
Overseas
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
2,000
1,800
1,600
1,400
1,200
396
747
197
377
619
200
514
400
932
600
1,071
800
1,726
1,000
1,097
In 2013 and 2014, UEM Group awarded
contracts totalling RM4,590 million and
RM4,880 million, respectively. In view of
the business structure of UEM Group as
a Holding Company and Opus as a
consultancy provider, its contribution in
terms of contracts awarded is nominal
compared to the rest of the Operating
Companies.
Total Contract Awarded (RM mil’) Among Companies in Year 2013 and 2014
1,010
In improving cost effectiveness across
our operations, we have implemented
various supply chain initiatives such as
E-Bidding Programme and P-Card. The
implementation of these initiatives further
enhanced efficiency in the distribution
and marketing processes throughout our
supply chain.
VALUE
CREATION
734
SUPPLY CHAIN MANAGEMENT
Contract Amount (RM mil’)
67
0
PLUS
UEM
Sunrise
UEM
Builders
CIMA
UEM
Edgenta
Edgenta
PROPEL
Operating Companies
Year 2013
Year 2014
Total Contract Awarded by Vendor Category
RM244 mil
RM878.5 mil
RM1,744 mil
2014
2013
RM2,295 mil
RM551 mil
RM878.5 mil
RM2,879 mil
Bumiputera Vendors
Foreign Vendors
Within UEM Group
of Companies
Non-Bumiputera Vendors
68
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
E-Bidding
UEM Group’s E-Bidding Programme
aims to put in place a transparent
tendering process that encourages good
governance practices and a more
streamlined supply chain management
process. Our E-Bidding Programme
encourages competitive and fair market
value in the marketplace.
Since its introduction in 2007, we have
conducted a total of 1,625 training
sessions for our vendors. Named “Oneto-One”, these sessions train our vendors
in all aspects of E-Bidding and E-Bidding
Tender Policy.
In 2013, UEM Group of Companies
awarded a total of 152 projects under
the E-Bidding Programme. These totalled
RM1,038 million, with an estimated total
value creation of RM67 million. In 2014,
119 projects with a total value of
RM1,145 million were awarded. Overall,
the estimated total value creation in
2014 was RM49 million.
Group Demand Bundling & Procurement
Card (P-Card)
UEM Group of Companies was the first
GLC to implement the user-friendly
P-Card in 2007. It introduced the Group
Demand Bundling in the same year as a
means of approaching the market under
a single banner as “UEM Group”. The
approach has led to better pricing
advantage via bulk purchase discounts,
thus generating tangible cost savings
across UEM Group of Companies.
Since 2007, our E-Bidding Programme
has achieved an estimated total value
creation(1) of RM540 million (10.3%) based
on the total tender value of RM5,227
million for 874 awarded bids.
81%
INCREASE
IN VENDORS
TRAINED FROM
2013
Group-wide Summary of P-Card Transactions
Year
2013 2014
Number of Transactions Value
8,725
6,287 RM13.12 million
RM8.16 million
Group Demand Bundling Savings across UEM Group of Companies
2013
• Savings of RM78,000 through a 2-year contract (2013-2015) in stationery
supplies
2014
• Savings of RM45,000 through a 2-year contract (2014-2016) in pantry supplies
• Savings of RM1.3 million through a 5-year contact (2014-2019) in printing &
imaging solutions
The P-Card programme has simplified our administrative processes while at the same
time, increased Group-wide savings. The programme has improved our procurement
lead times through faster delivery and streamlined budgetary controls.
(1) Procurement Value Creation refers to any one, or a combination of the following:
(a) One-off cost reduction (e.g. asset disposal due to non-use/tax breaks)
(b) Free resources (e.g. higher productivity/re-deployment of manpower)
(c) Total cost reduction (e.g. negotiated savings/enhanced utilisation of equipment/reduced incidence
of breakdowns)
(d) Improved compliance (e.g. less leakages/reduced maverick buying)
(e) Demand management (e.g. more efficient usage/consolidation of volume/standardisation of
specifications)
69
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Business Excellence through Vendor
Development Programme (VDP)
In demonstrating support and commitment
to the Government of Malaysia’s
Bumiputera Vendor Development
Programme (VDP), the Ministry of
International Trade and Industry (MITI)
encourages all GLCs identified as Anchor
Companies to enter into MoUs. The VDP
aims to increase participation of the
Bumiputera business community by
enhancing their skill sets and capabilities
in important and strategic sectors essential
to our country’s economic growth.
On 19 August 2014, UEM Group signed
an MoU with MITI for the implementation
of UEM Group’s VDP. Under this
programme, we intend to implement a
robust and structured VDP to develop
existing Bumiputera suppliers.
The three- to five-year programme is
designed to nurture and grow promising
Bumiputera entrepreneurs in the
construction, property development and
expressway sectors. As part of MITI’s
requirements, UEM Group is required to
submit its VDP strategy, framework and
guidelines prior to implementation stage
by December 2014.
We apply the Business Excellence
Framework (BEF) model to assess potential
candidates for our VDP programme. BEF
is a comprehensive management tool to
assess company’s readiness in compliance
with excellent practices to enhance
business performance.
Used by many international companies to
promote the attainment of world-class
practices, BEF was introduced with the
aim of creating an environment for
continuous improvement that leads to
sustainable business success. The BEF,
which describes the elements essential to
sustainable organisational excellence,
consists of seven excellence indicators –
Leadership, Planning, Information,
Customer, People, Process and Results.
Following the assessment, selected
Bumiputera vendors are then enrolled
into the VDP.
VALUE
CREATION
Bumiputera Empowerment Agenda
(BEA)
In support of the Government’s
Bumiputera Empowerment Agenda (BEA),
UEM Group introduced in September
2014 its BEA Scorecard in six focus areas
where bumiputera equity ownership in
the corporate sector and asset ownership
can be enhanced.
The six focus areas selected by Khazanah
were existing Bumiputera initiatives by
UEM Group such as the Vendor
Development Programme (VDP), Anchor
Strategic Partnership (ASP), contract
carve-outs, human capital development,
affordable housing and procurement
spend. As at 31 December 2014, UEM
Group achieved or exceeded five of the
six BEA KPIs.
70
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
2013 and 2014 Highlights
PLUS Expressways International Berhad
PLUS upgraded its Total Expressway Maintenance Management System (TEMAN) to include new contractor management
subsystems called PLUS Online Registration System (PORS) and Contractor Information Database (CtID). TEMAN is a Decision
Support Tool that PLUS developed in 2000 to facilitate highway management including highway inventory or asset database,
highway conditions and the related maintenance activities. The newly added PORS allows contractors to register online while
CtID enables PLUS to monitor contractors’ profiles and performance online.
In May 2014, UEM Sunrise centralised its procurement function under Procurement & Contracts Division (PCD) to manage strategic
purchasing and streamline its supply chain management. The key benefits are higher cost savings, efficiency and effective
management controls.
In 2012, UEM Builders implemented the JD Edwards Subcontractor Module (Procurement) system. By 2013, it had integrated all
new projects into the system. The system is an integrated applications suite of comprehensive enterprise resource planning software
that optimises business processes and internal controls. This includes automated processes that enable accurate and reliable tracking
of real time data, expediting financial processes as well as analyses data for future references.
In July 2014, CIMA formalised its Vendor’s Code of Ethics to encourage vendors to conduct business in an open and transparent
manner in accordance with applicable laws, such as Personal Data Protection Act 2010 and Competition Act 2010. It also provides
an avenue for vendors to declare any potential conflict of interests which may arise. In 2013 and 2014, all CIMA’s vendors totalling
3224 were registered and managed under CIMA Vendor Database System.
In addition, CIMA focused on initiatives for a more robust procurement process, which include having long-term plans to ensure
timely supply of goods and services that are critical in meeting its core business objectives. Other initiatives include centralising core
purchases of key raw materials and major capital expenditure projects, as well as establishing simplified processes for “low value-high
quantity” products.
UEM Edgenta made improvements in its procurement processes to enhance transparency and efficiency as well as comply with
statutory requirements. These improvements include establishing and implementing Pre-Qualification Documents and Templates, and
updating documents with GST clauses. Over the last two years, UEM Edgenta has achieved an estimated total savings of RM2.03
million through the implementation of 19 cost saving initiatives.
Edgenta PROPEL
Edgenta PROPEL’s supplier management includes pre-qualification assessment prior to registration, annual performance evaluation,
supplier site visits and subsequent Material Reporting on suppliers’ product quality, as well as biannual contractor training. Based on
this initiative, Edgenta PROPEL is able to monitor and ensure the consistency of quality products and services from its suppliers.
71
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
VALUE
CREATION
To enhance its vendor management
programme, UEM Edgenta implemented the
following initiatives to assess and monitor
vendors’ performance in meeting UEM
Edgenta’s quality and standards.
HIGHLIGHTS: UEM EDGENTA’S
VENDOR IMPROVEMENT
PROGRAMME
Vendor Performance Review
UEM Edgenta’s annual Vendor
Performance Review evaluates all
central contract vendors and selected
local vendors at all sites, regional
offices and head offices. In the
performance reviews conducted in
2013 and 2014, the central contract
vendors and local vendors performed
satisfactorily, where those scoring an
average rating of 3.0 to 4.0 (out of
5.0) were retained. If performance
ratings scores fall between 2.0 and
2.9, vendors will be recommended for
monitoring, while those whose
performance ratings are below 2.0 will
be terminated and listed under the
“Inactive Vendor” list.
