CORPORATE SOCIAL RESPONSIBILITY REPORT 2007 … · CORPORATE SOCIAL RESPONSIBILITY REPORT 2007 . ... • EUROPE - EASA ... following the opening of a new workshop building

CORPORATE SOCIAL RESPONSIBILITY REPORT 2007

Published in June 2007 Copyright © HAESL 2007

Contents

Page I Company Profile 1 II Director and General Manager’s Statement 2 III HAESL Environmental, Health & Safety Policy 3 IV HAESL Environmental, Health & Safety Committee 4 V Environmental - Energy 5

VI Environmental – Recycling & Others 8

VII Health & Safety 10 VIII Charitable & Community Programmes 12 Appendices

A 3-Year Environmental, Health & Safety Plan 2008-2010 16

B 3-Year Environmental, Health & Safety Plan 2005-2007 17

C HAESL’s Environmental, Health & Safety Database 19

Published in May 2008 Copyright © HAESL 2008 1

Company Profile

Hong Kong Aero Engine Services Limited,

(HAESL), provides civil aero engine repair and

overhaul services to Hong Kong and the region.

HAESL is a joint venture of 3 companies, Hong

Kong Aircraft Engineering Company Limited

(HAECO), a member of the Swire group (45%),

Rolls-Royce plc (45%), and SIA Engineering

Company Private Ltd (10%).

HAESL combines the strength of two of Asia's

most successful maintenance, repair and overhaul

companies with Rolls-Royce, bringing to the

partnership of technical knowledge and experience

of one of the world's most respected engineering

names.

HAESL commenced operations in 1997, taking

over the engine-overhaul operations of HAECO.

Located at Tseung Kwan O, in Hong Kong's New

Territories, the company operates from an

advanced US$120 million facility which is

equipped with one of the largest test cells in Asia -

capable of testing engines generating up to 130,000

pounds of thrust.

HAESL is a leading repair and overhaul facility for

the Rolls-Royce Trent 500, 700 and 800 and RB-

211 524 series of engines. Over 2,000 engines

among different types of engines have been

serviced by HAESL since 1997.

Supporting both internal arising and third party

customers, the company has an 86% in-house core

engine component repair capability. The

component repair business includes four Rolls-

Royce accredited Centres of Excellence (CoE); all

certified to Gold standard indicating world-class

performance. The CoEs support; fan blades, turbine

blades, HP/IP bearing supports and honeycomb

components, originating from across the Rolls-

Royce global network. A fifth CoE for supporting

stub shaft seal fin repairs is currently under

development.

Our mission is “To be recognized by our customers

as World Class and their aero engine service

provider of First Choice.” We are committed to be

an environmentally responsible company and

contributing towards sustainable development.

• MALAYSIA-DCA

• SRI LANKA- DCA

• THAILAND- DOA T

• INDONESIA- DGCA

• ROYAL BRUNEI-DCA

• SULTANATE OF OMAN-DGCAM

• BAHRAIN-CAA

• HKQAA ISO9001:2000

• HONG KONG-HKCAD

• EUROPE - EASA

• US-FAA

• SINGAPORE-CAAS

• SOUTH AFRICA-CAA

• TRANSPORT CANADA-TC

• CHINA- CAAC

• UAE-GCAA

• PAKISTAN-CAA

Approvals have been secured from regulatory authorities all around the world, including:

Published in June 2008 Copyright © HAESL 2008 2

Director and General Manager’s Statement

I am delighted to introduce HAESL’s 2007 Corporate Social

Responsibility (CSR) Report. The document provides an overview

of our various CSR initiatives, performance metrics and our

targets for the year ahead. Next year we plan to present our first

Sustainable Development Report using the guidelines of the

Global Reporting Initiative.

Although business activity increased again in 2007 we

maintained our trend of decreasing electricity consumption per

man hour. As our environmental focus continued to broaden,

“Green Office” guidelines and a range of biodegradable packaging solutions were introduced, our recycling

activities were expanded and we adopted sustainable food menus for company functions.

After a disappointing 2006 safety performance we set an ambitious 20% reduction target for lost time injuries

in 2007. Despite a promising start, a poor final quarter resulted in only a marginal improvement over the full

year. However, we remain firmly committed to achieving our health and safety goals and will invest the

necessary leadership, time, and resources to ensure our employees are not injured at work.

Following the introduction of our community program last year, the company organized quarterly volunteer

events in 2007 focusing on the elderly, children, education and the local habitat. Our volunteer base within the

organization has expanded and we have been able to support a wide range of charitable activities.

A successful, forward looking business needs to deliver more than strong financial results. It must be in touch

with public interest issues and be sensitive to its impact on the environment and the welfare of its staff. We

take these responsibilities very seriously and we are determined to make a positive difference.

Neil Glenn

Director & General Manager

May 2008


HAESL Environmental, Health & Safety Policy

HAESL, a joint venture company among Rolls-Royce plc, Hong Kong Aircraft Engineering Company Ltd and

SIA Engineering Company Private Ltd, commenced operations in January 1997, providing large aircraft

powerplant repair and overhaul services.

