2012-2013 CSR Report

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CORPORATE

SOCIAL
RESPONSIBILITY
REPORT
2012-2013
INTEGRATED OFFSHORE OILFIELD
SERVICES PROVIDER
Kraken Field - FPSO
Armada Installer, DLB FPSO Armada Sterling FPSO Armada TGT 1
Under Conversion

UNITED KINGDOM RUSSIA


London
Astrakhan
TURKMENISTAN
Turkmenbashi
UNITED STATES Ashgabat
SAUDI
UAE
ARABIA
Houston
Al Khobar Dubai INDIA
MEXICO
Ciudad del Carmen
VIETNAM
Mumbai
SOUTH EAST ASIA
GHANA Kemaman
Kuala Lumpur Labuan
VENEZUELA Puerto la Cruz NIGERIA Lagos Miri BRUNEI
Port Harcourt MALAYSIA
SINGAPORE
CONGO
Port Point - Noire Jakarta
ANGOLA INDONESIA
BRAZIL
Shore base, Country Rio de Janeiro
office / marketing office
FPSO
Perth

FPSO Armada Sterling II


FPSO Armada Perdana FPSO Armada Perkasa FPSO Armada Claire
- FPSO Under Conversion

Bumi Armada Berhad is a Malaysia-based international offshore oilfield services provider with a presence in
over 18 countries spread across five continents, underpinned by its access to over 3,000 people from over
25 nationalities. Bumi Armada Berhad is listed on Bursa Malaysia. Our clients range from NOCs and IOCs to
the Independents.
Our Business Units: Gas Development and Technology (GDT): we have
developed a range of conceptual designs for floating
Floating Production, Storage
 and Offloading (FPSO): regasification projects, including LNG carrier conversion,
we own, lease and operate FPSOs to receive hydrocarbon and regasification barge solutions.
sourced from oilfields to be offloaded into an oil tanker or
a pipeline. Support Units:
Offshore Support Vessels (OSV): we own, operate Asset Management and Operations (AMO): we provide
and charter vessels to provide support for exploration, asset maintenance, oilfield operations and offshore
development and production activities in the offshore oil management using AMO’s Compliance Assurance
and gas industry. Management System (CAMS).
Transport and Installation (T&I): we own, operate and Engineering and Technology (E&T): we provide concept
charter vessels to provide pipe-laying, heavy lift, subsea studies, basic and front-end engineering design and
installation, floater and mooring installation and marine detailed engineering with complete EPCM delivery
spread support. capabilities for oil and gas, and floating systems.
Oilfield Services (OFS): we provide services for offshore Major Projects: we provide extensive EPCC (Engineering,
brownfield markets, such as well services, marginal Procurement, Construction and Commissioning)
field production solutions and enhanced extraction of competencies in managing large projects such as FPSOs
hydrocarbons. and early production systems with tight timeframes.
CONTENTS
2 CEO’s Review

4 Corporate Social Responsibility


Performance Data

5 Our Approach to Corporate Social


Responsibility

5 Building Trust

6 Listening to Our Stakeholders

8 Governance, Risk and Materiality

11 Driving Sustainability Performance

14 Awards and Recognition

15 Health, Safety, Security, Environment


& Quality (HSSEQ)

15 Integrated HSSEQ Approach

17 Health, Safety and Security

20 Environment

23 People

27 Community

29 About This Report

29 Notes to Environment and Social Data

30 Appendices

30 Vessel Certifications

31 Supplementary Data

32 Glossary of Technical Terms

34 GRI G4 Content Index


Corporate Social Responsibility Report 2012-2013

02

CEO’S REVIEW

Dear Stakeholders,

I present to you our third Corporate Social Responsibility


(CSR) report, covering the period 2012 and 2013. The
challenge to sustainably meet the world’s growing
energy demands races on, against the backdrop of
extreme weather events becoming an increasingly
evident reality. The industry continues to see new
regulations, both mandatory and voluntary, to push and
guide firms to a more sustainable new norm.

Our strategy remains entrenched in the strict belief that only firms that are
economically, environmentally and socially responsible will have a real chance at
being profitable for the long haul. We measure our long-term goals against best-in-
class processes and performance, while continuously embracing the right values and
taking steps to be more efficient with the resources we have.

I am proud of the team at Bumi Armada for their In the area of Health, Safety, Security, Environment
relentless dedication to sustainability. This has and Quality (HSSEQ), we launched an initiative to drive
resulted in two successive inclusions in the Dow Jones Operational Excellence as a strategic priority. We also
Sustainability Index for Emerging Markets and the introduced two information management improvements,
RobecoSAM Sustainability Yearbook 2014. Bumi Armada and continue to improve the reporting culture in Bumi
was identified as one of seven global sustainability Armada.
leaders out of a total of 48 eligible firms in the Energy
Equipment & Services universe. Sustained vigilance is essential in building a culture to
achieve our HSSEQ objectives, which includes targets of
Following the release of the Global Reporting Initiative zero injuries and zero spills. We also target to reduce
(GRI) G4 guidelines in May 2013, our reporting fuel consumption per man-hour by 5% every year.
framework has transited from G3.1 to G4 guidelines.
The G4 guidelines were improved to strengthen the We recognise that there are externalities that may
focus on materiality in sustainability reporting - a firm not be captured over the short term, but will prove
should focus their efforts, and reporting on issues that to be valuable to our long-term business and social
are the most significant and relevant to stakeholders. objectives. An example is our emphasis on gender
We strengthened our materiality assessment with a equality and diversity. Our efforts and investments to
more rigorous process, in the process using it as a ensure female employees are provided support and
tool to identify and prioritise gaps for improvement. equal opportunities is reflected in our gender diversity
As a result, we also produced a more focused report, figures. In demonstrating our commitment to be a fair
reporting on issues that are of greatest concern to our and inclusive employer, we believe that it will help
stakeholders. attract the best talents regardless of gender and build
our standing in the community.
03

While developed and built over the long-term,


initiatives such as a well managed HSSEQ
system, should also deliver some near term
benefits such as minimising risks of hazards
through better monitoring. It is thus seen as a
proxy for efficiency and quality for customers
and investors. Equally, investing in graduate
trainees helps us build and develop future talent
to support and shape our long-term business
aspiration.

Our CSR Steering Committee sets out these focus


areas yearly in consideration of the materiality of
the issues, opportunities for improvement, and
corresponding impacts. The four focus areas
continue to be: fuel efficiency, environmental
conservation, capacity development and
developing local content in countries that we
operate in. In these areas, we continue to invest
resources to explore and act on opportunities.
I am pleased to share that with the collective
efforts of our employees, Bumi Armada has
achieved our targets to reduce electricity and
water consumption by 5% each year. This is
calculated on a consumption per employee
basis for the Company. One new initiative in this
reporting period is a 12-18 months in-house
development programme, “STAR” to nurture
high potential leaders. To date, 25 employees
have been selected, and have graduated from
the programme. We expect to develop new
employees into the programme.

I welcome you to learn more about our


approach and activities from the following
pages. We sincerely welcome your feedback, as
we continuously take steps in Bumi Armada’s
sustainability journey and remain Knots Ahead
of the Rest.

Hassan Assad Basma


Executive Director / Chief Executive Officer

Hassan Assad Basma


Executive Director /
Chief Executive Officer
Corporate Social Responsibility Report 2012-2013

04

CORPORATE SOCIAL RESPONSIBILITY


PERFORMANCE DATA
2013 2012 2011 2010

Economic
Profit (in RM, millions) 435 388 365 351
Revenue (in RM, millions) 2,073 1,659 1,544 1,241
EBITDA (in RM, millions) 994 948 872 714

Environmental
Spills - onboard (number) 1 2 3 5
Spills - overboard (number) 3 0 0 0

Bunker fuel consumption (million litres) 184 167 57 39


Electricity consumption (MWh) 1,198 1,120 885 879

Greenhouse gas emissions (GHGs)


Scope 1 (thousand tonnes CO2 equivalent) 529 472 – –
Scope 2 (thousand tonnes CO2 equivalent) 0.8 0.7 0.5 0.5
Scope 3 (thousand tonnes CO2 equivalent) 678 303 – –

Water consumption – vessels (thousand m3) 178 127 – –


Water consumption – shorebase (thousand m ) 3
1.6 2.1 1.5 1.3

Social
Fatalities 0 0 0 0
Lost time injury frequency (LTIF) 0.44 0.37 0 0.21
Total recordable injuries frequency (TRIF) 1.31 1.29 0.19 0.43
First aid case frequency 2.32 3.34 1.13 3.19
Near miss incidents 46 34 38 16
Fire/Explosion 1 1 0 1
Security incidents 3 0 1 5
Man-hours (million) 6.88 5.40 5.33 4.70

Turnover rate 14% 18% 17% 19%


Training hours per employee 11.7 12.7 7.9 6.3

Community contributions (in RM, thousands) 245 403 184 79

Please refer to Data Measurements on page 29 for details of definitions and methodologies.
05

OUR APPROACH TO CORPORATE SOCIAL


RESPONSIBILITY
Building Trust

Vision

To be the trusted offshore and marine energy


services provider in every corner of the world.

Mission

To provide effective integrated floating solutions


in a safe, sustainable, reliable and environmentally-
friendly manner therefore fuelling the growth of
our host nations and communities

Customer
Focus

Hands-on Brutal In building an organisation of trust, we have a strong


Execution Openness commitment to demonstrate integrity in our behaviours
and be accountable for our actions.

Collaboration Ethical Operations


Our Code of Ethics outlines standards every individual in
Bumi Armada is expected to comply within our business
dealings. It sets out guidelines for legal compliance,
People Commercial
integrity in business dealings, illegal and questionable
Development Awareness
payments, gifts and entertainment. We do not tolerate
incidents of corruption.
Safety
Mindset The code is also intended to serve as a practical guide
in situations where one may be unsure of what to do.

Trust All employees are required to acknowledge their


compliance with the Code of Ethics. Team leaders are
expected to discuss and be satisfied that each member
Building trust with our stakeholders is central to our of the team understands it. By applying the code we
business success. It is our vision to be trusted. Our core will demonstrate that we are a group united by strong
values were developed with the aim to build trust. values and a group, which we are proud to be a part of.

We recognise that the environmental, social and We expect the same level of ethics from our business
governance (“ESG”) aspects of business underpin associates. Our Code of Ethics is communicated to all
sustainability. employees and customers. Our suppliers are required
to abide by our Code of Procurement Ethics (see page
Sustainability is about balancing growth with corporate 12).
responsibility, conserving resources for future
generations by minimising activities that may have Our whistle-blowing channel is accessible on our
a negative impact on the environment and driving website. Our whistle-blowing policy is reviewed and
efficiency and productivity and returning value to our approved by the Board. All stakeholders have access to
stakeholders in a variety of ways. report malpractices in full confidentiality.
Corporate Social Responsibility Report 2012-2013

06

LISTENING TO OUR STAKEHOLDERS

In a complex and connected world, we believe it is imperative to collaborate with stakeholders to achieve shared
goals and work towards common challenges. We engage stakeholders whom we have significant influence on, or
are significantly influenced by.