Vendor Audit Programme
The Vendor Audit Programme enables
UEM Edgenta to assess its vendor
system, business operations and
implementation relating to the service
and goods provided and supplied.
Through this Programme, the Company
is able to inspect and evaluate vendors’
quality and management systems,
control procedures and compliance, as
well as assess their viability,
management responsibility and
accuracy of documentation.
Vendor Perception Survey
To maintain a healthy working
relationship with its vendors and ensure
continuous improvement, UEM
Edgenta’s Vendor Perception Survey
provides a mechanism to encourage
two-way improvement. The survey is
designed to measure vendors’
perception of overall transaction
activities, quality of working relationship,
and communication.
72
UEM GROUP
GROUP BERHAD
BERHADSUSTAINABILITY
SUSTAINABILITYREPORT
REPORT
2014
2013/2014
Facts at a Glance
Introduced PROPEL Safety Passport
MALAYSIA’S
FIRST
OCCUPATIONAL
& HEALTH
PASSPORT
1,000,000
Achieved
MAN-HOURS
without Loss Time Injury (LTI) in
TWO MAJOR
PROJECTS
for highway maintenance
HEALTH
& SAFETY
73
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Group of Companies is committed to continuously improve our Health &
Safety standards and performance across the business operations. While we
adhere to existing regulatory and statutory requirements, we also promote
industry’s best practices at the workplace to enhance our Health & Safety
performance.
UEM Group’s Occupational Safety & Health Policy Statement communicates
the Company’s commitment to create and maintain a safe and healthy work
environment for our employees.
Group Occupational Safety & Health Policy Statement
UEM Group Berhad is committed to protecting the Safety & Health
of our employees, customers, and the communities where we
operate. It is our intent to demonstrate an ongoing and determined
commitment to improving Safety & Health at work throughout our
organisation in meeting or exceeding all applicable Safety & Health
requirements locally or internationally (where relevant).
We recognise that by integrating sound Health & Safety management
practices into aspects of our business, it will contribute to the
success of the organisation in delivering innovative products and
services to customers without exposure to risks that might be
fundamentally acceptable.
Guiding Principles:
• Ensure all employees are aware of their role and responsibility to
fulfill and sustain UEM Group’s Safety & Health management
systems and policies.
• Communicate Safety & Health policies and programmes to all
employees and others. Provide training and resources when
necessary.
• Incorporate Safety & Health best practices in all work activities.
• Manage and control hazards and risks associated with our
products, services, operations, processes and facilities at
workplace.
• Advocate the adoption of prudent Safety & Health principles and
practices by our service providers, vendors and suppliers.
This policy will be reviewed periodically in accordance with UEM
Group’s commitment to continuous improvement in Safety & Health
management.
Dato’ Izzaddin Idris
Group Managing Director/Chief Executive Officer
20 October 2010
Aim
• Continuously enhance Health & Safety
standards to ensure all operations are
in compliance with existing regulations
and best practices
• Provide a safe and conducive working
environment with zero fatalities and
incidents
• Promote an organisation culture which
supports Health & Safety at work to
enhance productivity
Progress
• Conduct Health & Safety training and
talks to Operating Companies to
increase employee awareness
• Inspections/Visits to ensure all
construction works follow our Safety
Policies & Procedures
• Conduct Health & Safety monitoring
on unsafe practices and conditions at
the workplace
• Improve Health & Safety Management
System across business operations
Way Forward
• Streamline Health & Safety monitoring
across UEM Group of Companies
• Continuous improvement of Health &
Safety Management System across our
business operations
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
PERFORMANCE
Prior to the establishment of the Health, Safety, Security and Environment (HSSE) Department at UEM Group, all health and
safety matters were managed by the Occupational Safety & Health (OSH), Security and Property Department. Recognising the
importance of governing and managing safety and health across UEM Group of Companies, the HSSE Department was
established to focus on Safe Systems at Work, Visible HSE Leadership, HSE Competence, Incident Management and Contractor
HSE Management.
The role of the HSSE Head, appointed in July 2014, is to provide leadership and advice in HSSE-related matters, HSSE Control
Framework and a five-year HSE Culture Transformation programme for UEM Group of Companies. In the initial stage, the HSSE
Department will review fundamental HSE standards, conduct HSE audits and provide relevant trainings for UEM Group of Companies.
GOAL Zero – HSE Culture Transformation Journey
2016
2017
2018
2019
2020
HSE Assurance – Audit & Review
Contractor HSE
Management
Incident
Management
HSE
Competence
Visible HSE
Leadership
Safe System
of Work
2015
HSE Tools – JHA, PTW, RAM
Risk Management Processes
– MOC
Turun Padang (Go & See)
Staff Engagement
Leader Standard Work
Front Line Staff
Front Line Supervisory Staff
HSE Leaders & Professionals
Reporting & Review
Root Cause Analysis
Learning From Incident
Pre-Tender Screening
Contract Management
Contractor Engagement
This Report focuses on UEM Group’s 2014 Summary Incident Report at Mercu UEM, Kuala Lumpur for 1 January 2014 to 31
December 2014 period. As of January 2015, all Operating Companies started reporting on their monthly HSSE statistics to the
HSSE Department of UEM Group.
2014 Incident Summary
Type
Recordable
Cases
No of
Cases
3
Details
Follow-Up
February 2014
Injuries (bruising, abrasion and swelling) on leg due to loosely fit gym
registration counter
Corrective and
preventive actions were
taken
September 2014
Tripped and slipped in the men’s toilet
February 2014
Epileptic seizure and fainted in the office
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
HEALTH &
SAFETY
UEM Sunrise
• Incorporated aspects of Quality
Safety, Health & Environment (QSHE)
in existing contractor management
and procurement processes;
• Organised annual QSHE Sustainability
Campaign to create awareness
among internal and external
stakeholders on the importance of
QSHE-related matters through fun
interactive engagements.
• S h a r e d i n f o r m a t i o n o n Q S H E
legislations, standards and industry
best practices while promoting peer
benchmarking.
• Organised monthly Construction
Audit Meetings to discuss QSHE
issues and share best practices at
project sites.
• Enforced mandatory submission of
Project Safety, Health & Environmental
Compliance Plan (PSHECP) and
Emergency Response Procedures
(ERP).
• Incorporated Safety, Health and
Environment (SHE) aspects in contract
agreements with supply chain
partners, which require all contractors
to comply with:
HSSE PROGRAMMES
PLUS
UEM Group
PLUS’ operations have been OHSAS
18001:2007 certified since 2006. To
promote a health and safety driven
culture among its employees, PLUS
inculcated knowledge in emergency
preparedness.
• Conducted annual Health & Safety
events to raise internal awareness
through activities such as “We Care
We Share Campaign”, “Fire Safety
Seminar”, “Building Fire Evacuation
Exercises”, and “Safety Boot Camp”.
• Provided training on Job Hazard
Analysis & Permit to Work for HSE
Officers at CIMA’s Perlis & Bahau
Plants in 2014.
In 2014, PLUS organised 14 Basic First
Aid & CPR training sessions conducted
by the Malaysian Red Crescent for its
employees. It also carried out four First
Aider Life Support training sessions for
PLUSRonda employees.
– Occupational Safety and Health
Act and Regulations (OSHA)
1994;
– Factory and Machinery Act (FMA)
1967;
– Environmental Quality Act 1974;
and
– UEM Sunrise’s Environment,
Health & Safety requirements for
contractors.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Builders
• Integrated existing Safety & Health Management Systems
and Environmental Management System into an enhanced
HSE Management System in 2013.
• Published quarterly HSE Bulletin over the past seven years
to share current health and safety related matters, such as
‘Driving Safety’, ‘Head Injury’, ‘Indoor Air Quality’, ‘Dengue
Fever’ and ‘Working at Height’.
• Achieved 1,000,000 man hours without Loss Time Injury
(LTI) during the construction of Sultan Abdul Mu’adzam
Shah Bridge and Women and Children Hospital (WACH)
projects, in 2013 and 2014 respectively.
• Organised annual Knowledge Sharing Programme across
operational sites on the new OSH Regulation (CLASS
Regulation 2013), Fire Prevention at Workplace, Safety
Working Practices for Tunnel Construction, Safety Versus
Productivity, and Safe Mobile Crane Operations.
• Presented a paper on “Inculcating an Effective Health &
Safety Culture within the Organisation and at Project Sites”
at the 1st International HSE Conference 2013 in Brunei.
• Awarded Five-Star rating in 2013 in Safety & Health
Assessment System in Construction (SHASSIC) Assessment
by CIDB for the KVMRT Package V8 Project.
• Promoted HSE awareness in Bengali language on posters,
banners and signs for on-site foreign workers in 2014.
• In 2014, Master Builders Association Malaysia presented
Health & Safety awards to two site personnel.
