Social Responsibility Report 2005

Social responsibility report 2005 www.wesfarmers.com.au

Areas covered

Business management Environmental Safety and health Community

Contents

Managing Director’s review 01 Wesfarmers LPG 52 About this report 02 Industrial & safety 60 The big picture 04 CSBP 70 Bunnings 08 Insurance 84 Curragh 22 Other businesses 90 Premier coal 32 Verification statement 92 Kleenheat gas 44 Glossary and feedback 93

Cover Image:

Organisations that beneﬁt from our community contribution programme include the Clontarf Football Academy and the Australian Research Alliance for Children and Youth (ARACY), both dedicated to achieving better outcomes for young people (See page 7). ARACY's Executive Director, Professor Fiona Stanley AC, is pictured with (left to right) Alroy Gilligan, Vern Brockman, Philo Curley, Craig Sampi, Corin Greenwood and Carl mcNeil. I want to take the opportunity to restate our commitment to provide information which goes to the heart of our objective to operate in a sustainable way.

WELCOME Through our manufacturing and mining activities, and to an This is the first time I have had the pleasure of welcoming extent retail, we are a major energy user. Total energy use readers to the Wesfarmers Social Responsibility Report. increased during the year, mainly due to the development of That being the case, I want to take the opportunity to restate the Curragh North mine in Queensland and inclusion for the our commitment to provide information which goes to the first time of data from our remote power generation business, heart of our objective to operate in a sustainable way. Energy Generation. But there were some overall reductions in energy use at business unit level and in four out of the five The much-debated concept of sustainability boils down, as businesses where an increase occurred there was actually a far as we are concerned, to an approach in which financial success sits comfortably with a resolve to set high standards decrease in terms of use per unit of production or a similar in a range of other areas. These include the decent treatment measure. We are pleased to be one of a relatively small group of employees, customers and suppliers, acting honestly and of companies taking part in a trial of the Federal government’s ethically in all dealings, doing what we can to minimise impacts Energy Efficiency Opportunities programme ahead of the start on the environment and contributing to the community. of that initiative in 2006. The decision in 1998 to start publishing a report of this nature No one will ever be satisfied on safety until we achieve a was one of the most important initiatives in our 91 year history completely clean sheet with respect to workplace injuries. But because it signalled a willingness to be accountable on these for the group as a whole it was really pleasing to note the fronts. The ongoing challenge is to continue to improve both decrease in both the number of lost time injuries and the Lost our sustainability performance and the standard of reporting Time Injury Frequency Rate, despite almost a million extra and to do all we can to ensure that a culture of socially hours being worked. That being said, our individual businesses responsible behaviour permeates all levels in the organisation. still have big job in achieving their zero target and we cannot This publication is an important part of the latter process as it for a moment afford to relax our concentration on safety. highlights the impact of relevant issues. We support a broad range of community-benefiting Last year we took a significant step forward by aggregating organisations and this year contributed almost $5 million data from across our very diverse group. We felt readers would through donations, sponsorships and other forms of assistance. benefit from a summary so that judgements could more easily This included $250,000 for the victims of the tsunami disaster be made about our overall economic, environmental and social who were helped also by the magnificent efforts of Bunnings’ impacts. By retaining that format it is possible for the first time employees in running a giant national sausage sizzle. to make year-on-year comparisons in a number of key areas, particularly with respect to environmental indicators. LOOKING AHEAD While we do not have group-wide targets (apart from our long- As we do each year, there will be a review of the direction and standing goal to reduce accident rates by 50 per cent each year nature of the report in which we take note of developments on the way to zero) some of the priorities set by the business in the ongoing debate surrounding these issues. That review units have been made more specific. And there have been will certainly consider the findings of the Commonwealth other improvements as businesses gather more data and are parliament’s Joint Committee on Corporations and Financial able to fill in some of the gaps that previously existed. Services, whose inquiry into Corporate Responsibility and REVIEW OF THE YEAR Triple Bottom Line reporting was continuing at the time of In looking back over the year there were some pleasing publication of this report. It will also benefit from comments developments. and suggestions readers make and I would encourage you to let us know what you think, either by way of the reply-paid Bunnings continues to make a major effort to enhance its form inside the back cover or via the website. environmental credentials. As well as its industry-leading plastic bag reduction campaign and its sustainability-focused Finally, I want to thank all our employees for the enormous wood and wood products policy, the business is vigorously amount of care they devote to the areas covered by this report. pushing ahead with programmes aimed at better use of water, These are such sensitive issues that anything but meticulous increased energy efficiency and greater recycling involving attention to detail can have serious consequences. I think our packaging and waste paint. people do an extremely good job in meeting the high standards CSBP is making good progress in tackling the remediation of we set and that the community expects us to maintain. a contaminated former operational site at Bayswater, in Western Australia, and significant remediation work was done at one of the locations previously used by our Sotico forest RICHARD GOYDER products business. Managing Director

1. Social Responsibility Report 2005 02.

About this report

TIMING with the Australian Greenhouse Office (AGO) Factors and This report covers the financial year ended 30 June 2005. Methods Workbook August 2004 version. Where there has In a few cases, where there have been developments been a material departure from the AGO methods, or where subsequent to the end of the reporting period, but prior to a source of emissions covered by the Workbook has been the printing deadline, we have included this information to excluded, we have noted it and explained the reason. For make the report more time relevant. simplicity this year we have given total emissions figures 02 and not separated them into direct and indirect categories. WHAT WE COVER Readers should note that some of the AGO’s emissions All businesses wholly-owned as at 30 June 2005 are factors have changed from time to time and, accordingly, covered. As was the case last year, the Insurance division year-to-year changes in emissions data may in part be due reports less extensively than the other major contributing to this rather than a change in the performance of a business business units because of the nature of its operations. unit in relation to greenhouse gas emissions. Energy Generation, the renamed StateWest Power, is also included in an abridged format given its relative materiality We have used average emission factors for New within the whole group. Zealand of 0.2466 kg CO2/kWh and 52.8 kt CO2/PJ for We continue to report in the “Other Businesses” section on electricity and natural gas consumption, respectively, progress in remediation of site contamination arising from and an emission factor of 0.960 kg CO2/kWh for electricity About this report the activities of our Sotico subsidiary, the last operating in Bangladesh. assets of which were sold in August 2004. We also report Further information is available at www.greenhouse.gov.au. on work being done to address contamination linked to the operations of our former road transport business. REPORT PREPARATION The report contains information on the 40 per cent- Data collection and report drafting is the responsibility of owned Air Liquide Western Australia which we manage. business unit environmental, safety and community relations Brief reference is made to other businesses with which we representatives who are part of a Working Group convened are associated – the Australian Railroad Group, Bengalla by the Wesfarmers Corporate Office. Drafts are reviewed coal mine, Wespine plantation softwood sawmill and the by the Corporate Office prior to detailed discussions with Queensland Nitrates ammonium nitrate plant. As we do the contributing authors. This process ensures that ultimate not directly manage these operations we do not attempt to ownership of the report lies with the business units. report on them. In all cases we provide links to websites for readers wishing to find out more about their activities. VERIFICATION The report’s accuracy and completeness is critically SAFETY DATA important and every effort is made to ensure that all Readers will notice on the safety performance graphs a statements are properly authenticated. reference to statistics being for the year to 30 June but “as at 30 September 2005”. This is because we adjust the After the discussions referred to above are complete numbers to take account of workers compensation claims and a final draft agreed, the business unit representatives lodged, or lost time that has been reported, up to 30 are required to compile detailed checklists linking report September relating to injuries sustained in the financial content to documented source material or employee year under review, thus allowing for delayed impacts. It sign-off. can mean that the numbers reported for a particular year Representatives from our Corporate Solicitors Office and have to be changed in subsequent reports. Group Risk Management department then conduct sample The basis for calculating our main safety performance verification checks through site visits and desktop audits. indicator – the Lost Time Injury Frequency Rate (LTIFR) – is They later prepare reports for senior management. outlined in the glossary on the inside back cover. The internally-verified reports, signed off by the authors and LTIFR numbers now include contractors unless otherwise senior management, are provided to independent assessors specified in the reports of the individual businesses. Where it from the Snowy Mountains Engineering Corporation is possible to calculate an LTIFR for contractors – that is, where (SMEC). SMEC was engaged in 2000 to conduct the external there is regular engagement and hours worked are available verification process and to prepare a detailed report to – the business is required to include this information. business units and Wesfarmers Limited management. GREENHOUSE GAS EMISSIONS SMEC’s findings on this report are published on page 92. Greenhouse gas emissions information contained in this Final sign-off by divisional managing directors occurs after report is generally based on calculations done in accordance conclusion of the external verification process.

2. Social Responsibility Report 2005 The report’s accuracy and completeness is critically important and every effort is made to ensure that all statements are properly authenticated.

AUDIT COMMITTEE GLOSSARY Board oversight of this report is delegated to the Audit Within each separate report we aim to eliminate as much Committee which gives final approval before publication. jargon and technical terminology as possible and to spell out the names of organisations when they are first mentioned. FORMAT We have used current names of government departments The report format aims to increase the transparency of and other regulators even though their designations may the document by requiring businesses to report under have been different during the reporting period. A general 03 standardised headings. Occasionally items may not fit glossary can be found on the inside back cover. entirely logically under these classifications, but we believe the layout enables readers to more easily make cross- WEBSITE business comparisons. Not all of the categories appear in all The full report is also available on our website at of the reports. This means either that the heading is simply www.wesfarmers.com.au. Additional hard copies can not applicable to a specific operation or that a business is be obtained from the Public Affairs Department on unable to supply the necessary data. Gaps are thus identified (61 8) 9327 4251. and the businesses concerned are encouraged to consider whether these can be closed. FEEDBACK Please help us improve the report by sending your comments COMPLETENESS either on the form on the inside back cover or through About this report We do not claim that this report provides 100 per cent the website. coverage of our safety, environmental and community relations performance. There are gaps in our knowledge which will be reduced as our systems improve. This document is a best endeavours attempt to report openly and honestly based on our current state of knowledge.

3. Social Responsibility Report 2005 04.

The big picture - Wesfarmers’ economic, environmental and social impacts.

The detailed business unit reports that appear later in We have also been awarded “Best of Class” status by this document contain a great deal of information about Storebrand Investments based on our environmental and environmental and safety and health performance and social performance and have been included community interaction. in the RepuTex Social Responsibility In this section we aggregate some of the key data from Investment index. those areas as well as providing a snapshot of our structure 04 and economic impacts, the third leg in the triple bottom Environmental line approach to corporate accountability. It is hard to think of another major Australian company that in any way matches our industry and business sector Economic diversity. That diversity and our geographic spread across We are one of Australia’s largest public companies with Australia and New Zealand brings with it an extremely wide our head office in Perth, Western Australia. In 1984 we range of environmental challenges. The differing nature listed on the Australian Stock Exchange, a far cry from our of these issues caused us to adopt a group environment beginnings as a farmers’ cooperative in 1914. We are a very policy which requires business units to develop policies diversified organisation with major operating business and procedures relevant to their particular circumstances. interests in home and garden improvement products and All such policies have to take account of our overarching The Big Picture building supplies; energy – including coal mining, gas guideline which commits the company to “placing strong processing and distribution and power supply; insurance; emphasis on protection of the environment”. industrial and safety products distribution; chemicals The industry-leading initiative by our Bunnings business and fertilisers manufacture; rail transport; and plantation in imposing a levy on plastic bags continues to make a forest products. significant impact by reducing the volume of these potentially In the year to 30 June 2005 our company recorded a net profit environmentally damaging objects in waste streams. We of $618 million and at the end of the reporting period we estimate that more than 20 million fewer such bags have had a market value of $15 billion. Other significant financial been supplied since the levy began in September 2003. And indicators are summarised in (see Figure 1, below). more than $147,000 has been donated to the Keep Australia Beautiful Council in support of its “Clean Site” programme. Customers who need containers for their purchases are GROUP FINANCIAL INDICATORS offered more readily recyclable cardboard cartons or they Figure: 1 can buy, at cost, reusable bags. More than one million such Net sales $8.0 billion bags have been sold. Cost of goods, materials and services purchased $5.8 billion During the year, Bunnings began its “Waterwise” Payments to employees $950.0 million programme which will combine data collection to identify leaks and wastage with installation of water-saving devices Dividends paid to shareholders $680.0 million and customer and employee awareness-raising, all aimed at Interest paid on borrowings $103.0 million reducing water usage. Income tax and other payments to governments $424.0 million The chemicals and fertiliser business unit, CSBP, won Increase in retained earnings $71.7 million the Premier’s Water Foundation Award, recognising its significant achievement in water management. At Premier More than 90 per cent of our revenues and earnings are Coal, a highlight was winning the State Environmental derived from our Australian operations. We are not required Award for Corporate/Business Leading by Example for its to report separately on the financial outcomes of our New sustainability planning and management systems and work Zealand activities. done rehabilitating former mined areas. We are one of 17 Australian companies As reported in previous years, we have a group-wide selected for inclusion in the Dow Jones preference for company-supplied vehicles to run on liquefied Sustainability World Indexes (DJSI World) petroleum gas because of its environmental benefits over for 2006. This covers the top 10 per petrol and diesel. cent of the 2,500 biggest companies in GROUP ENVIRONMENTAL INDICATORS the Dow Jones World Index in terms of Given the varied nature of our business activities it is hardly corporate sustainability after assessment against economic, surprising that some are better placed to monitor and report environmental and social criteria.

4. Social Responsibility Report 2005 GREENHOUSE GASEMISSIONS Wesfarmers GroupTotal Insurance Kleenheat Gas Industrial &Safety Premier Coal Wesfarmers LPG Bunnings Energy Generation Curragh CSBP Gas and Insurance do not measure solid or liquid waste. waste. liquid or solid measure not do Insurance and Gas Kleenheat generation. of waste records We incomplete have group WASTE total estimated year’s megalitres. 10,483 was Last consumption Curragh. at use total of water cent per 44 the about In contributed meters. this period faulty previous to due measurement of of because unreliability operations Curragh the at used water recycled include not does total this Also, consumption. measure does not but user water low a is which division, and Insurance available the is measure adequate no and leased are sites operating its of many because business Gas Kleenheat our megalitres 7,690 totalled water and bore of use scheme we year estimate This CONSUMPTION WATER 3. Figure in summarised is usage Energy basis from year. Business–by–business this for time the first data same Generation included the have on we above, and mentioned as emissions, doubled gas as and, than greenhouse mine North more with Curragh usage the of development Curragh’s the with year. per last 36 of on 2004/2005 increase cent an in gigajoules, group million our 19.7 for almost was use energy estimated Total USE ENERGY Generation. Energy by operated and built, owned stations power from emissions to relates This Power. as StateWest known formerly business, supply power remote Generation Energy the from contribution significant a first time the for includes year this number group The improve. processes reporting and last of measurement our as numbers these accuracy mentioned the in As confidence greater 2001/2002. gaining are we in year, tonnes year last million reported 2.4 tonnes and million 2.2 with tonnes compares This million 2.5 than more were at - reference estimated of giving ease for are year we this figure - combined the equivalents dioxide carbon to converted Australian on for group the emissions greenhouse and indirect Total direct emissions gas our based methodology. Office have greenhouse Greenhouse we of report, this measure in earlier explained As EMISSIONS GAS GREENHOUSE below. listed as issues, significant on provide information to effort an in collection data improve to continue we But operations. developed or insurance say, retail the than, highly systems more considerably have to expected be would instance, for mines businesses, coal fertiliser and the – chemicals and others than indicators environmental on Figure: 2

(see Figure 4). Figure (see

(CO 2 -e tonnes) 1,342,614 2,581,363 197,063 623,089 147,450 158,135 17,513 30,752 59,553 This excludes water used by by used water excludes This 5,194 se iue 2). Figure (see Wesfarmers GroupTotal Insurance Industrial &Safety Kleenheat Gas Bunnings Premier Coal Wesfarmers LPG Curragh Energy Generation CSBP Figure: 3 ENERGY USE

340,413 cubic metres (compared with 384,460 last year) year) last 384,460 with (compared at metres waste cubic solid total 340,413 estimate we qualifications, these With locations. other at rainwater, as such streams, liquid other from flows waste due separating of only difficulty the complex to figure Kwinana waste CSBP’s at liquid discharges total includes The brushes. paint water-based rinsing and equipment hire small of washdowns infrequent areas, storage bin from from drainage generated cafes, in are preparation oils food which not volumes vehicle does waste to Bunnings liquid measure servicing. mainly during confined collected are is which Industrial division our for Safety and and businesses these for waste Liquid individual reports. The most significant of these involve involve these of significant most The reports. relevant the individual in provided are details of and some units for business issue our an is contamination site of Remediation CONTAMINATION below. to referred businesses products transport forest and the of activities the on to spent relating to $180,000 remediation about amounted also this includes which 2004/2005 million $6.9 In Gas. Kleenheat project Wesfarmers and Coal, LPG Premier CSBP, specific Curragh, - significant and are salaries by for of those expenses) whom our outlays these businesses (including expenditures environmental direct on information provided we year Last EXPENDITURES ENVIRONMENTAL readers issue. give this of to scope the of idea an reports significant business more relevant the the in of emissions some to reference included have we details but (www.npi.gov.au) Full website NPI sections. the on their available report in are to this required mention NPI are the that under businesses Australian our All (NPI) INVENTORY POLLUTANT from NATIONAL contact other reports. any their in contained are and issues environmental on matters businesses our with regulators these of Details year. last to referred matters outstanding two the to respect with taken under was action No remain six consideration. and these of eight to Environment respect be with of will taken action further no Department that reported advised has DoE were The Australian (DoE). Western non-compliances the potential to 14 CSBP, At year. to the during relating issues environmental prosecutions any or with regulations non-compliance environmental significant any of aware not are We NON-COMPLIANCE/PROSECUTIONS 2003/2004). in kilolitres (964,980 kilolitres 1,086,588 of wastes liquid with (gigajoules)

19,667,816 11,050,351 2,115,667 2,226,142 2,645,000 196,304 217,313 570,224 609,327 37,488 Wesfarmers GroupTotal Wesfarmers LPG Industrial &Safety Premier Coal Bunnings Curragh CSBP Figure: 4 WATER CONSUMPTION 5.

Social Responsibility Report 2005 Report Social Responsibility

(megalitres) 7,690 2,476 3,930 514 688 20 62 05 The Big Picture 06 The Big Picture We have policies which apply across the group aimed at at aimed group the across apply which policies have We Committee. Executive 11-strong our on including members company, the in female two are There professionals. and senior positions management 900 top the of per 11 42 cent about are as Around women are issue. employees our of important cent per an remains diversity Gender of cent year. the during scheme per share 76 a review, with for the employees company eligible among cent under of per 94 up rate take the in year shares held the employees of permanent end the At membership. union trade of do We records keep not agreement. collective of form some by covered are people our of cent per 36 that Weestimate parties. third of negotiate to involvement the employ without or with we collectively or those individually of right the recognise We out beneﬁts. other paid and wages we salaries, in year million $950 This people. majority 60 the about are we employs which partner, in venture joint a by Bangladesh, operated in facility distribution and terminal import gas in New balance Zealand the and Australia in located workforce 30,000-strong almost our of cent per 90 than more with employer major a Weare PEOPLE OUR Social road former our by used work once business also transport locations arising mention at we and remediation progress sites in on fuel retail year former this from information Gas Kleenheat provides efforts. our of focus the are Manjimup Pemberton and at plants treatment timber of ammonia/ impacts Sotico, case an of the In of site. Kwinana its and at plume groundwater Australia arsenic Western site in fertiliser Bayswater former a at of remediation in engaged is CSBP activities. these of cost estimated the cover to made been has provision Financial of Sotico. operations products forest former the and business fertilisers and chemicals CSBP our 6. the for principles key Executive employees. some of development our and succession of adopted group, management whole has the For Committee units. business of responsibility direct the within issues the of one is training structure, unit business autonomously-operating our Given in women of businesses. strategies our representation in the outline Women enhance to reports for implemented These Opportunity Agency. an Equal Workplace complete the the to to required report is unit annual business Each merit. of principle the on based are employment of benefits the and to employment access equal has person each that ensuring Figure: 5 New Zealand SA ACT TAS NT

Social Responsibility Report 2005 Report Social Responsibility

EMPLOYEE LOCATION 2,944 1,009 368 268 164 (see Figure (see 5).Figure NSW Vic Qld Wesfarmers GroupTotal WA

A liqueﬁed petroleum A petroleum liqueﬁed

29,600 6,531 5,991 5,392 6,933

oklc sft i oe f u hget roiis We priorities. highest our of one is safety Workplace SAFETY the embody website. our must on available is they which Code, group the in down activities, laid principles their match standards best adopt may that units business while and behaviour We employee covers that have a and Conduct of Code Ethics particular Wesfarmers. broader opportunities the their across and in businesses provide careers their to develop to employees commitment for a include These presented to its meeting in July 2005. July in meeting its to presented was management safety on report a year. request, coming Board’s the the At in management will senior and by completed considered be been has measure safety main the group-wide remain should LTIFR the whether to as review A sections. Full individual their in performance. available are safety details their indicate that statistics other report to units business our fatalities encourage We year. no the were during There LTIFR. zero a maintaining in well very performed also report, this to contributions brief make which businesses, Generation Energy and WA Liquide Air and the performance rate injury their improved four of them target reduction cent per 50 the did LPG achieved in covered report this seven major businesses other Wesfarmers basis, its but zero LTIFR none well and of maintained extremely the business-by-business a On June. of end the before occurring injuries to relating September 2005 30 and 2005 to June 30 adjusted between is lost As data time include safety 39,168,713. to report, the in 38,257,877 earlier from mentioned cent per 2.4 of hours working total in increase an despite occurred improvement This period. the over injuries time 58 lost fewer were cent 14 per or There year. previous the the in for 10.7 period the group’s on corresponding cent per the the 16 down period, 9, in was reporting LTIFR group the improvement For to an performance. safety was introduction overall his there in report, noted the Director Managing our As of end the at section document. this Glossary the in (LTIFR) Rate explained Frequency is which Injury Time Lost the is apply we measure primary The of zero. a goal towards year each cent per 50 by rates accident reducing of target Wea group have targets. safety of achievement the managing to our linked is them to of report who those of some and directors remuneration the of for works Part who company. everyone our of job their from ensure to return can safe we the all do to obligation an have we believe Figure: 6 BUSINESS UNIT efresGop 07 9.0 0.0 10.7 0.0 4.3 Wesfarmers Group 0.0 Energy Generation 5.3 0.0 Insurance CSBP Industrial &Safety Wesfarmers LPG Kleenheat Gas Premier Coal Curragh Bunnings Business Unit LOST TIMEINJURY FREQUENCYRATES se iue 6). Figure (see 46 11.8 14.6 30 04/05 03/04 . 1.7 2.0 2.3 2.4 1.4 12.7 0.0 2.9 7.0 2.7 However, However, Figure: 7 respect to workplace safety issues at three locations in in locations three at issues with safety Bunnings workplace against to continuing respect are proceedings Legal NON-COMPLIANCE/PROSECUTIONS community-benefiting organisations and causes in the the in causes and year 2004/2005 to organisations flowed million $4.9 than community-benefiting More activities. raising fund in in- employees of their involvement by through and the contributions donations, kind and given sponsorships of is way by Support operate. directly and own and we Limited businesses the Wesfarmers through from – company ways parent two our in by provided donations is assistance case, our In shareholders. to delivered returns the and created jobs from flows which that above community the to a contribution make should companies that We believe CONTRIBUTIONS COMMUNITY remuneration comprehensive a report. and on independence information auditor additional includes Report Annual 2005 The 2005. Exchange June in document Stock policy new a issued Australian and the procedures to Disclosure announcements covering Continuous our enhanced have We questionnaire. responses detailed a to through directors by evaluated was committees its of and the of Board review performance the the 2005 and May the in for and and performance responsible of Board Nomination is (Nomination behalf The Committee on Remuneration recommendations. make Committees matters and review Board Board Audit) Remuneration; standing Two independent. are directors the of eight that considers Board The Officer. Executive Chief and Chairman of roles the filling non- a directors, people to and have different Chairman independent independent executive non-executive have of to it majority requires a which Charter a adopted has Board The non-executives. are Chairman) the (including directors the of Nine Board. our on female one and males 11 now 12 are on there Chaney, Michael retirement Mr of the 2005 July With governance Limited. the Wesfarmers of of account structure detailed www.wesfarmers.com. very at a provide (available we au) Report Annual our In GOVERNANCE or safety reports. health, their in on contained are issues compliance consumer regarding with regulators businesses from our contact other a any and these after of Details 2005 January containers. of in under-filling to $5,000 relating prosecution fined was Gas Kleenheat incidents. these to related issues safety the address to taken been has Action recorded. being conviction no with $15,000 fined was Bunnings 2005 September in in pleading guilty After 2004 injury. foot July a in suffered driver store delivery a Ponds which Waurn the at incident an over Victoria WorkSafe by prosecuted was Bunnings Queensland. TOTAL Business units Wesfarmers Limited

COMMUNITY CONTRIBUTIONS (see Figure 7). Figure (see

$ 4,971,236 $ 2,704,595 $ 2,266,641 and Broome. and Albany in and centres new to open plans and locations three from educational operates It and Australian Aboriginals. young for self-esteem opportunities former employment develop by help to uses 2000 Academy football The Neesham. January Gerard coach League in Football which with Australia established Western engagement in was Academy long-standing Football our Clontarf the continued have We development. of areas key other and educational health, in adolescents and children amongst wellbeing and trends health in adverse of evidence was there high and standards, prosperity educational increasing a of general out despite grew that formation concern Its outcomes people. better young and achieving children broad on for a focused from disciplines of practitioners of range and collaboration makers national policy a is researchers, ARACY which 2002. (ARACY) in Youth formed and was Children For Alliance Australian the Research with is partnerships current be major our of can One that funds the from available. benefits made the best maximise the is to this way believe We education. and research as such medical reach, community possible broadest the have which areas to cases most in funds these of directs It cent profit. per tax before 0.25 of ceiling annual an to up Limited donations Wesfarmers makes Board, the by approved policy a Under disaster. tsunami Asian the of victims aid to appeal the of part as Bunnings by organised sizzle and in sausage giant raised the causes $237,000 these includes This promote employees. its to of efforts stores organisations the its of community use the other through and another of charities raising for the to $971,162 contributed Bunnings addition, In website www.aec.gov.au. www.aec.gov.au. website its on information this publishes which Commission Electoral Australian the to concerned year November financial in the of end the after disclosed are donations All Party. National the and Party Labor the Australian Party, to the Liberal of $160,000 total a donated by we year the not During units. Limited, business our of any Wesfarmers by only made be can parties to a in develop to to be positions policy put to contributions resources the Financial electorate. to the have likely government, form if those to position strengthened particularly is organisations, process political democratic the that believe We DONATIONS POLITICAL Australia. capital across nine centres in regional and people cities 190,000 almost by 2005. seen was January in the Sublime Australia of Western in years an Bunbury with at 25 concluded exhibition Art” “Sublime: Australian of of tour Collection Wesfarmers national year two The festivals. 2007 and 2006 the of each at feature will Two2005. by commissions in February Ballet West Australian work, performed was first Uotinen, The Jorma choreographer arts. Finnish visual by the and theatre, opera dance, music, encompassing orchestral works five the of involves which commissioning Festival Arts International Perth the with and companies arts The organisations. year visual saw and the start of our performing four year a leading partnership to of provided range was $550,000 about totalling assistance Direct 15-year Western our a gallery. our art state’s the acknowledging with and of partnership award sponsorship recognition government arts in Australian to award approach Foundation innovative Arts Australian an won we Business year, the and tolerant During society. sensitive, a prosperous as Australia strong of contribution development a the essential to an as makes sector cultural reputation flourishing a that belief national our on based is support a This arts. the of supporter established have We tsunami. ARTS the WESFARMERS of victims respond to catastrophe. this aid Australia include to in companies first to Limited the of one were We Wesfarmers contributed from $250,000 donations year’s This 7.

Social Responsibility Report 2005 Report Social Responsibility

07 The Big Picture 08.

Bunnings

We are Australia and New Zealand’s leading supplier of home and garden improvement products and building materials.

Sales during the year reached 4.1 billion dollars. At 30 June 2005 we had 131 warehouse stores and 81 smaller format stores with 10 new warehouse stores opened in the financial year and another eight under construction in Australia and New Zealand. In Western Australia we also operate one HouseWorks store and 17 WA Salvage discount variety stores. We employ about 22,000 people.

www.bunnings.com.au

(Above) Team member Sarah Waters at the Bankstown Airport warehouse in New South Wales. Maintainourcontributiontoimprovethesocialand ImprovesafetyperformancebyatleasthalvingourLTIFR Further improveenvironmentalperformance and Promoteoursustainabilityobjectivestocustomers Progress our product stewardship goals, working with Continuetodrivesustainabilityinourglobaltimber and Continuetheimplementationofour“BSAFE” safety priorities Report Purchasing policy with our supply chain partners. partners. chain supply our with policy Purchasing Products Wood and Timber reduction our progressing and electricity initiatives programme, reduction year water the a during were attention our focused we which on areas environmental main the three challenge, this with In dealing operate. we which in communities the or environment the on impact adverse any sustainable a minimises that way in centres support and distribution and sites manufacturing stores, of our operation safe continued the is basis on an ongoing our business facing challenge main The Overview suppliers to develop sustainable product choices for our wood productsupplychains. reduction strategies. programme, includingspeciﬁctrainingandhazard operate. environmental wellbeingofthecommunitiesinwhichwe each yearwithzeroLTIs ourultimateaim. environmental auditandreducingresourceconsumption. eco-efﬁciency byimplementingrecommendationsfromthe behaviours intheiractivities. and teammemberstoencouragepositiveenvironmental bags use. customers and continuing to reduce plastic shopping

Outcomes

water usage accounts and installation of waterless urinals. waterless of installation and accounts usage water

“Waterwise” of review audits, water commenced and programme

energy reduction systems in 71 warehouse stores. Introduced a a Introduced stores. warehouse 71 in systems reduction energy

Achieved.

team members. team

“2004 Social Responsibility Report Card” which was given to all all to given was which Card” Report Responsibility Social “2004

government and non-government agencies. Created dedicated dedicated Created agencies. non-government and government

engagement with our supply chain, industry partners and and partners industry chain, supply our with engagement

direct involvement in public discussion forums and consistent consistent and forums discussion public in involvement direct

Achieved.

Department of Environment. Environment. of Department

recycling initiative in Western in initiative recycling Australia the and Dulux with

consumption. Continued involvement with Paintback with involvement Continued consumption.

local newspapers promoting the beneﬁts of reducing plastic bag bag plastic reducing of beneﬁts the promoting newspapers local

nationally. and major to release media national a Distributed

2005, requiring suppliers to declare official documentation is documentation official policy declare to suppliers Purchasing requiring 2005, Products December in benchmark year Wood third the towards progressing and Timber non-essential Our all off closed. is switch store the when use power and standby light the to ambient levels lighting available systems adjust These automatically year. to next designed for are approved sites 32 with further sites 71 a at fitted been have systems efficiency Energy consumption. our reduce to opportunities of number a identifying stores, our in use water quantify to A programme Site” “Clean their implement to Council Beautiful

raised through the levy and donated to the Keep the to donated and levy the through raised Australia

reusable shopping bags sold. This year a further $43,700 was was $43,700 further a year This sold. bags shopping reusable

since inception in September 2003 and more than one million million one than more and 2003 September in inception since

More than 20 million bags were diverted from the waste stream stream waste the from diverted were bags million 20 than More

Achieved.

source through to ﬁnished product. ﬁnished to through source

product is sourced and also identify the supply chain from forest forest from chain supply the identify also and sourced is product

attesting to the legality of the forest operations from which the the which from operations forest the of legality the to attesting

2005 requiring suppliers to declare ofﬁcial documentation documentation ofﬁcial declare to suppliers requiring 2005

is progressing towards the third year benchmark in December December in benchmark year third the towards progressing is

Achieved.

Implemented a new racking safety audit system. audit safety racking new a Implemented

accreditation course and product weight and handling icons. handling and weight product and course accreditation

Implemented Implemented trafﬁc management plans, an on-line supplier safety

members, with training planned for next year. next for planned training with members,

Developed a pilot safety behaviour training module for team team for module training behaviour safety pilot a Developed

and New Zealand. Zealand. New and

leadership workshops for store management teams in Australia in teams management store for workshops leadership

Completed revised manual handling training and two-day safety safety two-day and training handling manual revised Completed

management structure. structure. management

Achieved.

Do-It-Yourselfbrochures.

reduction strategies to customers through store and web-based web-based and store through customers to strategies reduction

many of these community projects. Promoted energy and water water and energy Promoted projects. community these of many

team members continued to volunteer their own time to support support to time own their volunteer to continued members team

youth groups, support groups and service organisations.Our organisations.Our service and groups support groups, youth

and conducted Community Fun Community conducted and schools, local supporting Days

the National Tsunami National the $236,000 over raised that appeal Disaster

and in-kind support. Participated support. in-kind and including events, major in

Achieved.

