ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 by ELECTRONIC LODGEMENT 7 October 2020 Aurizon Sustainabil
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Aurizon Holdings Limited ABN 14 146 335 622 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT 7 October 2020 Aurizon Sustainability Report Please find attached Aurizon’s 2020 Sustainability Report for release to the market. Kind regards Dominic D Smith Company Secretary T +61 7 3019 9000 | F +61 7 3019 0720 | [email protected] Level 8, 900 Ann St, Fortitude Valley QLD 4006 Australia | GPO Box 456 Brisbane QLD 4001 Australia 2020 | Sustainability Report Delivering for a sustainable future No reliance on this document This document was prepared by Aurizon Holdings Limited (ACN 146 335 622) (referred to as “Aurizon” which includes its related bodies corporate (including Aurizon Operations Limited)). Whilst Aurizon has endeavoured to ensure the accuracy of the information contained in this document at the date of publication, it may contain information that has not been independently verified. Aurizon makes no representation or warranty as to the accuracy, completeness or reliability of any of the information contained in this document. Aurizon owes you no duty, whether in contract or tort or under statute or otherwise, with respect to or in connection with this document, or any part thereof, including any implied representations or otherwise that may arise from this document. Any reliance is entirely at your own risk. Document is a summary only This document contains information in a summary form only and does not purport to be complete and is qualified in its entirety by, and should be read in conjunction with, all of the information which Aurizon files with the Australian Securities Exchange. Any information or opinions expressed in this document are subject to change without notice. Aurizon is not under any obligation to update or keep current the information contained within this document. Information contained in this document may have changed since its date of publication. No investment advice This document is not intended to be, and should not be considered to be, investment advice by Aurizon nor a recommendation to invest in Aurizon. The information provided in this document has been prepared for general informational purposes only without taking into account the recipient’s investment objectives, financial circumstances, taxation position or particular needs. Each recipient to whom this document is made available must make its own independent assessment of Aurizon after making such investigations and taking such advice as it deems necessary. If the recipient is in any doubts about any of the information contained in this document, the recipient should obtain independent professional advice. No offer of securities Nothing in this presentation should be construed as a recommendation of or an offer to sell or a solicitation of or subscription or invitation of an offer to buy or sell securities in Aurizon in any jurisdiction (including in the United States), nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. This document is not a prospectus and it has not been reviewed or authorized by any regulatory authority in any jurisdiction. This document does not constitute an advertisement, invitation or document which contains an invitation to the public in any jurisdiction to enter into or offer to enter into an agreement to acquire, dispose of, subscribe for or underwrite securities in Aurizon. Forward-looking statements This document may include forward-looking statements which are not historical facts. Forward-looking statements are based on the current beliefs, assumptions, expectations, estimates and projections of Aurizon. These statements are not guarantees or predictions of future performance, and involve both known and unknown risks, uncertainties and other factors, many of which are beyond Aurizon’s control. As a result, actual results or developments may differ materially from those expressed in the forward-looking statements contained in this document. Aurizon is not under any obligation to update these forwardlooking statements to reflect events or circumstances that arise after publication. Past performance is not an indication of future performance. No liability To the maximum extent permitted by law in each relevant jurisdiction, Aurizon and its directors, officers, employees, agents, contractors, advisers and any other person associated with the preparation of this document, each expressly disclaims any liability, including without limitation any liability arising from fault or negligence, for any errors or misstatements in, or omissions from, this document or any direct, indirect or consequential loss howsoever arising from the use or reliance upon the whole or any part of this document or otherwise arising in connection with it. Note: a number of images used within this document were taken prior to the outbreak of COVID-19 in 2020. Social distancing measures have since been put in place across the Company. AURIZON 2020 | Sustainability Report Contents Managing Director & CEO message 3 About Aurizon 4 How we operate 8 Governance and risk 16 Safety 20 Future of coal 24 Climate change and environment 32 People 38 Community 42 Tax at Aurizon 44 Delivering for a sustainable future 1 ABOUT AURIZON HOW WE OPERATE GOVERNANCE AND RISK SAFETY Aurizon’s FY2020 sustainability performance 262 $400 million million tonnes of share buyback completed, commodities and $514 million paid hauled in dividends 58 83% charities supported of our employees through our Community work across regional Giving Fund locations in Australia 22% 6.15% of our workforce of our workforce is Aboriginal or is female, up from Torres Strait Islander, 21% in FY2019 up from 5.64% in FY2019 10% 8% improvement in our deterioration in Total Recordable Rail Process Safety Injury Frequency Rate in FY2020 (TRIFR) against FY2019 2% $1.3b increase in total greenhouse spent with suppliers, gas emissions against a large percentage of which FY2019 (Scope 1 and 2) was in regional Australia 2 AURIZON 2020 | Sustainability Report FUTURE OF COAL CLIMATE CHANGE AND ENVIRONMENT PEOPLE COMMUNITY TAX Managing Director & CEO message On behalf of Aurizon, I am pleased to share During FY2020, we delivered on However, Rail Process Safety, which includes our seventh Sustainability Report. several key initiatives to further drive operational safety incidents such as long-term commercial sustainability for derailments, signals passed at danger and Aurizon is committed to being open and the Company, including: collisions, deteriorated by 8%. transparent on the environmental, social and governance (ESG) aspects of our business, Approval of the 10-year commercial While it is important to note that over with disclosures on how we operate and agreement with our customers who the past decade there has been long-term manage risks. In August 2019, the Australian use the CQCN to transport their coal. improvement in Aurizon’s safety performance Council of Superannuation Investors rated This agreement provides greater and culture, we remain absolutely focused our ESG disclosures as ‘Leading’ for the commercial, operational and investment on driving further significant improvements. fifth consecutive year. In addition, as of June certainty for all users of the CQCN, and We are continuing to invest in technology, 2020, we participate in the FTSE4Good Index a platform for continued performance processes and people to deliver more Series, MSCI and Sustainalytics ESG Ratings. improvement across the supply chain. safety and efficiency benefits. In this Our Bulk business has seen a very report, you can read more about one of This will be our fourth year reporting against strong turnaround following its 2017-18 our initiatives, TrainGuard, which will support the Task Force on Climate-related Financial restructure, with new customers, improved safety outcomes for our people Disclosures (TCFD) as recommended by the extensions to existing contracts, and continued delivery performance for Financial Stability Board (FSB). While our and continued efficiency improvements. our customers. annual Sustainability Report remains the The Bulk business now has a more primary channel for engaging on all ESG diverse revenue base by product, The regional communities where we operate matters, our inaugural Climate Strategy which provides a more balanced platform are very important to us. We understand 1 and Action Plan sets out our actions and for the future. Bulk continues to focus on the significance of contributing to these long-term targets in reducing our emissions, leveraging its diverse assets and facilities, communities where our people work and while contributing to the decarbonisation of utilising available capacity, and flexibly live. We have continued to support local Australia’s transport supply chains. deploying its assets and people. charities through our Community Giving Fund by providing grants to assist a range of Despite the emergence of COVID-19 this Bulk has also expanded its product community initiatives. year, we have continued to provide safe, offering, with the $25 million acquisition of Townsville Bulk Handling and Storage, reliable services to our customers, and During the year, Aurizon was pleased to which has been renamed Aurizon Port support the regional communities where become a founding member of the Regional Services (APS). This business has a our people live and work. As Australia’s Australia Council 2031 (RAC2031) with the long-term lease over assets