CIMA
• Obtained OHSAS 18001:2007 certification for manufacturing
facility in Bahau, Negeri Sembilan.
• Introduced Contractor’s Safety Passport and Driver Safety
Passport System, which require all contractors to register
their employees in a Safety Induction Programme with
validity period of two years. The Safety Induction Programme
is designed to communicate and promote CIMA’s Safety &
Health Policy, aspirations as well as expectations in safety
performance and culture.
• Enforced Permit to Work, Job Hazard Analysis (JHA) and
Hazard Identification, Risk Assessment and Risk Control
(HIRARC) on contractors performing high-risk activities.
• Established Standard Operating Procedures governing onsite health and safety practices during different situations,
such as shutdowns (e.g. Shutdown Safety Management),
and emergency situations (e.g. Emergency Preparedness
Plan).
• Organised regular fire drills and emergency evacuation
exercises in accordance with CIMA’s Emergency
Preparedness Plan.
• Incorporated Shutdown Contractor Safety Management
Activities daily mass toolbox briefings, daily contractor
management safety walkabouts and daily safety meetings
to ensure shutdown work during major onsite turnaround
are performed smoothly and safely.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
HEALTH &
SAFETY
UEM Edgenta
ISO 14001:2004 & OHSAS 18001:2007 Certified Facilities
• Kamunting Incineration and Laundry Plant, Perak
• Kuala Ketil Laundry Plant, Kedah
ISO 9001:2008 Certified Facilities
• Kamunting Incineration and Laundry Plant, Perak
• Kuala Ketil Laundry Plant, Kedah
• Kota Kinabalu Incineration Plant, Sabah
MS 1722:2011 Certified Facilities
• Kuala Ketil Laundry Plant, Kedah
Opus
• Obtained ISO 9001:2008, ISO 14001:2004 and OHSAS
18001:2007 certification for Asset Management & Asset
Development projects.
• Established an integrated QHSE Policy in the Quality
Manual and HSE Manual across their operations.
• Communicated on QHSE Policy, Quality Objectives and
HSE Objectives & Targets to all employees via intranet,
induction and awareness briefings.
• Monitored and complied with QHSE requirements through
HSE inspection, periodic internal audits, joint inspections,
contractors’ audits, joint measurement and witness testing.
• Organised Management Review Meetings, HSE Council,
and Project Management Meetings chaired by Opus MD/
COO on QHSE performance for continuous improvements.
• Organised HSE Committee Meetings, project meetings,
and HSE meetings at project sites on QHSE performance
and effectiveness.
Edgenta PROPEL
• Introduced Malaysia’s first Occupational Safety & Health
Passport for highway maintenance, PROPEL Safety Passport
(PSP) through a joint-collaboration between Edgenta
PROPEL and National Institute of Occupational Safety and
Health (NIOSH) of Malaysia. PSP aims to help employees
and contractors meet Safety & Health legislative
requirements, while increase the overall safety and health
competency among employees and contractors.
• Communicated Edgenta PROPEL’s QSHE Policy and
Objectives to all employees via intranet and induction
briefings. Communication was also extended to contractors
through contractor engagement sessions, contract
agreements, contractor induction briefings, notice boards
and periodic toolbox briefings.
• Required all employees and contractors to abide by Edgenta
PROPEL’s QSHE Policy & Procedures which defines processes
and management involving legal compliance, risk
management, incidents, competency and training.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Facts at a Glance
Community contributions in
2013 AND 2014
RM31.86
million
TOTALED
UEM ENGLISH
LITERACY
PROGRAMME
116
TEACHERS
15,000
STUDENTS
benefited
AND
CORPORATE
COMMUNITY
DEVELOPMENT
Y
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
“Community engagements help us to find
better solutions, build trust and is the basis
of operating responsibly”.
COMMUNITY DEVELOPMENT
Aim
Community engagement is fundamental to our approach in
sustainability. It helps us to find better solutions, build trust
and is the basis of operating responsibly. Through community
engagements, we are able to identify and formulate
programmes which benefit communities.
• Be a responsible member of the communities
in which we operate through positive
contributions
We promote the concept of volunteerism in our workforce to
further our social and capability leading efforts. This is
demonstrated through our active involvement in community
outreach initiatives such as disaster relief, donations of medicine
and necessities, gotong-royong and creation of job opportunities.
• Create opportunities for local community
members to improve their skills
COMMUNITY EDUCATION
Community education programmes play a significant role in
our Corporate Responsibility strategy. UEM Group of
Companies contributes through capacity building to enable
rural and urban communities to participate as well as benefit
from the extensive programmes that we organise.
We believe that education is the way forward in developing a
competent and skilled society by making it more accessible to
the communities in which we operate.
We strongly support education sponsorships and capability
development as these are effective enablers for individuals to
leverage on their inherent strengths. In line with this, we have
organised educational programmes such as UEM English
Literacy programme, tuitions and education clinics, motivational
talks, team buildings and extracurricular activities.
Recognising the importance of education, we have reached
out and provided social aid in the form of school supplies to
orphanages and orang asli communities via the Back-to-School
Programme. We are also in partnership with Yayasan AMIR to
support the development and education enhancement of its
two Trust Schools.
• Operate with integrity and transparency, as
well as strengthen ties with local communities
through our business activities
• Increase engagements with our employees,
enhance our reputation and be a socially
responsible business entity
Progress
• Active involvement in community programmes
• Contribute significant resources in communityrelated activities
• Recognition of volunteerism in employees’ KPI
• Focus on education and skill enhancement
programmes to increase social and economic
benefits to communities
Way Forward
• Enhance and extend existing community
programmes to a wider reach
• Increase employee volunteerism and
participation
• Continuous focus on education and skill
enhancement programmes to increase social
and economic benefits to communities
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
COMMUNITY CONTRIBUTIONS
In 2013 and 2014, UEM Group of Companies spent a total of RM19.16 million and
RM12.70 million, respectively on engagements and social contributions in communityrelated activities.
Corporate Community Contribution by UEM Group of Companies
45%
14%
46% 23%
1%
9%
Education
Donation/Sponsorship
(e.g goods or money)
2013 4%
2014
3%
24%
Scholarships (e.g individuals
for further education)
Awareness
Programmes
Outreach/Community
Engagements
(e.g volunteering)
31%
UEM Gaza Relief Fund
UEM Group of Companies collected a total of RM1.286 million for the Gaza
Relief Fund. The funds were channelled to MERCY Malaysia, the Federation of
Islamic Medical Associations (FIMA) and Viva Palestina for the purchase of
medical supplies.
COMMUNITY DEVELOPMENT
INITIATIVES
UEM Group of Companies – UEM
ALERT Volunteer Programme
Established in 2006, UEM ALERT is a
volunteering programme, which serves
as a platform for employees to contribute
their time, skills and efforts back to the
communities. Besides involving in social
and environmental-related activities,
UEM ALERT also provides immediate
post-disaster relief and rehabilitation
assistance across Malaysia.
In 2013, we extended assistance to
flood-affected communities in Johor,
Pahang, Kelantan and Terengganu. The
relief effort involved distribution of
provisions and supplies to 80 affected
families across four villages in Bera,
Pahang namely Kg. Kuala Triang, Kg.
Paya Panjang, Kg. Aur Duri and Kg.
Imam Sulong. Other villages within the
state of Johor, Terengganu and Kelantan
received similar assistance. UEM Group
also undertook recovery and clean-up
efforts at mosques, schools and
community halls at these affected state.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CORPORATE COMMUNITY
DEVELOPMENT
UEM Group – Tabung Zakat
UEM Group’s Tabung Zakat was set up to assist poor and underprivileged
communities. Zakat is a form of obligatory alms giving in which the amount collected
is extended in aid of poor Muslims.
Starting from 2014, we donated financial aid and assistance-in-kind to various Asnaf
such as Fakir, Miskin or Fisabillilah Islamic organisations to help the underprivileged
within the communities that we serve. The amount donated by UEM Group’s Tabung
Zakat in 2013 and 2014 totalled RM1,345,094 and RM929,906, respectively.
The recipients of Tabung Zakat include:
In December 2014, during Malaysia’s
worst floods in decades, our Group-wide
ALERT Volunteers delivered relief
supplies and provisions to over 500
victims at four flood relief centres in
Kelantan. PLUS Helicopter Services,
provided air transportation to inaccessible
areas, as well as transported patients to
hospitals in the state.
The number of UEM ALERT Volunteers
has risen steadily over the years,
increasing from 608 in 2013 to 697 in
2014 compared with 576 in 2012. The
steady rise in employee volunteers is an
encouraging indicator that this Groupwide volunteer programme empowers
our employees and complements their
personal aspirations to contribute to
society.
UEM Group of Companies – Back-toSchool Programme
The Back-to-School Programme, an
annual ‘tradition’ and key initiative of
UEM Group of Companies, aims to
reduce the burden of underprivileged
children by distributing school supplies.
These include stationeries, bags,
songkok, tudung, school uniforms, shoes
and socks. In 2014, the programme
benefited over 10,000 students
nationwide.
• Back-to-School supplies to 100
students from 10 UELP schools in
Klang Valley with breakfast and lunch
provided for the whole year.