(LTIs) 309. to year last 365 from cent per 18 reduced

by 19 per cent from 14.6 last year to 11.8. Lost Time Injuries Injuries Time Lost 11.8. to year last 14.6 from cent per 19 by Notachieved. ext n

ernal review of water consumption was conducted conducted was consumption water of review ernal

Promoted through presentations at seminars, seminars, at presentations through Promoted

Contributed over $2.6 million in direct donations donations direct in million $2.6 over Contributed

Continued commitment to 10 cent plastic bag levy. bag plastic cent 10 to commitment Continued

Implemented lighting controllers and standby standby and controllers lighting Implemented

Our Timber and Wood and Timber Our Purchasing Products policy

Implemented new region-based OHS and injury injury and OHS region-based new Implemented

Lost Time Injury Frequency Rate (LTIFR) Rate Frequency Injury Time Lost reduced

Social Responsibility Report 2005 Report Social Responsibility

TM paint paint 09 Bunnings 10 Bunnings 10. case audiovisual an developed we 2002, in accident forklift our to desire as learn Through much as from a possible tragic to delivered programme pilot members team for 492 safety • by attended training refresher and licence forklift • members; team 3,274 for inductions OHS new • manual• deliveredhandling training to 2,301 team members; management 338 by attended that training formats leadership and safety • material including: business, our of subject areas Hurt” hazard major of the Gets address variety “Nobody a objective through BSAFE the supports are business. that This our in courses activities hazardous training potentially a to external relevant and through internal behaviours of working variety safe on emphasis greater with training safety to commitment our continued Wehave SAFETY AND HEALTH an management a of programme. adoption “Waterwise” our seven support ran to operations teams, store management by risk and Corporation merchandising, our attended from Water representatives seminar, Australian awareness Western The responsibility. producer extended waste conferences and production storage, cleaner recovery, resource and goods and management dangerous as seminars such themes industry covering environmental attended base, knowledge specialists internal our improve To ENVIRONMENTAL of number a courses. having for operational and tested modules compliance safety, being with currently and continuing created been “Bunnings is the as Academy” known system Learning learning and on-line pilot A training conferences, networks. seminars, peer health, external occupational attending through our maintained was specialists of to environment and safety needed development culture professional and continued The our goals. leadership environmental and developing safety the our support and imbed training to in teams invest to continued We TRAINING pedestrians. and vehicles between speed conflict avoid and flow extra traffic and improve to introduced been have walkways parks car in humps management dedicated Traffic including operation. controls safe reinforce to controls monitoring speed with forklifts upgrading currently Weare field. support a the in and advice access for to resource able safety now specialist are dedicated stores OHS management, both culture. for injury roles and safety co-ordinator positive regional of a creation store influence With for directly to for training skills managers and knowledge leadership the provided safety teams management the of Completion safe behaviours. improve safety positive to encourage and work of improvements systems safety environmental and For Awareness engineering and implementing Safety objectives (BSAFE) Everyone Bunnings the achieving injury support in region- direct stores and and to (OHS) training implementing provide to safety our teams and were management focused health year we occupational which the based on during areas safety attention main two The product. chain finished supply to the through source forest identify from also and sourced is product the which from operations forest the of legality the to attesting Business management 268 team members. team 268 and operators; forklift members; team

Social Responsibility Report 2005 Report Social Responsibility any changes in regulations by subscribing to a number number a to other subscribing with by date or to regulations up in keep changes we legislation any compliance ongoing assist environmental To with requirements. environmental year during the non-compliance potential any of aware not are We ENVIRONMENTAL Compliance at operate that site. teams every warden emergency/fire store the of part as act to them equip to provider training national a by Bunnings- module a provided externally management emergency specific attended members team 394 year, the During EMERGENCY it making representatives accreditation. supplier completing on-line 1,695 with available accessible now easily is more course to The specific chemical and storage. handling hazards manual potential forklifts, inform as such the stores and our of practices partners to supply working our continued safe has acceptable suppliers for reinforce accreditation BSAFE The shift. their of end the at families return their to safely should home person every so workplace safe a of of providing duty importance the and the management of reinforced responsibilities care Director Managing the from accompanying The an letter event. the containing of address re-enactment home audiovisual their to mail-out personal received a manager location Every message. safety powerful and personal very a deliver to designed managers for study granting of an Enforceable Undertaking by the court. court. the 2002 in by incidents to relating Undertaking prosecutions other Enforceable three the The in an with closed of incident been now an has granting to store Mackay relating Health our at year, Work 2003 last Queensland reported from Standards notice prosecution The date. specified the by resolved were notices All Wales. South New Authority WorkCover from notice penalty $1,000 a to subject was and Wales South New in store our at North Erina occurred issue management asbestos The materials. asbestos-containing of management management, and goods of storage traffic dangerous house-keeping, from handling, manual safety, ranging forklift issues covering or authorities safety–related risk relevant from of notices 44 areas received We any address and identify non-compliance. to audits us internal and assist inspections hazard assessments, risk committees, safety externally-conducted as such Initiatives operate. we varies which in that regions the between legislation safety and health under operate We SAFETY AND HEALTH NPI. the under report to required not are we NPI therefore the and year under the during listed substances the of any use not do We (NPI) INVENTORY POLLUTANT NATIONAL appropriate. where standards internal toimproveour risk storage goods dangerous our review regularly and standard packaged dangerous goods. We see compliance as of a minimum codes industry practice for in and the retailers storage and of handling consumer- legislation applicable our with compliant are We share of and reviews regulations. public and environmental business forums group agencies through our government experiences the regulate with that dialogue open seek We engage. we services legal other and Office Solicitors Corporate the from received Zealand also are New legislation new of impact the on notes and Advice websites. Australian authorities’ federal and state from alerts news and Standards journals, professional of

(Above) Representatives from merchandising, store operations and risk management teams discuss the “Waterwise” programme. From left: Dennis Conchie, Geoff Godden, Max Viskovich (Western Australian Water Corporation) and Andrew Head. at our Caloundra store and 2003 at our Bundaberg store in Planning has been undertaken to further integrate existing Queensland, are still subject to ongoing legal proceedings. risk management polices into the BSAFE programme. The potential hazards associated with these incidents have The Senior Safety Leadership Team, represented by senior CSBP all been addressed. management from each functional area, continues to review Bunnings In August 2005 Queensland Work Health Standards issued strategic safety issues on a monthly basis. Safety standards a prosecution notice for failing to provide a safe system have been integrated within our merchandising functions of work, in relation to an October 2004 incident at our and store development plans with a safety review forming Compton Road store where a customer received an arm part of the internal planning process for new projects. injury from falling merchandise. We are developing an internal OHS incident record The WorkCover Authority New South Wales commenced an management system to further our ability to monitor and investigation into alleged safety breaches at our Ashfield report trends and issues across the business. store. The alleged breaches relate to a forklift collision with ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) storage racking. We are yet to receive formal advice as to the result of this investigation. We pleaded guilty in September As a result of the external environmental aspects and 2005 to a charge brought by WorkSafe Victoria for failing impacts audit conducted in June 2004 we now have a better to provide a safe system of work in relation to an incident understanding of our environmental risk profile. at our Waurn Ponds store where a truck driver received As primarily a retail business, not engaged in wide scale foot injuries from a forklift. We were fined $15,000 and no manufacturing or processing activities, our key impacts conviction was recorded. The potential hazards associated result from electricity and water consumption, waste with these incidents have all been addressed. reduction and recycling. These areas have become the focus of our environmental management efforts as they present LICENSING AND APPROVALS the largest opportunity to reduce the environmental impact We are not aware of any potential non-compliance of our sites. during the year with licensing or approval conditions or Other less significant environmental aspects such as other requirements, except as set out above under “Health consumer-packaged dangerous goods, spillage containment, and Safety”. small-scale paint brush washing and storm water quality Individual local government authority environmental are well managed through existing internal procedures. requirements are addressed at the development application These standards are maintained through updates and audits stage of each new site. communicated to all locations and will be integrated within Dangerous goods storage licences or storage notifications the BSAFE strategy in the next period. are in place where required by applicable legislation. We have reviewed the relevance of AS/NZS 14001 to our Where we are able to maintain storage limits below business and we will not be pursuing certification of an licensing cut-off levels we adhere to our internal risk EMS. We will continue to manage our environmental management programme based on NOHSC: 2017(2001) and performance as part of our overall OHS and sustainability AS/NZS 3833. framework, embedding the process in our daily operational procedures and routines. Management systems QUALITY SYSTEM INTEGRATED MANAGEMENT SYSTEM Our OHSE programmes are subject to a number of internal Integration of OHSE standards has been achieved across our and external quality assurance monitoring processes. business through the introduction of the BSAFE strategy. A multi-layered system of self-assessments and ongoing

11. Social Responsibility Report 2005 audit programmes ensures exceptions are remedied quickly. To ensure that each incident is fully investigated, all Minutes of safety committee meetings, injury registers and near-miss and non-LTI incidents are also reported to hazard inspection checklists are completed, reviewed and area managers and regional OHS coordinators and every actioned by the relevant health and safety coordinators and LTI referred to each member of the SSLT. complex, store or senior managers on a daily, weekly or With all senior management in Australia and New Zealand monthly basis as appropriate. completing the safety leadership programme it has been An internal OHSE audit of all operational sites is conducted extended to all store management teams, forming part of the annually to target potential high risk areas. Audit results standard training calendar. In the past year 338 managers are scrutinised by the relevant senior manager and also completed this training. the Senior Safety Leadership Team (SSLT) with actions and resources applied quickly to resolve issues and prevent The BSAFE manual, created as a central register for all recurrence. Management performance assessments and safety standards and procedures at stores, continues to store bonus payments remain closely linked to a benchmark evolve with the addition of new safe working procedures of 80 per cent compliance with these audits. and safety standards issued regularly. These modules assist We aim to continuously improve our performance in this team members in managing safety and each new module area by reviewing and updating the audit scope annually. is discussed at monthly safety committee meetings for With compliance levels well in excess of the 80 per cent promotion to team members through toolbox sessions that benchmark last year, the scope of the audit programme are signed off and subject to audit. was significantly upgraded to further lift performance. Both The BSAFE system also covers the safety of our customers, dangerous goods and safety aspects were integrated into a suppliers and contractors who undertake work at our sites. single audit scorecard with revised risk weighting applied All suppliers who work in stores must be BSAFE-accredited to higher risk areas. by having passed a safety induction programme and The new integrated audit criteria have influenced a drop in receiving a BSAFE badge that must be worn in stores. the overall compliance rating to 78 per cent (compared with 12 the dangerous goods and OHS combined average of 94.5 OTHER MANAGEMENT SYSTEMS per cent last year). Although we have achieved lower results Our BSAFE vision extends to providing a safe environment in our audit rankings, the increased scope of the audits for our customers, including products that are safe to use. has delivered a more comprehensive assessment and increased opportunities to further drive safety and We maintain a specific risk management system relating environmental improvements. to customer incidents and product safety matters with all reported incidents centrally logged and investigated to We have continued with our quarterly external audits on essential fire and life safety systems in stores and ensure appropriate action is taken. We manage any issues implemented independent racking integrity audits. that arise personally and directly with our customers in

Bunnings the first instance and where there is a need for further SAFETY MANAGEMENT SYSTEM (SMS) evaluation of any claim matters these are referred to Our BSAFE system was developed in 2003 and is continuing our insurers. to drive safety culture across our business. As part of our trading terms our suppliers warrant that the The OHS strategic plan defines 11 key areas, which are led product has been tested to any mandatory standards, is and driven by a multifunctional senior management group fit for purpose and provides instructions for safe use as that make up the Senior Safety Leadership Team (SSLT). appropriate, prior to going on range in one of our stores. This group meets each month to review progress of key In relation to directly imported product we ensure that areas against agreed targets, ensuring that appropriate actions are taken to address the issues. appropriate testing and evaluation has been undertaken by the overseas manufacturer and arrange independent testing To improve our ability to analyse OHSE incident trends to all mandatory Australian standards. and produce reports from aggregate injury data we are developing an internal risk management database. A revised We investigate all reported issues of alleged product incident reporting and accident investigation template has performance and work closely with our suppliers to address been developed to support the data capture which includes any opportunities for improvement that are identified. No recording of near-miss incidents, injury type and activity significant product performance or safety issues were identified involved as well as identifying root causes. in this reporting period that would necessitate a public recall.

(Left) The high proﬁle BSAFE (Bunnings Safety Awareness For Everyone) programme encourages positive safety behaviour. (Right) BSAFE-accredited electrical products supplier Corey Schumutter using a platform ladder to restock merchandise.

12. Social Responsibility Report 2005 (Left) Timber doors labelled with the Forest Stewardship Council (FSC) certiﬁcation (inset) which increases customer conﬁdence in product sourcing. (Right) Heavy goods are clearly marked to warn team members and customers that two people are required to move these products.

POLICY DUST We continue to stand by our BSAFE commitment through Wood dust is produced at most stores as a result of sawing for its simple and powerful vision statement “Nobody Gets customers who request cut-to-length timber. Power saws are Hurt”. Our aim is that no one is ever injured in our stores fitted with dust extractors and team members are required to 13 or elsewhere in our business operations. Our annual target wear supplied protective equipment during their operation. is a reduction of at least 50 per cent in our LTIFR, with an Safe operating procedures to address the infrequent cutting ultimate aim of zero LTIs. of medium density fibreboard (MDF) products have been We are developing an overarching Sustainability Policy in developed and are in place at all relevant sites as part of the place of the environmental policy referred to last year. This BSAFE programme. policy will be widely circulated throughout the business and posted on our website. The intent of the policy is to ODOUR encapsulate the broad inter-linked sustainability goal of our Odorous products such as manure, garden mixes and CSBP operations being: chemicals are sold in small consumer-sized sealed packages. Bunnings • socially acceptable; Odour from these storage areas is managed through • environmentally sound; and ventilation systems and close attention to housekeeping by removing or fixing broken or damaged packaging. • economically viable. This policy will provide linkages to all our existing safety, GREENHOUSE GAS EMISSIONS community and environmental strategies, establishing Decreases in our greenhouse gas emissions reported below a platform for our continued drive towards sustainable are largely as a result of improved measurement of recycling development in the future in these key areas: volumes, eco-efficiencies in the business to reduce electricity • efficiency in use of energy, water and services; consumption and reduced landfill waste at our sites. • procuring products from suppliers who operate Our greenhouse gas emissions were estimated to be 158,135 sustainably; tonnes of carbon dioxide equivalent, down 6.8 per cent on • assisting customers to make sustainable product choices; last year, and this equates to 3.8 tonnes of carbon dioxide equivalent per hundred thousand dollars of sales, down 16 • reducing unnecessary product packaging; and per cent on last year. • adhering to the “3R” principles of waste management The only other source of greenhouse gas emissions that we (Reduce, Reuse, Recycle). have not included is waste disposed off-site from our WA To better engage and communicate our sustainability Salvage business in Western Australia. objectives to our teams we have developed a colour The greenhouse gas emissions were largely due to electricity magazine-style extract “2004 Social Responsibility Report consumption at our stores, distribution centres and support Card”. This report card was issued to all team members, centres (approximately 78 per cent) and waste disposed off- highlighting our OHSE performance and inviting feedback site (approximately 16 per cent). on what we can do better. Editorials in our “Bunnings Banter” magazine have also been used as a tool to keep our Although we are unable to calculate the indirect emissions team members informed of our sustainability goals. associated with the third party transport of stock into our stores and distribution centres, we recognise the need for efficiencies within our supply chain logistics. We have Environmental undertaken a detailed review of our supply chain and have implemented a Centralised Return Centre model to process AIR (ATMOSPHERIC EMISSIONS) all store-based returns for suppliers from a single location. Previous air quality assessments have been undertaken We have also made improvements in our own imported stock by external consultants at a cross section of our locations, supply chain and we are testing a model for the cross-docking including a large warehouse store, a smaller format store of deliveries of applicable stock from suppliers into our stores. and a large distribution centre. These tests have indicated The commercial benefits derived from reduced transport costs extremely low levels of volatile organic compounds, dust suggest that a reduction in the amount of indirect emissions and particulates and carbon monoxide emissions that are created by heavy vehicles involved in stock transfers should substantially below NOHSC workplace exposure standards. be an outcome of these programmes.

13. Social Responsibility Report 2005 NOISE Our store developments adhere to local requirements for: Environmental impact studies are submitted to local • wash-down sumps or separation units for capture of authorities as required when a warehouse store hydrocarbon run-off; development is undertaken. Previous assessments that have • draining of bin wash-down areas; and been undertaken do not rate noise issues as a significant environmental aspect. • café grease traps to filter contaminants before drainage to sewer. Our complex managers work with neighbouring residents to adjust noise levels relating to traffic management and Waste management contractors collected the captured volume of our public address system whenever this becomes hydrocarbons and grease. a local issue. Mechanical paint mixing machines are in place at all locations, minimising the use of manual stirrers and OTHER EMISSIONS rinsing water. We are not aware of any emissions of ozone-depleting A minimal amount of water-based paint rinsing water is still substances. produced by cleaning paintbrushes and stirrers. An analysis Waste of this liquid has proven it to be non-hazardous for reuse in garden beds with the suspended solids filtered out and SOLID WASTE disposed of in general waste. Solid waste during the year consisted primarily of cardboard Clean up and disposal of leaking packages of chemicals and plastic shrink wrap material that is collected on-site products is handled in accordance with our hazardous for recycling, as well as other plastics, steel and wood from waste disposal procedures where it is contained for removal damaged products and packaging and organic waste from to an approved disposal facility. food preparation and plant products. RECYCLING INITIATIVES Our total solid general waste stream during the year was estimated to be 283,923 cubic metres, up six per cent on In partnership with major recyclers Amcor and Visy 14 last year. Of this amount, we estimated that 15 per cent Australia all major sites have cardboard recycling systems was recycled and 85 per cent was disposed of as landfill, with approximately 50 per cent of sites also recycling plastic compared to six per cent recycled and 94 per cent landfill shrink wrap. in the 2004 estimate. In conjunction with Visy Recycling we have undertaken a Total solid waste disposed of to landfill per hundred review of existing recycling arrangements in Queensland, thousand dollars of sales was estimated to be 5.9 cubic made improvements to collection facilities at stores and metres, down 10 per cent on last year. conducted management awareness training. It is expected that improved volumes of cardboard and plastics will be The above figures do not include our WA Salvage business recovered through the revised arrangements.

Bunnings in Western Australia. This review of recycling will be applied to other regions LIQUID WASTE over the next year to ensure our efforts to recycle Liquid waste is produced from food preparation in cafes, are optimised. drainage from bin storage areas, infrequent wash downs We continued our support of the Paintback™ paint recycling of small hire equipment and rinsing water-based paint programme and after two successful trials in Victoria brushes. Due to the small volumes and ad hoc nature of we are now involved in a Western Australian-based these activities we are not able to measure the total quantity trial in conjunction with Dulux and the Department of of liquid waste we produced during the year. Environment. This model is utilising the Mindarie Regional Our waste disposal guidelines do not permit any liquid Council landﬁll facility as a free drop-off point for waste waste to be discharged to storm water. paint that will then be recovered and reprocessed by Dulux

(Below) Patrick Pele wraps a pallet in plastic shrink wrap for despatch at the Lyndhurst Distribution Centre in Victoria.

14. Social Responsibility Report 2005 (Above) Forklift adaptors such as this are used by Justin Eadie at the Lyndhurst Distribution Centre, allow a stack of products to be safely lifted and transferred. into a quality recycled fence ﬁnish product that we will Fuel sell through warehouse stores in the northern metropolitan Petrol, diesel and LPG accounted for 23 per cent of our total area. Further development of a sustainable paint recycling energy consumption by gigajoule. Our petrol, diesel and model is being progressed by EcoRecycle Victoria and we LPG consumption was estimated to be 1,011 kilolitres, 612 15 are continuing to work with our programme partners in that kilolitres and 2,774 kilolitres, respectively. state to extend the Paintback™ concept. We have implemented recycling of our used information Electricity technology and computer equipment by donating it the Electricity accounted for 73 per cent of our total energy Young Mens Christian Association schools project that consumption by gigajoule. Our electricity consumption was provides work experience projects for students. Upon estimated to be 116,350,625 kilowatt hours. commencement of our Centralised Return Centre all used Natural Gas

information technology assets will be back-loaded from CSBP Natural gas accounted for four per cent of our total energy

stores to the facility in Melbourne. This will increase our Bunnings capacity to recover old equipment nationwide where it can consumption by gigajoule. Our natural gas consumption be consolidated for recycling. was estimated to be 21,823 gigajoules. Our warehouse store in Dural in New South Wales took part WATER CONSUMPTION in a three month “Ewaste” trial with the Hornsby Shire Council that involved the store acting as a drop-off facility for an Water use during the year related primarily to nursery “Ewaste” bin. Our store encouraged customers to bring their irrigation systems and kitchen/washroom facilities. The old computer equipment back to the store to be recycled. decreases reported are largely as a result of improved We have also implemented a recycling programme for our consumption measurement with some minor influence from company mobile phones with all units now being returned our “Waterwise” programme that commenced in early 2005 to a recycler that supports charity organisations. as detailed in the case study on page 21. We remain a signatory to the National Packaging Covenant Total water consumption was estimated to be 688 megalitres, and continue to progress our action plan strategies. down 19 per cent on last year. Our total water consumption per hundred thousand dollars Land of sales was estimated to be 17 kilolitres, down 25 per cent FLORA AND FAUNA on last year. In Queensland we have engaged in red imported fire ant This is the first year we have been able to consolidate our (RIFA) compliance programmes to support the Queensland water usage accounts across the entire store network resulting Department of Primary Industries’ efforts to control this in more accurate consumption data than previous years. pest. In Victoria, RIFA agreements are also in place with Our water source is primarily scheme water. We are unable the Department of Natural Resources and Environment to to measure the quantity of ground water used by a small ensure all Queensland plant material is clear of infestation number of sites to reticulate landscape garden areas or the before reaching our stores. volume of water recycled onto landscape gardens. We manage our ranging of plant species in conjunction with our suppliers to ensure that noxious or declared weeds are Scheme water irrigation systems for the plant nursery areas not introduced into stores that are in prohibited zones. are controlled through an automated pre-set timer system. Where specific restrictions apply to nurseries, we have Resource usage implemented additional procedures to ensure we minimise water use and comply with regulations. ENERGY Energy use during the year related primarily to electricity REUSE AND RECYCLING consumption at our stores and vehicle fuel use. Five sites (Mile End in South Australia, Cannington and Total energy consumption was estimated to be 570,224 Morley in Western Australia, Minchinbury in New South gigajoules, up 9 per cent on last year. Wales and Mackay in Queensland) reuse storm water run- Our total energy consumption per hundred thousand dollars off from the nursery to water landscape gardens or recycle of sales was estimated to be 13.9 gigajoules, up one per cent back through the irrigation system. Opportunities to expand on last year. Energy sources are detailed below. water reuse are being explored.

15. Social Responsibility Report 2005 Figure: 1 Figure: 2

LOST TIME INJURY FREQUENCY RATE* NUMBER OF WORKERS COMPENSATION CLAIMS

1 July 00 - 30 June 05 (as at 30 September 05) *Contractor hours and LTIs not included

18.3 1,176 1,161

14.6 1,061 860 8.4 11.8 503 5.9

01 02 03 04 05 01 02 03 04 05

DISCHARGES TO SURFACE AND GROUNDWATER Hazard and risk We conform to all local council requirements for car park, PROGRAMMES nursery and storm water drainage. The BSAFE safety leadership training programme has now We have procedures in place at stores to minimise the risk been completed by all management teams at store level 16 of accidental release of nutrient run-off or leaking chemicals and has become part of the standard training calendar. into the storm water system. Reminders on correct storage With a strong emphasis on safety behaviour and leadership of bulk fertilisers and soils are sent to stores to maintain commitment to safety, this two-day course is establishing focus on this area. the stronger safety culture we have been pursuing. We have continued to review and update safe work procedures in consultation with our team members and Safety and health have developed nine new procedures for potential hazards including working at heights, electrical safety, tagging Bunnings LOST TIME and isolation, safe cutting of MDF, chemical spillages and Our Lost Time Injury Frequency Rate (LTIFR) was 11.8 emergency preparedness. (compared with 14.6 last year) see Figure 1, and during The product weight and handling icon-marking system for the year, there were 309 LTIs. Due to a transcription error bagged or boxed product weighing 20 kilograms or heavier the LTI number for 2004 has been corrected from 347 to now has a high profile on our packaged goods. This system 365. Our Average Time Lost Rate (ATLR), which provides aims to reduce workplace injuries by raising awareness a measure of the severity of such injuries, was previously of safe handling and storage of these heavy products in reported in 2004 as 75.7 days lost per million hours worked. conjunction with warning stickers reminding of the need This year our method of reporting ATLR is based on the for two-person lifts with certain bulky goods. average number of actual days lost due to an LTI which was Traffic management plans have been completed in all 4.97 (compared with 4.38 last year). sites through the installation of speed humps, pedestrian Our continued focus on this area is delivering a reduction walkways and exclusion zones. in LTIs, with the greatest improvement being a 43 per cent reduction in Victoria. We believe that an overall LTIFR EMERGENCY RESPONSE reduction of 22 per cent was attributable to the continued Contingency plans are in place to address major accidents implementation of our BSAFE strategy. This strategy is or security breaches. expected to deliver a sustainable improvement in all Emergency response guidelines for a range of chemical injuries statistics as its implementation continues. These spillages are in place and are accessible at every location. statistics do not include contractor hours and injuries. As We endeavour to have an adequate number of our team noted elsewhere in this report, all suppliers who undertake members trained in first aid to ensure that someone is available work in stores must be BSAFE-accredited by having passed to assist at any time in each of our stores. We conduct audits a safety induction programme. As we have very few full- to test whether adequate first aiders are available and more time contractors we do not believe that contractor hours team members are trained where required. and injuries would materially affect our LTIFR. We use the services of trauma counselling professionals to All lost time injuries are reported to senior management support any team member or customer involved in a serious within 24 hours. Safety statistics are distributed and incident at one of our stores. discussed by management and location safety committees We completed a revision of store emergency management each month and, in addition, each month our Managing plans including the conduct of annual fire drill exercises. Director chairs a Senior Safety Leadership Team meeting This has now been implemented at all stores as part of the where LTIs are reviewed. These statistics are reported at all BSAFE Manual. These standard procedures are designed Board meetings. to provide structure and ongoing training to improve our WORKERS COMPENSATION capacity to manage a serious event that may have an impact There were 1,161 workers compensation claims reported, on our business, our team members and the community. relating to occurrences during the year, compared with Emergency warden training courses facilitated by external 1,176 last year (see Figure 2). training providers were attended by 394 team members.

16. Social Responsibility Report 2005 MATERIALS HANDLING AND STORAGE Our Lyndhurst distribution centre in Victoria has been Materials handling involves the unloading of deliveries recognised as having best practice safety systems to manage and the moving and stacking of palletised merchandise the high volumes of semi-trailers docking and unloading onto shelves or high-rise storage areas at our stores and goods. A “dock lock system” using hydraulic trailer anchors distribution centres. and signal lights holds trailers firm to prevent any movement A variety of material handling devices are provided to during unloading and the automatic dock-levelling ramp ensure this takes place safely and efficiently, including adjusts to ensure the safest access into the trailer for forklifts. specially designed trolleys for customers to move heavy Portable extraction fans are also used to blow fresh air into bagged product, long lengths of timber or plants safely the cargo containers during unloading. around our stores. The step-through design of our check- To achieve safety and efficiency in dispatching goods to out counters and cordless hand-held scanners at all points stores the distribution centre uses a slip-sheet device of sale allow cashiers to scan heavy items in the trolley and attached to the forklift. This allows a stack of product to avoid manual handling. be safely lifted from one pallet and transferred without the The rollout of electric pallet jacks has been accomplished need for lifting and carrying. All pallets are shrink-wrapped for all warehouse sites which greatly reduces the amount of before dispatch using an automatic machine that rotates exertion required to shift pallets on the floor compared to the pallet whilst applying a tight film of wrap, binding the manual pallet jacks. product firmly to the base of the pallet. A comprehensive traffic management plan incorporating designated unloading bays, forklift curfew and exclusion RISK ASSESSMENT zones, signage and pedestrian line marking has been A risk assessment was undertaken of our high-rise racking designed for each of our stores to safely manage the and storage standards to ensure that the highest possible movement of trucks, forklifts and pedestrians in our yards degree of safety applies in this area at all times. Outcomes and drive-through areas. Implementation of these traffic implemented from this review include introduction of management plans is now completed. A new flexible bollard independent engineering assessments of racking every six walkway system is currently being piloted at three sites 17 months, upgrading of training in the use and maintenance to further improve the safety for pedestrians and vehicle of racking systems for our teams and maintenance and movements in our drive-through areas. safety inspection record systems. In support of safe forklift driving behaviours we are currently installing speed-monitoring alarms on forklifts. External and internal risk assessments are used to assist This system alerts the operators when they are approaching in determining appropriate action to address potential the speed limit and activates an audible alarm if the limit hazards. Assessments may be undertaken when a new is exceeded. potential hazard is identified in the business, such as a new

product on range, or as part of an accident investigation or CSBP “The step-through design of our check-out recognised change in an existing potential hazard. Bunnings These assessments are a valuable tool in assisting us to target counters and cordless hand-held scanners at all efforts on higher-risk areas and implement commercially points of sale allow cashiers to scan heavy items sound, practical solutions that are relevant to the level in the trolley and avoid manual handling.” of risk.

(Left) Upgraded signage, road marking and speed humps, like these at the Nunawading store in Victoria have been introduced to improve safety. (Right) Ross Patterson using an electric pallet jack, designed to reduce manual handling exertion, at Botany in New Zealand.

17. Social Responsibility Report 2005 (Above) Team members from the Bunnings Warehouse at Mt Maunganui in New Zealand helping to rebuild the interior of an elderly resident’s home damaged by ﬂoods in the Tauranga Region.

Other documented assessments conducted in the last year With the size of our store network it is a challenge for us include asbestos management, acid storage and handling, to ensure we closely engage with all those who take an and LPG decanting. interest in our business. We do this through stores getting 18 Of the nine Australian sites mentioned last year believed involved in the local community through our store-based to have contained asbestos, eight external risk assessments community involvement programme and engaging at a were completed with one further site due for completion regional and national level with major stakeholders. in August 2005. Of the eight New Zealand sites mentioned, FEEDBACK/COMPLAINTS one has been closed and inspections have been carried We provide a feedback tool at every location through “How out at the remaining seven. A model for improved site- Did We Do?” cards, promoted at the front of the store. specific management plans is being developed to improve maintenance and emergency procedures at all locations A recording and reporting system ensures that every that contain asbestos. comment is forwarded to our executive team for reply Bunnings if requested. EMPLOYEE WELLBEING We have further enhanced this feedback system through The wellbeing and personal fitness of our team members is the upgrade of our website providing customers the ability integral to their health and safety in the workplace and their to give feedback on-line or contact us directly. We received ability to perform at their best. a total of 14,745 customer responses with comments being We continued our commitment to our team’s personal 70 per cent positive and 30 per cent negative. wellbeing through the following programmes: Through our subscription to an independent customer • smoke-free workplace policy with “Quit” smoking complaint website we are also able to receive alerts when workshops for team members; any comments are posted that relate to our business. • annual influenza injections offered to every team member; We continue to receive letters of thanks and appreciation • subsidised yoga and circuit training programmes for our from customers, communities, government agencies support centre teams in Perth and Melbourne; and and non-government organisations. We also receive letters requesting assistance or a response to various • nutrition, relaxation massage and self defence classes community or environmental issues. We respond to all of held at our store support centre in Queensland. these in a direct and timely way to encourage open lines Bicycles are also provided at our Melbourne support centre of communication. for our teams to use during their breaks. Any customer complaints made on our website or in-store Our commitment to providing a positive work environment are personally followed up by the complex or store manager by ensuring that it is free from all forms of inappropriate or a senior manager as required. We received 110 written discrimination or behaviour has been supported with the complaints from customers relating to alleged product implementation of an anonymous reporting hotline. performance or damage to property. We personally engage Designed to encourage reporting of any illegal, unethical our customers in an attempt to resolve any dissatisfaction or unsafe behaviour the programme known as “Bhonest” is and, where this is not possible, claims are lodged with our managed independently by external consultants. insurers. During the year, 21 such claims were lodged. LIAISON WITH AUTHORITIES We remain proactive in engaging and establishing open Community working relationships with authorities that regulate our STAKEHOLDERS business and the non-government organisations that take an interest in our operations. Our stakeholders include our team members, our customers, our suppliers and other contractors, relevant government Good working relationships have continued during the agencies, the local communities in which we operate, and year with environmental protection and waste management shareholders in our parent company, Wesfarmers Limited. agencies. We have worked closely with the DoE in support ™ Our philosophy is to proactively establish open dialogue of the Paintback programme. with our stakeholder group and encourage feedback and To share our sustainability vision we have taken part in comment as to our performance. presentations at the City of Sydney “Plastic Bag Free” round

18. Social Responsibility Report 2005 table in NSW, the WA Waste Management Conference, a Curtin University Cleaner Production seminar, an Australian Conservation Foundation discussion group on extended “We demonstrate our strong commitment to producer responsibility and the official launch of the the communities in which we operate through Western Australian Paintback™ programme. We have found a Community Involvement Strategy focusing on this to be a very positive experience, encouraging ongoing meaningful dialogue with a large cross section of our local, regional and national organisations.” stakeholders. To support the Commonwealth Department of Heritage and the Environment’s stance on reducing single-use plastic shopping bags we have continued to heavily promote alternatives to plastic at all stores. Since • household heating, cooling and lighting; the programme commenced in September 2003 we have • reducing water use in the kitchen, laundry and reduced the number of bags used by our customers by more than 20 million and sold over one million reusable bags. bathroom; The funds raised by our 10 cent plastic bag levy have • home security; and contributed more than $147,000 to the Keep Australia • child safety in the homAll of these information pages Beautiful Council directly supporting growth of their provide links to energy and water efficient products, safety industry award–winning “Clean Site” programme into a and security devices that are available in our stores. national scheme. This programme is aimed at the DIY (Do- An enhanced community page link on our website also It-Yourself) builder and building trades to encourage good contains information about our community support water, waste and litter management at building sites. programmes, major charity sponsorships and environmental initiatives. ACTION GROUPS Since the relaunch of the website almost 1.9 million hits We continued an open dialogue with interested parties in the 19 ongoing implementation of our Timber and Wood Products have been recorded including over 43,000 hits on our “In Purchasing policy, including the Greenpeace organisation The Community” section. regarding forest practices in the Asia-Pacific region. COMMUNITY SUPPORT To support the development of the Greenpeace Good We demonstrate our strong commitment to the Wood Guide 2005, we took part in a survey and provided communities in which we operate through a Community to the best of our ability an extensive list of products for inclusion in the guide that are either Forest Stewardship Involvement Strategy focusing on local, regional and national organisations. Council-certified, verified plantation products or made from CSBP

recycled timber. During the year, we helped raise funds and contributed Bunnings more than $2.6 million to various charities and community Communication groups throughout Australia.

NEWSLETTERS AND REPORTS A wide variety of internal communication tools were used (Below) Felicia Booth accepts a customer’s donation during to ensure that safety and the environment remained front- the national sausage sizzle which raised over $236,000 for of-mind workplace issues. victims of the tsunami disaster. We produce a weekly human resources bulletin that is used to circulate safety, hazard and environmental information to all locations. We have continued to develop the new format of our in- house magazine, “Bunnings Banter”, to showcase each store’s activity in relation to community and environmental programmes. Personal messages from our Managing Director and General Managers promoting safety and community support feature regularly in this magazine. To better engage and communicate our sustainability objectives to our teams we have developed a speciﬁc colour magazine-style extract titled “2004 Social Responsibility Report Card”. This report card was made available to all team members, highlighting our OHSE performance and inviting feedback. This report card will be an ongoing format for keeping our team up to date with our sustainability objectives.

WEBSITE Our website (www.bunnings.com.au) has undergone signiﬁcant enhancements. Relaunched in October 2004 the website now provides us with an effective tool to engage our customers on improving safety and security and reducing environmental impact through sustainable living and product choices. As a home page feature we have developed detailed information on saving energy and reducing water use around the home and links to speciﬁc project pages providing information on:

19. Social Responsibility Report 2005 20

(Above) Face painting is one of several free family activities provided in stores on community fun days.

At a local level we support many community groups active • providing expert advice or hands-on support to assist in health, youth development, the environment, education community groups with DIY projects; and community welfare. One way we do this is through our • allowing local community groups to operate weekend Community Fun Day programme where various community fundraising sausage sizzles;

Bunnings groups, youth groups and service organisations are invited • acting as collection points and fundraising for various to hold information displays and conduct activities at one of charities and community groups; our warehouse stores. • personally taking part in charitable events and blood The organisations are able to undertake their own drives for the Red Cross; and fundraising with our stores providing a variety of free • sponsoring local children’s sporting teams. family activities such as face painting, jumpy castles, clowns Our team members have donated their own time and skills and petting zoos. At the completion of the day donation to actively take part in supporting many community projects cheques for $1,000 are drawn and presented to five lucky such as: organisations represented. • Clean Up Australia day; National programmes of which we are major sponsors • conducting workshops for special needs children and include the “Bluey Day” (fundraiser for childhood cancer seniors groups; research), the Salvation Army Red Shield Appeal and Anglicare Angels. • painting rooms at children’s hospitals and community buildings; At a state level we also support various children’s hospital • building flower beds and vegetable gardens at primary appeals. We also conduct fundraising appeals where we schools; source, purchase and sell selected merchandise in our stores, donating all the proceeds to charity. Such appeals • doing makeovers of community facilities; and were held for the Alfred Hospital in Victoria and The • performing backyard or room makeovers for needy Shepherd Centre for deaf and hearing-impaired children in members of the community. New South Wales. Our team members at Mount Maunganui in New Zealand For the second year running we joined our suppliers Dulux demonstrated their community commitment by assisting in a Bushfire Fundraising programme donating five dollars the relief effort for the recent flooding in the Tauranga region. With materials donated by the store, team members from every can of Dulux 101 and Weathershield paint raising volunteered their time to completely rebuild the interior over $200,000 to support training of volunteer fire fighters. of an elderly resident’s home that had been severely On 16 January 2005 we held a national sausage sizzle fund flood damaged. raising event for CARE Australia’s Southern Asia Appeal. On At each of our warehouse stores free DIY clinics are offered this day 174 of our stores across Australia joined forces to to adults and children. In addition, specially coordinated host Australia’s biggest sausage sizzle with $236,616 raised “Ladies Nights” are conducted to introduce women to a to help survivors of the devastating tsunami in South East range of DIY projects. Asia rebuild their lives. Team members donated their time Children’s workshops are also conducted at schools, to run the sausage sizzle and we also donated sausages, community centres and major community event. bread and buns. Each of our warehouse stores has a dedicated activity At our warehouse stores there is a strong local community organiser with the role of managing store activities and focus with team members personally supporting their local local community involvement together with a budget and community in many ways, including: management reporting process.

20. Social Responsibility Report 2005 (Above) The new water-efficient sprinkler reticulation system at the Case Study Balcatta warehouse nursery in Western Australia. 21 We are a high user of scheme water with a 2005 estimated during the national water use assessment will be evaluated total annual consumption of 688 megalitres in Australia for application to new stores and upgrades. and New Zealand. In December 2004 we commenced a In June 2005 we completed a national rollout of a waterless “Waterwise” programme to reassess how we currently urinal system and dual flush conv ersion units to reduce manage water and better understand the business issues. water use and discharge into sewerage systems. The k ey strategies of the programme are: The annual water sav ed through 164 waterless urinals is • data collection and usage comparisons to identify gross estimated to be 5 2 megalitres, equal to about 431 domestic- CSBP leakage or wastage; sized swimming pools. The replacement of 115 single flush Bunnings • inv estigating storm water recovery options; toilets should reduce toilet water use by 40 per cent. • installation of water saving devices for existing appliances We hav e also work ed with the Western Australian Water and reticulation systems; and Corporation in their water achiev er programme. Other ongoing activities include: • promoting “Waterwise” concepts to our customers through in-store displays and team member awareness. • evaluating water storage tank options for future dev elopment sites to reclaim and reuse storm water; In February 2005 we engaged a consultant to undertak e water audits at 11 sites across Australia and to advise on • desi gnin g a merchandisin g model to establish w orkin g rain reduction strategies. tank displays in stores to promote rain water reclaimation; We are in the early stages of this programme, but significant • activ ely promoting “Waterwise” devices and plants in our improv ements hav e been implemented. store displays and catalogues; In May 2005 a new design water-efficient reticulation • introducing water conservation themes in our free DIY system was installed at our Balcatta warehouse in Western clinics and on our website; and Australia. The performance of this system and data gathered • extending water audits to more warehouse stores.

Priorities for the future

Improve safety performance by at least halving our LTIFR each year and substantially reducing non-LTIs.

Continue to drive greater efﬁciencies in our use of energy, water and services and recycling and recovery of waste.

Continue to drive the BSAFE programme and safety culture at team member level on the shop ﬂoor to strengthen safe acts and behaviours.

Work with our suppliers to develop sustainability of supply chains and sustainable product choices for our customers.

Provide our customers with access to information about environmentally friendly products and projects that can support sustainable living.

Maintain our contributions to improve the social wellbeing of the communities in which we operate.

21. Social Responsibility Report 2005 22.

Curragh

We operate the Curragh open cut mine near Blackwater, 200 kilometres west of Rockhampton in Queensland’s Bowen Basin which produces high quality coking coal exported to steel makers and steaming coal supplied for domestic power generation.

Sales of seven million tonnes were above the previous year. Production from the Curragh North mine began in March 2005. We employ about 300 people. www.curraghcoal.com.au

(Above) Occupational Therapist Janet Cawte explains correct seating posture to Dragline Operator John Graham. Developourownconfinedspacetrainingprogramme. Helpestablishamulti-disciplinarycommunityhealth Continuetopromotehealthandsafetyawarenessour Introduceanewsafetycultureprogramme. AchievezeroLTIs. Fully integratetheenvironmentalmanagementof Allhydrocarbonstoragefacilitiesbroughtupto Implementation of an Environmental Management System. diesel storage tank however we have not commenced commenced not have on-site. we planned facilities new the of however construction tank megalitre has two storage Work existing diesel our facilities. of assessment these on upgrade commenced to implemented our and and developed was standards strategy action An relevant authority. with environmental identified compliant previously being not were as facilities hydrocarbon On-site this of year. progress next work accelerate to directed being are resources and significant completed policies partially been has of and procedures review A EMS. developing our of improvement and continuous the to need maintain audit identified An external improve and new to across operations. timelines old management environmental and standardise responsibilities required activities. nominates North tasks, which developed Curragh an was our plan to and action An systems incidents existing our application of the environmental in challenges indicated minor have audit external of number A of upgrades Environmental progressing facilities. hydrocarbon and an (EMS) System implementing Management and developing mine, our at Curragh existing at our those activities with mine of North Curragh new integration year and the management during the attention were our focused we which on areas environmental main the three challenge, this with In dealing the or community. environment Blackwater the local on impact adverse any minimises that way sustainable a in mines our of operation safe the is basis on an ongoing our business facing challenge main The Overview priorities Report Curragh Northintooursystems. current requirements. centre inBlackwater. employees andthecommunity.

