CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS Selection and Prioritization of CR activities Recommended criteria for CR activities has been developed to support decision-making for the prioritization of CR activities by locations and business lines. The location CR committees (or equivalent) shall annually plan and review contributions against these criteria as part of the budget planning process, and use it to prioritize contributions. The CR Planning Checklist (Attachment 1) explains a recommended process for local CR planning. Selection criteria where preference should be placed on activities with maximum ‘ticks’ and no ‘crosses’. Recommended Meets one or more of WorleyParsons global focus themes of our people, human rights, community, fair operating practices and supply chain, environment and ethics and transparency, or an ISO26000 corporate social responsibility defined core subject. Voluntary donations, allocation of company funds and hours spent that directly impacts or benefits communities around the world where WorleyParsons has a permanent office or project site. Has measureable benefits/results and criteria for evaluation and explicit timeline of commitment Has sound financial management beyond WorleyParsons’ giving e.g. triggers an economically sustainable social investment/solution Can serve as a catalyst for support from other corporations and funding sources e.g. customers, suppliers or industry peer involvement Provides opportunity for WorleyParsons employee ‘skilled volunteering’ opportunities Provides opportunity for WorleyParsons customers to be jointly involved NOT permitted Activities with the potential to create a conflict between any of WorleyParsons stakeholders such as employees, customers, shareholders, government or local communities Religious organizations (e.g., churches or organizations directly tied to a place of worship) Individuals (Note: scholarships funded via educational institutions are acceptable) Political, labour, fraternal organizations or civic clubs and all organizations which carry on propaganda or otherwise attempt to influence legislation Organizations located where WorleyParsons does not have offices School activities, clubs and events unless it involves science, technology, engineering, math education or community health Key considerations that should be taken into account when planning and implementing a CR initiative: • Be strategic with CR initiatives to achieve maximum extraction of value for WorleyParsons and recipients, with minimum cost and effort • Keep administrative and bureaucratic requirements to a minimum • Ensure the “value’ of CR activities is captured and logged on the internal CR SharePoint site • Learn and share with other locations (21-Aug-18) Page 1 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS Attachment 1: Corporate Responsible Criteria table Clarifications for metrics and referenced terminology in: • • • Annual Report (Environment, Social and Governance or Corporate Responsibility Section) Corporate Responsibility Performance Report Corporate Responsibility Catalogue of Activities (interface for data collection for some CR metrics) A-B C Carbon dioxide emissions Carbon dioxide emissions equivalent (CO2-e) is the universal unit of measurement equivalent (CO2-e) used to express and compare emissions from various greenhouse gases based on their global warming potential, converted to the equivalent amount of carbon dioxide. The seven key greenhouse gases recognized by the Kyoto Protocol and adopted by WorleyParsons are: • • • • • • • Carbon Disclosure Project (CDP) Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O) Hydrofluorocarbons (HFC) Perfluorocarbons (PFC) Sulphur hexafluoride (SF6) Nitrogen trifluoride (NF3) Carbon Disclosure Project (CDP) is an international not-for-profit organization providing a global system for companies and cities to measure, disclose, manage and share vital environmental information. WorleyParsons have participated in reporting our environmental performance to CDP since 2009. Carbon dioxide emission factors WorleyParsons approach to greenhouse gas emissions reporting is consistent with the reporting requirements set out in the National Greenhouse and Energy Reporting (NGER) Act (2007) for our Australia locations and the IPCC Guidelines for National Greenhouse Gas Inventories (2006) for other locations. The carbon dioxide emissions factors are derived from the reporting guideline standards. As per accepted practice, we do not restate previous year emissions based on emission factor updates. Contributions by operations Contributions by operations are the total monetary contributions by WorleyParsons (to Corporate Responsibility related activities) offices and business lines towards our people, community and environment. Included are activities supporting one or more of WorleyParsons global focus themes in our Corporate Responsibility Policy (our