Re-Evaluated Governance Structure on Human Rights
Meets every fortnight to provide overall direction. Comprises five senior directors.
Meets on weekly basis
Chairperson: Group Managing Director
Members: Chief Financial Officer, Managing Director SDO, Chief Human Resources Officer, and SDP Sustainability Advisor
Meets twice a week
Chairperson: Chief Financial Officer
Project Manager: Chief Risk Officer
Members: PLC Members and Functional Heads
In July 2021, the BSC adopted a special Terms of Reference to monitor the ongoing assessment and continuous improvement plan to address the resolution of labour issues. The BSC is supported by a two-tier management team in undertaking the assessment and continuous improvement plan. The first of these is the Steering Committee (SC) chaired by the GMD, which meets weekly and the second is a Working Group (WG) chaired by the Chief Financial Officer, which meets at least twice a week and comprises seven separate workstreams that are led by members of the PLC or functional heads. By demonstrating the commitment of SDP’s senior management and its direct involvement in the initiatives being deployed, thus putting heavier emphasis on sustainability within formal performance management targets, we have already effected transformative behavioural change.
In addition, key structural changes have been made to ensure a dedicated focus on worker welfare as well as to ensure continued compliance with ILO and sustainability standards. As of January 2022, we have appointed 40 fulltime dedicated Site Safety and Sustainability Officers (SSSO), to assist and support our Strategic Operating Units (SOUs) with managing safety and sustainability activities and initiatives on the ground, with a particular focus on human rights matters. The new officers are tasked with managing overall documentation, providing on-site support for operations compliance monitoring, and setting out actionable immediate next steps in managing any safety and sustainability concerns or issues should it arise.
The new Head of Social Welfare & Services will report to the Chief of Upstream Business Support, an experienced individual who has been appointed to this role, effective 1st April 2022 to sustain the transformational changes that have been instituted in Upstream Malaysia.
This team will be responsible for overseeing the implementation of policies and procedures related to the well-being and safety of workers, ensuring that day-to-day upstream operations comply with internationally recognised best practices.
Diagram: New structure of Upstream Malaysia focussing on workers’ welfare
Additionally, to emphasise a zero-tolerance approach, we have taken stern and swift action against those who did not adhered to the company’s policies. This is particularly important as consequence management and accountability will ensure a shift in culture.
Driving ESG agenda at different levels
Ethics and integrity[GRI 3-3, 205-2]
SDP is committed to conducting business professionally, with integrity and in compliance with the national laws of the countries in which we operate. SDP has a zero-tolerance policy on all forms of corruption. Our business activities are guided by SDP’s Code of Business Conduct (COBC), a handbook that spells out the standards of behaviour expected of SDP Group directors and employees, and where applicable, vendors and business partners. It also outlines our anti-corruption and no-gift policies.
In 2020, the internal COBC and vendor COBC were revised and updated as part of our Anti-Corruption Compliance Programme. In 2020 and 2021, over 13,600 executive and non-executive employees received relevant training on the COBC across our upstream and downstream operations globally. Refresher trainings will be conducted every two years. Vendors are also included in the trainings under the Vendor COBC outreach.
SDP’s Whistleblowing Policy provides guidance to stakeholders reporting violations against procedures and raising concerns on any wrongdoings they may observe in the Group without fear of retaliation. Grievance channels are also available on the ground for workers to raise concerns.
Alignment with the MCCG
In 2021, we revised the Board Sustainability Committee’s Terms of Reference to reflect the updated Malaysian Code on Corporate Governance (MCCG). The MCCG was updated to better align with globally-recognised best practices and standards and included requirements for strengthened board oversight and the integration of ESG considerations.