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Annual Report 2015-16 Is $18,50023 Annual Report 2015–16 About this report This is Sydney Water’s full Annual Report for 1 July 2015 to 30 June 2016. It covers financial, social and environmental performance, statutory information, financial statements and other regulatory information. The full report and a 30 page summary report are available on our website: sydneywater.com.au If you have any comments about the Annual Report 2015–16, please email [email protected] or write to: Sydney Water Annual Report Project Manager Corporate Public Affairs PO Box 399 PARRAMATTA NSW 2124 Letter to Shareholder Ministers Dear Treasurer and Minister Perrottet Report on performance for the year ended 30 June 2016 We are pleased to submit the Annual Report of Sydney Water Corporation (Sydney Water) for the year ended 30 June 2016 for presentation to Parliament. The full report includes financial statements, and we publish a 30 page summary on our website. Our Annual Report 2015–16 was prepared according to section 24A of the State Owned Corporations Act 1989 and the Annual Reports (Statutory Bodies) Act 1984. The financial statements for 2015–16, which form part of the Annual Report 2015–16, were certified by the Auditor-General of New South Wales. Yours sincerely, Bruce Morgan | Chairman Kevin Young | Managing Director BComm, FCA, FAICD BEng (Hons), MBA, FIE Aust, CPENG, FAICD 1 Sydney Water Annual Report 2015–16 Sydney Water Annual Report 2015–2016 1 Contents About this report 1 3. Customer at the heart 51 Letter to Shareholder Ministers 1 Our sustainability performance 52 Contents 2 Our service guarantee 58 1. Overview 5 Social programs 60 Multicultural policies and About Sydney Water 6 services program 62 Our vision 6 Community investments 64 Our stakeholders 7 Privacy 65 A snapshot of our business 9 Communicating with our customers 66 Our operations 10 4. World class performance 67 The year in review 14 Our performance 17 Our sustainability performance 68 This year’s highlights 17 Our ecological footprint 77 Our awards and recognition 22 Risk management and performance 78 Our Corporate Strategy 23 Legal events 80 Strategic success measures: Capital expenditure 81 Our performance 25 Research and development 85 Balanced sustainability scorecard 32 Heritage delegation actions 91 2. Corporate governance 35 Statement on the implementation of our special objectives 93 Our Corporate Governance Threatened Species Conservation Framework 36 Act 1995 104 Sydney Water Board Directors 39 Board meetings 48 Organisational chart 49 2 Sydney Water Annual Report 2015–16 5. High performance culture 107 Our sustainability performance 108 Workplace health and safety 112 Executive performance and remuneration 115 Workforce diversity 116 Staff and industrial relations 119 Consultant engagements 119 Overseas travel 120 6. Financial statements 123 Financial performance summary 124 Pricing 129 Auditor-General’s statutory audit report 134 Financial statements for the year ended 30 June 2016 136 7. Appendixes 205 Appendix 1: Exemptions from reporting provisions 206 Appendix 2: Government Information (Public Access) (GIPA) 207 Appendix 3: Public Interest Disclosures 211 Appendix 4: External production costs 211 Glossary 212 Statutory information index 218 Index of figures, maps and tables 221 2 Sydney Water Annual Report 2015–16 Sydney Water Annual Report 2015–2016 3 1. Overview About Sydney Water At Sydney Water, we exist for our customers. Customer at the heart We provide safe, refreshing drinking water to almost five million people across Sydney, We provide high quality water and the Blue Mountains and the Illawarra. We wastewater services to more than look after wastewater and some stormwater 4.9 million people every day. We’re services to protect the health of our rivers changing the way we do things to ensure and beaches. the voice of customers drives our business. As Australia’s largest water and wastewater service provider, we’re proud to play a key World class performance role in Sydneysiders’ continuing enjoyment of this great city and iconic outdoor way We want to deliver more and better of life. services for customers, underpinned by a well-organised, efficient business. To do We need to be both responsible for and this, we’re investing in the right tools and responsive to our community to ensure all using innovative solutions. our customers can continue to enjoy the benefits of safe drinking water, and healthy rivers and beaches. This will help us meet High performance culture our challenges now and as our city grows in the future. Our focus on culture defines our values and guides how we work and interact with each other, our customers and the Our vision community. Our people bring a diverse range of thought, experience and Our vision is to be the