HAESL’s vision is to be recognized by our customers as worldclass and their aero engine service provider of

first choice. As part of this vision, HAESL is committed to corporate social responsibility and will include

environmental, health & safety (EHS) considerations in decision making and work practices to help protect

employees, the environment and the local community.

HAESL will conform to all applicable EHS legislative requirements but aim to achieve higher standards by

continuous improvement in EHS performance.

HAESL’s health and workplace safety goals are:

• No occupational related illnesses

• Continuous improvement in safety performance with the ultimate aim of “zero harm”.

HAESL will strive to reduce & minimise its overall impact on the environment through:

• Use of environmentally acceptable materials, equipment and technology

• Improving energy efficiency and conservation

• Natural resource conservation

• Pollution prevention

• Minimisation of waste

• Recycling materials

• Safe and responsible disposal of waste and effluent

• Minimisation of environmentally damaging emissions

EHS is the responsibility of all employees and everyone can make a lasting contribution to its success. Safety

standards should never be compromised to “get the job done”. The HAESL EHS Committee will define EHS

policy, set annual objectives, monitor compliance and performance, and maintain an open system of information

sharing and consultation with employees. Line managers will ensure that their staff are competent and adhere to

all EHS policies and procedures. Employees will receive education and training in order to raise awareness of

EHS issues and to ensure they clearly understand their individual EHS responsibilities. Employees are

encouraged to report significant safety hazards and concerns to management.

Neil Glenn Director & General Manager October 2006


HAESL Environmental, Health & Safety Committee

HAESL’s EHS activities are managed by a steering

committee and supported by a cross-department

work group. In 2007, the steering group committee,

which has been given the responsibility of

implementing HAESL’s EHS policy and

environmental, health & safety goals, was chaired

by our Project Director – Andy Robertson.

The EHS Committee comprises full time EHS

consultants and contractors together with

representatives from all the main departments

within the company. This combination successfully

combines specific expertise in EHS matters with a

detailed understanding of the operations of the

business. Issues covered by the Committee include

strategy and policy setting, project governance,

legislative compliance and reviews of performance

against current EHS objectives.

The EHS work group is made up of elected

representatives from various departments and is

chaired by EHS coordinators, meeting every 2

months. The work group assists the steering group

in the implementation of EHS policy.

HAESL’s Director & General Manager is a

member of HAESL’s EHS Committee and the

Swire Group Environmental Committee (SGEC).

The SGEC has been formalizing environmental

management practices across the Group and

information is collated and shared with members

through the Swire Pacific Environmental, Health

and Safety Database.

Fig. 1 Organisation Chart of HAESL EHS Committee

Human Resources Manager

Specialist Consultants

HAECO Consultant

Chairman Project Director

Stores Assistant Manager

Component Repair

Manager

Engine Overhaul Manager

EHS Coordinator

EHS Coordinator

EHS Coordinator

EHS Coordinator


Environmental – Energy

ENERGY CONSUMPTION

The main sources of energy consumption in

HAESL’s daily operation are electricity, town gas,

and aviation fuel. Electricity is primarily required for

powering machines, air-conditioning and lighting.

Town gas is heavily utilized in our staff canteen for

meal production. The other main energy source,

aviation fuel, is consumed during engine tests.

ELECTRICITY

2007 Performance

In 2007, our business activities grew substantially.

Our chargeable man hour (workload) increased by

8.74%, whilst we saw a 5.79% rise in electricity

consumption. As a result, our electricity consumption

per chargeable man hour further decreased by 3.45%.

A comparison of annual electricity consumption is

shown in Figure 2.

The reduction of electricity consumption per

chargeable man hour in 2007 was achieved due to

two key initiatives. The improvement and integration

of facilities building management system (BMS)

helped to improve energy efficiency and control the

electricity usage distribution in the phase 1 area of

the facility.

The installation of an additional water-cooled chiller

and the continued development of AHU condensate

recovery provided a further saving in electricity

consumption.

Challenge for 2008

The expansion of the operating area of the facility,

following the opening of a new workshop building

and the continued growth of the business impose a

challenge to contain electricity consumption during

2008.

Electricity Usage vs. Direct Chargeable Manhours

10000

12000

14000

16000

18000

20000

22000

24000

1999 2000 2001 2002 2003 2004 2005 2006 2007

Elet

rici

ty C

onsu

med

(100

0 kW

h)

10

15

20

25

30

35

Elec

trici

ty C

onsu

med

/ Ch

arge

able

Man

hour

s (k

Wh/

hr)

Electricity Consumed Electricity Consumed / Chargeable Man Hours

Fig. 2: Electricity Usage versus Direct Chargeable Man Hours from 1999-2007.

Electricity consumption had an increase of 5.79 %; the rate of electricity

consumption per chargeable man hours was reduced to 3.45% in 2007.