Not achieved. their families. homes. SeniorFirstAidcourseconductedforemployeesand Achieved. 12 months. and permanentcontractorswillattendtrainingoverthenext Phase 2ofthe“ZIP”safetycultureprogramme.Ouremployees Achieved. of2.9. Frequency Rate Not achieved. is requiredpriortofullimplementation. as Permit toDisturbprocedures.Additionalsystemdevelopment Not achieved. Upgrade projectswillcommencenextyear. been budgetedtoupgrade12facilitiestherelevantstandard. Not achieved. will continuenextyear. development oftheentiresystemisrequired.Implementation Management Systemhavebeenimplementedbutfurther achieved. Partially Not achieved. grant isapproved. however constructioncannotcommenceuntilagovernment Money hasalsobeenallocatedforthecommunityhealthcentre, families. ThephysiotherapistcommencedinAugust 2004. physiotherapy practiceinthetownforemployeesandtheir Outcomes these teams to be introduced to a crisis scenario and to skills. decision- to and making and communication scenario management, crisis a crisis to practise groups, introduced advisors be to teams of media members these new community allowed members, exercise The advisors. family legal and services, services, counselling emergency government media, agencies, as such stakeholders, key of variety of a with deployment interaction and the (ERT), Team Response (CMT), Emergency the Team Management of Crisis establishment the the emergency/crisis and required exercise safety The of preparedness. standards highest commitment the our and to to central training was of and series activities a of The preparatory crisis culmination procedures. our the of was response exercise aspects emergency all and test Black to management (“Exercise conducted exercise was mock Drop”) full a 2005, June 15 On mine. North Curragh the at working our for personnel with response has emergency to provide onsite ambulance arrived new A partnership procedures. hand-in- site work existing with strong inductions hand their that a ensure to contractors developed have and We mine North Curragh the management. our crisis at focused activities we to which procedures safety on existing our applying were year areas the during safety attention main two The 2005. of half second budgeted $4 than More Monthly “Healthwise”magazinesenttoemployees’ Our managementteamhascompletedPhase1and with work to commence on some projects in the the in projects some on commence to work with Theﬁrstpartofthisprojectwastosupporta Somesystemshavebeenappliedtobothsitessuch Thishasnotbeenstartedduetootherpriorities. Four LostTimeInjurieswithaInjury Capital expenditureofmorethan$4millionhas million of capital expenditure has been been has expenditure capital of million Some aspectsoftheEnvironmental 23 .

Social Responsibility Report 2005 Report Social Responsibility

23 Curragh Training courses for our new Permit to Work Officers were Business management held in June 2005 with 49 attending. The training course, Training conducted by an external provider, was designed specifically for us and focused on working in confined spaces, concealed ENVIRONMENTAL services, project isolation, access to high voltage conductors and welding and cutting in hazardous locations. Following completion of our new environmental induction video in the previous reporting period, efforts were directed EMERGENCY towards ongoing training of our existing workforce. Delivery As described in the Overview, Exercise Black Drop was of this training was primarily through toolbox presentations conducted to test all aspects of our crisis management and with specific topics covered. Topics presented included emergency response procedures. This exercise was designed water management, disturbance to land, the Ornamental to build on exercises conducted in previous years and to Snake and Squatter Pigeon (both endangered and native to complement training held in May for members of the Crisis our operational area) and weed management. We consider Management Team (CMT) and their alternates. This training training to be an important part of raising workforce included crisis definition, the characteristics and principles awareness of on-site environmental issues as well as an of crisis management, our Crisis Management Plan and opportunity to interact with the workforce. crisis management techniques. A ‘war game’ was also held to give participants hands-on techniques to manage a crisis HEALTH AND SAFETY on-site. The CMT also participated in both theoretical and A Five Year Refresher Training programme continued during practical media training. the year. Topics covered included our Safety Management A seven-member team competed in the Townsville Mine System (SMS), positive and effective isolation, fire safety Rescue Challenge in August 2004. and use of extinguishers, mine traffic rules, basic first aid/resuscitation, heat stress, manual handling, working at Compliance 24 heights and Fitness for Duty (drugs, alcohol and fatigue). ENVIRONMENTAL The programme was attended by 20 employees. We are not aware of any potential non-compliance during the Personnel who are required to work in confined spaces year with environmental legislation or other environmental must have a current qualification. Confined space training requirements, except as set out below. courses and re-certification courses are conducted during • Contaminated water and solids were transported less than the year as required. Re-certification is required every 15 metres off-site due to a failure in one of our tailings 18 months. Sixty employees attended the re-certification lines. The incident was reported to the Environmental courses and 24 employees completed the full course. Protection Agency (EPA) and the area affected was cleaned up as soon as practicable given the nature of Curragh Courses covering risk management, accident investigation the material. and communications were conducted for employees • Ponded stormwater was released along the Curragh North requiring supervisory skills and 25 attended this training. Central Access Road without prior quality assessment A two-day Senior First Aid course, conducted by St John following a rainfall event. Minor volumes of sediment Ambulance, was attended by seven employees and 12 were transported off-site, but no significant environmental family members. impact was experienced.

(Left) Kelvin Page controlling water movement between retention dams. (Right) Senior Engineer Projects Mac Adlam monitoring noise and vibration generated from mine blasts.

24. Social Responsibility Report 2005 Everyone attending site induction and all those completing CBMs are drug-tested. Random drug testing is carried out “All our substance emissions for last year were via a computer-generated list. Ten tests per nominated shift are conducted with the shifts being selected by the ranked by the NPI as ‘low’.” Executive General Manager. The total number of tests carried out during the year at site inductions was 2,040, with 45 positive tests recorded. A total of 252 random drug tests were conducted and 11 were positive. Other minor non-compliances were identified associated with noise, vibration and dust impacts on the areas Those people returning positive results to either alcohol surrounding our operations. or drugs screening were subject to disciplinary procedures which range from counselling to, ultimately, dismissal Noise and vibration issues were identified following an as provided by our Safety Management System. Special external environmental audit which showed we had projects, such as shutdowns, may have additional alcohol exceeded allowable limits under our Environmental and drug screening. Authority. This is covered in more detail under “Noise” later in this report. LICENSING AND APPROVALS High dust fallout levels were also noted in our monitoring We are not aware of any potential non-compliance during network to be above allowable levels. Further detail is the year with licensing or approval conditions or other provided under “Dust”. requirements, except as set out above under “Environmental” or “Health and Safety”. NATIONAL POLLUTANT INVENTORY (NPI) Emissions notifiable under the NPI were estimated for Management systems particulate matter, oxides of nitrogen, polycyclic aromatic ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) hydrocarbons, fluoride compounds and cadmium and Our EMS continues to be further developed to integrate our compounds. Data for the 2003/2004 reporting period was 25 submitted to the EPA in August 2004. Detailed information is new operations as well as provide a more workable and available at: www.npi.gov.au by searching for the “Curragh user-friendly system for all our operations. Mine” facility. All our substance emissions for last year were SAFETY MANAGEMENT SYSTEM (SMS) ranked by the NPI as “low”. The SMS and Standard Operating Procedures (SOPs) are HEALTH AND SAFETY “living” documents – that is, changes are made as issues are We are not aware of any potential non-compliance during identified by audit procedures and employee consultation the year with health and safety legislation or other health and risk assessment processes.

and safety requirements, except as set out below. OTHER MANAGEMENT SYSTEMS Curragh Although the statutory requirement is for tests at least every The SiteSafe database allows immediate recording of ﬁve years, our employees and permanent contractors are incident and injury data. The database is accessed through required to have a Coal Board Medical (CBM) at least every our intranet where standard forms are completed on-line three years. by the person recording the incident or, in the case of an Each new employee or permanent contractor who does injury, by the site paramedic. Relevant information for each not have a current CBM is required to undertake the incident and accident is recorded and immediately stored assessment. An annual health review is also a requirement in the database. for our employees and permanent contractors. Statistical information can be retrieved from the database to Non-permanent contractors are required to have a health indicate trends and problem areas. assessment as part of the induction process. Our WorkCover-accredited injury and illness rehabilitation We measure compliance with our alcohol policy through policy and rehabilitation programme are communicated to testing of all personnel entering the mine site on a particular new employees at induction. Our rehabilitation programme shift. This shift is randomly nominated by the Executive is provided to employees who have either work or non- General Manager. Personnel attending site induction are work related injuries or illnesses. also breath-tested. A total of 46,569 tests were conducted POLICY with 132 positive tests. Our Environmental Policy has undergone its annual review and is displayed in prominent places throughout our (Below) Philip Kirk, Thiess Training Coordinator, conducts operations. Our Health and Safety Policy was reviewed and inductions for contractors working at Curragh North. circulated to personnel including contractors at induction and is displayed in prominent places throughout the workplace.

Environmental Air (atmospheric emissions)

DUST We monitor dust to gain an understanding of potential impacts we may have on the environment in which we operate. We monitor by fallout and high volume methods. Thirty-two of 204 dust fallout samples collected indicated dust concentrations greater than allowable levels. On further investigation, we identiﬁed that of 32 exceedences, 20 were attributable to excess dust and 12 were inﬂuenced by other factors. In the last year we received about 62 per cent of our average annual rainfall, slightly higher than the

25. Social Responsibility Report 2005 Figure: 1 Figure: 2 GREENHOUSE GAS EMISSIONS GENERAL WASTE VOLUMES 2004/05

(CO2 e) TONNES (CUBIC METRES)

Electricity 184,915 Diesel 111,704 Wood Waste 268 Fugitive 321,897 Recycled Waste 1,114 Explosives and Waste 4,070 General Waste 1,793 Total 3,175

26 previous year. Low annual rainfall in recent times may have NOISE accounted for off-site sources contributing to some of the We complied with limits specified for noise, but we may high dust levels recorded. have exceeded our maximum overpressure levels. We have No exceedences were identified from monitoring using our historically measured noise and vibration impacts from high volume samplers. blasting located in mining areas that are more likely to have an impact on nearby sensitive receptors. GREENHOUSE GAS EMISSIONS As a result, the limits may not have actually been We have previously been a participant in the Greenhouse exceeded and we believe that additional and constant Challenge Programme and we are currently in the process monitoring would assist in confirming our actual noise and Curragh of recommitting through a new Cooperative Agreement overpressure impacts from a whole-of-site perspective. We with the Australian Greenhouse Office. have commenced a review of our blasting procedures and Our greenhouse gas emissions were estimated to be 623,089 a capital approval process to improve our monitoring in tonnes of carbon dioxide equivalent, up 15 per cent on last this area and expect to see a marked improvement in data year, and this equates to 4.94 kilograms of carbon dioxide collection in the next reporting period. equivalent per BCMeq, down 3.5 per cent on last year. This OTHER EMISSIONS figure included 7,644 tonnes of methane (CH ) emissions. 4 We had no emissions of ozone-depleting substances during The only other source of greenhouse gas emissions that the year. we are aware of is related to waste disposed off-site and We have not yet prepared our report to the NPI for the fuel used by our small passenger fleet and as we did not 2004/2005 reporting period or finalised our data estimates, measure the relevant quantities we were unable to estimate however in 2003/2004 our three most significant emissions associated greenhouse gas emissions. were particulate matter (2,800,000 kilograms to air), The greenhouse gas emissions were largely due to fugitive oxides of nitrogen (1,200,000 kilograms to air) and carbon emissions (52 per cent) electricity (30 per cent), diesel fuel monoxide (600,000 kilograms to air). Further information is (18 per cent) and explosives and waste disposal (less than available at: www.npi.gov.au. All our substance emissions one per cent) (see Figure 1). for last year were ranked as “low” by the NPI.

(Below) Environmental Engineer Sara Cooke inspecting organic matter being trialled as a dust suppressant on the old tailings dam.

26. Social Responsibility Report 2005 Figure: 3 Figure: 4 SOLID HYDROCARBON WASTES LIQUID WASTE (LITRES) (LITRES)

01/02 02/03 03/04 04/05 01/02 02/03 03/04 04/05 118,965 84,930 84,965 113,365 28,000 202,000 317,300 553,610

Waste RECYCLING INITIATIVES 27 Other recycling initiatives include improved monthly SOLID WASTE reporting of our solid waste generation and management, Solid waste during the year consisted primarily of general the establishment of an on-site land farm to manage and waste including packaging, plastics and other solid remediate hydrocarbon contaminated soils and planning materials. the provision of training to procurement staff to assist in Our total solid general waste stream during the year was minimising on-site waste generation by subscribing to a estimated to be 3,175 cubic metres, up 38 per cent on last user pays principle. The implementation of these initiatives year. Of this amount, we estimated that 1,793 cubic metres will also provide an opportunity to increase workforce Curragh was general waste disposed of to landfill, 1,114 cubic awareness of waste issues. metres was recycled and 268 cubic metres was timber waste We continued to reuse waste oil as a lubricant in our Coal disposed of to landfill (see Figure 2). Our on-site landfill is Handling and Preparation Plant. registered with the EPA. Recovery of scrap steel totalled 2,481 tonnes, up 63 per cent Solid hydrocarbon wastes such as heavy grease, oily rags on last year. (Last year’s total was incorrectly reported as 868 and hydrocarbon-contaminated soil with a total volume tonnes. It should have been 1,523 tonnes). This significant of approximately 113,365 litres was also disposed of in increase is due to collection of scrap steel generated from accordance with the EPA’s requirements (see Figure 3). major work on our coal handling and preparation plant. Total solid waste disposed of to landfill per million BCMeq was estimated to be 16.35 tonnes, up 54 per cent on last year. Land

LIQUID WASTE FLORA AND FAUNA Liquid waste consisted primarily of waste oil and oily water. We continue to sponsor flora studies on areas of rehabilitated Our total liquid general waste during the year was estimated land to monitor species emergence. This work, carried out to be 553,610 litres, up 74 per cent on last year. Of this by the University of Queensland’s Centre for Mined Land amount, 40.7 per cent is recycled and 59.3 per cent is Rehabilitation, will continue for at least another two years. disposed of to a licensed disposal facility (see Figure 4). This year we recommitted to an additional five years of The volume not recycled is significant and is due to the research into soil erosion and the sustainability of our land poor performance of our oil/water separation system in rehabilitation in a programme developed and run by the our lube bay. Research of both short-term and long-term Queensland Department of Natural Resources and Mines. solutions to mitigate this performance commenced when We have now been part of this programme for a total of 11 we became aware of the problem. If waste oil has greater years, making this study the longest erosion-based project than 15 per cent water content, it is unsuitable for recycling. in Australia. A new oil/water separation system, the first of the short- The knowledge and information we gain from the above term remedial solutions, will be operational shortly. Other short-term solutions have included segregation of waste oils research programmes enables us to develop a greater before entering our current system, increased workforce understanding of the likely long-term success of our land awareness to reduce impacts of solid waste on our system rehabilitation efforts. and improving work practices associated with system A Peregrine Falcon’s nest was identified in the highwall maintenance. Design work has commenced on engineering of one of our active mine voids at Curragh East. Once improvements that are expected to provide a solution for identified, and prior to further development, the nest was the rest of the mine’s operational life. relocated by our Emergency Response Team. A nesting box Total unrecycled liquid waste generation per million BCMeq was constructed and established nearby in consultation with was estimated to be 2,604 litres. Last year all waste oil was the Queensland Parks and Wildlife Service and ongoing reported as recycled. This figure above will be used to monitoring is conducted on a regular basis. determine the performance of our waste oil management We completed a study into the significance of vegetation system over the reporting period. proposed for disturbance as a result of our mining

27. Social Responsibility Report 2005 Figure: 5 Figure: 6 Figure: 7

WATER PURCHASED (MEGALITRES) LOST TIME INJURY FREQUENCY RATE* NUMBER OF WORKERS COMPENSATION CLAIMS

1 July 00 - 30 June 05 (as at 30 September 05) *Contractor hours and LTIs included 15 2.9 2.7

1.3 5 5 1.0 1.0 4

01/02 02/03 03/04 04/05 01 02 03 04 05 01 02 03 04 05 2,408 3,026 2,611 2,476

operations. The study by independent consultants was (or 15 per cent of the disturbed land) have now completed against guidelines speciﬁed for the assessment been rehabilitated. 28 of ecosystems under the Commonwealth Environmental During the year, 1,914 hectares of land were disturbed Protection and Biodiversity Conservation Act 1999. Most by mining and associated activities and 60 hectares were of the study area was not considered signiﬁcant under the rehabilitated. Act. Mine development has proceeded with strict controls placed on clearing and the conservation of two pockets of Resource usage habitat considered of value. With construction of the Curragh North mine infrastructure ENERGY progressing rapidly, a number of fauna initiatives have been Energy use during the year related primarily to the implemented. These include active monitoring of trenching operation of draglines, our Coal Handling and Preparation

Curragh for the water management system to identify any trapped Plant (CHPP) and diesel-operated equipment. wildlife, relocation of a number of turtles from a semi- Total energy consumption was estimated to be 2,226,142 permanent water body and relocation of a large wedge-tail gigajoules, up 113 per cent on last year. This increase is due eagles nest from an area affected by construction works, largely as a result of increased production at Curragh and the which on advice is assumed to be still in use and estimated construction and commissioning of our Curragh North mine. as between 40 and 50 years old. Our total energy consumption per million BCMeq was We are also committed to managing an area of land 17,660 gigajoules, up 79 per cent on last year. cleared of brigalow woodland (Acacia harpophylla) for Energy sources are detailed below. our access road to Curragh North, rehabilitating an area of land cleared of brigalow woodland as a result of historic FUEL land use and preserving and maintaining a compensatory Petrol, diesel and LPG accounted for 72 per cent of our total area of brigalow woodland at Curragh North. These energy consumption by gigajoule. Our diesel consumption commitments have been made under specific management was 41,372 kilolitres. plans in agreement with the Commonwealth Department of Environment and Heritage under the Environmental ELECTRICITY Protection and Biodiversity Conservation Act 1999. Electricity accounted for 28 per cent of our total energy Planning has commenced on the establishment of a walk consumption by gigajoule. Our electricity consumption was path to relocate two draglines from the Curragh mine 175 gigawatt hours. We incorrectly reported the figure as operations to Curragh North. The walk path project will kilowatt hours instead of gigawatt hours in last year’s report. consider flora and fauna impacts as well as rehabilitation OTHER MATERIALS requirements to minimise and correct any potential Explosives were a major consumable with 24,493 tonnes used environmental consequences. during the year, an increase of 13 per cent on last year. CONTAMINATION The overall powder factor increased from 0.323 kilograms Contaminated sites continue to be monitored and managed per BCM last year to 0.397 kilograms per BCM this year, a with our on-site landfill being checked every six months to 23 per cent increase. Powder factor is the ratio of weight of identify any contaminant migration issues. explosives used to a blast unit of material. A former cattle dip at Curragh North was also assessed for contaminant presence. Organochlorine and arsenic Water contamination was identified and work is planned to CONSUMPTION manage this prior to disturbance by mining activities. Water use during the year related primarily to haul REHABILITATION road watering for dust suppression and for coal washing in Since the 1983 commencement of mining, 5,623 hectares our CHPP. of land have been disturbed by mining and associated Total purchased water consumption was 2,476 megalitres, activities. Approximately 1,729 hectares have been down almost one per cent on last year (See Figure 5). We are disturbed as part of the development of Curragh North. unable to calculate recycled water volumes this year due to a Revegetation commenced in 1987 and 848 hectares large number of water meters on-site not operating correctly.

28. Social Responsibility Report 2005 We have purchased six new water meters and are developing EMERGENCY RESPONSE a water management plan which we expect will enable us As outlined earlier in this report, a mock emergency exercise to capture more accurately this data in future. was conducted to test our on-site emergency response and 29 Our total purchased water consumption per million BCMeq crisis management procedures. The debrief and subsequent was 20 megalitres, down 24 per cent on last year. Water used report outlined areas for improvement which will be comprised purchased water, surface water taken from on- incorporated into both the Emergency Response Procedure site retention dams, pit water and reused/recycled water. and Crisis Management Plan.

REUSE AND RECYCLING MATERIALS HANDLING AND STORAGE A full water management system of 19 retention dams The database used to register chemicals is Chem Alert. Our holds the water that runs off from the CHPP and mining employees and contractors are advised about the system at areas, pumped from the pit area or returned from the fine induction. The database is accessible via our intranet and is Curragh tailings pit. updated when chemicals are either approved for use on site or removed from site. Water from the retention dams is used by the CHPP and for dust suppression on haul roads. Water fill points for RISK ASSESSMENT trucks engaged in dust suppression are located at four of A risk assessment form is available to all employees and the retention dams. Each water truck has the capacity of contractors across the mine site. The form is designed 75,000 litres. for ease of use and is used where necessary to do a risk DISCHARGES TO SURFACE AND GROUNDWATER assessment on a task or to perform risk assessments on SOPs. It accords with AS 4360. We had no discharges of water to surface or groundwater during the year. EMPLOYEE WELLBEING An influenza inoculation programme was again offered to employees and 82 employees had injections. This Safety and health programme was carried out by our nominated medical adviser who also visited the site during the year to consult LOST TIME with employees and management. Our Lost Time Injury Frequency Rate (LTIFR) was 2.9 Occupational therapy services are provided at the mine on (compared with 2.7 last year) see Figure 6, and during the an average of four times a month. The occupational therapist year, there were four LTIs. Our Average Time Lost Rate, reviews both work and non-work muscular skeletal injuries which provides a measure of the severity of such injuries, as well as assessing workstations and tasks. was 17 (compared with 12 last year). These statistics include A physiotherapist is now available for employees for work permanent contractor hours and injuries. and non-work-related injuries. The physiotherapist is also Safety statistics are distributed and discussed by management used for pre-employment functional assessments and on- each month and reported to our Board every two months. site training in areas such as manual handling. WORKERS COMPENSATION There were 15 workers compensation claims reported, relating to occurrences during the year, compared with five Community last year (see Figure 7). STAKEHOLDERS Hazard and risk Our stakeholders include our employees, our customers, our suppliers and other contractors, relevant government PROGRAMMES agencies, the local Blackwater community in which we Hazards are identified and assessed for risk and appropriate operate and the shareholders of our parent company, control mechanisms are put in place to ensure the health and Wesfarmers Limited. safety of people at the mine. Appropriate training is provided During the year we gained necessary regulatory approvals so that employees have the necessary skills and knowledge to transport up to 400,000 tonnes of coal by road to Stanwell to identify hazards and conduct risk assessments. Power Station, one of our major customers.

29. Social Responsibility Report 2005 The coal haulage project was advanced to offset export losses Communication that resulted from delays in producing and transporting coal NEWSLETTERS AND REPORTS under the contract to the Port of Gladstone. Monthly health and lifestyle brochures are sent to employees’ Extensive stakeholder consultation was completed prior to homes. Significant milestones, statistics and relevant haulage commencing and the project was completed without information are passed on to employees by the Executive significant incident on 11 June 2005, having transported General Manager at safety meetings and on notice boards. 234,450 tonnes. WEBSITE We hold a strong interest in considering the cultural heritage Our website (www.curraghcoal.com.au) includes information of the traditional owners of the land on which we operate. about our operations for the community, including environmental, During the reporting period, we completed extensive safety and health information relating to our business. cultural heritage assessment and mitigation of the Curragh LIAISON GROUPS North mine. We are a corporate member of the Queensland Resources Mitigation included the relocation and preservation of 12 scar Council, Fitzroy Basin Association, Greening Australia and trees which are of cultural significance to indigenous peoples. the Central Queensland Mine Rehabilitation Group.

FEEDBACK/COMPLAINTS COMMUNITY SUPPORT Two complaints were received during the reporting period. During the year we supported more than 46 community One was associated with damage to cattle grids from organisations and events. These included health, sporting, machinery being relocated to the Curragh North mine. The education, community and cultural activities. second was related to concentrations of dust deposited at a RESEARCH property adjoining our operations. We continue to support several industry research projects 30 The coal haulage project, referred to previously, was through the Australian Coal Association Research established to allow stakeholders to provide open feedback Programme. As mentioned previously, we have participated throughout the project. On the completion of the project in the rehabilitation erosion project for the past 10 years and we had received a total of 29 telephone calls to our hotline we are committed to continuing this project with ongoing ﬁnancial and in-kind support. number, mostly from motorists and also from residents along the haul route and our employees. The primary area of concern was related to trafﬁc.

Curragh LIAISON WITH AUTHORITIES “During the year we supported more than We regularly liaise with our regulatory authorities including 46 community organisations and events. the EPA and the Department of Natural Resources and Mines. These included health, sporting, education, Our approach aims to maintain an open and transparent relationship to facilitate and maximise effective outcomes community and cultural activities.” for all involved.

(Below) One of twelve culturally signiﬁcant scar trees which were preserved by relocation.

30. Social Responsibility Report 2005 (Above) Contract Operator Paul Lent (left) and Senior Environmental Engineer Josh Lobodin review completed tree grinding operations at Case Study Curragh North. 31 We decided there was a real opportunity to achieve a more Other uses planned include providing a resource in a site positive outcome with the green waste generated from tree greening programme that will provide more amenable and clearing associated with the development of the Curragh dust-friendly work areas by establishing gardens at crib huts North mine. Conventional methods in the coal mining and in our Coal Handling and Preparation Plant. We also industry generally involve stockpiling of cleared timber plan to offer some of this useful resource for community which is later burned. greening initiatives and by using the material as a cover In an effort to maximise the beneﬁt of the cleared timber, on small areas of rehabilitation that may be particularly we developed a work programme to grind the wood susceptible to water and wind erosion. Curragh using a tub grinder and reuse the woodchips for positive We have now developed a Green Waste Strategy to guide the environmental outcomes across the whole of the Curragh/ management of any cleared timber on our operations. The Curragh North operations. strategy will provide for additional grinding of green waste Woodchip generated has been used in a trial on our in accordance with our mine planning and also provide, decommissioned tailings dam to minimise wind-generated if required, for tightly conditioned burning or dumping of dust by spreading a thin layer on the surface to prevent such waste which will be assessed on a case-by-case basis. dry surface tailings from becoming airborne. We have also This proactive approach allows us to maximise the use mixed the chip with topsoil to improve the long-term soil of a resource that would normally be lost if we followed quality which we hope will assist in ensuring the viability conventional methods. of rehabilitation on the Curragh North mine.

Priorities for the future

Fully implement the Environmental Management System.

Bring all hydrocarbon storage facilities up to current requirements.

Fully integrate the environmental management of Curragh North into our systems.

Zero LTIs.

Continue promotion of health and safety awareness.

Continue assistance to establish a multi-disciplinary community health centre in Blackwater.

Fully implement the “ZIP” safety culture programme.

Complete a site security upgrade.

31. Social Responsibility Report 2005 32.

Premier coal

We mine coal at the Premier open cut in Collie, about 200 kilometres south of Perth in Western Australia.

During the year we sold 3.3 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 280 people engaged in overburden removal, coal production, plant maintenance, and site rehabilitation. www.premiercoal.com.au

(Above) From left: Robert Leonarduzzi and Trevor Kent from the mine rescue team performing equipment checks. CompletethereviewofourRiskMapsafetystandardsand CompleteourFitnessforWork regimeimplementation. Atargetofzeroaccidents. greenhousegasemissions. Reduce ourEMSforimprovedintegrationwithother Review Ensurefocusonanycommunityissuesorconcernswith Value-added rehabilitationandmineclosureoutcomes. Progressrehabilitationofminedareas. Full environmentalcompliance. seat hot regarding management change and implementation and plant, mobile heavy on egress and access extensions, handling plant coal new our for assessments risk conducted We our focused we programme. induction safety which general our on areas updating and assessment risk were year the during safety attention main two The areas. mined “Sustainable former of rehabilitation and titled systems management planning, submission Leading our sustainability our on based - Coal” Premier with at Development Corporate/Business State – Example Australian for by Western Award the winning Environmental was year highlight the major A for rehabilitated. was land no and activities associated and mining by disturbed was land additional No target. efﬁciency recycling solid cent per 90 our of Total short plastics. and just we came and 15by cent per reduced was waste cardboard general paper, tyres, metals, hydrocarbons, as such landﬁll wastes of of recycling maximising minimisation and the included management within Waste our well for was concern performance requirements. a compliance our remained although vibration neighbours and main noise Blast three the outcomes. closure mine and attention challenges, our focused we management waste the year these were during management, noise which on areas with environmental dealing In that the way or a environment in community. the local on mine impact our adverse of any operation minimises ongoing safe an on the are business our basis facing challenges main The Overview Report priorities Report

auditing systems. business systems. our operations. change outs. These are a method of keeping mobile keeping of method a are These outs. change

Not achieved. and 184incidentsin2004. during theyearand228otherincidentscomparedwithfourLTIs Not achieved. cent onaperBCMeqbasis. equivalent, down6.2percentonlastyearand10.1 Achieved. business system. Not achieved. Achieved. progressed. anddevelopmentintoaquaculture options andtrials.Research Achieved. evaluation, researchanddevelopmentofend-useoptions. production pressures,butprogresswasmadewithsuccessful Achieved. conditions ofoperation. Achieved. with auditablestandards. Not achieved. bargaining agreements(EBAs). health programmes relating to physical awareness and and awareness physical to health. personal relating programmes health comprehensive conducted we and promotion week action drug health public the in bargaining participated also We enterprise agreements. new our because on delayed negotiations was lengthy of programme for programme. to this Work of for preparation regard Fitness Implementation in our in of issues alcohol implementation workforce and full our drug and educate fatigue to continue We SAFETY AND HEALTH job-specific booklet. pocket a new a of with other release year meeting toolbox this updated and was This our training. programme environmental- environmental addition, five-hour training a In awareness undergone contractors. have and employees new of visitors induction at employees, conducted is training Environmental ENVIRONMENTAL Training include general revised inductions. to safety the department-specific attended relevant and revised personnel maintenance was procedures. work All safe and inductions programme department-specific induction The arrangements seat “hot production new The involved duration. possible di Outcomes Business management g ging and haulage equipment in cycle for the longest longest the for cycle in equipment haulage and ging Emissionsof59,553tonnescarbondioxide ProgressmadewithLake Kepwari development staggering the start times of each crew to effect a a effect to crew each of times start the staggering change”. All complaintsrespondedtoinwriting. Shaping andplantingworknotdonedueto Full compliancewiththecurrentlicencesand We incurredsevenLostTimeInjuries(LTIs) Awaiting implementationofOracle

Delayed duetonegotiationofenterprise Safety systemstobereviewednextyearalign

33 .

Social Responsibility Report 2005 Report Social Responsibility

33 Premier coal 34 Premier coal course training a total of 15 employees and we sent ten ten sent we and employees 15 of total a workplace training basic course one-day on-site an conducted We hours. work during available aid courses first by making employees a We our level amongst of maintained skills aid first response crisis. or responsibilities emergency an of for event the in actions and contingencies specify that and manual procedures management emergency and crisis a have We hazards. potential high known toour respond and enables us process to plan forThis prevention consequences. and incidents potential likely most our to identify assessment During the year we conducted an emergency management risk EMERGENCY training of the prevention completed. in was height and from falls training year, assessments previous the in risk conducted from on Continuing employees pit our procedures. inductions permit revised new also We safety updated. and and reviewed been Department-specific have site. the contractors the of to part allowing access as of developed and safe- been knowledge process personal also of as has assessment well understanding An as evaluating behaviours. risks includes working assessing also now and and hazards in system covered topics previous training visitors. all the and encapsulates content induction contractors induction employees, The safety for handbook assessment induction general and safety the re-issued our and presentation updated up We with taking employees workforce) our to of offer. the cent offered per (10 were employees 29 shots and influenza modification Free task as such exercises. issues strengthening covering advice given off-site, and aggravated and is not are work aimed injuries at these that was incurred ensuring injuries programme musco-skeletal This at programme. management injury our of part as clinic physiotherapy monthly a We ran 34. all across spread (PSITAB) are members Body team the Advisory As competencies. Training a Industry conducted Safety we Public new the in with line members in courses starting update and existing refresher of members series For team team new months. emergency three recent rescue with 15 mine at our stands of membership The and intervals departments. weekly various from people four included approximately at spaced were These members. team emergency rescue mine volunteer for sessions training one-day qualifications eight aid scheduled We 65. at first stands current with employees of number total The course. aid first occupational off-site to employees

Social Responsibility Report 2005 Report Social Responsibility (Left) New park-up bays established following risk assessments on heavy mobile plant. mobile heavy on assessments risk following established bays park-up New (Left) (Right) Members of the mine rescue team using testing fire fighting equipment. fighting fire testing using team rescue mine the of Members (Right)

We met with the Collie Local Emergency Management Management Emergency Local Collie the with met We equipment. fighting fire of and checks emergency all regular requires space. also routine confined training and our of Part depth height, from rescue response, environmental aid, first advanced fighting, fire search rescue, and apparatus, of breathing of number use a the involved including scenarios training organisations rescue other mine or Our members assist. to team off-shift on call or configuration shift given any for emergency an control and is the to purpose each shifts, can ensure member lead access, reporting period was submitted to the Department of of at: available Department is the 2003/2004 information www.npi.gov.au. to the Detailed for (DoE). submitted Data Environment was for NPI. period estimated the reporting were on NPI listed the other substances under notifiable or Emissions (NPI) legislation INVENTORY POLLUTANT NATIONAL environmental with requirements. environmental year during the non-compliance potential any of aware not are We ENVIRONMENTAL Compliance building. administration our in system supervisor’s maintenance desk or pit the control. We have an either evacuation and public address voice from a activated through system called automatically be to members team faults back to our Pit Controller. also This enables mine rescue or systems any alarm indicates which a system a day through 24-hours monitored are systems automatic Our level readiness. of high a to Standards Australian the with accordance and in companies We and and maintained serviced all fixed and portable fire systems services group. LEMAC the in involved emergency organisations involved police, exercise The local Highway. Coalfields the of closure necessitating vehicle, light a and truck collision chemical a a between involving scenario practice community incident a review of emergency part annual also were an We plan. of emergency part its of as (LEMAC) Committee Action aid coursesavailableduring workhours.” skills amongstouremployees bymakingfirst “We maintainedalevelof firstaidresponse

All our substance emissions for last year were ranked by the which in turn has developed a pragmatic operations NPI as “low”. We have not yet prepared our report to the culture that ‘gets on with it’ which has produced good NPI for the 2004/2005 reporting period. environmental performance”.

HEALTH AND SAFETY Auditing of environmental procedures continued, as did We are not aware of any potential non-compliance during monthly environmental reviews of the site. the year with health and safety legislation or other health As part of our ongoing commitment to the environment, and safety requirements. we are a signatory to the Australian Minerals Industry We operate under the requirements of the Mines Safety Code for Environmental Management, the Commonwealth and Inspection Act 1994 and Mines Safety and Inspection Government’s Greenhouse Challenge programme and the Regulations 1995, which were amended in April 2005. Western Australian Cleaner Production Statement. Leading up to the changes we sent selected personnel to SAFETY MANAGEMENT SYSTEM (SMS) attend government workshops and have also conducted training for managers and supervisors on-site. The changes Our SMS is the RiskMap Safety Management System made to the legislation were as a result of Commissioner Liaing’s up of 66 standards. report into health and safety within the Western Australian Inspection systems form part of the weekly routines of our mining industry. operations departments. In accordance with regulatory requirements, we continued Our Occupational Health and Safety (OHS) committee our Mine Workers Health Surveillance programme and meets monthly and reviews a range of topics, programmes renewed certification of hearing testing equipment. and issues. Other committees such as the Maintenance All existing and new mine rescue team members were Safety Review group meet approximately every four weeks medically and physically assessed and considered fit to to review and plan their respective area’s safety and continue as team members to the requirements of the health activities. Department of Industry and Resources (DoIR). An administration safety meeting group meets regularly and We maintained communication and consultation through reviews safety standards in the administration and supply 35 11 elected safety and health representatives on our buildings and areas. Meetings are held monthly to provide Occupational Health and Safety Committee. Elections were feedback and a forum on safety issues for those who are conducted to maintain representation across all departments. based in these areas. Any issues that are not resolved at this As required by the Mines Safety and Inspection Act 1994, group are referred to the OHS committee. nominations were called for those positions for which no elections had been held for two or more years. We now have POLICY four Safety and Health Representatives from Maintenance, Our Environmental Policy and Safety and Health Policy four from Production and three from the Services and remained in place. The Environmental Policy was reviewed Support areas. and is available on our website at www.premiercoal.com.au. Premier coal An audit of our chemicals inventory and ChemAlert database Environmental management remained one of our was completed and updated including a reconciliation of highest priorities. Our guiding policy principle is to take Material Safety Data Sheets stored in hard copy manuals responsibility for minimising the impact of our operations across our site. The ChemAlert system assists in managing on the environment and we acknowledge our accountability dangerous goods and hazardous chemicals storage and the to all stakeholders. Information about our environmental separation distances of potentially reactive substances. performance is made available to stakeholders. LICENSING AND APPROVALS We are not aware of any potential non-compliance during the year with licensing or approval conditions or Environmental other requirements. We fully complied with licence conditions and management Air (atmospheric emissions) plans covering water, noise, dust, blasting, forest management, clearing and rehabilitation. DUST There were no dust complaints this year. Management systems Dust at our mine is mainly generated on roads, dumps and ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) cleared areas and is only a potential problem during the drier months of the year. Accordingly, monitoring is only We have a certified ISO14001-standard EMS which is necessary at those times. Results from our monitoring site designed to identify and manage any potential risks include dust from the mine site and external sources. They through procedures for key work activities and monitoring requirements. The EMS covers our government-approved are annualised, causing exaggerated levels in relation to our environmental management programme and extensive stated dust emissions. legislative and licence conditions. Dust levels were well within licence conditions with a daily During the year, our second external surveillance audit was average level at nearby Buckingham of 36.2 micrograms conducted resulting in ongoing certification. A number of per cubic metre, down slightly on last year (38.4), with a “areas of concern” were identified as needing to be addressed daily maximum of 81.9 micrograms per cubic metre. (see through our corrective actions procedure. The audit report Figure 1). noted some areas of concern for our EMS and recommended Management strategies include minimised clearing and further work in identification of environmental aspects, rapid rehabilitation when possible, tar sealing major road training and competency assessment for specific positions, arteries and application of water to suppress dust on roads internal auditing and emergency response training. These and operational areas. are not seen to be major failings of the system and have been, or are now being, addressed. ODOUR The auditors also noted that “Wesfarmers Premier Coal has Spontaneous combustion of coal occurs periodically in the a great asset in its personnel who throughout the audit mine and can cause an unpleasant odour but there were no demonstrated efficient, positive and innovative attitudes complaints this year.

