15 November 2007

2007 SUSTAINABILITY REPORT

Wesfarmers today released its 2007 Sustainability Report outlining the company’s performance across a broad range of indicators related to safety, the environment and community engagement.

It is the tenth time Wesfarmers has produced a stand-alone report covering these aspects of the activities of its wholly-owned business units and providing information also about some other associated entities.

Managing Director Richard Goyder said the report had become an important part of the company’s pursuit of a sustainable future.

“We have just four key strategies that guide our whole approach to doing business,” he said.

“One of these is to ‘ensure sustainability through responsible long-term management’ and this report is a comprehensive summary of many of the things that are helping us along the way to achieving that objective.”

Mr Goyder said that personal and collective responsibility was a key factor in all aspects of business and broader life and was critically important in the context of sustainability.

“It ranges from decisions our Board might take to the way in which our employees go about their jobs in some of the environmentally-sensitive areas in which we are involved. We’ve got some way to go but our aim is to integrate the ethos of sustainability at all levels of our operations.”

The report is available on the company’s website (www.wesfarmers.com.au) or by contacting Wesfarmers on (61 8) 9327 4251.

For further information: Keith Kessell Executive General Manager, Corporate Affairs (61 8) 9327 4281 or 0419 949 082

Sustainability 07 COVER We are one of Australia’s largest public companies with our head office in Perth, Western Australia. In 1984 we listed on what is now the Australian Securities Exchange, having begun as a farmers’ cooperative in 1914. Our major operating business interests SustainSustainabilityability 07 are in home improvement products and building supplies; coal mining; insurance; industrial and safety products; chemicals and fertilisers; gas processing and distribution and power supply.

Home Industrial & Chemicals & Other Coal Insurance Energy Improvement Safety Fertilisers Businesses

BUNNINGS CURRAGH LUMLEY AUSTRALIA CSBP COREGAS GRESHAM (AUST/NZ) GENERAL PARTNERS BLACKWOODS INSURANCE (50%) PREMIER AUSTRALIAN WESFARMERS Members of the Wesfarmers (AUST) PROTECTOR Ultimate Challenge at sea off HOUSEWORKS GOLD LPG ALSAFE REAGENTS WESPINE BENGALLA Fremantle. LUMLEY (75%) INDUSTRIES (40%) BULLIVANTS KLEENHEAT GENERAL (50%) GAS Read about it on page 8. INSURANCE MULLINGS QUEENSLAND (NZ) FASTENERS NITRATES BUNNINGS ENERGY MOTION (50%) WAREHOUSE GENERATION WESFARMERS INDUSTRIES PROPERTY (ENGEN) FEDERATION TRUST INSURANCE (23%) NEW ZEALAND AIR LIQUIDE CONTENTS WA OAMPS BLACKWOODS (40%) (AUST/UK) PAYKELS Managing Director’s Welcome 1 NZ SAFETY CROMBIE PROTECTOR About This Report 2 LOCKWOOD SAFETY (NZ) PACKAGING HOUSE Sustainability Scorecard 4 KOUKIA (91%) Bunnings 12

Curragh 24

Premier Coal 32

Kleenheat Gas 44

Wesfarmers LPG 52

Industrial & Safety 60

CSBP 70

Insurance 82

Other Businesses 90

Independent Assurance Statement 94

Glossary and Feedback 96

AREAS COVERED 1

WELCOME

This is the tenth time we’ve given an account of our performance across a range of issues relevant to our pursuit of a sustainable future.

We have made very clear the priority we The Last 12 Months Looking Ahead allocate to this goal by adopting, as one of just Since we last reported there’s been an intense As ever, we must continue to improve. But four key strategies which guide our whole public and political focus on climate change that’s an expected and exciting challenge for approach to doing business, our commitment and this has been reflected internally, including motivated people in a company that is always to “ensure sustainability through responsible a detailed update to the Board at the Directors’ casting its eyes beyond the horizon. long-term management”. Seminar in May. My thanks to everyone at Wesfarmers for their I mention that because it underlines what Our participation again this year in the Carbon efforts over the past year. I have no doubt that I have said in these reports previously Disclosure Project provides a detailed account dedication will continue and I look forward to a about the indisputable linkage between of our approach to climate change issues and very productive 2007/2008. includes a breakdown of greenhouse gas operating in a sustainable way and We would very much like to know what you emissions for the Group. business success. think about our performance and its reporting We made a submission also to the Prime through this document so please get in touch Our reliance on good management might not Minister’s Task Group on Emissions Trading via the feedback form at the back or by sound terribly ‘exciting’ but it goes to the heart in which we advocated the development of making a comment on our website. of the challenge we face. When all’s said and a truly global scheme to link national and done, the outcomes achieved rely very much regional schemes. Our contribution to the on the decisions and actions we take – industry-led Coal21 Fund, aimed at developing whether it’s our Board authorising an technological answers to emissions from expansion or involvement in a new industry coal-fired power stations, has doubled to sector, the diligence of an operator at a a likely $30 million over the next 10 years. chemical plant or the initiatives Bunnings In a new initiative, we commissioned a Richard Goyder pursues with respect to water and climate Group-wide assessment of greenhouse risks Managing Director change. There’s just no escaping our personal and opportunities from a leading external and collective responsibilities. consultant. This report will be considered in To that end, two of our four key values – coming months and will provide a basis for future action. integrity and accountability – have great relevance to the way we manage these issues. Bunnings took a big step forward on Without integrity there is nothing else and the sustainability during the year with a major concept of accountability goes to the very upgrade to its water-focused strategies and heart of the Wesfarmers’ business model. the adoption of a goal to achieve carbon The people working in the very diverse set neutrality by 2015 or earlier. of businesses we own are given are a lot of Regrettably, we have not done well autonomy but with that goes a high degree enough on safety. While some businesses of responsibility. improved, for the second successive year the Group-wide performance deteriorated. This applies as much to the way people The accountability and responsibility to which work in sustainability-related areas as it I referred earlier is never more important than does to more directly financially-focused in the context of safe workplaces. While I don’t endeavours. We rely on them to do their doubt for a moment the level of commitment jobs in an efficient and dedicated way and of all our employees there simply has to be to contribute to the data which enables us better implementation of our comprehensive to produce this report. safety systems. 2

ABOUT THIS REPORT

This section provides an outline of what’s covered in our 2007 report and how we’ve gone about putting it together.

Timing Safety data Report preparation Data collection and report drafting is the Coverage is for the financial year ended Readers will notice on the safety performance responsibility of business unit environmental, 30 June 2007. In a few cases, where there graphs a reference to statistics being for the safety and community relations representatives have been developments subsequent year to 30 June but “as at 30 September who are part of a working group convened by to the end of the reporting period, but prior 2007”. This is because we adjust the numbers to the printing deadline, we have included to take account of workers compensation our Corporate Office. Drafts were reviewed by this information to make the report more claims lodged, or lost time that has been the Corporate Office prior to detailed time relevant. reported, up to 30 September relating to discussions with the contributing authors. injuries sustained in the financial year under This process ensures that ultimate ownership What we cover review, thus allowing for delayed impacts. of the report lies with the business units. All wholly-owned and operationally-managed It can mean that the numbers reported for We have changed the name of the report businesses as at 30 June 2007 are included. a particular year have to be changed in this year to Sustainability 07 from Social The Insurance division reports less extensively subsequent reports. Responsibility Report, the title for the past three years. This document has evolved than the other major contributing business The basis for calculating our main safety constantly since first being published in 1999 units because of the nature of its operations. performance indicator – the Lost Time Injury and the 2007 title reflects our continuing move Recent acquisitions in the insurance sector, Frequency Rate (LTIFR) – is outlined in the towards the embrace of a holistic view of the notably OAMPS and Crombie Lockwood, are Glossary on page 96. concept of sustainability. included to the extent possible given data LTIFR numbers now include contractors availability but coverage will increase as their unless otherwise specified in the reports Case studies integration proceeds. The Coregas industrial of the individual businesses. Where it is Each of the contributions from the fully- and medical gas operations, which were possible to calculate an LTIFR for contractors reporting business units includes a case acquired in February 2007, are mentioned only – that is, where there is regular engagement study highlighting a particular aspect of their briefly but we intend to significantly expand and hours worked are available – the business year’s experience with respect to the coverage of this Energy division business is required to include this information. environment, safety or community interaction, in the future. Energy Generation is covered as does this year the Energy Generation in an abridged format given its relative Greenhouse gas emissions report. In addition this year we have included materiality within the whole Group, as is the Greenhouse gas emissions information two extra case studies which report on the 40 per cent-owned Air Liquide WA, which contained in this report is generally based on involvement of Wesfarmers Limited in we manage. calculations done in accordance with the remediation of a contaminated site and one Australian Greenhouse Office (AGO) Factors of the new community partnerships into which We report in a Case Study and in the and Methods Workbook December 2006 the parent company entered in 2006/2007. Sustainability Scorecard section on progress version. Readers should note that some of the in remediation of site contamination arising AGO’s emissions factors have changed from Independent Assurance from the activities of our Sotico subsidiary. time to time and, accordingly, year-to-year The report’s accuracy and completeness There is coverage also of work being done to changes in emissions data may in part be due is critically important and every effort is address contamination linked to the operations to this rather than a change in the performance made to ensure that all statements are of our former road transport business. of a business unit in relation to greenhouse gas properly authenticated. Brief reference is made to other businesses emissions. Further information is available at After the discussions referred to above with which we are associated but are not www.greenhouse.gov.au. and a final draft agreed, the business involved in operational management – the We have used an implied emission factor for unit representatives were required to Bengalla coal mine, Wespine plantation compile detailed checklists linking report New Zealand of 0.23 t C02-e/MWh for softwood sawmill and the Queensland Nitrates electricity generation and consumption from content to documented source material ammonium nitrate plant. We provide links to the NZ Energy Greenhouse Gas Emissions or employee sign-off. websites for readers wishing to find out more 1990-2006 publication. Further information Representatives from our Corporate Solicitors about these activities. is available at www.med.govt.nz. Office and Group Risk Management department then conducted sample verification business is unable to supply the necessary Responses were obtained from 13 stakeholders checks through site visits and desktop audits data. Gaps are thus identified and the (six external, seven internal) for Bunnings and 3

and prepared reports for senior management. businesses concerned are encouraged to 14 (nine and five) for Premier. About this report consider whether these can be closed. The internally-verified reports, signed off by In the case of Bunnings, the key stakeholders the authors and senior management, were Completeness consulted generally considered the provided to assessors from Net Balance organisation’s sustainability performance to be We do not claim that this report provides Management Group. Net Balance either “good” or “very good”. Both internal and 100 per cent coverage of our safety, Management was engaged this year after external stakeholders were considered to hold environmental and community relations last year’s external consultants, URS Australia, a positive view of the business in terms of performance. Any gaps in our knowledge decided to discontinue providing this service. economic, environmental and social aspects will be reduced as our systems improve. Net Balance carried out an independent of sustainability performance. Bunnings was This document is a best endeavours attempt assurance process using the AA1000 also considered to perform better than other to report openly and honestly based on our Assurance Standard, including a formal retailers with regard to sustainability. The key current state of knowledge. internal and external stakeholder interview sustainability opportunities identified were to reduce water, waste and energy and to process for two of the business units. The Glossary businesses and our Corporate Office were become a leader within the retail sector in Within each separate report we aim to also required to nominate their main terms of sustainability. eliminate as much jargon and technical sustainability issues and these can be found terminology as possible and to spell out the Premier Coal’s key stakeholders also generally on page 5. The Net Balance Management names of organisations when they are first considered the organisation’s sustainability Assurance Statement is published on pages mentioned. The Glossary can be found on performance to be either “good” or “very 94 and 95. Net Balance also provides a page 96. good”. Both the internal and external detailed report to management on its respondents to the process were found to assessment of the reporting process. Website hold a positive view of Premier across the key Final sign-off by divisional managing The full report is available on our website at sustainability criteria - economic, directors followed the external independent www.wesfarmers.com.au. Additional hard environmental and social. assurance process. copies can be obtained from the Public Affairs Five key sustainability opportunities and risks Department on (61 8) 9327 4251. for Premier Coal were consistently identified by Audit Committee the surveyed stakeholders - working with the Board oversight of this report is delegated to Feedback community, mine rehabilitation, energy the Audit Committee which gave approval Please help us improve the report by sending consumption/reduction of greenhouse gas before publication. your comments either on the form attached to emissions, minimisation of environmental the inside back cover or through the website. impacts and more efficient mining practices. Format Detailed reports, including recommendations The format aims to increase the transparency Stakeholder engagement for improvement, have been provided to both of the document by requiring businesses to In 2006 we conducted a comprehensive Bunnings and Premier by Net Balance report under standardised headings. stakeholder engagement process covering Management Group. Occasionally items may not fit entirely logically all eight fully reporting business units and the under these classifications, but we believe the parent company. This year it was agreed with A new feature this year in each report is a layout enables readers to more easily make the assurance providers that we should reference to the outcomes of the 2006 cross-business comparisons. Not all of the assess stakeholder attitudes for two of the stakeholder engagement process. categories appear in all of the reports. businesses - Bunnings and Premier Coal – This means either that the heading is simply as part of a four year plan to cover all business not applicable to a specific operation or that a units in more detail.

Sunset at the Curragh coal mine, Blackwater, Queensland. 4

SUSTAINABILITY SCORECARD

A look at our performance using indicators linked to the three key aspects of sustainability - economic, environmental and social.

The detailed business unit reports that appear shareholders were due to vote on circumstances. All such policies have to take later in this document contain a great deal of 7 November on an enhanced proposal we account of our overarching guideline which information about environmental, safety and announced on 5 September which again commits the company to “placing strong health performance and community interaction. received the endorsement of the Board emphasis on protection of the environment”. of Coles. This section provides a Group-wide summary A significant environmental initiative was of some of the sustainability-related issues and In the year to 30 June 2007 our company announced in May 2007 by our Bunnings challenges relevant to our very diverse recorded a net profit of $786 million. At the Home Improvement division. Bunnings will structure and we aggregate some key data end of the reporting period we had a market invest $8 million in new environmental projects to provide readers with an overall view of value of $17.7 billion. Some of the Group’s and commitments involving re-fitting every where we stand. There is a brief reference to significant financial performance indicators are existing warehouse store in subtropical some of our economic impacts and outcomes summarised in Figure 1. mainland Australia with rainwater harvesting which are dealt with in much greater detail systems and in achieving carbon neutrality by Our operations have a significant impact on in the company’s Annual Report for the year 2015 or earlier. The new water- 2006/2007, available on the website at the economies of Australia and New Zealand. focused measures extend Bunnings’ active www.wesfarmers.com.au. Major payments included more than $1 billion interest in reducing consumption of this in salaries and wages to employees, our precious resource. Its carbon neutrality goal shareholders received $865 million in dividends will be progressed through a partnership with and we paid $700 million to governments at Figure 1: Group Financial Murdoch University in Western Australia aimed all levels. Indicators ($) at reducing reliance on grid-sourced energy More than 90 per cent of our revenues and and it will also make grants for carbon Net sales 9.8 billion earnings are derived from our Australian offsetting projects over the next two years. operations. We are not required to report Cost of goods, materials and Bunnings extended its successful plastic bag 6.4 billion services purchased separately on the financial outcomes of our reduction programme to New Zealand in New Zealand activities. Payments to employees 1.3 billion April 2007 following the very positive impact of the 10 cents per bag levy, introduced in Dividends paid to shareholders 865 million Australia in September 2003, in cutting back Interest paid on borrowings 200 million on the number of plastic bags in the litter We are one of 21 Australian companies and waste streams. Income tax and other payments 700 million to governments selected for inclusion in the Dow Jones The encouragement of use of fuels other than Sustainability World Indexes for 2007. Decrease in retained earnings 103 million petrol and diesel is becoming increasingly This covers the top 10 per cent of the 2,500 important in the context both of lower biggest companies in the Dow Jones World overall pollution levels and the climate change debate. In the absence of special purpose Index in terms of corporate sustainability after Economic requirements, all ‘tool of trade’ Group-supplied assessment against economic, environmental passenger cars must be suitable for liquefied Our major operating business interests in the and social criteria. period covered by this report were home and petroleum gas (LPG) use because of its garden improvement products and building Environmental environmental benefits over petrol and diesel. supplies; coal mining; insurance; industrial and We welcome government initiatives designed Our extremely diversified structure, both with safety products distribution; chemicals and to increase consumption of LPG for passenger respect to sectors of operation and a fertilisers manufacture; and gas production vehicles and signs that this is increasing geographical spread across Australia and New and distribution and power supply. demand for vehicle conversions. Zealand, gives rise to a potentially very wide In April 2007 we announced a proposal to range of environmental issues. This is the We continue our efforts, through Kleenheat acquire Coles Group Limited and in July the reason our Group environment policy requires Gas, to expand the market for liquefied natural Board of Coles recommended our offer. At business units to develop policies and gas (LNG) as a substitute for diesel in the time of sign-off on this report, Coles’ procedures relevant to their particular heavy duty vehicle and remote power SUSTAINABILITY ISSUES 5

CORPORATE BUNNINGS CURRAGH Sustainability Scorecard

• Continued good management of the entire • Community trust regarding product • Continue to optimise water use and quality business to ensure ongoing fi nancial success quality and sourcing • Enhance local community engagement and • Ethical conduct and reputation enhancement • Workplace safety development through effective stakeholder • The decent treatment of employees with • Natural resource use consultation respect to remuneration, health and safety and • Waste and emissions • Employ leading practice in land management the provision of a non-threatening and non- • Customer education on sustainability • Continue to seek improvements in the way we discriminatory workplace manage our people, safety and skills • Community support • Effective and transparent stakeholder relations/ • Continue to minimise the impact of our communication with a broad range of parties operations on the environment, including • Active pursuit of corporate social responsibility better management of greenhouse gas goals through, amongst other things, a emissions and waste signifi cant community contribution programme and respect for the environment

PREMIER COAL KLEENHEAT GAS WESFARMERS LPG

• Continue to work with employees to improve • Minimise the risk to employees, customers and • Long term supply of LPG to operate our safety performance to achieve a zero the community resulting from business activities economically harm workplace • Provide all employees the opportunity to • Comply with regulatory authority • Employ leading management practices for improve their health and wellbeing requirements to operate forest, water, land, coal recovery and waste • Minimise our environmental footprint through • Ensure a safe work environment for all management to minimise impacts on the effi cient resource management employees, contractors and visitors environment in which we operate • Meet all compliance obligations by operating • Workplace respect, integrity, heath, safety • Continue to build a sustainable business by our management system in accordance with and wellbeing being a reliable, cost competitive, quality and Australian Standard AS3806 • Good corporate citizenship and community innovative supplier • Develop and market LPG and LNG as awareness of our operations • Engage with and add value to the local commercially viable alternative fuels that offer community customers signifi cant environmental benefi ts • Implement leading practice in energy • Create, operate and invest in physical assets to conservation and effi ciency to reduce our ensure ongoing integrity and commercial viability energy consumption and emission • Ensure our people, culture, key systems and of greenhouse gas processes make our business fi t for growth

INDUSTRIAL & SAFETY CSBP INSURANCE

• Safety, wellbeing and success of our people • Economic development and success • Enhance and develop good corporate • Supply chain development and sustainable • Water resource supply and effi cient citizenship initiatives that maximise return to product sourcing management the community, our staff and the business • Natural resource use • Skilled and healthy workforce • Workplace safety for us, our business partners and customers • Waste and emission management • Safe operation of our business • Potential climate change impacts in our industry • Community support • Contribution to agricultural nutrition and the continued management of our own management greenhouse footprint • Legacy waste remediation • Attract and retain the best possible people • Effective community support and engagement to lead, develop and manage our business • Improving the greenhouse effi ciency of our • Communication of sustainable business operations over the medium term practices internally and externally generation sectors. Our $138 million Group environmental indicators Energy Efficiency Opportunities 6 investment in the construction of a 175 Gaps remain in our data collection systems All our wholly-owned operating businesses tonne-per-day LNG plant at the Wesfarmers across the Group and this affects to some have been registered under the LPG site in Kwinana and on distribution extent our ability to report on indicators of Commonwealth Government’s Energy infrastructure and two remote area power environmental impacts. Each business unit Efficiency Opportunities programme. External stations will greatly expand the availability of section contains all available and verifiable consultants have been engaged to assist in LNG as an alternative fuel in Western Australia. details from which the summary that follows the preparation and lodgment of Assessment The project is on schedule for completion in is drawn. and Reporting Schedules required to be March 2008. submitted by 31 December 2007. Greenhouse gas emissions As mentioned earlier, we base our measure Water consumption of greenhouse gas emissions on Australian Estimated use of scheme and bore water Greenhouse Office methodology. totalled 7,111 megalitres (see Figure 4). Total direct and indirect greenhouse emissions This does not represent the Group’s entire Figure 2: Greenhouse Gas Emissions for the Group in 2006/2007, converted to water consumption as it excludes water (CO - e Tonnes) 2 carbon dioxide equivalent, were estimated at used by our Kleenheat Gas business because Sustainability Scorecard 2.65 million tonnes (see Figure 2). This was many of its operating sites are leased and CSBP 1,277,546 104,792 tonnes below emissions reported last no data is available. The Insurance division, Curragh 774,179 year and compares with 2.6 million tonnes in which is a low water user, does not measure 2004/2005. The Group number contribution consumption. Also, this total does not include Bunnings 182,802 from the Energy Generation remote power recycled water used at the Curragh operations Energy Generation 167,828 supply business relates to emissions from because of unreliability of measurement. Last power stations built, owned and operated by year’s estimated total group consumption was Wesfarmers LPG 136,305 that business. 7,961 megalitres. Premier Coal 60,475 The emissions figure reported last year of 792,357 tonnes for Curragh was incorrect and Waste Industrial & Safety 29,533 was adjusted to 732,534 tonnes. The waste numbers also require some Kleenheat Gas 14,622 As noted in the Managing Director’s welcome qualification. Kleenheat Gas and Insurance to this report, we were again in 2007 a do not measure solid or liquid waste, with the Insurance 5,679 respondent to the Carbon Disclosure Project exception this year that Kleenheat recorded Group Total 2,648,969 (CDP). Our submission, which will be made paint waste from its Kwinana and Camellia public on the CDP website, provides full sites. Liquid waste for these businesses and Figure 3: Energy Use disclosure of our greenhouse emissions for our Industrial and Safety division is (gigajoules) and, more generally, our approach to climate confined mainly to vehicle oils which are change issues. We made a submission collected during servicing. Bunnings does CSBP 9,952,204 to the Prime Minister’s Task Group on not measure liquid waste volumes. The total Emissions Trading in which we supported the liquid waste figure includes discharges at Curragh 2,882,302 establishment of a truly global emission trading CSBP’s Kwinana and Albany sites (these are scheme encompassing as many countries and both a mixture of process effluents and rainfall) Energy Generation 2,366,348 as many gases as possible. We believe the and the Bibra Lake site. No other CSBP site Wesfarmers LPG 2,084,142 best prospect for progress in this area is if generates liquid waste for disposal to the such a scheme were to link up national and environment. Bunnings 641,882 regional systems. With these caveats, we estimate total solid Premier Coal 632,779 Towards the end of the year we commissioned waste at 361,457 cubic metres (compared with external consultants to prepare a greenhouse Kleenheat Gas 184,069 543,326 last year) with liquid wastes of 581,861 risks and opportunities assessment for the kilolitres (727,381 kilolitres in 2005/2006). Industrial & Safety 176,234 Group as a follow-up to one conducted in 2003. The report was due to be received Insurance 43,504 Non-compliance/prosecutions in October 2007 and will form the basis for We are not aware of any significant non- Group Total 18,963,464 future action. compliance with environmental regulations or As the Managing Director also noted, our any prosecutions relating to environmental Figure 4: Water Consumption contribution to the industry initiative known as issues during the year. (megalitres) the Coal21 Fund, which levies coal producers to fund research into clean coal technologies, CSBP notified the Western Australian CSBP 2,439 is likely to reach $30 million over the next Department of Environment and Conservation 10 years. (DEC) of 48 reportable events, 16 of which Curragh 3,129 were potential non-compliances. Energy use Bunnings 858 Details of these matters are contained in the Total estimated energy use for our Group in CSBP report. Environmental compliance Premier Coal 523 2006/2007 was almost 19 million gigajoules, records of our other businesses are covered a decrease of about five per cent on last year. Industrial & Safety 146 in their reports. Consumption from Energy Generation is Wesfarmers LPG 16 included on the same basis as for greenhouse Reference is made in the Kleenheat Gas report gas emissions. Business–by–business usage to an ongoing investigation by the Australian Group Total 7,111 is summarised in Figure 3. Competition & Consumer Commission. facility in Bangladesh, operated by a joint Figure 5: Environmental Expenditures ($) Figure 6: Employee Distribution venture in which we are the majority partner, 7

employs about 60 people. This year we paid Sustainability Scorecard CSBP 8,653,000 out $1.3 billion in salaries, wages and other benefits. Bunnings 5,322,672 325 We recognise the right of those we employ to 6,101 Curragh 4,046,069 negotiate individually or collectively with or 6,250 without the involvement of third parties. Sotico 1,278,481 1,185 7,200 About 67 per cent of our employees are Premier Coal 692,362 528 covered by collective agreements. We do 7,439 not keep records of membership of trade Kleenheat Gas 271,325 3,678 352 unions or similar employee organisations. Wesfarmers LPG 64,000 Group Total 33,058 Our company believes in maximising the flexibility of arrangements available to Group Total 20,327,909 employees and their managers. Some use is currently made of Australian Workplace Agreements but, as mentioned above, most National Pollutant Inventory (NPI) Pemberton timber mill, is covered in detail in employees are engaged under other the Case Study on page 11. All our Australian businesses that are required arrangements and that is likely to continue to report under the NPI mention this in their Extensive remediation was carried out on to be the case. sections. Full details are available on the NPI creosote contamination of soil and At the end of the year under review, 90 per website www.npi.gov.au. groundwater resulting from timber treatment cent of permanent employees held shares in at the Manjimup Processing Centre (MPC), Environmental expenditures the company with a take-up rate of 99 per formerly owned by Sotico, in the mid 1980s. cent among eligible employees for the share This year we have expanded the number of A site management plan, incorporating scheme during the year. businesses reporting on direct environment- ongoing groundwater monitoring, was Gender diversity remains an important issue. related expenditure by including Bunnings. submitted to the Department for the Around 44 per cent of our employees are In 2006/2007 this amounted to just over Environment and Conservation (DEC) in late women and women occupy 162 (14.7 per $20.3 million (see Figure 5). The total includes 2005 and is being implemented. To date, cent) of the company’s 1,102 management the cost of remediating contamination at sites three full groundwater monitoring rounds have positions. At the senior management level previously owned by our forest products been undertaken. Results indicate no impact (342 positions) there were 41 women, business, Sotico Pty Ltd. Only the Insurance in the groundwater north west and north of comprising 11.9 per cent of the total. At year’s and Industrial and Safety divisions are not the railway reserve to the west of the MPC. end, our 15-strong Executive Committee had included as they have no ready way of These results show that the remedial works two women members. identifying such spending. Our expectation is carried out in the former creosote area were that their outlays in this area would not be successful in removing the main source of We have policies which apply across the material in a financial sense. The criteria contamination in this area. Our consultants, Group aimed at ensuring that each person for reporting expenditure addressed salaries URS Australia, are in discussions with the has equal access to employment and the and overheads, specific environmental DEC to identify the correct classification of benefits of employment are based on the projects and any other costs (such as fees off-site areas under the Contaminated Sites principle of merit. Each business unit is paid to consultants) for an environment- Act 2003 as well as looking at ways to better required to complete an annual report to related purpose. focus further groundwater monitoring events. the Equal Opportunity for Women in the Workplace Agency. These reports outline Contamination Work continues, with advice from external Remediation of site contamination is an issue consultants, related to fuel spillages at our for some of our business units and details are former transport business sites in Karratha, Figure 7: Lost Time Injury provided in the relevant individual reports. Carnarvon and Port Hedland. The Karratha Frequency Rates The most significant of these involve our CSBP land was sold in January 2006 but we chemicals and fertilisers business and the continue to monitor groundwater Business Unit 05/06 06/07 former forest products operations of Sotico. contamination. At Carnarvon, residual Bunnings 12.4 14.4 Financial provision has been made to cover contamination is being monitored following the estimated cost of these activities. We removal of soil from the site and at Port Coregas N/A 8.2 continue also to address contamination Hedland we are awaiting a response from the Premier Coal 8.3 5.4 issues associated with sites once occupied occupier of the site in order to determine a by the transport business we sold in 2001. remediation strategy. Industrial & Safety 5.0 4.6 CSBP is engaged in remediation of a former Social Kleenheat Gas 0.7 3.6 fertiliser site at Bayswater in Western Australia and of an ammonia/arsenic groundwater Our people Curragh 4.9 3.0 plume at its Kwinana site. In the case of We are a major employer with more than 90 Insurance 3.0 2.7 Sotico, impacts of timber treatment plants at per cent of our 30,000-plus workforce located Pemberton and Manjimup are the focus of our in Australia and the balance in New Zealand CSBP 5.9 2.2 (see Figure 6). With the addition to our efforts. Kleenheat Gas provides information in Energy Generation 0.0 0.0 its report on remediation arising from former Insurance division of the OAMPS business in retail fuel sites. The major Sotico project, November 2006, we now have about 80 Wesfarmers LPG 0.0 0.0 involving removal of contaminated waste employees in the United Kingdom. A liquefied Group Total 9.6 10.6 materials from an area adjacent to the petroleum gas import terminal and distribution CASE STUDY 1

8

Going to sea on the Leeuwin Australia’s biggest ocean-going tall ship, the Leeuwin II, was the setting in March 2007 for the Wesfarmers Ultimate Challenge.

Eighteen young people with physical, mental and sensory this diversity provided a great environment for developing limitations set sail from Fremantle in Western Australia for friendships and learning new techniques to handle diffi culties a fi ve night cruise focused on goal setting and learning new and challenges. skills afl oat on the relatively sheltered waters around Rottnest

Sustainability Scorecard The impact of the voyage is well summed up in a letter we and Garden islands and in Cockburn Sound. received from one of the novice sailors: “The hardest thing for With a medical and care support contingent of 22 and the me to do was climbing the rigging – even though I did it twice! ship’s staff and volunteer crew of 15, the young participants I learnt that I can do even the most impossible things.” were gradually introduced to the workings of the 55-metre The Ultimate Challenge is the only voyage on the Leeuwin’s long, three masted Leeuwin, which was launched in 1986. calendar specifi cally designed to meet the needs of disabled As they started to become more familiar with their young people. It is becoming increasingly in demand with surroundings, workshops were held to set goals and interest from all over Western Australia in the places available. tasks allocated, such as helping in the galley and general This year’s cruise was made possible as part of the partnership cleaning and housekeeping duties. we entered into in 2006 with the Leeuwin Ocean Adventure Those aboard were aged from 15 to over 50 and brought Foundation to support its aims of providing challenges and with them a range of experiences. Along with the variety of fostering leadership, teamwork, community spirit and cultural intellectual and physical disabilities amongst the young people, and environmental awareness. strategies implemented to enhance the report to them is linked to the achievement of of safe work practices. These include statistics representation of women in our businesses. safety targets. on all injuries, near misses and restricted work 9

Given our autonomously-operating business We have a Group target of reducing accident cases. Full details are available in their Sustainability Scorecard unit structure, training is one of the issues rates by 50 per cent each year towards a goal individual sections. within the direct responsibility of business of zero. The primary measure we apply is the Non-compliance/prosecutions units. But certain human capital development Lost Time Injury Frequency Rate (LTIFR) which processes apply across the Group. These is explained in the Glossary section at the end Bunnings was fined $123,750 after pleading include remuneration of senior people, of this document. guilty to a prosecution brought by the New South Wales WorkCover Authority relating workplace discrimination and succession For the second successive year, regrettably, to a forklift collision with racking at the Ashfield planning. More than 100 of the company’s there was a deterioration in the Group’s overall store in 2004, in which no injuries were most senior employees have their progress safety performance, as measured by the sustained. A fine of $35,000 was imposed, monitored as part of their personal LTIFR. For the reporting period, the Group with no conviction recorded, following a guilty development and the Group’s wish to retain LTIFR was 10.6, up 10 per cent on the 9.6 for plea by Bunnings to a prosecution by key people. the previous corresponding period. There were Queensland Work Health Standards relating Every two years or so we conduct a major 73 or 18.3 per cent more lost time injuries over to incidents involving injuries to truck drivers conference at which senior managers from the period. Total working hours increased from at the company’s former Caloundra frame across the Group come together to discuss a 41,499,303 to 44,759,515 or eight per cent and truss site. broad range of issues with input from external during the year. As mentioned earlier in the and internal speakers. The next Best Practice report, safety data is adjusted to include time Details of these matters are contained in the Conference is scheduled for March 2009. lost between 1 July 2007 and 30 September Bunnings report. Safety compliance records 2007 relating to injuries occurring before the of our other businesses are covered in their We have a Code of Ethics and Conduct that end of June. reports. covers employee behaviour and while business units may adopt standards that best On a business-by-business basis, Wesfarmers Governance match their activities, they must embody the LPG and Energy Generation maintained their zero LTIFR and Curragh, CSBP, the Industrial In our Annual Report (available at principles laid down in the Group Code, which www.wesfarmers.com.au) we provide a is available on our website. The Code contains and Safety and Insurance divisions all improved. Details of individual business safety very detailed account of our governance a specific provision to protect whistleblowers. outcomes are found in Figure 7. structure. At the end of the reporting period, there were nine men and one woman on the Safety Details on the one fatality during the year are Board. Mr Tony Howarth became the eleventh Workplace safety is one of our highest included in the Kleenheat Gas report. director when he was appointed in July 2007. priorities. We believe we have an obligation to While the LTIFR remains the main Group-wide do all we can to ensure the safe return from measure of safety performance, operating The Board has adopted a Charter which their job of everyone who works for our businesses are encouraged to use a range requires it to have a majority of non-executive company. Part of the remuneration of our of broader measures to promote a more independent directors, a non-executive managing directors and some of those who proactive approach and support a culture independent Chairman and to have different

Business Development team members at Wesfarmers Corporate Offi ce, Perth, Western Australia. The Helpmann Award-winning opera ‘The Love of the 10 Nightingale’, part of the Wesfarmers Arts Commission Series was performed at the 2007 Perth International Arts Festival.

Figure 8: Community Contributions ($)

Business Units 4,010,564

Wesfarmers Limited 2,595,000

Group Total 6,605,564 Sustainability Scorecard

people filling the roles of Chairman and Chief profit. In deciding how to distribute these Melbourne and Brisbane and winning four Executive Officer. The Board considers that funds, we give preference to activities with a awards at the national Helpmann Awards. eight of the directors are independent. broadly beneficial reach. Medical research, The Series involved the commissioning of four Three standing Board Committees health care and conservation featured works encompassing dance, theatre, (Nomination, Remuneration and Audit) review prominently in areas to benefit in 2006/2007. orchestral music and opera over four years from 2004 to 2007. matters on behalf of the Board and make Our commitment to the Comprehensive recommendations. Cancer Care Centre at St John of God In November 2007, the Wesfarmers Arts The company’s Market Disclosure Policy, Hospital in Western Australia continues, as Commission Series received national which covers announcements to the Australian does our support for the Australian Research recognition when it was named Partnership Securities Exchange, prevention of selective or Alliance for Children and Youth, the Great of Year in the prestigious national Australia inadvertent disclosure, conduct of investor and Southern Arc biodiversity restoration Business Arts Foundation Awards presented analyst briefings, media communication and programme and the Western Australian by Federal Minister for the Arts and Sports, other issues is supported by an education and Community Foundation. During the year Senator George Brandis. training programme overseen and monitored we entered into a partnership with the by the Audit Committee. Leeuwin Ocean Adventure Foundation Political donations (see Case Study on page 8). We believe that the democratic process is Community contributions strengthened if political organisations, Wesfarmers Arts The continuing successful operation of particularly those likely to be in a position to the Group’s businesses, in an ethical and We have developed a national reputation for form government, have the resources to socially responsible way, is the enduring contributing to the arts through our award- develop policy positions to put to the cornerstone of our contribution to the winning Wesfarmers Arts sponsorship electorate. Financial contributions to parties community. Through the creation of programme. Our commitment to the arts can be made only by Wesfarmers Limited, not employment opportunities and the flow stems from a belief that a vibrant cultural by any of our business units. During the year of economic benefits to employees, sector makes a really positive contribution we donated a total of $100,000, split between shareholders, suppliers and by paying to the society in which we live. the Liberal Party, the Australian Labor Party taxes to governments, we have a positive This year, direct support totalling about and the National Party. All donations are impact on society. $550,000 was provided to a range of leading disclosed in November after the end of the In addition, we believe in giving something performing and visual arts companies and financial year concerned to the Australian back to the communities in which we operate organisations. In the area of indigenous arts, Electoral Commission which publishes this by way of direct and indirect assistance to we were a major contributor to the Duyfken information on its website, www.aec.gov.au. organisations and causes providing a public Aboriginal Print Portfolio. Commemorating benefit. That support is delivered by way of 400 years of Dutch contact with Australia, the direct donations from Wesfarmers Limited (the project commissioned emerging indigenous parent company) and by donations, artists from Melville Island, Cape York, sponsorships and other assistance from the Western Australia and Tasmania to work Group’s businesses. In the 2006/2007 at the Australian Print Workshop to produce financial year, this amounted to more than a portfolio of limited edition prints. Following $6.6 million (See Figure 8). a national tour, Wesfarmers donated two On top of this, Bunnings contributed to the portfolios to the Art Gallery of Western raising of another $5.7 million for charities and Australia and the Berndt Museum of other community organisations through the Anthropology. use of its stores to promote these causes and Our Commission Series with the Perth the efforts of its employees. International Arts Festival culminated with Under a policy approved by the Board, the premiere of the opera The Love of the Wesfarmers Limited makes donations up to an Nightingale. The production received critical annual ceiling of 0.25 per cent of before-tax acclaim, going on to extended seasons in CASE STUDY 2

11 Sustainability Scorecard

Cleaning up at Pemberton Most of the focus on environmental performance is, not surprisingly, on current and prospective activities.

But an increasingly important issue is the way in which After timber treatment ceased, Sotico began investigating the companies address responsibility for past events, such as best way to clean up the disposal ponds which were fenced the remediation of contaminated sites. off to prevent public access. One option considered, and A good example is the work completed during the year in the outlined to a public meeting in Pemberton in December 2003, small town of Pemberton, about 300 kilometres south west of was for a bioremediation process. However, laboratory testing Perth in Western Australia, at a cost of more than $2 million. showed that while this was expected to be effective as far as the PCPs were concerned it was unlikely to reduce associated The Pemberton contamination resulted from treating karri dioxin contamination to an acceptable level. railway sleepers at the town’s main sawmill to protect the wood against termite attack. The treatment process began In July 2006, following prior approval from the Department of around 1914 and continued through until the late 1980s. the Environment and Conservation (DEC), we announced that During this period the mill’s ownership changed a number of the waste ponds material would be consolidated into a form times, as did the treatment methods, which included using a allowing controlled and traceable transport to a licensed Class mixture of arsenic and molasses, creosote, pentachlorophenol IV waste disposal site for encapsulation in concrete. (PCP) and furnace oil, with waste being directed to disposal Work supervised by URS Australia began in November and was ponds located across the Vasse Highway from the mill. completed in April 2007. Public consultation was an important Our ownership of the mill, through subsidiaries Bunnings part of the process with contact maintained with the Shire of Forest Products and Sotico, ran from 1970 until its sale Manjimup and the Pemberton Progress Association. in 2003. During this period, PCP was used in a furnace oil Once a clearance certifi cate is obtained from an independent medium and then later furnace oil alone was used as a auditor to the satisfaction of the DEC, the land will be transferred preservative for the timber. We assumed responsibility for to the Western Australian government, in accordance with an remediating the PCP-sourced contamination and the agreement reached in 2003. The government continues to Western Australian government agreed to deal with arsenic assess options for dealing with the arsenic contamination. impacts, as used in the process during the government’s ownership of the mill from its establishment until 1961. SUPPLIER OFBUILDINGMATERIALS. IMPROVEMENTMAJOR PRODUCTS ANDA LEADING RETAILER OFHOME AND GARDEN WE AREAUSTRALIAZEALAND’S NEW AND Bunnings Garden Coordinator John Garden Coordinator Anastasiu withsomeofthe Australian Spring2007rangeofoutdoorleisuretimberfurniture which carriestheForest StewardshipCouncil’s certifi cation, warehousein theBalcatta at Western Australia. 07 07 PRIORITIES OUTCOMES 13

Maintain our contributions to improve the social Achieved. Contributed over $8m in direct donations and in-kind support as well as providing paid and unpaid wellbeing of the communities in which we operate. team member hours towards community projects.

