Engineered Excellence for strategic advantage

Our competitiveness as a contractor and an employer, and our ability to secure optimal value from our projects within manageable risk, rely on the consistent application of Engineered Excellence.

This operating philosophy, which together with our Values define the Group’s culture, brings discipline and rigour to every decision and action. It is embedded within our businesses through various policies and management systems, including the Group Sustainability Framework, our HSE framework, the Group Statement of Business Principles and the Group ethics framework. These frameworks set clear expectations for our employees, platforms and business partners, and their application is tightly governed throughout the Group.

Engineered Excellence defines our management approach at every level of the organisation. Vested in careful and conscious planning, its application demands leadership commitment, shared learning and continuous improvement. In our responses to challenging operating contexts, in making unavoidable trade-offs and sequencing our priorities, it aims to remove chance from our pursuit of the outcomes our stakeholders expect; it therefore fortifies our aspiration to be a contractor and an employer of choice.

CONTRACTOR OF CHOICE

Project excellence is an important differentiator in competitive markets. Recognition as a contractor of choice supports our ability to secure work, negotiate fair commercial terms, mitigate HSE and other risks and enhance project delivery. For the Group, disciplined management of commercial and execution risk in tendering and executing projects, serves to minimise losses and protect margins.

Ensuring our competitiveness extends to swiftly and comprehensively implementing Group frameworks in acquired businesses, and ensuring that our joint-venture partners align to the Group’s project delivery standards, including HSE, compliance, conduct and reputational risk management. To support our specialism and productivity, the Group is centrally coordinating the accelerated digitalisation of our businesses and project management systems for better safety, efficiency and productivity of project teams and equipment.

Business platform reviews

Health, safety and environment

Nowhere is our focus on Engineered Excellence clearer than in our approach to safety. The continuous improvement in the evolution and diligent application of our HSE framework has measurably enhanced the maturity of the Group’s safety culture. Many of our projects are demonstrating that production, quality and safety performance go hand in hand.

The Group’s HSE framework (see below) outlines the role, responsibility and accountability of the corporate office and business platforms, and incorporates recommendations from independent experts and from ongoing risk assessments and audits. It is focused on high-impact interventions, such as managing critical safety risks and the risk of change (including demobilisation).

Key safety measures

After achieving a two-year fatal incident free record, the Group regrettably suffered a fatal incident early in the financial year. Wilfred Moleofi (33), who worked for OptiPower Projects, sustained fatal injuries at one of our projects in South Africa.

Following a comprehensive investigation, we implemented the required corrective measures to prevent reoccurrence of similar incidents.

To break through the plateau in improvement, typical of safety performance at the levels the Group has achieved, we are giving increasing emphasis to lead indicators to help prevent safety incidents.

Projects delivered with Zero Harm

80%

improvement

LEAD SAFETY INDICATORS

  • HAZARDS OBSERVATIONS
  • LEADERSHIP ENGAGEMENTS
  • COMPLIANCE WITH MAP PROGRAMME

The Group continues to pursue opportunities to minimise the impact of its business activities on the environment and to assist clients in meeting their environmental objectives. All companies in the Group are required to adopt high environmental management standards, including implementing and maintaining internationally recognised environmental management systems, using project input materials responsibly and efficiently, and complying with legislative requirements.

Our Climate Change Position Statement commits the Group to:

  • Continuing to monitor and reduce our carbon footprint.
  • Evaluating our participation in new projects against the environmental imperative to mitigate climate change impacts.
  • Collaborating with clients and stakeholders in the supply chain to find innovative solutions to reduce carbon emissions in their market sectors.
  • Growing our service offering in the renewable energy sector.
OUR KEY ENVIRONMENTAL RISKS INCLUDE:

1Increasing regulatory requirements related to energy and climate change, which could lead to increased costs.


2Project disruptions due to extreme and unpredictable weather conditions, including floods, fires and storm surges.


3Undertaking activities without the correct environmental authorisation or failure to abide by conditions set out in operating licences, such as water use licences, on a project.

Guided by the ultimate objective of sustainable value creation, we are striving to become a part of the solution to pressing environmental challenges. We will do this by continuing to develop and implement new service offerings and reducing environmental impact in areas where we have influence. This extends to reducing our own environmental footprint. We will also continue to identify innovative ways to manage the physical risks of climate change on project delivery, improving our business resilience and assisting our clients. We participate in the Climate Change and Water CDP disclosures and have achieved Management Level Status on both.

During the year, we initiated a process of climate change scenario analysis focused on the mining sector in line with the TCFD framework. During this process, we identified key climate change drivers, risks and opportunities that are anticipated to impact our mining business. Based on these key drivers and uncertainties, we have developed three scenarios that will be further evaluated in the coming year. We also anticipate expanding the scenario analysis to other parts of our business.

Key environmental measures

Improving emissions reporting

Murray & Roberts has a well-established carbon footprint baseline for Scope 1 and 2 emissions extending back to FY2015. This year, we extended our emissions reporting by undertaking a Scope 3 carbon assessment and developing a system for annual Scope 3 emissions reporting.

Energy usage1
(gigajoules)

83 270

(FY2020: 87 701)

Scope 1 and Scope 2 emissions
(tonnes of CO2e)

10 938

(FY2020: 11 039)

Scope 3 emissions
(tonnes of CO2e)

45 300

REPORTED FOR THE FIRST TIME

Water usage
Megalitres

24.91

(FY2020: 25.17)

1. Total energy consumed includes all direct (all fuel types) and indirect (electricity) energy sources, with the majority of sources used in FY2021 being diesel, petrol and electricity. Reported figures include energy paid for by Murray & Roberts and excludes client purchases.

EMPLOYER OF CHOICE

Our aspiration to be recognised by our clients as a specialist provider of services and a contractor of choice, is contingent on our ability to attract and retain the best leaders, management teams and workforce with the required technical expertise.

Our Values are central to the appointment and succession of leaders, who are ultimately responsible for implementing Group strategy and modelling Group culture. Ethical leadership, employee health and safety, diversity, inclusion and localisation are strategic priorities, enabling us to attract, retain and engage high-calibre and high-performing employees who live the Group’s Values. As a multinational organisation, a diverse workforce contributes to improved business performance and supports our social licence to operate. The Group diversity policy guides our businesses in their responses to the diversity priorities of the countries and cultures in which they operate.

Career advancement through training and mentorship, best people practices and adherence to the Group diversity policy, are important aspects of our value proposition to employees. We are recognised for our ability to recruit locally, across the culturally diverse multinational regions in which we operate, and provide effective training methods to instil the Group’s high standards for safety and productivity.

Key people measures

COVID-19 health risk

COVID-19 has increased health risk among our workforce. To date, the Group has reported approximately 1 200 employees who were infected with COVID-19, where 99% have recovered. Regrettably, 12 employees lost their lives due to COVID-19 related complications. COVID-19 risk mitigation measures are embedded in our Health and Safety Management programme. Besides non-pharmaceutical protocols, we continue to implement other measures, such as shift rotation, to minimise congregate settings and assist employees to access vaccines. We also plan to expand mental health support over the next year including collaborating with our clients and industry associations.

Murray & Roberts strongly supports the global vaccination campaign. The Group, together with our clients, provide access to the vaccine and will continue to encourage our employees to be fully vaccinated.

Training spend

R99 million

(FY2020: R104 million)

Bursaries awarded

R3,4 million

(FY2020: R3,1 million)