35. Social Responsibility Report 2005 GREENHOUSE GAS EMISSIONS There were seven complaints for blasting on our site We are a participant in the Commonwealth Greenhouse for blast levels ranging from 98.5 dB(L) to 117.3 dB(L). Challenge Plus Programme and have signed a Cooperative Independent building condition surveys are on offer to all Agreement through to 2006. nearby neighbours, but to date no survey has attributed Our greenhouse gas emissions were estimated to be 59,553 structural defects to our blasting. tonnes of carbon dioxide equivalent, down 6.2 per cent OTHER EMISSIONS on last year, and this equates to 2.95 kilograms of carbon dioxide per bank cubic metre equivalent, down 10.1 per We had no emissions of ozone-depleting substances during cent on last year (see Figure 2). the year. The only other source of greenhouse gas emissions that As previously mentioned, we have not yet prepared our we are aware of is related to burning of residual forest report to the NPI for the 2004/2005 reporting period. waste after harvesting in the clearing process and as we are However, in 2003/2004 our three largest emissions were unable to reliably estimate the quantity of these emissions particulate matter (1,400,000 kilograms to air), oxides of we cannot estimate associated greenhouse gas emissions. nitrogen (510,000 kilograms to air) and carbon monoxide Consequently, we have also not included carbon credits (230,000 kilograms to air). Further information is available associated with our rehabilitation of cleared land. at: www.npi.gov.au. All our substance emissions for last The greenhouse gas emissions were largely due to diesel year were ranked as “low” by the NPI. usage (64.3 per cent) and electricity consumption (34.8 per cent). Waste

NOISE SOLID WASTE There were no complaints during the year for general mine Solid waste during the year consisted primarily of metals noise and we were again able to achieve a low triggered and cardboard. blasting level average (104dB(L)), with no blast exceeding 36 the legal limit of 125dB(L) (see Figures 3 and 4). Our total solid general waste stream (not including scrap metals and tyres which are separated for recycling) during The highest recorded blast was 121 dB(L) while 97.9 per cent of the blasts were below 115dB(L). There was a 15 per the year was estimated to be 1,108 cubic metres prior to cent decrease in the total number of blasts to 473 and the compaction, down 15 per cent on last year. Of this amount, percentage of blasts triggering the monitor, set to trigger at 42 per cent was recycled and 58 per cent was disposed of 115dB(L), decreased by 14 per cent. The blasts triggering as landﬁll. Recycling efﬁciency for general waste improved the monitor were largely at the eastern end of Pit 1 which is by 0.3 per cent to 89.7 per cent, just short of our target of closer to the monitor and our neighbours at Buckingham. 90 per cent. Premier coal (Left) Environmental Engineer Peter Riley checking a new dust monitor. (Below Right) Tim Storer (kneeling) and Albert Gorman checking water quality at the aquafarm research site. (Top Right) Albert Gorman (left) and Paul Irving measuring silver perch at the aquafarm.

36. Social Responsibility Report 2005 Figure: 1 Figure: 2

DUST MONITORING TOTAL CO2 EMISSIONS BY SOURCE (MICROGM/M3) (TONNES)

94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 Diesel 37,796 Electricity 20,468 Daily average (allowable 90microgm/m3) Spontaneous Combustion 708 42.9 52.8 34.3 48 28.7 27.6 39.6 29.9 33.2 38.4 36.2 Explosives 253 Daily max (allowable 260microgm/m3) Petrol 180 93.7 97.1 58.4 112.2 69.3 47.9 162.3 63 59 101.3 81.9 LPG 53 37 Figure: 3 Figure: 4 PREMIER MINE BLASTING PREMIER MINE BLASTING (BUCKINGHAM MONITOR)

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Buckingham Griggs Total No. 70 165 262 271 261 349 477 596 547 559 473 <125dBL 100% 100% Premier coal Not triggered 27 49 149 191 197 297 299 443 353 377 385 <120dBL 99.8% 100% <115dBL 97.9% 100% No<115 64 149 242 261 254 343 455 586 541 550 464 Average dBL % <115dBL 91.4 90.3 92.4 96.3 97.3 98.3 95.4 98.3 98.9 98.4 98.1 when triggered 104 107 Average dBL 110 106 106 106 101 102 102 101 104 102 104 Total Blasts 473 473 Not triggered 385 466

Total solid waste disposed of to landfill per million bank was successful in winning the regional Tidy Town Award cubic metre equivalents (BCMeq) was 32 cubic metres, for 2004. down 13.5 per cent on last year. Land LIQUID WASTE Liquid waste during the year consisted primarily of FLORA AND FAUNA hydrocarbons and these were captured by evacuation Protection of surrounding forests remained a priority and systems or the Dissolved Air Flotation (DAF) plant. This there were no clearing operations during the year. waste was transported to a local recycling plant where it When clearing does occur, operational areas are mapped to was used mainly in the production of low-grade oils or fuel determine dieback boundaries. Our procedures for clearing, oil. A total of 167,650 litres was recycled, down 20 per cent topsoil removal/replacement and land rehabilitation on last year due to lower consumption. Oil filters were also minimise the risk of spreading jarrah dieback. Infected soils taken for recycling. are kept separate for application only in areas with minimal RECYCLING INITIATIVES risk of disease spread. Disturbed land is returned to stable, compatible bushland by using local native seeds and trees. In the maintenance and fuel bay area, the DAF plant treats Habitat logs are placed in rehabilitation areas to promote run-off and vehicle wash down waters if required. The recolonisation of native fauna. Routine inspections identify flotation system remained off-line during the year as the silt improvement opportunities and permanent monitoring traps and oil skimmers produced adequate quality water. plots track vegetation uptake. The main infrastructure area was serviced for sewage by Faunal surveys of our rehabilitation sites are designed to a treatment plant with treated water available for garden assess small to medium-sized mammals, frogs, reptiles and reticulation during drier periods. birds. The rehabilitation is showing good recolonisation, Our main waste streams - including used oils, metal scraps, providing habitat for a range of representative vertebrate cardboard, paper, tyres and batteries - were all recycled. species. A new survey is planned for this year to include Recycling is promoted through the provision of bins at work new areas and check the progress of long-established for employees’ domestic requirements. We also continued rehabilitation. Research on birds as bioindicators is behind to help drive the Collie Tidy Towns Programme which schedule and is currently being written up.

37. Social Responsibility Report 2005 CONTAMINATION and LPG consumption was 72 kilolitres, 13,889 kilolitres No signiﬁcant site contamination has been identiﬁed. and 35 kilolitres, respectively.

REHABILITATION ELECTRICITY Since the 1950 commencement of mining, 2,618 hectares Electricity accounted for 11.5 per cent of our total energy of land have been disturbed by mining and associated consumption by gigajoule. Our electricity consumption was activities. Revegetation commenced in 1975 and 1,232 19,405 megawatt hours. hectares (or 47 per cent of the disturbed land) have now OTHER MATERIALS been rehabilitated. Explosives were a major consumable with 1,462 tonnes During the year, no land was disturbed by mining and used during the year, a decrease of 39 per cent on last year. associated activities and no land was rehabilitated (see The decreased use of explosives reflected the reduced Figure 7). blasting requirement in areas we mined during the year. Successful rehabilitation work requires the careful planning The overall powder factor decreased from 0.19 kilograms and interaction of numerous processes. A key to our success per bank cubic metre (BCM) last year to 0.17 kilograms per is correct waste rock management with materials likely to BCM this year, a 10.5 per cent reduction. Powder factor is generate acidic conditions buried deep in the dump or the ratio of the weight of explosives used to blast a unit backfill profile. Final dump surfaces are covered with a of material. one-to-two metre blanket of inert material and spread with topsoil ready for revegetation. Water Rehabilitation at the closed Western 5 mining area in the Cardiff Sub Basin continued with in-fill planting undertaken CONSUMPTION using seedlings raised by the local Aboriginal Ngalang Water use during the year related primarily to dust Boodja Nursery. Local school children assisted as part of suppression (93.6 per cent of abstraction used by us) and National Tree Day. process water (5.8 per cent). 38 Rapid fill of the WO-5B void (Lake Kepwari) continued with Total water consumption was 514 megalitres, down two per the programme designed to increase safety and enhance the cent on last year. final rehabilitation outcome. A further 3,374 megalitres of Our total water consumption per bank cubic metre water were diverted, raising the lake level by 1.65 metres and equivalent (BCMeq) was 25.5 litres, down 5.6 per cent on filling it. Diversion has assisted acidity control considerably last year. Our only water source was groundwater abstracted and it is expected that the void will stabilise at above 5pH through bores. – an acceptable level for active water sports. This programme reduced the natural fill time of 100 years down to five All groundwater abstraction is licensed and monitored. years, expediting the availability of the area which has a During the year, 6.3 megalitres per day were pumped with high potential for other valuable purposes such as tourism, a total abstraction of 2,288 megalitres (see Figure 5), down Premier coal recreation and aquaculture. The lake has a surface area of 34 per cent on last year. Of this total, 1,772 megalitres was 103 hectares and should be well suited to water sports such as available to be sent to local power stations – the major users skiing and rowing. Premier Coal is part of the Lake Kepwari in the area – thus helping to reduce overall abstraction in Working Group that is investigating development options. the Collie Basin. Any recreational development in this area will complement Dewatering is required for safe and efficient mining in the the Collie Motorplex which is now an established driver- Collie Basin. We are committed to making good any loss of training and club motor sports centre. Based at the former water suffered by our neighbours. Western 2 mine site, the Motorplex has successfully built To date, dewatering at the mine has not affected groundwater upon existing mine infrastructure including workshops, levels near private land or dwellings in the area. other buildings and an extensive road network suitable for REUSE AND RECYCLING racing and training. The track underwent a major upgrade and expansion this year to accommodate a growing need The main infrastructure area was serviced for sewage by for the facility. a treatment plant with treated water available for garden reticulation during drier periods. Rapid fill of the WO-5H void also continued with the level raised a further 3.2 metres, compared with a rise of 3.7 metres DISCHARGES TO SURFACE AND GROUNDWATER last year. However, the temporary use of the lake as a We were licensed to discharge water off-site to the water source for Western Power over summer and the environment, but again we did not do so (see Figure 6). effect of evaporation and leakage resulted in 2.2 metres net Despite the zero discharge, we continued to monitor adjacent rise. Research continued at this site into aquaculture as a river systems and maintained a database and management relinquishment option. system for water quality, abstraction, discharge and regional waterway monitoring. Resource usage Overflow from Sump A was 1,213 megalitres. This flow ENERGY was captured in the WO-5H void as part of the rapid Energy use during the year related primarily to diesel fill programme. for mobile plant and electricity for pumps, shovels An estimated 3,374 megalitres of water was released into and lighting. Western 5B Lake as part of the rapid fill programme. Total energy consumption was estimated to be 609,327 gigajoules, down 0.6 per cent on last year. Our total energy consumption per million bank cubic Safety and health metre equivalent (BCMeq) was estimated to be 30,214 LOST TIME gigajoules, down 4.8 per cent on last year. Energy sources are detailed below. Our Lost Time Injury Frequency Rate (LTIFR) was 12.7 (compared with 7.0 last year) see Figure 8, and during the FUEL year, there were seven LTIs. Our Average Time Lost Rate, Petrol, diesel and LPG accounted for 88.5 per cent of our which provides a measure of the severity of such injuries, total energy consumption by gigajoule. Our petrol, diesel was 28.6 (compared with 18.5 last year).

38. Social Responsibility Report 2005 These statistics include contractor hours and injuries. Our Technical Services team achieved the rare distinction We achieved six months without an LTI between 9 of having gone 10 years without an LTI. This group had December 2004 and 9 June 2005, but we did incur seven many people come and go in that time, and has a broad LTIs this year: a fractured wrist in a fall off a truck ladder; range of service and skills and hence injury exposures. burns to legs when attempting to remove a radiator cap on Safety statistics were distributed and discussed by a truck waiting for service; a neck injury following handling management each month and reported to our Board every of a wash plant hose; two knee injuries when climbing a two months. truck ladder; strained abdominal muscles; and a shoulder All safety incidents were discussed at a weekly Hazard and upper arm injury when trying to dislodge a fuel hose and Incident Review meetings to ensure investigations and handle on a refuelling truck. follow-up actions are completed.

WORKERS COMPENSATION Figure: 5 There were 43 workers compensation claims reported, relating to occurrences during the year, compared with 42 WATER ABSTRACTION last year (see Figure 9). (MEGALITRES) A regular review of all injury claims was conducted with our insurers to assess progress on outstanding claims and any injury rehabilitation plans. On-site injury management clinics were held to assess ongoing musco-skeletal injuries. We continued to use the services of rehabilitation and vocational service providers. Our Occupational Health Nurse is accredited to WorkCover Western Australia as a workers compensation and rehabilitation coordinator. Our Occupational Health Nurse and Supply Administrator attended workshops on 39 the new Workers’ Compensation legislation. Our Occupational Health Nurse also attended a Return to Work Rehabilitation conference.

94 95 96 97 98 99 00 01 02 03 04 05 Hazard and risk

14,876 6,513 4,737 3,265 2,384 3,085 2,681 4,067 4,547 3,821 3,478 2,288 PROGRAMMES Hazards and incidents were captured within our Hazard and Incident Reporting system. All hazards and incidents Figure: 6 were reviewed with investigation outcomes and actions Premier coal recorded in our Oracle Health and Safety Recording System. WATER DISCHARGE Any current reports and outstanding actions were reviewed (MEGALITRES) twice weekly to monitor progress. Our RiskMap standards specify the minimum requirements of our safety systems. A risk register has been developed using a rating system that identifies extreme and high-rated 94 95 96 97 98 99 00 01 02 03 04 05 risks and for control and reduction of each identified hazard. 5,456 3,351 2,274 556 98 612 0 0 0 0 0 0 Department safety audits are conducted on a regular basis. Our fire detection and suppression systems and equipment are regularly serviced, checked and maintained. Since the annual service, dry powder extinguishers have been Figure: 7 replaced with carbon dioxide extinguishers in all switch rooms. We are continuing a survey of fire suppression of REHABILITATION our heavy equipment fleet. The purpose of the survey is to (HECTARES)

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

Clearing 22 44 2 36 41 211 269 129 104 156 87.12 99.25 44.1 21.32 0 0

Rehabilitation 42 33 14 34 41 104 0 50 38 116 0 0 192 187 22.1 0

39. Social Responsibility Report 2005 40 PremierCSBP coal 40. staggering involved system. arrangements roster shift production staggered new a maximum The from achieving of levels process production was the study assess risk to a local (EBA), conducted agreement a bargaining enterprise involved new a of implementation and This acceptance for preparation In machines. operators. of selection a and their physiotherapist/ergonomist accessing and conditions in and methods access the of aware our are operators of ensure to also equipment heavy mobile off and on conducted arrangements egress was assessment An plant. new of this operation the in risks crushed and hazards coarsely identify to was conducted a assessment risk of team-based A coal). production (nut product coal the for for extensions conducted of was audit control changes and to our plant coal the following handling construction assessment risk A processes. or equipment plant, in changes toeither relating assessments risk of number a conducted we year the During ASSESSMENT RISK hazardous database. Safety Material our ChemAlert of through available and each maintained are for items goods dangerous Sheets and substances Data Safety on-site. allowed being chemicals Material to new prior Any assessed and annually. reviewed are audited goods and dangerous maintained and is substances hazardous of register A STORAGE AND HANDLING MATERIALS Ambulance 31 us John basic skills. with aid giving 34 first and skills aid St accreditation first advanced with course employees aid completed first occupational employees workshop the Twelve of with reported were procedures. evacuation issues the No conducted. was emergency stores and practice A chemical hazardous operations. apparatus in breathing and courses response We refresher conducted. conducted was also course refresher Body apparatus Advisory breathing Training self-contained skills emergency An Industry competencies. (PSITAB) Safety Public new with line in the skills with emergency 2005, revising for plan through structured a scheduled was training Rescue Mines with the reported were evacuation of issues procedures. the no Total and minutes evacuation conducted. four was was time procedures stores and emergency workshops practice A RESPONSE EMERGENCY feedback. meetings safety and induction our of part are alarm the raising for Procedures rooms. switch and in our buildings systems main We signalling have evacuation released. recently fire our standards new of review light in to risk systems our of adequacy the determine

Social Responsibility Report 2005 Report Social Responsibility Figure: 8 LOST TIMEINJURY FREQUENCYRATE* 1 2 3 4 05 04 03 02 01 *Contractor hoursandLTIs included 1 July00-30June05(asatSeptember05) 20.8

6.4

0.0

7.0

12.7

An assessment was made of the implementation of the the of implementation the of made was assessment the An achieving safely are we levels. production date required hot To new system. the of roster to implementation seat produced and was training video the A in areas assist changes. park-up the and effect roads new of to layout the needed the of as design well as the rosters in involved were representatives health and safety their and operators foremen, Supervisors, longest the for mobile cycle keeping in possible. duration of equipment method haulage a and are digging change-outs change”. seat “hot seat a effect Hot to crew each of times start the months of April to June 2005 with 29 taking up the offer. offer. the up taking 29 with 2005 June to April of months the in employees all to smoking. offered were with inoculations Influenza associated operators. for risks conducted were assessments risk health Diabetic the on non- and smokers smokers to information and advice providing by Wein the participated public health QUIT campaign smoking weight-loss in Centre. Health participate Occupational the at to meetings group opportunity the given were visit overweight or being as site assessed on Employees doctor. sessions own their HealthMap the attend either can Employees local status. health of involving reports free “snapshot” providing employees confidential physiotherapist a to and practitioners offered medical be to continued programme assessment fitness awareness and medical HealthMap The government’s federal the diabetes. adult on of campaign part as also offered were checks diabetes and cholesterol pressure, Blood environment. smoke-free a and loss weight prevention, injury strain on focusing year the continued, educated during and promotion health Our assessed issues. is health about workforce our ensure to in place programmes promotion and monitoring health have We WELLBEING EMPLOYEE and action continuing plans. for reduction risk lowest further of to development highest the ability rank the with to assessments risk the all of Register account take Risks to and Hazards central our management updated we Lastly, crisis reflect to assessments. and these plans emergency our updated and emergency facility relation our in to threats likely most to the assessed we procedures, regards In most productivity. of levels the higher and safe effect to order effect in to by system the required codes input areas different the understood operators the loading ensure to needed We to trucks configuration. efficient of units matching digging and feature to a re-direction is This automatic system. allowing auto-despatch Mining Modular Figure: 9 NUMBER OFWORKERSCOMPENSATION CLAIMS 1 2 3 4 05 04 03 02 01 60

ACCESS Counselling conducts our Employee Assistance Communication Programme which is available to employees and their NEWSLETTERS AND REPORTS immediate family. This is a conﬁdential service aimed at resolving or assisting with personal issues that may have an We report annually to a consortium of government impact on work. departments through the Collie Coal Mines Environmental Committee. As part of National Diabetes Week we held a health Information on issues and achievements was distributed in promotion display and made information readily available our quarterly publication “Premier Post” which was sent to to each area of the workforce to alert everyone to the risks all employees and contractors and was widely distributed of contracting diabetes. throughout the community. We continued to issue the “Premier Coal Health and We also distributed to all employees and on-site contractors Lifestyle Newsletter” with our quarterly internal magazine a summary of operations through an email and mail-out the “Premier Post.” The “Health and Lifestyle Newsletter” called “Fortnightly Focus”. This aims to keep employees is another tool to raise awareness on being and staying and contractors up to date with key performance areas such healthy, at work, at home and during leisure and recreational as safety and the environment. activities. It provides plenty of useful information including During the year, we hosted several mine visits including regular articles on ﬁtness, nutrition, exercise, alcohol, use school groups and international delegations. We also held of medications, interpersonal skills and other informative a Community Open Day in conjunction with Motoring articles on maintaining physical and mental health. Southwest and the South West Development Commission. This provided an opportunity to showcase Lake Kepwari and the motorplex. The day included skiing and wake- boarding demonstrations at the lake as well as drags and Community racing car displays at the race track.

STAKEHOLDERS Our intranet makes available to employees information, including environmental and safety standards and 41 Our stakeholders include our employees, our customers, our procedures. suppliers and other contractors, relevant government and non-government agencies, the local Collie community, and WEBSITE shareholders in our parent company, Wesfarmers Limited. Our website (www.premiercoal.com.au) includes information about our operations for the community, including FEEDBACK/COMPLAINTS environmental, safety and health information relating to We received seven complaints for the year, up from ﬁve our business. last year, all concerned with blasting. We responded to all LIAISON GROUPS

complainants in writing explaining the circumstances and Premier coal We have a Stakeholder Consultation Group to provide a strong recorded levels. community interface and improve community awareness LIAISON WITH AUTHORITIES and involvement. This group provides assessments of this report – in particular the scope, clarity, design and ease We have a senior manager to liaise with all authorities of information access – and feedback on any community to ensure that relevant government agencies are kept concerns with current and planned operations. informed of progress on existing issues and any new issues During the year, the Stakeholder Consultation Group which arise. was consulted on the proposed Collie B Power Station The DoIR District Inspector of Mines visited the mine and development proposal by the Collie Power Consortium of met statutory managers, safety and health representatives, which Wesfarmers Energy is a member. and safety, health and training staff. We also hosted several tours for government agencies such (Below) Water ski demonstrations at Lake Kepwari the DoIR and the Department of Environment. during Premier’s Open Day.

ACTION GROUPS We are a member of the Local Emergency Management Action Committee (LEMAC), which is part of the Police and State Emergency Services plans. Each year LEMAC reviews the emergency services plan for the Collie region. We are represented on various committees of the Chamber of Minerals and Energy, from the executive to subcommittees, allowing us to participate in discussion of issues concerning the mining industry in Western Australia. An important aspect was participation in the southwest region occupational health and safety committee. This committee hosts educational conferences as well as emergency skills competitions between local and regional mining companies. We were also represented on the Chamber’s conservation and land management committee, the Collie Coal Mines Environmental Committee, the South-West Environmental Forum, the Environment and Natural Resource Management Committee Mines Operation Group, the Collie River Restoration Group and the Western 5 Working Group.

41. Social Responsibility Report 2005 The top four issues discussed were air quality, water supply, The aquafarm at our former Western 5H mine site is being effluent disposal and greenhouse gas. The group did not used for further research on production of marron and silver raise any major concerns other than the need for wise perch. It also will provide a base for long-term teaching water supply management for the power station, traffic and as a research centre for the local TAFE and the Centre management during construction and the need for more of Excellence in Sustainable Mine Lakes. Monitoring of the apprentices and aboriginal employment in the region (the Western 5B lake (Lake Kepwari) continued as part of the consortium was subsequently unsuccessful in its bid to Centre’s research into developing a predictive model for build the power station). water quality and ecological development of mine lakes. Several meetings were held with local residents particularly This programme is helping define beneficial end uses and to progress the noise Regulation 17 application. The opportunities to attract capital developments. Buckingham community meetings provide a valuable We have a seven-year, $100,000 a year, commitment to opportunity to discuss their concerns and suggestions. the Cooperative Research Centre for “Coal in Sustainable Participation in various committees, noted earlier, provides Development”. Work being done under this project by a regular opportunity to liaise with a wider audience. Curtin University of Technology involves achieving better environmental and greenhouse performance through COMMUNITY SUPPORT efficiency and waste management improvements. The Schools Compact for Education Excellence continued SCHOLARSHIPS with Amaroo Primary School. The aim is to deliver improved education opportunities for children through identification Each year we provide tertiary scholarships such as the of areas of special need, projects that can support the school J A Ellis Scholarship and specific university scholarships. curriculum, business and school interaction, programmes Our scholarship at Curtin University supports postgraduate to inspire and encourage gifted students and to support and research into birds as bio-indicators in the jarrah forest in assist disadvantaged students to achieve their full potential south-west Western Australia. The study is completed and and meaningful work experience. covers a range of forest types including pristine, logged, burnt and dieback-infested as well as rehabilitation areas on 42 Work on the assessment of a future industrial park at Shotts near Collie continued. our mine site. The results are currently being compiled. This has the potential to encourage business development We also sponsored the Joe Lord Memorial Scholarship at the as well as a far more efficient utilisation of the energy Minerals and Energy Research Institute of Western Australia produced by local power stations and our coal products. which supports research for the mining industry. The project has attracted government funding through the Premier is also contributing $100,000 over four years to the South-West Development Corporation and LandCorp and we Australian Institute of Mining and Metallurgy Education have provided the necessary land for future development. Endowment Fund. Under our Safety Voucher fund a proportion of safety We provided work experience to 13 high school and 10 financial incentive awards managed by employees, TAFE students from the south-west region and paid vacation Premier coal contributed to community projects. Beneficiaries this year employment to 12 tertiary students.We also provided student included sporting groups, disabled children, the Collie awards for the local high and primary schools. hospital, Scouts and the Collie Library. Because of our During the year we employed 15 apprentices ranging from excellent safety performance, we contributed $19,749 to the those in the first year to those in the fourth year of their fund and $8,248 was paid out by the fund to the Collie indentures. community. In addition, we have given $68,346 as direct community contributions this year. AWARDS Premier Coal committed $150,000 to the Collie Town Entry A major highlight for the year was winning the State Precinct Interpretive Centre. This is to support a $2.3m Environmental Award for Corporate/Business Leading project to develop a major tourism and historic iconic by Example – with our submission titled “Sustainable attraction based on Collie’s long association with coal Development at Premier Coal” and based on our sustainability mining, power generation, forestry and alumina. planning, management systems and rehabilitation of former mined areas. Our work in this area, which also resulted RESEARCH in us winning a national Banksia Award in 2004, is a We continued to help run the Collie Centre of contender for the Department of Industry and Resources Excellence in Sustainable Mine Lakes through funding and Golden Gecko Award for Environmental Excellence in the management support. minerals and petroleum industries in Australia.

(Left) Volunteers who carry out restoration work on old rail carriages at the Collie Rolling Stock Sheds are supported by Premier Coal. (Right) Apprentice Boiler Maker/Welder Kiel “Enzo” Ferguson was awarded the Rotary Apprentice of the Year.

42. Social Responsibility Report 2005 (Above) Car racing at the Collie Motorplex. Case Study

Areas on which former mine infrastructure is located pose a The road network now includes a bitumen road training 43 diff erent challenge in achieving a value-added rehabilitation v enue, grav el driv er training v enue, a race circuit and outcome. At the former Central Services Area (Western a drag strip , a skid pan, burn-out area, off -road skills 2 mine ) , rather than normal decommissioning involving course, hill climb circuit and pit area. The grounds include removal and/or selling existing facilities, we hav e tak en a gardens, saf ety barriers, observ er’s bo x, picnic and barbecue more creative approach. areas, car parking area, camping areas and grassed corporate areas. This area has been turned into the Collie Motorplex, now The Motorplex is used for a variety of motoring activities run by Motoring Southwest. from youth driver training and production car testing to The Motorplex is essentially a large recy cling project with

specialised driv er training such as f or off -road f our wheel Premier coal mine roads, offices, workshops and other facilities giv en a driving, heavy haulage driving, essential services such as new role in motor sports and driv er training. The complex fire rescue and ambulance, the armed forces and high- attracts a large inflow of people and money to Collie. speed pursuit training for the Western Australian P olice Force. Recreational activities include car and bik e speed The community has strongly embraced the dev elopment racing, rallies, enduro, motokhanas, hill climbs, drags, burn and has put in around 40,000 hours to renovate buildings out ev ents and vintage and v eteran car ev ents. and dev elop the site to a point where the complex is now The dev elopment has provided additional economic valued at sev eral million dollars. The community group has div ersity, created new jobs and provided social and dev eloped the buildings to include classrooms, a common educational opportunities. room, sleeping quarters, kitchen facilities, ablution blocks, medical room, clubrooms, an administration centre, caretak er’s residence, function room and a workshop currently leased to a suspension manufacturer.

Priorities for the future

Achieve full environmental compliance. Progress rehabilitation of mined areas.

Maintain ISO14001 EMS standard. Halve our LTIFR with an ultimate aim of zero LTIs.

Develop refresher environmental training package. Implement Fitness for Work programme.

Reduce hydrocarbon spillage. Upgrade our internal safety audit and inspection system.

Continue with development of “value-added” Align Safety Management System (SMS) to an auditable rehabilitation and mine closure outcomes. standard.

43. Social Responsibility Report 2005 44.

Kleenheat gas

We are a major distributor of liqueﬁed petroleum gas (LPG) to a broad range of domestic, commercial, forklift, autogas and industrial customers.

We operate in all states of Australia through a network of depots, company-operated branches, commissioned agents, dealers and franchisees servicing more than 15,000 bulk, 210,000 domestic, 6,000 forklift and 1,500 Kwikgas customers installations. Other activities include a liqueﬁed natural gas plant at Kwinana in Western Australia and an LPG distribution facility in Bangladesh. We employ more than 500 people. This year we expanded our business to include Tasmania, with the purchase of Mobil’s LPG business. Our activities in Tasmania include supplying cylinder LPG and servicing commercial and industrial customers with LPG from Victoria. www.kleenheat.com.au

(Above) A trailer being loaded onto a ferry in Melbourne to supply bulk LP Gas in Tasmania. Report priorities Outcomes

Maintain zero Lost Time Injuries. Not achieved. We had one employee LTI and one contractor LTI.

Conduct heavy vehicle driver training. Achieved. 105 company and contractor drivers received heavy vehicle training.

Introduce further programmes to reduce manual Achieved. We trained 55 GasHouse employees in manual handling risks. handling and introduced lifting devices to all GasHouses.

Improve energy efﬁciency at sites and in the transport of Partially achieved. Energy consumption per bulk tonne of our product. LPG delivered up three per cent. However, 54 per cent of sites improved energy efﬁciency.

Implement recommendations of asbestos site assessments. Partially achieved. Damaged asbestos at Myaree was removed. Quotes to seal asbestos at Pinkenba are being considered. Asbestos planned to be remediated at Camellia.

Install septic system at Pinkenba terminal. Achieved. 45

Overview Business management The main challenge facing our business on an ongoing basis is the safe operation of our sites in a way that Training minimises any adverse impact on the environment or the ENVIRONMENTAL local community. Environmental awareness training and separate In dealing with this challenge, the three main environmental Kleenheat gas environmental benefits of LPG training is delivered to areas on which we focused our attention during the year new employees as part of the induction programme. were training drivers in heavy vehicle use, undertaking The environmental awareness training covers statutory truck and cylinder washing facility assessments and obligations, key environmental management practices and contaminated sites management. environmental incident reporting requirements. The “Professional Operator - Heavy Vehicle Driving” training Information on minimising fuel consumption in our heavy sessions covered information on safe driving techniques vehicle transport fleet, to reduce environmental impact, and minimising fuel consumption and were attended by was included in the “Professional Operator - Heavy Vehicle 105 of our drivers. Driving” course. Eighteen of 26 sites identified as having cylinder or truck Our “Environmental Benefits of LPG” training was attended wash facilities on-site were reviewed for compliance with by 41 employees during the year. the relevant environmental state and territory legislation. HEALTH AND SAFETY Our Myaree site in Western Australia was remediated and our former Kwik Fuel Service station sites were investigated After the introduction of our Fitness for Work policy, random drug and alcohol testing was conducted in Darwin, to determine the environmental impact associated with our Brisbane, Sydney, Melbourne, Adelaide and Perth operating leases. Remediation commenced where required. locations. A total of 65 tests were carried out with four The two main safety areas on which we focused our positive results. There were no positive test results for attention during the year were heavy haulage vehicle driver alcohol. Those returning positive results were required training and emergency and crisis management planning. to submit a management plan against which their future Following on from our defensive training for passenger conduct will be monitored. Breaches of such plans may vehicle drivers last year, we conducted the “Professional result in disciplinary action, including dismissal. Operator - Heavy Vehicle Driving” training in all major EMERGENCY operating centres. We trained our National Emergency Response We finalised a crisis management plan and conducted both Communications System teams, focusing on the ability terminal and desktop exercises to train our employees in to deal with emergency situations. We held a desktop the operation of the plan. emergency exercise in November 2004 at our Swan Hill Our safety performance was disappointing this year, with terminal in Victoria. Additionally, in conjunction with two LTIs sustained. One, related to driver safety, reinforced the Fire and Emergency Services Authority, we held the training programme for our heavy vehicle drivers. The an emergency exercise at our Kwinana gas terminal in other, concerning manual handling, resulted in re-training Western Australia and a crisis management exercise at our our GasHouse staff in manual handling safety. Myaree office.

45. Social Responsibility Report 2005 Compliance of such cylinders or bulk vessels at any one time, but we are currently implementing a system to capture such data ENVIRONMENTAL and track bulk vessels. Any changes to environmental legislation in the states and territories in which we operate are monitored through LICENSING AND APPROVALS a company that specialises in environmental law. The We are not aware of any potential non-compliance during company notifies us of any changes and has a website the year with licensing or approval conditions or other containing current environmental legislation. The annual requirements, except as set out below or above under environmental survey was completed for each of our sites. “Environmental” or “Health and Safety”. The results of the survey have been used in generating We hold three site-specific environmental licences. These some of the data for this report. are required by the relevant statutory authorities for our We are not aware of any potential non-compliance during the Pinkenba terminal, our Mongla terminal in Bangladesh and year with environmental legislation or other environmental our Kwinana liquefied natural gas (LNG) plant. requirements, except as set out below. Approval was granted by the Kwinana Council during the A new septic system was installed at Pinkenba in January year for the relocation and upgrade of the truck wash facility 2005 to meet the requirements of the local authority. This fully addresses the overflow issue referred to in last at our Kwinana terminal. year’s report. During the year, we were found to have breached Wastewater discharge practices that were not compliant Western Australian consumer protection legislation due to with the relevant state legislation were identified in Victoria underfilling 8.8 kilogram (commonly referred to as nine and New South Wales. Operational changes or upgrades kilogram) gas cylinders. will be undertaken during the next year to comply with the Immediate steps were taken to prevent any further relevant legislation. underfilling and we were fined $5,000 by the Rockingham Eighteen of 26 sites identified as having cylinder or truck District Court. The breach resulted in a review of our cylinder 46 wash facilities on-site were reviewed for compliance with filling procedures, re-training of filling staff and a decrease the relevant environmental state and territory legislation. in the stated net filling weight of cylinders from 8.8 to 8.5 kilograms. NATIONAL POLLUTANT INVENTORY (NPI) LPG is a volatile organic compound that is reportable under Our gas terminals at Swan Hill and Kwinana continue the NPI if a threshold is triggered. The presence and use to operate under approved Safety Reports for Major of all substances listed under the NPI was reviewed during Hazard Facilities. the year for each type of operating site. We did not trigger any thresholds and therefore not required to report under Management systems the NPI. INTEGRATED MANAGEMENT SYSTEM Kleenheat gas HEALTH AND SAFETY Our Operations Management System (OMS) is an intranet- We are not aware of any potential non-compliance during based system covering safety, quality and environmental the year with health and safety legislation or other health management requirements. The system is reviewed on an and safety requirements, except as set out below. ongoing basis and 39 of the 215 procedures were reviewed We had two outstanding improvement notices issued in during the year to ensure relevance with current operations. Victoria, referred to in last year’s report. We complied with The OMS includes links to codes of practice and regulators’ one notice, relating to the management of change at our home pages and health, safety and environment reference Swan Hill facility. The second notice, relating to storage documents. The OMS is available to employees through our quantities at our Deer Park terminal, was withdrawn by the intranet system. Victorian WorkCover Authority. ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) As part of the Major Hazard Facilities oversight process, two improvement notices were issued by the Victorian Our EMS is an integrated part of the OMS and is consistent WorkCover Authority for our Swan Hill terminal in April with the principles of the international standard ISO 2005. We complied with one notice which was issued to 14001. We have maintained our third party certification to clarify the control of intrinsically safe electrical equipment AS/NZS ISO 14001 (Environmental Management Systems) in the terminal. We are working to comply with the other at our Myaree and Kwinana sites since 1998. Third party notice issued to improve our control of testing and data certification has not been sought at any other sites. control for LPG vessel safety relief valves. QUALITY SYSTEM The Safety Report for our Brisbane gas terminal was subject to an audit by Queensland authorities in April 2005. Two Our Quality Management System is compliant with directives were issued from this audit in addition to a AS/NZS 9001. Surveillance audits were held at the number of recommendations. One was to undertake an Pinkenba and Myaree sites in the year and no non- assessment of risks associated with spark ignition forklifts conformances were identified. used in hazardous zones. The other was to improve our existing system addressing management of change at the terminal. We are working to comply with both directives. We have a system in place to ensure that small cylinders (nine kilograms and below) we supply for sale are tested “Any changes to environmental legislation and comply with the relevant Australian Standard at the time of supply and that customer-owned cylinders are not in the states and territories in which we filled by us if they are out of date. We have a process in operate are monitored through a company that place which endeavours to ensure that LPG cylinders and vessels owned by us are tested and are compliant at the specialises in environmental law.” time of supply and when re-filled. However, at other times, there may be some cylinders and vessels which are out of date. We have no effective method of recording the number

46. Social Responsibility Report 2005 SAFETY MANAGEMENT SYSTEM (SMS) We were subject to a triennial audit of our Safety Management Figure: 1 System, in accordance with AS/NZS 4801 in May 2005 and no significant issues were identified. Certification was REMNANT GAS RECOVERY TESTS extended to our Brisbane terminal in June 2005.