• W e l f a r e c a r e a m o u n t i n g t o
RM100,000 was extended to Yayasan
Orang Kurang Upaya Kelantan
(YOKUK), which provides rehabilitation
services for the underprivileged
community in Kelantan.
• UEM Group provided RM700,000 to
UKM Medical Centre and UM
Medical Centre, allowing 46 patients
to receive medical assistance.
• Provided funds to Akademi Tahfiz
Ihya’ul Quran, Kg. Bukit Lanchong,
Shah Alam for daily necessities, utility
bills and various educational materials.
• A total sum of RM70,000 was
extended to Pusat Jagaan Al-Fikrah
Malaysia for repairs and replacement
works at the welfare home for old
folks and patients who formerly
sought medical treatment at
Government hospitals.
• A total of RM50,000 was donated to
numerous mosques and surau near
our operating offices in the country.
• RM3,000 was donated to Pusat
Harian Kanak-kanak Spastik Ipoh, a
non-profit centre which provides
rehabilitation to underprivileged
children with Down Syndrome, slow
learners and other disabilities.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
PLUS – Contribution to Local SocioEconomic Development
PLUS – Malaysians Unite For Road
Safety (MUFORS) Programme
To promote local economic development,
PLUS supports small and medium sized
entrepreneurs at its Rest and Service
Areas (RSAs), specifically those residing
within a 20km radius. RSA vendors also
receive assistance through training and
guidance in customer service, food
hygiene and marketing strategies. To
ensure that stop-over motorists enjoy
the best value for products and services,
PLUS regulates the prices of goods at
these RSAs and laybys.
MUFORS is a community project
established by PLUS in 2009 to educate,
advocate and empower Malaysian road
users on road safety. MUFORS engages
existing and future road users through
several platforms, especially social media.
Every year, road safety awareness
initiatives such as Gempak MUFORS,
and MUFORS Respect Your Limits
Seminars are held for target groups such
as university students, heavy vehicle
drivers, owners and fleet operators.
PLUS also supports the local orang asli
community by allocating stalls at RSAs
where they can sell forest produce,
herbs and traditional medicine, such as
wild honey and medicinal roots.
Visit MUFORS’ Facebook page – www.
facebook.com/SaferRoads.Mufors, for
more information on road safety
measures, news and tips.
UEM Sunrise
UEM Sunrise’s approach to CSR is two
pronged, i.e. through Education
Enhancement and Community Building
within the communities where the
Company operates and has a presence
in, with the aim of enriching people’s
lives through impactful programmes.
UEM Sunrise reaches out by offering a
helping hand to communities through
education-related activities and various
forms of social assistance, from which it
hopes to build closer relationships with
stakeholders and bridge the gap with
the underprivileged group.
Throughout 2013 and 2014, UEM Sunrise
carried out various initiatives such as:
PLUS RSAS AND LAYBYS
provide over
5,500
employment
opportunities
in the surrounding
communities across
Malaysia
• Distributed school supplies under the
Back–to-School programme to about
186 orang asli school-going children
from Kg. Sg. Geroyang and Kg. Sg.
Merbau in Tapah, Perak, as well as
Kg. Simpang Arang in Gelang Patah,
Johor.
• Hosted a celebration for 131 preschoolers under the Pintar Al-Quran
Programme at its sixth Khatam AlQuran ceremony in Kota Iskandar,
Nusajaya.
• Sponsored a 14-seater hearse to
Kg. Pok’s Muslim community in
Gelang Patah, Johor as part of UEM
Sunrise’s efforts to strengthen
community relations.
• Collaborated with Sekolah Kebangsaan
Bangi, Selangor in a UPSR Excellence
Camp to boost the morale of 142
UPSR examination candidates.
• Provided education aid comprising
five desktop sets and monetary
donations to the children of Agathians
Shelter and Shelter Home for Children
respectively in Petaling Jaya, Selangor.
• Hosted a gotong-royong programme
in collaboration with Edgenta PROPEL
(formerly known as PROPEL) for an
orphanage in Darul Aitam, Tapah,
Perak and upgraded its shower area
into a 9-door bathroom for the
home’s children in collaboration with
the Faculty of Architecture Planning
and Surveying, Universiti Teknologi
MARA (UiTM), Perak.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CORPORATE COMMUNITY
DEVELOPMENT
Opus – Lending a Helping Hand in
Time of Need
UEM Builders
Over the years, UEM Builders’
contribution in community initiatives and
awareness programmes have not only
helped the surrounding communities,
but also encouraged volunteerism
among its employees.
Among the community programmes
initiated in 2013 and 2014 were:
• Volunteered and provided provision
of daily necessities to Pusat Jagaan
& Rawatan Orang Tua Al-Ikhlas old
folks’ home in Puchong and Pusat
Jagaan Nur Hasanah in Selangor.
• Volunteered at various orphanages
and providing school provisions to
more than 300 school-going orphans
under the Back-to-School Programme.
• Hosted an anti-corruption awareness
talk themed, “Act Against Corruption”
with the Malaysian Anti-Corruption
Commission (MACC) at ULC. The
talk, attended by over 70 employees,
gave insights into the importance
of corporate governance and
accountability, as well as emphasised
corruption as a major obstacle to the
Company’s stability, growth and
competitiveness.
• 40 volunteers packed and distributed
food to over 300 orphans at four
orphanages in Kuala Lumpur and
Selangor.
• Organised a Blood Donation Drive at
UEM Builders’ Corporate Office in
Petaling Jaya.
UEM Edgenta, Opus & Edgenta
PROPEL – Do-it-Your Way Campaign
Annually, the Do-it-Your Way Campaign
aims at supporting and helping
orphanages prepare for Aidilfitri
Celebration. In July 2014, the AFM
Group of Companies organised a visit to
Pertubuhan Kebajikan Anak-Anak Yatim
dan Miskin Sabak Bernam (PAYSA) in
Sabak Bernam, Selangor, which houses
75 orphans.
Donations of cash and benefits-in-kind
such as food items and hampers from
Senior Management and employees
were handed over to PAYSA. All the
orphans received small tokens and duit
raya, which amounted to RM5,000
overall. During the visit, the volunteers
also organised iftar by preparing and
cooking the dishes for the children as
well as villagers surrounding the
orphanage for a berbuka puasa session.
In 2014, Opus organised a hospital visit
to the University Malaya Medical Centre
(UMMC) Paediatric Oncology Ward.
During the visit, employees engaged the
young patients with fun activities
including a clown performance. Treats
and duit raya were distributed and
donations were made to the ward to
purchase antinausea medicine.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
COMMUNITY EDUCATION
INITIATIVES
UEM Group of Companies – Collaboration
through PINTAR Foundation
Since its inception in 2008, PINTAR
Foundation strives to motivate students
in under-served communities to succeed
in their academic and non-academic
performance through social responsibility
collaborations with GLCs, private
corporations, partner NGOs and the
Government.
Through the PINTAR School Adoption
Programme, UEM Group of Companies
funded the English Literacy Programme
at 50 schools, while UEM Sunrise
expanded its outreach in 2014 by
adopting four more schools in Central
and Southern regions.
Currently, on its own, UEM Sunrise has
adopted a total of 21 PINTAR Schools
under the PINTAR School Adoption
Programme, and has taken various
initiatives guided by four PINTAR Core
Modules, namely Team Building,
Educational Support, Capability &
Capacity Building and Reducing
Vulnerabilities & Social Issues. As these
modules are structured, educational and
stimulating, they serve to inspire students
to reach new heights in education
excellence and social skills.
UEM Group of Companies – English
Literacy Programme Sponsored by
UEM Group Berhad (UELP)
UELP is a programme that aims to
provide sustainable development and
support system. It was designed to
improve teachers’ ability to teach English
Language in a manner that enhances
the way students learn and ultimately
speak and write better in the language.
50 underperforming schools within
Peninsular Malaysia were selected to
participate in this three-year programme,
which started in April 2012. The
programme was organised, coordinated,
and monitored by PINTAR Foundation,
with British Council as the appointed
Programme Partner, in charge of the
design and delivery of UELP.
UELP focuses on strengthening English
teaching and learning process through
capacity building, using a variety of
methods such as quality delivery
structures, supportive intervention,
student activities and community
involvement. This help enhance and
develop students’ English reading, writing,
understanding, and communication skills.
The programme has contributed to the
development of 116 teachers and
benefited around 15,000 students.
UELP’s KPIs take into consideration:
• Project Management
Ensure all activities planned
are successfully implemented,
delivered and meet KPIs, and
are within the stipulated
budget and agreed timeline.
• Teachers’ Development &
Improvement
Ensure the monitoring and
evaluation of teachers’
development progress based
on British Council’s MSC
Reports and the Teachers’
Development Index (TDI).
• Students’ Learning
Engagements
Ensure that UELP students
are able to improve their
proficiency and fluency in the
English language through
observation by teachers and
British Council mentors in
classroom interactions and
survey feedback, as well as
academic performance in the
English subject.
• UEM Group Employees
Involvement in the
Volunteer Programme
Ensure the group is actively
involved and participate in
the LEF sessions.
• Parents’ Involvement in LEF
Programme
Ensure that parents are
involved in the LEF sessions
and execute the RC sessions
in schools.