Implement our revised OHS strategic plan across Achieved. Revised OHS strategic plans in place. the business to achieve sustainable improvement in OHS performance.

Target a reduction in ‘all injuries’ of at least 15 per cent. Not achieved. The total all injuries frequency rate increased 0.3 per cent from 50.8 in 2006 to 51.1 in 2007.

Lessen our direct environmental impact through Achieved. Existing programmes bolstered by new commitments - $6m towards water conservation projects achieving better and more effi cient use of resources including installation of rainwater harvesting systems and $2m towards projects to achieve a goal of becoming (energy, water, and other services) and improved waste carbon neutral by 2015 or earlier. Commenced implementation of recommendations from the Australian recycling management practices. and waste services review.

Work with our suppliers to further develop Achieved. Over 90 per cent of timber products purchased are sourced from plantation and other known low sustainability of supply chains and sustainable product risk sources. Joined as an offi cial member of the WWF Australia Forest & Trade Network. Continued to conduct choices for our customers. independent factory working condition assessments for manufacturers of our imported product range.

Proactively provide customers with access to Achieved. Increased amount of sustainability resources available to our customers via our website, in-store information about environmentally friendly products information and catalogues. New energy and water-effi cient product ranges introduced. and projects that can support sustainable living.

Revenue during the year reached 4.9 billion dollars. At 30 June 2007 there were 155 warehouse stores and 68 small format stores (including Benchmark stores in New Zealand and Houseworks stores in Western Australia) operating across Australia and New Zealand. We also operate eight frame and truss plants and 11 trade distribution centres. We employ about 24,000 people.

OVERVIEW The main challenge facing our business Murdoch University in Western Australia on an ongoing basis is the continued safe to explore energy efficiency opportunities operations of our stores, manufacturing and micro-generation of renewable sites, distribution and support centres in and/or hybrid energy sources for our a sustainable way that lessens our impact warehouses. on the environment by means that are measurable. • $1.55 million to fund the development of In dealing with this challenge, the main carbon offset projects. environmental areas on which we focused Upgrades to our website are helping to our attention during the year were reducing provide accessible and current information our environmental impact, providing our to our customers on low cost options to customers with information on sustainable save energy and water in their homes. living choices and improving sustainability The sustainability message also features within our supply chains. widely in our Adult DIY Workshops, ‘How As part of our 2007 Water Saving and To’ brochures and in-store communications Climate Change strategy we have available at our stores. commenced a two-year $8 million investment programme in new projects Through increased endeavours within our designed to further reduce our environmental supply chain in the last 12 months the impact as detailed below. amount of whole wood product sourced • $6 million allocated for rainwater from plantation and other known low risk harvesting systems being installed in sources now exceeds 90 per cent of timber existing warehouse stores in mainland products purchased. Approximately 10 per Australia (excluding the tropics). cent of these purchases are independently • $450,000 allocated for a research project certified by the Forest Stewardship Council that we have begun in partnership with (FSC) and other recognised schemes. A major achievement has been the exclusive skills, broadening commercial acumen and Compliance 14 purchase of FSC-certified and labelled widening general management expertise. Environmental outdoor leisure timber products as part A systems-based training calendar of our Australian Spring 2007 range and We are not aware of any potential non- coordinates enrolments for face-to-face our acceptance as a member to the WWF compliance during the year with environmental training that occurs in the Australian business, Australia Forest & Trade Network (AFTN) legislation or other environmental with training records managed using the online recognising the continuation of our work to requirements, except as set out below. training record system. improve the credentials of the timber

Bunnings In October 2006, the Department of products we stock. Environmental Primary Industry and Resources in South The two main safety areas on which we Understanding environmental or sustainability Australia commenced investigations into a focused our attention during the year were attributes of a product is integrated in team shipment of prohibited grapevines that had continued implementation of our ‘all injuries’ member product training. This enables team unknowingly been brought into that state. safety focus with stronger emphasis on members to communicate these benefits to A grower operating in a Phylloxera pest risk behaviour in high-risk areas and completing our customers. zone in Victoria had supplied the grapevines. the rollout of the updated BSAFE manual. Immediate voluntary action was taken to recall The manual was implemented across all Water saving techniques and products were the affected product, which was cleared of Australian store operational sites and we have major features in the Australian business and any signs of the pest. In order to prevent any also established new training and awareness in Western Australia and Queensland, close recurrence of this type of incident interstate material and electronic safety incident data associations with the respective state water orders of grapevine material have ceased. recording to support the focus on identified authorities resulted in strong campaigns aimed At the time of this report, we are yet to be high-risk areas. at assisting customers in reducing their own mains water use. notified of the outcome of this investigation. Additional resources have been provided We are continuing to cooperate with for dedicated state safety advisors and As part of the revised waste management investigators. injury management teams supporting services rollout in Australia reported last An information package was distributed to stores in the field to aid them in implementing year, a specific training programme has all Australian stores affected by state-level BSAFE strategies and directing safety been developed and is provided to stores to water restrictions to assist compliance with improvement teams. enhance the use of recycling systems and reduce the environmental impact of waste. the varying requirements for commercial Environmental expenditure premises and nurseries. Water efficiency Health and safety management plans have been submitted to In the past year a significant investment local governments in south east Queensland has been made in research projects and Our commitment to safety training to comply with Stage 5 water restrictions store upgrades relating to sustainability continued with face-to-face training and the affecting stores in that region. and environmental outcomes. Energy and implementation of online training modules for a water efficiency research projects and store manual handling refresher, incident reporting, As a retailer of consumer-packaged dangerous upgrades aimed at increasing energy, water safety observations, BSAFE actions and a goods we have a safety management system efficiency and controlling dust were introduced safety leadership refresher. Other training in place to maintain compliance to applicable during this period. highlights for the reporting period include: legislation and codes of practice. We see Capital expenditure for store upgrades • forklift refresher training module provided compliance as a minimum standard and focused on improving sustainability and to 2,324 team members; regularly review our dangerous goods storage environmental outcomes totalled $5,322,672, risks and improve our internal standards • safety leadership training attended by over with an additional $341,763 spent on where appropriate. 267 management team members; and developing our sustainability strategy and for National Pollutant Inventory (NPI) water and energy research projects. • BSAFE actions rolled out to over 112 team members. This behavioural-based We do not use any of the substances listed programme that helps team members under the NPI during the year and therefore we recognise safe behaviour in their stores is are not required to report under the NPI. being revised to align with the new Safety Health and safety Leadership Programme. We are not aware of any potential non- The BSAFE accreditation for suppliers compliance during the year with health and Training has continued to reinforce acceptable safe safety legislation or other health and safety working practices and inform our supply We have continued to expand our online requirements, except as set out below. partners of the potential hazards specific learning system, which is an effective tool to our stores such as forklifts, manual In October 2006 we pleaded guilty to to provide access to training for our team handling and chemical storage. During the charges brought by Queensland Work Health members. New courses are continually year 3,992 supplier representatives completed Standards in 2002 (reported last year), relating being created in the areas of safety, core the online course. to two incidents where truck drivers were team development skills, product skills and injured at our former Caloundra frame and technical skills. A new online module of Emergency truss site. The matters were jointly heard the team member induction course is now with a penalty of $35,000 imposed and no During the year, 994 team members attended accessible externally via our website for new conviction recorded. emergency management training specifically team members to complete prior to attending designed for our business and conducted by In December 2006, we pleaded guilty the facilitated induction modules. an external training provider to equip them to to charges brought by the WorkCover Strong training investments continue in areas act as part of the store emergency/fire warden Authority New South Wales (reported last aimed at developing entry-level management teams that operate at every site. year). This related to a forklift collision with store racking at our Ashfield store in 2004 useability, the manual exists in both physical An internal OHSE audit of all operational where no one was injured. We were convicted and virtual (intranet) formats with an ongoing sites is conducted twice annually to target 15

on three charges and fined a total of $123,750. investment in the online format to further potential high-risk areas. Audit results are Bunnings enhance ease of use. scrutinised by the relevant senior manager A WorkCover Authority New South Wales and also the SSLT. Management performance investigation continues into an incident at our Our Senior Safety Leadership Team (SSLT) assessments and store bonus payments Tuggerah store in January 2006 (reported continues to provide strategic and proactive remain closely linked to compliance with last year) where a team member was injured advice to the business on high-risk issues. these audits. handling a gas cylinder. At the time of this This is aided by improvements made to report we are yet to receive formal advice as to our internal occupational health and safety We review the audit criteria annually to ensure the outcome of the investigation. We continue (OHS) incident record management system, the scope is relevant to the business needs. to cooperate with investigators to conclude furthering our ability to monitor and report In January 2007 we updated the system for this matter. trends and issues across the business. rating audit exceptions in our operations. A WorkSafe Victoria investigation in relation We capture all injury statistics electronically, We replaced the existing point scoring process to a forklift incident at our Rosebud store in including non-lost time incidents and near- in favour of a system that uses ‘AA’ ratings for March 2007 was concluded with no further miss reports which allows us to analyse early serious behavioural hazards and ‘A’ ratings action being taken. indicators or emerging trends. for serious environmental hazards. ‘B’ and ‘C’ ratings are used to rate moderate hazards and We operate under health and safety legislation Environmental Management low level administrative exceptions. that varies between regions. Our Safety System (EMS) Management System (SMS) known as BSAFE This is a more effective way to draw attention uses risk assessments, safety committees, As primarily a retail business, our key to the importance of the exception and causes hazard inspections, alerts and internal audits environmental impacts result from electricity themselves rather than focusing on achieving to assist in identifying and addressing any consumption and indirect carbon dioxide a total point score result from the audit. areas of risk or non-compliance. emissions, water consumption and waste Since introducing this system an average of management issues. These impacts are the 1.9 ‘AA’ exceptions and 1.3 ‘A’ exceptions We received 49 notices to comply from focus of key initiatives that are driving our 2007 where identified per site. relevant authorities covering safety-related Climate Change strategy and our progress to issues ranging from traffic management, Six-monthly independent storage-racking achieving carbon neutrality by 2015 or earlier, forklift safety, manual handling, housekeeping, assessments are undertaken across all as discussed elsewhere in the report. storage of dangerous goods and provision stores. We have recently engaged a national of risk assessments. Although any breach Other secondary aspects such as storage facility management company to coordinate of safety compliance is unacceptable, we of consumer-packaged dangerous goods maintenance and certification of building recognise that hazards and non-compliance and spillage containment are well managed essential services in Australia. do occur. Our SMS and our Safety through existing internal standards monitored Improvement Teams in stores help us identify within our SMS. Safety Management System (SMS) these. Our best endeavours are employed to Our BSAFE SMS, originally developed in We actively pursue product stewardship rectify safety hazards and non-compliance, 2003, continues to evolve with a focus on opportunities to lessen the environmental with all of the above notices resolved or being sustainable improvement through leadership impact of the products sold in our stores progressed within agreed timeframes. and behavioural change. and have systems in place to manage these Licensing and approvals outcomes. Details of our efforts in this regard We have fully implemented our revised OHS We are not aware of any potential non- are detailed in the ‘Product Stewardship’ strategic plan, broadening the goals from compliance during the year with licensing or section on page 18 of this report. a reactive ‘lost time injuries’ approach to a approval conditions or other requirements, proactive ‘all injuries’ focus by concentrating To support our sustainability framework a except as above in Health and Safety. on five key areas: new Sustainability Reference Group has been • education and awareness; Dangerous goods storage licences, formed to coordinate the key sustainability exemptions or notifications are in place where strategies underway across the business. • policy, procedures and process; required by applicable legislation. We have The group represents Business Improvement, • reporting and analysis; specific safety modules incorporated in our Store Development, Marketing, Procurement, • compliance; and SMS that are based on NOHSC: 2017(2001) Environment and Compliance functions, • reward and recognition. and AS/NZS 3833 (2007) to ensure safe meeting regularly and reporting to the senior storage and handling of these consumer- Through our improved data collection and executive team. packaged dangerous goods. reporting systems we are now able to better Quality system analyse safety incident trends. Enhanced Management systems incident reporting and investigation templates Our OHSE standards are subject to a multi- are used by store management teams for Integrated Management System layered system of self-assessments and audits all safety incidents, including near-misses. Occupational Health, Safety and Environment to effectively identify and remedy exceptions. Incident investigation training has commenced (OHSE) standards are integrated within the Minutes of safety committee meetings, injury for store management teams. This has BSAFE manual to ensure our team members registers and hazard inspection checklists improved the volume and quality of information are completed, reviewed and actioned by the have the necessary tools, processes and regarding safety incidents, particularly in guidelines to perform their jobs in a safe and relevant health and safety coordinators and relation to near-miss incidents. efficient manner. complex, store or senior managers on a daily, Incident reports are provided to area managers weekly or monthly basis as appropriate. We have completed the implementation and regional OHS advisers to ensure that each of the recently revised manual aligned with The updated BSAFE manual includes incident is properly investigated, with each AS4801 to integrate all areas of OHSE that improved processes, controls and checklists significant incident reviewed by the SSLT and are relevant to the business. To improve to maintain the required standards. at Board meetings. A revised safety leadership training programme We maintain a specific risk management 16 is provided to management teams and we system relating to customer incidents and have fully implemented the new online learning product safety matters with all reported module for manual handling training. incidents centrally logged and investigated OUR VISION to ensure appropriate action is taken. We The BSAFE system also covers the safety manage any issues that arise personally of our customers, suppliers and contractors ‘We’re building the best . . . and directly with our customers in the first at our sites. All suppliers who work in stores instance. In a very small number of instances, Bunnings our team makes it happen.’ must be BSAFE-accredited by having passed there is a need for further evaluation of a claim a safety induction programme and receiving a and these are referred to our insurers. Our ambition is to provide our BSAFE badge that must be worn in stores. customers with the widest range Policy of home improvement products Other management systems Our BSAFE vision is ‘Nobody Gets Hurt’. As part of our Australian Trade Practices at the lowest prices everyday, Our target is a consistent yearly reduction in all backed with the best service. Act and New Zealand Commerce and Fair incidents and injuries, with the ultimate aim to Trading Acts compliance programme, our reduce to zero. Our strategy is to concentrate Our team members are the trading terms require suppliers to warrant that on eliminating unsafe acts and conditions. heart and soul of our business. their products are tested to any mandatory Our focus is on prevention of all incidents in standards, fit for purpose and provide Our team’s guiding principles our workplace. Our annual target is at least instructions for safe use as appropriate, prior a 15 per cent reduction annually in all injuries are integrity, respect, teamwork, to going on-range in our stores. until zero is achieved. achievement and innovation. In relation to directly imported product, we Our guiding principles are the We continued to engage and communicate ensure that the overseas manufacturer has keys to our culture and to our sustainability objectives to our teams undertaken appropriate testing and the through annual colour magazine-style extracts achieving our vision. product is certified by a recognised body of the Wesfarmers 2006 Social Responsibility We pursue sustainability within where mandatory Australian standards apply. Report. Newsletters, editorials and regular our operations by striving to We investigate all reported issues of alleged features in our ‘Bunnings Banter’ internal make them socially responsible, inferior product performance and work closely magazine have also been used as a tool to keep our team members informed of our environmentally aware and with our suppliers to address any opportunities sustainability goals. economically viable. for improvement that are identified. The product quality and risk management We engage with the communities systems we have in place to monitor the in which we operate and live and performance of products ensure that we we actively contribute to causes continue to meet our obligations to customers and organisations that benefit and regulators by selling only products that these communities. are fit for purpose and afford a reasonable In May we announced a further $8 million level of safety. investment in new environmental projects We seek to lessen our and commitments. environmental impact in ways Our returns processing and reverse logistics that are measurable including: system tracks product returns and provides We are committed to becoming carbon neutral achieving better and more efficient exception reports where high returns rates by 2015 or earlier. We have explored energy efficiency projects over the past few years, but use of resources; ensuring our are evident. A product isolation and recall procedure is utilised to ensure that potentially more work is needed to accelerate progress suppliers operate sustainably serious incidents are investigated and towards the carbon neutral goal. Two new and ethically; encouraging and appropriate action taken. major projects have been announced: educating customers about environmentally friendly alternatives; and focusing on the ‘reduce, re-use and recycle’ waste management principles.

We value our team members’ contributions, recognise and reward their efforts and provide a fun, satisfying and safe workplace.

By living our values and operating sustainably, we will continue to ‘build the best’ and earn the right to serve our customers tomorrow and into the future.

Our partnership with Murdoch University is looking at commercially-feasible ways to reduce our reliance on grid source energy. From left: Professor John Yovich, Vice Chancellor of Murdoch University, and Bunnings Managing Director, John Gillam, at the university’s Research Institute for Sustainable Energy in Western Australia. Rainwater harvesting tanks at the Maddington warehouse in Western Australia, part of our plan 17 to install tanks in all subtropical mainland stores throughout Australia. Bunnings

• A new research partnership with Murdoch adequate airflow for storage areas. No further out do not rate noise issues as a significant University, to investigate commercially testing has been conducted in stores during environmental aspect. feasible ways to reduce our reliance this reporting period. Our complex managers liaise directly with on current grid-sourced energy. This neighbouring residents to adjust noise levels will include energy efficiency work and Dust relating to traffic management and the volume exploring micro-generation of renewable Wood dust is produced at most stores as a of our public address system whenever this and/or hybrid energy sources for our result of sawing for customers who utilise the becomes a local issue. warehouses. We will invest $450,000 in cut-to-length timber service. Power saws are this project over the next two years. fitted with dust extractors and team members Waste are supplied with protective equipment which • We have publicly invited submissions they are required to wear during operation of Solid waste for grants for carbon offsetting projects the saws. During the year we consolidated the number of that can be conducted over the next two waste service contractors in Australia into two Safe operating procedures to address years with $1.55 million to fund projects major providers. Due to difficulties in obtaining the infrequent cutting of medium density that will create carbon offsets to address data from previous providers, our landfill fibreboard products have been developed our carbon emissions in the short term estimate is based on extrapolating data from and are in place at all relevant sites as part whilst we explore ways to further reduce a 75 per cent sample of sites. This may affect of the BSAFE programme. these emissions. Applications for these the accuracy of data for comparison purposes grants closed on 31 July 2007 and details Odour to last year’s report. Improved accuracy and of the successful projects can be found on site level reporting will be achievable as we Odorous products such as pelletised manures, our website. implement national waste service contracts garden mixes and chemicals are sold in small with SITA and VISY. Over the next two years all of our warehouses consumer-sized sealed packages. Odour from in mainland Australia (excluding the tropics) these storage areas is managed through the Solid waste during the year consisted primarily will be installed with a minimum of 30,000 litre ventilation systems and close attention to of cardboard and plastic shrink-wrap material rainwater tanks and supporting infrastructure housekeeping by removing or fixing broken that is collected on-site for recycling. to allow the irrigation of outdoor nurseries with or damaged packaging. the collected water. Our total solid waste to landfill stream during Greenhouse gas emissions the year was estimated to be 323,122 cubic This $6 million investment will mean a metres, up four per cent on last year. Total reduction of mains water usage by up to The increase in our total greenhouse gas solid waste to landfill per hundred thousand 80 per cent in some stores. Nationally, emissions as reported below is largely as dollars of revenue was estimated to be 6.6 through this project alone we estimate a a result of 13 new warehouse store cubic metres, down 10 per cent on last year. saving of 250,000 kilolitres per year, based openings and increased use of after hours The solid waste volumes are calculated using on average rainfalls. stock filling activities. revised weight-to-volume conversion factors In addition, we are aiming for even higher Our total greenhouse gas emissions were obtained from a leading waste management water self-sufficiency in our new warehouses, estimated to be 182,802 tonnes of carbon contractor and a waste survey commissioned using purpose-built stormwater capture and dioxide equivalent, up eight per cent on last by the Department of Environment and year, and this equates to 3.7 tonnes of carbon recycling systems that have been successfully Conservation in New South Wales. dioxide equivalent per hundred thousand trailed in a number of new stores over the past dollars of revenue, down six per cent on two years. Further to this, we will continue to Liquid waste last year. pursue other water saving initiatives across the Due to the nature of our operations we do business. The greenhouse gas emissions were largely not produce significant amounts of liquid due to electricity consumption at our stores, waste other than normal sewerage systems Air (Atmospheric emissions) distribution centres and support centres discharge. Our waste disposal guidelines Historic data from previous air quality (approximately 82 per cent) and waste do not permit any liquid waste to be assessments conducted around our stores disposed off-site (approximately 13 per cent). discharged to stormwater in accordance indicate low levels of volatile organic with local requirements. compounds, dust and particulates and carbon Noise Clean up and disposal of leaking packages of monoxide emissions that are substantially Environmental impact studies are submitted chemical products is handled in accordance below NOHSC workplace exposure standards. to local authorities as required when a with our hazardous waste disposal procedures The mechanical ventilation systems in warehouse store development is undertaken. where it is contained for removal to an warehouse stores are designed to provide Previous assessments that have been carried approved disposal facility. Recycling initiatives recycling at our Centralised Return Centre product that originates from tropical areas, in 18 Our waste management goal is to further in Melbourne. particular South East Asia. We have adopted an interim measure for these supply chains reduce landfill waste by improving the way We have renewed our signatory status for to achieve independent verification of legality we reduce, reuse and recycle throughout the National Packaging Covenant in Australia of origin as a step towards full certification. our own operations as well as supporting and continue to progress with our action plan Through an association with an independent product stewardship initiatives with our to reduce the impact of our specific product certification body, the first phase of a Timber suppliers for the products that we sell. range and transport packaging waste. Legality and Traceability Verification audit was

Bunnings All major sites have cardboard recycling systems. We estimate that 173,098 cubic We have continued with our industry-leading completed in Indonesia with three suppliers of metres of cardboard were recycled. initiative to reduce single-use plastic shopping Merbau decking products. bags in Australia and in April 2007 launched The results of the pilot audit have indicated A comprehensive review of recycling and the programme in our New Zealand stores. where the greatest potential exists for the waste within our Australian operations was supply chains to achieve third party verified completed in September 2006 resulting in Including New Zealand’s results, since the legal certification and phase two forest level the appointment of the two major providers inception of our 10 cents plastic bag levy in audits of this process have commenced. referred to previously. September 2003, over $177,000 has been donated to the Keep Australia Beautiful Through the increased endeavours within This will enable us to ensure consistent Council and the Keep New Zealand Beautiful our supply chain in the last 12 months we services and volume reporting for all sites and Council. During this period, more than one have been able to increase the amount of to effectively manage our general waste and million reusable bags have also been sold. independently verified whole wood products recycling requirements to reduce our impact to 10 per cent of total purchases. on the environment. Both providers will also We continue to actively investigate the Inclusive of products from independently supply detailed reporting for compliance with feasibility of other product stewardship verified sources, now over 90 percent of our sustainability requirements. opportunities in the areas such as plastic plant pots and rechargeable batteries. timber products are sourced from plantation We are unable to accurately measure the and other known low risk sources. volumes of plastic recycled at our stores In partnership with one of our major waste A major achievement has been the exclusive due to insufficient data from outgoing service providers (SITA) an in-store trial of purchase of Forest Stewardship Council (FSC) service providers. plastic plant pot recycling is underway at our Rockingham store in Western Australia to certified and labelled outdoor leisure timber Product stewardship gauge the level of support from customers and products for our Australian Spring 2007 range. the viability of the service. We continue to undertake product In recognition of our work to ensure our stewardship initiatives and engage our supply To date we have not been able to identify a timber products are sourced from legal and chains with the overall aim of lessening the life commercially feasible model for offering a sustainable forests, WWF-Australia welcomed cycle impacts of products within our sphere rechargeable battery recycling service to our us as a member of the Australia Forest & Trade of influence. customers. We are continuing dialogue with Network. This is a continuation of our work our major suppliers and Sustainability Victoria in mapping supply chains and improving the We continued our support of the 2007 in an effort to gain wider industry support for a credentials of the timber products we stock. Banksia award-winning Sustainability Victoria pilot programme. A workshop with our major PaintbackTM paint recycling programme. Our New Zealand operation also remains suppliers on this issue was held in July 2007. The programme involved specially-designed an active member of the Imported Tropical containers set up inside our Vermont South We are also investigating the opportunity Timber Group, an industry association working warehouse store so customers could drop off with Sustainability Victoria to pilot a ‘Detox collaboratively with the government and unwanted paint and paint cans during normal Your Home’ event where customers can environmental organisations to encourage opening hours. The waste paint was recovered drop off household chemicals, fluorescent sustainable timber procurement. and reprocessed by Dulux into a quality globes, batteries and other potentially We are grateful for the assistance provided recycled fence finish product available through hazardous wastes at specially designed and by both Greenpeace and WWF Australia in our stores, with the steel cans also being supervised collection stations in the car parks developing and implementing this policy. recycled. From its first weekend trial in 2003 of selected stores. to the recent 15 month stint at Vermont South, Land Paintback successfully collected over 200 Timber procurement Flora and fauna tonnes of paint and associated packaging, We have continued to work closely with We support community land rehabilitation and created an estimated 28,000 litres of our suppliers of timber and wood products projects throughout Australia and New fence paint. The pilot is now finished and a towards the goal of ensuring all future Zealand. Building materials and plants have review of the outcomes is being undertaken products supplied to us originate from legal been donated and team members volunteer by Sustainability Victoria. Significantly, the and sustainable forest operations. As a result their time to help restore and beautify local Australian Paint Manufacturers’ Federation of our revised risk-focused approach to our environments. Such projects include taking considers Paintback a key influence leading supply chains announced in October 2006, part in national tree planting day activities and to the development of its own soon-to-be- we now aim to achieve legal verification of replanting trees and shrubs in local wildlife announced national product stewardship tropical timber whole wood products by corridors near stores. scheme. December 2008. Suppliers in this category are required to provide details of their progress We continue our commitment to diverting all Contamination towards this goal as part of our benchmark end-of-life computer equipment from landfill We are not aware of any potential survey for calendar year 2007. Australia-wide. A major recovery project is contamination during the year, except as set running from September 2007 to consolidate Our risk-focused approach to our supply out below. No contamination issues eventuated end-of-life computer equipment for reuse and chains seeks a higher level of assurance on from the store fire reported last year. Horticulturalist Alex Mead inspects a nursery run-off recycling irrigation drain at the Stafford 19 Park warehouse in Queensland. Bunnings

Asbestos Our electricity consumption was estimated to 70 percent of the total water consumption Currently 13 sites are known to contain be 517,508 gigajoules. at our warehouse stores. Our water source asbestos cement material. External risk is primarily scheme water. We are unable to Natural gas assessments and asbestos management measure the quantity of ground water used by plans are in place as appropriate. Natural gas accounted for three per cent of a small number of sites to reticulate landscape our total energy consumption by gigajoule. garden areas or the volume of water recycled Resource usage Our natural gas consumption was estimated onto landscape gardens. to be 22,128 gigajoules. Energy Scheme water irrigation systems for the plant nursery areas are controlled through Energy use during the year related primarily Energy Efficiency Opportunities an automated pre-set timer system. Where to electricity consumption at our stores and Through our parent company Wesfarmers vehicle fuel use. specific restrictions apply to nurseries, we Limited, we are a participant in the have implemented additional procedures to Total energy consumption was estimated to be Commonwealth Government’s Energy ensure we minimise water use and comply 641,882 gigajoules, up 12 per cent on last year. Efficiency Opportunities programme. with regulations. A nursery irrigation working group is well advanced in their investigation Our total energy consumption per one hundred Water thousand dollars of revenues was estimated to into designing a more efficient irrigation model be 13.1 gigajoules, down three per cent on Consumption for our stores. Once the design is determined, last year. Water use during the year related primarily this will be fitted into all existing stores as a to nursery irrigation systems, evaporative standard and incorporated in the new store Energy sources are detailed below. air-conditioning and kitchen/toilet facilities. construction brief. Total water consumption was estimated to Fuel Reuse and recycling be 857.5 megalitres, up 10 per cent on last Petrol, diesel and LPG accounted for year. Consumption per one hundred thousand Our Stafford warehouse in Queensland 16 per cent of our total energy consumption dollars of revenue was estimated to be was one of the first purpose-built sites to by gigajoule. Our petrol, diesel and LPG 17.5 kilolitres, down four per cent on last year. employ many of the water saving systems consumption was estimated to be previously trailed. This includes reuse and The increase in total megalitres of water 991 kilolitres, 607 kilolitres and 1,748 kilolitres, recycling techniques such as rainwater respectively. consumed is attributed to 13 new warehouse harvesting, multiple water circuits, nursery store openings and greater use of nursery run-off recycling and water efficient fixtures Electricity irrigation systems to compensate for and fittings. The sustainable urban design Electricity accounted for 81 per cent of our extended dry weather conditions throughout principles also include car park bio filter total energy consumption by gigajoule. Australia. Nursery irrigation represents 50 to systems that improve the quality of stormwater run-off entering the drains.

Figure 1: Lost Time Injury Figure 2: Number of workers As mentioned previously in this report, water Frequency Rate* compensation claims use is a major part of our climate change 18.3 14.5 11.8 12.4 14.4 1,061 1,176 1,301 1,298 1,331 strategy and major advances in this area will be made in coming years.

Other materials We have a number of programmes designed to generate ideas from our teams on how to grow our business and improve efficiencies. Ideas are also put forward that have an environmental benefit and a number of eco efficiencies have been identified and put into action. We continue with our arrangements to 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 purchase FSC-certified A4 plain copy paper 1 July 03 - 30 June 07 (as at 30 September 07) for use company-wide as reported last year. *Contractor hours and LTIs not included flexible return to work programmes are having Emergency response 20 a positive influence on helping our team Annual fire drills are conducted with members recover from injuries. emergency warden teams employed at During the year our New Zealand operation all locations. Refresher training is held for wardens designed to improve our capacity underwent a Safety Management System to manage emergencies. Lost time audit conducted by the Accident Compensation Commission. We achieved the highest Contingency plans are in place to address

Bunnings Our Lost Time Injury Frequency Rate (LTIFR) performance level rating, resulting in a reduction major incidents or security breaches. was 14.4 (compared with 12.4 last year), see in the Workers Compensation premium. Emergency response guidelines for a range Figure 1, and, during the year, there were of chemical spillages are in place and are 420 LTIs. Our Average Time Lost Rate (ATLR), Hazard and risk accessible at every location. which provides a measure of the severity of such injuries, based on the average number Programmes We endeavour to have an adequate number of of actual days lost due to an LTI was 11.3 Our OHS strategy ensures that the business our team members trained in first aid to ensure compared with 7.5 last year. continues to properly manage its OHS risk. that someone is available to assist at any time Monthly hazard inspections and the internal in each of our stores. We conduct audits to test The increased LTIFR and ATLR are mainly whether adequate first aiders are available and attributable to a rise in incidents and audit are aligned with the new BSAFE manual more team members are trained where required. severity experienced in our frame and truss and revised safety goals. This approach has created a more transparent and manufacturing sites, the majority of which Materials handling and storage comprehensive assessment of how identified were purchased in March 2006. The risks A wide range of material handling devices risk and hazards are being managed in-store. associated with these activities are subject to are provided to ensure that products can be a targeted focus within our OHS Strategic plan Following a hazard inspection or audit, specific loaded and unloaded, stored and transported moving forward. safety actions are documented to address any around the store safely and efficiently. opportunities identified. Driven by the implementation of our updated A range of customer trolleys are available to BSAFE strategy we continue to reinforce the In September 2006 a global retailing specialist move heavy bagged or bulk product, long importance of safe behaviours and choosing conducted a manual handling and ergonomic lengths of timber or plants safely around our to work in a safe manner. The revised ‘all assessment of our store environment. stores. The step-through checkout counters, injuries’ measure adopted last year includes The assessment evaluated manual handling cordless hand-held scanners and barcode Lost Time Injuries, Restricted Duty Injuries and functions in our front-end registers, paint labelling on all faces of bulky products allow Medically Treated Injuries as a more holistic department, receiving, timber yard, cashiers to minimise handling. measure of safety performance. We recorded gardening and out of hours fills. As part of the 1,485 ’all injuries’ from July 2006 to 30 June Electric pallet jacks used in all warehouse assessment, team members were fitted with a 2007 with an All Injury Frequency Rate (AIFR) stores greatly reduce the amount of exertion lumbar motion device to measure lower lumbar of 51.1 compared to 50.8 last year. required to shift pallets on the floor when movement. The data gathered determined how compared to manual pallet jacks. Hydraulic These statistics do not include contractor tasks affected the lower back and provided platform trolleys are also available to assist in hours and injuries. As noted elsewhere in this recommendations for improvement. The five the movement and loading of heavy products report, all suppliers who undertake work in key recommendations were to: like bagged cement or large tins of paint. stores must be BSAFE-accredited by having • increase clearance and access around passed a safety induction programme. As A comprehensive traffic management plan heavy items placed below waist height; we have very few full-time contractors we do incorporating designated unloading bays, not believe that contractor hours and injuries • train cashiers to shift their feet positions forklift curfew and exclusion zones, signage would materially affect our LTIFR. instead of twisting their back during and pedestrian line marking has been transactions; implemented at each of our stores to safely Our strong injury reporting and investigation • implement a pyramid technique for manage the movement of trucks, forklifts processes ensures all safety-related injuries and pedestrians in our yards and drive- removing stock from pallets to avoid over are reported to senior management, with rapid through areas. reaching; reporting of more serious incidents (including near-misses). Safety statistics are distributed • promote the use of available carts for Palletised product deliveries received in and discussed by management and location checking and sorting stock to avoid neck stores from our suppliers are required to meet safety committees each month and, in strain; and minimum safety standards including shrink- wrapping and strapping for certain goods. addition, the Senior Safety Leadership Team • store heavy garden pots on lower shelves. meeting where, as part of the process, root Any palletised products that are stored at our cause analysis reports on significant incidents Action plans are being developed or sites also adhere to prescribed internal safety or near misses are reviewed. Detailed safety have been already implemented for all standards before being placed into racking. recommendations. statistics and serious incident information are Risk assessment reported regularly at Board meetings. We have continued to review and update Risk assessment and analysis processes are Workers compensation Safe Work Procedures (SWP) with additional embedded in our BSAFE system. Improved SWP’s developed for manufacturing plant and There were 1,331 workers compensation accident investigation processes involve store claims reported for the entire business, relating equipment at our frame and truss sites. Trials management teams conducting root cause to occurrences during the year, compared have been conducted regarding the use of analysis and ranking of risks. The BSAFE with 1,298 last year (see Figure 2). Additional safety knives and protective gloves to reduce incident database provides enhanced reporting dedicated injury management roles in each the incidents of minor cuts and lacerations of risk and trends based on root cause, hazard, region, strong management support and from handling stock and gloves are provided to demographic and other factors for more team members to reduce this hazard. detailed risk analysis. This reporting process assists our SSLT to • resource consumption – water, waste and Action groups 21 target our efforts on higher-risk areas and greenhouse gas were noted as areas of We continued an open dialogue with interested implement commercially sound, practical opportunity for improvement. parties in the ongoing implementation of our Bunnings solutions relevant to the level of risk. The key sustainability opportunities identified Timber and Wood Products Purchasing policy, In the last year we have also implemented by stakeholders were generally similar to the including the Greenpeace and WWF Australia online manual handling refresher training, ones identified within our business. These organisations regarding forest practices in the gas-decanting training and developed a areas are all subject to strategies designed to Asia-Pacific region. soon-to-be released forklift spotter course. achieve further improvements in the short term We worked closely with Jon Dee the founder of Planet Ark to support the Australian Employee wellbeing and in the future. launch of the ‘6 Tips to Save the Environment’ With a strong focus on looking after our Feedback/Complaints leaflet, part of Al Gore’s “An Inconvenient people, we have commenced a programme Our philosophy is to proactively establish open Truth” campaign. that offers a unique health awareness dialogue with our stakeholder groups and During the year we received concerns from opportunity to our team members. encourage feedback and comment as to our customers and a wildlife conservation group In April 2007, we launched the new ‘Energy performance. about the impact on animals of certain for Life’ programme that was trailed last year We provide a feedback tool at every location products we sell (specifically rodent traps for all team members. High profile medico through ‘How Did We Do?’ cards, promoted and anti-bird netting). In consultation with Dr John Tickell designed and facilitated the at the front of the store and our website the RSPCA we reviewed glue board and running of the 12-week programme, which also provides customers the ability to give metal-toothed rodent traps and monofilament is provided free of charge and encourages feedback online or contact us directly. anti-bird netting and we have decided to team members to adopt a healthy schedule of We received an average of 1,098 responses delete these products from our range. exercise, nutrition and personal development per month from customers via our website. to enhance their work and personal life. Communication In-store champions co-ordinate local team We also received 77 written complaints Newsletters and reports member activities with 6,572 joining the from customers relating to alleged product A wide variety of internal and external programme since its launch. performance. mediums are used to effectively communicate We are committed to providing a positive Any customer complaints are personally to our stakeholders. work environment by ensuring that it is free followed up by the complex or store manager Internally we produce both a Community from all forms of inappropriate discrimination or a senior manager as required. Report Card and a Health and Safety Report or behaviour. Our anonymous reporting Card to ensure environmental, sustainability hotline known as ‘Bhonest’ is managed We continue to receive a large number of and health and safety issues are kept top of independently by external consultants and letters of thanks and appreciation from mind for our team members. These reports designed to encourage reporting of any illegal, customers, communities, government unethical or unsafe behaviour. agencies and non-government organisations. are also posted on our website for our stakeholders to view. We strongly promote an internal culture Our strategic objectives, such as the Climate supporting feedback from our team members Change strategy, are communicated via across all aspects of our business. A good internal DVDs, newsletters and meetings to example of this is project REDeploy, whereby our team members. team members actively put forward ideas to reduce administrative tasks within the business Our in-house magazine, ‘Bunnings Banter’ to focus the time saved on customer service. recognises team and individual performance Stakeholders within the community and environment and Our stakeholders include our employees, Liaison with authorities helps to reinforce our culture. our customers, our suppliers and other We remain proactive in engaging and We have assisted with the publication of contractors, relevant government agencies, establishing open working relationships with two sustainable living booklets in Handyman local communities in which we operate, authorities that regulate our business and the magazine – the Energy Smart booklet and shareholders in our parent company, non-government organisations that take an (April 2007) and the Water Smart booklet Wesfarmers Limited. interest in our operations. (July/August 2007). Externally, we are continuing to communicate Response to 2006 Stakeholder Survey Our participation in the Australian Standards to customers on market-leading trends The stakeholder review conducted by URS last Technical committee for the review of AS3833 such as water saving and energy saving year identified the following key sustainability for Mixed class storage of Dangerous goods techniques via advertising as well as in-store opportunities: has concluded with the draft standard to be ‘How to’ workshops, ‘How to’ brochures, and • supply chain - issues concerning timber released in late 2007. We also continued our information on our website as detailed earlier procurement, general sourcing of products involvement in a joint retail industry and safety in the report. We also sponsored television and raising awareness of sustainability regulator working group to develop a national programmes ‘Eco Challenge’ (SBS) and the within the supply chain; code of practice for safe storage of poisons ‘Great Water Challenge’ (Channel 7). • OH&S – relating to safety in the store in retail outlets. A draft proposal has been environment encompassing employees, developed for submission to the Therapeutic Website Goods Administration. customers and suppliers; Our website www.bunnings.com.au • product stewardship – relating to educating We have strengthened our relationships with includes information about our operations and raising awareness about life cycle all water authorities around Australia, working for the community, including environmental, impacts of products and sustainable on a number of water saving programmes as safety and health information relating to our alternatives; and detailed earlier in the report. business. It also provides an effective tool to engage customers on reducing network and from support offices have a total of five dollars from every can of 22 environmental impact through sustainable volunteered to regularly donate and help Wash & Wear 101 or Weathershield paint living and product choices. address the shortage. purchased from Warehouse stores to the We have received over 94,000 hits on our At each of our warehouse stores free DIY Australasian Fire Authorities Council for community and sustainability web pages from clinics are offered to adults and children. volunteers’ fire safety training. This year’s customer seeking information on our activities In addition, specially coordinated ‘Ladies campaign raised an additional $230,000, in this area. Nights’ and ‘Ladies Days’ are conducted to taking the total amount raised since the