people, human rights, community, fair operating practices and supply chain, environment and ethics and transparency), or an ISO26000 corporate social responsibility defined core subject. Total contributions are measured in Australian Dollars for the reporting period. Contributions by offices outside of Australia are converted to Australian Dollars using the average exchange rate during the month that the community initiative was undertaken. Note: operational budgets allocated to ongoing programs like general management of (21-Aug-18) Page 2 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS HSE, People, CR, Assurance and ‘business as usual’ CR associated activities are not included as contributions by operations Contributions by personnel members (to Corporate Responsibility related activities) Contributions by personnel members are the total monetary contributions towards community organizations by WorleyParsons employees and contractors, family members and supply chain partners (customers and suppliers) who are contribution through WorleyParsons organized fundraising activities. Total contributions are measured in Australian Dollars for the reporting period. Contributions by employees outside of Australia are converted to Australian Dollars using the average exchange rate during the month that the community initiative was undertaken. D Diversity At WorleyParsons, diversity is defined by the various ways in which we differ and any dimension that can be used to distinguish between people or groups. E EcoNomicsTM Our framework for integrating sustainability into our customers’ projects and operation. That framework assists them in making decisions where trade-offs exist between technical, social, environmental and financial performance. Energy consumption Energy is consumed predominantly to run all our buildings and vehicle fleet. Electricity and gas consumption is compiled from metering and building data. Energy intensity Average rate of energy consumption relative to the intensity of a specific activity. At WorleyParsons, this is expressed as a ratio of energy consumption per personnel member (MWh/personnel member). Enterprise Development Enterprise development is a WorleyParsons Foundation initiative in providing contributions to assist in the operations, financial and development of local small businesses towards long term sustainability. Employee turnover Employees who leave WorleyParsons voluntarily or due to dismissal, retirement, or death. Employment contract There are two employment contract categories at WorleyParsons: • Permanent contract: Permanent employee contract for full-time or part-time work for an indeterminate period. • Employment types Fixed term or temporary contract: Fixed term employment contract that ends when a specific time period expires. There are two employment types at WorleyParsons: • Full time: A ‘full-time employee’ is defined according to local national legislation and practice regarding working time (e.g. minimum of 30 hours per week) • Part time: A ‘part-time employee’ is defined as an employee whose working hours per week, month or year is less than a ‘full-time employee. (21-Aug-18) Page 3 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS E-waste At WorleyParsons, we categorize e-waste as any type of waste from electronic equipment including computers, monitors, photocopiers, circuit boards, telephones and fluorescent tubes. F First Aid Case (FAC) Cases such as visits to a physician or licensed health care professional solely for observation or counseling; the conduct of diagnostic procedures. If the injury or illness required only the following types of treatment, consider it first aid: Using a non-prescription medication at non-prescription strength (for medications available in both prescription and non-prescription form, a recommendation by a physician or other licensed health care professional to use a non-prescription medication at prescription strength is considered medical treatment for recordkeeping purposes); Administering tetanus immunizations (other immunizations, such as Hepatitis B vaccine or rabies vaccine, are considered medical treatment); Cleaning, flushing or soaking wounds on the surface of the skin; Using wound coverings such as bandages, Band-Aids™, gauze pads, etc.; or using butterfly bandages or Steri-Strips™ (other wound closing devices such as sutures, staples, etc., are considered medical treatment); Using hot or cold therapy; Using any non-rigid means of support, such as elastic bandages, wraps, nonrigid back belts, etc. (devices with rigid stays or other systems designed to immobilize parts of the body are considered medical treatment for recordkeeping purposes); Using temporary immobilization devices while transporting an accident victim (e.g., splints, slings, neck collars, back boards, etc.). Drilling of a fingernail or toenail to relieve pressure, or draining fluid from a blister; Using eye