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CORPORATE COMMUNITY
DEVELOPMENT
In addition to financial contributions to PINTAR, UEM Group also encourages its
employees and those from the UEM Group of Companies to be involved in the
Learn English Family (LEF) and Reading Circle (RC) sessions under UELP. LEF, one of
the initiatives under UELP, develops early English literacy among children by
encouraging active involvement of their parents. The programme seeks to develop
the delicate relationship between the children, their parents, and the school. It also
encourages active participation from UEM Group’s employees as LEF volunteers.
In 2014, UEM Group conducted a Social Return on Investment (SROI) study to
analyse, measure and quantify the impact of UELP. SROI is a cost-benefit analysis
that examines the social, economic and environmental outcomes in comparison to
the associated costs of implementation. The study made assumptions based on the
programme’s social, environmental and economic costs and benefits, as well as
considered the financial proxies of each investment. One assumption is that students
are more employable when their command of English improves and will secure
employment with a minimum wage of RM1,500 upon graduation.
The SROI found that UEM Group’s RM3 million investment in UELP created an
estimated RM54 million in social value. This is equivalent to RM18.05 created for
every RM1.00 invested in the programme. The findings reaffirm that our strategy in
developing communities through education is indeed material and impactful over the
long run.
UELP’S SOCIAL RETURN ON
INVESTMENT
An equivalent of
RM18.05
created
for every
RM1.00 invested
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Group – High-End Industry
Graduate Internship Programme (HEIGIP)
In partnership with Universiti Teknologi
MARA (UiTM), UEM Group provides
20 UiTM students on-the job training
at various UEM Group Operating
Companies on an annual basis.
The programme gives students an
opportunity to gain valuable working
experience and knowledge to support
their future career growth. Participants
gain practical work experience related to
their field of studies and at the same time
are provided with soft skills training such
as planning and execution, communication,
professionalism, organisation adaptability
and work-relevant skills.
UEM Group – Yayasan UEM
Since the establishment of Yayasan UEM
in 2000, the foundation and non-profit
organisation of UEM Group has been
providing scholarship assistance to
Malaysian scholars of calibre. Yayasan
UEM is our Human Capital Development
arm with a strong emphasis in supporting
and nurturing deserving high achievers.
In 2013, 56% of students who received
scholarships pursued their studies locally,
while in 2014, this increased to 64%.
These comprise 10% and 15% of
the overall scholarship value for each
respective years.
Other than financial grants, Yayasan
UEM also organises the Scholarship
Development Programme that covers
topics such as self-awareness, academic
enhancement, interpersonal growth and
management, leadership and team
building and organisational training.
In 2013 and 2014, UEM Group in
collaboration with Yayasan UEM launched
the UEM Medal Awards in recognition of
outstanding Engineering graduates at
five local research universities and a local
Private Higher Educational Institutions
(IPTA). The local research universities are
Universiti Sains Malaysia (USM), Universiti
Teknologi Malaysia (UTM), Universiti
Putra Malaysia (UPM), Universiti
Kebangsaan Malaysia (UKM), and
Universiti Malaya (UM), while the IPTA is
Universiti Teknologi MARA (UiTM).
A total of four and six recipients were
awarded the UEM Medal Award in 2013
and 2014, respectively. Besides a
certificate of recognition, the recipients
also received cash rewards and
attachment opportunities with the UEM
Group of Companies.
In 2013
RM5.2
million
in scholarships disbursed
to 89 students
In 2014
RM5.5
million
in scholarships disbursed
to 106 students
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UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CORPORATE COMMUNITY
DEVELOPMENT
UEM Group – Kolej Yayasan UEM
(KYUEM)
Established in 1998 under Yayasan UEM,
KYUEM is a premier residential college
specialising in pre-university education.
KYUEM is among the few selected
colleges in Malaysia to be granted
Cambridge International Fellowship
status, which gives preferential access to
the latter’s rich educational support
systems.
Since its first graduating batch in 2000,
KYUEM students have consistently won
awards for excellence in the A-level
examination, including Cambridge
International Examinations Brilliance
Awards and ‘Top in the World’ awards in
Mathematics, Further Mathematics,
Biology, Chemistry, Physics, Computing,
Accounting, Economics, Literature in
English, History, and Critical Thinking.
538
IN 2013 AND 2014
STUDENTS
264
FROM 2002 – 2014
KYUEM has an excellent track record in
student admission into Oxford,
Cambridge, Imperial College, London
School of Economics and University
College London. There are, however, a
significant number of students who have
also been admitted to other world-class
universities in the United States and
Australia.
In 2013, 242 students graduated, of
whom 97% received conditional offers
from universities in the United Kingdom,
Ireland, Australia, United States and
Canada. In 2014, 216 KYUEM graduates
received conditional offers from
universities in the United Kingdom,
Ireland, Australia, United State and
Hong Kong.
49% 51%
274
UK UNIVERSITY ENTRANTS
OXBRIDGE 79
IMPERIAL 173
LSE 153
UCL 118
IN 2014
TEACHING
S T A F F
EXPATRIATES 40% LOCALS 60%
88%
OUTSTANDING
A-LEVEL RESULTS
OF GRADES GAINED WERE
BETWEEN A* AND B
70
%
IN 2014
SPONSORED
IN 2014
70%
OF GRADES GAINED
WERE AT A*OR A
PRIVATELY
FUNDED
30%
88
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Group – Yayasan AMIR
The Yayasan AMIR Trust Schools
Programme is positioned to be a leading
network of Trust Schools in Malaysia.
Yayasan AMIR Trust Schools are holistic
in nature and act as an educational
leadership development platform for
bright Malaysian children from diverse
ethnic backgrounds. Yayasan AMIR aims
to drive the transformation of students’
performance in public schools through a
public-private partnership involving the
Ministry of Education and the country’s
private institutions and corporations.
On 30 October 2013, UEM Group
signed an agreement with Yayasan AMIR
to sponsor the development and further
enhancement of education delivery to
two Trust Schools. UEM Group adopted
two Trust Schools in Nusajaya, Johor –
Sekolah Kebangsaan Medini and Sekolah
Menengah Medini, in Educity. The
schools opened for primary and
secondary students in 2014 with an
estimated 319 students having benefitted
from this initiative.
To date, the children of 25 employees
of UEM Group of Companies have
benefited from this venture with eight
primary students (Standard 1, 2 and 3),
and 17 secondary students (Form 1 and
2), joining as the first group of students
at both schools.
89
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CORPORATE COMMUNITY
DEVELOPMENT
2013
2014
• 294 EXECUTIVES
SELECTED FOR
SL1M-YES
• 200 EXECUTIVES,
126 FRESH
GRADUATES AND
114 TRAINEES WERE
TRAINED
• 50% PARTICIPANTS
WERE SUCCESSFULLY
HIRED AS
PERMANENT
EMPLOYEES BY
UEM GROUP
UEM Group – SL1M-YES
As a nation builder, we are committed towards fulfilling the development plans
outlined under the Ninth Malaysia Plan. On 12 September 2006, UEM Group YES
was launched. Today, it is known as Skim Latihan 1Malaysia – Young Executive
Scheme or SL1M-YES.
Since 2006,
approximately
SL1M-YES programme aims at equipping fresh graduates with the skills and
experience to enhance their employment opportunities in the future. Under this
programme, successful candidates are offered training contracts inclusive of allowances
and benefits, as well as the opportunity to be involved in various projects undertaken
by UEM Group of Companies.
million
UEM Group – IKBN-UEM Manpower Distribution Programme
In December 2014, UEM Group signed an MoU with the Ministry of Youth and
Sports to provide National Youth Skills Institute (IKBN) trainees with on-the-job
training and potential employment opportunities. The training focuses on areas such
as facilities maintenance, electrical and mechanical, building and construction
technology.
RM30
have been invested
in various skills and
nation-building training
programmes for
Executives, fresh
graduates and trainees
90
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CIMA – Tuition and Internship Programmes
In support of the Government’s National Human Capital Development transformation
initiative, CIMA designed its education and community programmes to include tuition
classes, academic collaborations with universities and internships, while also offering
its facilities for community educational activities.
Tuition Programme
Both CIMA facilities
invested a total of
RM73,747 and
RM102,664 in the
programme in 2013 and
2014, benefitting 330 and
433 students respectively
The teachers recruited in this programme were nominated based on
recommendations by participating schools in Perlis and the Department of
Education in Jempol/Jelebu and Kuala Pilah districts.
The selection of schools is based on a set of criteria that includes schools with
children from low to middle income families, children residing near CIMA’s plant and
children of CIMA’s employees. CIMA’s decision to continue the tuition programme
at the same schools has proven positive results in their UPSR exams. The programme
covers English, Science and Mathematics.
Moving forward, CIMA plans to integrate unconventional learning approaches
such as motivational talks, introduction of Buddy System and assessment-based
evaluation of students.
Internship Programme
CIMA offers a six month internship programme to third and final year students
of any discipline, albeit with priority given to students with engineering, finance,
social sciences, sales and marketing backgrounds from local or overseas higher
learning institutions. Selected students will undergo mandatory industrial training
as part of their course requirements.