TOWN GAS

2007 Performance

Town gas is used solely for preparing meals in the

canteen and the gas consumption increased by 3.25%

in 2007. This is directly linked to the 9.23% increase

of meals prepared as our workforce expanded further.


Town Gas Usage vs. No. of Meal Consumed

800

900

1,000

1,100

1,200

1,300

1,400

1,500

1,600

2003 2004 2005 2006 2007

Tow

n G

as U

sage

(MJ)

4

5

5

6

6

7

7

8

Tow

n G

as U

sage

/ No

. of M

eal

Cons

umed

(MJ/

# of

mea

l)

Town Gas Consumed (1000 MJ) Town Gas Consumed / No. of meal consumed

Fig. 3: Town Gas versus Number of Meal Consumption from 2003 to 2007.

Town gas consumption slightly increased by 3.25 % but the rate of town gas

consumed per meal consumed achieved a 5.47% decrease in 2007.

Although absolute gas consumption is on the rise,

gas consumption per meal consumed has decreased

by 5.47%. This was achieved by reviewing the meal

preparation process flow and reducing the standby

period of stoves - from keeping a minimal flame and

turning off completely between shifts. Canteen staff

increased their awareness of town gas usage

reduction helping to use energy more efficiently

during meal preparation.

AVIATION FUEL

Aviation fuel consumption is closely related to

engine thrust, fuel efficiency and the number of each

type of engines tested. As engine testing

requirements specified by the Original Equipment

Manufacturer (OEM) - Rolls-Royce are mandatory,

we have little direct control over aviation fuel usage.

2007 Performance

In 2007, aviation fuel consumption increased by

5.63%. The prominent factor contributing to this

increase is an increase in the testing of our highest

thrust engines, the Trent 800. The output of Trent

800 engines increased by 56.5% compared to 2006.

Aviation Fuel Consumption vs. No. of Engines Tested

150

650

1150

1650

2150

2650

3150

3650

2002 2003 2004 2005 2006 2007

Fuel

Con

sum

ptio

n (k

L)

0

50

100

150

200

250

300

No. o

f Eng

ines

Tes

ted

fuel consumption (kL) No. of engines tested

Fig. 4: Number of engines tested versus fuel consumption from 2002 to 2007.

The aviation fuel consumption increased by 5.63% in 2007.

Challenge for 2008

It is difficult for the company to set up a meaningful

reduction target as fuel consumption is largely

dictated by test requirements and the overall engine

mix through the facility which we are unable to

control. However, we can exert some influence on

fuel consumption by avoiding test rejects and

minimizing engine trouble shooting by improving

initial production build quality. We have started

collecting data during trouble shooting to identify

repeat quality occurrences and will seek to eliminate

these faults during engine build rather than rectifying

in the engine test process.

CARBON FOOTPRINT

Carbon dioxide is directly released into the

atmosphere from the burning of town gas during

meal preparation, consuming aviation fuel during

engine test and the combustion of acetylene during

plasma spray and welding. Indirect emissions come

from the usage of electricity.

2007 Performance

Total CO2e per chargeable man hour decreased by

1% in 2007 while the absolute direct CO2e emission

increased by 6% and the indirect CO2e increased

significantly by 14%.


Objectives

Conservation of natural resources through improved energy efficiency

Reduction of indirect CO2 emissions by

introducing energy saving equipment, and improving the efficiency of existing equipment.

Reduction of direct CO2 emissions through

improved process quality, reducing engine R.T.S. (return to shop) and trouble shooting during engine testing.

2008 Targets

Electricity usage per direct chargeable man hour target at 15.4 kWh/ man hour in 2008.

Reduced aviation fuel usage by 1.1% of the

fuel used in 2007.

Town gas usage kWh/ meal produced target at 1.38 kWh in 2008.

2008 Enablers

Continue integration of facilities building management system to improve energy efficiency.

Installation of water heating solar panel to

provide hot water for canteen use.

Incentive scheme for town gas reduction in canteen.

Continuous engine test trouble shooting data

collection and analysis, identification of repeat quality occurrences and elimination of faults at engine builds instead of during engine test.

Energy saving 2008 CO2 Emission vs. Chargeable Man Hours

0

5000

10000

15000

20000

25000

2004 2005 2006 2007

CO

2 Em

issi

on (1

000k

g)

0

5

10

15

20

25

Tota

l CO

2e /

Cha

rgea

ble

Man

H

our (

kg/h

r)

CO2 Direct CO2 Indirect Total CO2 Emission / Chargable Man Hour

Fig. 5: Total CO2 emission versus chargeable man hours from 2004 to 2007.

Total CO2e increased by 9.88% due to business growth and the increase of

CO2e from electricity generation by CLP.

The increase in indirect emissions from HAESL’s

greater usage at its facility was compounded by the

9% overall increase in the levels of CO2 emissions

per kilowatt hour from our supplier China Light and

Power who consumed a greater proportion of coal,

and less gas, in the production of the power it

supplied.