Engagement Platforms

Customers and business Formal customer


Customer Satisfaction Survey
associates satisfaction surveys
• Survey on a project basis and on are executed twice
AMO OSV T& I Major Projects
annual basis for fleet, as part of across the project,
our quality management system 100 hence there may
• Regular communication with be years with no
our existing and potential 76% 78% Target: surveys executed.
customers 80 73% 70% The participation
72% 70%
and business associates rate for the survey
61% is at least 80%.
60
The 61% score in
40 2012 was from
one T&I project.
We sought to
20
understand reasons
so that we can take
0 corrective actions
2012 2013 in order to improve
our performance.
In the process we learnt a significant reason was due to our rating system
not being fully understood, and made the necessary clarifications. In
future surveys, we will be mindful and clarify possible areas of confusion in
advance.

Suppliers and contractors Employees (refer to page 23-26 for Governments, regulators and
• Supplier performance appraisals more information) industry associations
upon completion of each major • Quarterly CEO breakfast sessions • Visits to our sites and vessels
project • Quarterly townhall sessions • Private meetings
• Regular updates and discussions • Line managers • Formal consultation dialogues
with key suppliers on projects, • Bienniel employee engagement
products and business survey
environments • Annual performance appraisal
• 360o for managers
• Exchange programme

Financial community Community Media


• Private meetings with over 70 • Meetings with local governments and • Regular interface with local and
institutions business associates international media
• Roadshows at major investment • Partnerships with local NGOs to
conferences assess needs
• Annual General Meeting
07

LISTENING TO OUR STAKEHOLDERS (cont’d)

Responding to our employees’ needs

In the 2012 townhall meeting, employees raised the issue of carpark


reimbursements being inadequate in Kuala Lumpur. HR proceeded
to ascertain the need and increased carpark reimbursements.
The prompt response taken demonstrated that the Company is
concerned about their welfare, and will take actions to address
concerns promptly as long as it can reasonably do so in its capacity.

Keeping environmental considerations in mind throughout


client engagements

We nurture open and clear communication channels with our clients.


This is important given that characteristics of a site are learnt in the
process of the project. For example, in 2013, it was identified that
the rich gas export stream would result in liquids being produced
to shore in the late phase of a field development project. Thus,
we were requested by our client to promptly conduct trials using
recycle valves. Bumi Armada assessed short, medium and long
term effects of any deviations and/or design changes which may
impact the environment. The 72 hours trial was completed with no
significant impact to the environment.
Corporate Social Responsibility Report 2012-2013

08

GOVERNANCE, RISK AND MATERIALITY

This section summarises our governance and


risk management measures.

For further details, please refer to our Corporate


Governance Statement and Statement of Risk
Management and Internal Control on page 56-74
of the 2013 Annual Report.

Information on how we manage risks and


opportunities can also be found in respective
sections: Health, Safety, Security, Environment &
Quality (HSSEQ); People; and Community.
09

GOVERNANCE, RISK AND MATERIALITY (cont’d)

Board Responsibility Remuneration of employees includes a component tied


The Board, collectively, has ultimate responsibility for to the respective sustainability performance directly
the long-term success of the Company. This includes under their responsibility. The exception is safety
reviewing and adopting a strategic plan, and addressing mindset, which is a core value that all employees must
issues on a timely basis to discharge its corporate demonstrate as part of the performance appraisal.
accountability function and safeguard stakeholder
interests. Risk Management
The Board is also responsible for establishing a sound
The Chairman who is an Independent Non-Executive framework to manage risks.
Director represents the Board to shareholders and
together with the Board, reviews and approves the The Company enhanced its resources to strengthen
strategic objectives and policies of the Company. The its risk management process. In the course of 2012, a
Chairman ensures that management proposals are Management level Risk Management Sub-Committee
debated and challenged against enterprise risk and (“RMSC”) under the purview of the CEO was fully
stakeholder objectives. functional.

The CEO has overall responsibilities over the The CEO has a standing invitation to the Board-level Risk
performance of the Group’s operational and business Management Committee (“RMC”). Risks are collated and
units. He is responsible for the implementation of Board reported on a quarterly basis to the RMC and thence
policies, directives, strategies and decisions. to the Board. The adequacy and soundness of the
ERM Framework are addressed during these quarterly
The CEO also functions as the intermediary between meetings.
the Board and Management, working with the Board in
defining the strategic objectives of the organisation, Risk management is supported by an internal control
preparing its operational plans and seeing to its environment and structure. Elements of our internal
implementation including business and financial controls include documented policies and procedures
performance, organisation effectiveness, human relating to functions such as finance, procurement,
resource development, investor relations and building human resources, information system, quality;
brand equity, striving for operational excellence, compliance management; HSSEQ management system;
supporting health, safety, environment and quality and a robust internal audit function. Mitigations are
performance initiatives as well as commitment to then translated to actions for implementation to the
corporate social responsibility. point where the risk is effectively managed to as low
as reasonably practicable (“ALARP”). Every project and
The Board is also responsible for adherence to, and business group is subject to the Risk Management
the accuracy of disclosures prepared in compliance Process to ensure sustainable business growth as well
to, the Malaysian Companies Act and Bursa Malaysia as company wide compliance.
regulations.
The Board reviews the effectiveness of the risk
The Board is supported by a number of Board management and internal control systems through the
committees, namely the Audit, Nomination & Corporate Group’s actual versus planned performance as well
Governance, Remuneration, Risk Management and as other key financial and operational performance
Executive committees. indicators to determine if the underlying risk
management and internal control systems continue to
The Board reviews HSSE performance as part of the be effective.
regular meeting agenda, and receive ad-hoc updates
on other sustainability events and performance as Specific transactions, projects or opportunities are also
determined by the CEO. discussed with the Board when required. This allows the
Board to determine if new risks have arisen and need to
Remuneration be addressed or action plans and internal controls need
Bumi Armada’s Employees’ Shares Option Scheme (ESOS) to be enhanced to improve results.
is structured in alignment with long-term success, with
a vesting period of three years. The Company assesses the management and
performance of joint venture companies through
representation on boards and monitoring controls.
Corporate Social Responsibility Report 2012-2013

10

GOVERNANCE, RISK AND MATERIALITY (cont’d)

Materiality Our first formal materiality analysis was conducted in


A materiality analysis evaluates issues, risks and 2011. In 2013, we engaged Paia Consulting, a specialist
opportunities which have, or potentially have, the sustainability consultancy, to conduct a comprehensive
greatest impact to internal and external stakeholders. materiality assessment.

Our materiality analysis serves three purposes. Firstly, The following materials were reviewed: strategic
in conducting a formal evaluation of stakeholder priorities, policies, risk management, internal KPIs,
interests, the exercise adds clarity to our goal of long- internal and external communications, due diligence
term and inclusive growth. We cross check material forms from banks, guidance documents by industry
considerations against our risk management systems associations, formal feedback from our customers and
and strategy for completeness. Secondly, in prioritising business partners, and sustainability reports from peers
issues, it provides focus in our overall and CSR across our business units. Interviews with employees
strategies. Thirdly, our sustainability reporting will be who interact frequently with external stakeholders were
focused and concise while meeting expectations of our held to add depth to specific issues of concern to our
stakeholders. key stakeholders.

We also evaluated the extent of influence we may exert


towards our suppliers, contractors, customers and the
Importance to external stakeholders

community. These considerations are described under


Influence across the value chain under HSSEQ, People
In our CSR and Community sections and also Supplier Management.
report
Issues were identified and prioritised on a 5x5
matrix with defined thresholds. The assessment was
discussed in a workshop attended by representatives
In our CSR across business units and functions, including senior
report, with management. The assessment was then reviewed
fewer details and approved by the CEO. We aim to increase the
robustness of our materiality assessment in the near
future by engaging external stakeholders to evaluate
Not our materiality assessment.
reported

Importance to internal stakeholders


Figure 2: Content selection

Legend: Key material issue Critical material issue Moderately material issue

Material issues Addressed under


HSSE HSSEQ, page 15-22
Ethical Operations Building Trust: Ethical Operations, page 5
Local Content Community, page 27-28
Capacity Building People, page 24-26
Equal Opportunities People, page 23-24
Fuel Efficiency HSSEQ: Carbon footprint, page 21
Carbon Footprint HSSEQ: Carbon footprint, page 21
Technology Creating Value Described by technologies applied in HSSEQ, page 15-22
Responsible Procurement Supplier management, page 12
Community Development Community, page 27-28
11

DRIVING CORPORATE SOCIAL RESPONSIBILITY


PERFORMANCE

ED/CEO
Hassan Assad Basma

Vice President, Chief Talent


Commercial and C SR e Officer and
Steering Committe
Risk Management Shared Services
Elias Michael Farah Madhusudanan
Madasery Balan

Vice President, Senior Vice


Corporate HSSEQ President,
Noval D’avila Corporate Affairs
Paredes Jonathan Edward
Duckett
Vice President, Head, OSV
Asset Maintenance Operations
and Operations Senior Vice John Bruinsma
Alvin Archibald President,
Strang Projects
Adriaan Petrus van de
Korput

SUB GROUPS
(Each Sub-Group to develop group
objectives, targets and reporting)

ENVIRONMENT SOCIETY
Scope Scope
• Fleet Initiatives • Health and Safety
• Energy Targets ECONOMIC Programme
• Waste and Emission Scope • Staff Welfare
• Green Technology • Corporate • Human and Labour
• ISO 14001 Programme • Finance Rights
• Legal • Community Services
• Compliance • Stakeholders
• Transparency
• Ethics
• Accountability

Integrated across operations


Corporate Social Responsibility Report 2012-2013

12

DRIVING CORPORATE SOCIAL RESPONSIBILITY


PERFORMANCE (cont’d)
Bumi Armada’s Corporate Social Responsibility (CSR) No non-conformance incidents of standards and
Steering Committee comprises senior management regulations were recorded during this reporting period.
representatives, supported by staff across our business
and functional units to execute initiatives and monitor For a list of certifications of our vessels, please refer to
performance of issues covered under the scope. The page 30.
committee meets on a quarterly basis and reports to
the CEO. Effective communication across operations
Our OSVs and FPSOs are managed centrally from
The CSR Steering Committee is responsible for assessing Malaysia via operational shore bases, supported by our
economic, environmental and social impacts of our in-house Fleet Management System unit. Bumi Armada
business and recommending areas for improvement. employs the Barber Ship Management System (BASS)
It is also responsible for raising awareness levels to coordinate information among over 1,300 crew
among our employees of the strategic importance members in more than 10 countries across our entire
of responsible and sustainable management. The fleet. All our vessels are connected to the internet via
committee developed Bumi Armada’s CSR Charter that satellite. This allows full ship-to-shore connectivity and
articulates our objectives and aspirations. communication for both our offshore crew as well as
our shore bases.
The committee reviews Bumi Armada’s material issues
and considers which are areas of focus to drive the Supplier management
most improvement yearly. The four focus areas for 2012 Suppliers play an essential role in delivering world-
to 2014 are fuel efficiency, environmental conservation, class services our clients expect. We seek to build
effective local content and capacity development. long-term relationships with reliable and capable
suppliers, who join us in our commitment to conduct
Our management approach to HSSEQ, people and business responsibly. Our Code of Procurement Ethics
community are explained from page 15 onwards. The (COPE) sets out expectations of our suppliers. We are
following describes elements of our management in the process of revising COPE to specify required and
approach that cuts across the issues: desired behaviour of our suppliers on legal, safety,
i) International standards and certifications environmental and human rights aspects.
ii) Effective communication across operations, onshore
and offshore Our Strategic Procurement team categorises our
iii) Supplier management suppliers based on their products and services they
provide and contract amount. All significant and new
International standards and certifications suppliers must complete the appropriate assessment
Bumi Armada Berhad’s policy is to comply with form with supporting documents. We intend to invest in
international standards, client’s contractual a computerised system to improve the process for our
requirements and respective countries’ local rules suppliers and our procurement team.
and regulations. This further helps the Company to
continually improve its management’s standards in all HSSE performance of contractors and subcontractors
of its business processes. are reviewed monthly as part of our regular HSSE
reporting. We perform inspection and audit visits at
The Company is certified to 
ISO 9001:2008, ISO suppliers’ offices and premises as and when necessary.
14001:2004 and OHSAS 18001:2007. Upon completion of each major project, we conduct
random periodic supplier performance appraisals on
Our vessels comply with MARPOL 73/78 and country the services rendered.
regulations wherever they operate.
13

DRIVING CORPORATE SOCIAL RESPONSIBILITY


PERFORMANCE (cont’d)
Bumi Armada CSR Charter

Introduction: Respect the rights of every individual we interact with


We are committed to becoming a truly responsible and promote a good working environment for our
business and aim to achieve our company goals in a employees and visitors.
fair, ethical, and responsible manner, whilst making
every effort to positively impact the communities and Responsibility for the Corporate Social Responsibility
environments in which we work. To achieve this, the (CSR) Charter:
Company will strive to positively impact the following The Bumi Armada Corporate Social Responsibility
key areas: Charter is the duty of each and every member of staff
to implement and maintain. Those holding supervisory,
Our Impact on the Environment: management or other senior positions have additional
We will act responsibly towards the environment and and particular responsibilities to ensure the effectiveness
seek to mitigate or reduce our impact; with the ultimate of its application and the commitment of all staff and
aim of conducting our business in a sustainable way. others to it.