The internship programme has a flexible structure that allows assigned supervisors
to personalise on-the-job training based on each intern’s discipline of study,
which offers experiential learning. This approach provides interns the opportunity
to integrate applicable practical experiences with theoretical classroom knowledge
to ensure that they are equipped with relevant competencies, industry knowledge
and professional networks. In 2013 and 2014, a total of 52 and 71 interns joined
CIMA’s internship programme respectively.
Percentage of Students
Scoring 4As and Above:
2013
35.2%
2014
32.3%
21
Interns Joined CIMA as
Permanent Employees
in 2013 and 2014
91
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CORPORATE COMMUNITY
DEVELOPMENT
UEM Edgenta – Work-Based Learning (WBL) Programme
UEM Edgenta acknowledges that the
inadequate supply of specialised skilled
workforce may pose a challenge to its
business, particularly as the demand for
Biomedical Engineering Maintenance
Services and Facility Management
Services increases. Its initiatives in the
WBL programmes reflect UEM Edgenta’s
commitment towards producing industryrelevant and industry-ready graduates.
WBL is a form of pedagogy that blends
classroom learning with structured reallife working experience to arm students
with a competitive edge in today’s
workplace. Started in 2007, it is an ongoing collaboration with the Ministry of
Higher Education (MoHE) to transfer
knowledge, expertise and experience in
the AFM sector. The two on-going WBL
programmes with Politeknik Sultan
Salahuddin Abdul Aziz Shah (PSA) in
Shah Alam are Advanced Diploma
in Electronics Engineering (Medical)
and Advanced Diploma in Facility
Management.
PSA Student intake
Year
Advanced Diploma in
Electronics Engineering
(Medical)
Advanced Diploma in Facility
Management
2013
21
32
2014
19
23
Under the UEM Edgenta’s WBL programme, students with Advanced Diploma in
Electronics Engineering (Medical) are attached to hospitals in Kedah, Perlis, Penang,
Perak and Sarawak, while those with Advanced Diploma in Facility Management are
placed at several business locations in Kedah, Penang and Perak.
92
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Facts at a Glance
OFFICE ELECTRICITY
CONSUMPTION
reduce by
36%
2014
in
RECOVERED
63,744kg
OF SCRAP METAL WORTH
RM101,991
2013 2014
in
and
GREEN
ENVIRONMENT
T
93
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
“Our focus is on
managing and
reducing the
impacts arising
from operational
activities over
which we have
direct control such
as energy and
water consumption,
greenhouse gas
emissions and
waste generation.”
As a sustainable corporate organisation, we
strive to manage and mitigate our
environmental risks and impacts across UEM
Group of Companies. Our focus is on
managing and reducing the impacts arising
from operational activities over which we
have direct control such as energy and water
consumption, greenhouse gas emissions and
waste generation.
To promote on-going efforts in improving
environmental performance, we encourage
change from within. We continue to raise
environmental awareness through annual
campaigns such as “Changing Habits”,
which promotes energy saving, water
conservation and waste management.
We also explore greener alternatives in our
day-to-day operations at the respective
Operating Companies. These initiatives
range from introduction of alternative fuel
combustion systems, green buildings and
the replacement of generators for more
efficient power consumption.
Aim
• To be a responsible business by managing the environmental
impacts of our operations
• Manage and mitigate our impacts by focusing on energy,
materials and emissions
• Continually educate and increase awareness among employees,
customers, suppliers and local communities
• Collaborate with preferred suppliers with good environmental
policies and sustainable practices
Progress
• Monitor savings from environmentally-friendly initiatives
• Reduce carbon footprint across our operations
• Raise awareness among our employees and suppliers to promote
environmental practices
Way Forward
• Establish a Group-wide system for environmental performance
monitoring
• Encourage continuous improvements in environmental action plans
94
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Environmental
Management System
PLUS’ Environmental Guidelines
are developed in accordance with
ISO 14001:2004
Environmental Management
System (EMS) Standard, while
there is an EMS Committee
comprising Senior Management.
PLUS Malaysia Berhad
Certified
ISO 14001:2004
EMS Standard.
Certified
ISO 14001:2004
EMS Standard.
The Company’s cement facilities in
Bahau, Negeri Sembilan and Bukit
Ketri, Perlis adopted and complied with
ISO 14001:2004
EMS Standard.
The Kamunting Incineration and
Laundry Plants, and Kuala Ketil
Laundry Plant are
ISO 14001:2004
The Company attained
EMS certified.
ISO14001:2004
EMS certification, as well as
established a Legal & Other
Requirements for compliance checks.
Opus also performs Environmental
Risk Assessment that consists of
aspects and impact identification, risk
assessment and controls identification
Certified
ISO 14001:2004
EMS Standard.
Edgenta PROPEL
95
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GREEN
ENVIRONMENT
ENVIRONMENTAL PERFORMANCE
Materials Used
As a corporate entity with business endeavours spanning from expressway management, engineering, construction, property
development to asset and facility management services, UEM Group of Companies consumes raw materials such as limestone,
sand, coal, cement, asphalt and fertiliser.
Presently, we do not monitor our consumption in relation to material usage across our supply chain. However, we are currently
exploring options to streamline data on material consumption Group-wide for potential cost savings opportunities. We hope to
report a more comprehensive summary of materials usage in the next reporting cycle.
Direct Energy & Fuel Consumption
Across UEM Group of Companies, we utilise electricity and direct fuels at our offices, plants and facilities. In 2013 and 2014,
Group-wide’s electricity consumption stood at 458,070 MWh and 537,711 MWh, respectively while the overall office consumption
reduced by 36% in 2014 compared to the previous year.
In 2014, UEM Edgenta, Opus and Edgenta PROPEL relocated to Menara UEM, located in Bangsar South City, Kuala Lumpur.
Energy efficient fixtures at the new office building has attribute to the significant reduction in electricity consumption.
Electricity consumption at CIMA’s plants and UEM Edgenta’s facilities increased by 21% in 2014 from 2013. The increase is
attributed to CIMA’s Bahau Second Production Line, which enabled CIMA to increase its annual cement production by 35% since
operations began in September 2013.
Electricity Consumption at Offices and Plants in 2013 and 2014
429,179
312,000
104,000
18,570
208,000
519,142
416,000
28,891
Electricity consumption (MWh)
520,000
0
Offices
2013
2014
Plants
(CIMA & UEM Edgenta)
n at
ta)
96
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Greenhouse Gas (GHG) Emissions
The recent severe floods and prolonged droughts in Malaysia are signs that climate change is a real challenge faced by
businesses. As a conglomerate with worldwide operations, we attempt to address the issue by reducing GHG emissions from our
activities that are potentially carbon intensive.
In 2014, the total GHG emissions Group-wide stood at 1,548,779 MT CO2e reflecting an increased of 36% from the previous
year. The rise is reflected in the increase in energy (37%) and electricity (21%) consumption in 2014, which corresponds to the
increase in CIMA’s production by approximately 35%.
GHG Emission Breakdown (MT CO2e) in 2013
GHG Emission Breakdown (MT CO2e) in 2014
Scope 2, 0.03%
Scope 2, 0.03%
Scope 3, 0.66%
Scope 1, 98.30%
Scope 1, 1.02%
Scope 3, 0.60%
Scope 3, 0.66%
Scope 2, 0.02%
Scope 2, 0.00%
Scope 3, 0.60%
Scope 3, 0.44%
Scope 3, 0.49%
Scope 1, 98.30%
Scope 1, 98.66%
Scope 1, 1.02%
Scope 1, 0.82%
Scope 3, 0.06%
Scope 3, 0.06%
Scope 3, 0.05%
Scope 1: Fuel Consumed
by 3: FuelScope
2: Electricity
Scope
Consumed
by
Scope 2: Electricity
Scope 1: Fuel Consumed by
Company
Consumption
Scope 3: Fuel Consumed
by
Scope 2: Electricity
Employee Personal
Vehicles– Plants
Consumption
– Offices Owned Vehicles
Company-Owned Vehicles
Employee Personal Vehicles
Consumption Scope
– Offices
Scope 1: Energy Consumption
1: Energy Consumption at
Scope 2: Electricity
Scope 3: Air Scope
Travel 3: Fuel Consumed by
Offices & Plants)
Employee Owned Vehicles
Scope 2: Electricity
3: Air Travel Consumption(Both
Plants (CIMA and UEMScope
Edgenta)
– Plants
Consumption – Plants
Scope 2: Electricity
Scope 3: Air Travel
Consumption – Offices
GHG Emissions Sources & Emissions Factor References
Scope
Boundary/Carbon Source
Emission Factor
Scope 1
• Vehicles owned and maintained by the Company
• Direct fuel utilisation and energy consumption
• Defra/DECC’s GHG Conversion Factors
Scope 2
• Purchased electricity for consumption
• Malaysian Green Technology Corporation
(MGTC) for the Peninsular Malaysia Grid
Scope 3
• Employee business travel using personal vehicles
• Commercial air travel for business purposes
• Defra/DECC’s GHG Conversion Factors
(2) The carbon footprint is the sum of GHG emissions produced by UEM Group of Company’s operations at main offices and plants. This is measured in terms of
metric tonnes of carbon dioxide equivalent or MT CO2e.