Chargeable man hour is a most appropriate output

measure of our performance as this accommodates

business growth and reflects the fact that our GHG

emissions are directly influenced by our output.

Details are shown in Figure 5.


Environmental – Recycling & Others RECYCLING

Employment of a Specialist Recycling Company to

Recycle Bolts & Nuts

HAESL has employed a metal recycling company in

recycling scrapped metal parts, metal sludge, and

powder. Through further exploration of recycling

opportunities, HAESL now also send scrapped bolts

& nuts, mostly steel and titanium alloy, for recycling.

As shown in the figure below, the amount of steel

and titanium alloy recycled has increased

significantly in 2007 as the result of this initiative.

Titanium Alloy & Steel Recycled

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2006 2007

Wei

ght (

kg)

Titanium Alloy Steel

Fig. 6: Titanium alloy & steel recycled in 2006 & 2007

The amount of titanium alloy & steel recycled significantly increased by

67% & 158% respectively in 2007 mainly due to additional recycling of

bolts & nuts.

Environmental Visit to Wooden Pallet Recycling

Vendor – Waylung

To ensure the material sent for recycling is in fact

being processed correctly, a team from HAESL EHS

committee was sent to conduct environmental audits

at our recycling agents. In October 2007, the team

visited our wooden pallet recycling vendor, Waylung,

which employs wooden pallets collected to facilitate

the manufacture of compose from animal waste.

GREEN PROCUREMENT

Introduction of Biodegradable Meal Boxes in

Canteen

In view of heavy usage of disposable tableware and

silverware in the canteen, we introduced

environmentally friendly meal boxes to replace the

traditional ones during 2007.

The new boxes are made from sugar cane pulp, with

no chemical additives. They are 100% decomposable

and bio-degradable. Compared with the traditional

meal boxes which take more than 200 years to fully

decompose, the new boxes need only 180 days.

Although the cost of the new boxes is higher and the

warmth retaining ability marginally less efficient, the

replacement of the traditional boxes was justified on

their positive environmental contribution.

Implementation of Biodegradable Plastic Rubbish

Bags in Workshop

Continuing with our green purchasing, drive, HAESL

has sourced biodegradable plastic rubbish bags to

replace the existing product used in the workshop

area. These environmental friendly rubbish bags will

be employed from January 2008. In 2007, the

consumption of rubbish bags was roughly 40 tonnes

and this change will significantly reduce the burden

on landfills.


Objectives

Identify and where possible use more environmentally acceptable materials

Identify and where possible recycle more

materials. 2008 Enabler

Implementation of Office Environmental Guide.

Environmental Introduction of Recycling Bins for Glass, Plastic

Bottles and Aluminium Cans in Office Areas

Currently HAESL has recycling bins set up in the

workshops for collection of paper, aluminium cans

and plastic bottles. We will be introducing similar

recycling bins in office areas. The bins are targeted to

collect glass, plastic and aluminium.


Health & Safety Whilst Health and Safety in HAESL has always

compared favourably with other Hong Kong

industries, there remains scope for improvement.

Following a disappointing 2006 safety

performance we set an ambitious 20% reduction

target for lost time injuries in 2007. Despite a

promising start, a poor final quarter resulted in

only a marginal improvement over the full year.

HAESL Performance on Industrial Accidents

0

10

20

30

40

50

60

70

80

1999 2000 2001 2002 2003 2004 2005 2006 2007

Acci

dent

rate

/ 100

0 em

ploy

ees

HAESL All industries Manufacturing

Fig. 7: HAESL performance on industrial accidents from 1999 to 2007,

21 accidents leading to 292 man-days lost, accident rate at 26.9 in 2007.

Source: HKSAR Labour Department and HAESL

2007 Injury Rate Within Swire Groups

0

10

20

30

40

50

60

Service

s

Tran

sporta

tion

Cargo

Mainten

ance

Engineerin

g

HAESL

Inju

ry ra

te p

er 1

000

empl

oyee

s

0

0.1

0.2

0.3

0.4

0.5

0.6

Lost

day

s pe

r 100

0 hr

wor

ked

Injury rate per 1000 employees Lost days per 1000 hr worked

Fig. 8: Injury rate among Swire companies in 2007

Despite the disappointing internal lost time injury rate, HAESL still has a

relative low injury rate and lost time rate compared with other industries

in Hong Kong.

Distribution of 2007 Injuries by Body Part Affected

53%

Eye

Arm / shoulder

Leg

Foot

Torso

Head / face / neck

Hand / finger

Fig. 9: Breakdown of 2007 injuries by body part affected

53% of the injuries occurred in 2007 were hand/finger injuries.

HAECO H&S VISIT To broaden our experience, the HAESL EHS

workgroup committee visited the HAECO facility in

Chek Lap Kok in December 2007. During the visit,

we exchanged views on each other’s EHS initiatives

and undertook a site tour of the HAECO facilities.

Fig. 10: Group photo taken at the H&S visit in HAECO

PURCHASE OF PERSONAL PROTECTIVE

EQUIPMENT

Face mask for dust & odour

In 2007, the company introduced new respiratory

masks for all staffs. These masks come with

interchangeable filters to suit a variety of working

environments.