Our Impact on Society: Feedback and Contact Information:


At all times act as a good corporate citizen and We welcome feedback from any section of the community.
participate in the social development of communities If you have a comment regarding our Corporate Social
where our operations are based, and showing sensitivity Responsibility Charter or the company, please contact
and respect to the local laws, culture and customs. us at: bumiarmada@bumiarmada.com

Our Respect for People:


We will look beyond minimum legal requirements in
terms of improving the personal health, wellness and Hassan Basma
safety protection of our staff and visitors. Executive Director/Chief Executive Officer

In line with our HSSE Policy, we will act in a way that


develops our employees’ skills, encourages them to be
proactive in health and safety, and promotes awareness
of health and safety objectives.
Corporate Social Responsibility Report 2012-2013

14

AWARDS AND RECOGNITION


Our awards and recognitions reflect the efforts our employees and business associates have
invested to achieve and maintain high standards.

Bumi Armada: Only Malaysian firm in The Sustainability Yearbook 2014

2012
Each year RobecoSAM, the leading sustainability specialists serving EMEPMI Marine Contractor
investors, identifies global sustainability leaders in each sector. Out of of Q1 2012
48 eligible firms in the Energy Equipment & Services universe, 7 were Awarded by Exxon Mobil
selected for inclusion. The other 6 firms are Baker Hughes Inc, AMEC PLC,
Schlumberger Ltd, Technip SA, Halliburton Co and SBM Offshore NV. Armada Tuah 10 – HSE
Performance Award (for
Separately, Bumi Armada has been included in the Dow Jones SustainabilityTM operations without lost
Emerging Markets Index since its launch in February 2013.
time injury and downtime in
2011)
2013 Awarded by PetroVietnam
Technical Services Corporation
(PTSC) Marine Vietnam

Armada Tuah 23 – EMEPMI


Marine Vessel of Q1 2012
(in recognition of reliable
Dow Jones Emerging Market Indices
operation)
Launched in February 2013, the DJSI (Emerging Markets) identifies sector
Awarded by Exxon Mobil
sustainability leaders. Out of 800 eligible companies in the universe, 69
were selected. A review was conducted in September 2013. Bumi Armada
was selected in both reviews. M.V. Venture Tuah 1 – Marine
HSSE & Operational Excellence
Gold Award – 2013 Safety Recognition for Hurt-free Operations 2011
Exceeding 100,000 Man-hours awarded to Bumi Armada Awarded by Talisman Energy
Navigation Sdn Bhd
Awarded by Exxon Mobil M.V. Venture Tuah 2 – Marine
HSSE & Operational Excellence
Contractor of the Quarter Award (in recognition of safety and 2011
reliable operations of Bumi Armada Berhad) Awarded by Talisman Energy
Awarded by Exxon Mobil
M.V. Armada Tuah 10 –
Excellent HSE Performance in Providing Supply Vessel 2012 Marine HSSE & Operational
Awarded by PetroVietnam Technical Services Corporation (PTSC) Marine Excellence 2011
Awarded by Talisman Energy
Full Year Goal Zero Days in 2012
Awarded by Sarawak Shell Berhad

Armada Tuah 24 – Vessel of the Quarter Award (in recognition of


safety and reliable operations)
Awarded by Exxon Mobil

M.V. Armada Tuah 10 – Excellent HSE performance in 2012 (for


operations without LTI and downtime in 2012)
Awarded by PetroVietnam Technical Services Corporation (PTSC) Marine

M.V. Venture Tuah 2 – Marine HSSE & Operational Excellence


Award 2012
Awarded by Talisman Energy
15

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ)
Integrated HSSEQ Approach handling processes, increase data integrity and generate
Our health, safety, security and environment meaningful reports more efficiently. Implementation is
performance reflects the quality of our operations and rolled out in phases and is ongoing.
deliverables to our customers. Our quality management
system incorporates HSSE performance. Implementing Operational Excellence across all global
operations – within business units, projects and vessel
We adopt a holistic Total Quality Management (TQM) fleets – is a strategic priority for 2013 and beyond. This
based approach, and are ISO 9001:2008 certified. 12 initiative is fully supported by our Board of Directors,
drivers are identified to enable continuous improvement, and assisted by external consultants led by the former
including improving the quality management system chairman of the Australian industry safety regulator,
itself. Audit findings and progress of programmes are NOPSEMA. Operational Excellence drives a high-
presented to senior management team annually to performance culture of continuous improvement and
identify improvement actions. the consistent adoption of world-class systems, with a
non-negotiable emphasis on HSSEQ integrity.
As part of our pursuit for continuous improvement, we
introduced two information management improvements The external consultants evaluated steps Bumi Armada
in late 2012: i) Vista, a document management system; needs to take to be positioned at the forefront of the
and ii) Cintellate, a centralised HSSEQ information industry. HSSEQ then took the analysis forward by
management system with data input management conducting workshops with each business unit to
and powerful analysis tools. Both systems are web- develop targeted action plans. Monthly progress reports
based, enabling access across our global operations. are submitted to the management team.
The improvements are aimed to streamline document

MANAGEMENT
REVIEW
COST OF + BUSINESS
POOR QUALITY GROUP
INTERNATIONAL
QUALITY COMMITTEE AUDIT & OPERATING
STANDARDS
& ROQ COMPLIANCE PROCEDURES
CERTIFICATION
PROGRAMME PROGRAMME DEVELOPMENT

QUALITY
MANAGEMENT CUSTOMER
QUALITY SYSTEM VENDOR &
IMPROVEMENT
STAFF FEEDBACK
WORKSHOPS INCLUDING 12 PROGRAMME
PROGRAMME DRIVERS FOR
IMPROVEMENT

QUALITY HSEQ
QA/QC
LEADERSHIP INTEGRATED
INTERNAL RESOURCES
& AWARENESS SOFTWARE
AUDITOR DEVELOPMENT
TRAINING SYSTEM
PROGRAMME PROGRAMME INTRANET
QUALITY SITE
COMMUNICATIONS
& E-LEARNING
Corporate Social Responsibility Report 2012-2013

16

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ) (cont’d)

The Corporate HSSEQ department supports the Group on achievable and measurable goals and best possible
in achieving HSSEQ objectives through a comprehensive results from available resources, while simultaneously
development model. executing structural improvements.

HSSEQ Objectives Our HSSEQ strategic framework translates our


a. Finance and Business Improved focus in general development model into clearly defined key plans and
and development of major new initiatives to meet objectives to achieve HSSEQ excellence. It clarifies
industry and business needs how individual Business Units efforts, as well as sites,
b. Customers Improved customer survey preparedness vessels and sub-contractors, are linked, thus providing
and responsiveness. Best practices in the industry a connected overview that reflects the need for every
shared within the organisation and with the industry individual to play their part. The framework includes
c. Systems and Procedures Improved management meaningful target measures and a sequence of activities
systems, through better reporting, analysis and that help ensure focus to successfully execute our
communication HSSEQ strategy.
d. People Development Improved HSSEQ culture
HSSEQ progress and statistics are reported to the Risk
HSSEQ Development Model Board Committee quarterly (see page 8-10 also). Each
Every organisation deserves and needs a clear strategy project employs a HSSEQ Manager, who reports to the
to develop continuously on their HSSEQ issues. However, HSSEQ focal person of the business unit, who in turn
many get caught between wading through a to-do list feeds information to the HSSEQ committee.
and creating a suitable strategic plan. The Bumi Armada
HSSEQ development model defines a clear path to close Initiatives are described in respective sections in the
gaps against industry best practices quickly by focusing following pages.

BUMI ARMADA HSSEQ DEVELOPMENT MODEL

BU Action
Plan (OFS)
LOCAL/INTERNATIONAL

BU Action

HSSEQ EXCELLENCE
Responsibility & Plan (OSV)
VISION MISSION Accountability
REQUIRES

BU Action Sites Vessels


Objectives Plan (T&I) Sub-
POLICIES CORE & Targets Action contractors
VALUES Plan BU Action
KPI’s Plan (FPSO)

3 YEARS PLAN Management BU Action


review Plan
(Projects)

BAB HSSEQ STRATEGIC FRAMEWORK


PILLARS SUPPORT JOURNEY
Safety Positive Attitude Occupational Robust International Learning & Integrated Environmental Quality Security
Management Programme Health Management Standards & Development Management Programme Management Management
Management Programme Regulations System

• Global • Hazardous • Medical • Company • ISM Code • Training & • CINTELLATE • Energy • QA • Crises
Awareness Act Examination Policies • ISPS Code Development • VISTA Management • QC Management
• Visible Management & Surveillance • Company • ISO 9001 • E-learning • EDMS • GHG • DOC • Travel
Leadership • Behavior • HIRADC Management • ISO 14001 • Induction • MICROSITE • Awareness CONTROL Management
• HSSEQ Team Audit Process • OH Diseases System • OSHAS 18001 • Seminars • Reporting • COEC • Security
• Safety Drivers • Training & Manual • ISO 50001 • Lunch & Learn • Waste • AUDIT Standard
• Lesson Learnt Development • Corporate • ISO 14064 Management • Business
• Stop Work SOPs • Safety Case • Improvement continuity
Authority • Business • DJSI Targets
• Incentive Unit SOPs • GRI
Scheme • Law
(International
& Local)
17

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ) (cont’d)

Health, Safety and Security


Company Core Value: Safety Mindset
“Proactively safeguard yourself, others, the environment and
assets.”

Safety Vision
“Our vision is to deliberately and conscientiously work
together with all stakeholders to eliminate all risk of injuries to
personnel, damage to property and harm to the environment
in all aspects of what we do, build or operate.”

Safety Mission
“Our mission is to build a zero tolerance culture throughout
our value chain such that safety mindset becomes a way of
life.”