Bunnings We regularly feature sustainability market introduce women to a range of DIY projects. campaign launched in 2003 to over trends such as water saving, energy saving Children’s workshops are also conducted $1 million donated to fire volunteers across and recycling ideas on our homepage. at schools, community centres and major Australia. The funds raised allow fire community events. fighters from across Australia to attend the This year our New Zealand website was Volunteer Leaders Programme, a five day relaunched and the Australian website now Each of our warehouse stores has a intensive training course, which is aimed contains more regional-specific information. dedicated activity organiser with the role of These innovations allow us to tailor our content managing store activities and local community to develop leadership potential within the to best meet the needs of local markets. involvement. volunteer services. It aims to give leaders Another way we support our local communities new skills to ensure fire and emergency Community support is through our Community Fun Day programme service volunteers are better prepared for We receive and grant many requests for where various community groups, youth the challenges ahead; and financial, labour and material assistance from groups and service organisations are invited to • in New Zealand we support a variety of a wide spectrum of charitable organisations, hold information displays and conduct activities prominent causes including the sporting bodies and schools. Our community at one of our warehouse stores on a weekend. New Zealand Blood Service, ‘Special involvement focuses primarily on local On the Community Fun Day our stores Olympics’, Hospice New Zealand and organisations and we also support regional provide a variety of free family activities such Keep New Zealand Beautiful. and national organisations. During the year, we as face painting, jumping castles, clowns and helped raise funds and contributed more than petting zoos. At the completion of the day, Research $8 million to various charities and community donation cheques for up to $1,000 are drawn We conducted research into electricity use groups throughout Australia and New Zealand. and presented to five lucky organisations using consultants to evaluate and benchmark We also made a huge contribution to represented. consumption across warehouses and identify community projects through the high number This year we were proud to support the suitable sites to pilot energy efficient lighting of paid and volunteer team member hours following programmes within Australia: options. This brief also included assisting dedicated to these projects. • DIY workshops – Water saving weekend in the development of the tender for the At a local level we support many community (21/22 April), Phillips CFL Globe programme Sustainable Energy and Carbon Offset briefs. groups and activities operating in the areas of (NSW), Grey Water workshops, and As reported on page 17 we have undertaken family, community and sustainability. National Composting Week workshops; a new research partnership with Murdoch Local community groups are provided • support of media consumer awareness University to investigate commercially-feasible with a valuable fund raising opportunity by programmes – The Great Water Challenge ways to reduce our reliance on current grid- conducting sausage sizzles at the front of our (Seven Network), Eco House Challenge sourced energy. This will include exploring stores. These sausage sizzles are enjoyed by (SBS), Jon Dee’s ‘6 Ways to Save the energy efficiency and micro-generation of thousands of our customers each weekend Environment and Your Wallet’ awareness renewable and/or hybrid energy sources for and raised over $4 million in the past year for campaign; the community groups that held them. • support of Government initiatives – our warehouses. We will invest $450,000 in this project over the next two years. Our team members have continued to WA International Compost Week, NSW – ‘It’s a Living Thing’ programme; donate their own time to participate in local Scholarships community beautification projects. Many • Bendigo Blitz - During August 2006 we held We are a key supporter of the David Wirrpanda of these projects have had a sustainability our Annual Management Conference in focus, for example the building of a water wise Bendigo, Victoria. The conference was Foundation, a programme that works with garden at a local primary school. attended by 420 of our managers from groups of indigenous young people in Western Australia and New Zealand representing Australia to equip them in readiness for work One example of the thousands of diverse stores, trade facilities, support centres and skills. We provide a customised training activities we undertake across our network the senior management team. Part of our programme for these young persons so comes from New Zealand where Support culture is to contribute to the local they can prepare to work in our stores as Office team members have been donating communities in which we operate so it was team members. their own time to help with the running of decided that we would demonstrate this at Special Olympics events, including swimming that conference by engaging with the Awards and athletics events in Auckland. The team Bendigo community. The Bendigo Council The PaintbackTM recycling programme, of members helped as board keepers, was approached and they put forward which we are a founding partner, was a winner time keepers, marshals and wherever a several community projects. Five projects helping hand was needed to make the were chosen and a variety of work was in the eco innovation category for the Banksia events a success. completed at the Community Centre at Environmental awards 2007. Our team members in Australia and New White Hills Botanic Gardens, the Friends of Zealand also answered the call for assistance Kennington Reservoir as well as two from the Australian Red Cross and the New Neighbourhood Renewal Projects and a Zealand Blood Service. With a decline in roadside clean up project; donors and a real shortage of blood, team • volunteer Fire-fighters - Throughout members from our stores throughout the January 2007, we and Dulux donated CASE STUDY 23 Bunnings

Team members at the Belmont warehouse in New South Wales raising funds for storm victims.

Helping storm victims Our stores in the area were affected significantly by flooding, severe winds and power blackouts. Our team members Severe devastation was caused to performed admirably, with all stores showing the level of the Hunter and Central Coast region community spirit for which we are renowned. This included in New South Wales from storms helping customers have access to phones, recovering vehicles, helping set up emergency accommodation for customers and occurring on the long weekend of assisting customers in getting the resources they needed to 8-11June 2007. They caused extensive clean up. All of this was achieved in most cases without power, fl ooding and damage with more than limited resources, flooding in-store and manual transactions. 300mm of rainfall falling in the region Our team members dealt with extreme circumstances over this weekend effectively and compassionately, whilst at the same over three days. time having to protect their own property.

Fundraising sausage sizzles held at our warehouse stores in New South Wales raised more than $68,000 and plans were put in place with key charity organisations to assist with any special needs groups or individuals that needed help.

Our warehouses closest to the flood areas in Kotara, Gosford and Maitland have commenced community refurbishment projects with three local schools most badly affected.

PRIORITY PRIORITY Achieve carbon neutrality by 2015 or earlier. Maintain our contributions to improve the social wellbeing of the communities in which we operate. PRIORITY Accelerate water saving initiatives. PRIORITY Stronger focus on behaviour in high-risk areas PRIORITY and safety awareness levels generally, in order to 08 Continue work with suppliers to further reduce achieve our target to reduce ‘all injuries’ by at PRIORITIES FOR resource waste within supply chains and develop least 15 per cent. THE FUTURE products with stronger sustainability traits. PRIORITY Continue to proactively provide customers with access to information about environmentally- friendly products and projects that can support sustainable living. BOWEN BASIN. OF ROCKHAMPTON INQUEENSLAND’S NEAR BLACKWATER, 200 KILOMETRES WEST WE OPERATE THE CURRAGH OPENCUTMINE Curragh Environmental Advisor monitor seepage installsawater Amanda Dawson-Evenhuis as part of the water management upgrade at oneofCurragh’s upgradeat management as partofthewater retentiondams. 07 07 PRIORITIES OUTCOMES 25

Full implementation of our Environmental Partially achieved. EMS documents were developed during the year. Staff training will be undertaken in Management System. November 2007 prior to full implementation.

Upgrade water management infrastructure. Partially achieved. A project manager was appointed in 2007. A tender for the construction and implementation of the water management system was issued in September 2007.

Complete all hydrocarbon storage facilities Partially achieved. A project manager was appointed in 2007. The fi rst stage of the project has been now been improvement. awarded and construction began in September 2007.

Zero LTIs. Not achieved. Seven Lost Time Injuries recorded with an LTIFR of three. This is an improvement on the previous year’s 10 and an LTFR of 4.9.

Establish regular stakeholder consultation with the Partially achieved. The Executive General Manager and environmental staff met with local landholders. Blackwater community. A commitment has been made to maintain this contact.

Complete a site security upgrade. Partially achieved. The scope of the security upgrade has been increased. Additional capital required is going through our internal approval process.

Train our employees and contractors in the use of the Achieved. Training for our key users was held in March 2007 and continues to be conducted as required. First Priority database system.

We produce high quality metallurgical coal exported to steel makers and steaming coal supplied for domestic power generation. Our production of over eight and a half million tonnes was approximately four per cent less than the previous year. We employ about 360 people with an estimated 720 contractors.

OVERVIEW The main challenge facing our business to the complexity of the project. A project is the safe operation of our mine in a manager was appointed in March 2007 and sustainable way that minimises any adverse the first stage of the project was awarded to impact on the environment or the local an external provider in June 2007. This will Blackwater community. involve construction of a heavy vehicle wash down facility with hydrocarbon separation In dealing with this challenge, the four main capability. environmental areas on which we focused our attention during the year were the The water management infrastructure ongoing development of our Environmental project was issued for tender in September Management System (EMS), improving 2007. The project involves the installation of our water management infrastructure, infrastructure and monitoring equipment to hydrocarbon storage facilities and allow water to be captured and distributed management of low wall stability issues across the site more efficiently. at Curragh North. Low wall stability issues continued to have a In the last 12 months a great deal of work potential impact on the integrity of the flood has been undertaken to re-establish the protection levee surrounding our Curragh Curragh EMS with several documents North operations. The critical control for reviewed and rewritten. Additional work reducing this risk has been the redesign is still required, including staff input into of the mine boxcut and overburden mining operational procedures and staff training techniques. The excavation technique prior to full implementation of the system. incorporating a buttress wall has minimised Limited progress was made on the low wall instability and geotechnical hydrocarbon storage facilities project due monitoring will continue. Confi ned space and permit to work 26 operations during a dragline shutdown. Curragh

The two main safety areas on which we covered technical aspects of the database concealed services, project isolation, access focused our attention during the year were and incident investigation training including to high voltage conductors and welding and the introduction of the First Priority Enterprise how to conduct a good investigation, how to cutting in hazardous locations. (FPe) database and a review of our Isolation establish a sequence of events and how to Training in Zero Incident Process (ZIP) Procedures. develop an action plan to prevent the incident continued for employees and contractors from happening again. Role playing was an In March 2007 we began the rollout of the FPe this year. Fifty-seven employees attended important part of the training. Upon completion database to replace our existing database, Module 1, 70 employees attended Module 2 of the theoretical part of the training, Sitesafe. The database allows immediate and 125 contractors attended the contractor participants were shown how to record their recording of incident and injury data and was one-day programme. implemented as part of the Wesfarmers Energy investigation findings in the FPe database. Health, Safety and Environment (HSE) Project. Training was also held for the FPe key users Emergency To assist us with the rollout we employed an over a three day period. The role of a key user A six-member team competed in the FPe facilitator who continues to support the is to review the event entered into FPe and Australasian Road Rescue Skills Challenge mine with troubleshooting and training. return to the investigator if the event details are 2007 in Perth in June. Twenty teams In May 2007 a committee comprising a cross not completed. competed and the Curragh team finished first overall. Our previous placing in the 2006 section of the workforce was formed to review As at 30 June 2007, 66 people had completed competition was twelfth position from our Isolation Procedures. The committee the FPe two-day course and eight key users 23 teams. Further details are contained in the resolved that an initial audit was required to had been trained. identify the necessary upgrade of our hardware Case Study on page 31. Five year refresher training was conducted in prior to the introduction of a lockout system. Training for members of the Crisis The audit identified points of isolation and May 2007 and was attended by 15 employees Management Team (CMT) was held in their compatibility with the use of padlocks. and permanent contractors. Topics covered November 2006 with a desk top exercise ‘Wet Once the necessary upgrade of the equipment included our Safety Management System Pit’ conducted on 5 December 2006. The to accept a padlock has been completed, (SMS), environmental management, positive aim of Exercise Wet Pit was to test our crisis we can then start building procedures for and effective isolation, fire safety and use of management capability in a realistic, rewarding the use of these padlocks for the control extinguishers, mine traffic rules, basic first and challenging environment focusing on the of energy sources and deliver positive and aid/resuscitation, heat stress and working CMT and its response to a credible scenario. effective isolation. at heights.

Courses covering risk management, Compliance accident investigation and communications Environmental were conducted for employees requiring We are not aware of any potential non- supervisory skills and 21 attended this training. compliance during the year with environmental A two-day Senior First Aid course was legislation or other environmental requirements, attended by three employees and some except as set out below. Training family members. We have reported to the Queensland Environmental Confined space training courses and Environmental Protection Agency (EPA) one Training was delivered through site inductions re-certification courses delivered by external incident relating to low wall stability issues at for contractors and new staff and five year providers were conducted during the year as Curragh North. refresher training for existing staff. Specific required. Re-certification is required every topics covered included environmental The Curragh Plan of Operations for Curragh 18 months. Seventy-nine employees attended management, waste management, water and Curragh East mines was due to expire the re-certification courses and 23 completed management and disturbance to land. in June 2007. An independent audit of the full course. compliance to the plan was undertaken in Health and safety Permit to Work Officer courses were also held May 2007 in order to develop a new Plan Two-day training courses the FPe database during the year with 28 attending. The course of Operations. The plan is a compliance were held for our site users. This training focused on working in confined spaces, document required by the EPA. It outlines how we will comply with the conditions of our Management systems environment and to ensure compliance with Environmental Authority and identifies any legislative requirements. We monitor by 27 Environmental Management System changes to the operation over the timeframe ‘fallout’ and ‘high volume methods’. Curragh (EMS) of the plan. The plan was submitted to the EPA Fifty-nine of 329 dust fallout samples collected within the required timeframes and has now Our EMS was not fully implemented as indicated dust concentrations greater than been approved. planned. In the last 12 months, a great deal allowable levels. On further investigation, we of work has been undertaken to re-establish The Curragh North Plan of Operations remains identified that 80 per cent of these potential our EMS with several documents reviewed current until June 2008. non-compliances were attributable to and rewritten. Further work is still required, natural contamination or corruption of the National Pollutant Inventory (NPI) including staff input into operational samples validity. procedures and staff training prior to full Emissions notifiable under the NPI were implementation of the system. Additionally a No exceedances were identified from estimated for particulate matter, oxides of desktop review of the EMS will be conducted monitoring using our high volume samplers nitrogen and carbon monoxide. Data for the from 38 samples collected. 2005/2006 reporting period was submitted to gauge the effectiveness of the EMS against internationally recognised environmental to the EPA. Detailed information is available at: Greenhouse gas emissions www.npi.gov.au. All of our substance management standards. The findings of the audit This is the second year that we have emissions for last year were ranked by the will also be used to further improve the EMS. participated in the Commonwealth NPI as ‘low’. Safety Management System (SMS) Greenhouse Challenge Plus Programme. Health and safety The SMS and Standard Operating Procedures During the year we engaged an external consultant to carry out a Level 2 energy audit We are not aware of any potential non- (SOPs) are ‘living’ documents – that is, which recommended reduction strategies. compliance during the year with health and changes are made as issues are identified by safety legislation or other health and safety audit procedures, employee consultation and We will submit our 2006/2007 report during requirements. risk assessment processes. the 2007 calendar year detailing our progress under the programme. Each new employee or permanent contractor Other management systems who does not have a current Coal Board The 2005/2006 greenhouse gas emission was Medical (CBM) is required to undertake the In March 2007, our Sitesafe database was incorrectly estimated. The reported amount of assessment. Non-permanent contractors are replaced by the FPe database. As with 792,357 tonnes of carbon dioxide equivalent required to have a health assessment as part Sitesafe, FPe allows immediate recording was adjusted to 732,534 tonnes of carbon of incident and injury data. The database of the induction process. Arrangements for dioxide equivalent. This equated to 5.13 is accessed electronically, with standard assessments for existing employees are to be kilograms of carbon dioxide equivalent per forms being completed online by the person reviewed in the coming year. BCM equivalent. The 2006/2007 comparative recording the incident or, in the case of We measure compliance with our alcohol calculations use the amended emissions. an injury, by the site paramedic. Relevant policy by testing all personnel entering the information for each incident and accident Our total greenhouse gas emissions were mine site on a particular shift. The shift is is recorded and immediately stored in the estimated to be 774,179 tonnes of carbon randomly nominated by the Executive General database. Statistical information can be dioxide equivalent, up almost six per cent on Manager. Personnel attending the site last year. This equates to 5.2 kilograms of induction are also breath-tested. A total retrieved from the database to indicate carbon dioxide equivalent per BCM equivalent, of 64,423 tests were conducted with 132 trends and problem areas. up 1.3 per cent on last year. positive tests. Our WorkCover-accredited injury and illness Everyone attending site induction and all those rehabilitation policy and programme are Greenhouse gas emissions on site are largely completing CBMs are drug-tested. Random communicated to new employees at induction. attributable to fugitive emissions (52 per cent), drug testing is carried out via a computer- Our rehabilitation programme is provided to electricity (26 per cent), diesel fuel (22 per generated list. Ten tests per nominated shift employees who have either work or non-work cent) and explosives and waste disposal are conducted with the shifts being selected related injuries or illnesses. (less than one per cent), see Figure 1. by the Executive General Manager. Policy Noise The total number of tests carried out during the year at site inductions was 1,875, with Our Environmental Policy and our Health Compliance with noise conditions was 51 positive tests recorded. A total of 327 and Safety Policy are displayed in prominent achieved during the year. Two new permanent random drug tests were conducted and places throughout our operations. blast monitors have been placed at strategic 11 were positive. The majority of positive drug Both policies also appear on our intranet. locations around the mine to allow continuous and alcohol readings were recorded against Our Health and Safety Policy is circulated to all monitoring of noise and vibrations generated our contractor workforce. personnel attending the mine site induction. from our blasting activities. Those people returning positive results to Other emissions either alcohol or drugs screening were subject to disciplinary procedures which range We have not yet prepared our report to the NPI from counselling to, ultimately, dismissal as for the 2006/2007 reporting period or finalised provided by our Safety Management System. our data estimates, however in 2005/2006 our three most significant emissions were Licensing and approvals Air (Atmospheric emissions) particulate matter 10.0 um (4,500 tonnes to We are not aware of any potential non- air), oxides of nitrogen (2,300 tonnes to air) and compliance during the year with licensing or Dust carbon monoxide (980 tonnes to air). Further approval conditions or other requirements, During the year we continued to monitor information is available at: www.npi.gov.au. except as set out below or above under ambient dust conditions to expand our All our substance emissions for last year were ‘Environmental’ or ‘Health and Safety’. understanding of potential impacts on the ranked as ‘low’ by the NPI. Waste hydrocarbon-contaminated soils and the 28 recovery of scrap steel which totalled 1,105 Figure 1: Greenhouse Gas Emissions Solid waste tonnes, down 15 per cent on last year. (percentage) Solid waste during the year consisted primarily of packaging, plastics and other solid materials. Land Our total solid general waste stream during the Flora and fauna year was estimated to be 5,842 cubic metres, We continue to sponsor flora and soil Curragh up 26 per cent on last year. Of this amount, erosion studies on areas of rehabilitated we estimated that 30 per cent was recycled land emergence. and 70 per cent was disposed of as landfill, The flora study project to monitor species see Figure 2. emergence being carried out by the University Total solid waste disposed of to landfill per of Queensland’s Centre for Mined Land Million BCMeq was estimated to be 27.3 cubic Rehabilitation reported last year will continue metres, up 35 per cent on last year. for another five years.

Liquid waste The soil erosion project being undertaken for us by the Queensland Department of Natural Liquid waste during the year consisted Resources and Water as reported last year primarily of waste oil and oily water. has continued. The project will be completed Fugitive 52% Diesel 22% Our total liquid general waste during the year in 2009. At the conclusion of the project, Electricity 26% Explosives & Waste >1% was estimated to be 449,800 litres, almost 15 years of data will have been collected, the same as last year, see Figure 3. Our making it one of the longest running erosion liquid waste is disposed of to a licensed studies completed in Queensland. The The design for an entombment cell for the disposal facility. knowledge we gain from these research contaminated soil from the former cattle dip Solid hydrocarbon wastes such as heavy programmes enables us to develop a greater site has been completed. The containment grease, oily rags and hydrocarbon- understanding of the likely long-term success process will be undertaken in late 2007. contaminated soil with a total volume of of our land rehabilitation efforts. Resource usage approximately 147,600 litres was also disposed The first stage of research into the spatial of in accordance with the EPA’s requirements, distribution of the ornamental snake, an Rehabilitation see Figure 4. endangered species under Commonwealth Mining began in 1983 and since then 6,048 Total liquid waste generation per Million legislation, was conducted during the year. hectares of land have been disturbed by BCMeq was estimated to be 3,017 litres, At this stage, no ornamental snakes have been mining and associated activities. Revegetation down five per cent on last year. discovered on the mining lease. commenced in 1987 and 979 hectares We continued our commitment to manage (or 16 per cent of the disturbed land) have Recycling initiatives three areas of brigalow woodland land now been rehabilitated. Recycling initiatives undertaken this year classified as endangered regional ecosystems During the year, 289 hectares of land were included investigating options to trial the under the Commonwealth Environmental disturbed by mining and associated activities recycling of gloves and fluorescent light bulbs. Protection and Biodiversity Conservation and 60 hectares were rehabilitated. We have continued to extend the life of our Act 1999. These commitments have been heavy earthmoving tyres through improved made under specific management plans Energy tyre and operational management and in agreement with the Commonwealth Energy use during the year related primarily to better maintenance. Department of Environment and Heritage. the operation of draglines, our Coal Handling We are also investigating the use of waste Contamination and Preparation Plant (CHPP) and diesel- oil in the manufacture of ANFO for our Contaminated sites continue to be monitored operated equipment. on-site explosives. and managed with our on-site landfill being Total energy consumption was estimated to Other ongoing initiatives include our checked every six months to identify any be 2,882,302 gigajoules, down 1.9 per cent on on-site land farm to manage and remediate contaminant migration issues. last year.

Figure 2: General Waste Figure 3: Liquid Waste Figure 4: Solid Hydrocarbon Waste (cubic metres) (litres) (litres) 4,069 1,773 202,000 317,000 553,610 453,600 449,800 84,930 84,965 113,365 112,545 147,600

Disposed to Recycled 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Landfi ll Our total energy consumption per million This water is used by the CHPP and for dust resolved that an initial audit was required to BCMeq was estimated to be 19,337 suppression on haul roads. Water fill points identify the necessary upgrade of our hardware 29

gigajoules, down six per cent on last year. for trucks engaged in dust suppression are prior to the introduction of a lockout system. Curragh . Energy sources are detailed below. located at five of the retention dams The audit identified points of isolation and their compatibility with the use of padlocks. We have continued to focus on reducing Fuel Once the necessary upgrade of the equipment the use of purchased water. The water Diesel accounted for 76 per cent of our to accept a padlock has been completed, management infrastructure project was issued total energy consumption by gigajoule. we can then start building procedures for for tender in September 2007. The project Our diesel consumption was estimated to be the use of these padlocks for the control involves the installation of infrastructure and 56,575 kilolitres. of energy sources and deliver positive and monitoring equipment to allow water to be effective isolation. Electricity captured and distributed across the site more efficiently. Electricity accounted for 24 per cent of Emergency response our total energy consumption by gigajoule. Discharges to surface and Our Emergency Response Team personnel Our electricity consumption was estimated to are trained to respond to on-site emergencies. groundwater be 189,173,635 kilowatt hours. Consultation with our external training We had no discharge of mine pit water off-site providers continues in order to improve our Other materials during the year. crisis management capabilities. Explosives were a major consumable with 21,016 tonnes used during the year, a Materials handling and storage decrease of 19 per cent on last year. The database used to register chemicals is ChemAlert. Our employees and contractors Energy Efficiency Opportunities are informed about the system during their site Through our parent company, Wesfarmers induction. The database is accessible via our Limited, we are a participant in the intranet and is updated when chemicals are Lost time Commonwealth Government’s Energy either approved for use on-site or removed Efficiency Opportunities programme. Our LTIFR was three (compared with 4.9 last from site. year) see Figure 6 and, during the year, there Water were seven LTIs. Our Average Time Lost Rate, Limited progress was made on the which provides a measure of the severity of hydrocarbon storage facilities project, due Consumption such injuries, was 12 (compared with eight to the complexity of the project. A project Water use during the year related primarily last year). These statistics include contractor manager was appointed in March 2007 and to coal washing in our CHPP, suppression hours and injuries. the first stage of the project was awarded to of dust on our haul roads and water for civil an external provider in June 2007. The first construction purposes at Curragh North. Workers compensation stage will involve construction of a heavy vehicle wash down facility with hydrocarbon Our main source of water is via allocated or There were eight workers compensation separation capability. The second stage will purchased water. Total water consumption claims reported, relating to occurrences during see improvements to workshop, lube bay was 3,128 megalitres, down 1.9 per cent the year, compared with seven last year (see areas, light vehicle fuelling, and wash facilities on last year, see Figure 5. Last year’s water Figure 7). Last year we reported six workers and the waste oil storage facility. consumption was incorrectly reported as compensation claims. The actual number 3,388 megalitres, instead of 3,188 megalitres. for 2005/2006 was seven as one claim was Risk assessment received late. Our total water consumption per million A risk assessment form is available to all BEMeq was estimated to be 21 megalitres, Hazard and risk employees and contractors across the mine down six per cent on last year. site. The form is designed for ease of use Programmes and is used where necessary to do a risk Reuse and recycling In May 2007 a committee comprising a cross assessment on a task or to perform risk A water management system of 21 retention section of the workforce was formed to review assessments on SOPs. It accords with dams is used to collect water. our Isolation Procedures. The committee AS 4360.

Figure 5: Water Purchased Figure 6: Lost Time Injury Figure 7: Number of Workers (megalitres) Frequency Rate* Compensation Claims* 3,026 2,611 2,476 3,188 3,128 1.0 2.7 2.9 4.9 3.0 4 5 15 7 8

2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 1 July 02 - 30 June 07 (as at 30 September 07) *Contractor claims included *Contractor hours included Representatives of the Kangoulu and the Ghungalu people with Curragh staff during negotiations on the Curragh North Water Reserve Native Title Agreement.

30 Curragh

Employee wellbeing local communities in which we operate, the Executive General Manager at business An influenza inoculation programme was and shareholders in our parent company, update forums. again offered to employees and 62 employees Wesfarmers Limited. had injections. This was carried out by our Website During the year we continued cultural heritage nominated medical adviser who also visited Our website www.curraghcoal.com.au assessment and mitigation at both our the site during the year to consult with includes information about our operations for Curragh and Curragh North operations. employees and management. the community, including environmental, safety A physiotherapist is available for employees Response to 2006 Stakeholder Survey and health information relating to our business. for work and non-work-related injuries. We reviewed the 2006 Stakeholder Survey The physiotherapist is now also available Liaison groups and found that although we rated positively on-site one day per week for treatment of work We are a corporate member of the Queensland on the measured criteria, one opportunity and non-work related injuries or for ergonomic Resources Council, Fitzroy Basin Association, identified by the survey was to formalise our work station assessments. Greening Australia and the Central Queensland engagement with stakeholders. We hosted our Our employees and their families were offered Mine Rehabilitation Group. local landholders for an informal meeting to the chance to attend an Early Detection meet our new Executive General Manager and Skin Cancer Clinic conducted by Skin Patrol Community support environmental staff. A commitment has been from 30 October – 5 November 2006. Three We made community contributions and made to continue these forums to improve hundred and seventy-seven people attended donations of $610,535 during the year. communication channels with our neighbours. the clinic. Major donations we made in the 2006/2007 Skin Patrol made several recommendations Feedback/Complaints financial year were to the Blackwater as a result of the clinic and employees were We received one formal complaint during the International Coal Centre and to the PCYC able to access a full copy of the report on the year. This related to the use of monitoring Gym Project. In addition to these major site intranet. equipment on a local landholder’s property. contributions, we also made numerous One of the recommendations was to use An investigation into the concern was donations to the many sporting, cultural and Bureau of Meteorology UV Index information undertaken and the sampling process was education facilities in Blackwater. to inform workers of particular risks. This updated. Complaints are formally recorded in information can now be found on our site our FPe database and referred to appropriate Research intranet. employees for attention and implementation of We continue to support industry research In May 2007 health assessments were offered corrective action if necessary. projects through the Australian Coal to all our employees. These assessments were Association Research Programme. conducted by an external provider ‘Corporate Liaison with authorities Bodies’. The assessments were followed up We regularly liaise with the Department of Awards with an in depth consultation to develop an Mines and Energy, the Department of Natural In a joint submission with Thiess we won action plan to suit the individual. Resources and Water, and the EPA. a High Commendation in the Resource One hundred and thirty-one employees Development category of the 2006 attended the initial health assessments, with Communication Engineering Excellence Awards for the the in depth consultations continuing. Newsletters and reports Curragh North Project. Monthly health and lifestyle brochures are sent to employees’ homes.

During the year we introduced a monthly newsletter – Carbon Copy – which is used to communicate information about our mine site Stakeholders including new starters, departures and other relevant information. Our stakeholders include our employees, our customers, our suppliers and other Significant milestones, statistics and relevant contractors, relevant government agencies, information are passed on to employees by CASE STUDY 31 Curragh Emergency response team members competing at the 2007 Australasian Road Rescue Challenge held in Perth, Western Australia.

Road Rescue Challenge success In December 2006 nominations were called for the 2007 challenge in Perth. The team got together for one week before Our team achieved great success in the competition to fine tune their skills. While the team did the 2007 Australasian Road Rescue not spend a lot of time training together, training is conducted Challenge. A fi ve-member team throughout the year for all Emergency Response Team members. took part in the 2006 competition in The challenge consisted of three parts - Controlled Rescue, Adelaide and was placed twelfth. Entrapped Rescue and Immediate Rescue. Included in the overall score were points for Team Leader, Best Technical Team and Medic.

Our team placed first in the Immediate Rescue and the Controlled Rescue exercises as well as taking out best Technical Team and Best Medic, making us the Overall Champion Team.

PRIORITY PRIORITY Zero LTIs. Review existing Isolation Policy and implement changes. PRIORITY Review existing Fatigue Policy and PRIORITY implement changes. Desktop audit of the EMS and implement changes.

08 PRIORITY PRIORITY PRIORITIES FOR Continue upgrade of hydrocarbon storage facilities. Development of a Stakeholder Forum. THE FUTURE OF PERTH IN OF PERTH WESTERN AUSTRALIA. IN COLLIE, ABOUT 200KILOMETRESSOUTH WE MINECOAL AT THE PREMIER OPENCUT Premier Coal Plant operator Rory McDonaldbeingfi Rory Plant operator tted withadustmonitorby Occupational Hygiene Consultant Matt Davies. HygieneConsultantMatt Occupational 07 07 PRIORITIES OUTCOMES 33

Achieve full environmental compliance. Not achieved. We experienced one water discharge. Two blasts were reported to the Department of Environment and Conservation (DEC) as being above our noise limit. No environmental fi nes imposed or prosecutions initiated against us.

Maintain ISO14001 EMS standard. Achieved. Successfully passed surveillance audit.

Develop environmental awareness and knowledge Achieved. A new induction package incorporating information about environmental issues impacting on our site across company. has been shown to all employees.

Further improve hydrocarbon management. Achieved. Reduction in oil consumption per BCMeq of 22.9 per cent.

Progress ‘value-added’ rehabilitation and mine Achieved. We continued to progress the relinquishment of Lake Kepwari to the community. closure outcomes.

Improve soil monitoring and rehabilitation prescription. Achieved. A new geochemical study undertaken during the year confi rmed our understanding of soil chemistry. Seeding of 172ha of disturbed mining land with native species was completed.

Maintain community consultation processes. Achieved. Stakeholder meetings held.

Halve our LTIFR with an ultimate aim of zero LTIs. Not achieved. We incurred three LTIs this year compared with fi ve for 2006. However we reduced our LTIFR from 8.3 down to 5.4.

Implement Fitness for Work programme. Not achieved. Progress delayed due to changes to Australian Standards and governmental guidelines. Revised Fitness for Work Standards are being developed in consultation with our unions for likely implementation in December 2007.

Upgrade our internal safety audit and inspection system. Achieved. Revised and implemented inspections and audits.

Align Safety Management System (SMS) to an Not achieved. Australian Standard 4801 selected as framework for compliance. Preliminary implementation auditable standard. audit conducted.

During the year we sold three million tonnes of low-sulphur, low-ash steaming coal, primarily to major power generating stations. We also supply coal for a variety of industrial and agricultural applications. We employ about 275 people engaged in overburden removal, coal production, plant maintenance and site rehabilitation.

OVERVIEW The main challenges facing our business Waste management included the on an ongoing basis are maintaining a minimisation of landfill and maximising safe operation and minimising any adverse recycling of wastes such as hydrocarbons, impact on the environment or the local metals, tyres, paper, cardboard and plastics. community. Total solid general waste was almost In dealing with this challenge, areas which identical in quantity to last year, being less we focused our attention on during the than a one per cent increase. We achieved year were noise management, waste 86 per cent recycling efficiency, just short of management, rehabilitation and mine our 90 per cent target. closure outcomes. An additional 172 hectares of rehabilitation We continued with the maintenance of our was undertaken and this was offset by noise management practices. Equipment 42 hectares of land disturbed by mining noise did not raise concern for our and associated activities. neighbours and our blasting performance was predominantly within compliance The two main safety areas on which we requirements, with two exceptions. focused our attention during the year were Environmental training for new employees.