OTHER MANAGEMENT SYSTEMS 2004/ 05 As part of the ongoing implementation of our Oracle system, we developed and introduced a training database CYLINDERS TESTED to replace older systems. The database is currently being 9kg 60,243 used to capture health, safety and environment training. 18kg 4,061 We continue to use our compliance database to record information relating to drivers, trucks, terminals 45kg 42,269 and contractors. 190/210kg 1,350

POLICY ANNUAL TOTAL 107,923 We have formal policies for quality, safety, the environment and training. Each policy has been developed in accordance with the relevant Australian Standard. Our policies are displayed on our intranet and at our operating sites. We intend to have five prime movers and four rigid vehicles The safety and environment policies are also available on converted from diesel-powered engines to LNG-powered the internet. engines over the next three years. It is also proposed that 10 We introduced a compliance policy in June 2005. This trucks be converted to the more fuel efficient Euro 4 diesel policy is consistent with Australian Standard 3806 – engines over the next year. Compliance Programs. Our greenhouse gas emissions were estimated to be 17,513 47 tonnes of carbon dioxide equivalent, up two per cent on last year, and this equates to 34 kilograms of carbon dioxide Environmental equivalent per bulk tonne of LPG delivered, up 0.4 per cent on last year. Air (atmospheric emissions) The only sources of greenhouse gas emissions that we DUST have not included are contractor vehicle fuel use for fuel purchased from outlets other than preferred BP A dust suppressant was applied to the road surface at Deer locations, waste disposed off-site and a small amount of Park in August 2004 addressing the issue referred to in last natural gas used in office kitchens. As we did not measure year’s report. Kleenheat gas these we were unable to estimate associated greenhouse The bitumen area at Kwinana was expanded as part of gas emissions. the truck wash facility upgrade, resulting in less area from which dust can be generated on the site. The greenhouse gas emissions were largely due to vehicle fuel use (approximately 82 per cent) and electricity ODOUR consumption (approximately 18 per cent). In its natural state, LPG is odourless. For safety reasons it NOISE is necessary to add a small amount of ethyl mercaptan to give the gas a distinctive smell and to allow its presence to We received no noise complaints. be easily detected should a leak occur. An odour release is OTHER EMISSIONS associated with the venting of LPG to the atmosphere. We are not aware of any emissions of ozone-depleting LPG emissions are minimised through the cylinder exchange substances such as chlorofluorocarbons (CFCs), halons, programme and remnant gas recovery at our testing carbon tetrachloride, hydrochlorofluorocarbons (HCFCs), stations. During the year 107,923 cylinders were tested hydrobromofluorocarbons (HBFCs), methyl bromide or and our remnant gas recovery rate from tested cylinders bromochloromethane (BCM). remained constant at 2.2 kilograms per cylinder, with a record amount of 242 tonnes of LPG being recovered. The Asbestos air monitoring was conducted at our Osborne rate can be affected by the number of different cylinder Park GasHouse in January 2005. All results were below the sizes tested during a year and the amount of unused LPG in detectable limit of 0.01 fibres per millilitre and therefore the cylinders. We did not record remnant gas recovery by below WorkSafe Western Australia’s limits for asbestos cylinder size, but the numbers of each cylinder size tested fibres in air. are set out in Figure 1. Available literature on unflued heater emissions was reviewed during the year and a paper on Frequently Asked GREENHOUSE GAS EMISSIONS Questions in relation to unflued heater emissions is being LPG produces up to 15 per cent less greenhouse gas prepared to assist employees in answering public queries emissions than petrol. This was promoted through our on the issue. “Environmental Benefits of LPG” training in an effort to increase LPG usage and decrease greenhouse gas Waste emissions. As vehicles are changed over in the passenger fleet, LPG vehicles are purchased, wherever practicable, to SOLID WASTE minimise the fleet’s greenhouse gas emissions. Dedicated The type of waste generated depends on the nature and LPG and dual fuel vehicles now constitute 99 per cent of size of the operation. Unmanned depots do not produce our passenger fleet. any solid waste. Solid waste at other sites may include By integrating dual fuel and dedicated LPG vehicles into paper, cardboard, cylinders, valves, plastics, aluminium, our fleet instead of solely running dedicated petrol vehicles, glass and wood. The amount of solid waste generated is not our greenhouse gas emissions are up to 248 tonnes per measured but amounts of steel and brass sent for recycling annum less than they would otherwise be. are recorded.

47. Social Responsibility Report 2005 LIQUID WASTE Resource usage Wastewater management was assessed at 18 of our 26 sites ENERGY conducting cylinder or truck washing operations. Potential non-compliances at these sites will be addressed in the Energy use during the year related primarily to transporting coming year. Waste oil is no longer generated at our Myaree LPG and electricity consumption at our sites. site as the garage was closed down during the year. Some of To expand on the energy audits undertaken at the Niddrie our trucks are serviced at the Wandin terminal in Victoria. regional office in Victoria and the Kwinana terminal last Waste oil is collected there by a contractor mechanic and year, energy management reviews commenced at branches taken to a recycling centre for treatment. and terminals throughout Australia. The purpose of the reviews was to identify possible energy saving opportunities RECYCLING INITIATIVES that may exist. Fourteen energy reviews were undertaken Approximately 57 tonnes of brass and 324 tonnes of during the year. steel were sent for recycling from our operations across Total energy consumption was estimated to be 217,313 Australia, compared with last year’s 30 tonnes and 172 gigajoules, up 4.8 per cent on last year. tonnes respectively. Our total energy consumption per bulk tonne of LPG This year we also commenced an improved recycling delivered was estimated to be 0.42 gigajoules, up three per program for our office waste at Myaree. cent on last year. The timber from the demolition of the Myaree cylinder- Energy sources are detailed below. filling ramp was sold to an employee for reuse. FUEL We also participated in the Cerebral Palsy Association Petrol, diesel and LPG accounted for 95 per cent of our total mobile phone recycling programme. energy consumption by gigajoule. Our petrol, diesel and Land LPG consumption was 127 kilolitres, 4,792 kilolitres and 684 kilolitres, respectively. 48 CONTAMINATION Both the kilometres travelled and litres of diesel consumed, Contamination is unlikely to result from our LPG operations per tonne of bulk LPG delivered, have been determined. as LPG vaporises at atmospheric pressure, preventing it The kilometres travelled per bulk tonne of LPG delivered from entering soil or water resources. has been reduced from 26 last year to 20. The efficiency of diesel use has decreased with 9.2 litres of diesel being Some of the sites we lease in New South Wales are consumed per bulk tonne delivered compared with contaminated from previous uses. We received a letter from 8.9 litres last year. the Department of Environment and Conservation advising that land incorporating our Nowra site had been declared A vehicle tracking and fatigue management software, a remediation site in accordance with the Contaminated “vTrack”, was installed on 15 of our bulk tankers this year. The software displays in real-time the location and speed

Kleenheat gas Land Management Act 1997. Shoalhaven City Council subsequently advised us that they intended remediating the of a tanker and the time and distance that the vehicle has site, but no remediation activities were undertaken during travelled. Transport efficiency improvements are resulting in changes being implemented to reduce the amount of the year. The site we lease at Camellia is contaminated. It kilometres travelled. The system will be installed on all of is concreted which assists in preventing incident rainwater our tankers over the next year. from spreading the contamination. The Myaree site was remediated. The underground waste ELECTRICITY oil storage tank and the impacted soil around this tank Electricity accounted for five per cent of our total energy were removed. Groundwater bores were installed and consumption by gigajoule. Our electricity consumption was water analysis indicated that no groundwater impacts likely estimated to be 2,888,588 kilowatt hours. to be associated with the underground waste oil storage NATURAL GAS tank were detected above drinking water guidelines. The impacted soil beneath the cylinder-filling ramp was We are not aware of any significant use of natural gas. removed leaving the area suitable for current commercial/ industrial land use. Water We reviewed the status of four sites formerly leased by us CONSUMPTION in Western Australia for the operation of Kwik Fuel service Water use during the year related to truck washing stations following expiry during the year of the final lease (undertaken at 38 per cent of our sites), cylinder washing on the Osborne Park site. (14 per cent of sites) and fire deluges (installed at 40 per The installation and monitoring of a final groundwater cent of sites). monitoring bore at a former site leased in Yokine indicated As many of our locations are leased properties without a the groundwater was not contaminated. site-specific water meter, water consumption was not able Further testing of a site in Pinjarra, formerly leased by us, to be monitored. indicated that there was little evidence of lateral contaminant Our water sources included: migration from the source point. • scheme water (used at 98 per cent of sites); Biological remediation through in-situ technologies was • groundwater abstracted through bores (two per cent); undertaken at a site southeast of Perth resulting in reduced • surface water taken from streams, rivers and rain hydrocarbon impact on the groundwater. We intend to catchment dams (four per cent); and continue to remediate the site in addition to monitoring natural attenuation. • reused/recycled water (six per cent). An assessment identified groundwater hydrocarbon impact REUSE AND RECYCLING subsequent to the conclusion of our lease at Osborne Park. Fire deluge systems are erected above our bulk storage An investigation was conducted into the likely cause of this tanks where required. At Channel Island in the Northern impact. We will contribute to the remediation of the site if Territory and Kwinana, the released deluge water flows we are responsible for the contamination. back into a water storage dam for reuse.

48. Social Responsibility Report 2005 Figure: 2 Figure: 3

LOST TIME INJURY FREQUENCY RATE* NUMBER OF WORKERS COMPENSATION CLAIMS

1 July 00 - 30 June 05 (as at 30 September 05) *Contractor hours and LTIs included 59 60 6.2 49

3.8 39 23

1.4 1.4 0.0

01 02 03 04 05 01 02 03 04 05 New cylinder washing facilities were installed at Deer Park Hazard and risk and Gepps Cross that recycle the water through the wash unit. A new truck wash facility that reuses the water was PROGRAMMES installed at Kwinana. We continued to work with our Health Safety and Environment improvement plan through the year. The plan In the coming year new cylinder washing facilities focuses on strategies such as risk management, people and incorporating the recycling of water will be commissioned training, planning and performance indicators along with at Kwinana, Winnellie, Camellia and Pinkenba. other topics. DISCHARGES TO SURFACE AND GROUNDWATER We have introduced a global positioning system (GPS) 49 At sites other than Kwinana and Channel Island, the deluge based tracking system (vTrack), installed in our bulk haulage water discharges to the natural ground surface. vehicles to ensure issues such as fatigue management compliance and optimal scheduling can be managed. Currently, 15 of our 110 vehicles have been ﬁtted. During the year, our heavy haulage vehicles were involved Safety and health in 13 on-road accidents, an increase of three from last year, LOST TIME and our passenger vehicles were involved in 28 on-road accidents, a reduction of two from last year. Our Lost Time Injury Frequency Rate (LTIFR) was 1.4

(compared with zero last year) see Figure 2, and during EMERGENCY RESPONSE Kleenheat gas the year, there were two LTIs. Our Average Time Lost Rate, As stated previously, we conducted both emergency and which provides a measure of the severity of such injuries, crisis management exercises during the year. was 1.7 (compared with zero last year). These statistics include contractor hours and injuries. MATERIALS HANDLING AND STORAGE After trialling a lifting device for our GasHouses in 2004, we Safety statistics are distributed and discussed by management progressively introduced these into all GasHouses during each month and reported to our Board every two months. the year. WORKERS COMPENSATION We also expanded the use of tailgate loaders to any replaced There were 23 workers compensation claims reported, GasHouse utility vehicle during the year. A total of seven relating to occurrences during the year, compared with 60 vehicles were ﬁtted. last year (see Figure 3). RISK ASSESSMENT The large number of workers compensation claims, relative With the introduction of a new refurbishment shed at our to LTIs, is a result of our high response injury management Kwinana terminal, and with employee consultation, we used programme which results in many precautionary visits to our change management and risk assessment processes medical practitioners for minor injuries. prior to shed construction and ﬁt out.

(Left) Compliance Manager Russell Purdy testing a Lyco Loader, a mechanical aid to help reduce manual handling injuries when loading heavy merchandise onto utility vehicles. (Right) Melissa Hewitt using a Lift Aide mechanical device to move heavy stock at the Myaree GasHouse in Western Australia.

49. Social Responsibility Report 2005 As foreshadowed last year, the damaged asbestos cylinder- During the year, we assisted our dealer at Foster in Victoria ﬁlling ramp at Myaree was removed. The asbestos cylinder to respond to a number of directives from the Victorian ﬁlling shed at Pinkenba and damaged asbestos at Camellia WorkCover Authority in relation to cylinder storage and is intended to be sealed this coming year. handling. These directives were resolved successfully.

Deficiencies with the paint spray booth at our Pinkenba FEEDBACK/COMPLAINTS site in Queensland, identified in last year’s report, were Most customer issues are handled first by our Customer rectified with the installation of a new spray booth using a Service Centre (CSC) officers. If an issue requires further water filter, rather than a fibre filter. attention, the matter is dealt with by the CSC Manager, EMPLOYEE WELLBEING supervisor or other senior personnel. We also handled 230 We produced another employee calendar in the year. As written feedback issues during the year. with previous calendars, the theme was based on safety LIAISON WITH AUTHORITIES with this year having ‘Safety Sam’ as the focus. We continue to maintain a working relationship with state, The Safety Sam campaign also continued in the year with territory and federal government authorities to ensure we the focus on fitness for work, manual handling and safety deal with any compliance issues that arise. meeting attendance. Employees were again offered the opportunity to have Communication influenza vaccinations with 105 taking up the offer. NEWSLETTERS AND REPORTS We also ran yoga classes for our employees, with 17 employees attending the sessions. We continue to distribute “Well at Work” newsletters to our employees. This year we have also distributed a “Week in Review” newsletter to our staff to replace Community older publications. WEBSITE 50 Stakeholders Our website (www.kleenheat.com.au) includes information Our stakeholders include our employees, our customers, about our operations for the community, including our suppliers and other contractors, relevant government environmental, safety and health information relating to agencies, local communities in which we operate, and our business. shareholders in our parent company, Wesfarmers Limited. LIAISON GROUPS We again sponsored the Community of the Year Award in We remain a member of the Australian Liquefied Petroleum Western Australia and Victoria and the Regional Achiever Gas Association (ALPGA). One of our senior executives is Award in New South Wales. national president of the association and other staff have We conducted a number of regional conferences in October been elected to chairman positions in the New South Wales Kleenheat gas 2004. The conference objectives were aligned to our and Victorian branches. We also have representation on the business plan strategies and used round table discussions. ALPGA technical committee. We held another series of conferences in May 2005 with We remain a full member of the Kwinana Industries Public 193 employees attending. The theme of these conferences Safety Group and an associate member of the Kwinana was to build a customer-focused and high performance Mutual Aid Group. organisation. We again used the round table format to assist We continue to be a member of the Gateway Mutual Aid in achieving the objectives. Group in Queensland. In conjunction with the Kwinana Industries Public Safety Liaison Group (KIPSLG) we presented an overview of our Kwinana operations, Safety Report and Quantitative Risk “We again sponsored the Community of the Year Assessment to members of the local community, other Award in Western Australia and Victoria and the Major Hazard Facilities operators and government agency representatives in August 2004. Regional Achiever Award in New South Wales.”

(Below) Kwik Gas cylinder processing in the new facility at the Kwinana gas terminal.

50. Social Responsibility Report 2005 (Above) Directors Kevin (left) and Tony Sands (right) with the Hon Ian Campbell, Federal Minister for the Environment and Heritage, (centre) with one of Sands Fridgelines LNG-powered prime movers. Case Study 51

Liquefied Natural Gas (LNG ) is being used as a fuel for Major environmental solutions companies, including SIT A, the heavy-duty v ehicle mark et in North America and the hav e chosen the Cummins C-Gas-P lus 250- 280hp dedicated United Kingdom. Wesfarmers LNG has pioneered LNG as LNG engines to power their refuse compactor v ehicles. an alternativ e fuel for heavy v ehicles in Australia. These engines are recognised by the AGO as reducing both greenhouse gases and particulates. The Caterpillar C-15 dual fuel engine has been dev eloped to run on LNG with the assistance of a grant from the LNG is producing significant environmental benefits and is reducing the reliance on diesel. Based on current prices, Australian Greenhouse Office (AGO) specifically for the

LNG can reduce a company’s fuel bill by up to 30 per cent Kleenheat gas Australian mark et, which requires a reduction of greenhouse compared to diesel. LNG can produce less greenhouse gases gas emissions of greater than 5 percent abov e the C-15 and to xic emissions than diesel and can reduce engine noise diesel engine. Additional support from the AGO Alternativ e by signiﬁcant amounts. Fuels Conv ersion Programme has seen a number of ﬂeet While this business is still in its early stage, the number of operators, such as Sands Fridge Lines in Western Australia LNG v ehicles on Australian roads is expected to increase and Murray Goulburn in Victoria adopting LNG v ersions of from 32 in August 2005 to appro ximately 60 by the end of this engine. the calendar year, being powered with both the Cummins and Caterpillar engines.

Priorities for the future

Contribute to the management of contaminated sites for which we are responsible.

Install energy-efﬁcient Euro4 engines and LNG engines in trucks.

Progress cylinder facility upgrades at Kwinana, Darwin, Camellia and Pinkenba.

Reduce our LTIFR to zero.

Assess and review our compliance levels and formulate plans to address any issues.

Progress training and awareness of Fitness for Work.

51. Social Responsibility Report 2005 52.

Wesfarmers LPG

We own and operate a plant at Kwinana in Western Australia which extracts LPG from the natural gas stream in the Dampier to Bunbury pipeline.

Production was slightly lower during the year but plant capacity remains at about 350,000 tonnes per annum. We employ about 45 people. www.wesfarmerslpg.com.au

(Above) Process Engineer, Robert Antony conducting a ﬁrewater pump performance test.

Report priorities Outcomes

No workplace injuries. Not achieved. We had two employee injuries and one contractor injury, each requiring medical treatment.

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

Identiﬁcation and control of hazards. Achieved. Use of site Permit to Work system. Hazard and Operability (HAZOP) studies conducted for the LPG export long circulation system and the mini LNG plant expansion.

No signiﬁcant release of hydrocarbons to the atmosphere. Achieved. No signiﬁcant release of hydrocarbons to the atmosphere.

Compliance with environmental noise regulations. Achieved. Noise measurements conducted conﬁrm compliance following the completion of noise reduction projects.

Meet reporting requirements of Contaminated Not achievable. Contaminated Sites Act 2003 not yet proclaimed. Sites Act 2003. 53

Implement Fitness for Work (Alcohol and Drugs) policy. Achieved. Policy introduced on 1 August 2004. Initial drugs and alcohol screen testing and random drugs and alcohol testing completed.

Continue environmental sampling to verify greenhouse Achieved. Sampling conducted on train one and train two emissions. recompressors and Ruston generator.

Overview The main challenge facing our business on an We continued with the implementation of recommendations Wesfarmers LPG Wesfarmers ongoing basis is the safe operation of our plant which (approximately 65 per cent completed), following the last minimises any adverse effect on the environment and the independent compliance audit of our Safety Report in local community. September 2003, as part of our requirements as a major hazard facility under the national standard for the control In dealing with this challenge, the three main environmental of such facilities. An independent audit of our Safety Report areas on which we focused our attention during the year will be conducted next year. were compliance with the Environmental Protection (Noise) The existing lead and zinc soil contamination discussed Regulations 1997, ensuring compliance with our Department in previous reports will be reported to the DoE when the of Environment (DoE) licence conditions and projects to Contaminated Sites Act 2003 comes into effect. divert LPG emissions from plant equipment to the flare. We conducted environmental sampling on plant gas- We conducted noise measurements to assess and confirm burning equipment to verify greenhouse gas emissions. compliance with the noise regulations, following the Sampling indicated that the average oxides of nitrogen installation of an acoustic sound barrier on the gas turbine (NOx) emissions from the train one recompressor, train alternator (Ruston generator). two recompressor and the Ruston generator were in line with expectations. We received an infringement notice from the DoE as a warning for the discharge of dark smoke lasting in excess Our Fitness for Work (Alcohol and Drugs) policy was of four minutes in one hour in breach of the Environmental introduced in August 2004, with the policy being formally launched by the General Manager in September 2004 Protection (Unauthorised Discharges) Regulations 2004 and following an initial drugs and alcohol screening test we had one other such incident, but no infringement notice on-site. was issued. A highlight of this year’s safety performance was our Projects to redirect minor LPG emissions which occur achievement of a zero Lost Time Injury Frequency Rate during the sampling of plant items by laboratory personnel (LTIFR) for employees and contractors. We achieved two for domestic and export products were progressed and years LTI-free in February 2005 and this performance was completed this year. recognised by presenting sports/travel bags to site personnel The two main safety areas on which we focused our attention for their efforts. during the year were the ongoing protection of employees and visitors to our plant and compliance with the national standard for the control of major hazard facilities. Business management We continued our commitment to providing a healthy and Training safe workplace for all employees and visitors to the Kwinana extraction plant and our gas export facilities. Identification ENVIRONMENTAL and control of hazards and prevention of incidents and Our induction programme for all new employees and injury remained the highest priority. contractors addresses environmental awareness of their

53. Social Responsibility Report 2005 work area with emphasis on response to product spillage We will continue to operate our plant in a way that and general housekeeping. There were 198 inductions minimises smoke during normal operation. carried out this year associated with planned maintenance The DoE has also noted a smoke discharge from our flare activities and new projects. In addition, our training on 5 January 2005, but no infringement notice was issued as programme covers procedures for managing environmental the department did not time the discharge. This smoke was licence conditions. the result of an unplanned shutdown caused by a power HEALTH AND SAFETY supply failure. We believe that it lasted about five minutes. We conducted voluntary health and fitness assessments for NATIONAL POLLUTANT INVENTORY (NPI) employees and long-term contractors as part of our two Emissions notifiable under the NPI were estimated for yearly programme. See the “Case Study” on page 59. oxides of nitrogen, carbon monoxide, nickel carbonyl, heavy All employees and contractors must attend a safety metals and associated compounds and particulate matter. induction programme before being allowed access to the Data for the 2003/2004 reporting period was submitted to process area to ensure that they are aware of hazards, work the DoE. Detailed information is available at: www.npi.gov. permit requirements, occupational health and safety and au. All our substance emissions for last year were ranked emergency response procedures. by the NPI as “low”.

All employees undergo vocational training to meet the HEALTH AND SAFETY requirements of their position with competencies measured against national standards (where available). In addition, We are not aware of any potential non-compliance during a comprehensive competency-based training programme is the year with health and safety legislation or other health in place for all process operators, involving demonstration and safety requirements, except as set out below. of acquired competencies against internal and national There are some minor levels of non-compliance with the standards. The review of the internal competency standards, Department of Industry and Resources (DoIR) licence including training workshops, continued this year to ensure conditions which are reported under Safety Management 54 that they matched current plant status. There were numerous System below. changes made to the standards as a result of the review LICENSING AND APPROVALS with approximately 35 per cent completed. This process is ongoing. We are not aware of any potential non-compliance during the year with licensing or approval conditions or other requirements, Our Fitness for Work (Alcohol and Drugs) policy was except as set out above under “Environmental”. introduced in August 2004, with the policy being formally launched by the General Manager in September 2004, Our plant operated under licences issued by the DoE and following an initial drugs and alcohol screening test on- the DoIR. site. A total of 110 random tests were conducted with three positive tests in breach of our policy. Those people returning Management systems Wesfarmers LPG Wesfarmers positive results to either alcohol or illicit drugs screening ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) were subject to disciplinary procedures which may range We do not have an EMS. Our greatest potential environmental from counselling to, ultimately, dismissal as provided by issue is a significant hydrocarbons release. As this is also our policy. our greatest potential safety issue, our environmental EMERGENCY policy and procedures are, in effect, managed through our A comprehensive emergency response training programme Safety Report and our DoE licence conditions. We have an is in place relevant to each employee’s position. This includes environmental policy covering the site. basic, intermediate and advanced fire fighting, breathing QUALITY SYSTEM apparatus training, search and rescue and fire ground command programmes. Training under this programme is Whilst we recognise that management of quality of our conducted annually. products is a key element of our business, we do not have a documented formal quality management system. We have a As part of our Safety Report requirements, 32 employees Quality Assurance system meeting the requirements of ISO completed an advanced fire fighting course, 10 completed 9001 for the testing, inspection and servicing of safety relief the fire ground command course and 15 went through the valves. These valves are tested at prescribed periods. An fire awareness and control programme. independent audit was undertaken in February 2005 and our certification continues. Compliance SAFETY MANAGEMENT SYSTEM (SMS) ENVIRONMENTAL All health and safety policies and procedures are referred We are not aware of any potential non-compliance during the to in our Safety Report which is subject to independent and year with environmental legislation or other environmental regular audit and overseen by the DoIR. requirements, except as set out below. The status of action plan items following recommendations We received an infringement notice from the DoE as a of a compliance audit of our Safety Report conducted in warning for the discharge of dark smoke lasting in excess September 2003 were discussed and progressed with DoIR. of four minutes in one hour in breach of the recently A further compliance audit is scheduled for next year. introduced Environmental Protection (Unauthorised Discharges) Regulations 2004. At the time of this incident, Specific health and safety procedures cover working with we were starting up our gas extraction plant after a two- high voltage electricity, accident and incident investigation, day shutdown for maintenance activities. In this instance, a manual handling, working in confined places, height safety pressure activation switch failure and operator error meant and job hazard analysis. that the flare air fan was not activated in time to disperse All modifications to the operating plant are reviewed smoke at the flare. Our plant is designed for smokeless and approved by senior plant management prior to operation during normal operation, but not during upset implementation. Procedures ensure that all changes are and emergency circumstances. fully documented to allow independent audit and review.

54. Social Responsibility Report 2005 POLICY The greenhouse gas emissions were largely due to fuel gas We are committed to providing a healthy and safe workplace consumption (approximately 84 per cent) and fugitive gas for all employees and visitors to the Kwinana extraction emissions due to gas turbine starter gas (approximately 11 plant and our gas export facilities. Identification and control per cent). of hazards and prevention of incidents and injury are of NOISE the highest priority. This is achieved through a consultative The extraction plant operates 24 hours a day. There are process which defines and implements training, policies numerous items of rotating equipment giving rise to a and procedures for the wellbeing of all employees. The occupational health and safety committee includes our four low level of background noise at the plant boundary. We elected safety and health representatives. conducted noise measurements which confirm compliance with the environmental noise regulations.

OTHER EMISSIONS Environmental We are not aware of any emissions of ozone-depleting substances. Air (atmospheric emissions) We have not yet prepared our report to the NPI for the DUST 2004/2005 reporting period or finalised our data estimates, however in 2003/2004 our three most significant emissions To control dust, large areas of grass have been planted and were oxides of nitrogen (NOx) (330,000 kilograms to air), are maintained. carbon monoxide (96,000 kilograms to air) and particulate ODOUR matter (6,800 kilograms to air). Further information is Propane and butane are naturally odourless. For safety available at: www.npi.gov.au. All our substance emissions reasons, we are required by legislation to inject low levels for last year were ranked as “low” by the NPI. of ethyl mercaptan (odorant) into the gas. This gives it a There have been no environmental incidents involving distinctive odour allowing leaks to be detected. The injection significant release (defined as a release which may affect 55 system is closely monitored as even minor drips can give areas outside the plant) of LPG, natural gas or condensate rise to offensive odours. Any leak is quickly repaired and to the atmosphere since the commencement of plant spillage contained and neutralised. Two odour complaints operations in 1988. There have been occasional minor LPG were referred to us by industrial neighbours but on both releases (defined as those contained within the plant) that occasions the odour was not released by us. have been quickly brought under control.

GREENHOUSE GAS EMISSIONS During plant shutdowns, or occasionally to control pressure in operating vessels, gas has to be released from the process Our greenhouse gas emissions were estimated to be 147,450 plant. This gas is safely disposed of through combustion tonnes of carbon dioxide equivalent, up 13 per cent on flares. The flare tips are continuously monitored in the last year, and this equates to 412 tonnes of carbon dioxide control room via a closed circuit camera. equivalent per day of production, up 12 per cent on last LPG Wesfarmers year. These increases are mostly due to adopting full fuel In the event of a high flaring rate, additional combustion cycle emission factors for natural gas this year, rather than air is fed to the flare tips to minimise the formation of point-source emission factors which we previously used. black smoke. We have used a rate per day of production rather than a rate per tonne of production because our plant operating requirements mean that our greenhouse gas emissions are more or less constant irrespective of the amount of LPG produced and it is therefore a more meaningful measure “During plant shutdowns, or occasionally to when looking at reducing our greenhouse gas emissions. control pressure in operating vessels, gas has to This figure includes the following substance emissions: be released from the process plant.”

• 131,355 tonnes of carbon dioxide (CO2);

• 756 tonnes of methane (CH4); and

• 226 kilograms of nitrous oxide (N2O).

(Left) Process Operator, Greg Johnston testing the quality of water used for NOx reduction. (Right) Plant Chemist Jennifer Seneriratne sampling LPG for quality testing.

55. Social Responsibility Report 2005 (Left) Maintenance Technician Kevin Gohrt testing safety relief valves. (Right) Storeperson Justin Waddell taking an alcohol breath test on arrival at work.

Waste Total energy consumption was estimated to be 2,115,667 gigajoules, down two per cent on last year. SOLID WASTE Our total energy consumption per tonne of production 56 Solid waste during the year consisted primarily of general was estimated to be 6.8 gigajoules, up three per cent on site waste. last year. Our total solid general waste stream during the year was Energy sources are detailed below. estimated to be 759 cubic metres, up four per cent on last year. All of this is disposed of as landfill. There is no landfill FUEL of waste on-site. Petrol, diesel and LPG accounted for 0.07 per cent of our Total solid waste disposed of to landfill per thousand tonnes total energy consumption by gigajoule. Our petrol, diesel of production was estimated to be two cubic metres, the and LPG consumption was estimated to be 21 kilolitres, same as last year. 18 kilolitres and seven kilolitres, respectively. We also sent 4.8 kilolitres of LPG to the flare during tanker LIQUID WASTE loading operations. Wesfarmers LPG Wesfarmers Liquid waste during the year consisted primarily of used ELECTRICITY lubricating oil, seal oil and heat transfer oil. Electricity accounted for approximately one per cent of Our total liquid general waste during the year was estimated our total energy consumption by gigajoule. Our electricity to be 41,500 litres, up 248 per cent on last year. This increase consumption was estimated to be 7,477,800 kilowatt hours. was due to the removal of 37,000 litres of heat transfer oil from our gas-fired oil heater. NATURAL GAS All of our lubricating oil, seal oil and heat transfer oil waste Natural gas accounted for approximately 97 per cent of our is collected by a contractor for recycling. total energy consumption by gigajoule. Our natural gas consumption was estimated to be 2,063,608 gigajoules. RECYCLING INITIATIVES Paper and cardboard recycling bins continued to be used Water as part of our paper products recycling policy and about 78 cubic metres of paper and cardboard were removed by our CONSUMPTION waste management contractor. Water use during the year related primarily to plant processes and general site amenities, such as kitchens Land and bathrooms.

FLORA AND FAUNA Total scheme water consumption was estimated to be 20.3 megalitres, up 54 per cent on last year. This increase was Extensive landscaping including trees and shrubs is due to the water treatment plant being off-line for about ﬁve maintained to improve the appearance of the facility and months last year. Our total scheme water consumption per minimise dust. tonne of production was estimated to be 65 litres, up 62 per CONTAMINATION cent on last year. The existing lead and zinc soil contamination discussed REUSE AND RECYCLING in previous reports will be reported to the DoE after the The majority of water used for deluge system testing is Contaminated Sites Act 2003 comes into effect. returned to the storage pond for reuse.

REHABILITATION DISCHARGES TO SURFACE AND GROUNDWATER After completion of minor projects on the plant and associated Storm water run-off from the paved sections of the facilities, excavated areas were ﬁlled and reinstated. processing areas is directed to oil/water interceptors where any oil present is skimmed off and recovered. Resource usage A licensed contract waste disposal ﬁrm removed all this oily ENERGY water waste, totalling 10,450 litres. Energy use during the year related primarily to plant Three bores operating on the site provide water for garden processes. reticulation and for emergency response.

56. Social Responsibility Report 2005 Figure: 1 Figure: 2

LOST TIME INJURY FREQUENCY RATE* NUMBER OF WORKERS COMPENSATION CLAIMS

1 July 00 - 30 June 05 (as at 30 September 05) *Contractor hours and LTIs included

3 7.2

2 2

0.0 0.0 0.0 0.0 0

01 02 03 04 05 01 02 03 04 05

Safety and health WORKERS COMPENSATION There were two workers compensation claims reported, Lost time relating to occurrences during the year, compared with three last year (see above). A highlight of this year’s safety performance was our achievement for a second consecutive year of a zero Lost Hazard and risk 57 Time Injury Frequency Rate (LTIFR) with no LTIs during the year (see Figure 1). Our Average Time Lost Rate, which PROGRAMMES provides a measure of the severity of such injuries, was Our plant has been designed to have a very low also again zero. We achieved two years LTI-free in February environmental, health and safety risk. All products will 2005 and this performance was recognised by awarding evaporate if released to atmosphere, leaving no soil or sports/travel bags to site personnel for their efforts. These water-contaminating residues. statistics include contractor hours and injuries. We conducted HAZOP studies for the LPG export long circulation system and the mini LNG plant expansion. CSBP We did however have two employee injuries and one contractor injury during the year, each requiring EMERGENCY RESPONSE Wesfarmers LPG Wesfarmers medical treatment. We have an Emergency Management Plan as part of our Safety statistics, including information on employees and licensing requirements as a Major Hazard Facility. This plan contractors, are reported monthly to Wesfarmers Energy. describes the organisation and training of employees and

(Below) Dr Graham Bates performing a lung function test on Process Engineer Robert Antony (left) during employee health and ﬁtness assessments held at the plant.

57. Social Responsibility Report 2005 contractors to reduce the risk to personal safety and the surrounding environment in the event of an emergency. Community An emergency desktop exercise involving a release of heat STAKEHOLDERS transfer oil and fire at the gas fired oil heater was carried Our stakeholders include our employees, our customers, out in December 2004. The exercise involved an injury relevant government agencies, the local Kwinana community to a long-term contractor, which results in a fatality, and in which we operate and shareholders in our parent role play to simulate our on-site emergency response with company, Wesfarmers Limited. external resources including Wesfarmers Energy, emergency Employees are encouraged to provide feedback on services, industrial neighbours and government agencies. this report. The exercise facilitator’s report concluded that we should We are represented on the executive committee of the have confidence in our emergency management capability. Kwinana Industries Public Safety Liaison Group which Three site emergency muster point exercises were includes representatives from industry, regulatory authorities, successfully carried out to test employee understanding of local government authorities and the local community. and compliance with emergency response procedures. FEEDBACK/COMPLAINTS MATERIALS HANDLING AND STORAGE Senior management handles any complaints from We operate under an annual DoIR licence as a Major Hazard the community. Facility covering the storage of dangerous goods, which We maintain an environmental complaints register. includes LPG, condensate (pentane), liquefied natural Two odour complaints were referred to us by industrial gas (LNG), ethyl mercaptan (odorant), liquid nitrogen, neighbours but on both occasions the odour was not flammable gas and flammable liquids. released by us.

RISK ASSESSMENT LIAISON WITH AUTHORITIES As part of a project to increase our production of LNG We maintain good working relationships with the DoIR 58 a Quantitative Risk Assessment previously accepted by and the DoE through our involvement with regular Safety DoIR was reviewed and accepted for the mini LNG plant Report meetings and communications meetings where we discuss our operations. expansion. The DoE advised us that the increase to a six tonnes per day plant did not require a Works Approval. ACTION GROUPS We received acceptance from DoIR that an independent fire We are a full member of the Kwinana Industries Council risk assessment and modifications to our firewater system (KIC) and its sub-committee the Kwinana Industries Public meets the intent of AS 3846 (the handling and transport Safety Group (KIPS). of dangerous cargoes in port areas), in order to ensure Member companies maintain a management system for adequate firewater supplies during LPG export shipments. response within the Kwinana industrial area to control emergencies that may arise within the boundaries of a EMPLOYEE WELLBEING Wesfarmers LPG Wesfarmers member company site. Member companies have a mutual We continued with the implementation of our Fitness for aid plan to integrate emergency management where Work (Alcohol and Drugs) policy. The policy, which includes appropriate. This plan allows member companies to obtain provisions for alcohol and drug testing was introduced in assistance from neighbours in the event of an emergency. August 2004. Voluntary health and fitness assessments including skin Communication checks were completed for employees and long-term NEWSLETTERS AND REPORTS contractors (see Case Study on page 59). This programme Information is provided through the KIC as required. The was also made available to employee partners at cost. 2004 Wesfarmers Social Responsibility Report was available We continue to provide an Employee Assistance Programme to all employees and circulated to selected stakeholders. which offers independent professional and confidential We are involved in the Kwinana Industries Council counselling to all employees and their immediate families. Community Information Service which is a public phone- We also have a childcare referral service to provide in system, established in partnership with KIC and the employees with advice about childcare services. Western Australian police service, which enables the community to find out what is happening within the Kwinana Voluntary flu vaccinations were offered to employees and industrial area. long-term contractors. WEBSITE Our website (www.wesfarmerslpg.com.au) includes information about our operations for the community, including environmental, safety and health information “Three site emergency muster point exercises relating to our business.

were successfully carried out to test employee LIAISON GROUPS understanding of and compliance with We continue to be involved in the Kwinana Industries Public Safety Liaison Group. This group allows us to formally emergency response procedures.” consult with state government departments and agencies, local government organisations and community interest groups in matters relating to our operations.