All workers should be able to return home safely,


everyday, to their loved ones. In doing so, we build trust Total recordable injuries rate (TRIR)
with local communities and attract the best people to & Lost time injuries rate (LTIR)
work with us. Our customers gain confidence in our Injury and lost time per million man-hours
ability to protect their assets and employees.
Lost Time Injury Rate (LTIR)
Influence across the value chain Total Recordable Injuries Rate (TRIR)
Safety performance is an explicit criterion in selecting
our suppliers. In the same way, we aim to be the 2.5
preferred supplier for our customers.
2
We track health and safety incidents on our work
premises for employees, contractors and visitors alike.
Employees and contractors attend the same safety 1.5
briefings and meetings on work sites. 1.01 1.29 1.31

1
Management approach
Frequency

The HSSEQ Development Model on page 16 illustrates


our management approach. It comprises rigorous 0.5 0.425
management systems for hardware evaluation, 0.253 0.213 0.188 0.44
0.37
reporting and learning mechanisms, targeted training
0 0
and initiatives to imbue a pre-emptive, pro-active safety
culture. 2009 2010 2011 2012 2013

Our management system addresses both personal and We registered lost time injuries in 2012 and 2013,
process safety. Process safety relates to eliminating resulting in an increase from our 2011 performance
potential risks, and also readiness to address a potential with zero lost time injuries. The LTIF and TRCF for
incident. Risk assessment such as HAZOP, HAZID, QRA, 2013 remained close to 2012 with a marginal increase.
MAE is conducted for each project. In 2013, there was a remarkable improvement in the
reporting process and level of reporting from the shore
Target: Zero harm to people bases to Corporate HSSEQ. This is due to improvements
in the Safety culture amongst the staff and crew. The
Data improved reporting contributed to higher LTIF and
Refer to page 4 for our 4-year safety performance summary. TRCF. bases to Corporate HSSEQ.
Corporate Social Responsibility Report 2012-2013

18

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ) (cont’d)

Safety culture their own errors and near misses. We foster such a
Where a safety culture operates, there is zero tolerance climate through leadership by example.
for hazardous conditions, unsafe practices, short cuts
that compromise safety, or non-compliance with safety All performance appraisals include a component
procedures. where employees have to cite examples on how they
demonstrated behaviour aligned to Bumi Armada’s core
The Bumi Armada Safety Culture Rules (BSCR) are values – one of which is safety mindset.
summarised in a simple and clear poster format to
ensure effective compliance for all employees and Weekly safety meetings are conducted on our
contractors. The BSCR is available on our website. All operating fleet to discuss near-miss incidents, accident
reported non-compliance incidents will be investigated investigations, job safety audits and safety problems
and consequential actions will be meted. encountered or anticipated.

Our safety culture is proactive. From the Master to Safety campaigns and training are rolled out to promote
the trainee on board our vessels, from tea ladies to safety awareness and knowledge, across our fleet
management executives in our offices – we require all and offices. These activities are developed through
individuals to actively spot hazards and unsafe practices continuous studies done by the HSSEQ team leaders and
both in their own jobs and elsewhere on board vessels committee to analyse weaknesses and identify ways to
or in
the offices. Once identified, these hazards can
be improve HSSEQ performance.
eliminated or mitigated. We encourage staff to report
19

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ) (cont’d)

Safety inspections In 2013, Bumi Armada experienced three security


Regular safety inspections are a component of our incidents in the Gulf of Guinea, offshore Nigeria.
management system to ensure vigilance and compliance The area has witnessed a surge in piracy in recent
to international standards. All operations have an audit years, posing an increased security risk for energy
plan developed to meet these objectives. sector companies operating in the region. All security
incidents were resolved in a timely manner without any
Our safety inspections are designed to minimise major health and safety impact to our employees or
risks of oversight. For example, on board the FPSOs, disruption to the continuity of operations. Following the
superintendents will conduct a weekly formal safety incidents, Bumi Armada has increased those mitigation
performance inspection of a designated area to identify measures in place whilst continuing our security review
hazards, unsafe conditions, unsafe work habits or and improvement programmes.
employees with weak safety attitudes. As a secondary
layer of inspection, the FPSO Offshore Installation As part of our security strategy and as a derivative of
Manager will make a weekly safety performance operating in higher risk environments, Bumi Armada
observation during actual work operations, evaluating has been required to utilise both unarmed and armed
the thoroughness of the superintendent’s safety private and governmental security agency personnel,
programme and the extent of employee understanding to support its operations worldwide. Such an option is
and implementation. Further, once every two months, only taken following a bespoke risk assessment process,
the Company’s health and safety representatives will where ‘force protection’ is deemed to be an industry
conduct a job-site safety performance inspection. norm and reflective of best practice. All armed security
we appoint are done so through a rigorous review and
Security procurement process and are required to abide by and
Bumi Armada is committed to ensuring the protection of be trained on the ‘Voluntary Principles on Security
our personnel and assets, both tangible and intangible. and Human Rights’ and where relevant the Montreux
Our protection strategy incorporates management Document on Private Military and Security Companies.
systems for shipboard security as per the International
Ship & Port Facility Security (ISPS) code. This includes Health and hygiene
appointing Company Security Officer’s (CSO’s) and Bumi Armada employs an in-house occupational health
Ship Security Officer’s (SSO’s) to oversee security on all physician and a hygienist to evaluate our practices
offshore vessels and facilities, in addition to corporate relating to the health and well-being of our employees.
security management personnel, utilised to determine Annual health hazard identification audits are conducted
best way forward strategy across our global footprint to spot non-conformities against good practices for
of assets. ergonomics, lighting, noise and hygiene conditions.

We benchmark our practices with the industry’s best We track sick leave (onshore) and the number of
practices. Security measures are based on systematic employee visits to clinics (offshore) as a measure of the
geographical risk analysis, as imposed on all projects health of our employees.
and countries in which we operate.
We provide gymnasiums and fitness corners on board
Our commitment to local content and local partners, our vessels. More information on offshore well-being
and close collaboration with our clients, the oilfield can be found on page 26.
operators, plays an important role in ensuring the
proactive analysis of security threats and the enactment To support our employees’ general wellness, we also
of sustainable security measures. This stakeholder organise regular health awareness activities such as
approach is critical to the ability of the Company to talks and articles on serious diseases such as cancer
operate successfully in ostensibly austere environments, awareness, exercise and healthy eating.
in accordance with local laws and cultures.
Corporate Social Responsibility Report 2012-2013

20

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ) (cont’d)

Environment Spills and discharges


Bumi Armada aims to minimise environmental impacts Spills refer to unplanned discharges of hydrocarbons.
from our activities. It is important that we protect the Produced water refers to water that arises as a
well-being and livelihoods of local communities where byproduct from oil and gas production. Produced water
we operate. We are also keenly aware of climate change is first treated to reduce concentrations of components
concerns surrounding the energy and offshore industry, to harmless levels as set out in international legislation.
and seek to contribute positively where possible. Our As treated produced water still contains traces of oil, its
report is focused on our material environmental issues. discharge is strictly controlled.

Influence across the value chain


Spills (number of)
We state our preference for suppliers who demonstrate
robust and effective environmental management
systems. Onboard Overboard

Bumi Armada keeps abreast of innovations to implement 5


economically viable options in our vessels and thus
reduce direct fuel consumption for our customers.
4
Management approach
The HSSEQ Development Model on page 16 illustrates 3
our overall environment management approach.
2
Targets:
- Zero spills or unplanned discharges
- 5% year-on-year reduction in fuel per man-hour 1
- 5% year-on-year reduction in electricity consumption
per employee for our offices
- 5% year-on-year reduction in water consumption per 0
employee for our offices 2010 2011 2012 2013

We have limited influence on fuel consumption of our We recorded zero overboard spills in 2012. There were
vessels, as explained under Carbon footprint section. three incidents of overboard spills in 2013. Total oil in
To improve our environmental performance within our produced water overboard was 760.1 ppm and 1,209.2
control and raise employee awareness, we set year on ppm for 2012 and 2013 respectively.
year targets for our offices to reduce our electricity,
water and paper consumption. An action plan was One incident was a spill of produced water overboard,
developed and rolled out across our offices and fleet to with oil quantity of 70 litres (non-reportable spill based
achieve our targets. on regulation of operation in Nigeria). A full review and
engineering study was conducted to improve the design
Data for prevention of future spills.
Refer to page 4 for our 4-year environment performance
summary. Performances of individual environmental
aspects are discussed under respective headers.
21

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ) (cont’d)

The second incident was due to intermittent oil Vessels are required to provide detailed daily fuel
sludge spillage overboard of quantity less than one monitoring reports which are closely monitored. In
litre. All equipment used were checked and restored 2012, we installed fuel metering systems on board for
systematically, to prevent reoccurrence. our vessels to improve our fuel measurement process.
Data is submitted to HSSEQ department on a monthly
The third incident was due to a pinhole leak in the basis.
offtake hose, resulting in a spill of 0.3 litres. The
defective section was removed. The hose was tested Further, we also developed a target to reduce fuel
before use, with weekly visual inspection to monitor its consumption per man-hour by 5% each year.
condition.
Scope 1 emissions reported increased from 472 to
Bumi Armada monitors oil concentrations in produced 529 thousand tonnes of CO2 equivalent. This is due to
water at all production facilities on a daily basis and increased activity and an increased number of vessels
manages the oil/ water separation process to meet their operating in 2013, including Armada Sterling which
discharge compliance. consumed more fuel than other FPSO vessels. To monitor
fuel efficiency, we set operational greenhouse gas
To monitor content of oil in bilge water, Bumi Armada KPIs normalised by man-hours for fuel and electricity.
fitted internationally approved “oily water separators” Further, we improved the accuracy and completeness of
on our OSVs. This is in line with MARPOL 73/78 our greenhouse gas inventory in 2013.
requirements. In the event the oil content in the water
exceeds 15 ppm, the water will be automatically Refrigerants are a significant source of Scope 1
redirected back to the holding tank and recycled for greenhouse gas emissions. We are working on complete
further cleaning. These oily water separators also and accurate reporting of refrigerants in order to
record the amount of water discharged, its content, and determine a target and develop appropriate reduction
the date and time of discharge. plans for each business unit. We aim to report data on
refrigerants in the next CSR report.
Carbon footprint
We report Scope 1 emissions relating to direct fuel Electricity consumption per
consumption of vessels for transparency (refer to page 4). employee (MWh/headcount)
Contracts for vessel charters are structured to allow our
customers the flexibility to determine the tasks and job
5.00
scope for the vessel. The extent in which we can reduce
emissions arising from fuel consumption is thus limited.
In the same way, our influence to minimise flaring is 4.00
limited. The variance in tasks also presents difficulties
in normalising emissions to monitor efficiency.
3.00
We aim to improve efficiency through a variety of 1.98 1.63 1.80 1.46
initiatives such as: 2.00

• Optimising vessels to operate on economical speed


while sailing. 1.00
• Anchoring vessels using standby buoys provided at
specific offshore locations by oil majors. 0
• If there are no standby buoys on location, then vessels
steam on one main engine while waiting for further 2010 2011 2012 2013
instructions from offshore installations or drilling
rigs.
• Instilling habits to shut down winches and generators
when not in use
Corporate Social Responsibility Report 2012-2013

22

HEALTH, SAFETY, SECURITY,


ENVIRONMENT & QUALITY (HSSEQ) (cont’d)

Electricity consumption is identified as an area where regularly sent for lab testing. These technologies
we are able to reduce our carbon footprint. We have eliminate or minimise the need to procure water supplies
implemented electricity saving measures including and generation of plastic waste. Environmentally
simple practices such as setting air-conditioning conscious behaviours such as minimising water usage
thermostats at 25 degrees Celsius and purchasing onboard for showers are also encouraged.
energy efficient computers. Our collective efforts have
resulted in a decrease of electricity consumption per Waste products are segregated on board, and are
headcount. then collected by an appointed local contractor. Non-
hazardous waste (glass, metal, paper and plastic) is
In addition, we have also equipped our offices with state- removed for recycling where possible. All waste is
of-the-art video conferencing technology to reduce air managed in compliance with MARPOL 73/78 and local
travels. regulations where applicable. We are in the process of
improving our data collection systems for waste and will
Environment protection aim to report data on waste generated in the next CSR
We achieved our target to reduce water consumption per report.
employee by 5% every year, registering a 36% reduction
from 2012 to 2013. Water consumption per employee Environmental awareness
in 2012 and 2013 were 9.63 and 6.20 m3 per headcount Campaigns and initiatives developed to achieve
respectively. environmental targets also instill environmental
awareness.
Our vessels are also equipped with reverse osmosis
technology that produces potable water from seawater. In 2012 and 2013, Bumi Armada held more than
Vessels are also fitted with water purification systems ten events, including talks from experts on future
to produce water fit for drinking. Water samples are environmental challenges in the industry, and care for
the marine environment.
23

PEOPLE

Bumi Armada is committed to creating a working


environment in which our people can grow and attain Onshore workforce
the highest standards of professional excellence
and integrity. We believe when we take care of our Malaysian Regional International
employees’ well-being and lead with a meaningful
vision, our employees are motivated to contribute their
best. A well-trained crew is also critical in executing our
operations responsibly.