patches; Removing foreign bodies from the eye using only irrigation or a cotton swab; Removing splinters or foreign material from areas other than the eye by irrigation, tweezers, cotton swabs or other simple means; Using finger guards; Using massages (physical therapy or chiropractic treatment are considered medical treatment for recordkeeping purposes); or Drinking fluids for relief of heat stress. Full Time Equivalent (FTE) Full Time Equivalent (FTE) is defined as the number of working hours that represents one full-time employee over a fixed time period. G Greenhouse gas emissions Average rate of carbon emissions relative to the intensity of a specific activity. At (21-Aug-18) Page 4 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS intensity WorleyParsons, this is expressed as a ratio of tonnes of carbon dioxide equivalent per personnel member (CO2-e/personnel member). This is calculated using our Scope 1 and 2 emissions. Greenhouse gas emissions total Aggregate total greenhouse gas emissions (Scope 1 and 2) generated by WorleyParsons activities, expressed in carbon dioxide emissions equivalent (CO 2-e). Group Leadership Team (GLT) The Group Leadership Team (GLT) is a team that is established by the Chief Executive Officer (CEO) to provide leadership to the global business of WorleyParsons and to promote good governance and operational excellence of WorleyParsons. Global Reporting Initiative (GRI) Global Reporting Initiative (GRI) promotes the use of sustainability reporting as a way for organizations to improve their sustainability performance and contribute to sustainable development. WorleyParsons has adopted GRI Standards Sustainability Reporting Framework for our corporate responsibility performance reporting. H I Inclusion At WorleyParsons, inclusion is defined as differences within the organization that are respected, valued and supported, providing each person with the opportunity to fully participate and to reach his or her own potential. Improve Improve services are defined as the provision of value-added services via a long-term contract to support our customers’ business or operation. J-K L Local community At WorleyParsons, the local community is defined as persons or groups of people living in areas close to our operations through to isolated settlements in countries in which we operate. Local employee Our people who are either born or who have the legal right to reside indefinitely (e.g. naturalized citizens, permanent visa holders) in countries which we operate. Lost Workday Case (LWC) A recordable injury/illness that results in one or more days away from work at the direction of a medical professional. WorleyParsons shall begin counting days away on the day after the injury occurred or the illness began and each calendar day until released to return to work in some capacity by a medical professional as defined in OSHA 1904.7(b)(3)(ii). A LWC is a Recordable Case. You must count the number of calendar days the employee was unable to work as a result of the injury or illness, regardless of whether or not the employee was scheduled to work on those day(s). Weekend days, holidays, vacation days or other days off are included in the total number of days recorded if the employee would not have been able to work on those days because of a work-related injury or illness (OSHA 1904.7(b)(3)(iv)). These cases are recordable only if information is received from a physician or other licensed health care professional indicating that the employee should not have worked, or should have (21-Aug-18) Page 5 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS performed only restricted work, on these days (OSHA 1904.7(b)(3)(v)). Lost Workday Case Frequency Rate (LWCFR) Lost Workday Case Frequency Rate (LWCFR) is a statistical measure of safety performance for the reporting period. LWCFR is calculated as: LWC Days Severity Rate (Total number of days away resulting from LWC ) 200,000 hours worked ( for the period ) Our LWCFR is for Category 1 only – personnel working directly for WorleyParsons (permanent staff, casual staff, contracted staff, secondees and agency personnel). M Materiality/material sustainability issues In the corporate responsibility context, materiality reflects a measure of the significance and relevance of sustainability topics to WorleyParsons. WorleyParsons define material sustainability issues as those that are most important to our business and our stakeholders. Medical Treatment Case (MTC) The management and care of a patient to combat disease or disorder. Medical treatment does not include: Visits to a physician or other licensed health care professional solely for observation or counseling; The conduct of diagnostic procedures, such as x-rays and blood tests, including the administration of prescription medications used solely for diagnostic purposes; e.g. eye drops to dilate pupils; or "First aid" as defined above. An MTC is a recordable