34 Premier Coal

the First Priority Enterprise (FPe) system construction in October 2006 of a programme. Changes to Australian Standards implementation and progress in the demonstration char plant, which produces char and draft guidelines issued by the Western implementation of our Fitness for from coal. The aim of this process is to explore Australian Department of Consumer and Work programme. the possibility of developing our product into Employment Protection (DOCEP) impact fuel and carbon for metallurgical markets. on this programme. Management and Development of the FPe safety and health Commissioning of the plant is ongoing. union representatives continue to meet management system continued as a to develop revised standards to progress Wesfarmers Energy and Wesfarmers Coal the implementation of the programme. It is initiative. Progress was made in relation anticipated that implementation will occur to the implementation of our Fitness to by December 2007. Work programme. Management and union representatives are developing revised We continue to run a monthly physiotherapy standards to progress the programme’s clinic as part of our injury management implementation which is expected by programme. This programme is aimed at Training December 2007. musco-skeletal injuries incurred at work and Environmental off-site, ensuring that these injuries are not Additionally, we began a voluntary health aggravated and advice is given covering assessment programme aimed at fitness Environmental training is conducted at induction issues such as task modification and awareness. One hundred and five people of new employees and contractors. Safety strengthening exercises. from our workforce undertook a health meetings provide an opportunity for additional assessment. General health issue statistics training and job-specific environmental training In addition to the training mentioned above, were made available to our occupational is conducted as necessary. Oil spill response our Safety and Health Representatives health nurse and are currently being training was conducted by a specialist and some supervisors attended a DOCEP considered by management. consultant for the emergency response team Resources Safety ‘Mine Safety Road Show’. and environmental staff. A new induction DVD This was a seminar on the latest development We updated our general mine Health, Safety incorporating information about environmental in the changes in the Mine Safety and and Environment (HSE) induction package, issues impacting on our site has been shown Inspection legislation and approaches to which included producing a professional to all employees. managing risks in mines. These included quality DVD. This will improve employee/ investigations, hazard identification and contractor awareness of HSE issues. Health and safety reporting, working hours code of practice, As part of our market research and Progress was made in relation to the machinery hazards, provision of personal development process, we completed implementation of our Fitness to Work protective equipment to hired workers, and a brief update on dangerous goods with casualties. This tested our internal and The 131.6 dB(L) reading occurred during a safety legislation. external emergency response capabilities. surface blast under heavy cloud conditions 35

Overall the exercise was a success. and this may have exacerbated the blast. As Premier Coal Eight of our employees attended the Chamber mentioned previously there was significant of Minerals and Energy 2007 Occupational We met with the Collie Local Emergency background noise during this recording. Safety & Health conference which included Management Advisory Committee (LEMAC) as No environmental fines were incurred or the National Mine Safety Innovation Awards part of an annual review of its emergency plan. prosecutions initiated against us. presentations. Emergency procedure training for forward We continued the training competency controllers was conducted for maintenance National Pollutant Inventory (NPI) package for access/egress onto mobile personnel. Emissions notifiable under the NPI were equipment and the adjustment and use of estimated for the 2006/2007 reporting We continue to maintain a level of first aid mobile equipment seating. The ‘Access/Egress period and submitted to the DEC. Detailed response skills amongst our employees by and Seating Posture and Adjustment’ training information will be available on their website making first aid courses available during for mobile equipment operators is conducted in due course at www.npi.gov.au. All our working hours. The total number of employees one-on-one by a physiotherapist/ergonomist. substance emissions for 2005/2006 were with current certification stands at 31. Of these Each operator needs to prove competency ranked by the NPI as ‘low’ and we expect 16 hold St John Ambulance Occupational as part of the training in access to and egress 2006/2007 to be no different. First Aid certification, while the remainder have from large heavy machinery, as well as Senior First Aid certification. instruction on seat adjustment and positioning Health and safety as part of the pre-start set up. This training is Compliance We are not aware of any potential non- necessary from time to time to reinforce safe compliance during the year with health and working procedures and prevent injury. Environmental safety legislation or other health and safety We are not aware of any potential non- requirements, except as set out below. The Chamber of Minerals and Energy compliance during the year with environmental newsletter ‘First Watch’ featured an article on We operate under the requirements of the legislation or other environmental our operator access/egress, seating training Mines Safety and Inspection Act 1994 and requirements, except as set out below. and awareness programme. Mines Safety and Inspection Regulations 1995. During the year we had one non-compliance Training was conducted for new apprentices in Machinery inspectors from the DOCEP with an elevated manganese level in a manual handling, access/egress and the Stop, Resources Safety Division conducted a discharge from the Western 5H mine lake due Think, Assess, Act and Review (STAAR), general mine inspection, in particular the to higher than expected water levels. We have a personal risk assessment programme. maintenance areas and classified plant been filling this lake with water as part of our records. Some improvements were needed rehabilitation strategy. This was similar to the Emergency including a handwritten version of our discharge reported last year. Based on the fact Emergency Management Plans are maintained electronic records of the Classified Plant that the soil testing downstream undertaken at our site and exercises are carried out on Record Book. This has since been rectified. last year showed that the discharge had no an annual basis. These procedures specify effect on the environment we did not undertake An improvement notice was issued in relation contingencies for responsibilities and actions further testing as a result of the discharge to the demonstration char plant which related in the event of an emergency or crisis. this year. To the best of our knowledge and to mainly housekeeping and other minor items. The membership of our mine rescue understanding, this year’s discharge had no We have rectified the non-compliance as emergency team stands at 14 and during the effect on the environment. The Department specified within the required timeframe. year we conducted a series of refresher and of Environment and Conservation (DEC) was In accordance with regulatory requirements, update courses to maintain their emergency advised and has taken no action. we continued our Mine Workers Health response skills. The DEC was informed of two blasts during the Surveillance programme and renewed We conducted a Hydrocarbon Spillage Survey year. One blast exceeded the 125 dB(L) limit at certification of hearing testing equipment. and Controls Assessment as a prelude to 126.2 dB(L) while another blast was reported at All new mine rescue team members were training our mine rescue team and supervisors 131.6 dB(L) however there is some doubt as to medically and physically assessed and to deal with potential hydrocarbon spills. the cause of the higher exceedance. considered fit to be involved as team members At the time of the higher exceedance there Our mine rescue training this year involved to the requirements of the DOCEP Resources was considerable background noise, with wind a number of scenarios, including the use of Safety Division. over the recording microphone at the same breathing apparatus, vehicle extraction, fire time as the blast. The blast occurred at 9.30am We maintained communication and fighting, advanced first aid, environmental and the monitor was triggered 22 times at consultation with our employees through response, rescue from height and hazardous 131.6 dB(L) between 9.26am and 9.54am 12 elected Safety and Health Representatives materials procedures. Part of the training due to wind passing over the microphone. on our Occupational Health and Safety routine also required regular checks of all Contributing factors to the blast exceedances Committee. Three newly elected Safety emergency and fire fighting equipment. are the fact that mining operations have and Health Representatives attended an Our mine rescue team was runner up in the progressed closer to the blast monitor. introductory course conducted by the Chamber of Minerals and Energy’s South West The 131.6 dB(L) blast exceedance was also Industrial Foundation for Accident Prevention Regional Emergency Skills Competition. associated with heavy cloud cover at the time in Bunbury. The team also won the first aid skills event and of the shot. Cloud cover helps to trap the noise The annual audit of our chemicals inventory was equal first in the team skills event. and these situations can be difficult to avoid. and ChemAlert database was completed We conducted a simulated emergency of a The 126.2 dB(L) blast occurred around a and updated, including a reconciliation of crisis nature at the demonstration char plant. geological fault and there was difficulty Material Safety Data Sheets stored in hard The simulated incident involved a major fire appropriately stemming the hole. copy manuals across our site. The ChemAlert Matt Davies, Occupational Hygiene Consultant conducting a noise survey. Management systems to cover the operational phase of the plant. 36 This will also capture any outcomes resulting Environmental Management System from the upcoming emissions. (EMS) We have a certified ISO14001-standard EMS Quality system that is designed to identify and manage any Since 2003 our maintenance department potential risks through procedures for key has attained ISO9001 accreditation for its work activities and monitoring requirements. quality systems. The accreditation relates to The EMS covers our government-approved the maintenance functions, which support the environmental management programme and mining and process operations. An external Premier Coal extensive legislative and licence conditions. surveillance audit in May 2007 confirmed our The EMS was subject to a surveillance audit compliance with this standard with only two during the year. Areas of concern included areas noted for improvement. One related the omission of non statutory obligations from to management reviews and the other to the the legal register and the lack of process for corrective process. Both of these issues have identifying when sound level metres and blast been resolved. monitoring instruments require calibration. Safety Management System (SMS) Opportunities for improvement included Our SMS is the RiskMap Safety Management developing a contingency for the overflow of System made up of 66 standards. This is 5H void and a dangerous goods inspection. currently under review to align with AS4801. system assists in managing dangerous goods Work has been undertaken in each of these and hazardous chemicals storage and the areas identified to improve the EMS. The We progressed the implementation of the separation distances of potentially reactive auditor also noted that the standard of internal First Priority Enterprise (FPe), a Safety, Health substances. This system is available on our and external verification of data for public and Environment System, by reviewing the intranet and hard copies continue to be reporting was commendable and that the medium-term implementation schedule and maintained. internal EMS auditing was an excellent tool for resources required. continual improvement. Licensing and approvals Inspection systems form part of the monthly As part of our ongoing commitment to the routines of our operations departments. We are not aware of any potential non- environment, we continued as a signatory to A revision of these has been completed with compliance during the year with licensing or the Commonwealth Government’s Greenhouse a new system currently being implemented as approval conditions or other requirements, Challenge Plus programme and the Western part of the FPe process. except as set out above under ‘Environmental’ Australian Cleaner Production Statement. Our Occupational Health and Safety (OHS) or ‘Health and Safety’. At this time the char plant has not been committee, which includes the Safety Our main Licence to operate is No. 5094 incorporated into our Environmental and Health Representative from the issued by the DEC. This was renewed in Management System 14001 certification scope. demonstration char plant, continues to October 2006 for a one-year period. meet monthly and review a range of topics, An Environmental Management Plan (EMP) Our Dangerous Goods licence was renewed programmes and issues. was developed for the construction phase in 2006 for a further year. of the char plant. The plan addresses such Our safety meetings combine the maintenance The demonstration char plant was also issued issues as the management of waste, water and production groups. The meetings are an annual Environmental Licence, No 8138/1 resources, conservation value and heritage. structured to convey information on serious by DEC, effective from 17 May 2007. We have initiated the development of an EMP potential incidents, changes in our safety

Figure 1: Dust Monitoring Figure 2: Total CO2 Emissions by Source 3 (microgm/m ) (tonnes of CO2 equivalent)

94-95 95-96 96-9797-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07

Daily Average (allowable 90microgm/m3) 42.9 52.8 34.3 48 28.7 27.6 39.6 29.9 33.2 38.4 36.2 49.4 44.3 Diesel 39,791 Electricity 19,256 Daily Max (allowable 260microgm/m3) Spontaneous Combustion 708 Petrol 153 93.7 97.1 58.4 112.2 69.3 47.9 162.3 63 59 101.3 81.9 146.3 122 Explosives 464 LPG 19 37 Figure 3: Premier Mine Blasting Buckingham Monitor Figure 4: Premier Mine Blasting Premier Coal

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Buckingham Griggs Total No. 70 165 262 271 261 349 477 596 547 559 473 616 611 <125dBL 99.6% 99.8% <120dBL 99.3% 99.6% Not triggered 27 49 149 191 197 297 299 443 353 377 385 418 379 <115dBL 98.3% 99.5% No<115 64 149 242 261 254 343 455 586 541 550 464 603 595 Ave dBL when triggered 104 103 % <115dBL 91.4 90.3 92.4 96.3 97.3 98.3 95.4 98.3 98.9 98.4 98.1 97.4 98.4 Total blasts 611 611 Average dBL 110 106 106 106 101 102 102 101 104 102 104 103 104 Not triggered 379 597

programme, topics for training and general have been forwarded to the DOCEP Resources feedback to allow safety issues to be raised, Safety Division, Senior Inspector of Mines as minuted and actioned. part of the legislative requirements for mining projects involving a change to a process. Any issues that are not resolved at the combined group meeting are referred to the As the char plant involves the heating of OHS committee. coal, a number of risk assessments and safe Air (Atmospheric emissions) working procedures have been developed and Other management systems are monitored by a planned inspection system. Dust The safety management plan for the Dust at our mine is mainly generated on construction of the char plant continues to be Policy roads, dumps and cleared areas and is only used while the plant is being commissioned. Our Environmental and Safety and Health a potential problem during the drier months Additionally, procedures have been Policies remained in place. The Environmental of the year, which is when we conduct our developed and personnel trained to deal Policy was updated and is available on our regular monitoring. Results include dust from with emergencies, confined space entry and website at www.premiercoal.com.au. the mine site and external sources. They are manual handling techniques. annualised, causing exaggerated levels in Environmental management remained relation to our stated dust emissions. A Hazard and Operability (HAZOP) study was one of our highest priorities. Our guiding Dust levels were well within licence conducted from which we developed a project policy principle is to take responsibility for conditions with a daily average level at management plan, safety management plan minimising the impact of our operations on the nearby Buckingham of 44.3 micrograms per and emergency management plan for use environment and to be open and accountable cubic metre and a daily maximum of 122 during construction. Copies of these plans to all our stakeholders. micrograms per cubic metre, both down on

Char Plant operator Robert Pitt inspects product. 38 Figure 5: Mine Abstraction Figure 6: Water Discharge (megalitres) (megalitres) 6,5133,2653,0854,0673,8212,288741 3,351 556 612 0 0 0 711 14,8764,7372,3842,6814,5473,4781,891 5,456 2,274 98 0 0 0 237 Premier Coal

94 95 96 97 98 99 00 01 02 03 04 05 06 07 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Figure 7: Rehabilitation (hectares)

Pre 90 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Total Clearing 1,353 22 44 2 36 41 211 269 129 104 156 87.12 99.25 44.1 21.32 0 0 23.8 42 2,684.6 Rehabilitation 359 42 33 14 34 41 104 0 50 38 116 0 0 192 186.8 22.1 0 21.02 172 1,424.9

last year (see Figure 1). Management strategies level is that mining operations in pit 1 have We have initiated meetings with our waste include restricted surface operations in progressed closer to this residence and the management contractor to assist us to adverse conditions, minimised clearing, rapid blast monitor. improve this performance. rehabilitation when possible, tar sealing major There was one exceedance to the 125 Liquid waste mine road arteries and application of water to dB(L) limit at 126.2 dB(L) and one possible suppress dust on roads and operational areas. exceedance at 131.6 dB(L) as discussed Our key liquid waste during the year was used and recovered hydrocarbon products previously in the compliance section (see Odour captured by evacuation systems and the oil Figures 3 and 4). Spontaneous combustion of coal can cause interceptor and skimmer. The oil interceptor an unpleasant odour but there were no Most of the blasts, (97.4 per cent) were below and skimmer treats run-off and vehicle wash complaints this year. 115dB(L). There were 611 blasts and the down waters in the maintenance and fuel bay percentage of blasts triggering the monitor at areas if required. The Dissolved Air Flotation Greenhouse gas emissions Buckingham increased from 32 to 38 per cent. (DAF) plant remained off-line during the year We are a participant in the Commonwealth Independent building condition surveys are as the silt traps and oil skimmers produced Greenhouse Challenge Plus Programme. available to all nearby neighbours. adequate quality water for discharge. There As part of our participation, we submitted our are no current plans to recommission the DAF. Other emissions 2005/2006 report during the year. Recovered liquid hydrocarbon waste during Our report to the NPI for the 2006/2007 Our total greenhouse gas emissions were the year was estimated to be 173,100 litres, reporting period, estimated our three most estimated to be 60,475 tonnes of carbon down 14.5 per cent on last year. In addition significant emissions as particulate matter dioxide equivalent, down 15.5 per cent on we collected 14,850 litres of oily water and (1,378,917 kilograms to air), oxides of nitrogen last year. This equates to 2.46 kilograms of 2,100 litres of coolant were taken for recycling. (530,795 kilograms to air) and carbon carbon dioxide equivalent per BCM equivalent, Waste oils were disposed of at a licensed down 6.8 per cent on last year. The reduced monoxide (246,350 kilograms to air). Further disposal facility where they were recycled to emissions are related to lower production and information will be available at: www.npi.gov. produce low-grade oils or fuel oil. improved operating efficiencies. au in due course. All our substance emissions Due to the hydrocarbon management for 2005/2006 were ranked as ‘low’ by the NPI. We have not included carbon credits programme, the amount of oil consumed was reduced from last year by 22.9 per cent per associated with rehabilitation of cleared land Waste bank cubic metres equivalent. in this data. Solid waste The greenhouse gas emissions were largely Recycling initiatives Solid waste during the year consisted primarily due to diesel usage (66.1 per cent) and Our main waste streams - including used oils, of metals and cardboard. electricity consumption (31.9 per cent), metal scraps, cardboard, paper, tyres and see Figure 2. Our total solid general waste stream (not batteries - were all recycled. including scrap metals and tyres which are Recycling is promoted through the provision Noise separated for recycling) during the year was of bins at work for employees’ domestic There were eight complaints relating to estimated to be 1,485 cubic metres prior to requirements. blasting (six came from the same residence) compaction, within one percent of last year’s compared to one complaint last year. total. Of this amount, 43 per cent was recycled Land Our average triggered blasting level was and 57 per cent was disposed of as landfill. 1.7dB(L) higher than for last year at 104.7. Recycling efficiency for general waste reduced Flora and fauna One possible reason for the increase in slightly from 88.4 per cent to 86.0 per cent, Protection of surrounding forests is a priority, complaints and average triggered blast short of our target of 90 per cent. with the spread of jarrah dieback a particular Occupational Health Nurse Natalie Green conducting a respiratory test on Plant 39 operator Ryan Weighell. Premier Coal

concern. Prior to any clearing, the target area contamination possibilities for our operations surfaces are covered with a one-to-two metre is mapped to determine dieback boundaries. include our current and previous refuse sites blanket of inert material and spread with Our procedures for clearing, topsoil removal/ and the water which remains in previous topsoil ready for revegetation. Rehabilitation replacement and land rehabilitation, minimise mining voids. These voids contain relatively at the closed Cardiff Sub Basin mines the risk of spreading the fungus. Infected soils acidic water however none are discharging continued with the Wyvern and N9 Mine are kept separate for application only in areas into water courses. areas completed. with minimal risk of disease spread. Disturbed Sites will be classified by the DEC and the Previous information gained through land is returned to stable, compatible bushland Department of Health (DOH), according to the rainfall simulations and materials studies by using local native seeds and trees. Routine risk on human health and the environment, to by Landloch in 2006 has influenced our inspections identify improvement opportunities determine whether: rehabilitation prescription with regards to water and permanent monitoring plots track management on dump slopes. The outcomes vegetation uptake. Habitat logs are placed in • further investigation or remediation is of this work indicated that drains have not rehabilitation areas to promote recolonisation required; assisted in preventing erosion as previously of native fauna. Faunal surveys of our • the site is listed on the publicly available thought and have not been incorporated into rehabilitation sites are designed to assess small database of confirmed contaminated recent rehabilitation. to medium-sized mammals, frogs, reptiles sites; or and birds. The rehabilitation is showing good Due to evaporation over summer, the WO-5B recolonisation, providing habitat for a range of • a memorial is registered on the land title. void (Lake Kepwari) water level dropped representative vertebrate species. A survey this approximately 0.6 metres. It is intended that this will be replaced by diversion of water year included four new and eight past sites. Rehabilitation from the Collie South Branch. We continue to Mining began in 1950 and since then 2,684 Seven species of native mammal were progress the relinquishment of Lake Kepwari hectares of land have been disturbed by recorded during the reporting year. Five were back to the community for recreation and mining and associated activities. Revegetation recorded in the four forest sites and six in the water sports. commenced in 1975 and 1,425 hectares eight rehabilitation sites. Three species of frog (or 53 per cent of the disturbed land) have Rehabilitation is a key part of our sustainability were identified during the survey with four now been rehabilitated. programme. Artificially filling the void reduced species being recorded in rehabilitation and the natural fill time of 100 years down to five one genus (Heleioporus spp.) being captured in During the year, 42 hectares were disturbed years, expediting the availability of the area forest sites. Twenty-one species of reptile were by mining and associated activities and 172 which has a high potential for other valuable also recorded. Of these, 18 were recorded in hectares were rehabilitated (see Figure 7). purposes such as tourism, recreation and forest sites and 15 in rehabilitation areas. Successful rehabilitation work requires aquaculture. The lake has a surface area of Fifty-five species of birds were recorded during careful planning and diligent machinery 103 hectares and is well suited to water sports this survey including Baudin’s Cockatoo. operators. A key to success is correct waste such as skiing and rowing. The DEC has A flock of 12 Baudin’s Cockatoos were rock management with materials likely to recently engaged a consultant to prepare an observed in forest site WF1 during April 2006. generate acidic conditions buried deep in Environmental Management Plan expanding One adult was observed feeding a juvenile the dump or backfill profile. A geochemical on issues identified from last years risk at this time. A flock of six Forest Red-tailed study undertaken during the year provided assessment. Black-Cockatoo birds was observed perched us with additional information on our soil The adjacent Collie Motorplex is based in a small forest island in the vicinity of characteristics and material properties. at the former Western 2 mine site, and rehabilitation site WR93 during the December The study essentially looked at the acid has successfully built upon existing mine 2006 survey. formation potential of certain soils which infrastructure including workshops, other has implications for spoil management and buildings and an extensive road network Contamination waste dump formation. The results of the suitable for racing and training. Improvements All potentially contaminated sites were analysis confirmed our existing understanding continued this year and the complex was reported to the DEC as required by the of the materials and no changes to spoil granted a Confederation of Australian Motor Contaminated Sites legislation. The main management are required. Final dump Sport (CAMs) rating. 40 Figure 8: Lost Time Injury Figure 9: Number of workers Frequency Rate* compensation claims 0.0 7.0 18.1 8.3 5.4 48 42 46 45 43 Premier Coal

2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 1 July 2002 - 30 June 07 (as at 30 September 07) *Contractor hours and LTIs included

Resource usage an increased blasting requirement in areas we Discharges to surface and The figures reported below do not include mined during the year. groundwater resource usage at our demonstration char plant. The overall powder factor increased from We were licensed to discharge water off-site 0.16 kilograms per bank cubic metre (BCM) to the environment. Overflow from Sump A Energy last year to 0.20 kilograms per BCM this year, was 1,102 megalitres into Western 5H causing Energy use during the year related primarily a 25 per cent increase. Powder factor is the an outflow of 711 megalitres into the natural to diesel for mobile plant and electricity for ratio of the weight of explosives used to blast a environment (see Figure 6). No water was pumps, shovels and lighting. unit of material. diverted from the river to Lake Kepwari. Total energy consumption was estimated to We continued to monitor adjacent river systems Energy Efficiency Opportunities be 632,779 gigajoules, down 15.4 per cent on and maintain a database and management last year. Through our parent company Wesfarmers system for water quality, abstraction, discharge Limited, we are a participant in the and regional waterway monitoring. Our total energy consumption per million Commonwealth Government’s Energy bank cubic metre equivalent (MBCMeq) was Efficiency Opportunities programme. estimated to be 25,790 gigajoules down 6.4 per cent on last year. Energy sources are Water detailed below. Consumption Fuel Water use during the year related primarily to Our consumption for petrol, diesel and LPG dust suppression (94.3 per cent of abstraction accounted for 89.6 per cent of our total energy used by us) and process water (5.7 per cent). Lost time consumption by gigajoule. Our petrol, diesel Our LTIFR was 5.4 (compared with 8.3 last and LPG consumption was estimated to be Total water consumption was 523 megalitres, 60.80 kilolitres, 14,622 kilolitres and 10.8 down 6.1 per cent on last year. year) see Figure 8 and, during the year, there were three LTIs. Our Average Time Lost Rate, kilolitres, respectively. Our total water consumption per bank cubic which provides a measure of the severity of We have begun a study to consider whether to metre equivalent was estimated to be 21.3 such injuries, was 15.3 (compared with 35.4 convert our 240 tonne capacity haul truck fleet litres, up 3.8 per cent on last year. last year). These statistics include contractor to combined natural and gas diesel with the aim All groundwater was abstracted through bores hours and injuries. of reducing our greenhouse gas emissions. (100 per cent). Safety statistics are distributed and discussed We finalised a supply agreement with Dewatering is required for safe and efficient by management each month and reported Australian Renewable Fuels for biodiesel to mining in the Collie Basin. to our Board every two months. The Board blend with mineral diesel. It is expected that up is also advised of serious potential incidents to 1.5 million litres of biodiesel will be blended All groundwater abstraction is licensed and and we also measure restricted work injuries at 10 percent with mineral diesel and displace monitored. During the year, 2.03 megalitres to gauge the severity of injuries as well as approximately 1,600 tonnes of carbon dioxide. per day were pumped with a total abstraction of 741 megalitres (see Figure 5), down 46.2 per the number of people returned to work but Electricity cent on last year. Of this total, 218 megalitres not yet fully functional. All safety incidents Electricity accounted for 10.4 per cent of our were available to be sent to local power are discussed at weekly Hazard and Incident total energy consumption by gigajoule. stations – the major users in the area – thus Review meetings to ensure investigations and Our electricity consumption was estimated to helping to reduce overall abstraction in the follow-up actions are progressed. be 18,335 megawatt hours. Collie Basin. Workers compensation Other materials Reuse and recycling There were 43 workers compensation claims reported during the year, compared Explosives were a major consumable with The main infrastructure area was serviced with 45 last year (see Figure 9). 2,679 tonnes used during the year, an increase for sewage by a treatment plant with treated of 27 per cent on last year. The increased use water available for garden reticulation during Regular reviews of all injury claims are of explosives reflected higher production and drier periods. conducted with our insurers to assess progress on outstanding claims and any injury We have purchased additional equipment to This is a confidential service aimed at resolving 41 rehabilitation plans. On-site injury management deal with hydrocarbon spill emergencies. or assisting with personal issues that may

clinics are held to assess ongoing musco- have an impact on work. Premier Coal skeletal injuries. Risk assessment We continued to issue the ‘Premier Coal The STAAR personal risk assessment We continued to use the services of Health and Lifestyle Newsletter’ with our system as detailed above is supported by rehabilitation and vocational service providers. quarterly internal magazine the ‘Premier the provision of risk assessment booklets. Our Occupational Health Nurse is accredited Post.’ The ‘Health and Lifestyle Newsletter’ is by WorkCover Western Australia as a workers We reviewed our confined space hazards another tool to raise awareness on being and compensation and rehabilitation coordinator. register by involving our Safety and Health staying healthy, at work, at home and during Representatives in risk identification leisure and recreational activities. It provides Hazard and risk and assessment. plenty of useful information including regular Programmes A review of the Griffin boundary risk articles on fitness, nutrition, exercise, alcohol, use of medications, interpersonal skills and Our STAAR personal risk assessment process assessment was completed. A consultative other informative articles on maintaining continues as a primary method of conducting group was formed with Griffin to develop physical and mental health. a quick risk assessment before performing procedures to allow them to operate any task. STAAR complements our other safe on our lease near our pit 6 boundary working procedure and risk assessment. with Griffin’s Muja pit. The procedures included communications, blasting, vehicle Hazards and incidents were captured within movements and emergency procedures. our Hazard and Incident Reporting system. Detailed procedures were developed and All hazards and incidents were reviewed with agreed by the respective OH&S committees investigation outcomes and actions recorded and managements in readiness for when in our Health and Safety Recording System. agreement on mining the boundary between Any current reports and outstanding actions us and Griffin is finalised. Stakeholders were reviewed twice weekly to monitor Our stakeholders include our employees, progress. Employee wellbeing our customers, our suppliers and other Our RiskMap standards specify the minimum We sponsor an Industrial Chaplain to provide contractors, relevant government agencies, requirements of our safety systems. A risk pastoral care and counselling. Father Mabey the local communities in which we operate, register using a rating system identifies visits each week and maintains contact and shareholders in our parent company, extreme and high-rated risks for control and availability with managers and other Wesfarmers Limited. and reduction of each identified hazard. employees. Response to 2006 Stakeholder Survey We have health monitoring and promotion We have evacuation signalling systems in our programmes in place to ensure our workforce As a result of the survey we reviewed the key main buildings and switch rooms. Procedures is assessed and educated about health issues. sustainability risks. We are working, as part of for raising the alarm are part of our induction This year voluntary medical assessments Wesfarmers Coal, in developing strategies to and safety meetings feedback. undertaken were aimed at identifying health improve coal’s image with respect to the issue Emergency response issues associated with fitness, obesity, of climate change. We have engaged Dr Ray Wills, Manager Sustainability Services, Thirty-one of our employees are currently smoking, diabetes, cholesterol, hypertension SMEC (Adjunct Senior Research Fellow, trained and certified in emergency first aid and cancer awareness. Doctors attended on School of Earth and Geographical Sciences, response skills and of these 16 have advanced site to conduct voluntary health and medical the University of Western Australia) to advise certification of Occupational First Aid. assessments as part of a federal government initiative. General statistics were made and assist us in developing our greenhouse We maintained all fixed and portable fire available regarding the number of people strategy. systems in accordance with the Australian examined with identified health issues. Standards to a high level of readiness. Feedback/Complaints Our automatic systems are monitored Influenza vaccinations were made available to We received eight complaints for the year. 24-hours a day through a system that all employees and contractors by having local We had six blast complaints from one indicates any alarm systems or faults back doctors visit our site. Vaccinations were also residence but these complaints were not to our Pit Controller. This also enables mine made available at each of the local practices. in relation to any exceedance in licence rescue team members to be automatically Seventy-five employees (27 per cent of our monitoring. Two other complainants reported called through a voice system activated from workforce) took up this programme. noise from the one blast and this was reported either the maintenance supervisor’s desk or Given the age of our workforce, we again as an exceedance to the DEC. pit control. We have an evacuation and public conducted diabetes awareness and prevention We responded to all complainants in writing address system in our administration building. sessions for our operations employees. explaining the circumstances and our Materials handling and storage The HealthMap medical and fitness response actions. assessment programme continues to be A register of hazardous substances and available to employees who wish to attend Liaison with authorities dangerous goods is maintained and audited their choice of local medical practitioners and We have a senior manager to liaise with all annually. Any new chemicals are reviewed a physiotherapist to obtain a free confidential authorities to ensure that relevant government and assessed prior to being allowed on-site. ‘snapshot’ report of their health status. agencies are kept informed of progress on Material Safety Data Sheets for each of our existing issues and any new issues that arise. hazardous substances and dangerous goods ACCESS Counselling conducts our Employee items are maintained and available through our Assistance Programme that is available to We hosted tours for politicians and government updated ChemAlert Material Safety database. employees and their immediate family. agencies, such as DoIR, DOCEP and the DEC. Action groups feedback on any community concerns with marron and silver perch using mine water, 42 We are a member of the Local Emergency current and planned operations. and was expanded to include a hatchery. It will also provide a base as a long-term Management Action Committee (LEMAC), During the year, the Stakeholder Consultation teaching and research centre for the local which is part of the Police and State Group met and was updated on the TAFE and the Centre of Excellence in Emergency Services plans. Each year LEMAC demonstration char plant development. Sustainable Mine Lakes. The Centre’s reviews the emergency services plan for the Participants were provided data on our monitoring of the Western 5B lake (Lake Collie region. business status, environmental performance Kepwari), to develop a predictive water We are represented on various committees of and community contributions. quality model, was completed. The Centre the Chamber of Minerals and Energy, from the Community support continues to seek new government funding

Premier Coal executive to subcommittees, allowing us to and industry partners to continue mine participate in discussion of issues concerning The Schools Compact for Education rehabilitation research. the mining industry in Western Australia. Excellence continued with Amaroo Primary An important aspect was participation in the School. The aim is to deliver improved As reported last year, we have a seven- South-West Region Occupational Health and education opportunities for children through year, $100,000 a year, commitment to the Safety Committee. This committee hosts business and school interaction and direct Cooperative Research Centre for ‘Coal educational conferences as well as emergency company support programmes. in Sustainable Development’. Work being skills competitions between local and regional Progress on a future industrial park at Shotts done under this project by Curtin University mining companies. near Collie has been slow but has the potential of Technology involves achieving better environmental and greenhouse performance We were also represented on the Chamber’s to encourage business development as well through efficiency and waste management Environment committee, the South-West as a far more efficient utilisation of the energy improvements. Environmental Forum, the Collie Tidy Towns produced by local power stations and our Committee, the Collie Basin Management coal products. The project has attracted During the year we contributed $135,271 to and Planning Group, the Collie Air Quality government funding through the South West the Australian Coal Association Research Technical Working Group and the Lake Development Commission and LandCorp and Programme. We are committed to contributing Kepwari Working Group. we have offered the necessary land for future to the Coal21 programme. development. Communication Under our Safety Voucher fund, a proportion Scholarships of safety financial incentive awards, managed Newsletters and reports Each year we provide $2,500 for the J A Ellis by employees, is contributed to community Scholarship for university students. We report annually to a consortium of projects. Beneficiaries this year included We are also contributing $100,000 over four government departments through the Collie the Smith Family, Little Athletics, the Collie years to the Australian Institute of Mining and Coal Mines Environmental Committee. Chaplaincy, Riding for Disabled, community Metallurgy Education Endowment Fund. Information on issues and achievements halls, parks, sporting associations and was distributed in our quarterly publication local schools. We contributed $21,260 to We provided work experience to 11 high ‘Premier Post’ which was sent to all the fund and $37,357 was paid out to the school/college and TAFE students from employees and was widely distributed Collie community. We have given $96,012 as the south-west region and paid vacation throughout the community. direct community contributions this year to employment to 12 tertiary students. We also various sporting associations, schools, clubs, provided student awards for the local high We also distributed to all employees a summary festivals and heritage projects. In addition, and primary schools. We have a partnership of operations through an email and mail-out we have committed $35,000 per year for two with the Collie High School as part of their called ‘Fortnightly Focus’. This aims to keep years towards the Collie Western Entrance Industry Reference Group to provide support employees up to date with key performance Project. The project is to redevelop the town’s to vocational engineering trades students. areas such as safety and the environment. entrance, which will include an interpretive The support includes financial contribution centre. The centre’s development is to During the year, we hosted several mine visits for uniforms, medical expenses, advertising showcase the importance of the coal industry including school groups, universities and and prizes/awards as well as providing work in WA and to assist Collie in attracting tourism international delegations. experience opportunities. and economic diversity. During the year we employed 16 apprentices Our intranet is available to employees. We contributed $71,810 to the Collie Miners’ ranging from those in the first year to those in Information on the intranet includes Welfare Board. the fourth year of their indentures. environmental and safety standards and Apprentices and senior managers attended procedures. a public Road Safety Forum with the aim Awards Website of identifying and planning solutions to the We provided assistance to drive the Collie region’s ongoing road deaths and serious Tidy Towns Programme that was successful Our website www.premiercoal.com.au injuries toll. in winning the National Tidy Towns Award includes information about our operations for The Collie Motorplex is a well-patronised for 2006. Our rehabilitation projects, Lake the community, including environmental, safety driver training and club motor sports centre. Kepwari and the Motorplex, were included in and health information relating to our business. Improvements continued this year. the submission. Liaison groups Research We have a Stakeholder Consultation Group We continued to help run the Collie Centre of to provide a strong community interface Excellence in Sustainable Mine Lakes through and improve community awareness and funding and management support. involvement. This group provides assessments of this report – in particular the scope, clarity, The aqua-farm at our former Western 5H mine design and ease of information access – and site continued research on the production of CASE STUDY 43 Premier Coal

Working with the Smith Family In March 2007 we pledged a three- year fi nancial commitment of $15,000 annually to The Smith Family. The Coal Miners’ Welfare Board have matched our contribution, making a total of $30,000 each year.

From left: Steve Smith (Premier Coal), Andy Vandijk (Worsley Alumina), Ian Miffl ing (Miners Welfare Board), Lynette Bouy (Smith Family), John Kearney (Premier Coal) and the mine’s General Manager Patrick Warrand at the sponsor launch.

The Smith Family is an independent non-profit enterprise family was unable to afford an instrument. The Smith Family that operates nationally in over 80 communities. Its primary was able to provide some additional financial and practical objective and mission is to promote educational opportunities support through the Learning for Life programme. This enabled for financially disadvantaged Australian children and their the father to purchase a trumpet for his son. families. The student came into the Learning for Life office some time The organisation plays an important role in encouraging later, and shared with me what he had learnt so far in his greater participation in society by members of the community instrumental music lessons and then went on to play ALL of the who are marginalised. Their activities are supported through notes he has learnt so far. His dad tells me that he practices the engagement of individuals and groups within the diligently every day and really enjoys this opportunity. The community who possess the capacity to give. boy’s instrumental music teacher reports this student to be working extremely hard during all his music lessons and that he The Smith Family opened an office in Collie in February 2005, is a ‘pleasure to teach”. and during the past 12 months has provided support to 155 students in the town. It hopes to increase that to 235 students Eventually, as this student’s music ability improves, he will be in the next 12 months. able to join the school band and have the opportunity to play at various functions and events, not only within his school but Here’s an example of how young people are helped, as told by also in the broader community. a Smith Family volunteer in Collie:

“A year five student was invited to participate in the instrumental music programme through his school, but the

PRIORITY PRIORITY Achieve full environmental compliance. Increase investment into progressing clean coal technology. PRIORITY Maintain ISO14001 EMS standard. PRIORITY Continue to build support with our community by PRIORITY consultation and working in the community. 08 Continue providing environmental awareness PRIORITIES FOR training across the company. PRIORITY Complete the implementation of AS4801 compliant THE FUTURE PRIORITY safety management system. Increase our support for research and development into cleaner coal technology. PRIORITY Progress to completion the Fitness for PRIORITY Work programme. Further improve hydrocarbon management. OF LIQUEFIED NATURAL GAS (LNG) IN A GROWING MARKET. FORKLIFT, AUTOGASSUPPLIER CUSTOMERS ANDA INDUSTRIAL AND (LPG) TO A BROAD RANGEOFDOMESTIC, COMMERCIAL, WE ARE A MAJOR DISTRIBUTOR OFLIQUEFIEDPETROLEUM GAS Kleenheat Gas Truck LNGvehicle refuellinghisdedicated Lowe DriverKerry at theMitchell at West Kewdaledepotin Western Australia. 07 07 PRIORITIES OUTCOMES 45

Contribute to the management of contaminated sites. Achieved. Our reporting obligations under the Contaminated Sites legislation were met in relation to four sites. Work continued at Queens Park and Osborne Park to gather more monitoring data.

Contribute to the development and implementation Achieved. New Health, Safety and Environment reporting system implemented in March 2007. of the Wesfarmers Energy, Health, Safety and Environment Project.

Improve our LTIFR to zero. Not achieved. One contractor and three employee lost time injuries sustained in the year, giving a rate of 3.6.

Continue to assist our business partners in Partially achieved. Safety audits of dealers continued to be conducted through the year and further operational safety. opportunities will be sought.

Undertake a driver risk management review. Partially achieved. The risk management review is ongoing.

We operate in all states and territories of Australia through a network of depots, company-operated branches, commissioned agents, dealers and franchisees servicing more than 14,000 bulk, 220,000 domestic, 13,000 forklift and 2,100 Kwikgas customer installations. We also operate an LPG distribution facility in Bangladesh. We employ more than 430 people.

The main challenge facing our business on contract drivers died when his truck OVERVIEW an ongoing basis is the safe transport of overturned and caught fire near Denmark LPG in a way that minimises any adverse in Western Australia. impact on our employees, contractors, the A significant highlight in the year has been environment and the public. the implementation of a business model In dealing with this challenge, the two main that has resulted in a greater management safety areas on which we focused our focus in 16 new metropolitan and regional attention during the year were driver safety, based territories. and Health, Safety and Environment (HSE) During the year the two main environmental compliance. areas we focused on were our ongoing We continued a driver risk management certification to ISO14001 (Environmental project which has resulted in a review of Management Systems) for our Murdoch driver behaviour, communications and and Kwinana sites in Western Australia a continuing evaluation of technology to and the management and registration of enhance driver safety. contaminated sites with the Department The other safety issue we focused on of Environment and Conservation (DEC) was the introduction of our new HSE in Western Australia. Our ISO14001 and Compliance system, known as First certification was continued following an Priority Enterprise (FPe). This replaces older audit in June 2007. reporting and recording systems and has We reported four former Kwik Fuel sites resulted in an improvement to our reporting under the Contaminated Sites Act 2003 process and data collection. The system and we continue to manage contamination was implemented as part of the Wesfarmers at two of the sites. Energy HSE project. We continued the review of both customer We failed to achieve our objective of zero and operational compliance issues related Lost Time Injuries (LTIs). In the year we to our business units. As part of this project, had four LTIs, (one contractor and three a number of compliance risks have been employees), incurring a frequency rate identified and actions to eliminate or reduce of 3.6. This was significantly higher them have been completed with further than last year. Tragically, one of our progress to be made in 2007/2008. Compliance National Pollutant Inventory (NPI) 46 As reported last year we continued our LPG is a volatile organic compound that compliance programme which will put in place is reportable under the NPI if a threshold an improved framework to ensure compliance is triggered. The presence and use of all with the Trade Practices Act 1974, related laws substances listed under the NPI was Training and industry standards. The programme is reviewed during the year for each type intended to keep up-to-date with compliance of operating site. We did not trigger any Environmental issues affecting our business operations thresholds and therefore were not required Environmental awareness forms part of our and respond to them in a systematic and to report under the NPI. timely manner. We encourage all employees employee induction programme. In the year Health and safety we inducted 28 employees. to be professional in their business dealings Kleenheat Gas and not to take unfair advantage of others. We are not aware of any potential Health and safety The programme conforms to AS3806 – non-compliance during the year with With the introduction of the FPe system we Compliance Programmes. This includes: health and safety legislation or other health and safety requirements, except trained 89 employees in its use. • a commitment to achieving an effective compliance regime and culture; as set out below. Training of our business partners has consisted • enhancing competence with effective of the continuation of safety auditing of our The Victorian Workcover Authority issued training; dealer network by our business representatives. an improvement notice to us in April 2007 • allocation of skilled resources; The audits consist of a review of LPG storage, in relation to a Liquefied Natural Gas (LNG) • identifying and assigning compliance handling and transport. In the year we audited leak at our Deer Park terminal in Victoria. responsibilities; and The notice was in relation to investigating the 123 dealers nationally. One of the opportunities • process and procedural improvement incident and implementing corrective actions. for the coming year will be to review the chain through performance monitoring, reporting It has been complied with. of responsibility between our dealers and us. and regular review. Two improvement notices were issued to us Emergency Environmental by WorkSafe Western Australia in April 2007 Training was conducted for 18 members of our We are not aware of any potential non- relating to breaches of fatigue management crisis management team at our Murdoch office compliance during the year with environmental records and driver training. Both have been in April 2007. legislation or other environmental requirements. complied with.