58. Social Responsibility Report 2005 (Above) Dermatologist, Dr John Crawford doing a skin assessment on Shift Case Study Controller Ricky Thomson as part of health and fitness assessments. 59 As part of our ongoing commitment to the health, saf ety This year a consultant dermatologist conducted skin and wellbeing of all employees and long-term contractors, assessments using “Molemax” screening technology to health and fitness assessments were completed this year. identify any areas of concern and advised participants on Participation in the programme is voluntary but ev eryone their skin condition and any appropriate treatment. is encouraged to tak e part as medical conditions can be A statistical report was produced which showed that identified by the consultant and dealt with as appropriate. appro ximately 33 per cent of participants had sun damage, This year the participation rate was appro ximately 81 pre-cancerous conditions or basal cell carcinomas. per cent. Giv en that the programme has run for 12 years, it provides The programme has been running ev ery two years since a good health profile for the consultant and participants to 1993 and cov ers: LPG Wesfarmers ref erence and compare their health and fitness lev els ov er • blood testing; the years as appro ximately 36 per cent of our employees • prostate checks for males 40 years of age and ov er; and hav e been involv ed with this programme since it started. • health and fitness assessments which include medical Follow -up counselling sessions were completed which giv es checks of blood pressure, lung function, body composition the participants an opportunity to discuss their results with analysis and general fitness. the consultant who advises on appropriate ways to rectify any identified health risk or mak es a ref erral.

Priorities for the future No workplace injuries.

Lost Time Injury Frequency Rate (LTIFR) of zero.

Identiﬁcation and control of hazards.

No signiﬁcant release of hydrocarbons to the atmosphere.

Meet reporting requirements of Contaminated Sites Act 2003.

Conduct an independent compliance audit of our Safety Report.

Continue Fitness for Work (Alcohol and Drugs) policy.

Continue environmental sampling to verify greenhouse emissions.

59. Social Responsibility Report 2005 60.

Industrial and safety

We are Australia and New Zealand’s market leader in the supply of maintenance, repair and operating products and safety products.

With more than 250 outlets we trade in Australia as Atkins Carlyle, Bakers Construction and Industrial, Blackwoods, 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 3,300 people. www.blackwoods.com.au www.blackwoodspaykels.co.nz www.motionind.com.au www.mullings.com.au www.bakers.net.au www.protectoralsafe.com.au www.protectorsafety.co.nz www.packaginghouse.co.nz www.nzsafety.co.nz

(Above) Customer Service Ofﬁcer Ken Harris serving a customer at the new Blackwoods Trade Centre in Wollongong, New South Wales. Report priorities Outcomes

Improve our safety performance by at least halving our Not achieved. LTIFR of 4.3, down from 5.3 last year. LTIFR each year with a target of zero LTIs. There were 25 LTIs.

Conduct training for the PeopleSoft OHSE module. Achieved. A total of 333 managers, team leaders and employees were trained in the use of our new Incident Management System, PeopleSoft OHSE.

Implement an energy reduction strategy. Achieved. Our Energy Management Procedure and Guidelines were launched in June 2005.

Establish accurate measurement systems for waste. Achieved. All branches now have a documented waste management plan which includes provision for measurement of waste.

Conduct reviews of major dangerous goods storage areas. Achieved. The dangerous goods stores in the distribution centres in all regions have been reviewed, with regions now at various stages of implementation.

Reduce the manual handling injury rate. Not Achieved. There were 77 manual handling injuries compared 61 with 75 last year. Of these, 61 were recorded in Australia, compared with 52 last year, and 16 were recorded in New Zealand, compared with 23 last year.

Identify opportunities to increase recycling. Achieved. Using the estimated waste figures published in last year’s report, we have identified recycling opportunities and we are currently undertaking a pilot project at our Blackwoods Smithfield branch which includes paper recycling initiatives.

Overview

Industrial and safety The main challenge facing our business on an ongoing to identify an opportunity for reducing usage. An energy basis is the safe operation of our distribution centres and management awareness campaign was launched during the branches in a way that minimises any potential injury or year, including quick tips on reducing consumption such as harm to our employees and contractors and any adverse switching off lights and computers when not in use. impact on the environment or the communities in which The three main safety areas on which we focused our we operate. attention during the year were conducting training in our In dealing with this challenge, the three main environmental new Occupational Health, Safety and Environment (OHSE) areas on which we focused our attention during the Incident Management System (PeopleSoft OHSE), reducing year were storage of dangerous goods, establishing manual handling injuries and implementing emergency measurement systems for waste and the identification preparedness procedures. of recycling opportunities and the management of our PeopleSoft OHSE went live on 1 July 2004, allowing for energy consumption. incident details to be entered directly into the system. A Our distribution centres hold the majority of our dangerous total of 333 managers, team leaders and employees were goods. In all regions we have undertaken a review of these trained in the use of the system throughout the year. dangerous goods stores, with the Western, Southern and Manual handling is a prevalent risk within our business, New Zealand Regions now implementing changes, whilst and this year we concentrated on identifying a strategy to the Northern and Central Regions will begin to implement address it. This strategy consists of the introduction of a any required changes in the coming year. business-wide manual handling procedure and, consequently, Our waste management systems at each branch were the undertaking of manual handling risk assessments. reviewed during the year with a view to implementing a The procedure has been made available to branches method of measuring waste. We continue to liaise with and will be implemented in the coming year through a waste contractors to assist in the measurement of our training programme. waste more accurately. Recycling opportunities were also identified. In Australia, a pilot project is being undertaken Emergency Preparedness Guidelines were made available to at our Blackwoods Smithfield branch in New South Wales branches in December 2004, with all branches now having which includes paper recycling initiatives and more implemented emergency procedures. environmentally friendly methods of waste disposal such In order to collect accurate safety, health and environmental as the introduction of a 23 cubic metre wood recycling data for each of our distribution centres and branches in bin. The aim of the pilot project is to formulate a suitable Australia and New Zealand, an OHSE survey was conducted waste disposal and recycling procedure for our business. In and surveys were returned from all our distribution centres New Zealand, a number of recycling initiatives have also and branches. been implemented. Unless otherwise stated, data provided is for our combined This year was the first year we tracked the energy usage Australian and New Zealand businesses based on the for all our branches. Data from this process enabled us survey responses.

61. Social Responsibility Report 2005 Forklifts are operated at the majority of our locations with Business management varying levels of operator licensing requirements applicable. Accredited operator training for forklift licensing is Training undertaken where required and safe operating procedures New induction procedures were implemented in are used to meet any site-speciﬁc training obligations. In Australia consisting of a speciﬁc OHSE induction and a those areas where formal licensing is not required, we have branch induction. internal training to ensure operators are competent. Incident management training was conducted throughout New South Wales WorkCover-accredited Occupational Australia, including training in the use of PeopleSoft Health and Safety Committee Consultation training OHSE, as well as training in our Incident Reporting was undertaken in September 2004 with 11 employees Procedure, Incident Investigation Procedure and Risk attending. Management Procedure. In New Zealand, formal training was conducted during the Toolbox Talk guidelines were released in Australia. The year in the following areas: objective of “Toolbox Talks” is to provide an opportunity • worksafe health and safety representatives; for management and employees to interact and discuss • supervisor training; any OHSE-related issues informally. Sixty-one of our 250 branches now undertake “Toolbox Talks” on a • Accident Compensation Corporation employer training; regular basis. • back injury prevention;

ENVIRONMENTAL • stress and fatigue; Our induction programme includes information on recycling • biosecurity awareness; and and reuse initiatives, the location and use of emergency • chemical hazards in the workplace. spill kits and energy conservation. Our environmental In New Zealand, attendance at our public OHS seminars policy and accountabilities are communicated to all new continued with 641 people participating during the year, 62 employees in our handbook and during induction. including 59 of our employees. In New Zealand, introductory training was conducted on EMERGENCY the Environmental Management System ISO 14001 for our Emergency Preparedness Guidelines were made available manufacturing employees. to branches in December 2004 and all branches have now HEALTH AND SAFETY implemented emergency procedures. Our induction programme incorporates a section on health Branch action plans include an action item for Branch and safety with topics covered including OHS consultation, Managers to ensure an appropriate number of employees incident reporting and investigation, workers compensation are trained in first aid. and injury management, first aid, emergency procedures, Training sessions in the correct selection and use of fire manual handling, personal protective equipment, workplace fighting equipment were conducted in our Southern, amenities and other position-specific items. Northern and Western Regions. Fire warden training sessions Industrial and safety All new employees were issued with a handbook which were conducted in our Western and Northern Regions. Fire contains information on the Occupational Health and Safety evacuation drills were conduced in our Northern, Southern Policy and accountabilities. and New Zealand Regions. Our primary labour hire contractor, Skilled Engineering, conduct an induction with their personnel prior to them Compliance commencing work with us. ENVIRONMENTAL Training and education has continued to be undertaken for We are not aware of any potential non-compliance during the the policies and procedures that make up our integrated year with environmental legislation or other environmental OHSE management system. requirements, except as set out below.

(Below) OHSE Coordinator David Dawes (centre) showing Angela Harvey and Andrew Wickman how to use the PeopleSoft electronic incident reporting system.

62. Social Responsibility Report 2005 An internal audit of our dangerous goods quantities and Centre in relation to traffic management. Corrective storage arrangements indicated that a thorough review actions were completed and approved by the inspector on was required and this has been undertaken in our major 22 March 2005. dangerous goods stores. Dangerous goods risks will On 19 April 2005, an inspector from the Victorian WorkCover continue to be analysed for all branches. Authority visited our Protector Alsafe Geelong branch and Whilst most of our branches in Australia provide spill kits identified minor issues regarding goods placed on the floor where required, there are 51 branches not fulfilling this in front of a hose reel and an egress door, which were requirement. This is being addressed through the relevant corrected immediately. In general, the report congratulated branch action plans. the branch on its good management and employee co- NATIONAL POLLUTANT INVENTORY (NPI) operation on health and safety issues. We do not use any of the substances listed under the NPI On 23 May 2005, an inspector from Workplace Health during the year and therefore we are not required to report and Safety Queensland issued an improvement notice under the NPI. to our Blackwoods Coopers Plains branch in relation to housekeeping, specifically stock and materials being HEALTH AND SAFETY stored in inappropriate areas blocking access and work Our OHSE Action Plans address various compliance issues areas and risking slips, trips and falls. These matters have applicable to our operations around Australia and New been rectified. Zealand including: LICENSING AND APPROVALS • electrical tagging and testing of equipment; We are not aware of any potential non-compliance during • training and appropriate licensing for moving plant; the year with licensing or approval conditions or other • emergency response including fire extinguisher servicing requirements, except as set out below or above under and emergency signage arrangements; “Environmental” or “Health and Safety”. • establishment of hazardous substances registers; Four of our dangerous goods licensed sites within our 63 • implementation of an isolation lockout tag out Southern, Western, Central and New Zealand Regions began procedure; the task of reviewing their dangerous goods processes • development of manual handling risk assessments; and implementing some changes for their larger distribution centres. • traffic management plans; In New Zealand, the Hazardous Substances and New • contractor management; and Organisms Act removed the requirement for Dangerous • audits/inspections. Goods Licenses previously held. A plan has been drafted We are not aware of any potential non-compliance during to comply with the new legislation and some of our the year with health and safety legislation or other health New Zealand sites will require Site Location Certificates and safety requirements, except as set out below. and some will also need employees to be trained as As reported last year, on 30 June 2004 the New South Wales approved handlers. Industrial and safety WorkCover Authority issued three improvement notices Other licences are held by six of our sites in Australia to the second warehouse at our Smithfield distribution including dangerous goods licences and licences to sell centre in relation to fire hose servicing, forklift security Schedule 7 Poisons. and ergonomics. Corrective actions were completed and The Blackwoods Steel Processing Division located at approved by the inspector on 20 August 2004. Dandenong has a liquid pressure vessel on site which We have satisfactorily resolved the issue referred to in last requires registration under the Victorian Workcover year’s report concerning our Altona branch in Victoria. Authority Plant Registration Regulations. The vessel is On 16 December 2004, the Victorian WorkCover Authority the property of the provider, Air Liquide, and has been issued four prohibition notices to our Scoresby Distribution registered by them.

(Below) Team Leader John Ritorto with Blackwoods’ employees at a Toolbox meeting at the Smithﬁeld warehouse, New South Wales.

63. Social Responsibility Report 2005 Blackwoods Scoresby and Mullings Fasteners Campbellﬁeld ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) have indicated that they carry Ramset explosive safety In New Zealand, the protective clothing, safety products cartridges. Selling licences are required by these branches and graphics factories have an Environmental Management but are not held. This issue will be addressed. System which achieved certiﬁcation to ISO 14001:2004.

We sell certain food items such as coffee, tea and sugar. QUALITY SYSTEM In Australia and New Zealand the Food Standards Code In New Zealand, our safety products factories have current requires the registration of businesses selling packaged ISO 9001:2000 quality system certification. food items and only six of our 107 branches requiring registration are registered. We will progress registration of SAFETY MANAGEMENT SYSTEM (SMS) the unregistered branches. In New Zealand, the Safety Management System of the protective clothing, safety products and graphics factories Management systems is accredited to AS/NZS 4801. Our New Zealand businesses achieved Tertiary Level in INTEGRATED MANAGEMENT SYSTEM Accident Compensation Corporation Workplace Safety Our Australian integrated OHSE management system was Management Practice. internally audited against AS/NZS 4801:2001 and AS/NZS Our largest labour hire contractor, Skilled Engineering, has ISO 14001:2004 this year and a new OHSE Management achieved certification of its OHS Management System to Plan was developed in line with these standards and the AS/NZS 4801. areas of deficiency identified during the audit. The key areas of deficiency are training, dangerous goods, contractor OTHER MANAGEMENT SYSTEMS management and audit and inspection. These deficiencies Our OHSE Incident Management System, PeopleSoft OHSE, have been included in the future priorities list on page 69. went live on 1 July 2004. Our Australian integrated OHSE system has undergone In New Zealand, at our Techsafe Laboratory another of our employees became an approved signatory and we 64 further development throughout the year with the addition achieved continued accreditation to ISO 17025:1999 – and implementation of the following procedures: General Requirements for the competence of testing and • incident reporting and investigation; calibration laboratories.

• Toolbox Talks; POLICY • emergency preparedness; Current policies available and in use as part of our integrated • a number of safe operating procedures; management system include: • manual handling; • occupational health and safety; • energy management; and • environmental; • remote and isolated work. • injury/illness rehabilitation; • health assessment; Industrial and safety All aspects of this management system are communicated to employees through our enterprise portal, therefore • avoidance of drugs and alcohol in the workplace; and ensuring current information is available to all employees. • non-smoking.

(Below) Storeperson Vai Tautua emptying cardboard boxes into paper recycling bins at the Safety Distribution Centre near Wiri, in Auckland.

64. Social Responsibility Report 2005 The OHS policy is aimed at creating and maintaining OTHER EMISSIONS an environment that is safe for all employees, contractors, We are not aware of any emissions of ozone-depleting visitors and the general public in order to achieve substances. our target of minimising accidents, injuries and occupational illnesses. WASTE Our waste management systems at each branch were Our environmental policy outlines our commitment to reviewed during the year with a view to implementing a minimising adverse effects on the environment as a result method of measuring waste. We continue to liaise with of our operations. contractors to assist in the measurement of our waste All OHSE policies are communicated to our employees more accurately. through our employee handbook and enterprise portal, therefore ensuring current information is available SOLID WASTE to all employees. In addition, our OHSE policies are Solid waste during the year consisted primarily of general covered in the inductions undertaken by our Skilled waste and recycled paper. Engineering contractors. Our total solid general waste stream during the year was estimated to be 50,400 cubic metres, down 55 per cent on last year. We believe that last year’s figure may have been Environmental overestimated. Of this amount, we estimated that 17 per cent is recycled and 82 per cent is disposed of as landfill. Air (atmospheric emissions) Total solid waste disposed of to landfill per hundred thousand dollars of sales was estimated to be 3.6 cubic DUST metres, down 64 per cent on last year. A potential dust hazard has been identified at our safety products factory in New Zealand. To address this issue we LIQUID WASTE have initiated baseline health monitoring for employees, The Wetherill Park (New South Wales) branch of Motion 65 and we will implement any remedial actions required Industries has a transmission servicing department when identified. generating gearbox oil waste. The oil was collected for recycling by a contractor. The Malaga (Western Australia) ODOUR branch of Motion Industries also has a transmission servicing A potential solvent fume hazard has been identified at our department however the gear boxes are sent to the branch safety products factory in New Zealand. To address this issue in a dry state and no waste oil is generated. we have initiated baseline health monitoring for employees, Cooking oil from our largest distribution centre at Smithfield and we will implement any remedial actions required was collected by an individual for the purpose of conversion when identified. and reuse as diesel fuel.

GREENHOUSE GAS EMISSIONS RECYCLING INITIATIVES Industrial and safety Our greenhouse gas emissions were estimated to be 30,752 The identification of recycling opportunities was a tonnes of carbon dioxide equivalent, up 17.4 per cent on priority this year, with the formulation of a suitable waste last year, and this equates to 2.64 tonnes of carbon dioxide management and recycling procedure for the business equivalent per hundred thousand dollars of sales, up 11.4 well underway. per cent on last year. One aspect of our pilot project is the implementation of an The greenhouse gas emissions were largely due to electricity office waste paper recycling initiative at our Blackwoods (47 per cent) and vehicle fuel use (32 per cent). Smithfield branch. This involves the separation of general Our calculation of greenhouse gas emissions used estimates waste and office paper at each employee’s workstation by providing a separate paper recycling container which is for waste disposed off-site based on available data. then emptied into larger 240 litre paper recycling bins ready NOISE for collection. No noise-related issues or potential problems have been At our New Zealand safety products factory the following identified through our risk management process. processes were implemented:

(Left) Clearly displayed safety signage at the Wiri Distribution Centre. (Right) Product Manager Dean Pritchard explaining the use of a fall arrester harness as part of NZ Safety Products’ height safety education programme.

65. Social Responsibility Report 2005 • factory waste is segregated into two colour bins, red Resource usage (food scraps and paper cups) and yellow (process waste and foam); ENERGY • all plastic generated during the product testing process Last year was the first year we tracked the energy usage for (hard hat shells/equestrian shells) is collected by a local all our branches. Data from this tracking process enabled company and recycled; us to identify an opportunity for reducing energy usage. An energy management awareness campaign was launched • cardboard and packaging is broken down and put into during the year, including quick tips on reducing energy the cardboard recycling bin for collection on a weekly consumption such as switching off lights and computers basis by Paper Chain; when not in use. • all waste from the lunchroom (milk bottles, food tins Energy use during the year related primarily to electricity, and drink cans) is put out for collection by the local city gas and fuel. council for recycling; Total energy consumption was estimated to be 196,304 • hazardous waste (sensors used in gas detectors) is taken gigajoules, up 8.6 per cent on last year. for collection at locations provided by the Hazmobile; Our total energy consumption per hundred thousand dollars and of sales was estimated to be 16.8 gigajoules, up 5.7 per cent • empty gas cylinders are returned to the supplier for on last year. recycling. Our energy sources are detailed below. At our NZ Safety Wiri branch a number of recycling initiatives have been implemented. All café bottles and Fuel cans, pallet stretch film and cardboard waste and damaged Petrol, diesel and liquefied petroleum gas (LPG) accounted pallets are separated for recycling. for 68 per cent of our total energy consumption by gigajoule. Wherever possible, we reused packaging materials to despatch Our petrol, diesel and LPG consumption was estimated to be 66 goods to our customers but it was not practicable to record 3,744 kilolitres, 73 kilolitres and 108 kilolitres, respectively. the amount. ELECTRICITY Our Blackwoods Regency Park branch in South Australia Electricity accounted for 31 per cent of our total energy collected used printer cartridges for recycling. This year 229 consumption by gigajoule. Our electricity consumption was kilograms have been diverted from landfill. estimated to be 16,792,270 kilowatt hours. Our Blackwoods Scoresby branch in Victoria records quantities of printer cartridges collected for recycling. This year 290 NATURAL GAS cartridges have been returned to Upstream (Lexmark) and 53 Natural gas accounted for one per cent of our total energy cartridges sent to the Recycle Centre. consumption by gigajoule. Our natural gas consumption was estimated to be 2,136 gigajoules. Our Dandenong steel processing branch in Victoria disposed of 448 tonnes of steel cut scrap waste through a Industrial and safety Water recycling contractor. Our New Zealand protective clothing factory also recycles CONSUMPTION cardboard, packaging and marker paper. Water use during the year related primarily to general site amenities, such as kitchens and bathrooms. Land Total water consumption was 62 megalitres, down 47 per FLORA AND FAUNA cent on last year. We believe that last year’s figure may have been overestimated. This year water data was collated from There are no known direct impacts on flora and fauna by invoices for each location following the improved tracking our operations. process referred to in last year’s report. CONTAMINATION Our total water consumption per hundred thousand dollars We have not conducted any formal assessments in this area of sales was estimated to be 5.3 kilolitres, down 60 per cent but we believe that, due to the nature of our business activities, on last year. land contamination should not be an issue for us. Our primary source of water is scheme water.

(Left) Annette Dixon, Customer Service Centre Team Leader, with an energy reduction campaign poster used to promote energy use awareness. (Right) Sue Abualfoul recycling paper at the Blackwoods Customer Service Centre, in Smithﬁeld.

66. Social Responsibility Report 2005 Figure: 1 Figure: 2

LOST TIME INJURY FREQUENCY RATE* NUMBER OF WORKERS COMPENSATION CLAIMS

1 July 00 - 30 June 05 (as at 30 September 05) *Contractor hours and LTIs included **The ﬁgure for 2004 was incorrectly stated as 5.4 last year. 177 162 10.5 152

8.6 89 5.3** 4.3

N/A N/A

01 02 03 04 05 01 02 03 04 05

REUSE AND RECYCLING In Australia we revised a number of our existing Safe At our TotalCare operation in New Zealand, where the Operating Procedures and launched new procedures cleaning of fire service uniforms is undertaken, water relating to forklift operation and the handling of 200- recycling forms part of the operation. On the rinse cycle, litre drums. water is recycled through a filter and then re-used for EMERGENCY RESPONSE rinsing purposes on a second occasion. All water used We are aware of the importance of maintaining our ability to 67 in the operation goes through a fine micron filter before deal with emergency and crisis situations in a most effective discharge into the sewerage system. Used filters are and timely manner. An example of this is the assessment changed approximately every two days and are disposed of of our whole-of-business crisis management capability that by Chemwaste, a chemical waste company. was conducted in October 2004. This involved an external Given the type of business activities that we conduct and consultant coordinating a role-play that incorporated a series of hypothetical crisis events. The role-play involved senior our limited water usage, further recycling or reuse of water management as well as a number of support employees. is not a practical option for us at this stage. The exercise provided a valuable insight into how members DISCHARGES TO SURFACE AND GROUNDWATER of our leadership team manage such situations and it was concluded that the participants demonstrated competence Our second warehouse building at the Smithfield distribution in controlling a serious situation. centre houses a detention tank which allows large volumes

Emergency Preparedness Guidelines have been implemented Industrial and safety of storm water collected from roof discharge to be released throughout Australia, with all branches in Australia and gradually into the storm water system. New Zealand now having emergency procedures in place. Materials handling and storage Safety and health We had 77 manual handling injuries compared with 75 last LOST TIME year. Of these, 61 were recorded in Australia compared with 52 last year and 16 were recorded in New Zealand, Our Lost Time Injury Frequency Rate (LTIFR) was 4.3 compared with 23 last year. (compared with 5.3 last year) see Figure 1, and during the Our employees are involved in various materials handling year, there were 25 LTIs. Our Average Time Lost Rate, which and storage activities including unloading, packing, provides a measure of the severity of such injuries, was unpacking and storage of products. To reduce the need for 12.3 (compared with 11.2 last year). These statistics include manual handling we use mechanical conveyors, mechanical contractor hours and injuries. and other material handling aides such as forklifts, pallet Safety statistics are distributed to management each month jacks and trolleys, pallet racking designed for warehousing and reported to our Board every two months. and other systems of storage such as conventional warehouse shelving. WORKERS COMPENSATION Safe operating procedures are available for mobile and load There were 89 workers compensation claims reported, shifting equipment. relating to occurrences during the year, compared with 177 Pallet racking and materials handling equipment is subject last year (see Figure 2). Of these, five related to vehicle to regular checks and maintenance. accidents on the way to or from work. Our Blackwoods Coopers Plains branch in Queensland purchased a wheelie bin tipper to empty wheelie bins into Hazard and risk the industrial waste bins, eliminating the need for manually PROGRAMMES lifting and emptying the bins. Stage two of the conveyor at our Blackwoods/Atkins Our annual OHSE survey was completed by all our Carlyle Canning Vale distribution centre in Western distribution centres and branches throughout Australia Australia was completed to increase the efficiency of and New Zealand. The survey scoring system has been warehouse operations. maintained to allow year-to-year comparisons of branch When upgrading or constructing a new building, the results with the goal being continuous improvement. issue of materials handling is considered using a risk All our branches have an OHSE Action Plan which includes management approach. Our Blackwoods Rockhampton action items from the OHSE Survey and hazards identified branch in Queensland relocated to new premises this year from the branch risk assessment. and manual handling improvements were included in the

67. Social Responsibility Report 2005 warehouse, incorporating a conveyor system that transports Communication orders that are picked to the despatch area. NEWSLETTERS AND REPORTS This year we concentrated on identifying a strategy to address our manual handling risk, as detailed in the An OHSE performance report is distributed and discussed overview section on page 61 of this report. by management each month and reported to our Board every two months. To address the risk of the interaction of mobile plant and people, a generic Branch Traffic Management Plan document Our internal newsletter “WISBANG” is communicated was developed, resulting in a number of changes at our monthly to all employees through our portal communication Blackwoods distribution centre at Scoresby and the main system. OHSE matters are included in the newsletter Protector Alsafe distribution centre at Altona. to ensure employees are kept up to date with current OHSE performance. An internal quarterly update is A guidelines document for the storage of dangerous goods communicated in all regions to distribute business items based primarily on AS/NZS 3833: 1998 was developed during including OHSE performance. the year and will be used to analyse storage compliance throughout each region over the next twelve months. In New Zealand, monthly awareness topics and a “Safety Notes” newsletter are distributed. RISK ASSESSMENT The first edition of an OHSE newsletter was published in Detailed site-specific risk assessments were developed July 2005. further during the year. We have conducted a site-specific risk assessment for all of our 167 Australian branches, WEBSITE compared with 114 last year. In New Zealand, all 83 branches Information about our operations, including Material Safety have completed site-specific risk assessments in line with Data Sheets for specific products in our range, is available legislative requirements. Branches will now continue to from the following websites: review their risk assessment on an annual basis. www.blackwoods.com.au Control measures recommended in the risk assessments www.blackwoodspaykels.co.nz 68 form part of the OHSE Action Plan for each branch. The development of 16 Safe Operating Procedures to cover many www.motionind.com.au of our tasks continued throughout the year and in Australia www.mullings.com.au these are placed on our WISBIS Enterprise portal as they www.bakers.net.au become available. www.protectoralsafe.com.au EMPLOYEE WELLBEING www.protectorsafety.co.nz Our integrated OHSE management system includes policies www.packaginghouse.co.nz to address various employee wellbeing issues including: www.nzsafety.co.nz • equal opportunity; COMMUNITY SUPPORT • smoking; We have continued to provide support to a large number Industrial and safety • health assessment; of community and social organisations. Examples of • drugs and alcohol; and these are: • rehabilitation. • Red Cross Blood Bank; Employee health assessments are carried out for some of • Variety clubs; our employees in accordance with our policy which • Lions clubs; requires assessments to be done based on the risk profile of • sports associations/clubs; the position. • Auckland Rescue Helicopter Trust (New Zealand); Our Employee Assistance Programmes (EAP) in Australia • National Hearing Association (New Zealand); and and New Zealand continue to be accessed by our employees. The counselling and consulting services offered by our EAP • Technical Aid to the Disabled where we donated computer providers are professional, confidential and free of charge equipment. to employees and members of their immediate families. We provided awards in the form of cash prizes for excellence awards through our Canberra branch. Our Blackwoods Coffs Harbour branch in New South Community Wales and Blackwoods Morwell branch in Victoria donated prizes to a number of organisations to assist with the STAKEHOLDERS tsunami appeal. Our stakeholders include our employees, our customers, our We made donations to a number of schools/colleges, from suppliers and other contractors, relevant government agencies, the following branches: Blackwoods Tamworth in New the communities in which we operate, and shareholders in our South Wales; Blackwoods Townsville in Queensland; and parent company, Wesfarmers Limited. Blackwoods Shepparton in Victoria. FEEDBACK/COMPLAINTS Our total contribution to charitable organisations was We have not received any OHSE-related complaints during $11,523. In addition, employee contributions of which we the year. are aware totalled $11,514.

AWARDS Blackwoods, UVEX Safety Australia Pty Ltd, a supplier of “Our Blackwoods Coffs Harbour branch in New personal safety equipment, and New South Wales colleges South Wales and Blackwoods Morwell branch of Tertiary and Further Education (TAFE) have joined forces to develop a unique awards programme designed to raise in Victoria donated prizes to a number of awareness of eye safety among future tradespeople. The Eye organisations to assist with the tsunami appeal.” Protection Safety Award is open to all TAFE students in New South Wales studying a vocation that requires eye protection.

68. Social Responsibility Report 2005 (Above) Warehousing operations at the new Safety Distribution Centre at Wiri.

Case Study 69

Safety, health and environmental factors were a priority in Forklifts hav e pre-set heights to match the heights of bays the design and construction of a joint distribution centre in which they work. The exterior loading/ unloading area for NZ Safety and Protector Safety at Wiri, near Auckland, has a concrete pad under cov er and with a slight upwards in New Zealand. Completed in August 2004, the purpose- camber so that forklift hav e their forks horizontal when built facility has 5,500 square metres of warehouse space, loading or unloading goods from v ehicles or containers. with separate office space for both divisions of 1 ,000 Pick trolleys can handle six orders at a time, to reduce square metres, providing facilities for managers, sales and double handling for employees. The conv eyor system customer services. is abov e waist height ( for the av erage person ) f or easy A flat site was chosen to allow segregated parking and working. No ladder climbing is required. commercial and pedestrian traffic. The site faces away from To deal with waste, four recy cling plans were dev eloped Industrial and safety prevailing winds, to prevent gusts into the warehouse, and cov ering paper waste, caf e bottles and cans, pallet stretch allow more sunlight, reducing energy consumption needs. film, cardboard waste and damaged pallets. Workflow was considered, with separate areas and racking systems for inwards goods, man-up areas and light and heavy storage.

Priorities for the future

Improve our safety performance by at least halving our Implement OHSE auditing procedures. LTIFR each year with a target of zero LTIs. Review contractor management. Implement a Manual Handling Strategy. Implement 360 degree OHSE review programme. Reduce manual handling injuries. Implement recycling strategies. Implement an OHSE training system.

Analyse dangerous goods risks.

69. Social Responsibility Report 2005 70.

CSBP

We are one of Australia’s major suppliers of chemicals, fertilisers and related services to the mining, minerals processing, industrial and agricultural sectors.

We operate a major industrial complex at Kwinana in Western Australia and other complementary facilities in regional areas and employ more than 550 people. CSBP Chemicals’ core products include: ammonia; ammonium nitrate; sodium cyanide; chlorine 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 sodium cyanide production joint venture, Australian Gold Reagents Pty Ltd (AGR), are also included in this report. www.csbp.com.au

(Above) Despatch Operator Malcolm Hayley at the liquid fertiliser storage facility at the Bunbury works in Western Australia. Maintainourcontributiontothesocialwellbeingof Increasetheuseofrecycledwaterandcontributeto Continuetoworksafelyandeffectivelydealwithour Obtainorretainendorsementofoursafetyreportsfor contaminantemissions. Reduce Continuetoreduceworkplaceinjuries. At leasthalveourLTIFR withanultimateaimofzeroLTIs. year with a focus on first aid, incident investigation, investigation, incident Representatives’ aid, Health training. and first communications Safety the and on throughout handling focus manual a continued with programmes year training Safety injured. being body the of areas the raise regarding and awareness promote to site Kwinana the of parts used different was in which display manikin labelled a introduced We drug a of policy. alcohol and implementation commenced action work and the of of system review permit a finalising initiated We and safety. to tracking relating employee items the promoting and incidents, training reducing safety our to view focused a we with which awareness employee on raising were year the areas during attention safety main three The operate. to continuing is groundwater Kwinana at plant treatment ammonia/arsenic The acidity. contaminants interception metal neutralise heavy and reduce groundwater to our Bayswater at operate system to continued We finalised. being are arrangements contractual and treated place in is Plant accept Reclamation to Water Kwinana us the from water enable to Infrastructure efficiency. its is Kwinana at maximising towards and wetland we are working nutrients removing stripping nutrient Our discharges. We to approvals continue focus on water reducing use and contaminant 2005. October environmental in received was sign-off Ministerial the Bayswater. at plans remediation the through for process ammonia/arsenic progressed our We managing Kwinana. at plant and treatment groundwater wastewater manage to our continuing plans, remediation with and progressing site Bayswater our year at the groundwater the during managing attention were our focused we which on areas environmental main the three challenge, this with In dealing operate. we which in communities the or environment the on impact adverse any minimises a in way that of facilities our operation safe the is basis on an ongoing our business facing challenge main The Overview priorities Report four majorhazardfacilities. Western Australian community. reduced schemewateruseinKwinana. historic wastesby2006.

community programmebasedaroundourmajoroperations. and servicesinWestern Australia wecontinuetohaveastrong Achieved. groundwater infrastructuredifficulties. last year. Schemewateruseincreasedslightlybecauseof Not achieved. historic wastestockpiles. Achieved. reports except theoneforourammoniumnitratefacility. achieved. Partially metals, phosphorusandgreenhousegasemissionsincreased. Not achieved. per centfrom34to32. Achieved. were threeLostTimeInjuries(LTIs). (compared with2.4lastyear),a17percentreduction.There Not achieved. Outcomes sign to promote environmental topics. Training will be be system. will management Training environmental our of topics. review the of part as further reviewed environmental electronic and promote newsletter to sign internal monthly our used We ENVIRONMENTAL plan. is training annual the in Reporting contained that requirements. against site completed training on actual coordination for twice-yearly conducted the activities in assist training to of been and management SiteSafe has records within training assistant system our maintain administration to employed against training assessed part-time be A can skills requirements. that performance so procedures operating established standard are the and for modules for requirements training manuals the knowledge ensure systems to checked addition, are areas In adopted. criteria to and performance required established are then tasks specific knowledge perform and skills nature The the operations. identify their of to process-mapped are units Business East Chemicals and units. business Production Fertiliser the for modules on the working our It is currently in system. information recorded document is the which for unit modules business Despatch competency team to Fertiliser of The review 2004 a system. November completed management has in competency established our was review team project A TRAINING basis. ongoing an on controlled are hazards electronic identified ensure to us business-wide allowed This the SiteSafe. tool on reporting noted communicated as with recorded, dealt were and hazards and incidents All Business management Asamajoremployerandpurchaserofgoods We continuedtodevelopoptionsfordealingwithour We reducedourworkplaceinjuriesbyafurthersix Recycled waterusehasremainedsimilarto Recycled Fluorideemissionsdecreased,butnitrogen, (LTIFR) LostTimeInjuryFrequencyRate oftwo We havereceivedendorsementforallsafety 71 .

Social Responsibility Report 2005 Report Social Responsibility

71 CSBP 72 CSBP is expanding across the site for a variety of area and and area of variety a for site inductions. the contractor across chlor- expanding nitrate, training of is form this and ammonium plants cyanide sodium ammonia, and alkali the in been has It introduced packages. training media electronic of series a developed hazards we year further of This work. places potential particular in the of area-specific awareness an ensures with that up induction followed is systems. and induction rules general safety A of understanding sound sites a our on have people all ensure to programme induction an to complete are required Safety and contractors new employees All safety and Health improved for employees. other and run for Representatives was course requirements Communications Effective an year, key the During communication. is the awareness two of actions, including One preventative investigation, conducted. were and sessions training of investigation causes incident root standard the identifying improve To their and topics. safety and monthly risks meetings safety area handling through communicated manual is control of promotion Further continued. training handling manual on focus a so injuries, workplace our all of cent per 19 for account injuries Strain and generally. families community the employees’ to benefit an a in also is techniques It emergency. response provides first it apply as can attended who priority were a personnel year remains This the employees. 110 during by employees. conducted our to classes available Nine regularly is training aid First SAFETY AND HEALTH 72.