lifestream of Sydney knowledge to Sydney Water, and more for generations to come. The services we than ever, they’re on board and connected provide help sustain and grow new life. We’ve to bringing our strategy to life. been supplying high quality services to our customers for more than 128 years and we’re We are a State Owned Corporation, wholly passionate about contributing to the lifestyle owned by the New South Wales Government. of Sydney now and in the future. Our performance targets and service standards are set out in our Operating We want to provide more and better choices Licence 2015–2020, which is governed by the for customers, while ensuring our essential Independent Pricing and Regulatory Tribunal services remain fair for all. It’s our mission (IPART). to be world–class, delivering essential services that our customers love, in our We operate under the Sydney Water Act 1994, great city. To achieve this, we’re focusing on which assigns our principle objectives to: three objectives that make up our Corporate Strategy. • protect public health • protect the environment • be a successful business. 6 Overview| Sydney | SydneyWater Annual Water Report Annual 2015 Report 2015–16 Our stakeholders our strategic long-term relationships through face-to-face interaction, communication, Overview We work with a range of stakeholders across negotiation, collaborative action, and shared various sectors representing government, thinking and planning. community and industry groups. We are We apply the International Association committed to involving stakeholders in for Public Participation (IAP2) standard our decision-making through effective for engagement. The IAP2 core values set engagement and relationship building. the industry benchmark for best-practice engagement. governance Collaborating with our stakeholders helps us Corporate align our decision-making with the needs and Our engagement objectives – to guide, build expectations of the communities we operate and strengthen relationships – reflect Sydney within. We support the health and growth of Water’s signature behaviours: Focus on solutions 1 Engagement is a two-way process. We are committed to collaborating with and working in partnership with stakeholders to deliver solutions and outcomes for our Customer at the heart customers. Stand up and contribute 2 We seek out and involve those potentially interested or affected by our work, policies and processes. We commit to providing feedback to customers, the community and stakeholders on how their input contributed to our decision- making. performance Do what we say class World 3 We will actively listen to and consider stakeholder needs, seeking to understand how they want to be engaged. We honour the commitments we make and will ensure information is accessible and objective, and facilitates engagement with all stakeholders who have an interest. We are committed to providing accurate and timely information. Support and encourage High performance 4 We are open and honest. We will respond to the values and needs of our customers, community and stakeholders, while fostering a culture of shared ideas. We are culture inclusive and will work to engage with those that are harder to reach for reasons such as language, culture, age or mobility. Own the outcome 5 We work with our customers, community and stakeholders to identify, mitigate and resolve issues to improve outcomes for all. We will evaluate our performance so we can continuously improve our processes. statements Financial We operate within a complex matrix of These include: stakeholder groups. We value all of our stakeholder relationships, but we invest • customers – business and residential more time and resources on particular • staff and contractors relationships, because of their interest and • developers impact on our operations. • state and local government Appendixes • regulators • advocacy and special interest groups. 6 Overview | Sydney Water Annual Report 2015–16 | Sydney Water Annual Report 2015 Sydney Water Annual Report 2015–16 | Overview 7 Figure 1: Our stakeholders y F ocac eder Adv al ty ni PIAC PWD u TEC ECC COTA Bureau of Multicultural NSW Meteorology m L ia NCC EWON NCOSS o d c m e Education ROCS a l o M groups LGNSW C Trade Combined and national Customer council outlets Council groups G Digital Business ABS o Customer National R v Forum Action Metro All local e e l groups Regional councils g r a u n c Social l a o SBC m t L IPART o Customer Major plants r e EPA s Liaison New assets Portfolio OEH n Committees Maintenance Minister NSW Health t D Stormwater WaterNSW e Shareholder TfNSW p industry Treasury AWA DPE a Ministers OOW Division of r Universities WSAA DPI t / r INSW Local Gov. DPC A e E x p ert s t BPB UDIA Greater Sydney u a Portfolio Commission
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