Gillian Naudé, HSE and Compliance Administrator, demonstrating the new First Priority Enterprise Management System. Leigh Lorberg Test Station Signatory refurbishing a 45kg cylinder at the Kwinana Gas Terminal in 47 Western Australia and (inset) brass cylinder valves collected for recycling. Kleenheat Gas

We have a system in place to ensure that system. During the year, 588 system sites. During the year, polices for privacy, small cylinders (nine kilograms or below) documents were moved onto the Oracle journey management, vehicle monitoring and are tested and comply with the relevant platform to be controlled as part of the FPe driver communications were developed. Australian Standard at the time of supply and system. The OMS also includes links to that customer-owned cylinders are not filled Australian Standards, HSE legislation and if they are out of date. We have a process reference documents, codes of practice and in place which endeavours to ensure that regulators’ home pages. It is available to LPG cylinders owned by us are tested and employees through our intranet system. compliant at the time of supply and when re-filled. While every effort is made to ensure Environmental Management Air (atmospheric emissions) System (EMS) compliance, at any point in time, there may Dust be some cylinders, which may fall out of date Our EMS is an integrated part of the OMS During the year, we lodged several complaints while in service. and is consistent with the principles of the with the Kwinana Town Council regarding dust international standard ISO 14001. A successful from our neighbours. The council has provided Licensing and approvals triennial audit was held in June 2007, allowing some feedback in relation to those complaints. We are not aware of any potential non- our certification to continue. Eleven incidents compliance during the year with licensing or were reported as having an environmental There were no other dust issues reported in approval conditions or other requirements, impact, all of which were deemed minor and the year. except as set out above. have been resolved. Odour We continue to hold two site-specific Quality system environmental licences. These are required In its natural state, LPG is odourless. For safety by the relevant statutory authorities for our Our Quality Management System is certified reasons it is necessary to add a small amount terminal at Pinkenba in Queensland and our and compliant with AS/NZS 9001. Surveillance of ethyl mercaptan to give the gas a distinctive Kwinana LNG plant. We anticipate a periodic audits were held in our Murdoch and Niddrie smell and to allow its presence to be easily environmental inspection at our Mongla (Victoria) sites during the year. Some non- detected should a leak occur. An odour release terminal by the government of Bangladesh in conformances were found relating to our is associated with the venting of LPG to the the coming year. engineering processes. We are currently atmosphere. No odour complaints were working to rectify these issues. The Australian Competition and Consumer recorded in the year. Commission (ACCC) is continuing an Safety Management System (SMS) LPG emissions are minimised through the investigation into pricing and other practices cylinder exchange programme and remnant We held a safety audit at Pinkenba in with respect to our bulk LPG customers gas recovery at our testing stations. During December 2006. Additionally, in WA, we have including possible overcharging. We are the year 135,580 cylinders were tested and we combined safety and quality audits. Two of currently in discussions with the ACCC with a recovered a total of 216 tonnes of LPG. This is these audits were held in the year. view to resolving these matters. If a resolution a decrease of 96 tonnes from last year’s total cannot be reached, the ACCC may decide Other management systems of 312 tonnes. Remnant gas recovery can be to commence court proceedings against We continue to maintain a database to capture affected by the number of different cylinder us. These matters may result in orders being information on safety and environment training. sizes tested during a year and the amount of entered and compensation/penalties being We also maintain our compliance database to unused LPG in the cylinders. paid by us. record information relating to drivers, trucks, The numbers of each cylinder size tested are Management systems terminals and contractors. set out on page 48 in Figure 1. Integrated Management System Policy Greenhouse gas emissions Our Operations Management System (OMS) We have formal policies for quality, safety, LPG produces up to 15 per cent less is an intranet-based system covering safety, the environment and training. Each policy greenhouse gas emissions than petrol. quality and environmental management has been developed in accordance with the This fact was included in the ‘Environmental requirements. This year saw the completion relevant Australian Standard. Our policies are Benefits of LPG’ training presented to of our document migration into the Oracle displayed on our intranet and at our operating employees in an effort to increase LPG usage Paint spraying on a Kwikgas 8.5kg cylinder 48 in the automated spraybooth at the Kwinana Gas Terminal in Western Australia.

Figure 2: Lost Time Injury Frequency Rate* 1.4 0.0 1.4 0.7 3.6 Kleenheat Gas

2003 2004 2005 2006 2007 1 July 2002 - 30 June 07 (as at 30 September 07) *Contractor hours included

and decrease greenhouse gas emissions. The greenhouse gas emissions were largely recycling bins at the sites. We are aiming As vehicles are changed over in the passenger due to vehicle fuel use (approximately to implement similar recycling systems for fleet, LPG vehicles are purchased, wherever 82 per cent) and electricity consumption cardboard at our Gas Houses. We are also practicable, to minimise the fleet’s greenhouse (approximately 18 per cent). investigating the recycling possibilities of the gas emissions. Dedicated LPG and dual Expansion of our current vehicle fleet is low density polyethylene plastic cylinder nets fuel vehicles constitute 99 per cent of our in progress and an additional eight prime once they can no longer be reused. passenger fleet. movers have been ordered this year, which will A total of 592 tonnes of metal was sent for By integrating dual fuel and dedicated LPG become operational during the next reporting recycling from our operations across Australia. vehicles into our fleet instead of solely running year. Each new vehicle is fitted with dual fuel This included 46 tonnes of brass and 545 dedicated petrol vehicles, our greenhouse gas tanks to use both LNG and diesel. Two diesel- tonnes of steel, compared with last year’s 53 fuelled, rigid tankers will be replaced with two emissions are 460 tonnes per annum less than tonnes and 351 tonnes respectively. dedicated LNG-powered tankers. they could otherwise be. Our total greenhouse gas emissions were Noise Land estimated to be 14,622 tonnes of carbon No noise complaints were reported during Contamination dioxide equivalent, 10 per cent less than last the year. Contamination is unlikely to result from year, and this equates to 27.9 kilograms of Noise monitoring was undertaken at our our LPG operations as LPG vaporises at carbon dioxide equivalent per bulk tonne of Kwinana terminal during the year. The results atmospheric pressure preventing it from LPG delivered, a 19 per cent decrease on last indicated there were no significant noise- entering soil or water resources. LNG also year. A change to the company’s product mix related risks at the site. vaporises in a similar way. over the year contributed to this decrease. Other emissions The leased site at Camellia is contaminated The only sources of greenhouse gas Our Gas Houses facilitate the servicing of from previous uses. The surfaces are emissions that we have not included are some unflued gas heaters to ensure that the concreted which assists in preventing remnant contractor vehicle fuel use for fuel purchased heaters perform safely with minimal emissions. rainwater from spreading the contamination. from non-preferred outlets, waste disposed In the year this totalled 1,348 heaters. As reported last year, we have now moved off-site and a small amount of natural gas from the previously contaminated site at used in office kitchens. As we did not measure Waste Nowra, New South Wales, into a new premises. these we were unable to estimate associated Solid waste greenhouse gas emissions. We reported two contaminated sites and Solid waste continues to be disposed of via two further sites which we suspect may appropriate methods, dependent on type and be contaminated under the Contaminated Figure 1: Remnant Gas Recovery Tests location. Sites Act 2003 which came into effect in

Western Australia in December 2006. Each Cylinders Tested 05/06 06/07 Liquid waste of the sites formerly operated as a Kwik Fuel 4kg 0 1,405 Paint waste is generated from the automated service station. To date, we have fulfilled our 9kg 75,321 90,454 spray booth water filters at our Kwinana and reporting obligations under the Act and are 13.5kg 0 137 Camellia operations where a total of 67,240 awaiting a response from the Department 15kg 0 125 litres were collected for disposal by a liquid of Environment and Conservation on each of 18kg 7,746 3,861 waste contractor. the sites. 45kg 42,087 38,869 Recycling initiatives Our prior investigations into the suspected 190/210kg 999 729 Cardboard recycling increased at our larger contamination at the former Kwik Fuel sites Total 126,153 135,580 depots by installing specific cardboard at Pinjarra and Yokine indicated that any remaining contamination found at the time Approximately 23.4 kilometres were travelled Construction of a new cylinder washing facility, of the investigation was not related to our per bulk tonne of LPG delivered. The efficiency with water recycling capacity, was completed 49

activities. of diesel use cannot be accurately calculated at our Winnellie (Northern Territory) terminal. Kleenheat Gas as a significant number of contractors do not Responsibility for contamination and Discharges to surface and disclose their fuel usage. remediation at Queens Park and Osborne groundwater Park has not been determined at this time Electricity At sites other than Kwinana and Channel however we have continued to be involved in Island, the deluge water discharges to the the management of these sites pending such Electricity accounted for six per cent of our natural ground surface. determination. total energy consumption by gigajoule. Our electricity consumption was estimated to As a proactive measure, we have engaged be 2,915,566 kilowatt hours. consultants to assist us with the delineation of the plumes at these sites. The intention is to Natural Gas obtain necessary information about the extent We are not aware of any significant use of of contamination to ensure that an appropriate natural gas at our sites other than the use of management strategy can be implemented for LNG to fuel some of our trucks. Lost time each site. Biological remediation methods will be utilised where practicable. Energy Efficiency Opportunities Our LTIFR was 3.6 (compared with 0.7 last year, see Figure 2). During the year we Through our parent company Wesfarmers sustained four LTIs. One, in December 2006, Resource usage Limited, we are a participant in the was a result of a contractor driver receiving a Energy Commonwealth Government’s Energy cold burn. As reported in previous years, our main Efficiency Opportunities programme. energy use during the year related primarily to The second injury, during the same month was Water transporting LPG and electricity consumption the result of a motor vehicle accident where one of our drivers was hit from behind. at our sites. Total energy consumption was Consumption estimated to be 184,069 gigajoules, down The third, a manual handling injury, was Water use during the year related primarily 12 per cent on last year. sustained by a cylinder ramp attendant in to truck washing, cylinder washing and fire March 2007. The last injury, sustained in Our total energy consumption per bulk tonne deluges. As many of our locations are leased May 2007, resulted from a driver tripping and of LPG delivered was estimated to be 0.35 properties without a site-specific water falling in our yard at Kwinana. gigajoules, down 20 per cent on last year. meter, water consumption was not able to This number is influenced by changes to fuel be monitored. Safety statistics are distributed and discussed and vehicle efficiency within our fleet and an by management each month and reported to Data on sites with washing facilities was not increase in the number of contract drivers, our Board every two months. collected in the year. who do not disclose their diesel usage. Workers compensation Reuse and recycling Energy sources are detailed below. There were 10 workers compensation injuries Fire deluge systems are erected above our recorded during the year, a reduction of 16 Fuel bulk storage tanks where required. At Channel from the previous year (see Figure 3). Petrol, diesel, LPG and LNG accounted for Island in the Northern Territory and at our 94 per cent of our total energy consumption Kwinana site, the released deluge water flows Hazard and risk by gigajoule. Our recorded petrol, diesel, LPG back into a water storage dam for reuse. The and LNG consumption was estimated to be automatic spray booths and cylinder washing Programmes 140 kilolitres, 3,900 kilolitres, 578 kilolitres and facilities at Kwinana and Camellia incorporate One hundred and eight random drug and 146 kilolitres respectively. water recycling. alcohol tests were conducted during the

Figure 3: Number of workers compensation claims 49 60 26 26 10

2003 2004 2005 2006 2007

Megan Nicholas Environmental Advisor and Patrick Heathcote-Amory Environmental Consultant collecting groundwater samples from the Kwik-fuel site at Osborne Park, Western Australia, which was formerly operated by Kleenheat Gas. year with six positive results. Those returning Employee wellbeing Liaison with authorities 50 positive results were required to submit a Influenza injections were again offered to We continued to foster and develop management plan against which their future employees this year and 88 employees took relationships with government authorities conduct will be monitored. Breaches of up this offer. through providing submissions, information such plans may result in disciplinary action, and specialist expertise. including dismissal. As with previous years, we published a safety- themed calendar for 2007, with children of our Communication Vehicle tracking and fatigue management staff submitting drawings. The theme of the software, (vTrack), was installed on a further 2007 calendar was driver safety. Newsletters and reports 55 bulk tankers and four cylinder trucks In the year, we participated in the 10,000 As in previous years, we provided the in the year. The software displays in real-time Steps challenge programme, which is ‘Well at Work’ newsletter to our employees. the location and speed of a tanker and the Kleenheat Gas highlighted in our Case Study. Although no other newsletters were time and distance that the vehicle has published during the year, we are planning travelled. We participated in a number of charity days at to re-introduce a modified company newsletter work during the year, including Red Nose Day, During the year there were three significant in the coming year. Jeans for Genes Day and WA’s Giant Walk . heavy vehicle accidents. In July 2006, a rigid Website bulk road tanker rolled over while trying to avoid a herd of cattle near Baradine in New Our website (www.kleenheat.com.au) South Wales. Our contractor driver was not includes information about our operations for hurt in this incident. The second incident, in the community, including environmental, safety December 2006, involved one of our cylinder and health information relating to our business. trucks being hit from behind by a passenger Liaison groups vehicle and rolling off the road near Wyong Stakeholders in New South Wales. Our company driver We remain a member of Liquefied Petroleum Our stakeholders include our employees, sustained a shoulder injury in this incident. Gas Australia (LPGA), formerly known as our customers, our suppliers and other The third incident occurred near Denmark the Australian Liquified Petroleum Gas contractors, relevant government agencies, Western Australia, in March 2007, where, Association. Our staff continue to hold office in local communities in which we operate tragically, one of our contract drivers died the Victorian branch and on the committee in when his cylinder truck ran off the road, and shareholders in our parent company, New South Wales and Victorian branches. overturned and caught fire. Investigations Wesfarmers Limited. We also have representation on the LPGA into this incident are continuing. In addition, technical committee. Response to 2006 Stakeholder Survey there were five other heavy vehicle on-road We remain a full member of the Kwinana We participated last year in a Stakeholder incidents, two more than last year, and Industries Public Safety group and an Survey conducted by URS. The survey our passenger vehicles were involved in associate member of the Kwinana Industries gauged responses by internal and external 17 accidents, 11 fewer than last year. Council. stakeholders on our performance on social Emergency response responsibility and sought suggestions for We continue to be a member of the Gateway Mutual Aid group in Queensland. We held crisis management training and a change and improvement. desktop exercise in April 2007 at our Murdoch Our performance in social responsibility Community support office. The exercise consisted of a safety and was perceived to be average to good. The As with our areas of operation, the majority supply crisis at one of our regional locations. suggestions for improvement made by our of our customers live and work in rural and Plans are in place to undertake more training stakeholders included: regional areas of Australia. We continue our and exercises during the next year. • our storage, handling and disposal of LPG; sponsorship activities in 2007 to reward Our Customer Service Team (CST) continues • training and compliance improvement; excellence in regional community endeavour to be provided with updated information for and support initiatives to improve social, • concentration on safe supply of gas and a customers and the community to assist with economic and environmental wellbeing to reduction in LTIFR; appropriate response to incidents including these areas. emergencies. This information also helps with • increased reporting measures for health We again supported the Awards Australia communication to other stakeholder groups and safety; Regional Achievers and Community awards during emergency responses. • increased reporting of waste streams; and in Western Australia, New South Wales and • more reporting on customer expectations Materials handling and storage Victoria. We actively supported nominations and staff turnover. through our dealer and branch network Our terminals in Swan Hill (Victoria), Pinkenba and participated in promotion, judging and and Kwinana are major hazard facilities. All These suggestions were considered presenting stages. three terminals are subject to the oversight when revising our sustainability issues and process by state authorities. developing our priorities for the next As in previous years, we continue to support 12 months. the activities of the Clontarf Foundation. Risk assessment Our community support activities also Risk assessments are undertaken as part Feedback/Complaints included staff donations made through ‘free of our engineering process. Significant Most customer issues are handled first by dress’ Fridays and making smaller donations assessments were undertaken for two LNG our CST officers. If an issue requires further to community clubs and groups in our areas projects in Western Australia as well as a attention, the matter is dealt with by the CST of operation. detailed assessment to commence the Manager, supervisor or other senior personnel. de-registration process of our major Hazard We also handled 110 written feedback issues Facility at Swan Hill. during the year. CASE STUDY 51 Kleenheat Gas

10,000 Steps to a healthier life “10,000 Steps” is Australia’s fi rst whole of community health promotion physical activity project, funded by Queensland Health and supported by Quit, the Heart Foundation and Sports Medicine Australia.

As most adults spend half their waking hours at work, increasing activity during the workday is a practical way to become more active. The programme provides an opportunity for employees and employers to take positive steps towards better health by participating in a work-specific physical activity. The challenge is for individuals to walk 10,000 steps per day and to make the challenge more interesting, teams and virtual walks can be organised.

Participating staff were given pedometers and put into groups of 10. The first ’virtual’ journey selected in March 2007 was the Western Seaboard challenge, from Perth to Broome, a distance of 2.9 million steps. Ten teams were involved and the average time required to achieve the journey was one month.

The second challenge, in May 2007, was a ’coast to coast’ event, from Byron Bay (NSW) to Carnarvon (WA), a distance of five million steps and 17 groups of 10, based in Perth, Melbourne and Brisbane participated. A competition was organised along the way to reward the first team to reach the half way point, at Uluru (NT). The average time to complete this journey was seven weeks. Members in each team who successfully completed the challenge were awarded a Heart Foundation cookbook for their efforts. Participants in the “10,000 Steps” Challenge leaving the Wesfarmers Energy Head Offi ce in Murdoch, Western Australia, More challenges are planned for next year. led by the Kleenheat Gas mascot, “Safety Sam”.

PRIORITY PRIORITY To reduce our LTIFR by 50 per cent. To reduce our environmental footprint through improved waste management. PRIORITY To continue to assist our business partners PRIORITY in safety. To continue to contribute to the management of contaminated sites. 08 PRIORITY PRIORITIES FOR To introduce further improvement programmes for THE FUTURE safety and compliance. TO BUNBURY PIPELINE. NATURAL GASSTREAMIN THE DAMPIER WHICH EXTRACTS LPGFROM THE AT KWINANA IN WESTERN AUSTRALIA WE OWN AND OPERATE A PLANT Wesfarmers LPG Linde Project Manager Matthias Brüentrup (left) and Operations Supervisor GeoffMorgan Supervisor Brüentrup(left)andOperations Matthias Linde ProjectManager discuss progress on the 175tpd LNG plant at Kwinana,discuss progressonthe175tpdLNGplantat Western Australia. 07 07 PRIORITIES OUTCOMES 53

No workplace injuries. Not Achieved. We had two employee and three contractor injuries, requiring medical treatment.

Lost Time Injury Frequency Rate (LTIFR) of zero. Achieved. LTIFR of zero for employees and contractors.

Identifi cation and control of hazards. Achieved. Use of site Permit to Work system. Use of workplace inspections.

No signifi cant release of hydrocarbons to Achieved. No signifi cant release of hydrocarbons to the atmosphere. the atmosphere.

Review stakeholder contact following interview Achieved. Reviewed feedback from interview process and maintained stakeholder contact process conducted for this report. through local committees.

Production was slightly higher than last year due to increased LPG content levels but plant capacity remains at about 350,000 tonnes per annum. We employ about 50 people.

OVERVIEW The main challenge facing our business We continued our commitment to providing on an ongoing basis is the safe operation a healthy and safe workplace for all of our plant that minimises any adverse employees and visitors to the Kwinana effect on the environment and the local extraction plant and our gas export community. facilities. Identification and control of hazards and prevention of incidents and In dealing with this challenge, the three injury remained the highest priority. main environmental areas on which we We continued with the implementation of focused our attention during the year were, our Fitness for Work (Alcohol and Drugs) ensuring compliance with our Department policy with the completion of random drugs of Environment and Conservation (DEC) and alcohol testing. licence conditions, completing the environmental approvals process for the A highlight of this year’s safety performance new 175 tonnes-per-day liquefied natural was our achievement of a zero Lost Time gas (LNG) plant and ensuring that its Injury Frequency Rate (LTIFR) for employees construction progressed with minimal and contractors. environmental impact from dust due We achieved four years LTI-free in February to earthworks. 2007 and this performance was recognised by presenting a safety award to site We continued to meet our DEC licence personnel for their efforts. conditions and have not been advised of An independent compliance audit of any breach of those conditions. our Safety Report due this year was Our environmental approvals process rescheduled until after the completion of was completed with the issue of a Works the new LNG plant following discussions Approval for the new LNG plant. with the Department of Consumer and Employment Protection (DOCEP). The audit We maintained dust suppression during is required under the national standard for the earthworks of the new LNG plant the control of major hazard facilities. to minimise the effect of dust during We reviewed feedback from last year’s construction activities. stakeholder interview process and whilst The two main safety areas on which we we rated positively, we improved and focused our attention during the year were maintained our stakeholder contact the ongoing protection of employees and through local committees. We presented visitors to our plant and compliance with on our safety report and sustainability the national standard for the control of report which included items raised in the major hazard facilities. stakeholder feedback. Mechanical Engineer Ruckshan Rolin (left) and Draftsman Bob Steele discuss an emergency special risk plan drawing.

54 Wesfarmers LPG Wesfarmers

The review of the internal competency Compliance standards, including training workshops, Environmental continued this year to ensure that they matched current plant status. Approximately We are not aware of any potential non- 67 per cent of the internal competency compliance with environmental legislation standards scheduled for completion or other environmental requirements during Training were completed this year. The review the year. process continues. Environmental National Pollutant Inventory (NPI) Our induction programme for all new Our Fitness for Work (Alcohol and Drugs) Emissions notifiable under the NPI were employees and contractors addresses policy continued to be applied. A total of estimated for oxides of nitrogen, carbon environmental awareness of their work area 159 random tests was conducted with four monoxide and particulate matter. Data for the with emphasis on response to product spillage positive tests (one employee and three 2005/2006 reporting period was submitted and general housekeeping. There were 302 contractors) in breach of the policy. to the DEC. Detailed information is available inductions carried out this year. In addition, These personnel were subject to counselling at: www.npi.gov.au. All our substance our operator training programme covers and disciplinary procedures as provided in emissions for last year were ranked by the procedures for the operation of the flare and the policy. NPI as ‘low’. odorant systems to minimise the formation of black smoke and odour from the plant. Emergency Health and safety Health and safety Our comprehensive annual emergency We are not aware of any potential non- response training programme is relevant to All employees and contractors must attend compliance during the year with health and each employee’s position. This includes a safety induction programme before being safety legislation or other health and safety basic, intermediate and advanced fire allowed access to the process area to ensure requirements, except as set out below. fighting, breathing apparatus training, that they are aware of hazards, work permit One of our contractors associated with search and rescue and fire ground requirements, occupational health and safety the construction of the new LNG plant command programmes. and emergency response procedures. received two safety improvement notices A comprehensive competency-based As part of our Safety Report requirements, from WorkSafe, due to scaffolding-related training programme is in place for all process 31 employees completed an advanced fire issues. At the time corrective measures operators involving demonstration of the fighting course, 11 completed the fire ground were in the process of being implemented acquired competencies against internal and command course and 17 went through the fire and once completed were notified national standards. awareness and control programme. to Worksafe. DOCEP has agreed for us to carry over some Safety Management System (SMS) 55 minor compliance issues, mainly related to text All health and safety policies and procedures changes within the Safety Report to reflect are referred to in our Safety Report which Wesfarmers LPG current practice. The next Safety Report is subject to independent and regular audit update has been scheduled for late 2007. and overseen by DOCEP. The Report-related matters are discussed with DOCEP at our Air (Atmospheric emissions) Licensing and approvals regular meetings during the year. Dust We are not aware of any potential non- To control dust, large areas of grass compliance during the year with licensing Specific health and safety procedures cover have been planted and are maintained. or approval conditions or other requirements, working with high voltage electricity, accident except as set out above under ‘Health and incident investigation, manual handling, We provided dust suppression during and Safety’. working in confined places, height safety and construction activities associated with the job hazard analysis. new LNG plant. Our plant operates under licences issued by the DEC and DOCEP. All modifications to the operating plant are Odour reviewed and approved by senior plant Propane and butane are naturally odourless. Management systems management prior to implementation. For safety reasons, we are required by Procedures ensure that all changes are fully Environmental Management legislation to inject low levels of ethyl documented to allow independent audit System (EMS) mercaptan (odorant) into the gas. This gives and review. We do not have an EMS. Our greatest it a distinctive odour allowing leaks to be potential environmental issue is a significant As a result of participating in the Wesfarmers detected. The injection system is closely hydrocarbons release. As this is also Energy Health, Safety and Environment (HSE) monitored as even minor drips can give rise to our greatest potential safety issue, our project, we have adopted the suite of SMS offensive odours. Any leak is quickly repaired environmental policy and procedures are, in being implemented by Wesfarmers Energy. and spillage contained and neutralised. effect, managed through our Safety Report We will implement the electronic HSE activity One odour complaint was referred to us by and our DEC licence conditions. We have an management system (First Priority Enterprise) an industrial neighbour during maintenance environmental policy covering the site. and competency systems in 2007. of our equipment that odorises the gas.

An internal review was undertaken to identify Policy Greenhouse gas emissions how we could implement an EMS, and in We are committed to providing a healthy Our total greenhouse gas emissions were particular an aspects and impacts register. and safe workplace for all employees and estimated to be 136,305 tonnes of carbon Quality system visitors to the Kwinana extraction plant and dioxide equivalent, down six per cent on last our gas export facilities. Our safety regulations year, and this equates to 383 tonnes of carbon While we recognise that management of were reviewed and updated during the year. dioxide equivalent per day of production, the quality of our products is a key element Identification and control of hazards and down eight per cent on last year. We have of our business, we do not have a formal prevention of incidents and injury are of the used a rate per day of production rather than documented quality management system. highest priority. This is achieved through a rate per tonne of production because our We have a Quality Assurance system meeting a consultative process which defines and plant operating requirements mean that our the requirements of ISO 9001 for the testing, implements training, policies and procedures greenhouse gas emissions are more or less inspection and servicing of safety relief valves. for the wellbeing of all employees. constant irrespective of the amount of LPG These valves are tested at prescribed periods. The Occupational Health and Safety produced and it is therefore a more meaningful An independent audit was undertaken in Committee continued, with the election of measure when looking at reducing our January 2007 and our certification continues. a new Safety and Health Representative. greenhouse gas emissions.

Instrument and Electrical Technician Danyul Cvitan conducting checks on an actuator valve. This figure includes the following substance Stormwater run-off from paved sections of Water 56 emissions: the processing areas is directed to oil/water Consumption • 126,963 tonnes of carbon dioxide (CO ); interceptors where any oil present is recovered. 2 Water use during the year related to plant • 442 tonnes of methane (CH ); and 4 A contract waste disposal firm removed this processes and general site amenities, such as oily water waste, totalling 13,000 litres. • 219 kilograms of nitrous oxide (N2O). kitchens and bathrooms.

The greenhouse gas emissions were largely Recycling initiatives Total scheme water consumption was due to fuel gas consumption (approximately estimated to be 16.3 megalitres, down 35 per Paper and cardboard recycling bins continued 90 per cent) and fugitive gas emissions due cent on last year, due to reduced use of the to be used as part of our paper products to gas turbine starter gas (approximately water treatment plant. recycling policy and about 81 cubic metres of six per cent). paper and cardboard were removed by our Our total water consumption per day of Wesfarmers LPG Wesfarmers Noise waste management contractor. production was estimated to be 45.8 kilolitres, The extraction plant operates 24 hours a day. down 36 per cent on last year. Land There are items of rotating equipment giving Reuse and recycling rise to a low level of background noise at Flora and fauna The majority of water used for deluge system the plant boundary. With the addition of the Extensive landscaping including trees testing is returned to the storage pond for new LNG plant noise reduction options were and shrubs is maintained to improve the reviewed to ensure that we continue to comply reuse. appearance of the facility and minimise dust. with the noise regulations. Discharges to surface and Contamination Other emissions groundwater The existing lead and zinc contamination We have not yet prepared our report to the NPI Three bores operating on the site provide discussed in previous reports was reported for the 2006/2007 reporting period or finalised water for garden reticulation and for to the DEC following the introduction of the our data estimates. However in 2005/2006 our emergency response. Contaminated Sites Act 2003, which came three most significant emissions were oxides of nitrogen (NOx) (350,000 kilograms to air), into effect in December 2006. carbon monoxide (50,000 kilograms to air) and Resource usage particulate matter (5,500 kilograms to air). During plant shutdowns, or occasionally to Energy control pressure in operating vessels, gas has Total energy consumption was estimated to to be released from the process plant. be 2,084,142 gigajoules, up 3.5 per cent on Lost time This gas is safely disposed of through last year. combustion flares. The flare tips are A highlight of this year’s safety performance continuously monitored in the control room via Our total energy consumption per day of was our achievement for a fourth consecutive a closed circuit camera. production was estimated to be 5,854 year of a zero Lost Time Injury Frequency gigajoules, up one per cent on last year. Rate with no Lost Time Injuries (LTIs), during In the event of a high flaring rate, additional the year (see Figure 1). Our Average Lost combustion air is fed to the flare tips to Energy sources are detailed below. Time Lost Rate, which provides a measure of minimise the formation of black smoke. the severity of such injuries, was zero again. Fuel Waste We achieved four years LTI-free in February Petrol, diesel and LPG accounted for less than 2007 and this performance was recognised Solid waste one per cent of our total energy consumption by giving a safety award to site personnel for Solid waste during the year consisted of by gigajoule. Our petrol, diesel and LPG their efforts. These statistics include contractor general site waste. consumption was estimated to be 25 kilolitres, hours and incidents. 23 kilolitres and less than one kilolitre, We had two employee and three contractor Our total solid general waste stream during the respectively. year was estimated to be 744 cubic metres, up injuries during the year, requiring medical less than one per cent on last year. All of this Electricity treatment. is disposed of as landfill. There is no landfill of Electricity accounted for less than one per Safety statistics, including information on waste on-site. cent of our total energy consumption by employees and contractors, are reported to Total solid waste disposed of to landfill per gigajoule. Our electricity consumption was Wesfarmers Energy. thousand tonnes of production was estimated estimated to be 4,930,700 kilowatt hours. Workers compensation to be 4.0 cubic metres, compared with 4.6 last year. Natural gas For a second consecutive year there were Natural gas accounted for 99 per cent of our no workers compensation claims reported Liquid waste total energy consumption by gigajoule. (see Figure 2). Liquid waste during the year consisted of Our natural gas consumption was estimated Hazard and risk waste oil and was estimated to be 2,600 litres to be 2,064,518 gigajoules. which was collected by a contractor, down Programmes 81 per cent on last year. Energy Efficiency Opportunities Our plant has been designed to have a This reduction was mainly due to non change Through our parent company Wesfarmers very low environmental, health and safety out of the lubricating oil on our recompressors Limited, we are a participant in the risk. All products will evaporate if released and that this year there was no removal of Commonwealth Government’s Energy to atmosphere, leaving no soil or water- stockpiled waste oil. Efficiency Opportunities programme. contaminating residues. Process Engineer Matthew Neesham discussing the results of the Quantifi ed Risk Assessment for 57 the new LNG plant. Wesfarmers LPG

Figure 1: Lost Time Injury Frequency Rate* 7.2 0.0 0.0 0.0 0.0

2003 2004 2005 2006 2007 1 July 2002 - 30 June 07 (as at 30 September 07) *Contractor hours and LTIs included

Figure 2: Number of workers compensation claims 1 3 2 0 0

2003 2004 2005 2006 2007

The Permit to Work system continued and Two site emergency muster point exercises (Alcohol and Drugs) policy, with the completion workplace safety inspections were conducted were successfully carried out to test employee of random alcohol and drug testing. by our safety and health representatives as understanding of and compliance with We continue to provide an Employee part of our hazard identification and control emergency response procedures. Assistance Programme that offers programme. independent professional and confidential Materials handling and storage counselling to all employees and their Emergency response We operate under an annual DOCEP licence immediate families. We have an Emergency Management Plan as a Major Hazard Facility covering the storage We also have a childcare referral service as part of our licensing requirements as a of dangerous goods, which includes LPG, to provide employees with advice about Major Hazard Facility. This plan describes the condensate (pentane), LNG, ethyl mercaptan childcare services. organisation and training of employees and (odorant), liquid nitrogen, flammable gas and Voluntary influenza vaccinations were offered contractors to reduce the risk to personal flammable liquids. to employees and long-term contractors. safety and the surrounding environment in the event of an emergency. Risk assessment As part of the new LNG plant referred to An emergency desktop exercise scenario earlier, a Failure Modes and Effects Analysis involving a simulated release of gas from our (FMEA) was conducted for the LNG storage residue gas line was carried out this year. tank, which was accepted by DOCEP. The exercise involved role play of an injury Work following the preliminary Quantified to an employee and gas release to test our Risk Assessment (QRA) continued including on-site emergency response and included Stakeholders discussions with DOCEP on the scope of involvement of external resources including work to complete the final QRA for the new Our stakeholders include our employees, our our gas supplier, Wesfarmers Energy, LNG plant. A Hazard and Operability Study customers, relevant government agencies, the emergency services, industrial neighbours (HAZOP) was also completed for the new local Kwinana community in which we operate and government agencies. LNG plant. and shareholders in our parent company, The exercise facilitator’s report confirmed that Wesfarmers Limited. our Emergency Management Team is capable Employee wellbeing Employees are encouraged to provide of managing a major emergency. We continued with our Fitness for Work feedback on this report. Process Operator Stuart MacNeilage checking loading equipment for an LPG shipment.

58 Wesfarmers LPG Wesfarmers

Response to 2006 Stakeholder Survey Council (KIC) and its sub-committee the Communication Kwinana Industries Public Safety Group (KIPS). We reviewed the 2006 Stakeholder Survey Newsletters and reports and found that although we rated positively Member companies maintain a management Information is provided through the KIC on the measured criteria, one opportunity system for response within the Kwinana as required. The 2006 Wesfarmers Social identified by the survey was to formalise our industrial area to control emergencies that Responsibility Report was available to engagement with stakeholders. We hosted may arise within the boundaries of a member all employees and circulated to selected and presented to the Kwinana Industries company site. stakeholders. Public Safety Group Liaison Group (KIPSLG) Member companies have a mutual aid plan on our Safety Report and our section of the We are involved in the Kwinana Industries to integrate emergency management where Wesfarmers 2006 Social Responsibility Report Council Community Information Service which appropriate. This plan allows them to obtain this year. We requested participants provide is a public phone-in system, established in assistance from neighbours in the event of an feedback on any potential improvements to partnership with the KIC and the Western emergency. our part of the report. Australian police service, which provides the community with information about industrial Community support Feedback/Complaints events within the Kwinana industrial area. Senior management handles any complaints We continued to participate in the South from the community. Metropolitan Youth Link (SMYL), which Website provides work experience in the mechanical We maintain an environmental complaints Our website www.wesfarmerslpg.com.au trades disciplines for local school students. register. One odour complaint was referred includes information about our operations for The SMYL programme was extended this to us this year by an industrial neighbour the community, including environmental, safety year to include students for work experience during maintenance of our odorant system and health information relating to our business. in plant operations as part of their certificate and was resolved. course in Process Plant Operations. Liaison groups Liaison with authorities We continue to be involved in the KIPSLG. We continue to support a number of This allows us to formally consult with state We maintain working relationships with community initiatives including, the Kwinana government departments and agencies, local DOCEP and the DEC through our involvement Industries Education Partnership (KIEP), government organisations and community with regular Safety Report meetings and Rotary Club, Lions Club and research in interest groups in matters relating to our communications where we discuss our partnership with the University of operations. operations. Western Australia.

Action groups Our Case Study on the next page details our We are a full member of the Kwinana Industries involvement with the Blue Light organisation. CASE STUDY 59 Wesfarmers LPG

Blue Light - working with The programme provides an opportunity for police, adult community members and young people to meet regularly. young people Blue Light encourages communication and the development of Blue Light has provided a valuable meaningful relationships built on trust and mutual respect. service in Western Australia since As part of our ongoing commitment to the local community, its inception in Albany in 1984. we are proud to support the Blue Light Streetsmart The Blue Light programme is based handbook initiative. on early intervention to prevent The Streetsmart handbook contains information directly relevant for school leavers including information regarding crime and encourages young drugs, sex, money, leaving school, driving, healthy mind and people to become responsible much more. It is distributed to students through their local community citizens. schools, including those in the Kwinana area. Details are available via the Blue Light website www.bluelight.com.au.

PRIORITY PRIORITY No workplace injuries. Implement electronic HSE activity and competency systems. PRIORITY Lost Time Injury Frequency Rate (LTIFR) of zero. PRIORITY Review and update our Safety Report. PRIORITY 08 Identifi cation and control of hazards. PRIORITY PRIORITIES FOR Conduct compliance audit of our Safety Report. PRIORITY THE FUTURE No signifi cant release of hydrocarbons to the atmosphere. PRODUCTS AND SERVICES IN AUSTRALIA AND NEWZEALAND. PACKAGING, MATERIALS HANDLING AND LIFTING PRODUCTS AND INDUSTRIAL CONSUMABLES, SAFETY, WE ARE A LEADING SUPPLIEROFENGINEERING Industrial & Safety The dedicated flThe dedicated roomat ammable andcombustiblegoodsstorage the Blackwoods distribution centre at CarolePark,the Blackwoodsdistributioncentreat Queensland. 07 07 PRIORITIES OUTCOMES 61

Improve our safety performance by at least halving Not achieved. LTIFR of 4.6, down by eight per cent from 5.0 last year. There were 25 LTIs. our LTIFR each year with a target of zero LTIs. This data includes Bullivants.

Improve our safety performance by reducing our Not achieved. There were 258 injuries compared with 280 last year. Of these 216 were recorded in Australia, total number of injuries (lost time, medical treatment compared with 239 last year, and 42 in New Zealand, compared with 41 last year. and fi rst aid) by 30 per cent.

Continue the implementation of GetSAFE across Achieved. GetSAFE has been launched in all states in Australia, including an annual branch Health, Safety and Australia, including change and communication Environment (HSE) plan. Monthly updates on HSE performance are communicated to all employees through initiatives. the Managing Director’s monthly newsletter, In The Knoww.

Incorporate positive HSE performance indicators Achieved. Positive HSE performance indicators are included in employee Performance and Development Plans. in our performance management systems.

Reduce manual handling injuries by 30 per cent. Not achieved. There were 108 manual handling injuries compared with 67 last year. Of these 91 were recorded in Australia, compared with 54 last year, and 17 in New Zealand, compared with 13 last year. Our employees are involved in many manual handling activities increasing the risk of exposure to injuries in this regard. We continue to address injury prevention through the implementation of our GetSAFE management system.

With more than 240 outlets we trade in Australia as Blackwoods (incorporating Atkins and Bakers Construction and Industrial), Bullivants, Motion Industries, Mullings Fasteners and Protector Alsafe. Our businesses in New Zealand are Blackwoods Paykels, Packaging House, NZ Safety and Protector Safety Supply. We employ about 3,200 people.

OVERVIEW We are committed to focus continuously on we are also implementing an automated the pursuit of sustainable outcomes within process for producing shipping declaration our operations. These outcomes must be documentation when transporting economically viable, socially responsible dangerous goods. and minimise any adverse impact on the In continuing our efforts to better manage environment. energy consumption, during the year we As part of this commitment, the three main purchased 116 new dual fuelled (LPG and environmental areas on which we focused petrol) fleet vehicles. Employees are required our attention during the year were storage to use LPG except when it is unavailable. and transportation of dangerous goods, Our existing fleet of petrol-only vehicles continuing our efforts to better manage will be replaced gradually with dual fuelled energy consumption and participating vehicles over the next four years, as existing in activities aimed at preserving our vehicles are changed over. environment. Energy saving initiatives are an important Our distribution centres hold the majority of consideration in the design of all new our dangerous goods. Following on from the facilities. This year we integrated energy and review of these centres as reported last year, water saving improvements into our new state-of-the-art Blackwoods distribution each distribution centre storing dangerous centre at Carole Park in Queensland which goods was upgraded. Improvements opened in April 2007. Further details are undertaken included the installation of contained in our Case Study on page 69 of secure enclosures for flammable aerosol this report. products and licensing or similar approvals for the storage and distribution of dangerous Opportunities to preserve our environment goods. In Australian distribution centres were identified during the year. In Sydney and Melbourne we participated in ‘Business the premier lifting, rigging and materials with the exception of its safety statistics. 62 Clean-Up Day’, a Clean Up Australia initiative. handling business in Australia and the opening Bullivants’ systems are detailed in the In New Zealand our Packaging House of our Blackwoods Distribution Centre at management systems section of this report. business supported the Department of Carole Park. Conservation in its efforts to save the Kiwi, Although we did not halve our Lost Time Injury which is under threat of extinction. Frequency Rate (LTIFR) this year, we did We focused our attention on two main reduce it by eight per cent to 4.6 (compared safety areas during the year. These were to 5.0 in 2006). This data includes Bullivants. the continuing implementation of our new As we continue to focus on improving safety integrated health, safety and environment in the workplace in Australia there were Training HSE management system known as GetSAFE particularly good results in Blackwoods central We continue to invest in programmes and and a strong focus on forklift safety. region (New South Wales and Australian resources aimed at developing our people in Industrial & Safety Capital Territory) with a reduction of 71 per cent In February 2007, the implementation of our support of our pursuit of sustainability. GetSAFE Management system, as reported in the LTIFR and 73 per cent in Lost Time last year, extended to all remaining Australian Injuries (LTIs), whilst Blackwoods southern In Australia, we implemented a revised states. This includes the introduction of an region (Victoria, Tasmania and South Australia) induction training programme this year, annual HSE plan in each of our branches. and Protector Alsafe recorded zero LTIs. NZ which continues to provide new employees The plan requires branches to undertake Safety, Protector Safety and Group Support in with information relating to company safety monthly activities. New Zealand also recorded no LTIs across any standards, business structure, physical work of their business locations. environment and employment conditions. Forklift operation is a high risk activity in our business. During the year we implemented Although GetSAFE facilitates the collection of Ongoing training is also provided where traffic management initiatives at many most HSE information, we continue to gather relevant in point-of-sale solutions, field selling branches, aiming wherever possible to further data from our branches and distribution solutions, recruitment and selection, equal distance people from operating forklifts. centres through a survey. This year, responses opportunity and performance management. We aimed to heighten employee awareness of were received from all branches. Online resources to support this training were traffic management issues through training. made available on our intranet. Unless otherwise stated, data provided in this Operational highlights this year included the report is for our combined Australian and In Blackwoods, we introduced a five-day acquisition in December 2006 of Bullivants, New Zealand businesses, excluding Bullivants, residential regional and branch manager development programme to give managers the opportunity to understand the business drivers and to develop their leadership capability. Thirty-five employees attended the programme this year and we expect all managers will attend this training within the next 18 months.