Fig. 11: Personal protective equipment – respiratory mask for dust protection.


Objectives

Minimise the occurrence of accident and incident.

Improve work environment in workshop.

2008 Targets

Lost-time injury rate target of 21.5 per 1000 employees

2008 Enablers

Purchase of cut resistant gloves to reduce laceration injuries.

Addition of H&S module in Company

Process Improvement Project (STAR). These STAR units operate in every part of the business.

Employment of a new, full time

sustainable Development Officer to closely monitor H&S related issues.

Health & Safety

Fig. 12: Personal protective equipment – respiratory mask for odour protection.

WORKING ENVIRONMENT

Increase of light intensity

An adequate light intensity level is important to the

daily operation in workshop. A lighting survey to

monitor lux level in workshop was conducted at the

end of 2007. As recommended by the survey report

and the CIBSE guide on the service illuminance

standard, more lights were added to shop floor to

improve the light intensity level to a 300-500 lux

range depending on the activities carried out in the

location.

Reduction of Noise Level

In 2007, a number of actions were taken aiming to

reduce noise disturbance in workshop areas.

Two existing blasting cabinets were replaced with

improved models to minimise the noise level in the

mechanical blasting area of the cleaning section.

Sand belt grinders in our honeycomb cell were

reallocated to an enclosed room to isolate the noise

and an individual dust extraction system was

installed to reduce the dust particle level in shop

floor.

A noise free room with ventilation system was set up

in the sheet metal section for use in high noise level

operations.

Fig. 13: Noise free room set up in Sheet Metal Section.

Air Duct Cleaning

Air duct cleaning was completed during the last

quarter of 2007 in production and stores areas with

relatively high dust level. Air sampling will be

carried out annually to determine the need for further

periodic air duct cleaning. Facility maintenance

personnel will be responsible to monitor air seals to

ensure dust extractors are operating effectively.


Charitable & Community Programmes HAESL is committed to being a socially

responsible company. We are active in the local

community through volunteer programmes and

charitable donations. Our various initiatives are

widely supported by our employees and their

families.

CHARITABLE DONATION

HAESL made a number of donations in 2007,

including;

• The World Wide Fund for Nature as a

Corporate Member.

• Cash donation to Orbis

• Sponsorship of two teams in the Oxfam

‘Trailwalker 2006’ event, teams being RR-

HAESL mixed team and Securicor.

• Cash donation to Life Education Activity

Programme

• Cash donation to ‘Operation Santa Claus’

In addition to financial support, we also donated a

variety of other goods to people in need, including

food, computer equipment, furniture and other re-

usable items.

Christmas Food Drive organized by St. James’ Settlement.

CHARITABLE SUPPORT

HAESL works closely with a number of local

charities. We encourage and sponsor our

employees and their family members to participate

in wide range of annual fund raising events.

a) Walk for Life 2007 (HK Anti-Cancer Society,

Scouts & Rotary Club)

On 1 April 2007, a HAESL team consisting of 18

staff and family members participated in the ‘Walk

for Life’ jointly organized by the Hong Kong Anti-

Cancer Society, Scout Association and the Rotary

Club. It took around 7 hours for our members to

complete the 25-km walk which started at Black's

Link and finished at the Peak in the Hong Kong

Island. A total of HK$24,493.2 was raised, 50% of

which by staff and 50% sponsored by HAESL.

b) Walk for Nature @ Mai Po

Thirty-three HAESL staff and family members

participated in the Walk for Nature @ Mai Po on 4

November 2007. The 5-km walk brought our

members through a number of fish bonds, bird

hides, reed beds and Gei Wai (shrimp ponds).

With the matching fund from HAESL, a total of

HK$38,930 was raised by the participants.


HAESL is also a silver member of the World

Wildlife Fund and supports its sustainable food

menu policy for company functions.

c) Oxfam Trailwalker Charitable Trust -

RR/HAESL

A combined HAESL and Rolls-Royce team took

part in Hong Kong Oxfam Trialwalker 2007 from 9

to 11 November 2007, a 100 km trek across some

of Hong Kong’s most rugged and scenic territory.

HAESL was represented by the DGM, Neil Glenn.

The team completed the event in 30 hours and 43

minutes and raised a total of over HK$150,000 for

Oxfam.

BLOOD DONATION PROGAMME

We organize Blood Donation Day every year with

strong support from employees.

On 17 May 2007, a blood donation day was

organised in HAESL by the Hong Kong Red Cross

Blood Transfusion Service. This was the second

year we had a blood donation day and the result

was very encouraging. A total of 74 staff succeeded

in donating blood, which was 23% more than the

previous year.

EDUCATION

We support education for young people in Hong

Kong through various activities, including

sponsoring scholarships for local university and

employees’ children, offering internship

opportunities during the University Summer break,

and organizing visits to our production facility.

a) Scholarships

HAESL awarded two scholarships to its

employees’ children for the academic year 2007/08

- a Form Six student and a second-year

undergraduate studying Computer Science in the

Chinese University of Hong Kong.