Influence across the value chain 602, 216, 164, 52,


In order to maintain our diversity and inclusivity, we offer 74% 26% 20% 6%
job opportunities to the local communities wherever we
operate. We describe our practices in support of local
content policies under Community section on page 27.

Management approach
Our corporate and fleet human resource teams aims to
Offshore new hires for 2013
meet the needs of our employees and organisation, by:
Malaysian Regional International
• Mapping human resource demands to support our
strategy for growth, including technical and business
development training
• Designing recruitment strategies
• Designing a competitive compensation system that 195,
builds on our core values and rewards performance 152, 310, 42%
• Ensuring engagement platforms are effective to foster 33% 67%
communication and build trust 115,
• Ensuring employees feel safe, well taken care of and 25%
motivated

Underlying our human resources activities is a strong


commitment to equal opportunities, in order to
attract the best talent across gender and cultures to We report new hires for offshore staff as they are
serve our global operations. Our Employee Handbook employed on a contract basis.
clearly indicates “Employment decisions are based on
merit and business needs, and not on race, colour,
citizenship status, national origin, ancestry, gender,
sexual orientation, age, weight, religion, creed,
physical disability, marital status, veteran status,
political affiliation, or any other factor protected by
law. Wherever possible we will endeavour to reflect a
country’s diversity in our staff strength.”

Data
Refer to page 4 for our 4-year performance summary.

A breakdown of reported indicators in accordance to


GRI requirements can be found in our appendices on
page 31.
Corporate Social Responsibility Report 2012-2013

24

PEOPLE (cont’d)

We increased our total headcount in 2013, resulting in


2013 Gender Diversity (% of women) a drop in the turnover rate of our permanent onshore
employees.
40
33% Despite the contractual nature of offshore activities,
we seek to forge long-term working relationships with
30 our offshore staff, most notably with 19 of our offshore
staff working for Bumi Armada for the past 10 years.
20
16%
13% Employee engagement survey
10
75%
0 61%
58%
Malaysia Oil Bumi Armada: Bumi Armada: 60%
and Gas: Women Women
Managerial in Senior in Total 45%
Average* Management Workforce
and
Management 30%

* Source: Talentcorp and PwC - Diversity in the workplace


15%
leaflet

A diverse workforce is an extension of our commitment 0%


to excellence and a culture of teamwork, where the 2010 2012
richness of different ideas and perspectives are
leveraged to deliver business value. We are committed
to develop the local workforce where we operate, We engage a specialist human capital consultancy to
including in Nigeria and Turkmenistan (see page 27- conduct our biennial Employee Engagement Survey.
28 on local content initiatives). We are proud that our Employees may respond to the survey anonymously. The
gender diversity figures are one of the best amongst survey results are benchmarked against the industry for
the industry in the region, and will continue to create an our analysis.
environment supporting equal opportunities.
The survey covers six areas:
i) People (Senior Leadership, Co-workers, Customers
Turnover rate and Valuing People)
ii) Work,
40 iii) Total Rewards,
iv) Company Practices,
v) Opportunities, and
30 vi) Quality of Life.

19% 17% 18% 14% The level of employee engagement has increased from
20
58% in 2010 to 61% in 2012, registering a marginal
positive increase. The biggest improvements are
10 Employee Promise, Recognition and Valuing People.
The participation rate is approximately 75%.
0 Training hours per employee increased in 2012 and
2013, in line with Bumi Armada’s objective for increased
-10 investment in developing our employees. 2013 registered
a slight dip from 2012 as a number of courses were held
2010 2011 2012 2013
25

PEOPLE (cont’d)

in-house in 2012, resulting in accessible training for Bumi Armada has developed six customised
more employees. Bumi Armada will continue to provide developmental training modules, in collaboration with
and support relevant training opportunities. Malaysian Maritime Academy (ALAM). Experienced
Masters and Chief Engineers, together with a
psychologist, identify and develop candidates for the
Training hours per employee
programme.

25 This programme is the first of its kind in the OSV sector


in Malaysia.
20
Cadet sponsorship
To develop a pool of nautical and engineer officers,
15 we offer scholarships for Diploma in Nautical Studies
12.7 (DNS) and Diploma in Marine Engineering (DME) at
11.7
the Sarawak Maritime Academy (SMA) and Malaysian
10 Maritime Academy (ALAM). Upon completion of their
6.5 7.9
course and relevant certification, these cadets are
5 absorbed into our workforce.

Dynamic Positioning (DP) training


0 In response to identifying a shortage of specially
2010 2011 2012 2013 trained Dynamic Positioning (DP) officers, we initiated
a DP training programme together with the Malaysian
Maritime Academy (ALAM) in 2007.
Capacity building
Bumi Armada provided funding and resources to
Capacity building is a key thrust in our human resources
establish the first DP training programme in Malaysia.
management. In Malaysia, the scramble for talent was
Bumi Armada has also commenced sending Officers
driven by the government’s Economic Transformation
to attend DP courses at C-MAR Asia training centre in
Programme which attracted many new foreign and
Singapore.
local players. The market demand for seafarers is large
resulting in a continuous shortage around the world.
Corporate capacity building
Offshore capacity building STAR GDP
SOLAP/SELAP Cadetship DP 2013 0 10
2012 25 7
2013 26 10
Since inception 25 38
2012 22 – 98
Since inception 57 143
Corporate Leadership Programme – STAR
The STAR programme is our in-house leadership
Offshore Leadership Programme – SOLAP/SELAP/
development programme to increase our aspiring
Conversion Programme
leaders’ bench strength. High performers from each
The Senior Officers Leadership Assessment Programme
department were selected to undergo four experiential
(“SOLAP”), Senior Engineers Leadership Assessment
learning modules over 12-15 months, learning to lead
Programme (“SELAP”) and Conversion Programme
self, people, business and change. Selection took place
were developed to offer a clear career path for capable
in 2012, with 2013 focused on delivering and refining
officers while honing their leadership skills.
the programme before the next batch is recruited.
Corporate Social Responsibility Report 2012-2013

26

PEOPLE (cont’d)

Graduate Development Programme (GDP) At the beginning of each year, supervisors hold a private
The Graduate Development Programme was designed to meeting with each employee to evaluate performance for
attract and retain outstanding graduates from Malaysian the previous year, and also discuss expectations for the
and overseas institutions each year. Candidates are coming year. Areas for improvement and development
placed on a rotational training programme over a needs are identified so that supervisors can support
24-months period. They are placed on a development employees to meet their objectives. The exercise offers
plan designed to build functional and business skills. an opportunity for employees to discuss the evaluation
The assigned manager of each graduate also fulfills the and also their aspirations with their supervisors.
role of a mentor to the graduates.
In 2012 and 2013, 100% of our employees have
International exposure undergone this process.
Our exchange programme was developed to promote
integration with colleagues from our overseas offices Offshore well-being
(including JV partners). It encompasses a job posting Working at the seas can be demanding. We pay attention
varying from two weeks to one year in our head office to the needs our offshore crew have.
in Malaysia. The programme covers cultural, systematic
and process aspects of our organisation and individuals Facilities on vessels are designed to ensure that our
selected are from various disciplines. Since its inception crew gets adequate rest. The minimum amount of rest
in 2009, we have hosted colleagues from Astrakhan, each rank and vocation requires is stipulated.
Australia, China, India, Nigeria and the United Kingdom.
All vessels have internet connectivity for our crew to
Our Malaysian employees are similarly given overseas maintain their relationships with their family.
opportunities to gain global exposure and a deeper
understanding of our business. All FPSOs are fitted with gymnasium. OSVs have fitness
corners as they are smaller in size and thus unable to
Performance appraisals accommodate gymnasium facilities.
Performance appraisals are conducted yearly to foster
a performance culture aligned to our core values. Every Our fleet human resource managers consult our crew on
employee has to describe behaviour where he/she the duration of cycles they wish to work on board. The
demonstrated adherence to each of Bumi Armada’s core consultation is conducted over email, and registered a
values. This ensures our values are embedded in our 100% response rate over the reporting period.
daily activities, and serve as a compass in achieving our
business goals. To enhance the level of support for our crew, a formal
crew grievance process Crew Access to Reliable and
Easy Solution (CARES) was implemented in 2012.

Work-life balance
Our employees enjoy a good work-life balance. We
extend a certain amount of flexibility, including
allowing employees to report to work between 8 am-10
am according to their personal commitments.

Remuneration
To realise our vision it is imperative that there
is a
strong alignment between shareholders, management
and employees. In line with this, shares are offered to
all employees in service working in various offices and
sites, and ESOS was offered to the management team.

We engage compensation specialists to benchmark


our remuneration every year against the industry
globally and regionally, to ensure our employees are
compensated competitively.
27

COMMUNITY

Bumi Armada has the responsibility to ensure our


activities have a positive impact on the local communities
in and around areas in which we operate.

