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CIMIC Group Limited Annual Report 2016 |
Sustainability Report
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The Group has a Privacy Policy which applies to all employees of the Group, third parties engaged by the Group, and all alliances and joint
ventures in all jurisdictions. The objectives of this Policy are to treat personal information:
•
in Australia, including that of its Australian customers and business partners, in accordance with the
Australian Privacy Act 1988
(Cth)
(the Privacy Act) and the Australian Privacy Principles; and
•
outside Australia, in accordance with the applicable law.
During 2016, there were no breaches of continuous disclosure and the Group is unaware of any substantiated complaints regarding
breaches of privacy by clients or other stakeholders.
FREE AND FAIR COMPETITION
The Group is committed to the principles of free and fair competition as reflected in our Code of Conduct. The Group will always compete
vigorously but fairly, and comply with all applicable competition laws. The Group will also comply with all applicable national and
international laws, regulations and restrictions relating to the movement of materials, goods and services.
In 2016, there were no significant fines or non-monetary sanctions for breaches of laws or regulations related to anti-competitive
conduct, marketing communications, or other matters of non-compliance.
No legal actions were commenced or are outstanding with respect to anti-competitive, anti-trust or monopoly behaviour. There were no
instances of significant fines or sanctions for non-compliance with Australian and international laws and regulations during the year.
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The Group does not sell banned or disputed products.
SUPPLY CHAIN AND LOCAL SUPPLIERS
Our Operating Companies aim to build sustainable supply chains, relevant to their focused businesses. The major elements of the Group’s
supply chain are materials (concrete, steel, and asphalt), plant and equipment, and fuel and sub-contractors (such as electricians,
plumbers, glaziers, steel fixers and other tradespeople). We seek to minimise the impact of our construction materials such as steel,
timber and concrete by working with our suppliers to identify measures to improve the efficient use of these resources. Measures
identified include: providing financial incentives for subcontractors to reduce wastage of reinforcing steel (rebar), cabling and pipes;
reusing inert waste and secondary aggregate as backfill on projects; and redeployment of concrete waste to build temporary road
structures, hard stands and precast concrete road barriers, amongst other things.
In 2016, CIMIC launched its Group Procurement Policy which applies to all project related and corporate procurement of CIMIC Group
globally, including joint ventures. The new Policy aligns with our Code of Conduct and will play a key role in supporting project delivery,
cost control, sustainability and financial performance. Suppliers are assessed against relevant performance dimensions: compliance with
health, safety and labour standards (15%), compliance with sustainability/ environmental regulations (15%), quality (15%), schedule
compliance (15%), technical assistance (10%), responsiveness (10%), contract terms and conditions (10%), quality certificates (5%),
withholdings and warranties (5%).
All suppliers must comply with the Dealing with Third Parties Procedure referred to above. The Procedure aims to avoid dealing with third
parties who do not share a similar approach to the Group in relation to ethical matters, including supply related matters.
Locally sourced goods and services support local employment, boost regional economic growth and create upskilling opportunities. In
some cases, purchasing locally made products and services can minimise transport costs and reduce fuel consumption and associated
greenhouse gas emissions.
For example, on the Transmission Gully project in New Zealand, the CPB HEB JV is a founding member of the Porirua Youth2Work
program and has pledged to inspire local youth into careers in the construction industry. The CPB HEB JV is recruiting around 100 local
labourers and 100 plant machinery operators as the project gears up for the first season of major earthworks.
CPB Contractors also completed the construction of Papua New Guinea’s (PNG) new National Football Stadium in Port Moresby,
redeveloping an existing playing field to create a 15,000 seat venue to host rugby league and the 2016 Pacific Games. The project
featured 88% involvement of PNG-based companies and a national workforce involvement rate of 90%. Practical completion was
achieved 24 days ahead of schedule with no LTIs and a TRIFR of 1.51.
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CIMIC is continuing to cooperate with the relevant authorities regarding an alleged breach of the Code by employees within the Leighton International
business prior to 2012 that, if substantiated, may have contravened Australian laws. This matter was self-reported to the Australian Federal Police and
CIMIC does not know when the investigations will be concluded.
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