A scholarship was also donated to a first-year

bachelor degree student studying Mechanical


Engineering at the Hong Kong Polytechnic

University for the academic year 2007/08.

b) Summer Internship

In 2007, a total of 15 Summer Trainees joined

HAESL to gain practical work experience during

the University Summer break. They were assigned

to work for various departments including

Technical Services, Human Resources, Finance,

Information Technology, Planning, Stores and

Engine Overhaul Department.

c) Plant Visits

A number of visits to our production facility were

organized during 2007, visiting organizations

included; the Hong Kong Institute of Engineers,

local schools, universities and other technical

institutes.

EMPLOYEE VOLUNTEERING

Our volunteer team was set up in 2007, comprising

employees and their friends and families. The

volunteer team organizes quarterly events to

provide assistance to the local habitat, the elderly

and other people in need.

a) WWF Volunteer Day

On 17 March 2007, a group of fifteen HAESL

volunteers went to Mai Po Nature Reserve to assist

in the clearance of weeds from the banks of the

pond areas. These weeds grow rapidly and

jeopardize the healthy growth of mangroves and

other plant that are important for the bird life and

water life of the wetland area.

b) Summer Programme for Employees’ Kids

On 28 July 2007, an employees’ children summer

activity was held at HAESL. A group of 11

volunteers organized a site tour, games and

handicraft class for the employees’ children who

participated. Lots of fun for the children as well as

the volunteers.

c) Visit to the Elderly Home

A group of 17 HAESL volunteers paid a visit to

King Lam Elderly Centre in Tseung Kwan O on 22

September 2007 for the celebration of the Mid-

Autumn Festival. The highlight of the visit

included a game session that we organized for


around 60 ‘old buddies’. With the assistance of our

team members, the games including bingo and

price guessing t were a great success.

d) Trip to Guangxi

Four HAESL volunteers joined the Guangxi trip

organized by the Swire HK Staff Association. The

four-day trip from 22 to 25 August 2007 covered

visiting farmers’ homes, organizing games for

school students and assisting in minor repairs for

the local school.


APPENDIX A – 3-Year Environmental, Health & Safety Plan 2008 – 2010

Budget HK $/yr Target Year 2008 2009 2010

(A) Environmental Management System

1 Review & improve environmental documentation

Document activities / operations that potentially to causing an environmental impact 2007-08 25k - -

2 Develop HAESL’s green procurement policy

Procurement policy to be established 2007-08 - - -

3 Define Carbon Footprint

Determine target and initiatives to deliver those targets 2008-09 - - -

(B) Current EHS data reporting

1 Carbon disclosure project (CDP) by Swire

2 Rolls Royce AR&O EHS benchmarking database

3 GRI questionnaire by Swire

4 Swire EHS database

5 Swire sustainable development questionnaire

(C) Future EHS Initiatives

1 Organise ‘Green’ programmes to encourage improvements on resource consumption & waste management. 2007-08 10K - -

2 Reduce energy consumption

Improvement and integration of facilities building management system to achieve energy efficiency. 2007-09 1400K 1000K -

3 Reduce industrial accidents by "50% in five years"

a. Performance target for 2008: lost-time injury rate: 21.5 2008 -

b. Introduction of new PPE / tooling e.g. safety gloves, safety cutters, masks, etc. 2007-09 50K 50K -

4 Ensure staff awareness by bulletins, notices & training

a. Safety courses such as general chemical awareness courses, etc. 2007-10 70K 70K 70K

b. EHS posters & articles for HAESL.COM to enhance general awareness 2007-10 5K 5K 5K

c. Accident-free award scheme 2007-10 30K 30K 30K

d. Environmental awareness training 2007-10 10K 10K 10K

e. Specific category for H&S suggestion scheme 2007-10 4K 4K 4K

5 2008 initiatives

a. Introduction of "Office Environmental Guide" 2008 - - -

b. Addition of H&S module in STAR 2008 - - -

c. Installation of water heating solar panel for canteen 2008 200K - -


APPENDIX B – 3-Year Environmental, Health & Safety Plan 2005 – 2007

Expenditure HK$/yr

Target Year 2005 2006 2007 Progress

(A) Environmental Management System

Develop environmental training programmes 1

Organise ‘Train the trainer’ 2006 - 20K - Training programmes completed.

Review & improve environmental documentation 2

Document activities / operations that potentially to causing an environmental impact 2007-08 - - 25k WIP

Develop HAESL’s green procurement policy 3

2007 - - 10k Research conducted in 2007, policy to be further reviewed.

Define Carbon Footprint 4

a. Develop Metrics for direct/indirect emission measure 2007 - - - Completed

b. Identify peer group of business, benchmark ourselves and define best practices for green house gases 2007 - - -

An EHS benchmarking database within the AROC group has been developed, data to be updated in a yearly basis.