Social Responsibility Report 2005 Report Social Responsibility (Below) Emergency response team members members team response Emergency (Below) conducting a rescue exercise. rescue a conducting

ENVIRONMENTAL Compliance Group. Safety Group Public Aid Industries Mutual Kwinana the and Industries Kwinana the of as part well a as being Kwinana and Rockingham both for Management Committees Emergency Local in involved actively are We Western with strategies. response our of a links part key are which strong authorities management emergency maintained Australia’s we Kwinana At staff. operational all for competencies response first in continuing is Training agencies. services customers emergency and involving exercises four operational conducted we year and the During agencies. technical government to and provide clients our to to support we capacity incidents the off-site in have involved are products our Where community. the in products of our stewardship the and sites remains medical at operating our or emergency industrial function an to respond to response ability the on emergency firmly our of focus The EMERGENCY up-to-date. standards and current remain and skills ensure to employees operators maintenance process national on was focusing year the project during management started against competency A with available. where measured position their of requirements competencies the vocational meet undergo to to employees training all for is objective Our • One related to emissions of fluoride from the granulation granulation the from fluoride of emissions to related One • the at emissions (NOx) nitrogen of oxides to related One • (NOx) nitrogen of oxides of emissions to related One • the on conducted being not test stack a to related One • solids cyanide sodium the on test stack a to related One • (DoE): Environment of Department the to non-compliances potential 14 reported we year the During non-compliance “Noise” environmental the report. in this of and other potential section below out or set as any except legislation of requirements, aware environmental with not are We in the scrubbing system was blocked. The test was was test within The was and limits. licence blocked. unblocked was was drain the after system drain repeated a scrubbing when conducted the was in test was It the metre. that cubic per determined milligrams 0.05 the of above limit slightly licence was test initial The Kwinana. at plant period. short a within emissions normal to The returned second. per above grams 12 of slightly was limit test licence the initial in The state. operating was “non–steady” plant a the when plant cyanide sodium limits. licence within was result the and day the same test the on The above repeated metre. was was cubic per test milligrams 144 initial of limit The licence boiler. auxiliary the on The there month. month. that the the during operating believe during was analyser continuous to emissions unexpected reason abnormal an any no to were is due There plant shutdown. liquids cyanide sodium times. test scheduled the at operating not plant the to due conducted being not plant investigation training sessionswereconducted.” preventative actions,twoincident including identifyingroot causesand “To improvethestandard of investigation,

• One related to monitoring during our sodium cyanide the year with licensing or approval conditions or other plant start up in which we did not completely follow our requirements, except as set out below or above under start up procedure. There is no reason to believe that “Environmental” or “Health and Safety”. there were any abnormal emissions during this start up All relevant licences including Environmental Protection which progressed with no process problems. Act, Rights in Water and Irrigation Act, Poisons Act, • Six related to exceedances in our discharges to Cockburn Dangerous Goods and National Industrial Chemicals Sound in which the April monthly daily average Notification Assessment Scheme licences were renewed. In (kilograms per day) for iron was elevated and the May addition, approvals were sought relating to specific projects. monthly daily average (kilograms per day) for iron and These included: manganese was slightly elevated. The June monthly daily • approval for the lime dosing groundwater treatment plant average (kilograms per day) for iron, aluminium and at Bayswater; and manganese was also elevated. Whilst above the relevant • approval for the consolidation of the sodium cyanide licence limits the discharges were nonetheless below the plant Ministerial Conditions. applicable environmental quality criteria outlined in the State Environmental Policy for Cockburn Sound. The In each case the relevant approval was granted. increase in manganese is associated with the handling We are progressing through the approvals process for of this trace element used in fertiliser production. We are the upgrade to our sodium cyanide solids plant to 45,000 investigating the cause of the elevated iron levels. tonnes per annum. Our Public Environmental Review • One related to a small exceedance (0.13 per cent) of our (PER) was released for public comment during the year. groundwater abstraction limit at Bibra Lake. We installed The PER outlines the environmental issues and associated a flow meter, however the hour meter continued to be management plans. We finalised responses to submissions read for a period and when the abstraction was summed and the Environmental Protection Authority (EPA) released based on the flow meter only we were slightly above its Bulletin (the public advice of the EPA’s views of a project) the limit. in July 2005. • One related to groundwater abstraction at Kwinana where Our PER for the duplicate ammonium nitrate and prilling 73 we exceeded our allocation by 1.9 per cent. We are plant was also released during the year. The EPA Bulletin reviewing our available water sources and will substitute was released in June 2005. where possible. The DoE has advised that no further action will be taken Management systems in regards to these issues except for the discharges to ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) Cockburn Sound in April, May and June 2005 which are We have committed resources to review our EMS next still under consideration. No further action has been taken year. Our EMS is consistent with the international standard by the DoE in relation to each of the outstanding matters ISO 14001, but we do not intend to seek accreditation at CSBP referred to in last year’s report. this stage. NATIONAL POLLUTANT INVENTORY (NPI) QUALITY SYSTEM Emissions notifiable under the NPI were estimated for We maintained certification to AS/NZS ISO 9001:2000 for substances listed on the NPI. Data for the 2003/2004 reporting the chlor alkali and ammonium nitrate processes. This period was submitted to the DoE. Detailed information is involved two satisfactory external audits. We also conducted available at: www.npi.gov.au. All our substance emissions 12 internal audits during the year. for last year were ranked by the NPI as “low”. The Kwinana laboratory was re-assessed by the National HEALTH AND SAFETY Association of Testing (NATA) and accreditation to ISO/ We are not aware of any potential non-compliance during IEC 17025 was continued. NATA removed the deadline the year with health and safety legislation or other health referred to in last year’s report associated with the issue and safety requirements, except as set out below. of measurement uncertainty. We continued to work on A non-compliance with health and safety legislation was this issue during the year and progress will be reviewed identified by WorkSafe Western Australia at Kwinana, through regular NATA audits. The remaining action from relating to the requirement to isolate equipment using the review of AS4423 (Australian Standard for Safety in lockable systems. A site-wide process of consultation Laboratories) was completed during the year. A renovation regarding the isolations and improvements to the work of the sample room has commenced with the aim of permit system has commenced to rectify this problem and reducing the risk of manual handling injury, noise and dust should be completed by June 2006. and improving workflow and storage. Laboratory staff were actively involved in building a continuous on-line system All regulations and standards that apply to our business for monitoring nutrient levels in the proposed discharge are monitored by Freehills, a national law firm, which of wastewater to the Sepia Depression Ocean Outfall. provides quarterly updates ensuring that we are aware of Senior laboratory staff were active in NATA and the Royal all changes. Australian Chemical Institute (RACI) branch activities. We conducted audits of our Safety Action Plan in 90 per Our soil and plant analysis laboratory at Bibra Lake cent of our operational areas. The results of these audits participates in national proficiency programmes overseen are tracked through SiteSafe in order to ensure continued by the Australasian Soil and Plant Analysis Council and compliance and completion. international plant analysis programmes overseen by All emergency response team members were medically Wageningen University in the Netherlands. and physically assessed and considered fit for their role in accordance with task analysis that identify the physical SAFETY MANAGEMENT SYSTEM (SMS) needs to perform duties. Annual Safety Action Plans provided the basis for safety improvements across our business with each department Operational staff undergo hearing tests on appointment responsible for ensuring that its plan was made specific to and termination in accordance with WorkCover Western its area. Australia guidelines. The development of our risk assessment register has LICENSING AND APPROVALS progressed. We completed a review of baseline Hazard And We are not aware of any potential non-compliance during Operability Study (HAZOPS) for our entire facility.

73. Social Responsibility Report 2005 74 CSBP 74. storage and transport safety; manufacturing safety; and to six has in of the areas health employee which practice best outlining codes programme commitment Care signatory a Responsible are PACIA our we the to addition In operation. outline business our of part that as issues community and safety health, policies environmental, have We transport, to POLICY through manufacture use. end and distribution and times, all sourcing at properly from products chemical and our with handling to dealing us commit that Care behaviours promotes and Responsible Association the systems Industries maintains and developed and has business (PACIA), our Chemical and values Plastics the our of codes to adhering By security. on focus our we continued chemicals, range hazardous a and potentially other of explosives for materials raw of producer a As endorsed. be to still is which report safety nitrate DoIR ammonium from on revised our and response a frames awaiting are We time ongoing. and are all some actions responsibilities assigned remaining the been Of have audit. external last the a from on audited actions the of cent 45 per externally completed We have basis. are regular and endorsement for (DoIR) Resources and Industry of reports Department the to These submitted are managed. are they how and risks describes major which the report safety a has facilities these of each chlor As of part Standard, plants. this nitrate cyanide, and ammonium alkali sodium ammonia, our Hazardous are Major These of Facilities”. “Control Standard the National under WorkSafe deﬁned as facilities, hazard major four have We relevant access data. to safety and on-site on use report for and approved list employees chemicals search, to provides interface system user-friendly The a with system. through Alert continues Chem on-site the chemicals of management The

Social Responsibility Report 2005 Report Social Responsibility (Below) Removal of asbestos from the fertiliser sheds at Kwinana. at sheds fertiliser the from asbestos of Removal (Below) exceed NPI thresholds and we are therefore not required required not not do therefore we are we areas and some thresholds to NPI In way part, exceed the in emissions. of assumptions, potential because standard calculate NPI uses NPI the the of which part in from as slightly differ reported will those and emissions obtained source generally is point section from this in data that note Please Air (atmosphericemissions) conducting and targets activities. awareness reduction conservation water water establishing Water as such improvement the for areas identified and with worthwhile was audit exercise The water to five (excellent). (poor) of one five on a scale of out four to a three from improved rating Our conducted Corporation. again We Board at PACIA. in represented level major Council and actively are and We industry. Australia chemicals the in issues Western security and goods dangerous in facilities, hazard Scheme Accreditation Carrier PACIA the nitrate, ammonium of distribution the for Conduct of Code Voluntary the as such number a policies on relevant of commenting or developing to our contribute we through association this Through codes newsletter. email the monthly Product internal promoted the We on self-assessments code. conducted three was Stewardship conducted verification we external and year, the During protection. environmental and stewardship; product know; to right community safety; sites and unsealed surfaces. We estimate our dust emissions emissions dust our We estimate surfaces. unsealed and sites our on loading materials plants, operating various our from emissions particulate with are associated Our dust emissions DUST NPI. the in report to Environmental using the relevant factors from the NPI and we will report them to the NPI in September 2005. Figure: 1 Dust from all sources reported under the NPI last year (to PRILL PLANT STACK EMISSIONS 30 June 2004) was 230 tonnes. (GRAMS PER CUBIC METRE)

ODOUR During the year we had seven odour complaints: 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 • Two related to emissions from our granulation plant at Tower 0.014 0.013 0.021 0.024 0.028 0.015 0.020 0.019 0.017 Kwinana. The emissions were sampled on a monthly Pre-dryer 0.235 0.178 0.128 0.081 0.186 0.117 0.112 0.111 0.092 basis and were within all licence limits. Dryer 0.364 0.253 0.133 0.168 0.128 0.145 0.091 0.058 0.112 • Two related to the detection of ammonia at Kwinana. An external neighbour notiﬁed us of the presence of an ammonia odour whilst the ammonium nitrate plant was venting as part of maintenance activities. An ammonia odour was also detected on site at the sodium cyanide plant during a venting operation. Ammonia can be detected at low concentrations below that which impact on human health. • One related to odour from our superphosphate plant at Kwinana which was found to relate to a blockage in the scrubbing system. The plant was subsequently shut down and the blockage repaired. • Two related to our Albany superphosphate plant. The plant was operating under normal conditions at the time 75 and this was explained to the complainant.

GREENHOUSE GAS EMISSIONS We are a participant in the Commonwealth Greenhouse Challenge Plus Programme. As part of our participation, (Above) Ron Turnbull inspecting pipework and instrumentation we submitted our 2003/2004 report during the year. The which will receive high quality water from the Water Corporation’s greenhouse emissions summarised in this report differ Kwinana Water Reclamation Plant. slightly from those reported under the Greenhouse Challenge CSBP Plus project. In that project we use actual analytical data OTHER EMISSIONS from our natural gas supply and internal power generation yet in this report we use the standard AGO emissions factors We had no emissions of ozone-depleting substances to ensure consistency across Wesfarmers. such as chlorofluorocarbons (CFCs), halons, carbon tetrachloride, hydrochlorofluorocarbons (HCFCs), Our greenhouse gas emissions were estimated to be hydrobromofluorocarbons (HBFCs), methyl bromide or 1,342,614 tonnes of carbon dioxide equivalent, up five per bromochloromethane (BCM) during the year. cent on last year, and this equates to 0.90 tonnes of carbon dioxide equivalent per tonne of fertiliser and chemical We have not yet prepared our report to the NPI for the production, up four per cent on last year. This figure 2004/2005 reporting period or finalised our data estimates, includes the following emissions: however in 2003/2004 our three most significant emissions • 2,146 tonnes of nitrous oxide (N O); and were carbon monoxide (410,000 kilograms to air), ammonia 2 (310,000 kilograms to air and water) and particulate matter • 0.0524 tonnes of sulphur hexafluoride (SF ). 6 (230,000 kilograms to air). Further information is available The greenhouse gas emissions were largely due to our at: www.npi.gov.au. All our substance emissions for last ammonia plant (approximately 37 per cent), nitric acid year were ranked as “low” by the NPI. plant (approximately 48 per cent) and sodium cyanide plant (approximately 11 per cent). OXIDES OF NITROGEN We measure the production of oxides of nitrogen in our NOISE sodium cyanide, nitric acid and ammonia plants. All The noise regulations are in the process of being reviewed to plants operated within licence limits for these emissions. potentially increase the industry-to-industry boundary level Our total oxides of nitrogen emissions are calculated limits from 65dB(A) to 70dB(A). If the noise level limits are from measurements of emissions from these plants and increased we will comply with the noise regulations at our calculations from other sources such as motor vehicles. boundary. Noise emissions associated with the proposed upgrade of our ammonium nitrate and sodium cyanide PARTICULATES plants were outlined in the relevant PERs. We have a Particulate emissions of ammonium nitrate from our prilling potential non-conformance on our northern boundary and plant were below licence limits for the pre-dryer, the dryer we have committed to address this next year. Noise at the and tower stacks (see Figure 1). boundary between Coogee Chemicals and AGR is above the current limit largely due to tonality. We will formalise our noise management plan during the year which will outline noise management actions. “We will formalise our noise management Through the KIC we contribute to the noise modelling for plan during the year which will outline noise the Kwinana Industrial Area. A review of the noise model was released in August 2005. Our noise emissions have management actions.” reduced by 5dB(A) since the model was commissioned in 2001.

75. Social Responsibility Report 2005 76 CSBP Our total solid waste disposed of to landfill per tonne of of tonne per was at estimated Kwinana landfill production and chemical to of fertiliser disposed waste solid total Our abuilding. of re-cladding the from asbestos of disposal the is related to per The increase of cent was to disposed landfill. 65and 35 recycled amount, cent was per year. on last this Of cent per 82 up metres, cubic 1,048 be to estimated was year Our total solid general waste from stream Kwinana during the waste. production general and asbestos of primarily consisted year the during waste Solid WASTE SOLID Waste 2005/2006. in address will we which area plant same the in use ammonia through created exceedance risk a slight remains still there However storage. chlorine to regards in criteria risk meet do we and Assessment Risk Quantitative the for used being model the in found was error positional a because necessary chlor been not our has This modify standards. would current meet to area we storage plant said alkali we report year’s last In maintenance. for equipment operating of normal preparation by and caused conditions be often can alerts chlor the which at can health that Due be of to impacted. these below meters the sensitivity well chlorine set when are levels alarm Trigger an detected. sound is throughout and plant situated alkali are chlor monitors the These year. the times 115 during activated was system monitoring alert chlor Our CHLORINE 2005/2006. in address will we which area plant same the in use ammonia through created exceedance risk a slight remains still there However for guidelines emissions. ambient particulate relevant the the meet and plants existing the proposed Both expansion. plant prilling nitrate was as Modelling conducted part of the ammonium proposed 76. waste solid our reduce with to dealing included year the during continued Initiatives stockpiles. we addition, In tonnes. 24 recycled and facilities works our country from of waste of 273 tonnes We disposed year. last on cent per 60 up kilograms, 0.6 be to

Social Responsibility Report 2005 Report Social Responsibility (Below) Demolition work on the decommissioned ammonia plant. ammonia decommissioned the on work Demolition (Below) We completed modifying two procedures affected by by affected procedures two modifying completed We rehabilitation. promote residue and its enhance to in ponds disposal conditioner soil tonnes. a as 8,877 gypsum the removing uses 2005, Alcoa early in stockpile the from of gypsum to consignment continued site take Alcoa a significant the of portion system. Planning wetland large A functional a Road. 2005. contains expected late is by Wellard which operating be project at to the for land pending are the approvals of the from rehabilitation gypsum eventual the aid and source lakes of to gypsiferous ecosystems need fragile the reduce will in which conditions Australia, Western soil of regions improve west south to and wheatbelt used the be to is the material The using material Cement. ameliorant Cockburn from lime and site on the stored soil gypsum produce to operation site blending the a at establish to agreement Enterprises our the Manna involves with in project main progressed The has months. of 12 site last Road stockpile Wellard the our for at uses Gypsum beneficial of development The project. the Town to commencing the and prior Kwinana of DoE the by reviewed was plan demolition The recycled. be will material the possible Where concrete. and steel scrap be will project this from generated material main The year. the during plant ammonia old the of demolition Wecommenced site. Kwinana our at with earthworks associated material of tonnes 1,907 and Calista in site in Road Wellard our from demolition wastes of tonnes 32,839 of plant also disposed We recycled. was acid steel scrap and lead sulphuric The concrete Esperance. and the asbestos with steel, scrap associated lead, of tonnes 5,310 or energy, in the Kwinana industrial area. industrial water Kwinana the in by-products, energy, or of to the exchange aims synergies, to project Centre further The the identify contribute Processing. through we Resource project Sustainable this for research of synergies part Kwinana Kwinana As the of Area. development eco-efficiency Industrial sustainable overall the in improving leadership by to contribute aims group to The Group). Sustainability KIC the Group (previously Efficiency Eco (Controlled KIC the of member Act active an are We Protection Environmental Regulations. Waste) revised the

77 CSBP

(Left) Duty Site Controller Marten Noordzy (left) with Ian Hill, Air Liquide WA Engineering and Operations Manager, inspecting the pipe that transfers carbon dioxide from the ammonia plant for use at Air Liquide. (Right) Aerial view of the Bayswater site where remediation will start in late 2005.

The three outstanding actions in our cleaner production action During a high rainfall event we discharged approximately plan referred to in last year’s report are still to be completed. 654 kilolitres into the Preston River from our Bunbury site. The plan is available on the Western Australian Sustainable Due to the high rainfall occurring over a short period of Industry Group website www.wasig.curtin.edu.au. time some water also overflowed the pond and entered the LIQUID WASTE river. Prior to this we have not discharged to the Preston River through our licensed discharge point since 2000. We Liquid waste during the year consisted primarily of wastewater continue to monitor the Preston River up stream and down from our production processes and stormwater run-off. stream of our discharge point. Our effluent at Kwinana discharged to Cockburn Sound, including run-off, totalled 1,085,845 kilolitres, up 13 per cent Our total liquid waste from our Kwinana, Albany, and on last year. In addition, liquid waste disposed off-site was Bunbury sites discharged and disposed off-site per tonne 645 kilolitres, an increase of three per cent on last year. of fertiliser and chemical produced was estimated to be 798 Of the amount disposed off-site, we estimate that 76 per cent kilolitres up eight per cent on last year. is reused and 24 per cent is disposed of to a licensed disposal Liquid waste is not a major issue at our Geraldton or facility. The liquid waste which contains organic material is Esperance sites. reused at a composting facility. RECYCLING INITIATIVES We continue to reuse wastewater within and between our plants. Our reuse between plants was estimated to be 19,641 We are committed to continuing to reduce the amount of kilolitres, an increase of 71 per cent on last year. waste being disposed off-site. We have a number of reuse and recycling initiatives on-site, some including the reuse Our Albany site discharged 110,033 kilolitres of water to Princess Royal Harbour, down 18 per cent on last year. This of waste oil and drums and the recycling of office material, figure includes rainwater run-off. batteries and scrap metal. We despatch solid sodium cyanide in double-lined bulk bags contained within wooden boxes to customers. After testing, and review by the DoIR, we have approval “During a high rainfall event we discharged to reuse the boxes a number of times, with checks in approximately 654 kilolitres into the Preston place to ensure damaged boxes are not reused. River from our Bunbury site.” This initiative will significantly reduce the number of boxes requiring disposal.

77. Social Responsibility Report 2005 78 CSBP project are available on our website (www.csbp.com.au). website our on available are project remediation the to relevant documentation and information other and at review The looked which contamination. soil and data, groundwater scientiﬁc the of particular in review PER, independent the an conducted also has CSIRO The 2005. October late in work in remediation received start Wewill authorities approval 2005. ﬁnal Minister’s decision-making the to government prior local and state no various the were by considered There then was project the 2005. and appeals June 7 the on on project) advice a of public views (the EPA’s Bulletin its published EPA The received. comments few the on (EPA) Authority Protection year and since then we last to have late responded the Environmental period consultation public the through went (PER) Review Environmental Public The process. remediation full of a start to the to move closer continues site Bayswater Our CONTAMINATION buildings. roosting to within areas access restricting and pigeons feral of potential removal inspections, limiting regular by through achieved is and This sources. food premises roosting the from on pigeons breeding deterring and by site Kwinana our and on issue with this manage We compete birds. sea local pigeons the of many The displace birds. these of numbers the control to seeks which Kwinana/Rockingham at Group the Control Pigeon with Feral Weour involvement continued FAUNA AND FLORA Land 78.

Social Responsibility Report 2005 Report Social Responsibility (Below) Process Technician Terry Ramsden (right) issuing a a issuing (right) Ramsden Terry Technician Process (Below) work permit at the granulation plant. granulation the at permit work groundwater plume at Kwinana was commissioned in May May in commissioned was ammonia/arsenic Kwinana at the plume for groundwater plant treatment wastewater The planned. are updates further distributed and months been 18 last have the over progress remediation the of parties interested informing Newsletters remediation. commencing to prior 2005, for late in planned is session information held further advertised was the A document. PER for the through period session comment public week eight midway was which information 2004 October community last The required. longer no are buildings the when programme remediation site the of end the towards be will conducted exceeds process removal The asbestos that site. the of material redevelopment safe the enable to all removed be will use land minimum, industrial/commercial for a levels in prescribed metals At heavy site. areas. of the levels some at elevated contain fertiliser wastes These superphosphate of of production by-products were past which wastes other and oxide) (iron is due to of cinders the iron presence contamination The soil buildings. existing in asbestos of quantities considerable • and groundwater; impacted • soil; contaminated of presence the • are: remediation require that issues main three The extremely be to acidity. neutralising continues under plant site out metals in heavy of taking and successful the groundwater treatment the water on The treated and approval. Act Protection pumped Environmental current a being still is groundwater place, taking been have processes these While mono ammonium phosphate and ammonia which we we which ammonia gas. and natural from standard manufacture phosphate ammonia, of ammonium sulphate mono soda, caustic water, salt, acid, sulphuric rock, phosphate are materials raw other Our MATERIALS OTHER gigajoules. total 10,899,375 be to our estimated was of consumption LPG and cent gas natural Our processes per gigajoule. by consumption 98.6 production energy our approximately in for used accounted LPG and gas Natural GAS NATURAL of hours. cent electricity kilowatt 34,863,894 tobe Our estimated was consumption gigajoule. per by 1.1 consumption energy approximately total our for accounted Electricity ELECTRICITY respectively. litres, 59,303 and litres and diesel 447,710 petrol, to be 194,727 litres, was estimated Our consumption LPG gigajoule. by total consumption our of vehicle energy cent per (LPG) 0.2 gas approximately for petroleum accounted fuel liqueﬁed and diesel Petrol, FUEL below. detailed are sources Energy year. last on cent per 13 and fertiliser up 7.37 be to of gigajoules, estimated was tonne production chemical per consumption energy total Our year. last on 11,050,351 cent 14per be up to gigajoules, estimated was consumption energy Total plant. alkali chlor our in electricity of use the and plants cyanide sodium and ammonia our in gas natural of to use the related year the during of energy use main Our ENERGY usage Resource years. two approximately take further a will plume the of remediation the that of type this We of estimate situation. in a use commercial technology treatment ﬁrst the is this Globally, the return groundwater. and treat extract, to designed is plant The 2004.

Figure: 2 Figure: 3 KWINANA SCHEME WATER USE HEAVY METAL DISCHARGES TO COCKBURN SOUND (KILOLITRES) (KG/YR)

Note: The ﬁgures shown are discharge totals. Component metals are Arsenic, Copper, Manganese, Molybdenum, Zinc.

97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 79 785,500 649,836 366,274 276,196 106,843 160,656 101,143 161,873 3305 5036 3194 2799 947 1028 894 363 659

Water DISCHARGES TO SURFACE AND GROUNDWATER Our Bunbury site captures run-off generated on-site for

CONSUMPTION CSBP irrigation purposes. As outlined earlier we discharged to Water use during the year related primarily to production the Preston River during a high rainfall event. processes, particularly our cooling towers at Kwinana. At Albany some of our contaminant discharges increased Total water consumption for our Kwinana, Albany and during the year. Phosphorous increased from 208 kilograms last Esperance sites was estimated to be 3,930 megalitres, down year to 216 kilograms this year. Fluoride discharges increased eight per cent on last year. from 568 kilograms to 654 kilograms. But nitrogen discharges Our total water consumption per tonne of fertiliser and decreased from 2,999 kilograms to 1,469 kilograms. Our chemical production was estimated to be three kilolitres, preferred option for managing the wastewater is discharge to the same as last year. the reticulated mains sewerage system as this will divert all Water sources at those sites included: discharges from Princess Royal Harbour to a tree farm. We • scheme water (4.5 per cent); continue to discuss this with the Water Corporation and other industries. We took action to reduce nitrogen entering our • groundwater abstracted through bores (95.2 per cent); drainage system and will continue to implement our nitrogen and efﬂuent reduction plan next year. • reused/recycled water (0.3 per cent). At our Kwinana site: In addition we used 415 megalitres of reverse osmosis water • discharges of metals increased from 316 kilograms last from Western Power in our demineralisation plant. year to 659 kilograms this year; REUSE AND RECYCLING • nitrogen discharges increased from 40,580 kilograms to Construction of the Water Corporation’s Kwinana 42,883 kilograms; Water Reclamation Plant (KWRP) was completed and • phosphorous discharges increased from 6,368 kilograms commissioning occurred in early 2005. The project to 7,445 kilograms; and will enable industry to use treated wastewater from the Woodman Point treatment plant which will in turn reduce • ﬂuoride discharges reduced from 5,329 kilograms to the industrial use of scheme water. We completed installation 3,230 kilograms. of the necessary pipe work and instrumentation to receive high quality treated water from the KWRP and to discharge site wastewater to the Sepia Depression Outfall. We are now awaiting the conclusion of contractual negotiations in order to commission the new equipment. “Our total water consumption per tonne of The disposal of wastewater from industry to the Sepia Depression Outfall, which is the second phase of the KWRP, fertiliser and chemical production was estimated received ministerial approval. This second phase will enable to be three kilolitres, the same as last year.” discharges to Cockburn Sound to cease with the exception of rainfall, maintenance or unusual events. We recycle and reuse process waters in operations within and between our plants.

79. Social Responsibility Report 2005 80 CSBP 80. public. general adequate the identify plant and personnel, ensure we protect we and ensure to which place in risks are by of controls assessment methods make of hazards, number a have We PROGRAMMES Hazard andrisk our by provided practitioner medical physiotherapist. on-site services and visiting of Officer, work with Health to employees Occupational return the injured manage all actively to continue We 5)(see Figure year last 19 with compared year, the during occurrences to There were 17 workers compensation claims reported, relating COMPENSATION WORKERS management executive months. two very all held are which at meetings, item Board at all reported and monthly held are agenda which meetings, first the as by and are discussed management distributed Safety statistics injury serious one time. lost days because 37 in year resulted this high was ATLR Our year. this 32 to year last 34 from injuries workplace in 14 was 12.5with (compared year). last reduction was There a injuries, further such of severity the of measure a provides which (ATLR), Rate Lost Time there Average Our year, LTIs. the three were during and 4, Figure see (compared year) two last 2.4 was with Rate Frequency Injury Time Lost Our TIME LOST no towards working on focused emissions. contaminant remain to continue we principles management resource water our with In accordance effluent. our of proportion small a treating only wetland our and time of period a for emissions nitrogen in increase to led an that plant cyanide sodium our in incident a specific increased has removing is 83) page wetland nutrient-stripping wetland the entering water from nitrogen pilot our Whilst with acrisis situation.” confidence inourabilityto effectivelydeal two exercisesoverthelastyear toconsolidate “Our CrisisManagementTeam conducted Safety andhealth

Social Responsibility Report 2005 Report Social Responsibility , the total nitrogen discharged to Cockburn Sound Sound Cockburn to discharged nitrogen total the , . Figure: 4 LOST TIMEINJURY FREQUENCYRATE* 1 2 3 4 05 04 03 02 01 (see Figure 3, page 79). page 3, Figure (see *Contractor hoursandLTIs included 1 July00-30June05(asatSeptember05) 5.8

8.8

5.4

2.4

This is associated with with associated is This 2.0 (see Case Study on on Study Case (see

Our emergency teams responded to a number of on-site on-site of year. the number during a alarms fire to false responded teams emergency Our exercise multi-agency Kwinana. at a site on and with exercises together training year, off-site the full during to conducted were ability exercises our desktop in of number A situation. confidence crisis a with deal effectively consolidate to year last the over exercises two Team conducted Management Crisis Our RESPONSE EMERGENCY safety assessments. job risk Studies, team-based and analysis Operability and Hazard include These that employees always take time to assess safety risks before before risks safety to assess time take always Safety employees that our ensuring at aimed is which to Take Charge” Time “Take initiative called seconded employee-based an commenced we Representative Department, Safety a demolition, Using including a activities. in risk operations, significant any and work completed large construction our assessments of with number year continued the Assessments Risk throughout Team-Based of process The DoIR. to and provided then are and reviewed are QRAs to our changes processes These when we updated make significant 2005. June was in and year the completed throughout continued process QRA The (QRAs). Assessments Risk the by Quantitative of assessed use is MHF our from risk public potential The reviews. regular at finalised and tracked are improvements required All months. 18 every occur Hazard (MHF) Major our Facilities for Reports Safety the of audits External ASSESSMENT RISK for operations. our permits and licences We required hold all the and conducted. assessment sites risk each of date our the show at to reorganised was use register Sheet Data for Safety Material approved chemicals 2,000 for about of management the improve to requirements continues Alert Chem appropriate out transport. sets such Service Fertiliser that Bulk the to Agreement signatories are fertiliser transporting for our contractors the procedures of Many and our transport. of training product all several detailed and for chemicals plans have bulk We management operations. transport safely our are detailed around products transported and manufactured stored and materials raw All STORAGE AND HANDLING MATERIALS did that not those did and minor. were incidents operations or these equipment of our as to Most relate locations Esperance. regional as and away area far metropolitan the in chlorine of leaks number a attended also teams emergency Our Figure: 5 NUMBER OFWORKERSCOMPENSATION CLAIMS 1 2 3 4 05 04 03 02 01 33

starting a job. The initiative was not entirely successful and • consulting the community, local governments and we are reviewing its implementation prior to a relaunch of regulators, on plans to expand the ammonium nitrate a broader behaviour-based safety programme. production facility and AGR’s sodium cyanide production facility; EMPLOYEE WELLBEING • delivering a presentation to the Kwinana Community and Our first aid centre at Kwinana is the central area for a Industries Forum explaining AGR’s plan to expand the large number of support services and programmes aimed sodium cyanide production facility; at improving employee wellbeing. The centre runs a number of special health-focused programmes, such as • participating in the Kwinana Industries Public Safety counselling, health awareness topics, fitness programmes Liaison Group, which meets in a public forum involving and assessments, audiometric testing, remedial massage, community and regulatory stakeholders, to review public immunisations, subsidies for health club memberships, safety issues; physiotherapy and health programmes looking at risk • making available community information bulletins and factors. We also offer annual medicals to employees. conducting community information sessions in Bayswater Employees who do suffer work or non-work-related injury to fully inform the local community about our plans to or illness have access to a full range of health support remediate the former Cresco fertiliser site in Bayswater; networks to ensure they are provided with the most suitable • continuing to support the Community Information return to work programme. Service, a telephone-based service that provides access to a range of information about industry; • participating at Board and Council levels of PACIA to Community assist in developing new policies and approaches; STAKEHOLDERS • participating in the Fertilizer Federation of Australia Our stakeholders include our employees, our customers, to enable participation in relevant issues with other manufacturers suppliers and distributors; our suppliers and other contractors, relevant government 81 agencies, the local communities in which we operate, and • providing emergency and treatment training by our shareholders in our parent company, Wesfarmers Limited. Occupational Health Officer to hospital staff in Laos on We are committed to open communications with our many how to deal with sodium cyanide incidents; stakeholders and acknowledge the community’s interest in • participating in the Chamber of Commerce and Industry our operations. Our stakeholder liaison activities during the to liaise with other industries and participate in the year included: development of new policies; and CSBP

(Left) Staff with goods donated by employees to help victims of the tsunami disaster. (Right) Managing Director, Keith Gordon, with Murdoch University Pro Vice Chancellor Kateryna Longley at the launch of “Science @”, a science education programme supported by CSBP.

81. Social Responsibility Report 2005 82 CSBP We frequently provide information to key stakeholders stakeholders our key both for produced to are Newsletters business. information our about provide frequently We REPORTS AND NEWSLETTERS Communication smokey a have can complainants. all to that Weresponded flame appearance. yellow visible a in results conditions these under gas natural of combustion The met. are flare conditions equipment to mechanical that and requirement process safe and a correct ensure to is time of it period short a for gas which natural during up starting of process the in was plant The flare. plant ammonia the from in earlier to related smoke outlined visible complaint The remaining report. as this odours, to related complaints Seven were parties. external Three from were five Albany. and at employees from were two and site Kwinana our related to six – year the during complaints eight received We FEEDBACK/COMPLAINTS organisation. our of parts various to groups visitor the During year we also hosted tours for a number of different initiatives. operations improvement our on environmental and updates providing as well as at Kwinana, particularly groups, interest community and government for local and Wepresentations site to tours conduct continue basis. ongoing an on community local the of interests and concerns the into insight an provides survey which attitude have community we general a from Council results to access Industries Kwinana the of member a As representatives by attended forum, stakeholder a hosting • 82. with packages education science of series a developing • and education health, safety, community of number a • areas rural in groups improvement farming of number a • of Centre University’s Curtin of sponsorship major and our • organisations including: community Australia, Western of throughout projects number a support We SUPPORT COMMUNITY business. our finalised. being are to website the of relating section environment the to improvements information of range A health and safety environmental, including for community, the operations our about information contains Our (www.csbp.com.au) website WEBSITE 2005. February in stakeholders our to Responsibility and distributed Social publication as a separate printed was Report 2004 Wesfarmers the of section Our such site. projects, Bayswater the as individual cover and to safety, as audiences such topics, external broad of number a and employees Wesfarmers Social Responsibility Report. Each year, year, Each the participants. to of Report. industry aspects at to raised the are Responsibility forum provided issues answers detailed and various Social discussed community Wesfarmers that agencies, organisations government of Kwinana Rockingham region in a bid to increase local local increase to science. in bid interest a student in region Rockingham Kwinana will the of activities series industrial and The @”. commercial major on focus “Science called University Murdoch and apprenticeship as well awards. as university projects, environment and knowledge techniques; farming new of participants’ extend to forum a as act which Production; Cleaner in Excellence

Social Responsibility Report 2005 Report Social Responsibility

• generating data to validate and improve our fertiliser fertiliser our improve fertiliser and validate of to data methods generating • effective more investigating • conditions; field under products fertiliser new evaluating • include: work the of objectives specific The quality. and productivity plant improving and uptake nutrient maximising by user end the for returns economic to enhance is research of this aim underlying The activities. research agricultural own our in year each $900,000 about We invest Sustainability Albany Australia’s of Western University the • Research Turf Australia’s Western of University the • including: Weprogrammes research a also support the range of agricultural by used and reagent use gold industry. a safe mining cyanide, the sodium into of research disposal support we Research Association Industry Minerals Australian the of member a As RESEARCH more broadly contribute to the economic development of of development Australia. Western innovation economic the to and work, markets contribute new broadly reach hard more to AGR enabled the that success and acknowledged award The 2004 Exporter). the (Emerging Award Export and subsequently Industry Australian and Export & Exporter) Industry (Emerging was Australian Awards venture Western joint 2004 the production awarded cyanide sodium AGR Our Award. Sustainability Sustainability PACIA For 2005 the and Award Platypus FIFA 2004 the awarded our recognised in We water which achievements management. were significant also Award) Foundation Environment Water (State Premier’s Award the won we year the During AWARDS environment. the on impact the products our of minimise to strive we initiatives these Through achievements inwatermanagement.” Award) whichrecognisedoursignificant Foundation Award(StateEnvironment “During theyearwewonPremier’sWater recommendation computer models, based on soil and and soil on services. analysis based plant models, computer recommendation and application; of utilisation the nitrogen. perennial and phosphorus enhancing of in role systems the grazing assessing pasture project research Fund and the Agriculture; of with Department conjunction in west south the in on pastures research dairy fertiliser nutrient and and turf for strategies irrigation management investigates which Programme

(Above) Environmental Adviser Mark Germain testing water Case Study quality at the nutrient stripping wetland.

Since the early 1990s we have reduced the load of nitrogen The already low concentration of some metals in the 83 and phosphorus in our wastewater discharges to Cockburn wastewater stream entering the wetland has also been Sound. This has been achieved through the implementation reduced. Efficiency of removal has changed during the of engineering modifications that enable reuse of wastewater growth period of the sedges which are now 1.5 metres within and between our plants to reduce nutrients entering high. our drainage systems. When we modified the water regime to maintain a water In 2001 we began investigating options for further reductions level in the wetlands at all times an increase in mosquitoes to ensure we continually improved. This research resulted occurred in the surrounding area. Whilst the nutrient in the construction of a pilot nutrient stripping wetland removal efficiency increased during this period, we have CSBP which was opened by the Minister for the Environment returned to the previous regime of emptying the wetland in June 2004. The wetland contains sedges which assist and therefore the efficiency has reduced from around 70 biological processes to reduce the level of nitrogen and per cent to 40 per cent. Mosquito-specific control measures phosphorus in the effluent stream. We tested different are currently being reviewed. combinations of effluent systems and various management The wetland forms one aspect systems, including determining the correct carbon-nitrogen of water management and we ratio to promote the best possible sedge growth. continue to work towards developing The average nitrogen removal of the water entering the and maintaining diverse water wetland over the year was 27 per cent with a maximum sources and include effective water of 70 per cent. Phosphorus was also being removed at an supply management in all relevant average of 67 per cent. planning projects.