Training is also fundamental to achieving our priorities in HSE. In Australia, our GetSAFE management system incorporates HSE training requirements for all positions within our division. We use a variety of delivery methods including toolbox talks, online competency- based training and formal face-to-face training.

Our New Zealand businesses have continued their HSE monthly awareness communication to increasing employee awareness across a range of topics, including safe racking and stacking, traffic management and floor plans, driver fatigue, chemical hazards, cuts and abrasions, fire evacuation and manual handling.

Environmental Our environmental policies and accountabilities are communicated to all new employees during induction programmes and scheduled toolbox talks, as described below.

Dangerous goods awareness training was delivered to 37 employees. We provide spill kits and relevant training wherever dangerous goods are stored and distributed.

In New Zealand, we continue to have trained Protector Alsafe Registered Training Organisation Manager Andrew Goodlace at the safety training centre, dangerous goods approved handlers at at Chipping Norton, New South Wales. relevant sites. We also provide biosecurity In New Zealand, public Occupational and Location Certificate for their stationary diesel training through the New Zealand Ministry Health Safety (OHS) training was conducted tank. A Site Certifier has been contacted and 63

of Agriculture and Forestry for employees during the year in the following areas: will inspect the location in order to identify Industrial & Safety opening shipping containers. • implementing the Health and Safety in any requirements prior to having the Site Employment Act 1992 in the workplace; Certificate issued. Health and safety • Health and Safety Regulations 1995 and National Pollutant Inventory (NPI) In order to reduce the occurrence of safety guidelines plus critical Issues for safety in incidents in our business we aim to ensure that the workplace; We did not use any of the substances listed all employees, including contractors, receive • managing occupational overuse syndrome under the NPI during the year and therefore the appropriate health and safety training to and general office safety; were not required to report under the NPI. competently perform work activities. • preventing hearing loss at work; Health and safety Training begins on the first day of work when • hazard management in practice; We are not aware of any potential non- all workers receive a face-to-face health • accident reporting and investigation; and safety induction from their manager. compliance with health and safety legislation • stress and fatigue, awareness and In Australia this year we implemented an during the year or other health and safety management in workplaces; and additional induction procedure for our requirements, except as set out below. • Hazardous Substances and New Account Managers, which covers topics We received six notices from relevant Organisms Act approved handler. specific to their daily activities including authorities covering safety- related issues. driver training, mobile phone use and working Attendance at these public OHS seminars On 30 August 2006 and 1 September at customer premises. continued to be strong with 699 people 2006 WorkSafe Western Australia issued Toolbox talks are formal briefings for our participating during the year, including 155 four improvement notices to our Blackwoods employees to increase the knowledge and of our employees. Osborne Park branch and two improvement awareness around HSE matters. Toolbox talk notices to our Blackwoods Canning Vale Emergency templates are available on our intranet and branch respectively in relation to forklift safety. topics include manual handling, height safety, Our goal is to ensure that all branches and These matters have been rectified. distribution centres receive appropriate traffic management and fatigue management. No other notices were received for any of our emergency preparedness training. Online training is also available for contractor operations in other states. management, driver safety and ergonomics. This year in Australia 35 of our employees attended fire warden, fire awareness and fire Our branch and distribution centres’ HSE Formal face-to-face training conducted in extinguisher training. In New Zealand, fire plans address various internal compliance the business during the reporting period evacuation refresher training was undertaken issues applicable to our operations around included such areas as GetSAFE HSE and emergency evacuation briefings were Australia and New Zealand including: essentials for managers training (attended by conducted. • emergency response; 84 managers) and 12 employees attended First aid training continues to be made available • dangerous goods and hazardous safety committee training. throughout the business with a number of substances management; Forklift operation is a high risk operation employees undertaking training this year. • development of manual handling risk in our business. We trained a total of 274 During the year 10 defibrillators were assessments; of our employees in traffic management introduced to our larger employee and • audits/inspections; awareness including the hazards associated customer-visited branches, as they provide a • plant and equipment management; with forklift activities. better chance of survival in the event of a heart • traffic and pedestrian management; An initiative is currently underway to attack. They are fully automated, allowing a • isolation lock out/tag out; and develop competency-based training in risk person who has limited or no first aid training • working at height. assessment. The aim of the programme is to activate the machine. to provide selected employees with the skills Licensing and approvals and knowledge to facilitate a risk assessment. Compliance We are not aware of any potential non- A pilot programme was conducted at Environmental compliance with licensing or approval Blackwoods Smithfield in New South Wales We are not aware of any potential non- conditions or other requirements during the in December 2006 and our next step is to compliance with environmental legislation or year, except as set out below or above under identify and train other relevant employees. other environmental requirements during the ‘Environmental’ or ‘Health and Safety’. In February 2007 our Protector Alsafe year, except as set out below. Last year we reported that our dangerous business in Australia completed the necessary goods licensed/registered sites within our requirements to become a Registered Last year we reported that our distribution Southern, Central and New Zealand regions Training Organisation. Protector Safety centres were implementing required changes reviewed their dangerous goods processes. Training Services is now delivering nationally- to their dangerous goods stores. Each of our The reviews are complete and each of these recognised competency-based training in the distribution centres has now taken action sites has successfully met the relevant areas of: where required. legislative requirements for the storage and • confined space entry; In New Zealand, we reported last year that distribution of dangerous goods. Our branches • working at height; relevant sites were working with the that hold dangerous goods continue to review New Zealand Environmental Risk Management • use and operation of fire extinguishers; their dangerous goods processes to ensure Authority Test Certifier to achieve Site Location • hazard control and personal protective compliance with licensing requirements. Certification. This has been achieved. equipment; This year in New South Wales a focus was the • use and operation of gas detection This year our Blackwoods Paykels Timaru caging of aerosols storage areas as part of equipment; and branch in New Zealand was notified by fire safety requirements and the requirements • use and operation of breathing apparatus. the local council it needed to obtain a Site under the Summary Offences Act. It was also reported last year that in January Quality system Greenhouse gas emissions 64 2006 a licence to store aerosols was granted Bullivants and our safety products factories Our total greenhouse gas emissions were to Blackwoods at Canning Vale on the in New Zealand have current ISO 9001:2000 estimated to be 29,533 tonnes of carbon condition that non-sparking fluorescent quality system certification. dioxide equivalent, down 0.83 per cent on last lighting be installed. The required lighting is year. This equates to 2.45 tonnes of carbon now installed. Safety Management System (SMS) dioxide equivalent per hundred thousand We sell certain food items such as coffee, tea Bullivants and our protective clothing, safety dollars of sales down 4.3 per cent on last year. and sugar. In Australia and New Zealand the products and graphics factories in New The greenhouse gas emissions were largely Food Standards Code requires the registration Zealand are accredited to AS/NZS 4801. due to electricity (61 per cent) and vehicle fuel of businesses selling packaged food items Our New Zealand businesses retained use (26 per cent). where local councils enforce this requirement. Tertiary Level status under the NZ Accident We will continue to progress registration of Noise Compensation Corporation Workplace In New Zealand, we have identified noise Industrial & Safety unregistered branches with the relevant local Safety Management Programme, providing councils. In our Western region a bill, which is hazards at our Safety Products factory and the business with the maximum workers still before parliament will, if passed, require at Blackwoods Paykels Distribution Centre at compensation premium discount. branches to be registered with their local Wiri. We continue to monitor this issue and will implement any remedial actions as required. councils and to pay an annual fee. Other management systems Management systems In Australia all of our Bullivants laboratories Waste are certified to ISO 17025:1999 Mechanical Accurate measurements of the wastes we Integrated Management System Testing and ISO 17020:2000; On Site Visual generate continues to be difficult. This is Since the initial launch of GetSAFE, in Inspection and Non Destructive Testing. because many branches do not have heavy New South Wales and Victoria in March 2006, In New Zealand, our Techsafe Laboratory duty scales or hoists and this information we have continued to implement and improve continued accreditation to ISO/IEC is not provided by the waste management the system across Australia. 17025:1999- General Requirements for companies as scales are not fitted to many of their vehicles. One improvement this year was the review the competence of testing and calibration of our HSE planning and reporting. New plans laboratories. Solid waste have been developed for all of our Australian Solid waste during the year consisted primarily Policy operations and all branches are required of general waste and recycled paper. to report on a monthly basis as to their In Australia, we reviewed a number of Our total solid general waste stream during progress on the HSE actions contained GetSAFE policies during the year to ensure the year was estimated to be 29,208 cubic within their plans. that they remain current and meet legislative metres, down 31 per cent on last year. Of requirements. New policies were also A third party audit of health and safety this amount, we estimated that 14 per cent is introduced to provide a framework for issues in New South Wales and Victoria was recycled and 86 per cent is disposed of affecting our employees such as working from conducted in September 2006. This included as landfill. a comprehensive gap analysis of GetSAFE home and lockout and tag-out procedures. Total solid waste disposed of to landfill per against regulatory authority standards. All polices are communicated to our hundred thousand dollars of sales was The audit report indicated that we have employees through noticeboards and our estimated to be 2.07 cubic metres, down developed a robust HSE Management intranet. 43 per cent on last year. System, which meets the Health and Safety regulatory authorities’ requirements for self- Liquid waste insurance in Victoria and New South Wales. We generate an inconsequential amount of The audit also acknowledged that we have liquid waste. shown a commitment to the implementation The Wetherill Park (New South Wales) branch of a vigorous HSE Management System and of Motion Industries has a transmission an awareness of key risks for the business. servicing department generating gearbox oil The improvement opportunities identified by waste. The oil continues to be collected for the audit are being addressed through an Air (Atmospheric emissions) recycling by a contractor. audit action plan. Dust Our New Zealand business continues to follow We previously reported the potential dust Recycling initiatives their existing integrated HSE Management hazard in our glove-knitting department at our All our branches manage their own recycling. system. safety products factory in New Zealand. Many branches this year continued to separate paper, cardboard, bottles and cans All aspects of our management systems are The local council has since advised that from general waste. communicated to employees through our monitoring is not required due to the small intranet to ensure current information quantities released by the extraction system. Our Protector Alsafe Regency Park branch in is available. We are also now purchasing cotton that South Australia introduced the use of recycled produces less dust. bubble wrap for packaging of product to Environmental Management customers. Odour System (EMS) Our Blackwoods Regency Park branch in Our Bullivants business in Australia and our At our safety products factory in New Zealand South Australia, our Blackwoods Scoresby protective clothing, safety products and we continue to monitor the potential for any branch in Victoria and our Macquarie Park graphics factories in New Zealand have solvent fume hazards through baseline health office in New South Wales continue to recycle Environmental Management Systems that are monitoring for employees. We will implement used printer cartridges. It is not practicable to certified to ISO 14001:2004. any remedial actions as required. record exact quantities. Wherever possible we re-use packaging Contamination Resource usage materials to dispatch goods to our customers, 65 We are not aware of any land, water or air Energy but it is not practicable to record. contamination generated from company Industrial & Safety We continue to track our energy use and activities. We participated in ‘Business Clean Up Day’ in promote our energy awareness. February 2007, a Clean Up Australia initiative. Last year we reported that our Blackwoods Energy use during the year related primarily to The day provides an opportunity for Australian Coopers Plains branch in Queensland had two electricity, gas and fuel. businesses to help improve the quality of underground fuel tanks. The branch has since the environment and work towards reducing relocated to Carole Park in Queensland and Total energy consumption was estimated to the property at Coopers Plains was sold. waste. Employees from Blackwoods branches be 176,234 gigajoules, down 3.5 per cent on Even though the remediation we intended to in Victoria, New South Wales and the ACT last year. carry out as reported last year did not occur took part in these activities. prior to the sale, the purchaser was made Our total energy consumption per hundred thousand dollars of sales was 14.6 gigajoules, Land aware of the existence of the underground fuel tanks. down 0.2 per cent on last year. Flora and fauna Energy sources are detailed below. Rehabilitation There are no known direct impacts on flora We are not aware of any rehabilitation activities Fuel and fauna by our operations. required as a result of company activities. Petrol, diesel and LPG accounted for 59 per cent of our total energy consumption by gigajoule. Our petrol, diesel and LPG consumption was 2,747 kilolitres, 97.06 kilolitres and 231 kilolitres, respectively. During the year we purchased 116 new dual fuelled (LPG and petrol) fleet vehicles. LPG is a cleaner fuel than petrol. LPG vehicles emit about one third of the reactive organic gases of petrol-fuelled vehicles. Nitrogen oxide and carbon monoxide emissions are also 20 per cent and 60 per cent less, respectively. Our existing fleet of petrol-fuelled only vehicles will be replaced with dual fuelled vehicles over the next four years.

Electricity Electricity accounted for 40 per cent of our total energy consumption by gigajoule. Our electricity consumption was 19,763,300 kilowatt hours. As reported last year our businesses in New Zealand continue to use the Energy Report facility to measure and compare branch electricity usage per square metre. The aim is to investigate the reasons why some branches of the same or similar size consume more electricity. Where differences are identified, further work will be done with the objective of reducing overall energy usage.

Natural gas Natural gas accounted for 0.6 per cent of our total energy consumption by gigajoule. Our natural gas consumption was 1,001 gigajoules.

Energy Efficiency Opportunities Through our parent company Wesfarmers Limited, we are a participant in the Commonwealth Government’s Energy Efficiency Opportunities programme.

Water Consumption During the year we improved our accuracy for capturing water consumption information, which resulted in a significant increase over last year’s figure. Our water use relates primarily to general site amenities, such as The Blackwoods’ bi-monthly workplace publication featuring participants in the Business Clean Up Day. kitchens and bathrooms. Total water consumption was estimated to be 66 146 megalitres, up 80 per cent on last year. Figure 1: Lost Time Injury Figure 2: Number of workers Frequency Rate* compensation claims Our total water consumption per hundred thousand dollars of sales was estimated to be 8.6 5.3 4.3 5.0 4.6 152 177 89 108 126 12 kilolitres, up 75 per cent on last year. Our primary source of water is scheme water.

Reuse and recycling Our Blackwoods Canning Vale branch and our Group Support office in Macquarie Park, New South Wales have taken an initiative to save up to 887,880 litres of water

Industrial & Safety per year by introducing a waterless urinal system. This system is an environmentally 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 responsible approach to corporate hygiene 1 July 2002 - 30 June 07 (as at 30 September 07) that reduces water usage dramatically, avoids *Labour hire hours and LTIs included. environmentally damaging chemicals and reduces wastewater discharge and treatment. Our Average Time Lost Rate, which provides Workers compensation Our Blackwoods distribution centre at a measure of the severity of such injuries, was Carole Park implemented many water saving There were 126 workers compensation 22.5 (compared with 8.1 last year). initiatives. claims reported, relating to occurrences during Although we did not halve our LTIFR this year, the year, compared with 108 last year At our TotalCare operation in New Zealand, we did reduce it by eight per cent. As we (see Figure 2). where the cleaning of fire service uniforms is continue to focus on improving safety in the undertaken, water recycling forms part of workplace In Australia there were particularly Hazard and risk the operation. pleasing results in Blackwoods central Programmes region (New South Wales and Australian Discharges to surface and All our branches prepare an annual HSE Plan groundwater Capital Territory) with a reduction of 71 per cent in the LTIFR and 73 per cent in LTIs, in accordance with our strategic HSE plan We are not aware of any water discharges to whilst Blackwoods southern region (Victoria, objectives, targets and performance indicators surface and groundwater during the year. Tasmania and South Australia) and Protector and local and site-specific issues. As reported last year, our Industrial Products Alsafe recorded zero LTIs. In Australia, as part of GetSAFE, an online Warehouse at our Smithfield Distribution NZ Safety, Protector Safety and Group Support corrective actions register was made available Centre houses a detention tank that allows in New Zealand also recorded no LTIs across to all branches. This allows them to efficiently large volumes of stormwater collected from any of their business locations. track the progress for addressing issues roof discharge to be released gradually into To raise focus on all injuries, we now identified through workplace inspections and the stormwater system. communicate an ‘all injuries’ measure, which audits, testing and risk assessments. The includes first aid, medical treatment and lost Executive Leadership Team receives a monthly time injuries, rather than just lost time injuries. status report on the number of outstanding Our all injury frequency rate (AIFR) was corrective actions, including details on high- 49.9 (compared with 50.3 last year), and, risk corrective actions. during the year there were a total of 258 We continue to implement our contractor injuries (down eight per cent on last year). management policy reported last year as part These statistics include regular labour hire of the GetSAFE roll out. Lost time hours and injuries. A number of plant and equipment registers Our LTIFR was 4.6 (compared with five last Safety statistics are distributed and discussed were completed by branches this year as well year) see Figure 1 and, during the year, there by management each month and included in as risk assessments for high-risk items of plant were 25 LTIs. This data includes Bullivants. all our Board reports. such as forklifts.

Blackwoods Storeman Darren Carles in the Carole Park warehouse in Queensland using a specially-designed conveyor system to reduce manual handling. Protector Alsafe employee Lawrence Anderson 67 receives an infl uenza injection. Industrial & Safety

An online Material Safety Data Sheet database storage is an important design consideration. as a united team. In October 2006 we is maintained by an external provider for our Our new Blackwoods distribution centre at surveyed our employees to provide feedback various hazardous substances. Carole Park in Queensland was built with on our business, leadership behaviours and a tote conveyor system that delivers many suggestions for improvement. The overall Emergency response advantages in this regard. results suggest that our strengths were safety Emergency response continues to have a To support the release of our GetSAFE and respect. Our people also see a need to focus within the business. All our branches pallet racking and storage policy in ensure the company remains competitive. have implemented emergency preparedness Australia, a pallet racking safety inspection and response procedures in accordance with programme was implemented. This involved Our HSE Management Systems include the GetSAFE policy. an independent consultant conducting an policies to address various employee well- We have continued our national contract with assessment programme at a number of our being issues including: CHUBB to provide emergency equipment branches. Recommendations arising from the • non smoking; servicing at all our Australian branches. inspections are currently being implemented at • health assessment and monitoring; those branches. As mentioned previously, this year we • drugs and alcohol; purchased 10 defibrillator ‘heart starter’ Risk assessment • injury/illness management and return to machines to provide additional medical Detailed site specific risk assessments work; and emergency response capability. continue to be undertaken and hazards • Workplace Harassment and Violence Materials handling and storage reviewed for all sites. Control measures recommended in the risk assessments Employee health assessments are carried out We had 108 manual handling injuries form part of the HSE plan for each branch/ for new and existing employees and based on compared with 67 last year. Of these, 91 were department. A key focus of risk assessments the risk profile of the position. recorded in Australia compared with 54 last has been in the area of manual handling, year and 17 were recorded in New Zealand, Our Employee Assistance Programmes (EAP) which continues to be a significant cause of compared with 13 last year. Manual handling in Australia and New Zealand continue to be the injuries in our business. injuries accounted for 42 per cent of our total accessed by our employees. The counselling injuries this year. In Australia, our risk assessment programme and consulting services offered by our EAP in GetSAFE was reviewed this year as a result Our employees are involved in various providers are professional, confidential and of the audit mentioned earlier in the report. materials handling and storage activities free of charge to employees and members of In particular, our risk assessment forms and including unloading, packing, unpacking and their immediate families. matrix were revised to ensure hazards that storage of products. In April 2007 we launched presented a high risk were given the required a project to develop visual task cards to This year in Australia, branches in our priority for immediate action. provide guidance for avoiding manual handling Southern, Central and Western regions offered risks associated with common activities With mobile plant being a high-risk activity influenza injections to their team members. performed within a warehouse environment. In in our business, daily forklift pre-operation In New Zealand, a number of employee addition, we have developed a draft packaging inspections are completed at our branches and wellbeing initiatives have been implemented standard that will require our suppliers to a quarterly forklift compliance checklist was include lifting information on packaging introduced for our branches in March 2007. this year. Our Blackwoods Paykels branch handled by our employees and customers. at Wiri established a gymnasium, whilst our Traffic and pedestrian control safety Group Support Office at Penrose and our To reduce the need for manual handling we use initiatives have continued to be progressively Safety distribution centre at Wiri introduced mechanical conveyors, mechanical and other implemented at branches and provided for in walking programmes. Other fitness initiatives material handling aides such as forklifts, pallet pre-planning of branch relocations. jacks and trolleys, pallet racking designed for included approximately 75 employees taking warehousing and other systems of storage Employee wellbeing part in the ‘Round the Bays Fun Run’ in such as conventional warehouse shelving. In We believe that our business success lies in March 2007 and an inter-business unit netball designing new facilities materials handling and the hands of all our people working together tournament held in June 2007. Communication employees, Qantas and suppliers through 68 We have HSE committees in place across our raffles and donations and gifted to the Sydney business as well as HSE champions in our Cancer Foundation. smaller branches. Committee meetings or Blackwoods in Western Australia was involved branch meetings are conducted regularly to in the Ord Valley Muster, which is an initiative Stakeholders address issues within that branch/department. of the Kununurra Chamber of Commerce Our stakeholders include our employees, As reported last year we continue to and Industry to attract visitors to the region, our customers, our suppliers and other implement the GetSAFE HSE Communication forge community spirit and generate valuable contractors, relevant government agencies, and Consultation policy. media attention and exposure of the East local communities in which we operate, Lessons learned on HSE issues are and shareholders in our parent company, communicated to employees via email or Kimberley region. Wesfarmers Limited. notice boards. As with previous years we continue to provide Industrial & Safety Response to 2006 Stakeholder Survey Newsletters and reports support to other community and social organizations. Examples of these are: The issues identified in the 2006 Stakeholder A HSE performance report is distributed and Survey presented the following opportunities: discussed by management each month and • local sporting clubs; • to address the need to improve OHS included in our Board reports. • schools; systems, including supply chain issues, Our internal monthly company newsletter • surf life saving clubs; GetSAFE continues to be implemented In The Know is circulated to all employees • Drug Awareness and Relief Movement; throughout Australia, as detailed in and focuses on ensuring our people are kept • Salvation Army; and this report; up-to-date with current performance and • Clean Up Australia Day. • our focus on the environment continues to initiatives on safety, financial results, business be strengthened with such initiatives this growth and our people. We also have a A number of our branches also made year as the introduction of dual Fit 4 Future newsletter which is published donations to schools and colleges. fuelled vehicles; quarterly to provide an update on strategic In New South Wales the Blood Bank mobile • to ensure internal stakeholder input, initiatives and key achievements to date. donor service attends at the Blackwoods commencing June 2007 the Executive In New Zealand, monthly awareness topics Smithfield distribution centre during the year Leadership Team will meet at the end and various newsletters are distributed to to collect donations from employees. of each financial year to review the past ensure employees are kept up to date in the 12 months performance in relation to area of HSE. In New Zealand, our Packaging House sustainability issues, as well as to identify business supported the Department of sustainability issues and priorities for the Website Conservation in its efforts to save the Kiwi, next 12 months; Information about our operations, including one of New Zealand’s national symbols, which • data collection on sustainability issues Material Safety Data Sheets for specific is under threat of extinction. is continually improving. In Australia, the products in our range, is available from the introduction of GetSAFE has resulted following websites: in many reportable areas now being www.blackwoods.com.au centralised. We continue to use an annual www.blackwoodspaykels.co.nz branch survey to obtain data in other www.bullivants.com/front/home.php areas; and www.motionind.com.au • human resource strategies to attract www.mullings.com.au excellent people and improve employee www.bakers.net.au retention remain a strong focus. www.protectoralsafe.com.au www.protectorsafety.co.nz Feedback/Complaints www.packaginghouse.co.nz We are not aware of any complaints during www.nzsafety.co.nz the year. Community support Action groups Our focus on community support increased As reported last year, in New Zealand, this year and our total contribution to employees are being encouraged to get charitable organisations was $23,048, involved with ‘Coach Corp’, which is an which includes employee contributions. initiative through the Department of Sport In one case in New South Wales, Blackwoods and Recreation NZ (SPARC). This programme Smithfield organised a Safety Awareness encourages volunteers to coach sport teams Week in early May 2007 in conjunction with or individuals. SPARC puts together a plan Qantas, one of our major customers. whereby businesses allow their employees to This event was aimed at increasing awareness take time during work hours to coach teams of Qantas employees about such issues as or individuals in sporting activities, without skin and respiratory protection and safety any reduction in their pay. This initiative was in general. Blackwoods and its suppliers launched last year and to date we have nine showcased their safety equipment and people involved with golf, hockey, orienteering, services. Over the course of this event, rugby, soccer, softball and touch rugby. money was raised from Blackwoods’ CASE STUDY 69 Industrial & Safety

Design focus on energy use, water and safety In April 2007, our Blackwoods distribution centre at Coopers Plains in Queensland relocated to a new purpose-built facility at Carole Park.

The building has an area of 11,077m2 and houses approximately 120 employees. The design team incorporated many energy efficient, water-saving and safety initiatives into this facility. With the brief to utilise the principles behind the Green Star Office Rating, energy-efficiency initiatives include: • installation of translucent panels in the warehouse roof area to allow natural light to all work areas, with a switching arrangement in the overhead lighting which allows only active work areas to be illuminated as needed; • installation of economy air-conditioning which reduces electricity consumption and improves internal air quality; The roof of the Blackwoods distribution centre at and Carole Park allows natural light into the warehouse. • the incorporation of 13 roller doors five metres high by six metres wide that feature mesh in their design. Each door Safety initiatives include: has 7.2 square metres of 40 per cent perforated mesh allowing a natural source of ventilation. The benefit to the • a first aid room fully equipped with an oxygen demand working environment during the hotter months, when system, a defibrillator, a blood pressure monitor and combined with the vented roof ridge, is increased air flow stretcher; and an associated cooling effect. This also reduces the • a dedicated flammable and combustible goods store; requirement for powered cooling devices. The cooling effect • a Forkalert system to warn pedestrians of forklifts and to is also maintained when all doors are closed and secured. automatically reduce their speed in defined zones; Water saving features include: • a conveyor system which improved many manual handling • the installation of a 140,000-litre underground water tank to tasks, in particular; save on processed water use with recycled rainwater to be • each conveyor crate is labelled with the safe load limit that used for toilet flushing and irrigation; is allowable for both the employees and the design of the • planting drought-tolerant native plants only in conjunction with conveyor system; 150mm mulch coverage for greater moisture retention; and • there are static accumulation lanes at each work zone to • diversion of excess stormwater and runoff into a allow orders to be filled at waist height; and bio retention basin-gross pollutant trap that filters the water • the conveyor accesses both levels of the picking areas, and prevents cigarette butts and other waste running greatly reducing the need to manually access the pallet to stormwater. loading gates.

PRIORITY PRIORITY Improve our safety performance by reducing Work with our suppliers to develop sustainability our total number of injuries (lost time, medical of sourced product. treatment and fi rst aid) by 30 per cent. PRIORITY PRIORITY Continue to improve effi ciency of energy Continue to drive our GetSAFE management system and water use. 08 and a safety-focused culture. PRIORITY PRIORITIES FOR PRIORITY Continue to implement waste management and THE FUTURE Continue to upgrade our facility network to improve recycling initiatives. customer delivery performance. PRIORITY PRIORITY Encourage employee involvement with the Continue to focus on the attraction, retention and community. development of people. AND AGRICULTURALSECTORS. MINERALS PROCESSING, INDUSTRIAL AND RELATED SERVICES TO THE MINING, SUPPLIERS OFCHEMICALS, FERTILISERS WE ARE ONEOF AUSTRALIA’S MAIN CSBP Scatena at thedischargelinewhichprovideswastestreamcarbondioxidefromourKwinana at Scatena Senior Project Engineer Harish Chopra (left) and Business Manager (Chemicals)Mark Senior ProjectEngineerHarishChopra(left)andBusinessManager ammonia plant to an industrial neighbour for sequestration inresiduedisposalareas. ammonia planttoanindustrialneighbourforsequestration 07 07 PRIORITIES OUTCOMES 71

At least halve our Lost Time Injury Frequency Rate Achieved. Our LTIFR was 2.2 compared to 5.9 last year. (LTIFR) with an ultimate aim of zero Lost Time Injuries.

Continue to reduce workplace injuries. Achieved. We improved our safety performance and reduced our number of workplace injuries.

Reduce contaminant emissions. Partially achieved. Reduced emissions in all environmentally signifi cant areas except ammonia from the sodium cyanide plant and nitrogen and phosphorus discharges to SDOOL.

Obtain or retain endorsement of our safety reports Partially achieved. Retained endorsement for existing safety reports. The ammonium nitrate business safety for our four major hazard facilities. report is to be considered by DOCEP in the second half of 2007 as part of the expansion of this business.

Continue to work safely and effectively to deal with Achieved. The Bayswater remediation project has made signifi cant progress and several other our historic wastes. projects were advanced.

Continue to use recycled water and contribute to Achieved. Ongoing use of water from Kwinana Water Reclamation Plant and we continue our water transfer reduced scheme water use in Kwinana. arrangements with an industrial neighbour to reduce their use of scheme water.

Continue to make benefi cial contributions to the Achieved. In addition to existing programmes we entered into a partnership with Youth Focus. communities in which we operate.

We operate a major industrial complex at Kwinana in Western Australia and other complementary facilities in regional areas and employ more than 600 people. CSBP Chemicals’ core products include ammonia, ammonium nitrate, sodium cyanide, sodium hypochlorite and caustic soda. CSBP Fertilisers manufactures, imports and distributes an extensive range of phosphate, nitrogen and potassium fertilisers, in blended and liquid form. The operations of our 75 per cent-owned sodium cyanide joint venture, Australian Gold Reagents Pty Ltd (AGR), are also included in this report, but Queensland Nitrates Pty Ltd, a CSBP/Dyno Nobel Asia Pacifi c joint venture is not included because we do not manage the business. In addition, subsequent to the 2006/2007 reporting year, we have acquired Australian Vinyls Corporation, based in Victoria, which will be included in next year’s report.

OVERVIEW The main challenge facing our business except for one instance in April 2007 caused on an ongoing basis is the safe operation by a significant rainfall event. We continue of our facilities in a way that minimises any to seek to optimise the efficiency of our pilot adverse impact on the environment or the nutrient-stripping wetland. communities in which we operate. During the year we accepted treated water In dealing with this challenge, the three main from the Kwinana Water Reclamation Plant environmental areas which we focused (KWRP). We continue to focus on managing on during the year were progressing the our water use and contaminant discharges. Environmental Management System (EMS), continuing to manage our environmental The main safety focus during the year emissions and effectively managing our was again identifying opportunities for water sources. improvement and risk management. This included a revised permit-to-work We commenced implementation of our system, which is being introduced upgraded EMS. progressively across the business, the Our wastewater is discharged through implementation of a drug and alcohol policy the Sepia Depression Ocean Outfall Line and risk assessment training for employees. (SDOOL). Since October 2005 we have not All of our programmes and policies support discharged any effluent to Cockburn Sound, our commitment to achieving zero harm to our workforce, whereby all risks are managed lunchtime seminars, email and distribution of remaining business units but we expect this to 72 as effectively as possible so that injuries or our external newsletter ‘Upfront’. All employees be completed over the next 12 months. negative outcomes are avoided. as part of their induction undertake an environmental tour. Emergency The focus of our emergency response function Health and safety is on the ability to respond to an industrial CSBP The focus on safety training contributes or medical emergency at our operating sites to our primary goal of zero harm to our and the stewardship of our products in the employees. We conducted 38 courses this community. year to train employees and contractors in Training We undertake annual fitness and medical the revised permit-to-work system, with over assessments for all the emergency response We have continued our focus on the training 300 attendees. In addition 117 employees and team to ensure that each person is physically and development of our employees by building contractors participated in confined space capable of undertaking any task required of a reliable training management framework that entry training and 82 employees attended them in an emergency situation. will ensure sustainability in the future. training in breathing apparatus. Where our products are involved in off-site We have appointed four training and During the year we introduced a drug and incidents we have the capacity to provide improvement coordinators in our business to alcohol policy. As part of the introduction of technical and operational support to our specifically manage the operational training this policy, education sessions were held to clients and government emergency response requirements of production areas. inform employees about the risks associated agencies. with drug and alcohol use. Under the The focus for training and development programme, employees are randomly selected At Kwinana we maintain a strong link with includes: Western Australia’s emergency management for drug and alcohol testing. • updating and developing learning materials authority the Fire and Emergency Services (including self-paced training modules and We also provide certification training in first Authority (FESA). procedures) for all technical processes; aid to our employees, with a total of 82 participants this year. This is beneficial to We are actively involved in local emergency • improvement in the management of training the business as it provides personnel who management committees for Rockingham records to allow for the identification of and Kwinana as well as being a part of the training needs; can apply first response techniques in an emergency. It is also of benefit to employees’ Kwinana Industries Public Safety Group. • improved quality of workplace competency families and the community generally. In addition, our emergency response assessments that ensure an appropriate coordinator chairs the Kwinana Industries All new employees and contractors are standard of skills are set and maintained; Mutual Aid Group. and required to complete an induction programme • the delivery of identified critical safety to ensure all people on our sites have a sound Compliance training in area training plans. understanding of safety rules and systems. A general induction is followed up with Environmental Environmental an area-specific induction that ensures We are not aware of any potential non- compliance with environmental legislation or We continue to use an electronic sign at the awareness of the potential hazards in other environmental requirements during the Kwinana site to promote environmental topics. particular places of work. year, except as set out below. We have developed a new look employee As reported last year, electronic media quarterly newsletter which began distribution in training packages are used for business unit During the year we notified the Department July 2007. Additionally, we provide information and contractor inductions in the ammonia, of Environment and Conservation (DEC) of to our employees on environmental issues ammonia nitrate, chlor alkali and sodium 48 reportable events. The increase from last through various means of communication cyanide plants. Similar electronic media training year was largely related to our wastewater such as the Managing Director’s newsletter, packages have not yet been developed for the discharges. We continue to work with the DEC

Registered Nurse Robin King (right) watches Reliability Facilitator Eli Knudsen take an alcohol test as part of our drug and alcohol testing programme. A multi-agency emergency response exercise was conducted at Southern Cross, Western Australia, during the year.

73 CSBP

to align our licence to levels in accordance plant. Four of these involved ammonia We have investigated each of these incidents with ambient environmental standards. exceedances of the licence target. and put in place remedial actions as We anticipate that several of these licence Two concerned hydrogen cyanide above necessary. limits may increase as they are currently the licence target. One was a potential We have been advised by the DEC that it will well below ambient standards necessary for non-compliance related to an exceedance take no further action in respect to any of the environmental protection. We are completing of the NOx licence limit from the incinerator incidents raised in last year’s report. a licence assessment report reviewing all on the sodium cyanide plant. The other of our potential environmental impacts, and potential non-compliance arose from the National Pollutant Inventory (NPI) this will be available for public review during NOx analyser reliability being less than Emissions notifiable under the NPI were 2007/2008. 90 per cent for the month of May; estimated for substances listed on the NPI. Of the 48 events, 16 were potential non- • thirty-two of the reportable events related Data for the 2005/2006 reporting period was compliances, 23 related to a reportable to waste water discharges to SDOOL of submitted to the DEC. Detailed information threshold (between 75 and 100 per cent of copper or cyanide. The concentrations in is available at www.npi.gov.au. All our the relevant licence limit) and nine related these instances were below the Cockburn substance emissions for last year were ranked to licence targets, which incur no potential Sound State Environmental Policy for by the NPI as ‘low’. enforcement action. ambient water quality and hence created no environmental harm. Ten of these were Health and safety Our reportable events for the year were as potential non-compliances related to follows: We are not aware of any potential non- licence exceedances and to date, two have compliance with health and safety legislation • two reportable events related to the prilling been signed off by the DEC with no further or other health and safety requirements during plant stack test results. One of these was action required; the year, except as set out below. a potential non-compliance related to a • three reportable events related to waste licence exceedance of an average of We received seven improvement notices from water discharged from the sodium cyanide 266 g/m3 (licence limit is 250 g/m3). WorkSafe during 2006/2007. Of these, four plant to our internal effluent system. We received a letter from the DEC advising related to our hydrochloric acid tanks; one Of these, one was a potential non- no further action regarding this event related to our sulphuric acid tank; one related compliance related to an exceedance is required; to an employee failing to wear the correct of our licence limit. This specific incident personal protective equipment; and one related • two potential non-compliances related to resulted in a letter from the DEC specifying to failing to report hazards. During the year, we licence exceedances of nitric oxides (NOx) no further action was required; also received three prohibition notices relating at the ammonia plant; • the remaining reportable event concerned to our hydrochloric acid storage area. • eight of the reportable events related to untreated surface water run off from our All notices have been resolved within the air emissions from the sodium cyanide Albany site. agreed timeframes. Chemists Ronesia Morris (left) and Seam Sieng 74 at our Kwinana laboratory. CSBP

All of the improvement notices issued by reviewed and reassessed. Environmental ammonium nitrate plants. As part of this WorkSafe and reported in last year’s report compliance is now managed in our SiteSafe Standard, each of these facilities has a safety have also been resolved. system. Annual environmental action plans report which describes the major risks and continue to provide the basis for improvements how they are managed. These reports are Licensing and approvals across the business. During 2007/2008 submitted to the Department of Consumer We are not aware of any potential non- we will focus on the review and upgrade of and Employment Protection (DOCEP) compliance with licensing or approval operational elements of our EMS. Resources Safety Division for endorsement conditions or other requirements during and are externally audited on a regular basis. Quality system the year, except as set out above under Each action arising from the audit is assigned ‘Environmental’ or ‘Health and Safety’. We maintained certification to AS/NZS to an employee, who establishes time frames As reported under ‘Noise’ we have potential ISO 9001:2000 for the chlor alkali and for completion of the action. Some actions non-compliances with regulations on the ammonium nitrate processes. This involved include developing long term improvements northern and eastern boundaries of our two satisfactory external audits. We also which are continually tracked with the Kwinana site. conducted 11 internal audits during the year. regulating authority until resolved. All relevant licences required under legislation The Kwinana laboratory continued As reported last year, a revised ammonium including Environmental Protection Act, accreditation to AS ISO/IEC 17025 2005 as nitrate safety report has been developed and Rights in Water and Irrigation Act, Poisons confirmed by the National Association of includes modifications associated with the Act, Dangerous Goods Storage Act and the Testing Authorities (NATA). Senior laboratory expansion of this facility. National Industrial Chemicals Notification staff were actively involved with NATA as It is anticipated that DOCEP endorsement will and Assessment Scheme were renewed. technical assessors, with mentoring of occur during in the second half of 2007. In addition, approvals were sought relating to university students via the University of WA As a producer of raw materials for explosives the following specific projects: Mentor Link programme, as well as with the and a range of other potentially hazardous • the Noise Management Plan for the WA branch of the Royal Australian Chemical chemicals, we continued our focus on Kwinana site was developed and has been Institute in the Management and Career security. During the year 119 employees approved by the DEC. This is available on Development group. successfully applied for Maritime Security our website; Our soil and plant analysis laboratory at Bibra Identification Cards, allowing them to work • an Upgraded Ammonium Nitrate Lake continued to participate in national unsupervised on the Kwinana Bulk Jetty. Production Facility Greenhouse Gas proficiency programmes overseen by the A security risk assessment has been Abatement Programme has been Australasian Soil and Plant Analysis Council completed and development of a compliant submitted to the EPA for approval. and international plant analysis programmes security plan has commenced to meet the The upgrade included a nitrous oxide overseen by Wageningen University in the requirements of Dangerous Goods Safety improvement plan as required by the Netherlands. Ministerial approval for the ammonium (Security Risk Substances) Regulations 2007. nitrate production facility; and Safety Management System (SMS) Other management systems • the Geraldton Liquid Fertiliser Manufacture Annual safety action plans provided the basis By adhering to our values and the Responsible facility was approved in March 2007. for safety improvements across our business Care codes of the Plastics and Chemical As we no longer have manufacturing with each department responsible for ensuring Industries Association (PACIA), our business operations in Albany, we are not required to that its plan was made specific to its area. has developed and maintains systems submit an Environmental Management Plan. The management of chemicals on-site and promotes behaviours that commit us However, we have voluntarily supplied a plan continues through the Chem Alert system. to handling and dealing with our chemical for our Albany site, which has been endorsed The system provides employees with a user- products properly at all times, from sourcing by the DEC. friendly interface to search, list and report on and manufacture through to transport, chemicals approved for use on-site and to distribution and end use. Management systems access relevant safety data. During the year we were audited against the Environmental Management System We have four major hazard facilities, as International Cyanide Management Institute’s (EMS) defined under the WorkSafe National Standard (ICMI) code of practice for the transport We commenced implementation of the ‘Control of Major Hazardous Facilities’. of sodium cyanide, for which we received reviewed and upgraded elements of our EMS. These are our ammonia, sodium cyanide, accreditation. We are also a signatory to the Our environmental risks are currently being sodium hypochlorite manufacturing and ICMI for the production of sodium cyanide and we were audited for compliance in March auditing programme, One-2-Five which is now issues were addressed and a dust suppression 2007. We are waiting for ICMI to finish a working within industry. In 2006 we received coating was applied to the stockpile. 75

‘completeness’ review of our audit documents. a rating of three stars and we are working on CSBP In addition, we also participate in an aspects of our water resource performance Odour international advisory group and an Australian- management system to improve this. Over the past 12 months there have been based working group to assist in promoting seven events which have resulted in nine and implementing the ICMI code. odour complaints from external stakeholders.

