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CIMIC Group Limited Annual Report 2016 |
Sustainability Report
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MATERIAL ISSUES
DEFINING MATERIAL ISSUES
In November 2016, CIMIC again undertook a materiality assessment to identify and confirm the important potential economic,
environmental, social and governance issues that could affect the business, both positively and negatively. The process built on the
assessment undertaken in the prior year and involved a series of interviews with senior management from across the Group and ESG
analysts at broking firms, an assessment of media reports about the Group, reviews of client sustainability reports, and reference to
recent sustainability reporting submissions such as the DJSI and CDP.
The topics and themes identified from these sources were then used to develop a shortlist of 39 potential material issues which formed
the basis of a web-facilitated survey. The survey was then sent to a selection of stakeholders identified through our strategic plans and in
consultation with our Operating Companies. These included:
•
Senior managers from across the Group and employees with operational responsibility for sustainability-related functions;
•
ESG and equity analysts providing broking coverage of the Group; and
•
Managers representing the Group’s major equity investors and financiers.
It is our intention to extend our engagement to other stakeholders as we progress on the sustainability journey. A desktop review of our
major client’s sustainability issues was also undertaken and cross-checked against the results.
Respondents were asked to prioritise the 39 identified potential material issues which were structured using GRI Guidelines (Economic,
Governance, Environmental and Social - including labour practices, human rights, society, product responsibility) to rank, on a five point
scale, their:
•
importance in their assessment of, and decision regarding, CIMIC Group; and
•
current or potential impact in terms of revenue, costs, investments or risk, on the medium and long-term success of the CIMIC Group.
The 39 identified material issues, and their ranking in terms of both importance and impact, were:
Material issues and their ranking
ESG factor
1. Ensuring the safety of the public while delivering projects
Social
2. Avoidance of all forms of bribery and corruption including facilitation payments
Social
3. Ensuring legal compliance with all environmental regulations and avoiding reputational liabilities
Environmental
4. Creating safer and healthier workplaces for the well-being of employees and all those in the Group's care
Social
5. CIMIC Group’s ability to deliver projects that meet the needs of its clients
Economic
6. Managing risk across a diverse and complex range of markets and geographies
Governance
7. Ensuring compliance in overseas markets when operating across different cultures and languages
Governance
8. Attracting, developing and retaining employees to meet the evolving needs of the business
Social
9. Avoidance of all forms of child or forced labour in the supply chain
Social
10. Availability of a skilled and trained workforce that can deliver projects and manage the business
Social
11. Availability of funding for future infrastructure projects given government budget constraints and
competing demands
Economic
12. Application of appropriate labour standards where people are treated fairly and with respect
Social
13. Encouraging free, fair and open competition, and complying with all applicable competition laws
Governance
14. Aligning remuneration with performance to encourage and reward the creation of shareholder value
Governance
15. Encouraging a culture of innovation where people are continually looking for new and better ways of
doing things
Social
16. Respecting the rights of local communities when delivering projects for clients
Social
17. Impact of changes in local or regional political or regulatory regimes that may impact business
development and project delivery
Governance
18. Protecting biodiversity and ecosystem health (including erosion and sediment management) when
delivering projects
Environmental
19. Payment of a fair rate of company tax and disclosure of the payments made
Governance
20. Balancing transparency in disclosing information for investors while not giving away commercial
advantage
Governance
21. Increased globalisation and a more competitive business environment
Economic
22. Reducing the production of hazardous and non-hazardous waste
Environmental
23. Changes in economic factors (regulation, government policy, new technology, availability of capital, etc)
that could impact capital productivity
Economic
24. Promoting gender equity in remuneration and promotion decisions
Social
25. Reducing the consumption and wastage of water
Environmental
26. Changes in social factors (government policy, industrial relations, new technology, etc) that could impact
labour productivity
Social
27. Providing local communities with full, fair and reasonable opportunity to participate in the economic
benefits (i.e. employment, procurement, or as subcontractors) of the Group’s activities
Social
28. Increased sovereign risk and Australia’s attractiveness as an investment destination
Economic
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