Influence across the value chain


Many emerging economies are oil and gas producing
states where these resources can contribute effectively
to local socio-economic development. Many countries
are introducing requirements for “local content” such
that local content is a strategic issue that intertwines
the development of the host community to the oil and
gas firms.
Management approach
There is no single and universally agreed purpose We believe when the communities prosper, so do we.
of local content, but IPIECA members agreed the
following definition to guide IPIECA’s work in this Prior to operating in a new location, our project
area: team works closely with our human resources and
procurement teams to evaluate how we can integrate
Local content is the added value brought to a host local workforce development and procurement, while
nation (and regional and local areas in that country) giving top consideration to the safety of the operation.
through the activities of the oil and gas industry.
This may be measured (by project, affiliate, and/or Besides employment and procurement, we seek to
country aggregate) and undertaken through: build local business partnerships where possible and
operationally desirable.
• Workforce development:
- employment of local workforce; and In our community development efforts, we seek to
- training of local workforce. find out the needs of the community so that we can
• Investments in supplier development: contribute financially, in kind or in time meaningfully.
- developing supplies and services locally; and Our community efforts focus on the underprivileged,
- procuring supplies and services locally. education and health.
Corporate Social Responsibility Report 2012-2013

28

COMMUNITY (cont’d)
Developing competency
We develop training programmes in all locations we with a dance performance and a school tour,
operate to transfer knowledge to local communities. concluding with a friendly netball match between
our employees and the teachers. The event was
We seek ways to make long-term and sustainable an opportunity for our employees to build bonds
contributions to the communities. For example, in 2012, among themselves and forge a deeper connection
we built our first diesel-electric multi-purpose platform with causes that Bumi Armada supports.
support vessel (“MPSV”). In doing so, we opened a new
sector in Malaysia with the aim of increasing Malaysia’s Bumi Armada contributed RM5,000 to help finance
profile in the global offshore sector. the school activity “Linus Learning Corner”. Bumi
Armada’s employees made personal contributions
Building local partnerships amounting to RM678 to purchase books relevant
We partner with local organisations which help us. to the primary school level, and also donated used
This began in 2008 with the establishment of Century books to add to the school’s collection.
Bumi Limited in Nigeria, a joint venture (“JV”) with Century  
Energy Group. In Indonesia we have established PT Armada
Gema Nusantara with the Gema Group and in India with the Data
Forbes and Company Limited and Shapoorji Pallonji Group.
Community contributions (RM)
Community development
We believe that in every community, there are groups
of marginalised individuals who benefit from financial 500,000
aid to give a boost to their standard of living. Employee 402,989
volunteerism further aids our organisation’s empathy 400,000
and sensitivity towards communities where operate, and
also provides an excellent platform for our employees
to bond over a meaningful cause. 300,000
244,772
205,150
Investing in the future of our youth
200,000
We believe that investing in the education of
our children and youth is crucial to ensure that
79,372
they will be able to seek better opportunities for 100,000
themselves and their communities.

SK Kelapa Sawit No. 5, Subis, a school at the 0


outskirt of Miri, was one of the educational 2010 2011 2012 2013
institutes we supported in 2013.
We contributed to 100% of operations where we have
The school is located about 1.5 hours from our more than 15 permanent onshore employees.
Miri Office by car. There are about 29 teachers
and staff, and 100 students. 45 students are Our community contributions in 2012 doubled from 2011,
staying as boarders as their homes are far away largely due to two contributions. One is a RM107,000
from the school. contribution to a 5-year carbon conservation project for
Forest Research Institute Malaysia (FRIM) to protect five
ARMADA: hectares of prime forest with more than 150 species of
A – Amanah (Trust) plants. This translates to more than 3,900 tonnes of
R – Rajin (Diligent) CO2 equivalent conserved by the plot of land. The other
M – Motivasi (Motivation) is a sponsorship for NRG Battle of RM98,172. The NRG
A – Ahklak (Character) Battle is an annual global event for top youth talents to
D – Disiplin (Discipline) work on challenging cases. The 2012 event, which was
A – Aktif (Active) held in Malaysia, had both sponsored teams addressing
the possibility of utilising gas hydrate as an alternative
A thoughtful gesture: the school creatively instilled energy source. It was an interesting topic given that
motivational reminders at the learning corner, Malaysia has a significant amount of gas deposits.
with our Company name as the acronym. During the challenge, CEO Mr Hassan Basma made time
to give the teams moral support and advice, reminding
About half of the staff from Miri and Labuan them that youth talents like them are the future of the
offices visited the school. The morning began oil and gas industry.
29

ABOUT THIS REPORT


This is Bumi Armada’s third Corporate Social Notes to Environment and Social Data
Responsibility (CSR) Report.
All data are compiled in accordance to GRI Guidelines.
Reporting Scope
Data is a​ ggregated across activities​from ​subsidiaries​ Environment
and joint ventures in operation.​This includes our head
office, domestic and overseas offices and shore bases 1. Greenhouse gas emissions from 2012 onwards
and vessels. are calculated using Greenhouse Gas Protocol
(GHG Protocol) Emission Factors from cross sector
Indicators and initiatives which are partial and relate to tools (August 2012) and Intergovernmental Panel
certain branches are labelled accordingly. on Climate Change (IPCC) Guidelines for National
Gas Inventories as advised by our external carbon
Reporting Period accounting consultant.
This report describes activities over two financial years,
January 2012 to December 2013. GHG Protocol: Auxiliary engine marine diesel oil,
flaring, transportation, refrigerants, purchased
Reporting Cycle electricity, air travel. IPCC: Main engine (propulsion)
Biennial marine diesel oil

Reporting Framework Prior to 2012, we used carbon emission figures from


This report is prepared in accordance to Global Department for Environment, Food and Rural Affairs
Reporting Initiative (GRI) G4 Core Guidelines. The / the Department for Energy and Climate Change
report also aims to reflect consideration of AA1000 (Defra/DECC).
principles of inclusivity, materiality and responsiveness;
Scope 3 emissions are derived from employee air
International Petroleum Industry Environmental
travel. Emissions are calculated by grouping actual
Conservation Association (IPIECA) reporting guidance;
distance flown Domestic, Short-haul International
and GRI Oil & Gas Sector Disclosure.
and Long-haul International categories. Distance
flown are provided by travel agents.
Feedback
We welcome your feedback on how we can improve 2. Water consumption excludes offices where water
our sustainability performance and reporting. Let us utilities are included in the rent, or where a small
know at: number of our employees share an office with
our joint venture partners. The scope of water
Jonathan Edward Duckett consumption figures is thus narrowed to offices in
Senior
Vice President, Corporate Affairs Kemaman, Labuan, Miri, Singapore for 2012 & 2013
Bumi Armada Berhad, Level 21, Menara Perak, 24, Jalan and including Astrakhan for 2013. Headcount figures
Perak, 50450 Kuala Lumpur for purpose of our water consumption target and
Email: sustainability@bumiarmada.com performance are based on employee numbers in
these offices at the year end.

Social

3. Health & Safety KPI rates are normalised over a million


man-hours for lagging indicators and 200,000 man-
hours for leading indicators based on IMCA practice.

4. Health & Safety statistics include employees and crew


who work on our operating vessels. Bumi Armada
also reviews safety statistics by contractors from our
service providers.

5. Turnover rates refer to permanent staff only.

6. Local refers to each site or country of operation.

7. Senior Management refers to individuals with job


grade of General Manager or above.
Corporate Social Responsibility Report 2012-2013

30

APPENDICES
Vessel Certifications
As at 31 Dec 2013

ISM The ISM Code provides an international standard SMS The Safety Management System (SMS) is a management
for the safe management and operation of ships and for system to manage all aspect of safety throughout an
pollution prevention. organisation.

ISPS The International Ship and Port Facility Security Code


(ISPS Code) is a comprehensive set of measures to enhance
the security of ships and port facilities.
Business Segment Area of Operations Vessel Names ISM ISPS

OSV East Malaysian Fleet Armada Goodman Yes Yes


    Armada Iman Yes Yes
    Armada Mutiara 2 Vessel complies to BAN SMS
    Armada Mutiara 3 Vessel complies to BAN SMS
    Armada Mutiara 4 Vessel complies to BAN SMS
    Armada Salman Yes Yes
    Armada Topman Yes Yes
    Armada Tuah 100 Yes Yes
    Armada Tuah 21 Yes Yes
    Armada Tuah 23 Yes Yes
    Armada Tuah 26 Yes Yes
    Armada Tuah 300 Yes Yes
    Armada Tuah 303 Yes Yes
    Armada Tuah 304 Yes Yes
    Armada Tuah 305 Yes Yes
    Armada Tuah 6 Yes Yes
    Armada Tuah 8 Yes Yes
    Armada Tuah 80 Yes Yes
    Armada Tugas 2 Yes ISPS complied to BAN SMS
    Armada Tugas 3 Yes ISPS complied to BAN SMS
OSV West Malaysian Fleet Armada Aman Yes Yes
    Armada Firman Yes Yes
    Armada Tuah 10 Yes Yes
    Armada Tuah 24 Yes Yes
    Armada Tuah 25 Yes Yes
    Armada Tuah 9 Yes Yes
    Venture Tuah 1 Yes Yes
    Venture Tuah 2 Yes Yes
OSV International Fleet Armada Firman 2 Yes Yes
    Armada Firman 3 Yes Yes
    Armada Hibiscus Yes Yes
    Armada Tuah 102 Yes Yes
    Armada Tuah 104 Yes Yes
    Armada Tuah 105 Yes Yes
    Armada Tuah 301 Yes Yes
    Armada Tuah 302 Yes Yes
    Armada Tuah 306 Yes Yes
    Armada Tuah 82 Yes Yes
    Armada Tuah 84 Yes Yes
    Armada Tuah 85 Yes Yes
    Mahakam Vessel Complies to BAN SMS  
OSV Nigerian Fleet Armada Tugas 4 Vessel Complies to BAN SMS  
    Armada Tuah 83 Yes Yes
    Armada Tuah 81 Yes Yes
    Armada Tuah 22 Yes Yes
    Armada Tuah 20 Yes Yes
    Armada Tuah 108 Yes Yes
    Armada Tuah 107 Yes Yes
    Armada Tuah 101 Yes Yes
FPSO Nigeria Armada Perkasa ISPS and MODU Code Certified
Nigeria Armada Perdana ISPS and MODU Code Certified
India Armada Sterling ISPS and MODU Code Certified
Vietnam Armada TGT 1 ISPS and MODU Code Certified
T&I Asia Armada Hawk Yes Yes
Congo Armada Condor Yes Yes
Turmekistan Armada Installer ISM and ISPS certifications were not implemented for Installer as ves-
sel is a barge which is not self-propelled
31

APPENDICES (cont’d)
Supplementary Data
2013 2012
Employment Type Female Male Total Female Male Total
Contract 97 380 477 45 247 292
Permanent 171 170 339 162 167 329
Tot al 268 550 818 207 414 621

Region Female Male Total Female Male Total


Malaysia 228 374 602 176 275 451
Asia (excluding Malaysia) 37 158 195 28 118 146
Africa 1 9 10 0 13 13
Oceania 2 4 6 2 3 5
South America 0 5 5 0 4 4
Europe 1 1 2
Total 268 550 818 207 414 621

New hires 83 167


Rate of new hires 10% 27%

New hires by age group


< 30 years old 20 24% 44 26%
30-49 years old 45 54% 109 65%
≥50 years old 18 22% 14 8%
Total 83 100% 167 100%

New hires by gender


Male 65 78% 126 75%
Female 18 22% 41 25%
Total 83 100% 167 100%

New hires by region


Malaysia 68 82% 117 70%
Asia (excluding Malaysia) 14 17% 42 25%
Africa 0 0% 3 2%
Oceania 1 1% 3 2%
South America 0 0% 2 1%
83 100% 167 100%

Turnover 113 110


Turnover rate 14% 18%

Turnover by age group


< 30 years old 24 21% 13 12%
30-49 years old 66 58% 76 69%
≥50 years old 23 20% 21 19%
Total 113 100% 110 100%

Turnover by gender
Male 79 70% 80 73%
Female 34 30% 30 27%
Total 113 100% 110 100%

Turnover by region
Malaysia 73 65% 75 68%
Asia (excluding Malaysia) 32 28% 32 29%
Africa 3 3% 2 2%
Oceania 3 3% 0 0%
South America 2 2% 1 1%
Total 113 100% 110 100%