Policy Seven of the odour complaints related to five We have policies that outline our commitment events originating from the sodium cyanide to environmental, health, safety and facilities venting waste gases during shut down community issues as part of our business operations. As a result, the sodium cyanide operation. In addition, we are a signatory to Air (Atmospheric emissions) plant incinerator management plan has since the PACIA Responsible Care programme Please note that data in this section is been updated to ensure stakeholders are which has six codes outlining best practice generally obtained from point source contacted when waste gases are vented from in the areas of employee health and safety, emissions and will differ slightly from those a plant shut down stack. manufacturing safety, transport and storage reported as part of the NPI because of the way One complaint related to odours from the safety, community right to know, product in which the NPI uses standard assumptions, ammonia plant. stewardship and environmental protection. in part, to calculate potential emissions. In Through this association we contribute to some areas we do not exceed NPI thresholds There was a chlorine release during developing or commenting on legislative and we are therefore not required to report. decommissioning of the chlor alkali plant in proposals and relevant policies such as the December 2006. The start up of the sodium Voluntary Code of Conduct for the distribution Dust cyanide plant coincided with other operating of ammonium nitrate and major hazard Our dust emissions are associated with activities, resulting in a short term visible facilities or dangerous goods and security particulate emissions from various operating plume and detection of chlorine odours at issues in the chemicals industry. We are plants, materials loading on our sites and neighbouring industry. This incident is being actively represented at Board and Council unsealed surfaces. We estimate our dust investigated by the DEC. level in PACIA, the Kwinana Industries emissions using the relevant factors from Greenhouse gas emissions Council, the Chamber of Commerce and the NPI and reported them to the NPI in Industry of WA and the Fertilizer Industry September 2007. We are a participant in the Commonwealth Federation of Australia. Greenhouse Challenge Plus Programme. Dust from all sources reported under the NPI As reported last year our commitment We have reviewed our cooperative agreement last year (to 30 June 2006) was 75 tonnes. to working with the Water Corporation with the Australian Greenhouse Office (AGO) on our water auditing process continues. During the year we received two complaints and this has been agreed to. As part of our We participated as an industry test case for relating to dust from our phosphate rock stock participation, we submitted our 2006/2007 the Water Corporation’s diagnostic water pile impacting on a neighboring industry. These report during the year.

Environmental Advisor Digby Short at the gypsum stockpile at Wellard Road, in Leda, Western Australia. The greenhouse emissions summarised in this at our boundary. We have completed a noise received a letter advising no further actions 76 report differ slightly from those reported under management plan which has identified plant regarding this event are required. Based on the Greenhouse Challenge Plus Programme. modifications that could be taken to further modelling we do not believe the ambient In the Challenge report we use actual reduce noise at our boundary. We are no standards were exceeded in this incident. analytical data from our natural gas supply and longer a significant contributor to noise in any Emissions modelling conducted as part of the internal power generation but in this report we residential areas as defined by the regulations. CSBP ammonium nitrate plant expansion showed use the standard AGO emissions factors to that both the existing and the proposed plants ensure consistency across Wesfarmers. Other emissions meet the relevant ambient guidelines for We have not yet prepared our report to the NPI From May 2007 our CO emissions will be particulate emissions. 2 for the 2006/2007 reporting period or finalised reduced by providing up to 70,000 tonnes our data estimates, however, in 2005/2006 our per annum of CO to Alcoa through a third Chlorine 2 three most significant emissions were ammonia party, for sequestration in their residue Our chlor alert monitoring system was (170,000 kilograms to air and water), oxides disposal areas. We are also a member of the activated 115 times during the year. of nitrogen (220,000 kilograms to air) and BP Global Choice programme through which These alarms are set at very low levels in particulate matter 10 microns (75,000 kilograms we offset the CO emissions from our use of many parts of the chlor alkali plant to detect 2 to air). Further information is available at: diesel at Kwinana. chlorine before response levels are reached. www.npi.gov.au. All our substance emissions The monitors are situated throughout the plant Our total greenhouse gas emissions were for last year were ranked as ‘low’ by the NPI. and sound an alarm when chlorine is detected. estimated to be 1,277,546 tonnes of carbon Trigger levels are set well below that at which dioxide equivalent, down 4.72 per cent on last This is an overall reduction in our emissions of health can be impacted. Due to the sensitivity year. This equates to 0.92 tonnes of carbon this nature from 2004/2005. An environmental of these meters the chlor alerts can often be dioxide equivalent per unit of production, consultant, Parsons Brinkerhoff, completed caused by normal operating conditions and up 9.5 per cent on last year. a desktop audit of our Kwinana, Esperance, Bunbury, Albany and Geraldton sites from preparation of equipment for maintenance. The greenhouse gas emissions were largely which an NPI process map was formulated. On 4 December 2006, we ceased operation due to our ammonia plant (39.4 per cent), nitric The process map identified current emission of our chlorine production system. Some acid plant (50.9 per cent) and sodium cyanide points as well as ‘redundant’ emission points modifications have been made to our sodium plant (7.5 per cent). The reduction from the (emission points previously included, but hypochlorite production system and this will previous year largely relates to an unplanned which should not have been as no emissions stay in operation for approximately 18 months shutdown of the ammonia plant in April 2007. occur from these sources). The removal of (creating sodium hypochlorite from drummed these redundant emission points from the Noise chlorine gas). calculations has led to a decrease in emissions Noise emissions associated with the upgrade across all substances. Waste of our ammonium nitrate and sodium cyanide plants were outlined in the relevant Public Oxides of nitrogen Solid waste Environmental Reviews advertised in 2005. We measure the production of oxides of Solid waste during the year consisted primarily Our approved noise management plan was nitrogen in our sodium cyanide, nitric acid of general production waste, construction released to the public. Implementation of the and ammonia plants. All plants operated materials from the expansion of the ammonium plan has involved ongoing noise monitoring within licence limits for these emissions with nitrate facility and waste from demolition and incorporation of solutions where possible. the exception of two results for the ammonia activities at Bayswater. This has included installation of additional plant, one result for the sodium cyanide plant acoustic insulation and vibrational isolation Our total solid general waste stream during the and during the month of May 2007 the NOX in the existing nitric acid plant, with work year was estimated to be 925 cubic metres, analyser reliability for the sodium cyanide plant continuing. Our new nitric acid plant design 74 per cent less than last year. This is due to was less than 90 per cent. These four results incorporates a more effective silencer on the the recycling of a large volume of steel waste were reported to the DEC. Our total oxides discharge stack and a low noise cooling tower. in 2005/2006 as a result of the completion of of nitrogen emissions are calculated from the ammonia plant demolition. As reported last year we have potential measurements of emissions from these plants industry-to-industry non-conformances on and calculations from other sources, such as During this year 15 per cent of waste our northern and eastern boundaries. Noise motor vehicles. generated was recycled and 85 per cent was at the boundary between Coogee Chemicals disposed of as landfill. Particulates and AGR is above the current limit largely In addition to this 132 cubic metres of due to tonality associated with a cooling Particulate emissions of ammonium nitrate asbestos was also disposed to landfill. tower. The noise regulations continue to be from our prilling plant were below licence limits reviewed to potentially increase the industry- for the pre-dryer, the dryer and tower stacks Nine hundred and sixty-three tonnes of steel to-industry boundary level limits from 65dB(A) (see Figure 1), with the exception of one result and 1,670 cubic metres of concrete from to 75dB(A). If the limits are increased we will in May 2007 on the prill plant pre-dryer stack. Bayswater was sent for recycling during be in compliance with the noise regulations This result was reported to the DEC and we the year.

Liquid waste

Figure 1: Prill Plant Stack Emissions Liquid waste during the year consisted (grams per cubic metre) primarily of wastewater from our production 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 processes and stormwater run-off. Tower 0.021 0.024 0.028 0.015 0.020 0.019 0.017 0.017 0.025 At Kwinana our total effluent disposed to the Pre-Dryer 0.128 0.081 0.186 0.117 0.112 0.111 0.112 0.131 0.115 Sepia Depression Ocean Outfall Line (SDOOL) during the year was estimated to be 507,132 Dryer 0.133 0.168 0.128 0.145 0.091 0.058 0.067 0.092 0.065 kilolitres. This was 30 per cent less than last year due to our use of recycled water from In this time it has removed 3.3 tonnes of Our natural gas consumption was estimated the Kwinana Water Reclamation Plant, which, aluminium, 2.6 tonnes of fluoride and 4.3 to be 9,850,266 gigajoules. 77

because of its lower salinity than other water tonnes of iron from the groundwater, with a CSBP resources reduces the cooling water effluent. removal efficiency of 84.1 per cent of fluoride, Other materials In addition, our Albany site treated and 90.8 per cent for phosphorus, 98.8 per cent Our other raw materials are phosphate rock, disposed of 48,890 kilolitres of rainfall-related for aluminium and 99.1 per cent for zinc. sulphuric acid, water, caustic soda, sulphate of surface water and our Bibra Lake site disposed ammonia, single mono ammonium phosphate We have received positive feedback from of 4,674 kilolitres of industrial effluent to sewer. and ammonia which we manufacture from two audits conducted by the Department of We reused 20,052 kilolitres of wastewater at natural gas. Environment and Conservation in April 2006 Kwinana, a decrease of 11.7 per cent on and February 2007. last year. Energy Efficiency Opportunities Demolition of the buildings not containing We disposed of 390 kilolitres of liquid waste Through our parent company Wesfarmers asbestos began. One complaint of vibration from our Kwinana site, an increase of five Limited, we are a participant in the was received from a nearby business during per cent compared to last year. We estimate Commonwealth Government’s Energy demolition of the building footings. that 27 per cent of this is reused, with the Efficiency Opportunities programme. remainder disposed of at a licensed treatment The Preliminary Draft Local Structure Plan for Water facility. this site at Lot 10 Railway Parade, Bayswater, together with the design guidelines, was Consumption Recycling initiatives provided to the City of Bayswater and the Water use during the year related primarily We have a number of reuse and recycling Town of Bassendean for comment and was to our production processes, particularly our initiatives on-site, including the reuse of waste formally submitted early in September 2007. cooling towers at Kwinana. oil and drums, as well as the recycling of office The technology used to remediate the material, mobile phones, fluorescent light Total water consumption at our Kwinana, ammonia arsenic groundwater plume at tubes, batteries and scrap metal. Bibra Lake, Bayswater and regional depot Kwinana has not been as successful as sites was 2,439 megalitres. Of this amount, The beneficial reuse of our gypsum stockpile planned. During the year, we conducted 125 megalitres (5.1 per cent) was scheme at the Wellard Road site continues to a research programme to increase the water (see Figure 2 for Kwinana scheme progress. Manna Enterprises, which has a efficiency of the remediation and are now water use); 1,279 megalitres (52.4 per cent) long-term contract with us, has established a reviewing potential process changes with our was from the Water Corporation’s KWRP; blending operation at the site and has begun contractors. 290 megalitres (11.9 per cent) of reverse producing soil ameliorant material using the osmosis water was supplied from the Verve gypsum. Alcoa continued to take a significant Resource usage Energy Power Station in Kwinana and 745 consignment of gypsum from the stockpile Energy removing 5,497 tonnes during the year, as part megalitres (30.5 per cent) was extracted from Energy use during the year related primarily to of a total reuse of 9,000 tonnes for the year. groundwater at our Kwinana site. In addition, ammonia and sodium cyanide production and we supplied 1,106 megalitres of artesian water Land vehicle/equipment fuel. to Tiwest, our industrial neighbour, which reduces their use of scheme water. Flora and fauna Total energy consumption was 9,952,204 gigajoules, down 6.5 per cent on last year, We continued our involvement with the Feral Our total water consumption equated to mainly due to restricted gas supplies from Pigeon Control Group at Kwinana/Rockingham 1.76 kilolitres per tonne of total production. the north west of Western Australia, and an which seeks to control the numbers of these This figure is reduced from 1.96 kilolitres per unplanned shutdown of the ammonia plant. birds. We manage this issue on our Kwinana tonne quoted in the 2005-2006 report due site by deterring pigeons from roosting and Our total energy consumption per unit of to the increased use of water supplied by the breeding on the premises and by limiting production was 7.18 gigajoules, up eight per Kwinana Water Reclamation Plant. This water potential food sources. This is achieved cent on last year. has been used in our cooling towers for the full through regular inspections and removal of financial year. Energy sources are detailed below. feral pigeons. We commenced a programme Reuse and recycling to control the number of feral cats on site at Fuel Kwinana in late 2006. We relocated 13 snakes We continue to use treated wastewater from Petrol, diesel and LPG accounted for 0.24 at the Kwinana site during the year. the KWRP. Our wastewater is discharged per cent of our total energy consumption through SDOOL. Contamination by gigajoule. Our petrol, diesel and LPG consumption was 117 kilolitres, 501 kilolitres Our Bayswater site (formerly owned by We recycle and reuse production process and 33 kilolitres, respectively. Cresco) is contaminated from the products waters in operations within and between our plants. of past production of superphosphate. Electricity Soil excavations commenced in February Externally purchased electricity accounted for Discharges to surface and 2006 and to date about 136,000 tonnes of 0.79 per cent of our total energy consumption groundwater contaminated material have been transferred by gigajoule. Our electricity consumption to the Redhill Landfill Facility operated by Our Bunbury site captures run-off generated was 21,820,027 kilowatt hours. The closure the Eastern Metropolitan Regional Council, on-site for irrigation purposes. of the chlor alkali plant removed a significant and the Millar Road Waste Transfer Station, electricity user from our Kwinana site. At Albany our phosphorus discharges operated by the City of Rockingham. decreased during the year from 77.8 kilograms A groundwater treatment plant was Natural gas last year to 31.5 kilograms this year. Fluoride commissioned in October 2004, and has Natural gas accounted for 98.5 per cent of discharges decreased from 513 kilograms treated more than 34,000 kilolitres of water. our total energy consumption by gigajoule. to 225 kilograms and nitrogen discharges increased from 388 kilograms to 522 Workers compensation The contractors transporting our fertiliser 78 kilograms. This increase is related to higher There were 16 workers compensation claims between our distribution sites are subject rainfall therefore the nitrogen discharged is reported, relating to occurrences during to a contract that sets out appropriate more in line with what would be expected the year, compared with 31 last year requirements for such transport, in addition during an average rainfall year. We will (see Figure 5). to the essential legal requirements.

CSBP continue to focus our efforts on reducing In August 2006, a vessel containing cyanide nutrient output and will continue to implement Hazard and risk was incorrectly delivered to a container our Environmental Management action plan. Programmes depot in Bayswater. Also in August two containers were exported to Thailand At our Kwinana site: We have a number of methods for carrying the incorrect weight of cyanide. As a identification of hazards, assessment of • discharges of metals decreased from 230 result of these incidents, our processes and risks and ensuring adequate controls are in kilograms last year to 56 kilograms this procedures were reviewed and updated. place to contribute to our aim of zero harm to year (see Figure 3); Chem Alert continues to be utilised to manage personnel, plant and the general public. about 2,000 chemicals approved for use at • nitrogen discharges increased from 25,842 These include observation of hazards entered our sites and the Material Safety Data Sheet kilograms to 28,812 kilograms; into SiteSafe and their investigation, Hazard register is maintained as part of this system. • phosphorus discharges increased from and Operability Studies, job safety analysis, We hold all required licences and permits for 4,285 kilograms to 5,268 kilograms safety team meetings, team-based risk our operations. (the number reported last year was assessments, safety auditing and safety Risk assessment 3,899 kilograms and should have been observations. 4,285); and External audits of the safety reports for Emergency response our Major Hazard Facilities (MHF) occur • fluoride discharges decreased from 1,568 Throughout the year, a review of emergency approximately every 18 months. All kilograms to 1,265 kilograms. procedures and standard operating improvements required are tracked and procedures has been undertaken. finalised at regular reviews. The emergency response and incident The potential public risk from our MHF is management teams have continued to train on assessed by the use of Quantitative Risk a regular basis with 10 exercises conducted. Assessment (QRA). A revised, comprehensive site QRA for Kwinana was completed in A major multi-agency hazardous materials May 2007 and accompanied the ammonium exercise for ammonia transportation was nitrate safety report submission to DOCEP. Lost time undertaken in November 2006 in Southern The process of team-based risk assessments Our LTIFR was 2.2 (compared with 5.9 last Cross. continued throughout the year with year) see Figure 4, and during the year, there Other emergency responses included: assessments completed in a number of our were three LTIs compared to nine last year. • eight fire alarm activations at various large operations, including demolition and These statistics include contractor hours and locations, which were all minor incidents; construction work. injuries. • one off-site response to a chlorine drum Over the past year, we have recruited leak at Manjimup Aquatic Centre, resulting Our Average Time Lost Rate, which provides a process safety superintendent and in the chlorine drum being capped and a measure of the severity of such injuries, was process safety advisor, both with extensive returned to our Kwinana site for testing; 74.3 (compared with 30 last year). This is an MHF experience. All safety-related policy and increase on the number reported last year. documentation continues to be reviewed to Extra time was lost during this financial year • two first aid response calls, which resulted ensure alignment with changes to legislation. in minor treatment at the medical centre. which is attributed to an LTI which occurred Employee wellbeing in 2005/2006. The severity of one injury Materials handling and storage impacted significantly on this rate. Our average Our first aid centre at Kwinana is the central All raw materials and manufactured products lost time rate includes contractor hours and area for support services and programmes are safely stored and transported around injuries. aimed at improving employee wellbeing. our operations. We have detailed transport The centre runs special health-focused Safety statistics are distributed and discussed management plans for several of our programmes, such as counselling, health by senior management each month and are bulk chemicals and detailed training and awareness topics, fitness programmes reported to each Board meeting. procedures for all product transport. and assessments, audiometric testing, immunisations, subsidies for health club memberships, physiotherapy, health monitoring and health programmes looking Figure 2: Kwinana Scheme Water Use (kilolitres) at risk factors. 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 We also offer an annual medical check-up 649,836 366,274 276,196 106,843 160,656 101,143 161,873 183,759 125,207 to employees. During the year more than 60 per cent of staff had an annual medical. A general practitioner is available on site for Figure 3: Heavy Metal Discharges to Cockburn Sound and from all employees. October 2005 to Sepia Depression (kilograms/year) Employees who suffer work or non-work- 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 related injury or illness have access to a full 3,194 2,799 947 1,028 894 363 659 230 56 range of health support networks to ensure

Note 1: The fi gures shown are discharge totals. Component metals are arsenic, copper, manganese, molybdenum, zinc. they are provided with the most suitable Note 2: The number reported last year should have been 230 kilograms instead of 159 kilograms. return-to-work programme. Figure 4: Lost Time Injury Figure 5: Number of workers 79 Frequency Rate* compensation claims CSBP 6.7 3.0 3.9 5.9 2.2 22 19 19 31 16

Stakeholders Our stakeholders include our employees, our customers, our suppliers and other contractors, relevant government agencies, local communities in which we operate, and shareholders in our parent company, Wesfarmers Limited. We are committed to open communications with our many stakeholders and acknowledge the community’s interest in our operations. 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Our stakeholder liaison during the year 1 July 2002 – 30 June 2007 (as at 30 September 2007) included: *Contractor hours and LTIs included In last year’s report, we incorrectly stated that contractor hours and LTIs were not included, when in fact it reported total LTIFRs. The change in reported • participating in the Kwinana Industries fi gures for 2003 and 2004 relate to an escalation of injury classifi cation over the past year. Public Safety Liaison Group, which meets in a public forum involving community and regulatory stakeholders, to review public • participating at Board and Council levels of We conduct presentations for local safety issues; PACIA to assist in developing new policies government and stakeholder interest groups, • participating in the Communities and and approaches; particularly at Kwinana, as well as providing Industries Forum, a bi-monthly public updates on our operations and environmental meeting for local industries, councils and • participating in the Fertilizer Federation of improvement initiatives. communities; Australia to enable participation in relevant issues with other manufacturers, suppliers • supporting the Community Information Response to 2006 Stakeholder Survey Service, a telephone-based service that and distributors; The 2006 Stakeholder Survey reported that provides access to a range of information • participating in the Chamber of 65 per cent of participants believed last year’s about industry; Commerce and Industry WA to liaise with Social Responsibility Report was ‘good’ or • hosting a stakeholder forum, attended by other industries and participate in the ‘very good’ in terms of addressing stakeholder representatives of government agencies, development of new policies; concerns and adequately communicating community and industry organisations to • responding to requests for community these concerns. As we have done in previous discuss various aspects of our business. support or donations; and years, our section of the Wesfarmers 2006 Each year, detailed answers to issues • providing information about our operations Social Responsibility Report was printed as raised at the forum are provided to to local media and responding to media a separate publication and distributed to our participants; requests for information. stakeholders. • hosting 240 visitors as part of formal tour groups to our Kwinana site; As a member of the Kwinana Industries The most common sustainability opportunities • making available community information Council we have access to results from a identified by our stakeholders were bulletins for residents in Bayswater to general community attitude survey which water management, product and market fully inform the local community about provides an insight into the concerns and development, and community engagement the progress of remediation plans for the interests of the local community on an and involvement. We are currently working former Cresco fertiliser site; ongoing basis. towards developing a sustainability framework

We support both the junior and senior Country Week Cricket Carnival in Western Australia. Ricardow Truter plays for the Peel Junior Cricket Association. for our business which will consider In July 2007, we met with a representative from research into the safe use and disposal of 80 these three opportunities amongst other the Saharawi Journalists and Writers Union. sodium cyanide, a gold reagent used by the initiatives. As reported last year, we began investigating mining industry. technological changes to our manufacturing Feedback/Complaints We continue to support agricultural research process which may allow us in the longer term programmes including: The complaints we received this year were in CSBP to accept raw material from other sources relation to environmental issues as reported where the rock is currently not suitable. • the University of Western Australia’s Turf above. Laboratory scale testing has demonstrated Research Programme which investigates We have received positive feedback about the potential of this technology. Engineering irrigation and fertiliser management the educative nature of our tours from various studies are underway to determine the strategies for turf; and stakeholder groups. feasibility and costs of introducing this technology on a scale suitable for the • the University of Western Australia’s Albany Action groups manufacturing plant. Sustainability Fund research project assessing the role of perennial pasture We continued to liaise with interested parties Our wider social responsibility obligations to grazing systems in enhancing the utilisation regarding our importation of a significant our employees and the farming community of phosphorus and nitrogen. proportion of our phosphate rock from the which we supply will be considered as part of Western Sahara in northwest Africa. any decision. This year we contributed to the funding of The sovereignty of this region is in dispute and We liaised with various local interest groups nutrient research on dairy pastures in the the United Nations (UN) has been unable to throughout the year. In addition to attending south west in conjunction with the Department implement a decision to hold a referendum on the bi-monthly Communities and Industries of Agriculture and Food. the issue. Forums, we also participated in the Kwinana We invest approximately $500,000 each year Industry Public Safety Liaison Group. During As reported last year, we have obtained in our own agricultural research activities. the year, we gave presentations at the internal and external legal opinions and The underlying aim of this research is to consulted the Australian government, which Kwinana Industries Council Noise Reference enhance economic returns for the end user supports holding a referendum but does not Group, the 2007 PACIA National Conference, by maximising nutrient uptake and improving recognise any particular claim to the region. and several other forums. plant productivity and quality. We have also continued to monitor UN Communication developments regarding negotiations between We continued to engage Murdoch University the Polisario and Morocco. Newsletters and reports in researching the performance of our pilot We provide information to key stakeholders nutrient stripping wetland. This year, we have continued to liaise with about our business. Newsletters are produced the Australian representative of the Polisario Through these initiatives we strive to minimise for both our employees and external organisation. The Polisario opposes export audiences. the impact of our products on the environment of phosphate rock by Moroccan companies, and community. including the mine at Boucraa which supplies Website us and other companies. Our website www.csbp.com.au includes Scholarships In May, we met with representatives from information about our operations for the During the year, we provided funding for the Office Cherifien Des Phosphates, the community, including environmental, safety an Australian Nuffield farming scholarship. organisation that exports phosphate from the and health information relating to our business. We also supported engineering graduates Boucraa mine. Community support by providing funding for three end of year prizes for the Engineering Department at the We provided support to 85 organisations University of Western Australia, as well as the in 2006/2007, either through financial Best Design Project prize at Curtin University support or through the donation of goods. of Technology. Our sponsorship guidelines, used to assess requests, specify that support must be Awards directed towards the communities in which we operate. Our sodium cyanide business won the Premier’s Award for Excellence and the Large We entered into a three year partnership with Advanced Manufacturers Award at the WA Youth Focus, a not-for-profit organisation 2006 Industry and Export Awards. We were which assists young people at risk of suicide also awarded the Community Partnerships or self harm. Part of this partnership has Award at the 2006 WA Water Awards. enabled Youth Focus to operate a Kwinana- based counselling service for young people in the local area. We have also committed to a five-year partnership with the Royal Agricultural Society Hall of Fame, specifically through supporting the production of an electronic video which celebrates the inductees’ appointment to the Society’s Hall of Fame.

Managing Director Keith Gordon accepts the Research Community Partnership Award at the 2006 WA Water Awards from the Minister for Water As a member of the Australian Minerals Resources John Kobelke MLA. Industry Research Association we support CASE STUDY 81 CSBP

New ammonium nitrate facilities In late 2007 we will commission a major expansion of our ammonium nitrate production facilities, with new storage and distribution facilities, at Kwinana.

Work continued during the year on the construction of the new ammonium nitrate facilities, at Kwinana, Western Australia.

The project will expand our ammonium nitrate production to greenhouse gases. In addition, the plant is designed to

470,000 tonnes per annum and includes a new nitric acid/ incorporate the technology to reduce N2O emissions ammonium nitrate plant, a new prilling plant, replacement (an important greenhouse gas) when the technology is storage and new security features. commercially viable. The new prilling plant includes a scrubbing system which is designed to significantly reduce As a major growth project for our business, it also reflects the particulate emissions and all of the plants have been designed increased focus we have on sustainability throughout the life of to minimise noise significantly. We have already acquired a project. sufficient water resources from the KWRP to supply the While the plant will provide vital inputs to Western Australia’s new plant. mining and agricultural industries, and reduce imports to The project has also had a positive impact on our community, Australia, the success of the facility will also contribute to the with the construction process employing over 200 people for long-term sustainability of our business. In addition, there 18 months. Once the project is complete it is expected that are a number of environmental and social considerations approximately 20 new ongoing roles will be required. which have been incorporated in the project. The success of this project will impact on the success of From an environmental perspective, world standard energy our business. Ensuring we consider our employees, our efficient design will be utilised to maximise waste heat communities and our environment has been an important recovery from the nitric acid plant and the ammonium nitrate part of the project. plant, increasing power generation and hence reducing

PRIORITY PRIORITY Improve workplace safety, control risk and Attract and retain a skilled workforce. minimise injury. PRIORITY PRIORITY Supply quality products and services to our Reduce contaminant emissions to air, customers safely. water and land. 08 PRIORITY PRIORITIES FOR PRIORITY Increase our use of recycled and reclaimed Operate our manufacturing and storage facilities water supply sources. THE FUTURE to high standards of process safety. PRIORITY PRIORITY Positively contribute to and engage with the Effectively deal with our legacy wastes. communities in which we operate. AND WESFARMERS FEDERATION INSURANCE. NEW ZEALAND(LGNZ), OAMPS, CROMBIE LOCKWOOD OF LUMLEYGENERAL AUSTRALIA (LGA), LUMLEYGENERAL AUSTRALIA AND NEWZEALAND THROUGH THE OPERATIONS WE ARE A SIGNIFICANT GENERALINSURANCEBUSINESSIN Insurance OAMPS Senior Account Executive, Paul (left)discusses Stavrou insurance needs with Melbourne café owner NeilZumpo. insurance needswithMelbournecaféowner 07 07 PRIORITIES OUTCOMES 83

Reduce our Lost Time Injury Frequency Rate (LTIFR) Not achieved. The LTIFR was 2.7 compared with 3.0 for the prior period. LGNZ, OAMPS, Crombie Lockwood and by at least 50 per cent with a target of zero Lost Time Koukia achieved the target of zero LTIs however LGA and WFI reported four and three LTIs respectively. Injuries (LTIs).

Reduce our greenhouse gas footprint. Not achieved. Total emissions went from 5,645 tonnes to 5,679 tonnes. LGNZ and WFI reduced consumption by 118 and 260 tonnes respectively but this was offset by an increase of 413 tonnes at LGA.

Increase our community/social initiatives. Achieved. We increased the number of community initiatives and invested a total of $412,797 during the reporting year.

Review our safety management systems with a Achieved. New safety programmes were implemented across WFI and LGNZ including safety-tracking systems, view to better integration across the division. safety committees for all businesses and safety incentive schemes for all employees at WFI and senior managers at LGNZ and LGA.

Increase internal awareness of environmental issues Partially achieved. Each business now has environmental committees to develop initiatives to improve including possible impacts of climate change. awareness and employee participation in sustainability initiatives.

Develop and implement a divisional sustainability policy. Partially achieved. A sustainability policy was developed and partially implemented.

OAMPS in Australia and the United Kingdom and Crombie Lockwood, New Zealand’s second largest insurance broker, were acquired during the year, along with a number of smaller broking businesses in Australia, New Zealand and the United Kingdom. Data on OAMPS and Crombie Lockwood, apart from safety data, is not available for inclusion in this report but will be included in 2008. One aspect of Crombie Lockwood’s business is covered in the Case Study on page 89. We also have an interest in superannuation and fi nancial management through OAMPS and in software development through our majority-owned Koukia business. We are represented in 119 locations in Australia with 23 offi ces in New Zealand and four in the United Kingdom. We employ more than 3,000 people.

OVERVIEW The main challenges facing our business on on the environment and improve employee an ongoing basis are to improve awareness awareness of environmental issues. across our organisations of the importance They also aim to improve employee of sustainable business practices, the engagement in these initiatives. WFI began adoption of a broader view on how we can monthly meetings in February 2007 and positively influence the communities in which LGNZ started fortnightly meetings in June we operate and to make our workplace the 2007. LGA has formed committees and safest available for our employees. commenced meetings in July 2007.

In dealing with these challenges, the main We also sought to improve our contribution environmental area on which we focused to the communities in which we operate. our attention during the year was raising We support a range of community employee awareness of sustainability and charity initiatives including the issues that affect our business and Create Foundation and the provision of customers. To achieve this we introduced reconditioned equipment for those affected environmental committees comprised of by Cyclone Larry. Contributions were made employees from a cross section of each to farm safety, juvenile diabetes and a business. These committees consider, range of community support groups such develop and recommend ways in which as the Cancer Council, Rotary and Activ their business unit can reduce its impact Foundation. The three main safety areas on which we to increase employee awareness of Management systems 84 focused our attention during the year were a environmental issues as detailed later in Integrated Management System review of our safety management systems, the report. An integrated safety incident reporting system hazard management and improved safety One of the outcomes from last year’s that requires all safety incidents to be reported awareness though the introduction of an divisional leadership development programme to our Managing Director is in place in LGA, annual bonus incentive to improve employee was the creation of a sustainability policy. LGNZ and WFI. focus on safety issues. Two initiatives that have been implemented Our safety improvement project began in were the formation of environmental Safety Management System (SMS) Insurance May 2007. WSP Risk Solutions have been committees and the adoption of To support an improved and collaborative engaged to conduct a risk and hazard environmentally-friendly technologies. approach to occupational health and safety assessment and develop solutions for risk The WFI committee has met monthly since across the division, a safety improvement mitigation. This work is expected to be February 2007. An executive team member project began in May 2007. This project will completed by December 2007. chairs the meetings and reports regularly to review our safety management systems with a In LGNZ, hazard management has been the rest of the executive management team. view to better integration across the division. achieved by compiling hazard registers Initiatives developed by the committee include The initial stage of the project includes across the business and reporting on any paper recycling programmes, promotion of reviewing current safety management new hazards monthly with quarterly summary double-sided printing to reduce paper usage systems to identify best practices. Elements reports tabled at Health and Safety Committee and environmental reminders on email footers. of these various systems will then be adapted meetings. The summary reports include ways The LGNZ and LGA committees started and customised to improve our safety to eliminate, isolate or minimise the identified regular meetings in June and July 2007 and management system. hazard therefore proactively monitoring intend to follow a similar model to WFI. An external consultancy was engaged to potential hazards in the workplace. LGA also LGA promotes environmental awareness assist with the safety improvement project. maintain a hazard register. via the Lumley ‘Goes Green’ section of the It will provide expertise in conducting a At WFI, all employees are entitled to profit ‘Lumley Times’ staff newsletter and ideas are risk and hazard review for the division and share through an annual bonus incentive sourced and shared across the business. develop solutions and mitigate identified risks. The project is expected to be completed by payment. Overall personal performance LGNZ have created a senior role within its December 2007. comprises half of the incentive payment business for accountabilities that include and safety is one of four items included. enhancing the social responsibility programme LGNZ has Accident Compensation For LGNZ and LGA the bonus scheme for (including environmental) and community Corporation (ACC) Workplace Safety senior managers takes safety issues into impacts. Management Practices in place to Audit consideration. Regular awareness campaigns Standard (AS-NZ4801:2001). There are continue to be run by all businesses in various Health and safety three standards - primary, secondary and forms including poster campaigns, intranet Fifty-seven employees have been trained in tertiary. Although only required to achieve a resources and newsletters. first aid. Additional training and educational primary level of compliance, accreditation is material is provided to enhance safe work maintained at secondary level. practices at selected sites. Policy Emergency We have addressed workplace injuries through All our major sites have documented LGA’s compulsory workplace ergonomics emergency plans in place. training, well-documented OHS policies and an OHS committee. Our WFI business has Training Compliance written OHS policies and our LGNZ business We have continued to develop and has formal OHS procedures in place. Environmental implement employee safety training within our businesses. We are not aware of any potential non- compliance with environmental legislation We continued the WFI driver training or other environmental requirements during programme reported last year with nine drivers the year. participating. Our LGA and LGNZ employees also participated in similar programmes with National Pollutant Inventory (NPI) 18 employees completing the training. Air (atmospheric emissions) We did not use any of the substances listed New LGA and WFI employees undergo under the NPI during the year and therefore we Greenhouse gas emissions induction training which includes Insurance are not required to report under the NPI. Our total greenhouse gas emissions were Code of Conduct compliance training and estimated to be 5,679 tonnes of carbon Health and safety an occupational safety and health module dioxide equivalent, up 0.6 per cent on last covering topics such as ergonomics, stress We are not aware of any potential non- year, and this equates to 0.0048 tonnes and manual handling. WFI employees are compliance during the year with health and of carbon dioxide equivalent per hundred assessed at the conclusion of the training. safety legislation or other health and safety thousand dollars of sales. Carbon dioxide requirements. At LGNZ all new employees receive personal emissions are down 13.16 per cent on last safety training upon induction. Licensing and approvals year when adjusted for increased sales. Environmental We are not aware of any potential non- The greenhouse gas emissions were largely Although we have no formal environmental compliance with licensing or approval due to electricity consumption for air- training programmes in place, we have a conditions or other requirements during conditioning and lighting (64 per cent) and number of initiatives within our business the year. motor vehicle travel (36 per cent). Waste Land Energy sources are detailed below. 85 Insurance operations are exclusively office- Solid waste Fuel based in built up areas. Impact on flora, fauna Insurance Given the nature of our business operations and land is minimal. Petrol, diesel and LPG accounted for we do not measure solid waste generation. 64.6 per cent of our total energy Liquid waste Contamination consumption by gigajoule. Our petrol, diesel and LPG consumption was 0.0683 The only liquid waste which we are aware of is We are not aware of any contamination issues, megalitres, 0.016 megalitres and 0.159 vehicle lubricants replaced when our vehicles except as reported last year for some ground megalitres, respectively. are serviced by external service providers. water contamination at our Perth head office Amounts are not measured. site at Bassendean which is leased from Electricity Wesfarmers Limited. Recycling Initiatives Electricity accounted for 35 per cent Across all businesses we have a range of Resource usage of our total energy consumption by recycling practices in place which includes gigajoule. Our electricity consumption Energy recycling paper and toner cartridges in most was 4.3 megawatt hours. offices and wherever possible redundant Energy use during the year related primarily computer equipment is reconditioned and to electricity for use in our offices and motor Natural gas redeployed to community groups. We also use vehicle fuel. Natural gas consumption for the division double-sided printing and copying as default is not recorded given the minimal usage. Total energy consumption was estimated to be settings where possible and minimise the use of internal building lighting and air-conditioning 43,504 gigajoules, up five per cent on last year. Energy Efficiency Opportunities outside business hours. Our total energy consumption per hundred Through our parent company Wesfarmers LGA implemented the Lumley ’Goes thousand dollars of sales was estimated to Limited, we are a participant in the Green’ project which encouraged recycling be 0.04 gigajoules, down nine per cent on Commonwealth Government’s Energy awareness via the regular staff newsletter. last year. Efficiency Opportunities programme.

