SD governance structure and policies
CNCo strongly believes that it is imperative to act with probity, transparency and accountability in order to achieve our long-term objectives.
The parent company’s Board of Directors is the highest-level governance and oversight body and sets the strategy for its subsidiary companies. The Chairman of the Parent Company Board of Directors was Mr. B. N. Swire and from late 2018, Mr. S. Swire. The CNCo Board of Directors at 31st December 2018 comprised eight members, of whom four were Independent Executive Directors.
The shareholders are directly represented on the CNCo Board of Directors and use this platform to provide governance direction. While CNCo has no direct public shareholders, it manages and operates all its businesses in compliance with both the John Swire and Sons (UK)’s, and CNCo’s Corporate Code of Conduct. We also have in place policies, guidelines and procedures that comprise our organisational governance suite. All policies are regularly reviewed by the CNCo Executive Committee (ExCom) and updated as required. Our policies are available on the Company’s website under the Sustainable Development tab and include inter alia SD Policy, Environmental Policy, Responsible Cargo Carriage Policy, Sustainable Procurement Policy, Supplier Code of Conduct.
The General Manager for Sustainable Development (GM SD) reports directly to the Managing Director and is a member of the ExCom, allowing him to provide SD input at a strategic level, and at an early stage of any new project deliberation and planning. The composition of CNCo’s ExCom is shown below.
There were two women on CNCo’s ExCom representing two nationalities. CNCo is working at attracting / promoting more women into management positions and is addressing it through Leadership Development training, succession planning and a Diversity & Inclusion (D&I) strategy that we will be introducing in 2019. We are acutely aware that this will be a journey that must be undertaken prudently but which will take time to deliver results.
The interests of internal and external stakeholders relating to SD are fed back to the ExCom by the GM SD following both stakeholder engagement and surveys / feedback. The “interests” includes both risks and opportunities, and how we manage our economic, environmental and social impacts.
CNCo’s SD Report is reviewed by the Managing Director prior to publication to ensure accuracy and inclusion of all material issues. CNCo’s management regularly review the operating practices and the Enterprise Risk Management framework that ensures:
The Designated Person Ashore (“DPA”) has been an internationally legally required position since 1993, peculiar to the shipping industry under the International Maritime Organisation (“IMO”) International Ship Management (“ISM”) Code, which provides an international standard for the safe management and operation of ships and for pollution prevention.
The DPA role was instituted in the global marine industry to ensure that one named person has direct access to the highest level of management in the event that a more junior line manager is felt to be blocking resolution of a safety-related issue. This legal responsibility and authority of the DPA includes monitoring the safety and pollution prevention aspects of the operation of each ship and ensuring that adequate resources and shore-based support are applied.
CNCo is also a part of the various thematic working groups at the Swire group level and is a part of the Swire group Sustainability Committee responsible for setting targets and sharing best practices among the private and public companies of the Swire group.
CNCo has a Corporate Philanthropic (CP) Committee which meets on an ad hoc basis and reviews / approves requests for community investment or CP sponsorships. At the operational level, there are Sustainability Working groups, comprising cross-functional representatives who meet quarterly in Singapore and in the main regional offices of Auckland, Sydney, Port Moresby and Suva. They seek to embed sustainability into our local office operations.
CNCo’s Welfare group has oversight of the social / welfare strategy areas. It plays an important role in creating a more cohesive organisation where the employees are engaged and satisfied, making CNCo their Employer of Choice.
We have in place a formal whistleblowing procedure through which concerns on potential governance, social or environmental issues can be fed back quickly, and anonymously if required, to a senior member of the management team. Reporting of material concerns is formally tracked and addressed.
In 2017, CNCo developed four must win battles (MWBs) to achieve our key objectives of operational excellence, winning team, rewarding partnership, financial success and innovative solutions. After the annual leadership conference in January, specific projects for 2018 were identified under each battle.