Employee category by gender Female Male Female Male


Senior management 9% 91% 10% 90%
Managers 19% 81% 18% 82%
Executives 42% 58% 43% 57%
Non-executives 60% 40% 62% 38%
Total 33% 67% 33% 67%

Employee category by age group < 30 years old 30-49 years old ≥50 years old < 30 years old 30-49 years old ≥50 years old
Senior management 0% 51% 49% 0% 62% 38%
Managers 2% 79% 18% 3% 81% 16%
Executives 29% 67% 4% 28% 65% 7%
Non-executives 31% 64% 6% 26% 70% 3%
Total 17% 68% 14% 17% 70% 13%

Employee category by nationality No. of employees Local Expat No. of employees Local Expat
Senior management 99 30% 70% 73 36% 64%
Managers 245 51% 49% 185 57% 43%
Executives 402 67% 33% 302 70% 30%
Non-executives 72 90% 10% 61 92% 8%
Total 818 60% 40% 621 64% 36%

Ratio of basic salary Men: Women Men: Women


Senior management 9:1 7:1
Managers 4:1 4:1
Executives 5:1 1.4 : 1
Non-executives 0.7 : 1 0.6 : 1
Total 4:1 3:1
Corporate Social Responsibility Report 2012-2013

32

APPENDICES (cont’d)
Glossary of Technical Terms
BASS Barber Ship Management System, the information technology system used in fleet management

CO2 Carbon dioxide

CSR Corporate social responsibility

DP Dynamic positioning, a computer-controlled system to automatically maintain a vessel’s position


and heading by using its propellers and thrusters. The dynamic positioning level (e.g. DP2, DP3)
indicates the degree and redundant systems built into the safety system to remove redundancy or
failure of the system

EOR Enhanced oil recovery is a generic term for techniques used for increasing the amount of crude
oil that can be extracted from an oil field. It is sometimes referred to as “improved oil recovery”
or “tertiary recovery”

EPC Engineering, procurement and construction is a form of contracting arrangement whereby the
contractor will design the product, procure the necessary materials and construct it, either in-
house or by subcontracting part of the work

ESOS Employee share option scheme established for the grant of options to eligible employees of our
Group and our Executive Directors to subscribe for new Shares in the Company

FPSO Floating production, storage and offloading system, an offshore system comprising a large tanker
or similar vessel equipped with a high-capacity production facility. FPSOs are normally moored
at the bow to the seabed to maintain a geo-stationary position, and serve as a fixed point for
risers to connect subsea wellheads to on-board processing/production, storage and offloading
systems. Produced oil is periodically offloaded to smaller shuttle tankers, which transports the oil
to onshore facilities for further processing

GRI Global Reporting Initiatives is a non-profit organisation that promotes economic, environmental
and social sustainability. GRI provides all companies and organisations with a comprehensive
sustainability reporting framework that is widely used around the world

HSSEQ Health, safety, security, environment and quality

IMCA International Marine Contractors Association. The international trade association representing
offshore, marine and underwater engineering companies promoting good practices, particularly
in the areas of HSE standards, quality and efficiency and technical standards.

IMCO International Maritime Consultative Organisation. Codes which relate to international shipping,
particularly regarding safety and marine pollution.

IOC International oil company, refers to large private or public oil companies that have upstream,
midstream and downstream capabilities, such as Royal Dutch Shell plc and The Exxon Mobil
Corporation

IPIECA The global oil and gas industry association for environmental and social issues. When IPIECA
was set up in 1974 the acronym stood for the International Petroleum Industry Environmental
Conservation Association. In 2002, recognising that this no longer accurately reflected the breadth
and scope of the association’s work, IPIECA stopped using the full title

ISO International Organisation for Standardisation

ISPS Code International Ship and Port Facility Security Code. A comprehensive set of measures to enhance
the security of ships and port facilities. The ISPS Code is implemented through chapter XI-2 Special
measures to enhance maritime security in the International Convention for the Safety of Life at Sea
(SOLAS), 1974
33

APPENDICES (cont’d)

ISM The ISM Code provides an international standard for the safe management and operation of ships
and for pollution prevention:
• To ensure safety at sea
• To prevent injury or loss of life
• To avoid damage to the environment and to the ship

KPI Key performance indicator

LTI Lost time injury, a work-related injury or illness that renders the injured person unable to return to
work on the next working day after the day of the injury or illness

MARPOL International Convention for the Prevention of Pollution From Ships,1973 as modified by the
73/78 Protocol of 1978. MARPOL was designed to minimise pollution of the seas, including dumping, oil
and exhaust pollution.
Its stated object is: to preserve the marine environment through complete elimination of pollution
by oil and other harmful substances and the minimisation of accidental discharge of such
substances.

NOC National oil company, O&G company owned or controlled by a national government, typically
having special rights or access to its local market

OFS Oilfield services, refers to services required to maximise the extraction of hydrocarbons in the
marginal field and EOR business

OSV Offshore support vessel, refers to any vessel, boat or ship whose main function is to support
the offshore O&G operations, which includes movement of equipment or structures, as well as
transportation of materials and personnel

PAP Positive Attitude Programme

Riser Pipe or assembly of pipes used to transfer produce from the seabed to the surface facilities or to
transfer injection fluids, control fluids or lift gas from the surface facilities to seabed

SMS Safety Management System. A management system to manage all aspect of safety throughout an
organisation. It provides a systematic way to identify hazards and control risks while maintaining
assurance that these risk controls are effective

SOLAS International Convention for the Safety of Life at Sea. An international treaty protecting the safety
of merchant ships in the world

TRIF Total recordable injuries frequency

TQM Total quality management

USD or US United States Dollar, the lawful currency of the US


Dollar
Corporate Social Responsibility Report 2012-2013

34

GRI G4 CONTENT INDEX

GENERAL STANDARD DISCLOSURES


Standard Disclosure Standard Disclosure Title Page Number (or Link)
STRATEGY AND ANALYSIS
G4-1 Statement from the most senior decision- Page 2-3
maker of the organisation about the relevance
of sustainability to the organisation and
the organisation’s strategy for addressing
sustainability
ORGANISATIONAL PROFILE
G4-3 Name of the organisation Inside front cover page
G4-4 Primary brands, products, and/or services Inside front cover page
G4-5 Location of organisation’s headquarters Inside front cover page, Back cover page
G4-6 Number and names of countries where the Inside front cover page
organisation operates
G4-7 Nature of ownership and legal form Inside front cover page
G4-8 Markets served Inside front cover page, AR Page 110-112
G4-9 Scale of the organisation Inside front cover page, Page 4, 31, AR Page 84
G4-10 Workforce statistics Page 31
b. All permanent employees are full-time
employees.
e. The work performed by workers described is
not substantial.
f. In our industry, the variations is largely
dependent on the contract requirements.
G4-11 Percentage of total employees covered by 0%
collective bargaining agreements
G4-12 Description of organisation’s supply chain Page 12 Supplier management and Influence
across the value chain for each section (Page 17,
Page 20, Page 23, Page 27)
G4-13 Significant changes during the reporting In line with the company’s expansion,
period the number of vessels in operation have
significantly increased. The amount of activity
may be reflected to a certain extent on fuel
consumption or revenue, though these are also
dependent on the precise nature of contracts.
G4-14 Application of precautionary approach or Bumi Armada adopts a precautionary approach,
principle as described by proactive and preventive
measures adopted to address material issues.
G4-15 Externally developed economic, environmental Page 12 International standards and
and social charters, principles, or other certifications, Page 29 Reporting Framework
initiatives to which the organisation subscribes
or which it endorses.
G4-16 Memberships of associations (such as industry Bumi Armada Berhad is a corporate member
associations) and national or international of the Federation of Public Listed Companies
advocacy organisations Berhad (FPLC).

In addition, Bumi Armada Navigation serves as


a member of the Malaysian Oil & Gas Services
Council (MOGSC) and Malaysia Shipowners’
Association (MASA).
35

GRI G4 CONTENT INDEX (cont’d)

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES


G4-17 Coverage of entities in relation to Page 29
organisation’s consolidated financial
statements or equivalent documents
G4-18 Process for defining report content and Aspect Page 10
Boundaries
G4-19 Material Aspects identified Page 10
G4-20 Aspect Boundaries within the organisation for All entities. Disclosure is clearly indicated under
each material Aspect specific indicators which are more material to
certain business units.
G4-21 Aspect Boundaries outside the organisation The industry is aware of the interconnectedness
for each material Aspect of sustainability issues to internal and external
stakeholders, with stringent regulations. As
such, aspects are material to all stakeholders
outside the organisation, including customers,
regulators and host communities.
G4-22 Restatements None
G4-23 Significant changes from previous reporting None
periods in the Scope and Aspect Boundaries
STAKEHOLDER ENGAGEMENT
G4-24 List of stakeholder groups engaged by the Page 6
organisation
G4-25 Basis for identification and selection of Page 6
stakeholders with whom to engage
G4-26 Organisation’s approach to stakeholder Page 6
engagement
G4-27 Key topics and concerns raised through Page 6-7
stakeholder engagement
REPORT PROFILE
G4-28 Reporting period Page 29
G4-29 Date of most recent previous report Page 29
G4-30 Reporting cycle Page 29
G4-31 Contact point for questions regarding the Page 29
report or its contents
G4-32 In accordance’ option Page 29
G4-33 Policy and current practice with regard to We recognise the role of external assurance
seeking external assurance of the report and reviews in enhancing the credibility of
information reported.
GOVERNANCE
G4-34 Governance structure of the organisation Page 8-12, AR Page 15, 28-39
ETHICS AND INTEGRITY
G4-56 Organisation’s values, principles, standards Page 5, 12-13
and norms of behaviour such as codes of http://www.bumiarmada.com/78_84_84/Web/
conduct and codes of ethics WebPage/Our-Core-Values/Our-Core-Values.
html
Corporate Social Responsibility Report 2012-2013

36

GRI G4 CONTENT INDEX (cont’d)

G4-57 Report the internal and external mechanisms Page 5


for seeking advice on ethical and
lawful behavior, and matters related to
organisational integrity, such as helplines or
advice lines.
G4-58 Internal and external mechanisms for Page 5
reporting concerns about unethical or http://www.bumiarmada.com/93_100_96/Web/
unlawful behaviour, and matters related to WebPageImgTop/Whistle-Blowing/Corporate-
organisational integrity, such as escalation Governance.html
through line management, whistle-blowing
mechanisms or hotlines
SPECIFIC STANDARD DISCLOSURES
Standard Disclosure Standard Disclosure Title Page Number (or Link)
CATEGORY: ECONOMIC
ASPECT: ECONOMIC PERFORMANCE
G4-DMA Generic Disclosures on Management Approach Page 8-12, AR Page 42-53
G4-EC1 Direct economic value generated and Page 4, AR 80-81, 89, 116-117
distributed
ASPECT: MARKET PRESENCE
G4-DMA Generic Disclosures on Management Approach Page 11-12, 23-26, 27-28
G4-EC6 Proportion of senior management hired from Page 29, 31
the local community at significant locations of
operation
ASPECT: INDIRECT ECONOMIC IMPACTS
G4-DMA Generic Disclosures on Management Approach Page 11-12, 23-26, 27-28
G4-EC8 Significant indirect economic impacts, Page 24-26, 28
including the extent of impacts
ASPECT: PROCUREMENT PRACTICES
G4-DMA Generic Disclosures on Management Approach Page 11-12
G4-EC9 Proportion of spending on local suppliers at Figures omitted due to commercial sensitivity.
significant locations of operation
CATEGORY: ENVIRONMENTAL
ASPECT: ENERGY
G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-16, 20-22
G4-EN7 Reductions in energy requirements of Page 21
products and services
ASPECT: WATER
G4-DMA Generic Disclosures on Management Approach Page 15-16, 20, 22
G4-EN8 Total water withdrawal by source Page 4, 22
ASPECT: EMISSIONS
G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-16, 20-22
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope Page 4, 21
1)
G4-EN16 Energy indirect greenhouse gas (GHG) Page 4, 21
emissions (Scope 2)
G4-EN17 Other indirect greenhouse gas (GHG) Page 4, 21
emissions (Scope 3)
G4-EN18 Greenhouse gas (GHG) emissions intensity Page 21
G4-EN19 Reduction of greenhouse gas (GHG) emissions Page 4, 21-22
37

