Accountability to Stakeholders

General principle

The MODEC Group understands that a sustainable and continuous business contributes to stakeholders and creation of a better society. Based on this understanding, we conduct responsible business activities in line with its “Code of Business Conduct and Ethics”.

Together with customers and business partners
Customers and business partners are required to consider the impact on the environment and society, and we understand that meeting these needs is important for the sustainable development of the company.
We strive to improve the efficiency of products and services for building a better society by improving communication with customers and business partners.
Together with shareholders and investors
To enhance better relationships with shareholders and investors, we strive to ensure timely and appropriate information disclosure. Our senior managements explain our business policies and specific visions by themselves to ensure highly transparent management.
In addition, we upload IR (Investor Relationships) materials, such as financial results and the mid-term business plan on our website in a timely and appropriate manner to pursue more highly transparent information disclosure.
Together with local communities
We treasure communications with local communities and we are aiming to build sustainable societies through cooperation with them. Our local staff participates in local activities, and supports welfare organizations and educational institutions.

Health and Safety

General principle

The MODEC Group recognizes it is critically important to ensure the health and safety of its employees and maintain appropriate working conditions to enable each employee works at their full potential for our sustainable development. Every employee, contractor and vender are expected to understand and comply with both our HSSEQ* policies and their procedures.

In particular, we make an effort to secure the health and safety of employees who are engaging in FSO/FPSO operation as they work in a remote environment. We have formulated our “Health Safety Declaration” for ensuring the health and safety of our employees, and are aiming to achieve it.

*HSSEQ: Health and Safety, Security, Environment and Qualiry

Health and Safety Declaration

In the entire MODEC Group, we promote employees' health through enhancement of occupational health and safety systems.

  • We comply with local labor standards and related laws and regulations, and carry out extensive management in all countries.
  • Under appropriate management systems, we prevent work-related accidents in all workplaces. In case an accident occurs, we secure the working environment by investigating all incidents and establishing measures to prevent recurrence.
  • We continue to engage in the improvement of employees' health and safety for prevention of work-related accidents and illness by our HSSEQ management systems.

Management System

MODEC, INC. has in place “HSE committee” in the purpose of following aims:

  1. 1Ensuring the health and safety of our employees, the protection of the environment
  2. 2Set HSSE performance objectives, measure results, assess and continually improve processes through the effective integrated management system
  3. 3Empower and support all employees and subcontractors with the right to STOP WORK or refuse to work in situations where conditions or practices are deemed unsafe
  4. 4Contribute to sustainable development through environmental protection
  5. 5Other important matters recognized as necessary for safety, health and environment protection.

General Occupational Health & Safety and Environment Manger (executive officer in charge of human resources) chairs HSE Committee, which consist of Occupational physician, Health Supervisor (designated by law) and Representative of workers (appointed by half of committee members in the union) attend the “HSE committee.”

In addition, The MODEC group organizes “MODEC Group HSSEQ Executive Committee” supervising and monitoring activities of entire Group's occupational health & safety, environment and quality. The committee is chaired by VP & Chief HSSEQ Office and consists of MODEC, INC. CEO, heads of each business units, Chief Compliance Officer and Chief Human Resources office for supervising and monitoring group wide HSSEQ activities.

Efforts for Occupational Health, Safety and Security

  Year to Year 2022
  2022 2021 2020 Offshore Onshore
Exposure Hours          
Employee 12,026,103 12,338,424 10,481,800 4,266,404 7,759,699
Contractor 51,978,567 44,665,408 36,583,575 6,213,366 45,765,201
Total Exposure hours 64,004,670 57,003,832 47,065,375 10,479,770 53,524,900
Fatalities (work related)          
Employee 0 0 0 0 0
Contractor 0 2 1 0 0
Total Fatalities 0 2 1 0 0
Lost Time Injury Frequency Rate Employee 0.23 0.41 0.00 0.13 0.26
Lost Time Injury Frequency Rate Contractor 0.08 0.11 0.25 0.02 0.07
Lost Time Injury Frequency Rate (Total) 0.11 0.18 0.19 0.04 0.09
Total Recordable Incident Frequency Rate Employee 0.78 0.73 0.48 0.70 0.77
Total Recordable Incident Frequency Rate Contractor 0.41 0.29 0.44 0.80 0.37
Total Recordable Incident Frequency Rate (Total) 0.48 0.39 0.45 0.76 0.43
Occupational illness          
Employee 13 0 2 13 0
Contractor 3 0 1 3 0
Total Recordable Occupational Illness Frequency Rate
(employees only)
0.00 0.00 0.19 0.00 0.00
Work- related security incidents 6 3 3 2 4
Work-related security incident resulting in physical harm to
employees (number)
0 0 0 0 0

LTIF= Number of Lost Time Injuries x 1,000,000/ Manhours Worked
TRIR=Total number of Recordables x 1,000,000/ Manhour Worked

  Year to Year 2022 Regional Breakdown
  2022 2021 2020 South America Africa APAC
Loss of Containment- Process            
API 754 Classified Materials 166 127 176 143 23 0
API 754 Classified Materials (by TIER)            
Tier 1 incidents (number) 2 1 2 2 0 0
Tier 2 incidents (number) 2 0 6 2 0 0
Tier 3 incidents (number) 162 126 168 139 23 0

Human Rights and Local Communities

General principle

The MODEC Group believes that respect for human rights is essential in the course of undertaking projects all over the world. Based on this belief, we establish our “MODEC Human Rights Policy” and endeavor to understand local cultures, traditions, and customs all over the world.

Our “Code of Business Conducts and Ethics” and “MODEC Human Rights Policy” stipulate the prohibition of child labor and forced labor, and respect for individual human rights. Every employees and officers endeavor to comply with our code of conduct as a member of local communities.

Regarding to prevention of any kinds of discrimination and harassment, we are raising employee and officer awareness by providing various compliance programs.

We support and respect international standards such as the "International Bill of Human Rights*", "Guiding principles on Business and Human Rights", "the ILO Declaration on Fundamental Principles and Human Rights at work" and "Children rights and business principles."

*International Bill of Human Rights is a general term for three international codes: "Universal Declaration of Human Rights", "the International Covenant on Civil and Political Rights" and “the International Covenant on Economic, Social and Cultural Rights".

Labor Standards

As one of a global company's responsibilities and to ensure its continuity, the MODEC Group seeks to develop diverse human resources with shared values. Through establishing labor standards, we promote a working environment in which every individual can achieve their full potential regardless of their nationality or sexuality.

Policy on Labor Standards

We believe that respect for human rights is essential in the course of undertaking projects all over the world. Based on this belief, we establish our “MODEC Human Rights Policy”. The policy stipulates prohibition in any form of discrimination based on gender or nationality, as well as it prohibits child labor and forced labor.

Additionally, we respect employees' “freedom of association" and "the rights of collective bargaining” through explicit adoption of the International Labor Standards set by International Labour Organization (ILO) and comply with applicable local laws and regulations. We endeavor to ensure that employees' working hours and use of leave entitlements are appropriately managed and excessive overtime work is prohibited by following local legislations.

In addition, we endeavor to ensure statutory minimum wages at least the living wage for employees and shall not unreasonably reduce wages.

Participation in the UN Global Compact

We joined the UN Global Compact in January 2020, declaring our commitment to the universal ten principles in the four fields (human rights, labor, environment and anti-corruption). Guided by our "Code of Business Conduct and Ethics", we prevent any form of discrimination and harassment, and promote actions under each principle of the "UN Global Compact".