(B) EHS Initiatives

1

Develop “Environmental Checklist” and ensure environmental best practices are identified to allow inclusion of new projects 2005 - - - Checklist is being developed

2 Reduce industrial accidents by 10% year on year 2005 200K - -

Successfully done in past years, with exceptionally low accident rate in 2004; the accident rate was significantly increased in 2005.

3

Installing various heat exchangers to improve efficiency and reliability; Installing evaporation cooling tower bases and chilled water supply 2005 - 2,900K - Completed

4 Rain water recovery to supply chiller cooling tower 2006 - 67K - Completed

5 Installation of high efficiency lights in Module Change 2006 - 300K - Completed 6 Installation of solar powered roof lights 2006 - 50K - Not implemented

7 Heat recovery from the motor of the new chiller to produce hot water for process use. 2006 - 200K - Not implemented

8

Improve our understanding of production energy use by investigating & installing metering of energy-intensive production process 2006-07 - 50K - Completed

9 Upgrade dust collection system to reduce the amount of residue contaminant discharged. 2006 - 810K - Completed

10 Install sediment separation system for Fan Blade Cell to reduce solid-state pollutant discharged into sewage 2006 - 450K - Completed

11 Conduct feasibility study of using non-VOC base floor paint 2006 - - - Completed

12

Over total mass of 8000kg of wooden pallet has been recycled since the implementation of recycling activities on wooden waste in mid 2006 2006 - - - Completed

13

Organise ‘Green’ programmes to encourage improvements on resource consumption & waste management. 2007-08 10K Green Day to be organised in 2008.

a. Improvement and integration of facilities building management system to achieve energy efficiency. 2007-09 - - 900K BMS integration completed in Phase 1.


b. Water heating solar panel for canteen. 2007 - - 200K Carry forward to 2008. 14 Reduce industrial accidents by "50% in three years"

a. Introduction of new PPE / tooling e.g. safety gloves, safety cutters, masks, etc. 2007-09 - - 130K

Cut resistant gloves, dust masks, odour masks purchased in 2007.

15 Ensure staff awareness by bulletins, notices & training

a. Safety courses such as general chemical awareness courses, etc. 2007-09 - - 70K

Departmental safety course established.

b. EHS posters & articles for HAESL.COM to enhance general awareness 2007-09 - - 5K Process is on going

c. Accident-free award scheme 2007-09 - - 30K WIP

d. Environmental awareness training 2007-09 - - 10K Environmental awareness training established

e. Specific category for H&S suggestion scheme 2007-09 - - 4K H&S suggestion scheme implemented. 16 Improve working environment 2006 initiatives include: a. Replace 2 blasting cabinets to reduce noise level. 2007 - - 350K Completed

b. Reallocation of sand belt grinder to reduce noise disturbance. 2007 - - 70K Completed

c. Increase light intensity 2007 - - 500K Completed

(C) Practical Applications 1 Collect and recycle metal scrap and oxide grit 2005 - - - This program commenced in 2005

2 Engine oil target to recover 70% of all engine oil used 2005-06 - - -

75% and 70% of engine oil was recycled in 2005 and 2006 respectively.

3 Achieve an 8.7% energy reduction. 2006 4900K - -

Air-cooled chillers were replaced by variable speed high-efficiency water-cooled chillers in 2005. Modulate fresh air consumption in the Primary Air Supply units. Rain water recovery was completed in 2006.

Total 5100K 4847K 2314K


APPENDIX C – HAESL’s Environmental, Health and Safety Database

Year

Unit 2007 2006 2005 Remarks on variation between

2006 and 2007

A Energy and Fuel Usage

A1 Electricity purchased kWh 18,251,043 17,252,178 17,832,376

Workload had a growth of 10%, plus a new facility released to production at the end of 2007.

A2 Town gas consumed MJ 1,227,552 1,188,864 1,087,632

Review of meal preparation process flow was completed in 2007 which reduced the standby period of stoves.

A5 Aviation fuel consumed L 3,478,700 3,293,200 2,743,030

Engine testing increased by 7.3%, combined with a higher percentage of larger engines tested.

B Water Usage

B2 Seawater used for flushing m3 10,585 10,582 10,581

B3 Potable water used for cooling m3 21,968 17,145 ---

The increase is due to the addition of an Evaporative Water Chiller and a Cooling tower for air conditioning and process cooling.

B4 Potable water consumed for properties and landscaping m3 7,920 9,578 9,077

Meter for capturing water consumed for properties and landscaping also collects partial water consumption data for cooling before the installation of a dedicated evaporator AC cooling water meter in early 2006. Data should be rectified in 2007.