case N National Greenhouse and Energy Reporting (NGER) Act 2007 National Greenhouse and Energy Reporting (NGER) Act 2007 is legislation by the Australian Government that requires business to report the amount of CO2-e emitted for all business activities. NGERS provides a single national framework for the reporting and dissemination of information on greenhouse gas emissions in accordance with the operational control model defined in Section 11 of the NGER Act. National Greenhouse Accounts (NGA) Factors National Greenhouse Accounts (NGA) Factors are government approved estimates of the global warming potential of greenhouse gases. NGA Factors are design to assist companies and individuals estimate greenhouse gas emissions. NGA Factors draws from the National Greenhouse and Energy Reporting (Measurement) Determination 2008 where it provides methods for us to generally apply to the estimation of a broader range of greenhouse gas emissions. Non-profit organization Organizations that are not operating for the profit or gain of its individual members where surplus revenue, direct or indirect goes back into the operation of the organization to carry out its community objectives and goals. Non-profit organizations are often established by and for the community with minimal or no intervention from (21-Aug-18) Page 6 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS local or federal government. O OneWayTM Our enterprise-wide integrity management framework which establishes our corporate expectations for zero harm to our business. Operational control Operational control describes the boundary for reporting our environmental performance information. WorleyParsons reports its energy use and greenhouse gas emissions with respect to operational control model set out by the Global Reporting Initiative (GRI). Entities included in WorleyParsons operational control are entities which we have financial control. P Paper consumption WorleyParsons major paper consumption are office paper (A4 and A3 paper used in photocopiers, printers and fax machines in offices) and printing paper (project reports, brochures, etc.) Our offices paper consumption and printing paper consumption is based on the average weight of reams purchased. Payroll giving Payroll giving or workplace giving enables our people to make tax effective charitable donations that is deducted from wage and paid directly to the charity and/or other nonprofit organizations. At WorleyParsons, payroll giving is implemented in Canada, United States, India, United Kingdom and Australia. Personnel member At WorleyParsons, personnel member is defined as the total number of our employees and contractors. Pro Bono At WorleyParsons, pro bono is used to refer to the provision of skilled services within paid working hours to community based organizations for a significantly reduced or no fee basis. Q R Reporting period Reporting period highlights our efforts from 1 July 2017 to 30 June 2018, unless otherwise stated. Ready, Response and Recovery (R3) Ready, Response and Recovery (R3) System provides a framework to manage WorleyParsons’ exposure to critical incidents, major business interruptions and commercial crises that might threaten the safety and security of our people and imperil the viability of our business. Remuneration Remuneration at WorleyParsons is defined as the basic salary plus additional amounts such as bonuses including cash and equity such as shares, benefit payments, overtime, time owed and additional allowances such as transportation and living allowances. Restricted Workday Case Restricted work occurs when, as the result of a work-related injury or illness: (21-Aug-18) Page 7 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS (RWC) You keep the employee from performing one or more of the routine functions of his or her job, or from working the full workday that he or she would otherwise have been scheduled to work OSHA 1904.7(b)(4)(i)(A); or A physician or other licensed health care professional recommends that the employee not perform one or more of the routine functions of his or her job, or not work the full workday that he or she would otherwise have been scheduled to work. OSHA 1904.7(b)(4)(i)(B). WorleyParsons shall begin counting restricted work days on the day after the injury occurred or the illness began and each calendar day until released to return to full routine duties. A RWC is a Recordable Case. S Scope 1 emissions Scope 1 emissions are direct greenhouse gas emissions produced by our company as a result of our activities. WorleyParsons key sources of Scope 1 emissions include generation of electricity, heat or steam from combustion of natural gas and transportation in company-owned vehicles (e.g. fleet). Emissions are calculated using the National Greenhouse Accounts (NGA) Factors, July 2014. Scope 2 emissions Scope 2 emissions are indirect greenhouse gas emissions from the purchased electricity, heat