Our approach to sustainability is based on accountability and transparency. We are committed to open communications with our various stakeholders about our operations and business. Sustainable business growth is a key strategic thrust for SMRT, and we aim to embed sustainability into our core operations.
Materiality Process
As part of SMRT’s strategic approach to sustainability, a robust materiality assessment was conducted in early 2016. This assessment was in line with the Accountability AA1000 Assurance Standard and Global Reporting Initiative’s (GRI’s) four-step process of identification, prioritisation, validation and review to define material issues. The extensive materiality assessment process was essential to defining SMRT’s economic, environmental, social and governance material issues that influence the decisions of our key stakeholders.
As our key stakeholders remain largely the same as when the previous materiality assessment was conducted, with the exception of our shareholders, the material issues identified last year are still considered material now. We therefore consider the materiality assessment to be still valid for 2017.
Materiality Assessment
Identification |
Establish the spectrum of important or material issues that are of relevance to our core businesses. This is done through active stakeholder engagement. |
Prioritisation
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Consider both external and internal perspectives through a combination of information sources:
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Validation
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Internal discussions and reviews with Management, the Environmental Sustainability Committee and employees. The sessions were facilitated by an independent sustainability expert. List of 14 key material issues was finalised and signed off by the CEO and Management. |
Review
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Periodically assess list of material issues (following report publication) based on changing business landscape, emerging trends and key stakeholder feedback. |
Identification
Stakeholder Engagement
Our stakeholders are critical to the sustainability of our business. We are committed to actively engaging our stakeholders to understand and look for better ways to address their economic, environmental, social and governance concerns.
In 2017, we engaged our key stakeholder groups through a wide variety of formats. We communicated regularly with them and sought their feedback on areas of mutual concern.
Stakeholders | Forms of engagement | |
Customers and Community | Customers |
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Community |
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Regulators |
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Business Partners |
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Employees and Union | Employees |
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Union |
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Suppliers and Contractors |
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Investors |
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Prioritisation & Validation
Material Issues
Following consultations with external as well as internal stakeholders, we prioritised the material issues identified into two tiers. Critically important issues were classified as Tier 1, while those of high importance were classified as Tier 2.
Tier 1 |
Operational Performance and Excellence |
Anti-corruption/Fair and Ethical Operating Practices |
Access to Essential Services |
Customer Health and Safety |
Occupational Health and Safety |
(Employees and Contractors) |
Environment (Climate Change, Energy Management, Water Management, Waste Management, Noise Management, Sustainable Resource Use, Compliance) |
Customer Satisfaction |
Tier 2 |
Community Investment, Involvement and Development |
Managing Supply Chain Sustainably |
Diversity and Equal Opportunity |
Labour Rights |
Employee Development and Training |
Research and Development/Innovation for Engineering Capabilities |
Noise |
Review
Next Steps
We aim to conduct a review of these material issues at an appropriate time. Our focus is to drive performance improvements around our key material issues, as these represent our main sustainability risks and opportunities.
We have taken steps to address our material issues. For example, we have put in unstinting effort to improve train reliability with our multi-year, multi-project renewal works. We have established four sub-committees to spearhead our environmental sustainability pillars throughout the organisation.
Over the next few years, our intention is to be able to fully integrate sustainability in all aspects of our business units. At the same time, we will also be looking at mega trends which may affect us in the future, by conducting continuous dialogue with our stakeholders and taking a risk-based approach to our entire value chain.