B9 Treated wastewater recycled m3 0 0 0

B11 Potable water consumed (for industrial wash / process ) m3 49,975 51,349 34,102

B13 Wastewater discharged to sewers m3 49,975 51,347 34,102

C Materials Usage

C3 Plastics (packaging material) consumed kg 16,471 15,573 7,430 C13 Paper & paper products consumed kg 40,191 37,873 42,715

C15 Printing cartridges purchased (new) No. 808 934 861

C18 Paints consumed L 12,001 12,053 12,337

C26 Chemicals consumed in processes – liquid L 39,178 26,900 27,615

The increased consumption figure may be explained by the following items: - The installation and commissioning of a new creep feed grinding machine in the turbine blade cell (coolant).- Flushing and refilling of various chemical tanks within the cleaning area during the first half of 2007.- The high consumption of chemical is mainly due to the increase of workload in the turbine blade and honeycomb cell.

C27 Chemicals consumed in processes – solid kg 17,701 16,679 14,285

C28 Chemicals consumed in wastewater treatment – liquid L 800 1,320 3,040

C29 Chemicals consumed in wastewater treatment – solid kg 87,940 88,330 83,612

C36 Acetylene consumed kg 3,562 3,787 3,504

C38 CO2 consumed in production kg 138 114 23


D Solid Waste

D1 Commercial/Industrial waste disposed of kg 421,970 494,666 636,995

D3 Grease trap waste disposed of m3 68 62 49 There was 8.3% rise of head count in 2006

D7 Food waste disposed of kg 56,015 56,850 53,770

E Solid Waste Recycling

E1a Paper recycled kg 12,730 23,152 27,517 E1b Cardboard recycled kg 18,680 22,321 10,910 E2 Aluminum recycled kg 618 860 698 E4a Metal recycled – titanium alloy kg 5,089 3,042 3,373 E4b Metals recycled – steel kg 7,144 2,765 3,468

The increase is mainly because of the introduction of bolt & nut recycling.

E4c Metals recycled – others kg 25,044 25,858 10,170 E8 Printing cartridges sent for recycling No. 484 351 187

F Chemical Waste

F6 Waste lubrication oil disposed of L 5,921 5,600 4,400 F8 Waste paints disposed of L 6,760 7,320 7,900

F11 Other chemical concentrates disposed of (liquid) L 16,299 8,200 7,200

F15 Heavy metal concentrates - hexagonal chromium disposed of L 141 2,000 4,000

Timing of replacement due to frequency of operation, and quality of chemicals in tanks

F16 Heavy metal concentrates – cadmium disposed of L 5,439 2,200 5,600

F17 Heavy metal concentrates – nickel disposed of L 0 400 0

F18 Heavy metal concentrates – others disposed of L 730 1,600 2,600

F19 Sludge /resin (heavy metal contaminated) disposed of L 4,253 11,400 14,000

G Chemical Waste Recycling

G1 Waste lubrication oil recycled L 16,200 13,200 13,200

Engines tested increased by 6.5% against the same period in 2006; also there were a greater number of larger engines tested in the 2007 period.

J Health and Safety

J1 Number of employees No. 843 780 721

J2 Number of hours worked Hrs 0 1,931,544 1,711,749

J3 Number of accidents No. 21 21 10 J4 Number of incidents No. 13 3 18 J5 Number of hours lost to accidents Hrs 2,336 2,092 648 J6 Number of fatalities No. 0 0 0

L Greenhouse Gas

L1 Total CO2 emission (indirect and direct) kg 18,461,454 19,891,141 18,899,589

- from aviation fuel consumed (direct) kg 8,705,042 8,230,398 6,855,408

- from acetylene consumed (direct) kg 12,039 12,800 11,844

- from town gas consumed (direct) kg 71,321 68,966 63,094

- from electricity consumed (indirect) kg 9,673,053 11,590,013 11,979,790

L2 CO emission from aviation fuel consumed (direct) kg 2,760 2,613 2,179

L3 NOX emission from aviation fuel consumed (direct) kg 26,496 25,083 20,916

L4 HC emission from aviation fuel consumed (direct) kg 1,932 1,829 1,525


M General Legal Compliance

M1 Air pollution – number of warning letters received No. 0 0 0

M2 Air pollution – number of prosecution actions No. 0 0 0

M3 Water pollution – number of warning letters received No. 0 0 0

M4 Water pollution – number of prosecution actions No. 0 0 0

M5 Waste (MSW) pollution – number of warning letters received No. 0 0 0

M6 Waste (MSW) pollution - number of prosecution actions No. 0 0 0

“---“ Indicates no data available


CONTACT US If you have any comments or queries, please contact: Mr. Neil Glenn Director and General Manager Hong Kong Aero Engine Services Limited 2/F Administrative Building, 70 Chun Choi Street, TKO Industrial Estate, Tseung Kwan O, N.T., Hong Kong Email: [email protected] Related publications by HAESL: HAESL Environmental Report 2003 HAESL Environmental, Health & Safety Report 2004, 2005, 2006 Special thanks to cover picture provider: Isaac Lee (Business Development & Planning Officer)

Documents

CORPORATE SOCIAL RESPONSIBILITY REPORT 2007 … · CORPORATE SOCIAL RESPONSIBILITY REPORT 2007 . ... • EUROPE - EASA ... following the opening of a new workshop building