Priorities for the future

At least halve our Lost Time Injury Frequency Rate (LTIFR) Continue to work safely and effectively to deal with our with an ultimate aim of zero Lost Time Injuries (LTIs). historic wastes.

Continue to reduce workplace injuries. Increase the use of recycled water and contribute to reduced scheme water use in Kwinana. Reduce contaminant emissions. Maintain our contribution to the social wellbeing of the Obtain or retain endorsement of our safety reports for our Western Australian community. four major hazard facilities.

83. Social Responsibility Report 2005 84.

Insurance

Our division was formed in late 2003 by combining Wesfarmers Federation Insurance with the acquired Australian and New Zealand businesses of Edward Lumley Holdings.

With 94 offices in Australia and 11 offices in New Zealand, we employ more than 1,400 people. www.wfi.com.au www.lumley.com.au www.lumley.co.nz

(Above) Lumley General New Zealand’s Rick Cartmill meeting with a client at the Auckland head ofﬁce. Report priorities Outcomes

Reducing our LTIFR by at least 50 per cent with a target Not achieved. Our Lost Time Injury Frequency Rate (LTIFR) of zero LTIs. reduced by 26 per cent from 2.3 last year to 1.7. There were four Lost Time Injuries (LTIs).

Implementing a safety incident reporting system across all Achieved. All business units were provided with safety incident our businesses. reporting instructions.

Continuing the conversion of vehicles to LPG fuel. Partially achieved. Six new LPG-fuelled vehicles were acquired, but overall the percentage of such vehicles decreased from 19 last year to 17.

Overview The main challenge facing our businesses on an ongoing Safety has a high profile across all our businesses and all basis is to operate them in a way that minimises any adverse lost time injuries (LTIs) must be reported immediately to impact on the environment or the communities in which our Managing Director. 8 5 we operate. Data in this report is for our WFI and Lumley businesses in In dealing with this challenge, the main environmental Australia and New Zealand, unless otherwise stated. areas on which we focused our attention during the year were electricity usage and using cleaner types of fuel to reduce the impact of vehicle emissions. Business management Our Wesfarmers Federation Insurance (WFI) business continued a programme of upgrading its old cathode TRAINING ray tube (CRT) computer monitors with new flat screen Ergonomic training and advice is provided to all employees monitors. The new monitors use 40 watts compared with either face-to-face or through our intranet. Insurance 70 watts for the old screens, resulting in a 43 per cent A first aid facility is provided at each of our head offices in reduction in electricity. Additional benefits of flat screen Perth, Sydney and Auckland and 38 staff have current first monitors over CRT monitors include reduced eye strain, aid qualifications. reduced radiation emission and extended equipment life. It is expected that all CRT monitors at WFI will be replaced by All of our WFI staff that are required to drive significant 30 June 2007. Our Lumley General Australia (LGA) business distances due to work requirements have undertaken a and our Lumley General New Zealand (LGNZ) business defensive driving programme to ensure they are trained to have commenced similar replacement programmes. In total, drive on different types of surfaces and in different weather the number of new flat screen monitors increased from 145 conditions. Our LGA and LGNZ employees are not required (10 per cent) last year to 330 (23 per cent) this year. to undertake this training as these businesses are located in We continue to prefer using vehicles powered by cleaner metropolitan centres and involve considerably less driving. fuels where feasible and practicable. EMERGENCY At the end of the year, 43 per cent of WFI vehicles were All our major offices have documented emergency LPG-fuelled, compared to 52 per cent last year. Ten per evacuation plans. cent of LGA vehicles were LPG-fuelled, compared with five per cent last year. In total, 17 per cent of our fleet now Compliance runs on LPG, compared with 19 per cent last year. None of our LGNZ vehicles use LPG, but that business intends ENVIRONMENTAL to participate in Green Plan, a programme that involves We are not aware of any potential non-compliance planting trees to offset emissions from vehicle exhaust. during the year with environmental legislation or other The main safety area on which we focused our attention environmental requirements. during the year was reducing workplace injuries. NATIONAL POLLUTANT INVENTORY (NPI) We have addressed workplace injuries through LGA’s We do not use any of the substances listed under the NPI compulsory workplace ergonomics training, well- during the year and therefore we are not required to report documented Occupational, Health and Safety (OHS) under the NPI. policies and an OHS committee. Our WFI business has written OHS policies and our LGNZ business also has formal HEALTH AND SAFETY OHS procedures. We are not aware of any potential non-compliance during Health and safety matters are constantly under review across the year with health and safety legislation or other health all of our businesses. For example, LGNZ is in the process and safety requirements. of updating a number of procedures following a safety audit by PricewaterhouseCoopers. Following these changes LGNZ LICENSING AND APPROVALS will become compliant with the New Zealand Workplace We are not aware of any potential non-compliance Safety Management Practices requirements and we expect during the year with licensing or approval conditions or this to happen next year. other requirements.

85. Social Responsibility Report 2005 Management systems OTHER EMISSIONS We are not aware of any emissions of ozone-depleting SAFETY MANAGEMENT SYSTEM (SMS) substances such as chlorofluorocarbons (CFCs), halons, An integrated safety incident reporting system that requires carbon tetrachloride, hydrochlorofluorocarbons (HCFCs), all lost time injuries be reported directly and immediately hydrobromofluorocarbons (HBFCs), methyl bromide or to our Managing Director has now been implemented by all bromochloromethane (BCM) during the year. our businesses.

OTHER MANAGEMENT SYSTEMS Waste

We operate financial, human resources, strategic planning, SOLID WASTE budgeting and reporting management systems. Given the nature of our business operations, we did not POLICY measure solid waste generation and we are not planning We have addressed workplace injuries through LGA’s to in the future. compulsory workplace ergonomics training, well- LIQUID WASTE documented OHS policies and an OHS committee. Our WFI business has written OHS policies which are The only liquid waste of which we are aware is vehicle oils internally audited annually. Our LGNZ business has formal and lubricants replaced when our vehicles are serviced by OHS procedures. external motor mechanics. Health and safety matters are constantly under review across RECYCLING INITIATIVES all of our businesses. For example, LGNZ is in the process Our major offices in Perth, Sydney and Auckland of updating a number of procedures following a safety have dedicated paper recycling bins that are collected audit by PricewaterhouseCoopers (PwC). Following these regularly during the year by a waste management contractor changes LGNZ will become compliant with the New Zealand for recycling. Workplace Safety Management Practices requirements. We 86 expect this to happen next year. Our LGA and WFI businesses are considering participating in “Close the Loop”, a recycling project run by a leading global recycler of imaging consumables including inkjet cartridges, laser toner cartridges, drum units and copier Environmental bottles. Using state of the art materials separation processes Air (atmospheric emissions) cartridges are recycled with no waste to landfill.

GREENHOUSE GAS EMISSIONS Land

Our total greenhouse gas emissions were estimated to be CONTAMINATION Insurance 5,194 tonnes of carbon dioxide equivalent and this equates to 5.1 tonnes of carbon dioxide equivalent per million We are not aware of any contamination issues, except for dollars of premium income, up nine per cent on last year. some ground water contamination at our Perth head ofﬁce site at Bassendean which is leased from Wesfarmers Limited. The only sources of greenhouse gas emissions that we CSBP placed a bore on the site during 2003 as part of a have not included are waste disposed off-site and a small broader groundwater management investigation upstream amount of natural gas used in ofﬁce kitchens. As we did not and downstream from the former Cresco fertiliser site at measure the quantity of waste we were unable to estimate nearby Bayswater, now owned by CSBP. We are upstream associated greenhouse gas emissions. of this site and monitoring shows that the contamination The greenhouse gas emissions were due to imported electricity only impacts downstream. Accordingly, we believe the (65 per cent) and vehicle emissions (35 per cent). contamination probably resulted from industrial activity In calculating greenhouse gas emissions for electricity we in the surrounding area north of (or upstream from) us. have estimated the consumption on a region-by-region basis We have no reason to believe that the contamination and applied the appropriate emission factor for each region. poses any immediate danger to health because the Our LGNZ business intends to participate in Green Plan, a shallow groundwater is not being used for human programme that involves planting trees to offset emissions consumption. CSBP will continue to monitor groundwater from vehicle exhausts. at this location.

(Left) WFI Dalwallinu Area Manager Alex Barbetti handing out calico bags to clients at the Dowerin Field Day in Western Australia. (Right) Loss Control Manager Jim Wiles (right) discussing a pre-trip inspection with truck driver Scott McKenzie as part of Lumley New Zealand’s support for road safety.

86. Social Responsibility Report 2005 Figure: 1 Figure: 2

LOST TIME INJURY FREQUENCY RATE* NUMBER OF WORKERS COMPENSATION CLAIMS

1 July 00 - 30 June 05 (as at 30 September 05) Data prior to 1 July 2003 is for our WFI *Contractor hours and LTIs not included business only. Data thereafter includes our Data prior to 1 July 2003 is for our WFI business WFI business and our Lumley businesses. only. Data thereafter includes our WFI business and our Lumley businesses.

15 2.3 1.7 1.7 1.5 1.6 9

5 4 1

01 02 03 04 05 01 02 03 04 05

Resource usage It is expected that all CRT monitors at WFI will be replaced by 30 June 2007. Our LGA business and our LGNZ business ENERGY have commenced similar replacement programmes. Our 87 Energy use during the year related primarily to imported business has now replaced a total of 330 CRT monitors. electricity for use in our offices and fuels for our vehicle fleet. NATURAL GAS Total energy consumption was estimated to be 37,488 We are not aware of any significant use of natural gas. gigajoules, down 12 per cent on last year. Our total energy consumption per million dollars of Water premium income was estimated to be 36.8 gigajoules, down CONSUMPTION 11 per cent on last year. Our main use of scheme water during the year related to Energy sources are detailed below. Insurance toilet flushing and drinking water. FUEL In addition, our WFI head office is located on Petrol, diesel and LPG accounted for 67 per cent of our extensive grounds and uses bore water for garden total energy consumption by gigajoule. Our petrol, diesel and lawn watering. and LPG consumption was estimated to be 617,704 litres, Water usage was not metered. 11,584 litres and 138,262 litres, respectively. The figures for petrol and diesel are significantly lower than last year and last year’s figures may have been overestimated as a result of extrapolating from a high-use period. Safety and health

We continue to prefer using vehicles powered by cleaner LOST TIME fuels where feasible and practicable. Safety has a high profile across all our businesses At the end of the year, 43 per cent of WFI vehicles were and all LTIs must be reported immediately to our LPG-fuelled, compared to 52 per cent last year. Ten per cent Managing Director. of LGA vehicles were LPG-fuelled, compared with five per cent last year. In total, 17 per cent of our fleet now runs on Our Lost Time Injury Frequency Rate (LTIFR) was 1.7 LPG, compared with 19 per cent last year. None of our LGNZ (compared with 2.3 last year) see Figure 1, and during the vehicles use LPG, but that business intends to participate year, there were four LTIs. Our Average Time Lost Rate in Green Plan, a programme that involves planting trees to (ATLR), which provides a measure of the severity of such offset emissions from vehicle exhausts. injuries, was 15.9 (compared with 6.1 last year). ELECTRICITY The LTIFR for WFI was 4.0 (compared with zero last year), Electricity accounted for 33 per cent of our total energy for LGA was zero (compared with 2.9 last year) and for consumption. Our electricity consumption was estimated LGNZ was 1.5 (compared with 4.7 last year). to be 3,434 megawatt hours, up 27 per cent on last year. The ATLR for WFI was 17.2 (compared with zero last year), The increase primarily relates to LGA taking an additional for LGA it was zero (compared with 2.3 last year) and for 1,650 square metres of office space for its head office LGNZ it was 11.8 (compared with 8.7 last year). expansion. This equates to a 75 per cent increase of its head office space in Sydney and has resulted in These statistics do not include contractor hours and injuries. increased power usage. Last year’s figure may also have Safety statistics are distributed and discussed by management been underestimated. every two months and reported to our Boards every Our WFI business continued a programme of upgrading two months. its old cathode ray tube (CRT) computer monitors with WORKERS COMPENSATION new flat screen monitors. The new monitors use 40 watts compared with 70 watts for the old screens, resulting in a 43 There were nine workers compensation claims reported, per cent reduction in electricity use. Additional benefits of relating to occurrences during the year, compared with 15 flat screens over CRT monitors include reduced eye strain, last year (see Figure 2). Of these, seven related to WFI, one reduced radiation emission and extended equipment life. to LGA and one to LGNZ.

87. Social Responsibility Report 2005 Hazard and risk The scheme also assists in resolving disputes between uninsured drivers and another person’s insurance company PROGRAMMES in relation to motor vehicle property damage (ie third As a major insurer it is in our own commercial interest party claims) and provides information about any general and in the interests of the community at large for us to insurance matters. If the decision of the IOS is acceptable encourage safer conduct on the roads. In both Australia to the complainant then the decision is binding on us for and New Zealand we are market leaders in the provision amounts up to pre-imposed limits. of commercial motor/fleet vehicle insurance and have used our position to improve community safety standards in the In Australia, 136 complaints were dealt with internally- areas of vehicle and driver safety by offering services in the 48 related to WFI and 88 to LGA. Of these complaints, following areas: 22 were referred to the IOS. Two related to WFI and 20 to LGA. • fleet safety surveys – both light and heavy vehicle fleets (audits for health and safety compliance across all Our LGNZ business is a member of the Insurance Council levels); of New Zealand and must comply with the Fair Insurance • follow-up guidance and advice at management level; Code. This code outlines the steps to resolve complaints and disputes raised by policyholders. • safety awareness seminars; Complaints in New Zealand or by people other than • stress and fatigue seminars; policyholders in Australia can be made directly to one of • benchmarking safety performance; our offices where appropriate follow-up action is initiated. • conference presentations; and Where matters cannot be resolved to the complainant’s • liaison with transport industry groups, such as the Land satisfaction, the matter can be escalated to the Insurance Transport Safety Authority, Accident Compensation and Savings Ombudsman (ISO). During the year, six Commission, Road Transport Association and National complaints were referred to the ISO of which four were Road Carriers. 88 ruled in LGNZ’s favour, one in the complainant’s favour and RISK ASSESSMENT one other unresolved. All accidents and incidents during the year were reported to the national human resources manager and our LGA Communication business had an OHS committee in every office reporting NEWSLETTERS AND REPORTS to that manager. Quarterly newsletters are provided to all staff through either During the year our field vehicles and passenger vehicle hard copy distribution or through the intranet. fleet were involved in 88 incidents for which insurance claims were made, totalling approximately $121,584. WEBSITE Insurance Of these, 24 related to WFI, 29 to LGA and 35 to LGNZ. Our websites: EMPLOYEE WELLBEING • www.wfi.com.au We offered an employee assistance programme during the • www.lumley.com.au year that provides company-funded counselling services for • www.lumley.co.nz employees and their immediate family members in relation to issues such as alcohol, gambling and drugs. LIAISON GROUPS Free influenza vaccinations were again offered on site to all Our WFI and LGA businesses are members of the Insurance employees in the Sydney, Auckland and Perth head offices. Council of Australia. LGNZ is a member of the Insurance During the year 236 employees took up the offer. Council of New Zealand and Rieny Marck, LGNZ’s Chief Ergonomics advice continued to be made available to our Executive Officer, is vice-president of that organisation. Lumley employees through the intranet. COMMUNITY SUPPORT Our businesses made community contributions in the form Community of sponsorships and donations totalling $363,981. Some of the major beneficiaries were the Create Foundation, Farm STAKEHOLDERS Safe and the Auckland City Mission. Our stakeholders include our employees, our policyholders, SCHOLARSHIPS our reinsurers, relevant government agencies such as the Australian Prudential Regulatory Authority (APRA) and the Create Foundation is a non-profit organisation that exists to Australian Securities & Investments Commission, the local ensure that children and young people in care are afforded communities in which we operate and shareholders in our the same life opportunities as all young Australians. parent company, Wesfarmers Limited. During the year LGA joined forces with the Create Foundation FEEDBACK/COMPLAINTS (www.create.org.au) to deliver a “Work Preparation Programme”. The young people were encouraged to show Our LGA and WFI businesses are bound by the General interest in the programme by their case or youth worker. Insurance Code of Practice. The code outlines steps to resolve complaints and disputes raised by policyholders. LGA and the Create Foundation hoped to be able to support We have an internal dispute resolution process in place these young people by providing opportunities that may which is available to policyholders who have a complaint not otherwise be available. or dispute against us. This is a free service and is available The programme was designed to give six young people nationally with all matters treated in confidence. Where the opportunity to spend a full week learning the skills matters cannot be resolved to a policyholder’s satisfaction, that will assist them in obtaining future employment. we advise complainants of their rights to take the matter up At the conclusion of the programme LGA offered two of the with the Insurance Ombudsman Service (IOS). young people a 12 month traineeship during which time The IOS is a national scheme which assists in resolving they will not only learn new working skills but they will disputes between policyholders and their insurers. also complete a Certificate II in Business Administration.

88. Social Responsibility Report 2005 (Above) Vehicle repairer specialist Chris Meredith at one of Lumley’s Repair Network workshops. Case Study (Inset) Infrared paint dryers reduce environmental impact.

As a part of our commitment to provide quality repairs Environmental considerations in some circumstances 89 and fast repair turn around times, LGA has established a complement health and saf ety regulations. For instance, national “Pref erred Repair Network”. Members of the Lumley dustless sanding systems protect the work er as well as Repair Network are specialists in motor ﬂeet repairs and the environment. appointment to the Network is based on stringent selection Lumley requires all repairers to hav e working occupational criteria and the geographical needs of customers. health and saf ety procedures in place which are compliant Part of the criteria is the repairers’ obligation to the with the relevant workplace saf ety requirements. Modern environment and their responsibilities in relation to health technology, along with simple issues such as having and saf ety legislation. workbenches at the correct height, can signiﬁcantly reduce

Insurance Environmental criteria include: downtime and improv e production. • disposing of waste in a responsible manner; and By appointing repairers with prof essional attitude, modern repair shops, forward thinking repair methods and an • avoiding pollutants getting into the air. ex cellent service commitment, LGA is able to guarantee The use of modern technology, such as infrared paint drying the quality of repairs and customer service standards instead of diesel or gas-ﬁred ov ens, assists in reducing which help mak e the post -accident experience less impacts on the environment. Compliance with environmental stressful while minimising negativ e environmental and and other regulations is a minimum requirement. workplace impacts.

Priorities for the future

Reduce our Lost Time Injury Frequency Rate (LTIFR) by at least 50 per cent with a target of zero Lost Time Injuries (LTIs).

LGNZ to participate in Green Plan to offset the effect of vehicle emissions.

Continue our association with the Create Foundation.

Increase our recycling efforts.

89. Social Responsibility Report 2005 90.

Other businesses

SOTICO further soil removal may be required but the extent and timing of any such work is yet to be discussed with the DoE With the sale of the jarrah assets of Sotico in August 2004, and the current owners. More information will be provided we are no longer involved in the native forest sector. Our in next year’s report. only active engagement in forest products now is through a 50 per cent share in the Wespine plantation pine sawmill at Dardanup, in Western Australia. TRANSPORT Our Corporate Office has assumed responsibility for We sold our remaining road transport operations in late 2001. managing the remediation of contamination at former Sotico Contamination from fuel spillages at sites in Port Hedland, locations and we will continue to report on these issues. Kalgoorlie and Karratha in Western Australia formerly occupied by this business is being addressed with advice PEMBERTON from external consultants. Soil excavation was carried out We were involved in treating timber at the Pemberton at Carnarvon in July 2005, groundwater sampling has been 90 sawmill from 1971 until 1987. Treatment also occurred under conducted at Port Hedland to help finalise remediation earlier ownerships, including the period when the mill was options and test well monitoring continues at Karratha. operated by the State government from 1914 to 1961. These treatment processes have resulted in contamination with AIR LIQUIDE WA chemicals including arsenic and pentachlorophenol (PCP), the latter containing levels of dioxin, a contaminant by- We are a major manufacturer and distributor of a broad range product of PCP that was also produced during historic of industrial, medical, scientific and environmental gases burning of PCP wastes as part of mill operations in earlier including oxygen, nitrogen, argon, acetylene and carbon times. The State government has accepted responsibility for dioxide and we provide home healthcare services. We are tackling the arsenic contamination, given that chemical’s 40 per cent-owned by Wesfarmers Limited (and managed use during its ownership of the mill, and we will fund and by Wesfarmers Energy) with the remaining shares held by manage the PCP clean up process. At a public meeting held Air Liquide Australia Limited, a wholly-owned subsidiary of Other businesses in Pemberton in December 2003 we briefed the community Air Liquide of France. Our head office is at Myaree, Western on the possibility of using a bioremediation technology Australia, and our four operational sites are located south of to treat the PCP contamination. Further investigation has Fremantle at Kwinana and Henderson. One of the Kwinana led us to the conclusion that the best option in dealing sites, an air separation unit for the HIsmelt project, was with the major source of contamination - in sludge ponds commissioned in February 2005 but we do not report on across the road from the mill site - is for the material to this operation as the owners provide the main inputs of be removed, made suitable for transport and taken to an steam, electricity and water. We have a healthcare division approved landfill facility. in suburban Perth and branches at Kalgoorlie and Darwin and operate through a network of 80 agents in WA and the These matters will be further discussed with the Department Northern Territory. We employ 78 people. of Environment (DoE) and other parties before a final remediation plan is adopted. We hope to begin work OVERVIEW on the actual remediation in the summer of 2005/2006. The State government continues to assess options for The highlight of our year’s safety performance was the achievement in June 2005 of 13 years without a Lost Time treating the arsenic contamination. Injury. Our main environmental challenge is management MANJIMUP PROCESSING CENTRE of lime waste - a by-product of acetylene production at our Henderson site – to ensure removal by our contractor As reported last year, creosote contamination of soil of the waste without any discharge to land. In safety, we and groundwater resulting from timber treatment at the focused our attention on the Safer Driving Programme Manjimup Processing Centre (MPC) for a brief period in the which provided training to employees and contractors. mid 1980s was discovered in tests conducted prior to the We also developed an integrated Industrial Management sale of Sotico’s jarrah assets. System (IMS) to link safety and operational procedures via Extensive remediation was carried out at the site in April, the intranet. May and June 2005 involving the removal of about 2,000 cubic metres of affected soil to the Manjimup landfill facility Management systems where the disposal contractor has assumed responsibility for further treatment. A management plan being prepared Our Environmental Management Procedures and our Safety for approval by the DoE will include ongoing monitoring Management System are available on the IMS as are our of on-site and off-site groundwater. Modelling referred to environmental and safety policies which are included in all last year revealed that no remedial action was required in induction folders for new employees. We maintained our dealing with groundwater as it was predicted that impacted quality system accreditation to AS/NZS ISO 9001:2000 and groundwater would not reach any off-site receptors. With five internal audits were carried out. the contamination source now removed, monitoring will be used to confirm the model’s prediction and to assess the Environmental rate of natural attenuation in the groundwater. We complied with the conditions of our Department of In July 2005 further work was carried out to investigate Environment licence. The Kwinana air separation unit possible contamination arising from timber treatment operates 24 hours a day. Noise monitoring was not conducted operations on another part of the MPC site. It appears that during the year and no complaints were received.

90. Social Responsibility Report 2005 tonnes relates to stations which we built, own and operate operate and own built, we which stations to relates tonnes 197,063 amount Of this equivalent. dioxide of carbon tonnes to be 324,231 were estimated emissions gas greenhouse Our power our all at run-off. stormwater and oil separators waste control to oil stations section” “three install We is contract. the of a condition sites as requirements regulatory meet client-operated at to stations Noise power our We design operator. the by lawn. monitored planting or areas concreting by Vale Canning at and cover ground a as metal blue using by operate and and own Pedy we Coober stations power Midwest Leonora, the at exposure dust minimise We dust control. sites manage operational Most client-owned Environmental and accountabilities. and Safety responsibilities and (Health, and durations frequencies who is included, required, actions Plan describes plan The and implementation. systems for their and framework the Management policies our defines which a Environment) have We Management systems people. 60 about and we employ Vale is office Australia in at Western Canning head Our Power. StateWest changed from We year the during townships. name area our and remote and operation the industry for Gas, stations mining power construction, Kleenheat gas-fired and design, diesel of of maintenance the subsidiary in wholly-owned specialising a are We GENERATION ENERGY www.airliquidewa.com.au. at website our from available is operations our on information Further WEBSITE families. fitness immediate their of and members and employees all to health voluntary to and assessments we offer access an Employee Programme Assistance have Employees goods. dangerous of storage the covering Resources and exercises We from accreditation of the maintained Department Industry evacuation held we year. the and the during of system effectiveness deluge the Henderson water handle. demonstrate at to to 2005 conducted was required February in exercise are they emergency site equipment A and gases with the associated hazards in training undergo employees All identification. hazard and compliance on focusing observations safety internal 21 and with along health year the during Twenty-seven conducted were meetings safety investigated. includes were year, zero which the of of during all misses Rate near six Frequency recorded We Injury contractors. Time Lost Our Safety andhealth year. last on cent per eight down was tonne production per year).Consumption last on cent per (upthree gigajoules which was in the form of at was electricity) estimated 288,042 Our total energy use for(in excess 2004/2005 of 99 per cent of contractor. licensed a by of disposed is which liquid of Total recycled. all cent), per six (down is tonnes at 2,564 which estimated was waste of all cent), per three (up kilograms 85,332 at stream waste general solid our but estimate year, last on We basis. cent of production on tonne a per per cent per three down three about up at megalitres, estimated 100 was year the during consumption water Total users. approved to gases refrigerant re-sell to licensed are we site Henderson our At sale. for product the liquefies and impurities removes plant, ammonia CSBP adjacent the from CO recovers at Kwinana plant recovery dioxide carbon Our year. cent the per during tonne eight of production per reduction a and overall year last on cent our but per two down equivalent, dioxide gases carbon of tones 84,148 at estimated were greenhouse electricity imported produce from emissions indirect directly not do We 2

identify all risks and assess their potential impacts on on impacts potential their to assess tasks and major risks for all Analysis Safety identify Job use where We provided are required. areas storage bunded hazardous for and site on substances held are Sheets Data Safety Material year. last respectively three and misses, 32 to near 10 compared were two which and aid of employee first reported requiring were injuries were enhance incidents 34 year, to the continued During a audits and areas. internal these in awareness hazards of investigation, workplace programme accident of and incident identification environmental and safety Safety health, includes Health, Plan The injuries, Improvement year. such Environment and last of six with severity Time compared the zero zero. Average was measures Our again year. which was the Rate, during Rate Lost LTIs Frequency no were Injury There Time Lost Our Safety andhealth own built, we operate. stations and the to allocated be can cent per 59 or gigajoules last on 2,645,000 cent approximately per amount, this four Of year. about up gigajoules, 4,503,798 be to the year during was estimated consumption energy Our total Corporation. Water the of behalf on operate we which Australia Western in Point Woodmans at bio- station power the fuel included we have nor do volumes we as these measure off-site not not have disposed We waste from assets. emissions relevant included the the by on based generated two emissions electricity the of apportioned have combination we a is categories, which the In Dam, customer. Sunrise a of of case behalf on which maintain stations and those operate to we attributable is tonnes 126,705 and information is available at www.wespine.com.au. at available is information Further uses. other and manufacture furniture housing construction, for timber sawn the produces and for logs pine of Australia supply long-term Western of a government has the near Wespine with contract own Dardanup, Australia. at Western jointly sawmill in pine Bunbury, Limited plantation Building Wespine the Fletcher and Wesfarmers WESPINE www. at available is and coalandallied.com.au. information domestic Further for markets. coal export steaming produces and Wales. company, South New group Tinto a Rio of Allied, and Valley Coal by managed is mine Hunter The the in mine coal cut open Bengalla the in interest cent per 40 a has Wesfarmers BENGALLA www. at available coal is csbp.com.au. the information for Central Further nitrate in industry. mining ammonium Moura produces at It plant Queensland. nitrate fully Nitrates ammonium Queensland the integrated in Pacific Asia with Nobel partner Dyno venture joint a is Wesfarmers CSBP, Through NITRATES QUEENSLAND www.arg.net.au. at available is information Victoria. Further and Wales freight South New in rail services now and of freight operates Australia provider South and major Australia Western the in services is venture ARG the joint of States. Inc a Wyoming United & is Genesee (ARG) and Wesfarmers group between Railroad Australian The GROUP RAILROAD AUSTRALIAN is which Programme families. immediate their and Assistance employees all to offered Employee an have We positive drugs. no for one 47 and with alcohol for on 2005 results out June in Vale carried was Canning at testing employees alcohol and drug Random 2005. January in conducted was training extinguisher and awareness Fire equipment. and plant public, the employees, 91.

Social Responsibility Report 2005 Report Social Responsibility 91 Other businesses ABN 47 065 475 149 ACN 065 475 149 SMEC Australia Pty Ltd, Level 6 12 St Georges Tce, Perth WA 6000 Telephone: (08) 9323 5900 Facsimile: (08) 9323 5901 Veriﬁcation statement

VERIFICATION OBJECTIVE reporting in this report was assessed. To this end, it was Wesfarmers Limited (Wesfarmers) commissioned SMEC identified this year that the basis of calculating Greenhouse Australia Pty Ltd (SMEC) to verify the data and content gas emissions was changed, consistent with the changed of this 2005 Social Responsibility Report (the report), the approach taken by the Australian Greenhouse Office. eighth such report produced by the company. In addition, the process for developing quantitative The objective of this verification audit was to ensure information was examined for consistency with previous statements made within the report were consistent with years’ methods to ensure absolute and comparative values evidence from which they were derived and were able to quoted were derived from the same base. Verification be supported by quantitative data wherever possible. The of the reports of the minor units (Air Liquide WA and audit also seeks to highlight any ambiguities the auditors Energy Generation) occurred remote from the site. The consider apparent. Curragh Queensland Mining audit was conducted with a representative from SMEC’s Brisbane office. All other Wesfarmers holds responsibility for the preparation of the business units were audited by SMEC’s Perth office. report and this Verification Statement represents SMEC’s independent opinion. SMEC was not involved in any part of Over the past five years Wesfarmers understanding and the report preparation. utilisation of corporate social and environmental reporting 92 has matured. Significant developments in reporting VERIFICATION METHOD across all business units have resulted in enhancement As with previous years, SMEC’s approach to verification of processes and outcomes. Wesfarmers should be proud is based on emerging international best practice and this of their achievements thus far in the development of high statement is constructed based on the recommended reporting standards. The manner in which verification methodology advocated by the Global Reporting Initiative’s recommendations are dealt with is testimony to the general Sustainability Reporting Guidelines. improvements in reporting and process that have occurred. The approach to verification was Level 2 of the Environment To date, almost all the recommendations made during Australia hierarchy, as described in “A Framework for verification have been adopted by Wesfarmers. Public Environment Reporting: An Australian Approach.” Wesfarmers continues to work toward the goal of reporting (Environment Australia, March 2000). Level 2 verification on its performance on the basis of triple bottom line (or entails data verification from a selection of random samples sustainability) principles. It is apparent that this goal is of quantitative data sets and reporting systems utilised not without its challenges, particularly in the measurement Verification statement Verification to collect, consolidate and aggregate data in addition to of social and economic performance with respect to the reviewing the completeness of the report against Wesfarmers’ community external to Wesfarmers itself. These challenges policies targets and plans. are most evident in those business units with widely SMEC was commissioned to: dispersed and diverse operations, where measurement of economic indicators, in particular, is most complex. • Identify major anomalies in the report; Improvements in the collection, management and reporting • Track the data streams from collection of data and review of social, economic and environmental indicators continue of the conclusions made from the subsequent analysis to be made. A number of factors have contributed to then assess the accuracy and appropriateness of the the development of high reporting standards including processes used; and guidance and technical instructions given to the business • Review the contents of the report with respect to the units, resulting in greater consistency and accuracy of significant aspects of the organisation and the issues for site reporting. the organisation’s stakeholders. The verification process used indicated: The verification tasks entailed collection and analysis of • A high level of accuracy in the data presented. However, reports compiled by business units, site visits and interview there is still a reluctance to report quantitative achievement with personnel at Wesfarmers Corporate, Kleenheat, CSBP Kwinana, Premier Coal Collie, Wesfarmers LPG Kwinana, on specific issues within some business units; Bunnings, Curragh Mine at Blackwater in Queensland and • Datasets were generally traceable and readily identified. Wesfarmers Industrial and Safety and Wesfarmers Insurance During the audit, data trails were easily located and Division in Sydney. Where possible, effort was made to demonstrated and the aggregation and collation establish comparability of findings between reporting undertaken to reach conclusions were logically presented years and with industry standards. Such comparison would by the personnel responsible for undertaking those enable the company or business unit performance to be activities; and benchmarked against other corporations of a similar size • Some statements were made that required modification or and/or diversity. removal due to lack of verifiable support for the statement The data verification process involved reviewing the reports or the evidence available could only partially support the submitted by the business units then randomly selecting statement made. items for which verification would be sought. At each site Reporting and verification of social issues and community the processes by which data was collected, stored, analysed benefit is not without its challenges. It is desirable that and reported were examined to establish the robustness of reporting on a number of issues should be commenced in the processes used and any misinterpretation that may have the future including: occurred as a result. Interviews were held with Wesfarmers personnel responsible for each data set and processes • Clear delineation of internal and external stakeholders; used to derive conclusions reported were demonstrated. and Potential for errors in aggregation and interpretation were • Determination of the flow-on effect of the activity of explored and consistency of approach for the purposes of business units in terms of economic benefit.

92. Social Responsibility Report 2005 Overall, SMEC is satisfied that: Australian Standards (AS) – National benchmarks for products and services. • The report is a fair and honest representation of Average Time Lost Rate (ATLR) – an indicator of the average time lost for each the organisation’s policies, management systems lost time injury. and performance; • The numerical data presented in the report is Bank Cubic Metre (BCM) – a bank cubic metre is a measure of overburden valid and accurate; and removed in mining operations. • The written statements in the report present Bank Cubic Metre Equivalent (BCMeq) – a bank cubic metre equivalent is a an accurate representation of the results and measure of both coal produced and overburden removed in mining operations. progress achieved during the reporting period. CBM – Coal Board Medical GENERAL FINDINGS Glossary Environmental audit – A programme to evaluate compliance with regulations, As a result of completing the verification process, systems, programmes and policies. the following findings are made: • Wesfarmers continues to seek a consistent Gigajoule – Unit of energy equivalent to 1,000,000,000 joules. approach to measuring and reporting performance Greenhouse gases – Gases such as carbon dioxide, methane and nitrous across all business units through striving to adopt oxide which contribute to retention of heat in the earth’s lower atmosphere. best practice reporting standards. • The ongoing involvement of personnel across the Greenhouse Challenge Plus – The federal government’s programme of organisation in data collection and management, cooperation between industry and government to reduce greenhouse gas in addition to those who provided input to the emissions through voluntary action. verification undertaken by SMEC, indicates that International Organisation for Standardisation (ISO) – ISO publishes the business units maintain processes consistent with best practice in reporting. The level of internationally-agreed standards covering areas such as quality management ownership of the report, and the information (the ISO 9000 series) and environmental management (ISO 14000). within it, was very high in all instances and Liquefied petroleum gas (LPG) – A combination of, predominantly, propane demonstrated a commitment to the integrity of and butane extracted from natural gas or as a by-product of petroleum refining. the contents of the report. • Two issues should be addressed in future reports. Liquefied natural gas (LNG) – Comprising predominantly methane, it is One relates to the current practice of having a produced from natural gas that has been purified, refrigerated and condensed general disclaimer at the start of the sections to liquid form. dealing with compliance with both environmental Lost Time Injury (LTI) – An LTI is any work injury which causes absence for and safety and health requirements, followed by details of any non-compliance. The order should one day or a shift or more. be reversed. The second is to separate discussions Lost Time Injury Frequency Rate (LTIFR) – The main calculation we use about internal and external stakeholders rather to measure workplace safety performance. It is calculated by dividing the than the overlap that currently occurs. number of LTIs by total hours worked, multiplied by one million. Another The auditors wish to state that the audit of this indicator, Average Time Lost Rate (ATLR), provides a measure of the severity report is the only commission for which SMEC of occurrences. Australia Pty Ltd has been engaged by Wesfarmers in the year prior to commencement of the audit. National Packaging Covenant – An agreement between the packaging The above findings represent a summary of the supply chain industry and governments which sets guidelines covering the more detailed findings presented to Wesfarmers. manufacture, supply, distribution, consumption and recovery/recycling of post-consumer packaging. For SMEC Perth 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 Naomi Hill environment. The substance list was determined by consideration of health and Environmental Scientist and Auditor environmental risks in Australia. The NPI uses standard assumptions, in part, BSc to calculate potential emissions we cannot measure or have difficulty measuring and, accordingly, data reported to the NPI may differ from point source For SMEC 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.

Brett Loney Rehabilitation – Treatment of disturbed areas to achieve a level of stability Principal Environmental Scientist and Lead Auditor equal to that which existed before or to an alternative acceptable form. BSc (Env. Sc.) PGradDip EIA SMS – Safety Management System Certiﬁed Lead Auditor (RABQSA) Certiﬁcate No 14053 30 September 2005 SOP – Standard Operating Procedure

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