Corporate Responsibility Indicators (Metrics): Definitions & Clarifications to be a reference for: the WorleyParsons Annual Report, Corporate Responsibility section the WorleyParsons Corporate Responsibility Performance report A - B C Carbon dioxide emissions equivalent (CO 2-e) Carbon dioxide emissions equivalent (CO 2-e) is the universal unit of measurement 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 dioxide (CO 2) Methane (CH 4) Nitrous oxide (N 2O) Hydrofluorocarbons (HFC) Perfluorocarbons (PFC) Sulphur hexafluoride (SF 6) Nitrogen trifluoride (NF 3) Carbon Disclosure Project (CDP) 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. CDP data is often referenced by investors and customers. 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 offices and business lines towards Corporate Responsibility Activities. 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 HSE, People, CR, Assurance and business as usual CR associated activities are not included as contributions by operations Contributions by personnel members Contributions by personnel members are the total monetary contributions towards Corporate Responsibility Activities by WorleyParsons employees and contractors, family members and supply chain partners (customers and suppliers) who are contributing 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. Page 1 of 7
Corporate Responsibility Corporate Responsibility Activities Corporate Responsibility has many different names for the same or similar concept such as Corporate Social Responsibility, Corporate Citizenship, Business Sustainability and Corporate Sustainability. In WorleyParsons, Corporate Responsibility (CR) refers to our business commitment towards having a positive impact on the communities, cultures, customers and environments in which we operate through Corporate Responsibility Activities. 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. These activities are tracked in the Corporate Responsibility Catalogue of Activities for reporting purposes. Corporate Responsibility Catalogue of Activities Found on the WorleyParsons intranet site, the CR catalogue of activities is a shared database with set fields and in-built quality processes. Corporate Responsibility Champions submit descriptions of their local activities which are then checked and approved by the global Corporate Responsibility Team. 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 EcoNomics TM 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 Corporatre Responsibility Activity assisting the operations, financial and development of local small businesses towards long term sustainability without dependency on WorleyParsons. 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. Fixed term or temporary contract: Fixed term employment contract that ends when a specific time period expires. Employment types 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. Page 2 of 7
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 Full Time Equivalent (FTE) Full Time Equivalent (FTE) is defined as the number of working hours that represents one fulltime employee over a fixed time period. G Greenhouse gas emissions intensity Average rate of carbon emissions relative to the intensity of a specific activity. At WorleyParsons, this is expressed as a ratio of tons of carbon dioxide equivalent per personnel member (CO 2-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 4.0 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 Frequency Rate (LWCFR) Lost Workday Case Frequency Rate (LWCFR) is a statistical measure of safety performance for the reporting period. LWCFR is calculated as the number of recordable incidents that resulted in lost workdays, per 100 fulltime employees based on 100 employees working 200,000 hours per year. Our LWCFR is for Category 1 only personnel working directly for WorleyParsons (permanent staff, casual staff, contracted staff and agency personnel). Page 3 of 7
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. 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 CO 2-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 local or federal government. O OneWay TM 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 non-profit 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 or unpaid working hours to community based organizations for a significantly reduced or no fee basis. Page 4 of 7
Q R Reporting period Reporting period highlights our efforts from 1 July 2014 to 30 June 2015, 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. 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 comprise all employees at the CEO-1 CEO-2, CEO-3 and CEO-4 levels. 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, including greenhouse gas emissions from Exmouth Power Station, Australia. Our total greenhouse gas emissions are measured in tons CO 2-e for the reporting period. 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 total number of recordable cases by a medical professional per million hours worked. Page 5 of 7
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, labor, 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/internal)) Unpaid volunteering hours contributed by our people towards: 1) Assisting community based organizations 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. Volunteer hours are captured for un-paid pro bono services, skilled and unskilled volunteering. OR 2) Internal WorleyParsons activities linked to corporate responsibility events and activities, such as coordinating internal activities/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 e-waste, paper, cardboard and plastics. Water consumption Amount of water consumed by WorleyParsons operations, expressed as kiloliters (thousand liters). 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. Page 6 of 7
X - Y Z Zero Harm Zero Harm is WorleyParsons vision to achieve zero harm to our people, assets and zero environmental incidents. Page 7 of 7