(3) In this Report, we have quantified GHG emissions from main offices and plants of the Operating Companies based on The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (Revised Edition) classification of Direct (Scope 1), Indirect (Scope 2) and other Indirect (Scope 2) and Other Indirect
(Scope 3) sources of emissions.
(4) The 2012 Guidelines to Department for Environment, Food and Rural Affairs (Defra)/Department of Energy and Climate Change (DECC) GHG Conversion Factors
for Company Reporting was referred for the GHG conversion factors.
(5) Scope 1 emissions from direct fuel utilisation and energy consumption are quantified based on CIMA’s plants and UEM Edgenta’s facilities.
97
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GREEN
ENVIRONMENT
Scope 1 GHG Emissions: Energy Consumption
12,748 MT CO2e
1,528,068 MT CO2e
11,593 MT CO2e
1,122,517 MT CO2e
2014
Energy Consumption at Plants
(CIMA & UEM Edgenta)
2013
Group-wide Fuel Consumption
(Company-Owned Vehicles)
0%
20%
40%
60%
80%
100%
Scope 2 GHG Emissions: Electricity Consumption
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
318 MT
CO2e
21MT CO2e
2013
385 MT
CO2e
Plant (CIMA & UEM Edgenta)
14 MT CO2e
Office
2014
Scope 3 GHG Emissions: Business Travel
723 MT CO2e
6,841 MT CO2e
682 MT CO2e
6,821 MT CO2e
2014
Air Travel
2013
0%
(6)
(7)
Employee Personal Vehicles
20%
40%
Scope 1 emission breakdown of energy consumption at plants
2013: 99.3% (CIMA) and 0.7% (UEM Edgenta)
2014: 99.6% (CIMA) and 0.4% (UEM Edgenta)
Plant electricity consumption breakdown
2013: 98.8% (CIMA) and 1.2% (UEM Edgenta)
2014: 99.2% (CIMA) and 0.8% (UEM Edgenta)
60%
80%
100%
98
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Water Consumption
Waste
CIMA’s and UEM Edgenta’s plants and facilities utilise enormous
amounts of water in their operations, especially in cement
production and laundry cleaning services for Healthcare sector.
Monitoring and reporting water consumption by source will
help us understand the scale of associated potential impacts
and risks.
UEM Group of Companies generates both non-hazardous and
hazardous wastes, particularly from our construction,
manufacturing, asset facility management and highway
maintenance operations. We ensure that our operations comply
with the relevant laws and regulations via environmental audits,
especially on storage, handling and disposal of scheduled
wastes.
The water consumption recorded and reported at our offices
and facilities is supplied by the Municipal Councils in the
respective states. We aim to streamline and standardise the
monitoring of our Group-wide consumption of water to achieve
efficiency going forward.
Water Consumption Breakdown
451,011 m3
1,402,284 m3
345,042 m3
1,380,111 m3
2014
2013
0%
20%
40%
60%
80%
100%
Office (UEM Group, PLUS, UEM Sunrise, UEM Builders,
CIMA, UEM Edgenta, Opus & Edgenta PROPEL)
Plants (CIMA & UEM Edgenta)
(8) Plant water consumption breakdown
2013: 58% (CIMA) and 42% (UEM Edgenta)
2014: 69% (CIMA) and 31% (UEM Edgenta)
At the time of reporting, we have yet to establish a Groupwide waste management framework across UEM Group of
Companies. Waste management initiatives are independently
implemented by the Operating Companies, where the
segregation of non-hazardous waste for recycling are commonly
practised at the respective offices.
99
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Sunrise – Green Development
UEM Sunrise was awarded the BCA
Green Mark or Green Building Index
(GBI) certification for incorporating green
elements into its building designs.
GREEN INITIATIVES
UEM Group – UEM Green Squad
In January 2014, UEM Green Squad was
formed to instil and foster environmentallyfriendly culture among employees of
UEM Group at Mercu UEM through
various events and fun interactions such
as organised games and competitions.
In the same year, we introduced the
Evergreen Cup, a recycling competition,
to our employees. Winners were selected
based on the most points accumulated
through a series of mini competitions
such as “Recycle Mania”, “Switch Off/Be
Switched Off”, “Bring Your Own Food
Container”, “Bring A Plant To Work
Day” and “We Care We Share”. Of all
these competitions, “The Recycle Mania”
was the most noteworthy as it attracted
the highest number of participants,
around 60 employees per session, from
all department.
The points accumulated will determine
the employees’ overall score when the
volume of recyclable materials are tallied
and weighed. A total of 6,961.90 kg of
recyclable items were collected, including
various types of electrical wastes. UEM
Group collected RM3,315.10 from the
sale of recyclable items.
The money collected was handed over
to Group Human Capital which was
channelled to a special fund for the
rehabilitation of Shamsul Kamal, a UEM
Group employee, who was involved in a
serious road accident in 2013.
The “green” certified developments are
11 Mont’Kiara, 28 Mont’Kiara, Arcoris
Mont’Kiara, Verdi eco-dominiums, Radia
Bukit Jelutong, Residensi22 Mont’Kiara
and Residensi Sefina Mont’Kiara. The
elements incorporated include natural
ventilation and lighting, energy efficiency,
water efficiency, waste management,
building orientation and shading for
internal climate control.
UEM Sunrise also minimises its impact
on the environment from the planning
stage up to the handing over phase to
tenants. Other measures undertaken
were providing tenants with energy
efficient equipment and appliances,
bicycle bays, shuttle services and
environmental awareness campaigns.
UEM Sunrise – Commitment to
Nusajaya Environment Master Plan
UEM Sunrise is committed in managing
its environmental footprint through the
strategic management of water, waste,
energy and environment conservation as
outlined in the Nusajaya Environment
Master Plan launched in December 2009
that is now known as the Nusajaya
Green Plan. The Nusajaya Green Plan
outlines the strategies, approaches and
implementation plan for responsible and
sustainable development in Nusajaya.
As buildings normally consume vast
amounts of resources such as raw
materials, energy and water, it is critical
that these developments are planned,
designed, developed and managed in
the most sustainable manner.
GREEN
ENVIRONMENT
100
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
UEM Builders – Industrialised Building
System (IBS)
UEM Builders has implemented the
Industrialised Building System (IBS) at all
its construction sites. IBS is a construction
process that utilises techniques, products,
components and building systems
involving pre-fabricated components and
on-site installation. The benefits arising
from adopting IBS are reduction in the
use of unskilled workers, wastage and
volume of building materials, while at
the same time promoting cleanliness
and quality control at these sites. This in
turn resulting in safer, better-organised
construction sites while reducing
construction time.
UEM Builders – Environmental
Awareness Initiatives
Over the last two years, UEM Builders has
carried out several initiatives to promote
green practices. These efforts include
raising environmental awareness among
employees through a campaign known as
“Environmental Ideas in Action”.
In 2013, the Company initiated other
environment-related programmes such
as E-Waste Awareness, World
Environment Day 2013, Indoor Air
Quality Survey, “Save Energy”, “Bring
Your Own Bottle” and “Reduce, Reuse,
Recycle” campaigns.
In 2014, the Company continued its
green initiatives by organising the Earth
Hour 2014 Pledge, World Environment
Day with “No Polystyrene Day”
Campaign, Dengue Awareness
Campaign, as well as the UEM Builders
Food Fest Day 2014. The year’s efforts
ended with the Housekeeping Campaign
at the Klang Valley Mass Rapid Transit
Package V8 (KVMRT V8).
101
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
CIMA – Alternative Fuel and Raw
Material Use
CIMA is the first company in Malaysia to
install an integrated alternative fuel
combustion system that utilises tyres and
biomass waste. In March 2014, an
alternative fuel combustion system from
Japan’s Taiheiyo Engineering Corporation
(TEC) was installed at NSCI Baharu Plant.
This system uses tyres and biomass
waste such as palm kernel shell and
empty fruit bunches as alternative fuel
sources for the clinker production.
The installation of this system was the
result of Government-to-Government
cooperation between Japan and
Malaysia. In 2012, New Energy and
Industrial Technology Development
Organisation (NEDO), Malaysian Palm
Oil Board (MPOB) and Malaysian Rubber
Board (MRB) signed an MoU that paved
the way for successful implementation
by CIMA.
CIMA also invested in new technologies
in cement production that led to the use
of raw materials such as Fluoride Sludge,
Fluid Cracking Catalyst (FCC) and Fly
Ash. Fluoride Sludge, classified as
scheduled waste under EQA 1974
(coded as SW207), is a by-product from
wastewater treatment plants.
Opus – “Plant a Tree 2014”
Opus collaborated with the ParentTeachers Association of Sekolah
Kebangsaan Taman PRIMA in organising
an environmental awareness campaign for
students. The “Opus Plant a Tree 2014”
event saw 298 trees being planted within
the school premises to encourage
environment stewardship among student.
A representative from the Forest Research
Institute Malaysia (FRIM) presented on the
importance of environment preservation.
Edgenta PROPEL & PLUS Collaboration
– Scrap Metal Recycling
In 2012, Edgenta PROPEL and PLUS
collaborated in an initiative to recover
and recycle damaged guardrails at all of
its 15 Section Offices nationwide.