or steam by our company. Emissions are calculated using the National Greenhouse Accounts (NGA) Factors, July 2014. Scope 3 emissions Scope 3 emissions are indirect greenhouse gas emissions that are consequences of our activities but occur from sources that we do not operate. For WorleyParsons, this includes emissions related to business travel and emissions relating to central services in commercial buildings (e.g. waste sent to landfill). Emissions are calculated using the National Greenhouse Accounts (NGA) Factors, July 2014. Senior executives Senior executives include all members of the Group Leadership Team and all executives reporting directly to a member of that team. Skilled volunteering At WorleyParsons, skilled volunteering is used when our people provide skilled services to community based organizations in their time outside of paid working hours on a no fee basis. T The Group At WorleyParsons, the Group is defined as WorleyParsons and its subsidiaries, associates and alliances. Total energy consumption Total consumption of electricity, natural gas and fuels for WorleyParsons operations. Our total energy consumption is measured in Megawatt Hours (MWh) for the reporting period. Total greenhouse gas emissions Total greenhouse gas emissions for WorleyParsons operations. Our total greenhouse gas emissions are measured in tonnes CO2-e for the reporting period. (21-Aug-18) Page 8 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS Total Recordable Cases The sum of; Fatalities + LWC + RWC + MTC Total recordable case frequency rate (TRCFR) Total recordable case frequency rate (TRCFR) is a statistical measure of safety performance for the reporting period. TRCFR is calculated as the sum of; Fatalities + LWC + RWC + MTC multiplied by 200,000 and divided by the number of hours worked; TRCFR ( Fatalities LWC RWC MTC) 200,000 hours worked ( for the period ) Frequency rates are a normalized measure of performance; they are a WorleyParsons reporting requirement. Training Hours (Online) The total sum of the expected duration taken to complete as the accessed courses for our WorleyParsons user who are in our online learning management system for the reporting period. U United Nations Global Compact (UNGC) United Nations Global Compact (UNGC) is a United Nations initiative to encourage businesses adoption of sustainable and socially responsible policies, including an annual report of the implementation progress. UNGC is based on ten principles in the areas of human rights, labour, the environment and anti-corruption. United Nations Road Safety Program WorleyParsons supports the United Nations Road Safety Program and its commitment to support the Decade of Action for Road Safety 2011-2020. The management of road transport risks are covered by the ‘Five Pillars’: • Road safety management • Safer roads and mobility • Safer vehicles • Safer road users • Post-crash response. V Volunteer hours by personnel member (community) Volunteer hours are defined as unpaid volunteering hours contributed by our people to community based organizations and internal WorleyParsons Corporate Responsibility activities. Volunteer hours are captured for both pro bono and skilled volunteering. Volunteer hours by personnel member (internal) Volunteer hours are defined as unpaid volunteering hours contributed by our people to internal WorleyParsons activities linked to corporate responsibility events and projects, such as coordinating events, supporting diversity networks, managing health & wellbeing initiatives, contributing to energy efficiency projects and road safety activities etc. W Waste recycled Waste that is returned to process or recycled. Types of waste we recycle include ewaste, paper, cardboard and plastics. (21-Aug-18) Page 9 of 10 CORPORATE RESPONSIBILITY DEFINITIONS & CLARIFICATIONS Water consumption Amount of water consumed by WorleyParsons operations, expressed as kilolitres (thousand litres). Consumption is based on billing invoices. Where invoice data is not available, estimates are calculated by average water consumption per personnel member. Women of WorleyParsons (WoW) Women of WorleyParsons (WOW) is a professional network in WorleyParsons that promote opportunities for talented women to succeed and establish a strong global network of women professionals to share leadership experience and knowledge. WorleyParsons Foundation WorleyParsons Foundation was established in 2013 with objectives to support the execution of high impact strategic community projects; become a vehicle for direct corporate investment, fundraising and volunteering; expand opportunities for our people to be directly or indirectly involved in foundation activities; and raise awareness of WorleyParsons corporate responsibility credentials with our stakeholders. X-Y Z Zero Harm Zero Harm is WorleyParsons vision to achieve zero harm to our people, assets and zero environmental incidents. (21-Aug-18) Page 10 of 10