GRI G4 CONTENT INDEX (cont’d)

ASPECT: EFFLUENTS AND WASTE


G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-16, 20, 22
G4-EN22 Total water discharge by quality and Page 4, 20
destination
G4-EN24 Total number and volume of significant spills Page 4, 20
ASPECT: PRODUCTS AND SERVICES
G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-16, 20-22
G4-EN27 Extent of impact mitigation of environmental Page 21
impacts of products and services
ASPECT: COMPLIANCE
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9, 11-12, 15-16
G4-EN29 Monetary value of significant fines and total There are no significant fines or sanctions
number of non-monetary sanctions for non- during the reporting period.
compliance with environmental laws and
regulations
ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT
G4-DMA Generic Disclosures on Management Approach Page 11-12
G4-EN32 Percentage of new suppliers that were Page 12
screened using environmental criteria
ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS
G4-DMA Generic Disclosures on Management Approach Page 5-7, 11-13
G4-EN34 Number of grievances about environmental None.
impacts filed, addressed, and resolved
through formal grievance mechanisms
CATEGORY: SOCIAL
SUB-CATEGORY: LABOUR PRACTICES AND DECENT WORK
ASPECT: EMPLOYMENT
G4-DMA Generic Disclosures on Management Approach Page 11-12, 23-26
G4-LA1 Total number and rates of new employee hires Page 4, 23, 31
and employee turnover by age group, gender
and region
ASPECT: OCCUPATIONAL HEALTH AND SAFETY
G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-19
G4-LA5 Percentage of total workforce represented All employees (offshore and onshore) are
in formal joint management-worker health represented in management-worker health and
and safety committees that help monitor safety committees.
and advise on occupational health and saftey
programmes
G4-LA6 Type of injury and rates of injury, occupational Page 4, 17-18
diseases, lost days, and absenteeism, and total
number of work-related fatalities, by region
and by gender
G4-LA7 Workers with high incidence or high risk of Page 19
diseases related to their occupation
ASPECT: TRAINING AND EDUCATION
G4-DMA Generic Disclosures on Management Approach Page 11-12, 23-26
G4-LA9 Average hours of training per year per Page 4, 25, 31
employee by gender, and by employee
category
Corporate Social Responsibility Report 2012-2013

38

GRI G4 CONTENT INDEX (cont’d)

G4-LA11 Percentage of employees receiving regular Page 26


performance and career development reviews,
by gender and by employee category
ASPECT: DIVERSITY AND EQUAL OPPORTUNITY
G4-DMA Generic Disclosures on Management Approach Page 11-12, 23-24
G4-LA12 Composition of governance bodies and Page 24, 31, AR 28-39
breakdown of employees per employee
category according to gender, age group,
minority group membership, and other
indicators of diversity
ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN
G4-DMA Generic Disclosures on Management Approach Page 11-12, 23
G4-LA13 Ratio of basic salary and remuneration of Page 31
women to men by employee category, by
significant locations of operation
ASPECT: SUPPLIER ASSESSMENT FOR LABOUR PRACTICES
G4-DMA Generic Disclosures on Management Approach Page 11-12
G4-LA14 Percentage of new suppliers that were Page 12
screened using labour practices criteria
G4-LA15 Significant actual and potential negative Page 12
impacts for labour practices in the supply
chain and actions taken
ASPECT: LABOUR PRACTICES GRIEVANCE MECHANISMS
G4-DMA Generic Disclosures on Management Approach Page 5-7, 11-13, 23
G4-LA16 Number of grievances about labour practices We take all feedback from our employees
filed, addressed, and resolved through formal seriously and do our best to address them.
grievance mechanisms There were no grievances lodged during the
reporting period.
SUB-CATEGORY: HUMAN RIGHTS
ASPECT: NON-DISCRIMINATION
G4-DMA Generic Disclosures on Management Approach Page 11-12, 23
G4-HR3 Total number of incidents of discrimination There were no incidents during the reporting
and corrective actions taken period.
ASPECT: SECURITY PRACTICES
G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-19
G4-HR7 Percentage of security personnel trained in Page 19
the organisation’s human rights policies or
procedures that are relevant to operations
ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT
G4-DMA Generic Disclosures on Management Approach Page 11-12
G4-HR10 Percentage of new suppliers that were Page 12
screened using human rights criteria
ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS
G4-DMA Generic Disclosures on Management Approach Page 5-7, 11-13
G4-HR12 Number of grievances about human rights None.
impacts filed, addressed, and resolved
through formal grievance mechanisms
39

GRI G4 CONTENT INDEX (cont’d)

SUB-CATEGORY: SOCIETY
ASPECT: LOCAL COMMUNITIES
G4-DMA Generic Disclosures on Management Approach Page 11-12, 27-28
G4-SO1 Percentage of operations with implemented Page 28
local community engagement, impact
assessments, and development programmes
ASPECT: ANTI-CORRUPTION
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9
G4-SO4 Communication and training on anti- Page 5, 8-9, 12
corruption policies and procedures
ASPECT: ANTI-COMPETITIVE BEHAVIOR
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9
G4-SO7 Total number of legal actions for anti- There were no significant fines or sanctions
competitive behavior, anti-trust, and monopoly during the reporting period.
practices and their outcomes
ASPECT: COMPLIANCE
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9
G4-SO8 Monetary value of significant fines and total There were no significant fines or sanctions
number of non-monetary sanctions for non- during the reporting period.
compliance with laws and regulations
ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY
G4-DMA Generic Disclosures on Management Approach Page 11-12
G4-SO9 Percentage of new suppliers that were Page 12
screened using criteria for impacts on society
ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY
G4-DMA Generic Disclosures on Management Approach Page 5-7, 11-13
G4-SO11 Number of grievances about impacts on None.
society filed, addressed, and resolved through
formal grievance mechanisms
SUB-CATEGORY: PRODUCT RESPONSIBILITY
ASPECT: CUSTOMER HEALTH AND SAFETY
G4-DMA Generic Disclosures on Management Approach Page 11-12, 15-19
G4-PR1 Percentage of significant product and service Page 17
categories for which health and safety impacts
are assessed for improvement
G4-PR2 Total number of incidents of non-compliance Page 12
with regulations and voluntary codes
concerning the health and safety impacts of
products and services during their life cycle,
by type of outcomes
ASPECT: PRODUCT AND SERVICE LABELING
G4-DMA Generic Disclosures on Management Approach Page 6
G4-PR5 Results of surveys measuring customer Page 6
satisfaction
ASPECT: COMPLIANCE
G4-DMA Generic Disclosures on Management Approach Page 5, 8-9, 11-12
G4-PR9 Monetary value of significant fines for There were no significant fines or sanctions
non-compliance with laws and regulations during the reporting period.
concerning the provision and use of products
and services
Bumi Armada Berhad Port Harcourt, Nigeria Astrakhan, Russia
Level 21, Menara Perak Century Bumi Limited Bumi Armada Caspian, LLC
24, Jalan Perak (c/o Century Energy Services Limited) Kirova Street 1
50450 Kuala Lumpur 96A, Elelenwo Close 3rd Floor
Malaysia GRA Phase 1 414000 Astrakhan
Tel: +603 2171 5799 Port Harcourt, Rivers State Tel: +7 (8512) 29 29 01
Fax: +603 2163 5799 Nigeria Fax: +7 (8512) 29 29 04
Email: bumiarmada@bumiarmada.com Tel: +234 (0) 84-465116/7/8
Fax: +234 (0) 84-231502 Jakarta, Indonesia
Miri, Malaysia PT. Armada Gema Nusantara
Lot 2395, Block 4 Mumbai, India Alamanda Tower 20th Floor – unit F
MCLD, Jalan Bulatan Park Forbes Bumi Armada Offshore Limited Jl. T.B. Simatupang
P.O. Box 1228 Suite 7, Tower 3, Equinox Business Park Kav. 23-24 Cilandak Barat
98000 Miri, Sarawak (Peninsula Techno Park) Jakarta Selatan 12430
Malaysia Off. Bandra Kurla Complex Indonesia
Tel: +6085 661 118 LBS Marg, Kurla (West) Ph.: +62 21 2960 3000
Fax: +6085 652 955 Mumbai - 400 070, Maharashtra, India Fax: +62 21 2960 3030
Tel: +91 (22) 4263 0157
Labuan, Malaysia Fax: +91 (22) 6121 5179 Perth, Australia
Block C, No. A11, Lot 1211 Bumi Armada Australia Pty Ltd
Manmohan’s Warehouse Luanda, Angola Level 1, 85 Havelock Street,
Jalan Patau-Patau, P.O.Box 80226 Angoil Bumi JV Lda West Perth
87012 Wilayah Persekutuan Labuan Belas Business Park WA 6005, Australia
Malaysia Torre Cunene 205, Tel: +61 (0) 864 65 3100
Tel: +6087 412 327 2° andar, Talatona, Luanda, Angola Fax: +61 (0) 864 65 3199
Fax: +6087 413 801 Mobile: +244 222 020 596
Texas, US
Kemaman, Malaysia Ashgabat, Turkmenistan Armada Blue, LLC
Lot 13840 Armada Marine Contractors Registered Address:
Jalan Penghiburan, Chukai Caspian Pte Ltd c/o Capitol Corporate Services, Inc
24000 Kemaman, Terengganu Suite 202, Level 2 800 Brazos, Suite 400
Malaysia “Diamond International” Austin, Texas 78701
Tel: +609 8510 100 Business Center
Fax: +609 8510 111 Andalyp Street (1958) * 15 London, UK
Ashgabat 744005 Bumi Armada UK Limited
Singapore Turkmenistan Portland House, Bressenden Place
Bumi Armada (Singapore) Pte Ltd Tel: +993 12 945 990/946 911 London, SW1E 5RS, UK
1 Fusionopolis Walk Fax: +993 12 947 198 Tel: +44 (0) 0207 869 8026
#08-02 Solaris South Tower Fax: +44 (0) 0207 869 8001
Singapore 138628 Turkmenbashi, Turkmenistan
Tel: +65 6643 5060 Armada Marine Contractors Accra, Ghana
Fax: +65 6861 6628 Caspian Pte Ltd Bumi Armada Ghana Limited
77, Magtymguly Street No 22, Third Close
Lagos, Nigeria 745000, Turkmenbashi Airport Residential Area Extension
Century Bumi Limited Turkmenistan (Opposite Lavender Lodge)
Plot 21, Prince Adelowo Adedeji Street Tel: +993 243 72644 Accra, Ghana
Off Admiralty Way Tel: +233 543 992395
Lekki Phase 1, Lagos
Nigeria
Tel: +234 (0) 1 2715 374; 2719 586
Fax: +234 (0) 1 2717 573

www.bumiarmada.com

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