Damaged guardrails as a results of road
accidents are collected and sold to IZ
Pakatjaya Restu Sdn Bhd and N.s.
Recycling Industries Sdn Bhd for scrap
metal recycling. The total value recovered
from the recycling initiative in 2013 and
2014 stood at RM101,991.
GREEN
ENVIRONMENT
102
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GLOSSARY
AFM
BEA
BEF
CDC
Asset & Facility Management
Bumiputera Empowerment Agenda
Business Excellence Framework
MoU
MT
MUFORS
Memorandum of Understanding
Metric Tonnes
Malaysians Unite For Road Safety
NIOSH
National Institute of Occupational Safety
and Health
Continuing Education Programme
OHSAS
CIDB
Construction Industry Development Board
Malaysia
Occupational Health & Safety Advisory
Services
Opus
Opus Group Berhad
CIMA
Cement Industries of Malaysia Berhad
CEO
CEP
COO
DECC
Defra
EBITDA
Edgenta
PROPEL
ELP
EMS
Faber
GHG
GLCs
GMD
GRI
GST
HC
HR
HSE
HSS
HSSE
IEM
IFM
ISO
JKR
KPI
KYUEM
LeAP
LEF
LLS
MD
MITI
MLAA
Child Development Centre
Chief Executive Officer
Chief Operating Officer
OSH
P-Card
Department of Energy & Climate Change
PLUS
Department for Environment, Food & Rural
Affairs
PMS
PMP
Earnings Before Interest, Taxes,
Depreciation, and Amortisation
PROPEL
Edgenta PROPEL Berhad (formerly known as
Projek Penyelenggaraan Lebuhraya Berhad)
QSHE
Emerging Leadership Programme
RSAs
Environmental Management System
Faber Group Berhad
Greenhouse Gas
Government-Linked Companies
Group Managing Director
Global Reporting Initiative
Goods and Services Tax
Human Capital
Human Resource
Health, Safety & Environment
Hospital Support Services
Health, Safety, Security & Environment
Institution of Engineers Malaysia
Integrated Facilities Management
International Organisation for Standardisation
Jabatan Kerja Raya (Public Works
Department)
Key Performance Indicator
Kolej Yayasan UEM
Leadership Acceleration Programme
Learn English Family
Linen and Laundry Services
Managing Director
Ministry of International Trade and Industry
Malaysia Landscape Architecture Awards
PSP
RC
Occupational Safety & Health
Procurement Card
PLUS Malaysia Berhad
Project Management Professional
Performance Management System
Projek Penyelenggaraan Lebuhraya Berhad
PROPEL’s Safety Passport
Quality, Safety, Health & Environment
Reading Circle
Rest and Service Areas
SIRIM
Standards and Industrial Research Institute
of Malaysia
SL1M-YES
Skim Latihan 1Malaysia – UEM Group
Young Executive Scheme
SROI
Social Return on Investment
UELP
English Literacy Programme Sponsored by
UEM Group Berhad
UEM Builders
UEM Builders Berhad
UEM Edgenta
UEM Edgenta Berhad (formerly known as
Faber Group Berhad)
UEM Group
UEM Group Berhad
UEM Sunrise
UEM Sunrise Berhad
UEM Group of UEM Group Berhad, PLUS Malaysia Berhad,
Companies or UEM Sunrise Berhad, UEM Builders Berhad,
Group-wide
Cement Industries of Malaysia Berhad, UEM
Edgenta Berhad (formerly known as Faber
Group Berhad), Opus Group Berhad,
Edgenta PROPEL Berhad (formerly know as
Projek Penyelenggaraan Lebuhraya Berhad)
ULC
Uniquest
VDP
WBL
YEP
YES
YGP
YUEM
UEM Learning Centre
Uniquest Infra Ventures Private Limited
Vendor Development Programme
Work-Base Learning
Young Engineers Program
Young Executive Scheme
Young Graduates Program
Yayasan UEM
103
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
GRI INDEX TABLE
GENERAL STANDARD DISCLOSURE
General Standard Disclosure
Page
Omissions
Strategy and Analysis
G4-1
Statement from Managing Director
29 – 31
Organisational Profile
G4-3
Name of organisation
7, 10 – 15
G4-4
Primary brands, products, and services
7, 10 – 15
G4-5
Location of headquarters
7
G4-6
Countries operated
9
G4-7
Nature of ownership and legal form
G4-8
Market served
7 – 15
G4-9
Size of operation
7 – 15
G4-10
Total workforce by employment type,
employment contract, gender and region
52, 53
G4-11
Percentage of employee covered by collective
bargaining periods
7, 8
–
Only applicable to PLUS and CIMA.
No. of Employees
Company
G4-12
Describe the organisation’s supply chain
65, 67
G4-13
Organisation changes in reporting period
6
G4-14
Precautionary approach
G4-15
Externally developed principles which the
organisation endorses
G4-16
Membership in associations
2013
2014
CIMA
680
642
PLUS
3,691
3,691
32, 33
–
7, 10 – 15
Identified Material Aspects and Boundaries
G4-17
Organisation’s consolidated financial statements
or equivalent documents
66
G4-18
Process for defining report content
48, 49
G4-19
Process in identifying material aspects
48, 49
G4-20
Material Aspect Boundary within the organisation
5, 6
G4-22
Restatements of information provided in previous
reports
6
G4-23
Significant changes from previous reporting period
in the scope, boundary or measurement method
6
Reference to Khazanah’s Silver Book
Bursa Malaysia’s CSR Framework
Bumiputera Empowerment Agenda (BEA).
104
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
General Standard Disclosure
Page
Stakeholder Engagement
G4-24
List of stakeholders groups engaged by
organisation
41
G4-25
Identification and selection of stakeholders
41
G4-26
Approaches to stakeholder engagement
41
G4-27
Key topics through stakeholder engagement
41
Report Profile
G4-28
Reporting period
5
G4-29
Date of most recent previous report
5
G4-30
Reporting cycle
5
G4-31
Contact point
6
G4-32
Disclosure option and external assurance
6
G4-33
Policy and current practice with regard to
seeking external assurance
6
G4-34
Governance structure of the organisation
34 – 37
G4-38
Composition of the highest governance body
17, 18, 38, 39
G4-39
Chair of the highest governance body
17, 18, 38, 39
G4-40
Report the nomination and selection processes
for the highest governance body
36
G4-41
Report processes to ensure conflicts of interest
are avoided and managed by the highest
governance body
36
G4-43
Measures to develop and enhance highest
governance body’s collective knowledge
36
G4-46
Roles of the highest governance body in
reviewing risk management processes
37
G4-52
Process for determining remuneration
36
Governance
Ethics and Integrity
G4-56
Internally developed statements of mission or
values, codes of conduct and principles
37
G4-58
Processes to ensure conflict of interest are
avoided
37
Omissions
105
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
Specific Standard Disclosure
GRI
INDEX TABLE
Page
Omissions
Economic Performance
G4-DMA
Disclosures on Management Approach
66
G4-EC1
Direct economic value
66
G4-EC4
Financial assistance received from the
government
37
Environment Performance
G4-DMA
Disclosures on Management Approach
93
G4-EN1
Materials used by weight or volume
G4-EN8
Total water use
98
G4-EN15
Direct GHG emissions (Scope 1)
97
G4-EN16
Energy indirect GHG emissions (Scope 2)
97
G4-EN17
Other indirect GHG emissions (Scope 3)
97
G4-EN23
Total weight of waste by type and disposal
method
–
–
A streamlined consolidated data of
materials used for UEM Group of
Companies is currently unavailable. We
are currently improving our data
collection process and hope to include
this information in the next Report.
Standardised consolidated data of waste
generated for UEM Group of Companies
is currently unavailable. We are currently
improving our data collection process
and hope to include this information in
the next Report.
106
UEM GROUP BERHAD SUSTAINABILITY REPORT 2013/2014
General Standard Disclosure
Page
Omissions
Labour Practices
G4-DMA
Disclosures on Management Approach
51
G4-LA1
Total number and rates of new employee hires
and employee turnover by age group, gender
and region
52
G4-LA2
Benefits provided to full-time employees
55
G4-LA9
Average hours of training per year per employee
56
G4-LA10
Programme for skills management and lifelong
learning
56, 59 – 63
G4-LA11
Percentage of employees receiving regular
performance and career development reviews
–
G4-LA12
Composition of governance bodies and
breakdown of employees according to gender,
age group, minority group membership
35, 53
Society
G4-DMA
Disclosures on Management Approach
G4-SO4
Communication and training on anti-corruption
policies and procedures
G4-SO8
Monetary value of significant fines for total
number of non-monetary sanctions for noncompliance with laws and regulations
79
44, 83
37
Product Responsibility
G4-DMA
Disclosures on Management Approach
37
G4-PR8
Total number of substantiated complaints
regarding breaches of customer privacy and
losses of customer data
37
G4-PR9
Monetary value of significant fines for noncompliance with laws and regulations concerning
the provision and use of products and services
37
Limited to hours training in ULC
Performance and career development
reviews are mandatory for all employees
in UEM Group of Companies.

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