Wesfarmers Federation Insurance (WFI) employees at our Bassendean offi ce donned outlandish hats for Hat Frenzy Friday. WFI is the major sponsor of the event, held to raise money for the Western Australian Activ Foundation which provides support for people with disabilities. the community at large to encourage safer 86 Figure 1: Lost Time Injury Figure 2: Number of workers conduct on the roads. Hazard reduction Frequency Rate* compensation claims programmes are a regular feature of our 1.6 2.3 1.8 3.0 2.7 1 15 9 12 12 business. Lumley is a significant fleet insurer and Lumley New Zealand have in place risk reduction programmes including: vehicle fleet inspections; safety and stress awareness campaigns; safety benchmark Insurance and performance programmes and driver education and training.

In addition, Lumley proactively manages fleet safety. One example of this is a programme called DriveCam. DriveCam’s unique approach 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 consists of a palm-sized event recorder 1 July 2002 – 30 June 2007 (as at 30 September 2007) mounted behind the rear-view mirror of *Contractor hours and LTIs not included vehicles being monitored. Risky behaviours such as tailgating, distracted driving, hard braking and swerving cause the recorder Water The LTIFR for WFI was 4.4 (compared with to save audio and video of the moments 1.4 last year), for LGA it was 7.5 (compared Consumption immediately before and after the incident. with 4.3 last year) and for LGNZ it was zero Events are downloaded upon return to the Apart from our WFI head office at (compared with 2.7 last year). OAMPS and depot, reviewed by DriveCam specialists Bassendean, which uses bore water for the Crombie Lockwood also recorded zero LTIs and assigned a risk score. The footage of grounds, water use during the year related for the period. The major contributing factors the incident and accompanying analysis aids primarily to building ablution facilities. Because to this increase were transit, slipping and fleet supervisors in providing feedback and the majority of our sites are shared tenancies sport injuries. this is not measured. appropriate coaching to drivers. Safety statistics are distributed and discussed by management each month and reported to The technology is not meant to be punitive, our Boards every two months. but rather as a way to help drivers identify risky behaviours they may not realise they exhibit. Workers compensation The DriveCam solution enables fleet managers There were 12 workers compensation claims to analyse near misses and provide coaching reported, relating to occurrences during the and customised training to help prevent these Lost time year, the same as last year (see Figure 2). Our incidents from recurring. The device improves workforce has increased by around 1,500 driver behaviour and also allows analysis of Our LTIFR was 2.7 (compared with 3.0 last with the acquisition of OAMPS and Crombie year) see Figure 1 and, during the year, there ‘near miss’ events. Lockwood in November 2006 and February were 10 LTIs. Our Average Time Lost Rate, 2007 respectively. Emergency response which provides a measure of the severity of LGNZ has a crisis management plan that has such injuries, was 12.0 (compared with Hazard and risk 13.4 last year). These statistics do not include been developed to provide a coordinated contractor hours and injuries. One repetitive Programmes management response to any actual or strain injury accounted for 56 percent of As a major risk insurer it is in our own potential adverse event. Emergency evacuation this figure. commercial interest and in the interest of plans are in place across the organisation.

DriveCam in action.The recorder sits behind the rear vision mirror and logs driver behaviour. Innisfail State High School Principal Julie Pozzoli and WFI Ingham Branch Area Manager Craig Bowen with students working on their new donated computers.

87 Insurance

Risk assessment various locations. WFI and LGA provide health and safety. When asked to rate the All our businesses now have Occupational funding for gym membership with division on individual elements of sustainability, Health and Safety committees reporting repayment via payroll deduction and LGNZ economic and social areas were rated very regularly to management. subsidise gym membership at head office. good and good respectively. Environmental and integrated sustainability were rated as Employee wellbeing average. Overall presentation of the report was There are a range of employee wellbeing generally regarded as effective. initiatives in place across our businesses. Most have been adapted to the individual Feedback/Complaints needs of the particular business. Following the introduction of the Financial Examples include: Services Reform Act in 2001, the general Stakeholders insurance industry developed a Code of • voluntary influenza vaccinations at selected Our stakeholders include our employees, Practice to accommodate new legislation and sites in all businesses; our customers, our reinsurers, relevant higher customer expectations. Our LGA and government agencies such as the Australian • Well at Work monthly newsletters WFI businesses are bound by the General Prudential Regulatory Authority (APRA) distributed to WFI employees promoting Insurance Code of Practice and all staff have and the Australian Securities & Investments healthy work practices and general received compliance training. The code Commission, the local communities in which wellbeing tips; identifies minimum standards applicable when: we operate and shareholders in our parent • the LGA and LGNZ employee assistance company, Wesfarmers Limited. • selling insurance; programme that provides counselling • managing claims; services for employees and their immediate Response to 2006 Stakeholder Survey • responding to catastrophes and disasters; family members on a range of social issues; The 2006 Stakeholder Survey canvassed • educating customers; and seven key internal and external stakeholders. • free supply of fruit at selected locations • resolving complaints and disputes raised The survey revealed the top sustainability across all businesses to encourage healthy by policyholders. issues for the insurance industry as being eating; and climate change, remaining competitive (in a This code complements the regulatory system • staff discounts on gym memberships at less predicable environment) and occupational governing Australia’s financial services sector. We have an internal dispute resolution process Website Juvenile Diabetes (LGA matched $17,847 88 in place which is available to policyholders Our websites include information about our raised by staff), Royal Agricultural Society who have a complaint or dispute against us. operations for the community: of WA, Tasmanian Farmers & Graziers This is a free service and is available nationally Association, Plumbing Industry Association, with all matters treated in confidence. Where www.wfi.com.au Australian Sports Foundation, Farmsafe, www.lumley.com.au matters cannot be resolved to a policyholder’s Meat & Livestock Australia, Master Plumbers www.lumley.co.nz satisfaction, we advise complainants of Association, Activ Foundation, Cancer www.oamps.com.au their rights to take the matter up with the Council, and New Zealand Neighbourhood www.oamps.co.uk Insurance Insurance Ombudsman Service (IOS). The Support Trust. LGNZ also supported the www.crombielockwood.co.nz IOS is a national scheme which assists in Starship Children’s Hospital and Auckland www.koukia.com.au resolving disputes between policyholders City Mission. and their insurers. The scheme also assists in Liaison groups Scholarships resolving disputes between uninsured drivers Our businesses remain involved with industry and another person’s insurance company in LGNZ continues to support the Rotary youth groups. LGA and WFI contribute to the relation to motor vehicle property damage leadership award which provides leadership Insurance Council of Australia. LGA CEO (i.e. third party claims) and provides general training for young leaders of the future. David Matcham is a member of the National information about any general insurance Board of the Insurance Council of Australia and Awards matters. If the decision of the IOS is acceptable the LGNZ CEO, Rieny Marck, is the president to the complainant then the decision is binding LGNZ, in conjunction with business partner of the Insurance Council of New Zealand. on us for amounts up to pre-imposed limits. Westpac, won the Australia and New In Australia, 211 complaints were dealt with Community support Zealand Insurance Industry Award for Technological Innovation of the Year 2006 internally, 128 related to WFI and 80 related to All of our businesses support a wide range for their unique online delivery platform for LGA. Of these complaints, 10 were referred of community initiatives ranging from Westpac customers. This year Bob Buckley, to the IOS. Two related to WFI and eight were significant sponsorships to local involvement in our retiring Managing Director, won the related to LGA. community activities. Key initiatives included: Insurance Leader of the Year category and Our LGNZ business is a member of the • WFI and LGA joined forces to assist Crombie Lockwood was one of three finalists Insurance Council of New Zealand and communities rebuild after the devastation in the Insurance Broker of the year category. must comply with the Fair Insurance Code. from Cyclone Larry. In addition to the The broker software platform used by LGA, This code outlines the steps to resolve efforts applied to fundraising as reported “Lumley online” also won the 2007 award for complaints and disputes raised last year, a coordinated effort was launched technological innovation. by policyholders. to supply schools in affected areas with Complaints in New Zealand can be made computer equipment. The programme directly to one of our offices where appropriate involved refurbishing equipment that had follow up action is initiated. Where matters been decommissioned from business use cannot be resolved to the complainant’s and converting it for use in an education satisfaction, the matter can be escalated environment. WFI and Lumley offices from to the Insurance and Savings Ombudsman across Australia provided the equipment, (ISO). During the year, three complaints were staff donated their time to rebuild and referred to the ISO of which two were ruled package the units for transport and local in the complainant’s favour and one remains branches organised distribution to schools unresolved. in the most need. Overall 100 computers were distributed to schools in North Liaison with authorities Queensland and one school has applied Our Australian businesses liaise with APRA to the education department to have their on matters relating to prudential standards. computer room named after WFI; and In New Zealand, Rieny Marck, LGNZ’s Chief • LGA is a supporter of the Create Executive Officer, is a board member the Foundation, a national organisation Insurance and Savings Ombudsman. providing opportunities for children and young people in care who are unable to Communication live with their birth parents due to abuse Newsletters and reports and/or neglect. LGA’s support contributes to improving the lives of children in Regular newsletters are provided to staff in care through innovation, education and print and electronic forms covering business, development. social and workplace issues within each of the businesses. LGA has introduced Lumley In addition, the following organisations ‘Goes Green’, a quarterly communication each received more than $5,000 support initiative that promotes and encourages during the period - Agforce Queensland, environmentally friendly practices among staff. Kondinin Group for a farm safety programme, CASE STUDY 89 Insurance

Being proactive on safety In February 2007 we acquired Crombie Lockwood (CL), New Zealand’s second largest insurance broker. As a signifi cant player in liability insurance the management at CL noticed that a large number of clients were suffering losses through accidents and mishaps that could have been avoided.

To help these clients CL developed a unique and proactive safety management and monitoring system called Safety Assist. This study describes the immediate benefits of the programme for a particular client and, on a broader view, how we can positively influence the communities in which Safety Assist has helped to reduce accidents in the we operate. New Zealand roofi ng industry. The case in point involved a roofing contract business in New Zealand that experienced a serious harm injury after an employee fell 8.2 metres through a brittle section of asbestos a result, safety training can suffer, resulting in the risk of cement roofing. Following the accident the business entered higher injury rates compounding the skill shortage. into the Safety Assist programme to ensure that they were Programmes such as Safety Assist not only enhance the taking all possible steps to protect the health, safety and profitability of our business but serve a wider community need wellbeing of their employees. to improve workplace safety. The business was able to get immediate guidance and support In the particular case reported here, introducing Safety regarding the steps needed to be taken as a result of the Assist has increased client confidence contributing to repeat incident. This included reporting to the relevant governmental contracts and contract pre-qualifications. New business has authority and the procedures involved in the investigation also been won on the basis of the safety systems introduced and the appointment of and liaison with legal representatives into the business. through the statutory liability underwriter. Most importantly, Any increase in the premiums as a result of their previous they began a safety implementation programme minimising the serious harm incident was kept to a minimum because the chance of future accidents. business was able to demonstrate detailed safety information The construction industry currently faces significant and processes to their insurance broker. recruitment, skill and training challenges. Such shortages of Safety Assist now has 600 customers with programs covering experienced, skilled workers can create time pressures and, as 8,000 employees in New Zealand.

PRIORITY PRIORITY Develop an energy effi ciency policy for the Increase internal awareness of environmental issues division and investigate the feasibility for moving including possible impacts of climate change. to a carbon neutral position. PRIORITY PRIORITY Continue to improve and develop the divisional Promote sustainable business practices to sustainability policy. 08 our business partners and customers. PRIORITIES FOR PRIORITY PRIORITY Reduce our Lost Time Injury Frequency Rate THE FUTURE Develop a sponsorship policy that maximises by at least 50 per cent with a target of zero returns to the community from our contributions. Lost Time Injuries. 90

OTHER BUSINESSES

This section covers operations of smaller business units either wholly or partly owned by Wesfarmers.

Management systems Woodman Point in Western Australia which we ENERGY GENERATION (enGen) We have a Management Plan (Health, operate on behalf of the Water Corporation. Safety and Environment) that defines our National Pollutant Inventory (NPI) We are an independent power policies and systems and the framework for producer specialising in the design, their implementation. The plan describes We have not yet prepared our report to the construction, operation and actions required, frequencies, durations, National Pollutant Inventory (NPI) for the maintenance of power stations for responsibilities and accountabilities. 2006/2007 reporting period or finalised our the mining industry and townships in data estimates, however in 2006/2007 our Environmental most significant emission was carbon dioxide. remote areas that are not serviced We minimise dust exposure at power stations Further information is available at: by a major distribution grid. that we own and operate (Sunrise Dam, www.npi.gov.au. All our substance Our existing power stations are diesel and Hill 50/60, Wodgina, Leonora, Coober Pedy, emissions for last year were ranked as “low” gas-fuelled. New endeavours include the Cue, Meekatharra, Mt Magnet, Sandstone, by the NPI. In relation to the power stations we operate but do not own, data is provided to conversion of diesel-fuelled power stations Wiluna, Yalgoo, Gascoyne Junction, Laverton, our clients for inclusion in their NPI reporting. to Liquefied Natural Gas (LNG)-fuelled power Menzies and Warmun) by the use of blue metal and at Canning Vale by concreting areas or stations. We are also investigating the use of Resource usage planting lawns. renewable generation at a number of sites. Our total energy consumption during the year Our head office is in Canning Vale, Western Greenhouse gas emissions was estimated to be 4,127,441 gigajoules, Australia and we employ about 70 people. We signed a Cooperative Agreement to down about seven per cent on last year. participate in the Commonwealth Greenhouse Of this amount, approximately 2,366,348 Overview Challenge Plus Programme. We will conduct gigajoules or 57 per cent can be allocated to We implemented First Priority Enterprise (FPe) an energy efficiency audit during the the stations we built, own and operate. as part of the Wesfarmers Energy Health, 2007/2008 financial year. Findings of this audit Safety and health Safety and Environment (HSE) project in will be used to identify and establish actions to November 2006. FPe is an electronic HSE manage greenhouse emissions. Our LTIFR was again zero. Our Average Time Lost Rate, which provides a measure of the management system that has enabled us to Our total greenhouse gas emissions were severity of such injuries, was again zero. These improve our ability to schedule and assign estimated to be 286,098 tonnes of carbon statistics include contractor hours and injuries. HSE activities and actions. dioxide equivalent, down seven per cent on last year. Of this amount 167,828 tonnes During the year there were 36 incidents Health and safety remains a company priority relates to stations which we built, own and reported, (the same as last year), of which and we continue to maintain a Lost Time Injury operate and 117,771 tonnes is attributable to six were injuries requiring first aid, three were (LTI) free record. those stations which we operate and maintain injuries requiring medical treatment and on behalf of a customer. The decrease is due 27 were non-injury incidents. Fitness for work awareness sessions were to a combination of campaign mining and There was one workers compensation claim conducted in February 2007. Cyclone George damage at Wodgina. In the reported, relating to occurrences during the case of Sunrise Dam, which is a combination year, compared with two last year. Material Business management of the two categories (we own some of the Safety Data Sheets (MSDS) are accessible Emergency generating assets and the customer owns through the ChemAlert system we use for some of the generating assets which we Both our Emergency Management Plan (EMP) hazardous substances held on site. Bunded operate and maintain), we have apportioned storage areas are provided where required. and Crisis Management Plan (CMP) were emissions based on the electricity generated reviewed in 2007. An emergency evacuation by the relevant assets. We have not included We use Job Safety Analysis and Work drill was held in April 2007 to test the EMP emissions from waste disposed off-site as Instructions for tasks to identify risks and and an independent crisis management we do not measure these volumes nor have assess their impact on employees, the public, practitioner ran a crisis exercise in July 2007. we included the bio-fuel power station at plant and equipment. CASE STUDY 91 Other Businesses

New power station for remote Two members of the Warmun community (left) with the Member for Central Kimberley-Pilbara and the Managing Western Australian Aboriginal Director of Horizon Power marking the opening of the power station with a commemorative plaque set into a specifi cally- community. chosen rock. Photograph courtesy of the Offi ce of Energy.

Delivery of essential services to indigenous communities in There are many benefits to the communities from the Western Australia has been a point of contention between new power stations, including less noise and air pollutants indigenous communities and the state and Commonwealth and the new stations are significantly more reliable than the governments for a number of years. existing ones.

The Aboriginal and Remote Communities Power Supply Community residents will be able to obtain electricity at Project (ARCPSP) was a joint initiative of the Australian and the state uniform tariff and those eligible will receive extra Western Australian Governments to address the lack of reliable subsidies. The project also creates the opportunity for power supply in remote Aboriginal communities. The project increased local employment in the communities and was set up to initially provide new power stations and uniform increased spending in the communities during construction. state electricity tariffs at five aboriginal communities, with the The first of the five power stations, at the Turkey Creek possibility of later extending this to other communities. community of Warmun, commenced operation in February Horizon Power called for tenders for parties to build, own and 2007 and enGen is on track to complete the remaining four operate power stations at these five locations, and enGen was stations in the second half of the 2007 calendar year. announced as the preferred tenderer and signed the formal The official opening of the Warmun power station occurred power supply agreement in October 2006. in late April 2007. The Warmun community carried out a There was extensive consultation with the communities corroboree and smoking ceremony to celebrate the opening throughout the development of the project and enGen, and we later shared a barbecue with the community residents. Horizon Power and both governments were focused on The traditional owners of the land at Warmun (the Kitja ensuring that the communities were supportive of the people) selected a suitable rock for us to attach a plaque to project. Native title holders and traditional owners granted commemorate the official opening. heritage clearance over all sites for the new power stations enGen is proud to have successfully constructed and and aboriginal service provider, Mamabulanjin Aboriginal commissioned the Warmun power station and is looking Corporation, provides first level operations and maintenance forward to the successful construction and commissioning support at the power stations. of the remaining stations. We reviewed our Yennora Emergency Plan Business management 92 and in April we conducted an emergency COREGAS Environmental evacuation exercise at the site. We are a wholly-owned subsidiary Our Environmental Policy is displayed of Wesfarmers Energy and are The Yennora site is licensed for EPA Chemical prominently in relevant places throughout the a major national producer and Storage and Chemical Handling. All seven of company, included in all induction material distributor of industrial, medical our sites are Dangerous Goods-licensed. and available on our Industrial Management and scientific gases. Acquired in System (IMS). Website: www.coregas.com. February 2007, we have operations To maintain and improve on a good safety in most Australian states. We employ record we conducted 26 health and safety about 180 employees. AIR LIQUIDE WA meetings during the year with a focus on safety awareness and assessing/controlling Other Businesses Overview We are a major manufacturer any hazard. We also conducted 34 internal The main challenge facing our business on and distributor of a broad range of safety observations focusing on compliance an ongoing basis is the safe operation of our industrial, medical, scientific and and observed hazards. facilities in a way that minimises any adverse environmental gases including All employees undergo training in hazards impact on the environment. oxygen, nitrogen, argon, acetylene associated with the gases and equipment The two main safety areas on which we and carbon dioxide and a provider they are required to handle. Senior workplace focused our attention during the year were of home healthcare services. first aid training continued to be provided as maintaining accreditation to ISO 9001 appropriate. A simulated emergency exercise Quality Management System and delivering We are 40-per cent owned by Wesfarmers was conducted at Henderson in June 2007 to safety training. Limited with the remaining shares held by Air Liquide Australia Limited, a wholly- test our Emergency Management Plan. The Safety Training is presented to the workforce. exercise, a simulated acetylene explosion, owned subsidiary of Air Liquide of France. Topics include manual handling, dangerous incorporated many issues such as fatalities, Wesfarmers Energy has management goods, hazardous substance, transport of medical treatment, plant damage, supply responsibility for the company. The head office dangerous goods and safe handling of interruption and reputation issues. A de-brief gas cylinders. is located in Murdoch, Western Australia. was completed immediately afterwards with all We have three operational sites at Kwinana Our Quality Management System is certified stakeholders so that lessons learnt could be and compliant with AS/NZS 9001. Triennial and one at Henderson, all south of Fremantle. applied into the Emergency Management Plan audits were held at our Brisbane, Newcastle, Our healthcare division is located in Nedlands, as appropriate. Yennora (western Sydney) and Melbourne Perth, and we have branches in Kalgoorlie, sites during the year. No non-conformances Karratha and Darwin. Through a network of Compliance were identified. 73 agents we operate throughout Western We are not aware of any potential non- We have a Safety, Environment and Quality Australia and the Northern Territory. As at June compliance during the year with environmental Policy which is displayed on our noticeboards 2007 we employed 85 people. legislation or other environmental at our operating sites. requirements. Overview National Pollutant Inventory (NPI) Business management Our main ongoing environmental challenge Environmental is the management of lime waste at the Data for the 2005/2006 reporting period was submitted to the National Pollutant Inventory We have a Refrigerant Trading Authorisation Henderson site, this being a by-product from in July 2006. Detailed information is available which is administered by the Australian our acetylene production facility. The waste at: www.npi.gov.au. Our substance Refrigeration Council Ltd. It provides is regularly removed by a contractor for use emissions for the 2005/2006 year were authorisation to buy, sell, store and handle as raw material in a manufacturing process. ranked by the NPI as ‘low’. refrigerant gases. Special care is taken to ensure there is no We have a Controlled Substances Licence, discharge to land. Noise administered through the Federal Department On safety, we focused our attention during the The Air Separation Unit at Mason Road of Environment and Heritage. It provides year on updating our Emergency Management Kwinana operates on a 24 hours per day authorisation for the import and sale of ozone Plan. This included in-depth training for continuous basis. A noise survey conducted depleting and/or synthetic greenhouse gases. appropriate personnel and a simulated by a third party was completed in March emergency exercise at our Henderson plant. 2007 for the purpose of providing a noise Safety and health assessment in compliance to occupational The Fire and Emergency Services Authority Our LTIFR was 8.2 and since owned by health and safety regulations. We did not participated. Wesfarmers there has been one LTI. Safety receive any noise complaints during the year. statistics are distributed and discussed by The Henderson site incorporates an acetylene management at the Management Team manufacturing plant, industrial and medical Greenhouse gas emissions meetings held quarterly. gas refilling and a distribution operation. We do not directly produce greenhouse There were nine workers compensation claims gas emissions. Our indirect emissions from reported since 1 March 2007. We also conducted a noise exposure imported electricity were estimated at 79,902 assessment at our Henderson plant and at the We focused on auditing and safety training. tonnes of carbon dioxide equivalent, down Mason Road Air Separation Unit at Kwinana. In the year we held 22 training sessions and one per cent on last year’s actual figure of 80,933 tonnes of carbon dioxide equivalent. conducted 19 audits. As part of our licence to operate we reviewed During the year we had one significant on-road and updated the Henderson Major Hazard Our carbon dioxide recovery plant at Kwinana accident. Facility Safety Case. recovers carbon dioxide gas from the adjacent CSBP ammonia plant, removes impurities Hazard and risk 93 (oxygen, nitrogen, H2O), and liquefies the We maintained accreditation from the product for sale throughout Western Australia Department of Consumer and Employment Other Businesses and the Northern Territory or sells by pipeline Protection – Dangerous Goods Safety Branch to Kwinana-based industries. Resources Safety Division, for the purposes We re-sell ozone-depleting substances of assessing and endorsing applications (refrigerant gases) to approved industry for the storage of specified classes of users under its Trading Authorisation dangerous goods. Certificate issued by the Department of Website Environment and Heritage. For further information on our operations Water is available from our website Water use during the year related primarily www.airliquidewa.com.au. to usage at our air separation plant to keep the plant and compressors cool during the gas liquefaction process. Water is also used QUEENSLAND NITRATES during the Henderson acetylene cylinder filling Through CSBP, Wesfarmers is a joint process where water is used with calcium venture partner with Dyno Nobel carbide for the production of acetylene and Asia Pacific in the Queensland mist sprayed over the cylinders while they Nitrates fully integrated ammonium are being filled to dissipate heat build up nitrate plant at Moura in Central during refilling. Queensland. It produces ammonium Total water consumption was estimated at nitrate for the coal mining industry. 121 megalitres, up 16 per cent on last year. Further information is available at www.csbp. com.au. Waste Our total solid general waste stream during the year was estimated to be 91,626 kilograms, BENGALLA up eight per cent on last year. Of this amount, we estimated that 100 per cent was recycled. Wesfarmers has a 40 per cent interest in the Bengalla open cut Our total liquid general waste during the year coal mine in the Hunter Valley was estimated at 4,040 tonnes, up 28 per cent of New South Wales. The mine is on last year. Of this amount, we estimate that managed by Coal and Allied, a 100 per cent was recycled. Rio Tinto group company, and produces steaming coal for Resource usage domestic and export markets. The main use of energy relates to the Further information is available at liquefaction process of gas separation at www.coalandallied.com.au. our Mason Road Kwinana ASU site, carbon dioxide recovery at the CSBP site and cylinder filling at our Henderson facility. WESPINE Total energy consumption was estimated Wesfarmers and Fletcher Building at 307,696 gigajoules, up five per cent on Limited jointly own the Wespine last year. plantation pine sawmill at Safety and health Dardanup, near Bunbury, in Western Australia. Wespine has a long-term Our Lost Time Injury Frequency Rate (LTIFR) contract with the government of of zero compared with 10 last year and during Western Australia for the supply of year there were no LTI’s. pine logs and produces sawn timber We recorded 10 near misses for the year. for housing construction, furniture We have encouraged the reporting of these manufacture and other uses. near misses over the last year, as they are an Further information is available at indicator to a source that could potentially www.wespine.com.au. lead to a lost time incident. All near misses are thoroughly investigated with appropriate actions and measures implemented. Safety statistics are distributed and discussed by management each month.

There were eight workers compensation claims reported, related mainly to manual handling injuries, during the year, compared with six last year. 94

INDEPENDENT ASSURANCE STATEMENT

To the Board of Directors, Executive and year) to ascertain their views on, and responses economic performance. Each of the wholly-owned Stakeholders of Wesfarmers Limited: to, the material sustainability issues faced by these business units were visited or interviewed by members business units, and the communication of these of the assurance team. These were Bunnings, Curragh, Wesfarmers Limited (Wesfarmers) commissioned Net issues. A total of 12 interviews were conducted. Premier Coal, Kleenheat Gas, Wesfarmers LPG, CSBP, Balance Management Group Pty Ltd (Net Balance) to Industrial and Safety, Insurance and Energy Generation. provide independent assurance of this Sustainability • Interviewing selected external stakeholders The Corporate office was also visited and data was Report 2007 (the ‘report’), the organisation’s tenth such to ascertain their perception of the material examined from the 40 per cent-owned Air Liquide report. The report presents Wesfarmers’ sustainability sustainability issues faced by Wesfarmers WA. Our observation of stakeholder engagement performance over the period 1st July 2006 to 30th June Premier Coal and Bunnings Business Units, and activities was based on reviewing external stakeholder the appropriateness of Wesfarmers’ response 2007. Wesfarmers was responsible for the preparation engagement processes and outcomes, and the to these issues in terms of their performance as of the report and this statement represents the 27 interviews with internal and external stakeholders, well as external reporting. A total of 15 interviews assurance provider’s independent opinion. as well as from the more comprehensive stakeholder were conducted with government, industry peers, Net Balance’s responsibility in performing our assurance engagement program undertaken last year. activities is to the Board and Executive of Wesfarmers suppliers, non-government and government alone and in accordance with the terms of reference organisations, clients, partners and industry Our Independence agreed with them. Any reliance a third-party may place associations. Net Balance was not responsible for preparation of any on the report is entirely at that party’s own risk. • A review of the key sustainability strategies, policies, part of this report. Net Balance has not undertaken any objectives, management systems, measurement Assurance Objectives commissions for Wesfarmers in the reporting period and reporting procedures, background documentation concerning reporting or data collection. However, and data collection and reporting procedures for The objective of the assurance process is to provide Net Balance has assisted the Bunnings business unit Wesfarmers and each of its business units. stakeholders of Wesfarmers with an independent on a technical project concerning energy efficiency opinion on the materiality, completeness and accuracy • A review of the report for any significant anomalies, and carbon. Our team’s independence was ensured of the information presented in the report, and whether particularly in relation to significant claims as well by selecting an assurance team that had no other Wesfarmers has responded to stakeholder concerns as trends in data. involvement with Wesfarmers during the reporting and adequately communicated those responses within period that could impair the team’s independence • An overview of the embeddedness of the key the report. This is confirmed through a verification or objectivity. process of the claims made, underlying systems, economic, environmental and social policies for processes and competencies that support the report, Wesfarmers and each of its business units. Our Capacity as well as the embeddedness of policies and strategies • A series of interviews with key personnel The assurance team comprised of individuals with on sustainability. Ensuring continuous improvement in responsible for collating and writing various parts expertise in sustainability and in environmental and data management systems and associated reporting of the report in order to substantiate the veracity of social performance measurement and reporting in processes is also a complementary objective. selected claims. various industry sectors including the manufacturing, Wesfarmers moved from a data verification process to • The examination of the aggregation and/or energy, finance and chemical sectors. The assurance a broader level of assurance last year using the AA1000 derivation of, and underlying evidence for, over team has collectively undertaken over 60 assurance Assurance Standard and has continued this in 2007. 200 selected data points and statements made in engagements in Australia over the past 10 years and is The scope of this assurance process is described below. the report. The verified items were broadly selected also led by a Lead Sustainability Assurance Practitioner to not only satisfy the principles of materiality, (Lead CSAP) accredited by the IRCA UK. The team is Assurance Process completeness and responsiveness, but also as also a global leader in the use of the AA1000 Assurance Standard in assurance provision. Our approach to assurance provision is undertaken supporting evidence for conclusions reached. using the AA1000 Assurance Standard, to which • A review of selected external media sources relating Our Opinion the lead assurance provider is accredited by the to the sustainability performance of Wesfarmers International Register of Certified Auditors UK (IRCA and each of its business units, so as to further Based on the scope of the assurance process, the UK). The assurance engagement was undertaken substantiate reported claims and, more importantly, following represents the assurance provider’s opinion: between May and September 2007. The process to ensure that no significant omissions were made • The findings of the assurance engagement provide involved the following activities: in the report. confidence in the information reported within • Interviewing management and internal stakeholders the report. The level of data accuracy was found Assurance Limitations of Wesfarmers Premier Coal and Bunnings Business to be within acceptable limits, but additional Units as part of a four-year plan to cover stakeholder Our scope of work did not involve verification of the improvements to data management, including the engagement for all business units (subsequent to accuracy and robustness of financial data, other reduction of manual aggregation and transcription undertaking consultation of all business units last than that relating to environmental, social or broader processes are recommended to reduce potential for minor anomalies and inaccurate statements. Data form, but not covering the complete breadth of to increase consistency, whilst allowing business units trails selected were easily identifiable and traceable, information presented by wholly-owned business some flexibility in the way they identify and report upon 95

and the personnel responsible were able to reliably units. This is considered appropriate. Following what they (and their stakeholders) consider material Independent Assurance Statement demonstrate the origin(s) and interpretation of data. a recommendation last year, an organisational sustainability issues for their business. ownership structure diagram has been included in • Three of the business unit audit scopes were the front section of the report which may improve The assurance provider’s recommendation last expanded to ensure that any systemic errors were clarity for the reader. year for annual executive level meetings on material found and corrected. sustainability issues to the business and in setting The data was also reviewed for whether or not • The statements made in the report appropriately sustainability goals has been taken on board and reporting boundaries and reporting periods were reflect environmental, social and economic formalised at each business unit. This also needs being appropriately considered. It was found that performance achieved during the period. to be embedded at the corporate level for whole-of- this was the case with the majority of data except business. Commitments made in 2006 were reviewed, • All suggested changes were satisfactorily addressed for some data sets where there was a time lag in concluding that appropriate progress had been made. by Wesfarmers prior to finalising the report. data entry, and except for some sites and regional Focus on broader business-level challenges such operations, which were considered non-material, as climate change, supply chain management and Overall, the assurance provider is satisfied that the where disclaimers capture such omissions and community engagement need to be better articulated, report addresses an appropriate representation of the inconsistencies. Recommendations have also been and Wesfarmers’ level of response and performance sustainability performance of Wesfarmers during the provided around increasing the consistency of management reported. Stakeholder engagement needs reporting period. information received from business units by better to continue, and in particular awareness amongst defining data requirements. Conclusions and Recommendations employees and highly interested and influential external • Responsiveness: Net Balance tested the stakeholders needs to be raised. • Materiality: Materiality was determined by responsiveness of the organisation through a assessing compliance performance, issues material In terms of direct impact, the organisation’s review of management systems, documents and to stakeholders, policy-related performance and characterisation of its environmental footprint is policies prepared by the organisation relating to peer-based norms. advanced, and comprehensive. The development of the the way it responds to stakeholder concerns and social footprint is less advanced, and requires more With regard to key sustainability opportunities interests. Responsiveness was also tested by work, but is not inconsistent with peer norms. for business units, the most common responses assessing the resources allocated to implement from internal and external stakeholders during the aforementioned policies and commitments; The report itself continues to be a significant effort for stakeholder engagement related to product by assessing the timeliness and accessibility of Wesfarmers, particularly given some of the challenges development and quality, occupational health reported information; and by undertaking a review highlighted above. We found that comments and input and safety, resource use (e.g. water, energy and of key policies, targets and indicators and assessing had been sought from several levels within Wesfarmers. the extent to which these are implemented by waste), supply chain management, procurement, The report also continues to be internally verified prior Wesfarmers. Net Balance also engaged with climate change risk management and incidents to external assurance. One of our concerns is that 27 internal and external stakeholders using a management. It is the assurance provider’s opinion the amount of text that may limit the readability of the structured-survey process to gain an appreciation that whilst initiatives and commitments are in document, and this will continue to present a challenge of their perception of the sustainability performance place to address the majority of issues raised by as the organisation grows. Report sizes are starting to and reporting thereof of the Wesfarmers- stakeholders there is room for improvement in the shrink globally, and Wesfarmers needs to continue to owned Bunnings and Premier Coal business reporting of Wesfarmers’ performance in some of look to manage the size of the report, despite diversity units. Stakeholders felt that the organisation’s the above areas. and growth. Development of some systems and quality responsiveness is in general ‘average’ to ‘good’ and controls for data would further assist in reporting Review of peer-based norms and policy that it was performing well in economic, social and efficiency and in reducing potential for human error or development noted that most areas are comparable environmental areas. to peers, and well-addressed, but some areas, loss of intellectual property through natural staff particularly around issues raised by stakeholders The Way Forward turn-over. These are key risks in performance (above) are yet to be fully enunciated and policy measurement and reporting for an organisation such Based on discussions last year, Wesfarmers has positions established. as Wesfarmers. re-named its Social Responsibility Report this year Completeness: The report was found to be mostly to Sustainability Report, recognising the growing The assurance provider has provided additional complete in addressing key environmental, social awareness of the term and what it broadly means. suggestions for reporting improvement in some areas, and economic performance as well as all However, the report structure and content has not including a System Diagnostic Audit in early 2008 wholly-owned operations of Wesfarmers, using the altered from last year providing consistency for the in preparation for next year’s reporting cycle. The Global Reporting Initiative’s (GRI) G3 Sustainability reader. The internal stakeholder engagement process assurance provider has also suggested a training Reporting Guidelines (October 2006) as a guide. (particularly for Bunnings) reflects a growing awareness session for staff involved in developing the report As noted by stakeholders, the assurance provider of the need to, and an interest in, taking a lead in on verifiability of claims, and accuracy of data, as agrees that the diversity of the Wesfarmers’ addressing environmental and social aspects well as development of appropriate procedures for business remains one of the more significant of operations. measurement and reporting of key performance challenges to the organisation in collating and indicators. These have been outlined in a more detailed The diversity of the business presents continuing presenting consistent group-level environmental and report presented to Wesfarmers. challenges to Wesfarmers in terms of how it integrates social performance data. Whilst improvements have sustainability into its operations. Growth of the On behalf of the assurance team, 28th September 2007, been made in the way this data was collected and business has also brought with it similar challenges Melbourne, Australia reported over the years, there are several of integrating environmental and social performance recommendations made below for further objectives that are consistent across business units. improvements to improve the quality and These challenges are not likely to disappear, and indeed consistency of information presented. are more likely to increase with time. Accordingly, Data for businesses that are not wholly-owned/ the assurance provider has carried over last year’s Terence Jeyaretnam controlled by Wesfarmers is presented in a concise recommendation for additional quality controls in data Director, Net Balance & Lead CSAP (IRCA UK) 96

GLOSSARY

Australian Standards (AS) National benchmarks for products and services.

Average Time Lost Rate (ATLR) An indicator of the average time lost for each lost time injury. The ATLR provides a measure of the severity of occurrences.

Bank Cubic Metre (BCM) A bank cubic metre is a measure of overburden removed in mining operations.

Bank Cubic Metre Equivalent (BCMeq) A bank cubic metre equivalent is a measure of both coal produced and overburden removed in mining operations.

CBM Coal Board Medical

FESA The Fire and Emergency Services Authority of Western Australia.

Fugitive emissions Generally deliberate but not fully controlled emissions that typically result from leaks from pumps, pipes and valves. For example methane emitted from coal mine seams and vapour emitted when petroleum storage tanks are filled.

Gigajoule Unit of energy equivalent to 1,000,000,000 joules.

Greenhouse gases Gases such as carbon dioxide, methane and nitrous oxide which contribute to retention of heat in the earth’s lower atmosphere.

Greenhouse Challenge Plus The federal government’s programme of cooperation between industry and government to reduce greenhouse gas emissions through voluntary action.

International Organisation for ISO publishes internationally-agreed standards covering areas such as quality management (the ISO 9000 series) and Standardisation (ISO) environmental management (ISO 14000).

Liquefied petroleum gas (LPG) A combination of predominantly propane and butane extracted from natural gas or as a by-product of petroleum refining.

Liquefied natural gas (LNG) Comprising predominantly methane, it is produced from natural gas that has been purified, refrigerated and condensed to liquid form.

Lost Time Injury (LTI) An LTI is any work injury which causes absence for one day or a shift or more.

Lost Time Injury Frequency Rate (LTIFR) The main calculation we use to measure workplace safety performance. It is calculated by dividing the number of LTIs by total hours worked, multiplied by one million.

National Packaging Covenant An agreement between the packaging supply chain industry and governments which sets guidelines covering the manufacture, supply, distribution, consumption and recovery/recycling of post-consumer packaging.

National Pollutant Inventory (NPI) An Australian internet database designed to provide the community, industry and government with information on the types and amounts of certain substances being emitted to the environment. The NPI contains data on certain priority substances which are emitted to the environment. The substance list was determined by consideration of health and environmental risks in Australia. The NPI uses standard assumptions, in part, to calculate potential emissions we cannot measure or have difficulty measuring and, accordingly, data reported to the NPI may differ from point source emissions contained in this report. More information can be found on the NPI website www.npi.gov.au.

Overburden Unmineralised material overlaying coal deposits or ore bodies.

Rehabilitation Treatment of disturbed areas to achieve a level of stability equal to that which existed before or to an alternative acceptable form.

SMS Safety Management System

SOP Standard Operating Procedure www.wesfarmers.com.au

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